Opinion of the Economic and Social Committee on the "Proposal for a Decision of the European Parliament and of the Council on a regulatory framework for radio spectrum policy in the European Community"
Date: 2001-01-24
Institutions: European Economic and Social Committee
Subjects: dissemination of information, economic development, harmonisation of standards, social development, trade licence, waveband

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Official Journal of the European Communities

C 123/61

4.10.6.
Clearly, new rapidly expanding markets such as
that for broadband services can at times betray real competitive
shortcomings which, from a narrow, formal, statistical stand-
point might seem to warrant SMP status. The Committee
believes that if this argument were then used to defend a cost-
based fee structure, it could be a disincentive to investment

and reduce competitiveness in the long term. It is important
to remember that these new market climates differ radically
from the traditional backdrop for ‘interconnection’ — i.e.
conventional fixed telephony — where most of the investment
in the network has already been made, and the purpose of
regulation is the optimum exploitation of historical assets.

Brussels, 24 January 2001.

The President

of the Economic and Social Committee

Göke FRERICHS

Opinion of the Economic and Social Committee on the ‘Proposal for a Decision of the European
Parliament and of the Council on a regulatory framework for radio spectrum policy in the
European Community’

(2001/C 123/14)

On 4 October 2000 the Council decided to consult the Economic and Social Committee, under Article
95 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for
preparing the Committee’s work on the subject, adopted its opinion on 9 January 2001. The rapporteur
was Mr Herna´ndez Bataller.

At its 378th plenary session of 24 and 25 January 2001 (meeting of 24 January 2001), the Economic
and Social Committee adopted the following opinion by 80 votes to one with one abstention.

1.

Introduction

— strategic planning of the use of radio spectrum;

The Community institutions have concerned them-
1.1.
selves with this question for a number of reasons, including
the intensive use of radio spectrum, the complex decision-
making process for its allocation and assignment, huge global
expansion generated by the technological convergence of
various services, and economic trends, as well as the need to
apply internal market principles and protect Community
interests at world level.

— harmonisation of radio spectrum allocation;

— radio spectrum assignment and licensing;

— radio equipment and standards; and

1.2.
The Green Paper on Radio Spectrum Policy in the
context of European Community policies such as telecom-
munications, broadcasting, transport, and R&D (1) addressed
five key issues:

(1) COM(1998) 596 final; ESC opinion in OJ C 169, 16.6.1999.

— the institutional framework for radio spectrum coordi-

nation.

1.3.
The Green Paper was welcomed by the Economic and
Social Committee, which considered radio spectrum to be the
backbone for a very wide range of important industrial sectors,
future
and argued that in addition to technical grounds,
decisions needed to reflect the economic, social and political
importance of spectrum usage.

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1.3.1.
The ESC was of the opinion that the EU needed to
play an enhanced and better co-ordinated role in spectrum
policy.

1.4.
The Commission accordingly drew up a Communi-
cation on Next Steps in Radio Spectrum Policy: Results of the
Public Consultation on the Green Paper, which was discussed
at the meeting of the Telecommunications Council of 30 No-
vember 1999 (1). The three following initiatives were proposed
at the meeting:

— to set up a spectrum policy expert group to address radio

spectrum policy issues at Community level;

— to establish a regulatory framework for radio spectrum
policy which would replace sector-based decisions such
as those concerning Satellite Personal Communications
Services (S-PCS) and Universal Mobile Telecommuni-
cations Systems (UMTS); and

— to produce a communication on the Community’s policy
objectives in relation to the agenda of the World Radio-
communications Conference (WRC).

2.

The Commission proposal

2.1.
The proposal is intended to ensure the harmonised
availability and efficient use of radio spectrum, where required
to implement Community policies in areas such as communi-
cations, transport, broadcasting and research and development
(R&D).

The proposal aims to establish a framework that will
2.2.
ensure a proper balance between radio spectrum needs in
order to implement Community policies, while taking due
account of current institutional arrangements for radio spec-
trum management, and safeguarding Community interests at
international level.

