Opinion of the Economic and Social Committee on the "Proposal for a Decision of the European Parliament and of the Council revising Annex I of Decision 1336/97/EC on a series of guidelines for trans-European telecommunications networks" (COM(2001) 742 final — 2001/0296 (COD))
Date: 2002-05-29
Institutions: European Economic and Social Committee
Subjects: EU programme, telecommunications, trans-European network

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Official Journal of the European Communities

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Opinion of the Economic and Social Committee on the ‘Proposal for a Decision of the European
Parliament and of the Council revising Annex I of Decision 1336/97/EC on a series of guidelines
for trans-European telecommunications networks’

(COM(2001) 742 final — 2001/0296 (COD))

(2002/C 221/07)

On 18 January 2002 the Council decided to consult the Economic and Social Committee, under
Article 156 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 30 April 2002. The rapporteur
was Mr Retureau.

At its 391st plenary session held on 29 and 30 May 2002 (meeting of 29 May) the Economic and Social
Committee adopted the following opinion unanimously.

1. Presentation of the TEN-Telecom programme

1.1.
The TEN-Telecom programme concerns public ser-
vices, especially in spheres where Europe has a competitive
advantage. The aim is to accelerate the implementation of
services in order to promote the European social model, i.e. a
society characterised by cohesion and social inclusion.

1.2.
This programme is part of the e-Europe initiative to
realise an ‘information society for all’. To this end it is designed
to promote services of public interest which will help prevent
the opening of a ‘digital divide’ and promote participation of
all citizens in the information society.

1.3.
The programme provides for assistance before the
critical phase of launching a new service, so that the private or
public investors concerned can take informed decisions in
advance, e.g. on the basis of a financial assessment. During the
initial phase, i.e. the commercial and budgetary assessment, up
to 50 % of the anticipated costs of the projects selected can be
funded through the programme. During the actual launch
phase of the project, up to 10 % of the investment needed to
get the service up and running can be provided.

TEN-Telecom can also play a role in cohesion policy,
1.4.
helping ensure that public authorities and other players
concerned make services accessible to users at risk of mar-
ginalisation (people with physical disabilities, people who are
socially marginalized, belong to disadvantaged groups or live
in remote or sparsely populated areas, etc.).

The purpose of TEN-Telecom is thus to help move
1.5.
services of public interest from the planning stage to the
operational stage.

The Committee has been asked to give an opinion on
1.6.
the Commission’s three-yearly report on the progress and
effectiveness of the programme (1), as well as the proposed
changes to Annex I of Decision 1336/97/EC (2).

1.7.
The Committee has already issued a number of opin-
ions on policies and programmes relating to the information
society and telecommunications, and on funding likely to be
including the decision on
made available to develop these,
TEN-Telecom mentioned above. Two new opinions are also
currently being prepared by the TEN section on issues relating
to the area likely to be covered by TEN-Telecom measures (3).
There is therefore no point in discussing once again the
policies and guidelines relating to issues addressed in these

(1) Report on the implementation of Decision 1336/97/EC on
a series of guidelines for trans-European telecommunications
networks, Brussels 10.12.2001, COM(2001) 742 final (2001/
0296 (COD)) presented by the Commission.

(2) Decision of the European Parliament and of the Council revising
Annex I of Decision 1336/97/EC on a series of guidelines for
trans-European telecommunications networks (same reference as
the above-mentioned report).

(3) ESC opinion on the Proposal for a Council Regulation (EC) laying
down general rules for the granting of Community financial aid
in the field of trans-European networks (COM(94) 62 final — 94/
0065 SYN). OJ C 195, 18.7.1994.
ESC opinion on Towards the Information Society — Communi-
cation from the Commission to the Council,
the European
Parliament, the Economic and Social Committee and the Com-
mittee of the Regions on a methodology for the implementation
of information society applications; Proposal for a European
Parliament and Council Decision on a series of guidelines for
trans-European telecommunications networks (COM(95) 224
final). OJ C 39, 12.2.1996.
ESC opinion CES 524/2002 of 25 April 2002 on Extension of
the trans-European networks to the island regions of Europe
(own-initiative opinion).
ESC opinion 347/2002 on the Proposal for a Regulation of the
European Parliament and of the Council amending Council
Regulation (EC) No 2236/95 laying down general rules for
granting of Community financial aid in the field of trans-European
networks (COM(2001) 545 final — 2001/0226 (COD)).

