Proposal for a Regulation of the European Parliament and of the Council establishing the European electronic communications market authority  {SEC(2007) 1472} {SEC(2007) 1473}
Date: 2007-11-13
Institutions: European Commission
Subjects: competition law, electronic mail, single market, supervisory power, telecommunications, transmission network

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 13.11.2007 
COM(2007) 699 final 

2007/0249 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing the European Electronic Communications Market Authority 

(presented by the Commission) 

{SEC(2007) 1472} 
{SEC(2007) 1473} 

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EXPLANATORY MEMORANDUM 

1. 

GROUNDS FOR AND OBJECTIVES OF THE PROPOSAL/GENERAL CONTEXT 

The  development  of  an  effective  telecommunications  single  market  is  a  matter  of  highest 
political  priority  in  the  EU.  ICTs,  and  with  it  the  Telecommunications  sector,  account  for 
quarter of Europe's total growth. In the age of technological progress, cross-border business 
activities and growing consumer demand for electronic communications services regardless of 
geographic  location,  achieving  a  true  internal  market  in  telecoms  becomes  essential  for 
Europe's  competitiveness.  Without  a  competitive  and  efficient 
telecommunications 
infrastructure, there is little chance to develop pan-European services. 

The  full  opening  of  national  telecoms  markets  to  competition  in  1998  served  to  stimulate 
investment  and  innovation  by  both  new  entrants  and  incumbents,  and  this  has  yielded  very 
tangible  advantages  to  Europe's  citizens  in  the  form  of  more  choice,  lower  prices,  better 
quality and a growing range of new fixed and mobile services. 

These benefits were achieved through an EU regulatory framework designed to meet the three 
objectives  of  promoting  competition,  consolidating  the  internal  market  for  electronic 
communications  and  benefiting  consumers  and  users.  The  framework  comprises  five 
Directives that entered into force in July 2003. 

In  keeping  with  the  principle  of  better  regulation,  the  current  framework  requires  the 
Commission  to  report  regularly  on  its  functioning.  The  first  report,  in  June  20061,  set  out 
proposals for changes to the framework and, at the same time, launched a four months public 
consultation. This extensive and comprehensive review process brought to light a number of 
important  problems  that  remain  to  be  solved,  in  particular  the  lack  of  consistency  in  the 
application  of  EU  rules  and  the  regulatory  fragmentation  of  the  internal  market.  Indeed, 
despite 
in  electronic 
communications, the inconsistent regulatory approaches by 27 national regulatory authorities 
–  which  vary  significantly  in  terms  of  competences,  independence  and  financial  and  human 
resources  –  stand  in  the  way  of  technological  developments  and  are  increasingly  felt  by 
businesses as obstacles to the delivery of trans-national or pan-European services. Moreover, 
Europe's citizens should not have to pay excessive prices because costs for firms operating in 
several Member States remain artificially high. 

the  harmonisation  of  regulation 

the  significant  progress  on 

To  assist  in  overcoming  these  obstacles,  the  Commission  is  proposing  a  new  independent 
Authority working in close cooperation with the national  regulatory authorities (NRAs)  and 
the Commission. The new Authority, accountable to the European Parliament, will include a 
board  of  regulators  comprising  the  heads  of  the  national  regulatory  authorities  of  all  EU 
Member  States  and  will  replace  the  European  Regulators  Group  (ERG)2.  It  will  provide 
expert advice to the Commission, notably to prepare regulatory decisions under the so-called 
‘Article  7’  procedure,  and  to  further  the  internal  market  by  improving  consistency  in  the 

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COM(2006) 334. 
The  ERG  was  established  by  Commission  Decision  2002/627/EC  of  29  July  2002,  as  amended  by 
Commission  Decision  2004/641/EC  of  14  September  2004.  When  the  Regulation  establishing  the 
European  Electronic  Communications  Market  Authority  enters  into  force  and  the  Authority  becomes 
fully operational, the Commission will abrogate the ERG Decision.  

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application  of  EU  rules,  and  will  act  as  a  centre  of  expertise  for  electronic  communication 
networks and services at EU level. The new Authority would also take over the functions of 
the European Network Security Agency (ENISA), thereby overcoming many of the problems 
that have been identified in the operation of ENISA3. 

The  present  proposal  complements  two  other  proposals  to  amend  the  Directives  composing 
the  current  regulatory  framework  for  electronic  communications4.  The  three  proposals  are 
accompanied by an Impact Assessment5. 

•  Existing provisions in the area of the proposal 

This Regulation complements the five Directives comprising the EU regulatory package for 
electronic  communications.  Proposed  changes  to  the  Framework  Directive  streamline  the 
market  analysis  procedure  but  this  simplification  needs  to  be  complemented  by  the 
establishment  of  a  specialised  and  independent  expert  body  assisting  the  Commission  in 
assessing  the  technological  complexities  of  future  markets.  The  proposed  changes  to  the 
Authorisation Directive set up new procedures for the harmonisation of conditions for rights 
of use at EU level and for selecting providers of cross-border services, where appropriate. The 
new  Authority  will  be  the  vehicle  for  implementing  these  procedures.  Changes  to  the 
Universal Service Directive will facilitate access to and use of e-communications, including 
emergency  services,  by  disabled  users.  The  Authority  will  act  as  a  focal  point  for  treating 
these issues at EU level. 