2.3.
As a result of the public consultation exercise, the
Commission considers that where harmonisation is required,
legal certainty and appropriate procedures must also be
safeguarded by granting mandates to the CEPT to develop
spectrum harmonisation measures at European level and the
corresponding proposals for the ITU/WRC. Legal certainty is
also required to ensure implementation by Member States of
agreed harmonisation measures.

To date, radio spectrum requirements have not been
2.4.
dealt with in Community legislation in Community policy
areas other than telecommunications (such as terrestrial and
satellite TV and radio broadcasting; road, rail, air and maritime

transport; positioning, navigation and precision timing; Earth
observation; and radio astronomy). The present proposal seeks
to establish the political and legal basis necessary to ensure
that radio spectrum is and will be available to implement
Community policies in all these areas.

2.5.

The main objectives of the proposal are to:

— set up a policy platform, to be called the Senior Official
Radio Spectrum Policy Group, which is responsive to
technological and regulatory developments in the radio-
communications field and which allows for proper
consultation of all relevant radio spectrum user com-
munities. The platform will advise the Commission on
how best to distribute radio spectrum within and across
different user communities and countries;

— establish a legal framework for spectrum harmonisation

where necessary;

— ensure coordinated and timely provision of information

on radio spectrum use and availability in the EC;

— ensure that appropriate Community and European pos-
itions are developed with a view to international nego-
tiations relating to spectrum, where the issues at stake are
covered by Community policies.

3. General comments

3.1.
The Committee welcomes the proposal for a regulatory
framework ensuring the harmonised availability and efficient
use of radio spectrum, where required to implement Com-
munity policies in areas such as electronic communications,
transport, broadcasting and Research and Development (R&D).
This will guarantee the rational, equitable, effective and
economic use of
frequencies for all radiocommunication
services, recognising:

— the importance of strategic planning in the use of radio

spectrum;

— the need for assignment to be harmonised;

(1) See COM(1999) 538 final, http://www.ispo.cec.be/spectrumgp/

for allocation of public interest services.

— the unsuitability of price mechanisms as an instrument

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3.1.1.
The ESC would, however, repeat its agreement with
the objective of striking the requisite balance between the
technical assessment procedure and other political, economic
and social procedures which might be used for this highly
scarce resource.

putting defined, regulated licences for spectrum use out to
tender and sale, since higher spectrum costs would be passed
on to the price of the service and more intensive use of capital.

3.2.
The ESC notes that one objective not touched upon by
the proposal is for the planned actions to guarantee the public
interest, wherever it clashes with the private interest of groups
or companies which wish to make use of a scarce resource, as
spectrum is,
for their own purposes (for example, with
measures which may jeopardise territorial cohesion). The
proposal’s aim of achieving efficient management on the basis
of technological neutrality is inadequate.

3.3.
Community radio spectrum policy must ensure that
competition and efficiency among service providers on the
single market are not distorted. The ESC is concerned at the
emergence of monopolistic or oligopolistic situations within
the Community in areas of spectrum use. In the medium term,
this might apply to UMTS licences, insofar as those bidding
for contracts may establish links or associations, or undertake
mergers with or buy-outs of their competitors. A balance must
be sought between medium- and long-term interests, and in
spectrum allocation and assignment, and appropriate measures
must be taken to uphold viable competition.

4.4.
The ESC believes that the highest possible level of
protection for users and public health must be ensured, and is
convinced that further research into the health aspects of
electromagnetic fields is necessary.

4.4.1.
The proposed rules for the Senior Official Radio
Spectrum Policy Group and the Radio Spectrum Committee
fail to make sufficient provision for official involvement of
civil society organisations.

4.4.2.
The Economic and Social Committee therefore pro-
poses that a European Radio Spectrum Forum be set up, with
its headquarters at the ESC, to bring together concerned
parties such as industry, trade unions, users, universities, local
authorities and civil society organisations in general. Forum
members could issue mandatory reports and formulate
demands on a transparent basis, so that their interests are
known to the Radio Spectrum Group and Committee.

4.4.3.
The Forum would ensure that all those concerned by
a given radio spectrum issue could explain their position,
thereby contributing to the best possible resolution of existing
problems.