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previous opinions, or in pre-empting the final content of the
opinions in preparation. The institutions concerned are asked
to take these into consideration as background to the analysis
and recommendations that follow on the two subjects of this
opinion: the Commission report and the revisions to Annex I
of the above-mentioned decision.

2.1.6.
Half of the programme participants are from private
companies, some representing large high-technology compa-
nies in the telecoms and IT sectors. 57 % are SMEs. Almost
half of
from other sources of
Community funding. The majority of participants consider
financial aid received to have been a decisive factor in
launching the project.

the projects also benefit

2. The Commission’s proposals

2.1.

Three-yearly report on the TEN-Telecom programme —
description and assessment of the programme

2.1.1.
The Commission’s report looks at how the pro-
gramme has worked over the past three years, and considers
an interim assessment of the programme by an independent
external consultant and the Court of Auditors’ Special Report
No 9/2000 on TEN-Telecoms (1).

The aim of

2.1.2.
the programme is to promote an
information society open to everybody. It provides funding
for a certain number of strategic areas, organised on three
levels (applications, generic services and basic networks), as
defined in Annex I, and supports services of public interest
that are not in competition with commercial services.

2.1.3.
For the period 1998-2000 (three years) the budget
was EUR 92,8 million, almost half of which was for the third
year. There was a substantial time lag between commitments
and payments, and active steps must be taken to rectify this.

2.1.4.
Eligible projects are selected on the basis of calls for
proposals for specific areas. The first call was at the level of
‘basic networks’; the next calls were at the level of generic
services and applications, and in 1998 a supplementary rolling
call was issued for coordination and support actions.

External evaluators help the programme staff

2.1.5.
to
evaluate projects put forward. The procedure for evaluating
and assessing projects is undergoing revision owing to criticism
voiced about the short deadlines for studying proposals, the
general nature of certain evaluation criteria and the risk of
projects falling between areas being at a disadvantage.

2.1.7. Most of the proposals concern the technical and
commercial feasibility and validation of projects, which are
eligible for 50 % funding, as opposed to 10 % for deployment,
while support actions submitted in 1998 receive 100 %
funding.

Although the technical quality of projects selected
2.1.8.
has generally been satisfactory, the business plans have been
rather weak in a number of areas. However, the technical
assessment of the projects shows that they are having a
significant impact on the launch of the e-Europe initiative (2).
They really are facilitating the transition to an information
society for all, which is the objective of the programme.
However, the assessments show that efforts should be better
targeted and tightened up.

2.1.9.
The Court of Auditors emphasises especially the need
to avoid overlaps with the Research Framework Programme
and other sources of Community funding, and to adopt more
rigorous procedures for monitoring the projects.

2.1.10.
The external evaluation recommended that market-
ing of the programme be stepped up and noted the low
number of deployment projects funded under the programme.

2.2.

Future measures proposed by the Commission

2.2.1.

The Commission proposes the following measures:

a)

b)

c)

d)

increasing the number of deployment projects on the
basis of a number of initiatives;

reducing the cost of entering the evaluation phase
by applying a two-stage procedure, with preliminary
selection of projects based on a brief presentation fol-
lowed by a complete presentation of the projects selected;

fixing in advance the timetable for calls for proposals and
increasing the frequency of calls;

reducing to nine months the time between publishing a
call and signing a contract;

( 1) Court of Auditors Special Report No 9/2000 concerning trans-
European networks (TEN) — telecommunications, accompanied
by the Commission’s replies, OJ C 166, 15.6.2000.

(2) See ESC opinion on eEurope 2002 — An information society for
all — Draft Action Plan (COM(2000) 330 final), OJ C 123,
25.4.2001.

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e)

f)

raising the maximum level of support from 10 % to 20 %
in cases where projects are intended to establish trans-
European services;

d)

There will be an obligation to provide feedback on results
achieved after the period of Community support has
ended.

testing a contract that combines the two types of activities
receiving support — technical and commercial feasibility
and validation on the one hand and deployment on the
other — to avoid delays in implementing projects;

e)

Applicant countries will take part.