•  Consistency with the other policies and objectives of the Union 

The objectives of  the  proposed  Regulation are in line with the  renewed Lisbon Strategy for 
promoting  growth  and  jobs  through  greater  competitiveness,  with  the  Commission's 
associated i2010 initiative and its objective of creating a single European Information Space, 
and with the Commission's strategy to strengthen the internal market. This proposal aims to 
improve the functioning of the internal market in electronic communications. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT  

•  Consultation of interested parties  

Consultation methods, main sectors targeted and general profile of respondents 

The Commission services launched a two-phase consultation on the review of the regulatory 
framework  which  started  at  the  end  of  2005.  The  publication  of  a  Communication  in  June 
2006  launched  the  second  public  consultation,  which  lasted  four  months  and  ended  on 
27 October 2006. 224 responses were received from a wide range of interested parties, both 
inside and outside the EU. 

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Communication from the Commission to the European Parliament and the Council on the evaluation of 
the European Network and Information Security Agency (ENISA) - COM(2007) 285. 
COM(2007) 697, COM(2007) 698. 
SEC(2007) 1472. 

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Summary of responses and how they have been taken into account 

The  major  concerns  expressed  in  the  public  consultation  were  as  follows:  i)  considerable 
differences  exist  in  the  way  the  framework  is  implemented  at  national  level.  The 
fragmentation  of  the  internal  market  into  different  regulatory  systems  hinders  investments, 
which  would  benefit  greatly  from  common  and  predictable  regulation  across  the  EU.  Many 
parties pointed out that the widely diverging application of rules prevent the full benefits of 
the internal market from being achieved; ii) the current approach for selecting and authorising 
operators for certain types of cross-border service is not compatible with the exploitation of 
economies  of  scale  needed  for  the  development  of  new  services.  For  genuine  cross-
Community services in particular, there is a case for establishing a more coordinated system 
for  the  authorisation  of  rights-of-use  for  frequencies  and  numbers.  The  importance  of 
enhancing  EU  competitiveness  and  achieving  economies  of  scale  for  cross-Community 
services was also pointed out in the response of the ERG to Commissioner Reding; iii) better 
use should be made of the potential expertise present in the ERG. However, in order to avoid 
a  "lowest  common  denominator",  approach,  institutional  reform  of  the  ERG,  to  allow  it  to 
contribute better to consistency and harmonisation, where appropriate, is considered essential. 

•  Collection and use of expertise 

The  Commission  has  drawn  upon  the  results  of  various  studies  from  external  contractors  in 
the preparation of this and the related proposals.  

These  studies  are  described  in  the  associated  Impact  Assessment,  and  cover  both  economic 
modelling and research on stakeholder views. 

The studies are available at: 

http://ec.europa.eu/information_society/policy/ecomm/library/ext_studies/index_en.htm 

•  Impact assessment 

The  impact  assessment  examines  a  range  of  options  to  achieve  the  objective  of  finding  the 
best regulatory model for delivering a single market in e-communications through consistent 
and effective regulation while respecting the principles of subsidiarity and proportionality.  

The report contains an assessment of the main impacts of three policy options, which consider 
different  institutional  arrangements  with  different  balances  of  powers  between  national 
authorities and the EU. 

The cost-benefit analysis of the proposed Authority shows that under a conservative scenario, 
it  can  be  estimated  that  in  the  policy  areas  where  the  Authority  would  be  active,  it  has  the 
potential of bringing total economic benefits far exceeding its budgetary costs by a factor of 
around 10-30 times (i.e. the order of magnitude of the benefits would be around € 250 – 800 
million). The benefits can amount to between € 550 and € 1400 million if the more optimistic 
scenarios for the growth of pan-European markets are realised. 

A  major  source  of  such  benefit  is  the  reduction  in  the  regulatory  risk  which  would  be 
achieved  through  the  contribution  of  the  Authority.  Even  a  marginal  reduction  in  the 
regulatory risk (of around 10%) across Europe, will be reflected in lower cost of capital for 
the industry. In addition, the Authority's involvement will speed up the process of assigning 

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frequencies for pan-European services; if implementation of major projects of this type can be 
brought  forward  by  just  one  year,  the  economic  benefits  can  be  in  the  range  of  several 
hundred million euros. 

The Impact Assessment report is available at: 

http://ec.europa.eu/information_society/policy/ecomm/library/public_consult/index_en.htm#c
ommunication_review 

3. 

AN  INDEPENDENT  MECHANISM  FOR  NATIONAL  REGULATORS  TO  COOPERATE  AND 
TAKE  DECISIONS:  THE  EUROPEAN  ELECTRONIC  COMMUNICATIONS  MARKET 
AUTHORITY 

3.1. 