4.

Specific comments

4.5.
Information provided by the Member States should be
published as widely as possible and in a standardised format,
to allow comparison of spectrum use in each location.

4.1.
The ESC suggests that in order to improve spectrum
use, consideration be given to harmonising usage fees and
rights at Community level, believing that this is preferable to
payment by bidding for licences: harmonisation would boost
free competition and economies of scale. The funds generated
should be used to improve spectrum management.

4.6.
All the Member States must have centralised, public
information systems holding all frequency use data which have
not been classified at secret. With this sole exception, the
Member States should satisfy all requests for information on
any frequency assignment.

4.2.
The planned procedural framework should safeguard
economic, social and territorial cohesion. Certain licence
tendering procedures must not be allowed to result in certain
disadvantaged areas funding infrastructure in others, through
the fees charged to service users with the aim of offsetting the
costs of tendering for spectrum use. In the final analysis, the
procedural framework must serve to head off distortions of
competition or cross-subsidies.

4.7.
Publishing of frequency information is important, and
should be supported. Real benefits can only be secured from
publication if the information contains all the data necessary
for it to be used effectively.

In addition to the types of information set out in the
4.8.
Annex, the information provided by the Member States should
be supplemented in the light of the needs identified by the
proposed Forum. Initially, this might include the following:

4.3. With regard to the value of radio spectrum, the ESC
would warn of the possible negative impact on employment
and increased costs for consumers which may result from

— use of assigned bands: number of users, degree of

saturation, etc.;

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— the economic and tax-related conditions, and those
governing duration and extension of licences, with identi-
fication of licence-holders. This would provide infor-
mation on the concentration of spectrum use and any
ensuing regional and social imbalances in sufficient time
for remedial action to be taken;

— assignment and spectrum use conflicts within each
Member State together with appropriate measures to
resolve such conflict and prospects for successful resol-
ution;

— open conflicts with other Member States or non-EU

countries on radio spectrum use.

4.9.
Radio spectrum is a natural resource which must not
it
be individually managed by the Member States: rather,
demands coordinated action at Community level paving the
way for effective spectrum management at national level.

The ESC believes that the mechanism contained in
4.9.1.
the draft decision for working with non-EU countries and
international organisations will help strengthen the single
market and competitiveness and boost Europe’s position on
the world market and the EU’s position in world forums.

The ESC agrees with the Commission that

4.9.2.
the
necessary measures must be taken to achieve a common
position and to ensure Community coordination.

4.9.3.
The Community and the Member States must main-
tain the most open stance possible in the international arena
(ITU, WRC and CEPT), without prejudice to application of the
principle of reciprocity.

Brussels, 24 January 2001.

5. Conclusions

The ESC is convinced that a permanent, stable and
5.1.
uniform framework needs to be established at Community
level, ensuring harmonised availability of radio spectrum and
introducing legal certainty.

In applying these policies,

5.2.
interactive connections
providing services to disadvantaged or thinly populated areas
and giving access to information and e-commerce services
throughout the Community could be expanded. This would
the
contribute to regional cohesion and the growth of
information society.

5.3.
The final aim of any radio spectrum policy must be to
provide the public with high-quality services and guarantee
their social relevance. For this reason, the ESC opposes a purely
commercial approach to this policy: the economic and social
value of spectrum frequency use cannot be evaluated only in
terms of operators’ profit opportunities — it is very largely
determined by the importance of the services offered by
operators,
the number of users and, ultimately, by the
enhanced quality of life it brings to citizens.

Frequency allocation cannot be separated from the
5.4.
application or specific service the bandwidth is to be used for.
In this context,
it would be helpful for Member States to
harmonise their stance on the principles of radio spectrum
pricing, frequency tendering and the introduction of a second-
ary market for radio spectrum. Where possible, profits should
be ploughed back into research and the use of new information
and communication technologies, thereby furthering the devel-
opment of the information society, rather than being treated
as tax revenue.

The President

of the Economic and Social Committee

Göke FRERICHS