The provision covering participation of these countries
under the planned package will be revised in order to
increase their involvement in the programme.

g)

increasing the number of projects involving public admin-
istrations

In the context of the information society for all, the aim
will be to promote projects relating to innovative systems
and services in order to enhance the accessibility and
efficiency of public administration at every level;

f)

Establishment of a clear profile

The initiative will be more clearly defined and presented,
and its title will be more precise (e-TEN) in order to bring
it within the scope of the e-Europe initiative. The number
of areas concerned will be reduced from 18 to seven
(revision of Annex I).

h)

interconnection and interoperability of networks

g)

Communication

This support would replace more general assistance
provided for basic networks by promoting the intercon-
nection and interoperability which are essential for the
functioning of services of public interest;

i)

coordination with other actors

Complementarity with other programmes (IST pilot
actions and take-up measures) to ensure an optimum
synergistic effect.

An effort will be made to coordinate with other relevant
players in the Commission through inter-programme
groups, e.g. the other TEN programmes, the Structural
Funds, the Competitive and Sustainable Growth pro-
gramme, the IDA programme and the Socrates pro-
gramme, in order to avoid overlaps and develop synergies.

More active coordination with the EIB in particular
should allow co-financing of projects. A working group
will be proposed under the Innovation 2000 initiative
based on common ground in areas such as ‘New infor-
mation and communications technology networks’ and
‘Diffusion of Innovation’;

Communication relating to the programme will be step-
ped up, and the public authorities, NGOs and associated
commercial parties providing services of public interest
will be consulted in the framework of a more forward-
looking strategy. A clear and simplified guide will be
published for proposers.

2.3.

Proposed revision of Annex I

2.3.1.
The explanatory memorandum essentially summar-
ises the report (focus, elimination of duplication and funding
overlaps, reducing the number of areas, increasing funding for
trans-European deployments, emphasis on the trans-European
dimension, distinction between e-TEN and IST (information
society technologies) to promote innovative services of general
interest — both those provided by the public sector and
those provided by public-private partnerships — and targeted
support for interconnection and interoperability of networks).

2.3.2.
The explanatory memorandum also discusses two
issues that are important for the future direction of the
programme:

— taking into account the new area of mobile services and

j)

Programme administration and project monitoring.

the multimedia dimension;

2.2.2.
Project monitoring procedures will be tightened and
clearer guidelines on allowable costs will be provided. Project
selection procedures will be simplified.

a)

b)

c)

There will be more on-site technical and financial audits
in order to avoid irregularities such as those noted by the
Court of Auditors, and deployment projects will be
considered at an early stage, before substantial resources
have been committed.

Precise definitions will be given and distinctions drawn
between different types of costs.

Evaluations will be carried out by user groups in deploy-
ment projects.

— the emphasis on network security policy, in line with the
policy being developed by the Commission in this
sphere (1)
in order to promote confidence and intra-
European cooperation, including specific proposals for
setting up networks.

2.3.3.
The comitology procedure will be adapted in accord-
ance with Declaration No 2 of the Council and Commission
concerning Council Decision 1999/468/EC, and Article 8(2)
will thus be amended to introduce the regulatory procedure.

(1) See ESC opinion on the Communication from the Commission to
the Council, the European Parliament, the Economic and Social
Committee and the Committee of the Regions on network and
information security: proposal for a European policy approach
(COM(2001) 298 final), OJ C 48, 21.2.2002.

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2.3.4.
Annex I then identifies the projects of common
interest covered by the programme. The general section
recapitulates the ideas set out in the report on the structure of
the programme, and recalls the coherent structure based on
three levels of e-TEN: applications, generic services, intercon-
nection and interoperability of networks.

— stepped up cooperation with players in the sector, e.g.

public-private partnerships;

— coordination of activities promoted by the decision and

related Community and national programmes.

2.3.4.1.

Priorities for applications

— online government and administration;

3. General comments

— health;

— disabled and elderly;

— learning and culture.

2.3.4.2.

Priorities for generic services

— advanced mobile services (location-based, personalised
and context-sensitive services), navigation and guidance,
information, network security and
traffic and travel
billing, m-commerce, m-business, mobile work, learning
and culture, health and emergency services;

— trust and confidence services: security is a major challenge
for the future of networks, and support for services of
general interest concerns all aspects of security, including
cooperation for effective networking within the EU on
national CERT systems.

2.3.4.3.

Priorities for interconnection and interoperability of
networks

— interconnection and interoperability are a prerequisite for

effective trans-European services;

— projects concerning the development and enhancement
of telecommunications networks will receive particular
scrutiny to ensure that there is no interference with free
market conditions.

2.3.4.4.