The experience of ERG needs to develop into a formal cooperation structure  

Although  the  internal  market  for  e-communications  has  developed  in  recent  years  there  are 
still: i) considerable inconsistencies in the implementation of the European regulatory frame-
work at national level leading to a fragmentation of European markets and the deterrence of 
investment;  ii)  no  efficient  mechanisms  for  the  coordination  of  selecting  and  authorising 
services  that  have  an  inherent  cross-border  character  such  as  mobile  services  and  IP  based 
services. 

The  independent  advisory  group  "European  Regulators  Group"  (ERG)  was  set  up  by  the 
Commission  in  2004  as  a  means  of  facilitating  consultation,  coordination  and  cooperation 
amongst  national  regulatory  authorities  and  between  these  authorities  and  the  Commission. 
Recently, in the past year, the ERG has provided Opinions to the Commission on Functional 
Separation and Regulatory Principles of Next Generation Access, and undertaken a number of 
public consultations on proposed ERG common positions (e.g. wholesale unbundled access, 
voice  over  IP  and  bitstream  access).  However,  all  ERG  common  approaches  are  factually 
based on consensus, making such common approaches difficult and slow to achieve. They are 
indeed  impossible  to  achieve  where  there  are  substantial  differences  of  opinion  or  interest 
between different regulators. The loose cooperation that results has not allowed its documents 
to go beyond rather general statements in a number of important and controversial issues. 

The present approach within ERG, which in practice usually requires reaching the agreement 
among  all  27  regulators,  is  further  complicated  by  the  presence  of  a  parallel  body  which 
operationally  overlaps  to  the  ERG  –  the  Independent  Regulators  Group  (IRG).  The  IRG  is 
made-up  of  the  EU-27  Member  States  and  seven  other  European  countries,  and  while  it 
influences  Community  regulatory  approaches  it  has  neither  any  obligation  to  implement 
Community Law nor any duty to report to the Commission6. That the current structure is not 
producing  sufficient  results,  therefore,  stems  from  a  sub-optimal  organisation  not  only  as 
regards the speed and efficiency of achieving consistent EU approaches, but also as regards 
accountability and transparency.  

The  Commission  has  evaluated  the  different  options  for  organising  the  required  tasks, 
including whether the Commission would be able to pursue these tasks itself. Harmonising at 

6 

The IRG is composed of the 27 EU NRAs plus the NRAs of seven other European countries: Croatia, 
Iceland,  Lichtenstein,  the  Former  Yugoslavian  Republic  of  Macedonia,  Norway,  Switzerland  and 
Turkey. 

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a  central  level  would  require  a  specialist  expertise  of  each  of  the  27  national  markets.  In 
practice,  only  a  body  emanating  from  the  national  regulators  would  have  the  detailed  local 
knowledge necessary to achieving success on these issues. Moreover, the NRAs are in many 
cases  already  substantial  bodies  in  their  own  right;  it  is  inconceivable  therefore  that  the 
Commission  could  have  the  scale  of  resources  and  expertise  needed  to  replace  the  national 
regulators.  

The option of an enhanced ERG, with voting rights in order to take majority decisions, has 
also been examined. Notwithstanding the difficulties of implementing a commonly acceptable 
system of votes, such a body would not be in a position to issue decisions that were binding 
on  its  members.  Under  the  current  Treaty,  such  a  role  can  only  be  undertaken  by  the 
Commission. Moreover, there are serious institutional constraints on the extension of the ERG 
to achieve the level of competence needed to carry out such an enhanced role. Any extension 
of  the  ERG  would  require  a  significant  enhancement  of  its  existing  resources  to  allow  it  to 
carry out its work as the current system of rotating presidencies of the ERG has reached its 
limits (establishment of an executive director, reinforcement of its secretariat, formal rules of 
procedure for taking decisions, etc). The resources for such an enhancement of the ERG's role 
cannot be drawn from outside resources as the Commission must be sure that its opinions and 
advice  are  transparent,  accountable  and  independent.  For  example,  an  enhanced  ERG  could 
not be a legitimate advisory body to the Commission if it was based on resources provided to 
it through the IRG. In fact, the ERG can only enhance its advisory role to the Commission in 
the way needed if it becomes a Community body, subject to the same rules of administration 
and budget that apply to all community bodies (staff regulation, financial regulation, reporting 
requirements to Parliament, etc.).  

The Commission has therefore concluded that the tasks required could be best fulfilled by a 
separate  entity  which  is  independent  and  outside  the  Commission  and  which  reinforces  the 
powers of the NRAs by taking over the functions of the ERG and giving them a robust and 
transparent foundation in Community law. This body would provide opinions and advice to 
the Commission regarding a range of substantive decisions of European interest, albeit that it 
would  also  take  individual  decisions  on  the  administration  of  the  European  telephone 
numbering space. 

The  proposed  tasks  would  complement,  and  not  duplicate,  at  European  level  the  regulatory 
tasks  performed  by  the  national  regulators.  The  Authority  will  provide  the  means  for 
establishing an effective partnership between the Commission and the National Regulators on 
issues  where  European  consistency  is  needed  such  as:  market  definitions,  analysis  and 
remedies; harmonisation of radio spectrum usage; definition of trans-national markets; quality 
of  service.  At  the  same  time  it  will  provide  a  cost  effective  platform  for  addressing  pan-
European  issues  that  reach  beyond  those  that  are  within  the  purview  even  of  an  enhanced 
ERG, such as network and information security; implementation of the '112 emergency call 
number'; administration of the European Telephony Numbering Space. 

The proposed Authority would form the cornerstone of a robust and unitary framework within 
which national regulators will be able to cooperate in way that is consistent with the principles 
defined  by  the  Commission  in  the  draft  inter-institutional  agreement  on  the  operating 
framework for the European regulatory agencies7.  

7 

COM(2005) 59. 

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3.2.  Main tasks of the new Authority  

The  Authority  would  complement  at  European  level  the  regulatory  tasks  performed  at 
national level by the regulatory authorities by:  

–  Providing a framework for national regulators to cooperate. It is proposed to improve the 
handling  of  cross-border  aspects  of  e-communications  market  regulation  and  network 
integrity.  The  Authority  will  provide  procedures  for  cooperation  between  national 
regulators,  in  particular  as  regards  the  exchange  of  information,  provision  of  advice  and 
technical support. The Authority would have powers to mediate and resolve cross-border 
disputes  between  NRAs.  This  framework  will  also  promote  cooperation  between  EU 
national regulators and third countries. 

–  Regulatory  oversight  of  market  definition,  analysis  and  the  implementation  of  remedies. 
The Authority would in general have an advisory role vis-à-vis the Commission as regards 
market regulation issues and could issue non-binding guidelines to promote good practices 
among  the  national  regulators.  Draft  measures  of  NRAs  would  be  subject  to  opinions  as 
concern  their  potential  impact  on  single  market  and  compatibility  with  Community  law, 
where  necessary  proposals  for  modifications  would  be  included  in  the  opinion.  These 
opinions will be delivered to the Commission on a fast-track basis on the basis of a simple 
majority vote amongst its members. 

–  Definition  of  trans-national  markets:  the  Authority  provides  for  an  efficient  and 
proportional mechanism to respond to growing cross-border markets stemming from rising 
mobility,  increased  penetration  of  internet-based  services  (e.g.  VoIP),  satellite-based 
services  and  convergence  between  fixed  and  mobile  services.  The  Authority  will  also  be 
responsible for monitoring the development of roaming services, both voice and data.  

–  Advice  on  radio  frequency  harmonisation:  the  Authority  would  increase  the  speed  and 
effectiveness  of  radio  spectrum  policy  through  on-going  analysis  and  reporting,  the 
identification of the potential and means for development of new services, maintenance of 
a  register  of  spectrum  use  across  the  EU,  advice  on  common  procedures  for  granting 
authorisations,  technical  support  in  the  selection  of  applications  for  spectrum  licences, 
advice  on  withdrawal  of  rights  of  use  in  the  case  of  failure  to  conform  to  licence 
conditions.  

–  Decision  powers  on  numbering  administration  and  advice  on  number  portability.  The 
Authority  would  be  charged  with  the  administration  and  development  of  the  European 
Telephony Numbering Space (ETNS), i.e. numbers using a single EU-wide prefix (3883) 
that  can  be  assigned  to  organisations  wishing  to  establish  one-stop,  pan-European  call-
centres.  In  addition,  the  Authority  would  work  with  NRAs  and  Member  States  on 
European  aspects  of  numbering  and  number  portability,  inter  alia  by  reporting  on  the 
development  of  the  European  Emergency  Number  112,  the  identification  of  numbering 
ranges  for  cross-border  services,  the  identification  of  the  potential  and  means  for 
development  of  new  services,  and  providing  advice  on  common  procedures  for  granting 
authorisations. 

–  Network  and  information  security.  The  Authority  will  subsume  the  tasks  of  the  existing 
European  Network  and  Information  Security  Agency).  In  so  doing  it  will  reinforce  the 
coherence between obligations to ensure network integrity that today fall on NRAs and the 

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responsibility to create a culture of network and information security that is today the remit 
of ENISA. 

–  General informational and advisory functions. The Authority would have a role to provide 
an annual report on the development of the electronics communications sector (offer and 
penetration  of  new  services,  development  of  competition,  review  of  national  regulatory 
situation, remedies applied, information on appeals procedures, etc.). In addition it would 
monitor  and  report  on  interoperability  and  e-accessibility  in  Europe,  with  the  ability  to 
issue  recommendations  on  measures  to  be  taken  at  national  level  to  better  meet,  in 
particular, the needs of disabled or elderly citizens.  

3.3. 