Supplementary support and co-ordination actions

These concern the provision of an appropriate environment
for realising the projects, enhancing programme awareness,
achieving consensus on stimulating and promoting new
applications and services, in conjunction with programmes
from other areas, and developing broad-band networks,
including:

— strategic studies on new specifications in order to pro-

mote good investment decisions;

3.1. The Committee’s comments on the report

3.1.1.
The Committee welcomes the greater emphasis of
the programme on access for all to the information society,
especially to better meet the needs of citizens and SMEs.

3.1.2.
It believes that developing synergies with other
programmes relating to the TENs will increase the effectiveness
of measures while avoiding waste of money and effort.

3.1.3.
The Committee encourages the effort to make com-
munication more targeted and efficient in order to generate
applications that meet the social objectives of the programme,
and agrees with changing the acronym to e-TEN, thus linking
the programme simultaneously to the TENs as a whole and to
the e-Europe initiative.

3.1.4.
Finally, the Committee welcomes the programme’s
emphasis on public services and developing cooperation with
players involved in providing services of general interest (SGIs),
on the understanding that the programme will endeavour to
prioritise the services that are of greatest social interest.

3.2. Comments on the proposed changes to Annex I

The Committee fully supports the emphasis on
3.2.1.
security, interoperability and interconnection of networks in
conjunction with the effort to develop European and global
specifications; also the link between generic services that are
to be developed and realisation of an information and
knowledge-based society which everybody has equal oppor-
tunities to access and use, regardless of any physical disability
or difficulty, with a sustainable development dimension in
respect of navigation and guidance systems that can substan-
tially improve TEN transport logistics and encourage multimo-
dality; and all
the other priorities and objectives of the
programme.

— establishment of common specifications based on Euro-

pean and world standards;

The Committee also fully supports the procedure
3.2.2.
for regulating and extending financing in two directions
(deployment and applicant countries).

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4. Specific comments

The programme was launched before the internet
4.1.
explosion, and the development and potential of the internet
as a tool must be borne in mind, as well as developments in
mobile telephony, which is entering a new generation. The
multimedia character of content must also be taken into
account. To allow access to richer and more varied content,
high-speed internet access must be considered an imperative
and form part of the service of general interest in the field of
communications.

It is also important to promote access to NICT (1)
4.2.
for people who are still excluded owing to disability, age,
unfavourable socio-economic situation or geographical iso-
lation or distance (islands, peripheral regions). Projects should
promote use of the WAI code (2). Priority should be given to
projects that answer these needs.

Local and regional, professional, health, education and
4.3.
training organisations should be enabled to participate in
projects and to make proposals with a view to meeting the
requirements of their members or users. The information and
knowledge-based society must not leave anybody behind, and
efforts should focus on access for all to knowledge, initial and

( 1) New information and communication technologies.
( 2) See ESC opinion on Communication from the Commission to the
the European Parliament, the Economic and Social
Council,
Committee and the Committee of the Regions on eEurope 2002:
Accessibility of Public Web Sites and their Content (COM(2001)
529 final, OJ C 94, 18.4.2002).

Brussels, 29 May 2002.

continuing training programmes for employees, entrepreneurs
and civil servants. Particular attention should be paid to
integrating people who have difficulty accessing new tech-
nologies.

4.4.
At the same time, links between NICT and territorial
and local development policy should be strengthened, with the
aim of achieving cohesion and sustainable development, and
to combat depopulation in certain regions, such as upland
areas, ultra-peripheral or isolated regions. Thus cohesion and
the needs of disabled or elderly people should be among the
main criteria used to evaluate projects.

4.5.
Questions of network security and protection of
personal or sensitive data in the spheres of e-administration,
particularly in the framework of the IDA II programme (3) for
the exchange of documents between the administrations of
the Member States, health and social protection must also play
an important role in relevant programmes, especially after the
events of 11 September and with the threat of cyber-terrorism
from various sources.

(3) Proposal for a Decision of

the European Parliament and of
the Council amending Decision 1719/1999/EC on a series of
guidelines, including the identification of projects of common
interest, for trans-European networks for the electronic inter-
change of data between administrations (IDA) and the Proposal
for a Decision of the European Parliament and of the Council
amending Decision No 1720/1999/EC adopting a series of actions
and measures in order to ensure interoperability of and access to
trans-European networks for the electronic interchange of data
between administrations (IDA) — (COM(2001) 507 final —
2001/0210 (COD) — 2001/0211 (COD)).

The President

of the Economic and Social Committee

Göke FRERICHS