Legal elements of the proposal 

•  Legal basis 

Article 95 EC 

•  Subsidiarity principle  

The objective of the proposed action cannot be sufficiently achieved by Member States alone. 

–  In  the  present  regulatory  framework,  the  authorisation  of  services  is  handled  at  Member 
State level and considerable discretion is given to the 27 NRAs, with a limited oversight 
and  coordination  role  for  the  Commission.  This  means  that  the  internal  market  is  still  a 
patchwork  of  27  different  regulatory  systems.  This  hinders  the  development  of  cross-
border  services  and  operators  are  confronted  with  different  or  diverging  operating 
conditions  in  similar  circumstances.  In  practice,  several  regulatory  issues  dealt  with  by 
national regulators are common across the EU (e.g. regulatory treatment of new services, 
aspects  of  regulatory  accounting,  numbering  issues,  the  functioning  of  equipment  and 
services for disabled users travelling in the EU, etc.)8. For these areas, in order to promote 
economies of scale and a competitive internal market, it is of pivotal importance to develop 
a  common  EU  practice  and  expertise  to  further  consistency  and,  where  appropriate, 
harmonisation.  This  requirement  can  be  effectively  and  efficiently  addressed  only  by 
improving  the  current  institutional  model  and  the  balance  between  the  responsibilities 
assigned  to  Member  States,  NRAs,  and  the  Commission.  This  can  be  achieved  only  by 
action at Community level. 

–  The  development  of  cross-border  service  provision  within  the  Community  is  one  of  the 
objectives  of  the  Review,  as  provided  for  by  the  Authorisation  Directive9.  The  extensive 
public  consultation  highlighted  the  urgent  need  to  make  it  easier  for  operators  to  offer 
cross-Community  services,  by  removing  some  of  the  important  obstacles  inherent  in  the 
current approach10. There are a number of cross-border services that cannot be regulated in 
a consistent way or addressed with a view to achieving economies of scale by the action of 
individual Member States.  

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10 

In contrast, regulatory decisions in other areas (e.g. issuance of rights of way) are highly dependent on 
local conditions. 
Article 16. 
This point was also raised in the Communication from the Commission to the Council and the European 
Parliament – European Space Policy - COM(2007) 212, 26.4.2007. 

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By  improving the consistency  of regulation  in the internal market and reducing the  costs of 
firms  operating  across  multiple  countries,  action  at  Community  level  would  be  clearly 
beneficial by reason of its scale and would produce positive effects compared to action taken 
at  the  level  of  Member  States.  The  objectives  of  the  proposed  action  can  thus  be  better 
achieved at Community level. 

•  Proportionality principle 

The  proposal  complies  with  the  proportionality  principle  as  the  Authority  will  have  an 
advisory  role  in  helping  the  Commission  to  implement  policy  in  the  field  of  electronic 
communications.  

–  The creation of the Authority will integrate the cooperation among NRAs (currently within 
the  ERG)  within  the  Community  system.  There  is  clearly  a  need  to  improve  the 
arrangements so that certain tasks currently carried out by the ERG – which is essentially a 
consultative  forum  of  national  regulators  without  the  institutional  capability  to  arrive  at 
common decisions – are performed by a single specialised body at EU level, acting within 
the Community's institutional structure. In performing its tasks the Authority will provide 
the  Commission  with  technical  expertise  and  help  in  preparing  regulatory  decisions  to 
further the internal market, which will be enhanced by the proposed incorporation of  the 
work of ENISA on network and information security.  

–  The Authority's Board of Regulators will comprise the heads of the NRAs and will work in 
the Community interest. The proposed system will allow the Commission to benefit from 
the joint expertise of the national regulators – which have a closer knowledge of national 
markets and circumstances – and reinforce cooperation between the Commission and the 
national regulators. The system complements the powers of NRAs for the implementation 
of the regulatory framework at national level. 

–  Rights  of  use  for  frequencies  and  numbers  used  for  the  provision  of  cross-Community 
services will continue to be granted at national level, under a commonly agreed approach, 
to  be  applied  only  to  certain  services  with  cross-Community  characteristics  (e.g.  satellite 
services).  Cross-Community  services  would  also  continue  to  be  authorised  at  national 
level,  under  a  commonly  agreed  approach.  However,  the  granting  of  rights  of  use  for 
frequencies and numbers for the provision of nationally-based services are not concerned 
by this proposal and will remain under the responsibility of the NRAs. 

This  means  that  while  improving  coordination  in  some  key  areas  with  a  Community 
dimension,  the  role  of  the  Authority  will  not  go  beyond  what  is  necessary  to  achieve  the 
objective sought. 

Due  to  the  fact  that  the  proposed  instrument  will  apply  directly  within  the  Community  by 
virtue  of  its  status  as  a  Regulation,  the  financial  and  administrative  burden  falling  upon  the 
Community,  national  governments,  and  economic  operators  will  be  minimised  and  be 
proportionate to the objective of the proposal. 

•  Choice of instruments 

Proposed instruments: Regulation of the European Parliament and the Council. 

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A Regulation having direct application is the appropriate instrument for creating an Authority 
of the type proposed. 

4. 

BUDGETARY IMPLICATION  

It is estimated that the Authority will expand up to a permanent staff of 134 FTE once fully 
established. This includes taking over the tasks and resources of ENISA in 2011. The annual 
budget  is  estimated  at  € 10  million  in  the  first  year,  rising  to  € 28  million  from  year  3 
onwards.  In  addition  to  the  Community  contribution,  the  Authority  may  collect  fees  and 
charges  for  some  services.  Income  received  by  the  Authority  for  the  services  provided  will 
contribute to financing its activity11. 

Against  these  costs  should  be  set  the  savings  achieved  by  incorporating  ENISA  into  the 
proposed Authority. The current annual budget of ENISA is around € 8 million.  

5. 

ADDITIONAL INFORMATION  

•  Simplification 

The proposal forms part of a new system to make the existing regulatory process simpler and 
more  efficient  for  both  administrations  and  market  players.  The  Authority  will  improve  the 
decision-making process and facilitate cooperation between the Commission and the NRAs, 
on the basis of common objectives and procedures. The establishment of the Authority will be 
accompanied by a relaxation of the present system of automatic notification under ‘Article 7’ 
procedure, which will pave the way for a substantial reduction in the procedural burden on the 
industry,  the  NRAs  and  the  Commission,  where  the  Commission  will  intervene  in  serious 
cases  only.  The  Authority  will  have  an  important  role  to  play  in  assessing  the  technical 
complexities of such cases, and in ensuring solutions and consistent outcomes in the internal 
market. 

The current system for granting rights of use for frequencies or numbers, with different legal 
and  procedural  requirements  in  every  Member  State  where  services  are  offered,  can  be 
extremely complex and burdensome for undertakings wishing to provide services on a cross-
Community  basis.  Meeting  requirements  that  are  different  in  every  Member  State  (for 
example,  the  duration  of  the  rights-of-use  and  the  conditions  attached)  complicates  the 
planning  of,  investment  in  and  ultimately  the  deployment  of  services  with  a  European 
footprint. Such a wide variation in the procedures to obtain rights-of-use discourages market 
entry  and  impedes  the  functioning  of  the  internal  market.  This  argues  in  favour  of  a  more 
coordinated approach to selecting undertakings for the issuance of national rights-of-use for 
frequencies and numbers. 

The  proposal  is  included  in  the  Commission's  rolling  programme  for  up-dating  and 
simplification of the acquis communautaire. 

11 

Based on recent (2006) auctions carried out in the UK and in Germany, it can be tentatively estimated 
that the value of a spectrum slot suitable for electronic communications services across the EU could be 
in the range of € 35-60 million. If the Authority was granted 1% of this value, this would represent a 
contribution of between € 0.35-0.60 million. Several such 'slots' can be envisaged. 

EN 

10 

   EN 

 
                                                 
•  Review/revision/sunset clause 

The proposal includes a review clause. 

•  European Economic Area (EEA) 

The proposed act concerns an EEA matter and should therefore extend to the EEA. 

6. 

DETAILED EXPLANATION OF THE PROPOSAL  

Chapter I (Subject-matter, scope, definitions and tasks)  

Articles 1 and 2: provide the scope of application of the regulation, which is to improve the 
functioning of the internal market for electronic communications by establishing a European 
Electronic Communications Market Authority, and establish it.  

Article  3:  specifies  its  functions  such  as  delivering  opinions  on  its  own  initiative  or  at  the 
request  of  the  Commission,  and  assist  the  Commission  in  providing  technical  advice, 
undertaking studies, collecting information and reports, etc. 

Chapter II: Tasks of the Authority relating to strengthening the internal market  

Article  4:  provides  the  matters  addressed  by  the  Authority  to  foster  the  harmonised 
application of the regulatory framework.  

Article 5: regulates the consultation of the Authority in relation to the definition and analysis 
of national markets and remedies. The Authority will be required to give an opinion within a 
specified timeframe in cases where the Commission expressed "serious doubts" about a draft 
measure notified under Article 7 of the Framework Directive. 

Article  6:  where  an  NRA  failed  to  analyse  a  market  within  the  required  timeframe,  the 
Commission  could  ask  the  Authority  to  provide  advice  and  assistance  in  relation  to  that 
specific national market. 

Article  7:  the  Authority  will  undertake  the  analysis  of  trans-national  markets  following 
identification  of  a  trans-national  market  by  the  Commission,  in  accordance  with  the 
provisions of Article 15(4) of the Framework Directive. 

Article  8:  concerns  the  Authority's  tasks  in  the  field  of  numbering  which  include  the 
administration and development of ETNS, the management of harmonised numbering ranges 
(e.g. handling the requests for reservation of '116' numbers, pursuant to Commission Decision 
2007/116/EC), and delivering an opinion, on request, on obligations regarding the porting of 
numbers.  

Article  9:  the  Authority  will  assist  the  Commission  by  carrying  out  an  annual  review  of 
measures taken at national level to increase the awareness of the single European emergency 
number  '112'.  On  request  of  the  Commission,  it  will  issue  an  opinion  on  technical  issues 
related to the implementation of '112'. 

EN 

11 

   EN 

 
Article  10:  the  Authority  will  assist  the  Commission  on  issues  relating  to  technical  and 
economic  aspects  regarding  radio  frequencies  used  for  the  provision  of  electronic 
communications services. 

Article 11: the Authority will assist in the identification of the services with cross-Community 
which would benefit from a common selection procedure. For a service to qualify as a cross-
Community  service,  it  will  need  to  fulfil  certain  conditions.  For  example,  there  should  be 
demand for the services in more than one Member State and the services concerned, by the 
nature  of  the  characteristics,  crosses  national  borders  and  as  such  are  susceptible  to  EU  or 
regional rather than national regulation. 

Article 12: sets out the provisions for the identification of undertakings for right of use to be 
used  for  the  provision  of  cross-Community  services.  The  Authority  will  carry  out  the 
selection procedure and deliver an opinion proposing the undertaking(s) to which rights of use 
could be granted. 

Article 13: the Authority will play a role on the withdrawal of rights of use issued following a 
common selection procedure. 

Article  14:  the  Authority  will  contribute  to  the  development  of  a  culture  of  network  and 
information security by carrying out certain activities previously undertaken by ENISA. 

Article 15: lists the cases where the Authority can act on its own initiative. 

Chapter III: Complementary tasks of the Authority 

Articles  16  and  17:  the  Authority  will  collect  the  administrative  charges  for  some  of  the 
services  provided  to  offset  the  costs  of  administration.  In  case  of  a  common  selection 
procedure, it will also collect administrative charges and usage fees for rights-of-use of radio 
frequencies on behalf of Member States, which it will then redistribute to the Member States. 

Article 18: on request from a NRA, the Authority will issue recommendations to the NRAs as 
the measures to be taken by the NRAs in case of cross-border issues.  

Articles  19  to  21:  the  Authority  will  play  a  role  in  the  dissemination  and  exchange  of 
information between the Member States, the NRAs and the Commission. It could be involved 
in studying technical development within the Community. It will publish an annual report on 
developments  in  the  electronic  communications  sector,  in  which  it  will  identify  remaining 
barriers to completion of the single market. It will play a role in the collection of information 
as in the management and publication of the frequencies information registry (the Annex sets 
out the information to be included in the registry) and of the mobile roaming database.  

Article 22: the Authority will assist the Commission on e-Accessibility issues and publish an 
annual report on measures to be taken to improve accessibility of electronic communications 
networks and equipment by disabled end-users. 

Chapter IV: Organisation of the Authority 

Article  24:  the  organisational  structure  of  the  Authority  will  include  six  bodies:  an 
Administrative Board, a Board of Regulators, a Director, a Chief Network Security Officer, a 
Permanent Stakeholders' Group, and a Board of Appeal. 

EN 

12 

   EN 

 
Articles 25 and 26: The Administrative Board will be responsible for the appointment of the 
Director  and  Chief  Network  Security  Officer,  adoption  of  the  Authority's  annual  work 
programme  and  budget,  the  approval  of  the  general  report  on  the  Authority's  activities,  and 
the  adoption  of  the  financial  rules  applicable  to  the  Authority.  The  Authority  will  regularly 
give an account of its activities to the European Parliament. 

Articles 27 and 28: the Board of Regulators will comprise one member per Member State who 
would be the Head of the independent national regulatory authority with responsibility for the 
day-to-day  application  of  the  regulatory  framework  in  the  Member  State,  and  the  Director. 
The Commission may participate, but without a right to vote, in Board meetings. The Board 
of Regulators will be responsible for technical decision-making of the Authority in areas such 
as  the  identification  of  potential  rights  holders,  the  opinions  under  Article  7  cases,  etc. 
Opinions and decisions should be taken by simple majority. 

Articles 29 and 30: the Director, will be fully responsible for tasks assigned to the Authority 
and  be  the  Authority's  legal  representative.  The  Director  will  also  be  responsible  for  the 
preparation and implementation of the budget, the preparation of the draft work programme, 
and for personnel matters12. 

Article 31: The Chief Network Security Officer will be responsible for the coordination of the 
Authority's tasks and the preparation of an annual work programme in the area of network and 
information  security.  He/she  will  report  to  the  Director  and  be  supported  by  a  Permanent 
Stakeholders' Group (Article 32). 

Articles 33 and 34: set out the Board of Appeal to ensure that parties affected by decisions of 
the Authority in the field of numbering enjoy the necessary remedies. 

Articles  36–53  cover  standard  operational  and  administrative  matters,  including,  budget, 
access  to  documents  and  transparency,  legal  status  of  the  Authority,  staff,  participation  of 
third countries, etc.  

Article 55: concerns the Commission's evaluation of the results of the Authority in relation to 
its mandate and objective, to be issued after five years from the effective start of operation of 
the Authority. The report and any accompanying proposal will be transmitted to the Council 
and the European Parliament. 

12 

Concerning  the  appointment  of  the  Director,  see  the  Guidelines  for  the  appointment  of  heads  of 
Community agencies - SEC(2005) 625. 

EN 

13 

   EN 

 
                                                 
2007/0249 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing the European Electronic Communications Market Authority 

(Text with EEA relevance)  

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 95 thereof, 

Having regard to the proposal from the Commission13, 

Having regard to the opinion of the European Economic and Social Committee14, 

Having regard to the opinion of the Committee of the Regions15, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty16, 

Whereas:  

(1) 

Directive 2002/21/EC of the European Parliament and of the Council of 7 March 2002 
on  a  common  regulatory  framework  for  electronic  communications  networks  and 
services  (Framework  Directive)17,  Directive  2002/19/EC  of  the  European  Parliament 
and  of  the  Council  of  7 March  2002  on  access  to,  and  interconnection  of,  electronic 
communications  networks  and  associated  facilities  (Access  Directive)18,  Directive 
2002/20/EC  of  the  European  Parliament  and  of  the  Council  of  7 March  2002  on  the 
authorisation  of  electronic  communications  networks  and  services  (Authorisation 
Directive)19, Directive 2002/22/EC of the European Parliament and of the Council of 
7 March  2002  on  universal  service  and  users'  rights  relating 
to  electronic 
communications networks and  services (Universal Service Directive)20 and Directive 
2002/58/EC  of  the  European Parliament  and  of  the  Council  of  12  July  2002 
concerning  the  processing  of  personal  data  and  the  protection  of  privacy  in  the 
electronic 
electronic 

(Directive  on  privacy 

communications 

sector 

and 

13 
14 
15 
16 
17 
18 
19 
20 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ L 108, 24.4.2002, p. 33. 
OJ L 108, 24.4.2002, p. 7. 
OJ L 108, 24.4.2002, p. 21. 
OJ L 108, 24.4.2002, p. 51. 

EN 

14 

   EN 

 
                                                 
communications)21 (hereinafter together referred to as "the Framework Directive and 
internal  market  for  electronic 
to  create  an 
the  Specific  Directives")  aim 
communications  within  the  Community  while  ensuring  a  high  level  of  investment, 
innovation and consumer protection through enhanced competition. 

The 2002 regulatory framework for electronic communications establishes a system of 
regulation  undertaken  by  national  regulatory  authorities  and  provides  for  those 
authorities to co-operate with each other and with the Commission in order to ensure 
the development of consistent regulatory practice and the consistent application across 
the Community of the regulatory framework. 

Regulation  (EC)  No  460/2004  of  the  European  Parliament  and  of  the  Council  of  10 
March  2004  establishing  the  European  Network  and  Information  Security  Agency22 
(hereinafter “ENISA Regulation”) established the European Network and Information 
Security Agency (ENISA) in 2004 for a period of five years, with the goal of ensuring 
a high and effective level of network and information security within the Community, 
in order to develop a culture of network and information security for the benefit of the 
citizens,  consumers,  enterprises  and  public  sector  organisations  of  the  European 
Union, thus contributing to the smooth functioning of the internal market. 

National  regulatory  authorities  exercise  considerable  discretion  in  implementing  the 
regulatory framework reflecting their expert knowledge of local market conditions, but 
this  discretion  has  to  be  reconciled  with  the  need  to  ensure  the  development  of 
coherent  regulatory  practice  and  the  consistent  application  of  the  regulatory 
framework in order to contribute effectively to the development and completion of the 
internal market. 

In view of this need to apply the relevant rules consistently in all Member States, the 
Commission  established  the  European  Regulators  Group  (ERG)  by  Commission 
Decision  2002/627/EC23  to  advise  and  assist  the  Commission  in  consolidating  the 
internal  market  and,  more  generally,  to  provide  an  interface  between  national 
regulatory authorities and the Commission. 

The  ERG  has  made  a  positive  contribution  by  assisting  moves  towards  consistent 
regulatory practice,  in  as  far  as this  has proved possible. By its nature, however,  the 
ERG is a loose grouping relying essentially on voluntary cooperation whose existing 
institutional  status  does  not  reflect  the  important  responsibilities  exercised  by  the 
national regulatory authorities in implementing the regulatory framework. 

A more substantial institutional basis for the establishment of a body bringing together 
the  expertise  and  experience  of  the  national  regulatory  authorities,  together  with  a 
clearly defined set of competencies, is therefore called for, taking account of the need 
for this body to exercise real authority in the eyes of its members and the sector being 
regulated through the quality of its output. 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

21 

22 
23 

OJ  L  201,  31.7.2002,  p.  37.  Directive  as  amended  by  Directive  2006/24/EC  (OJ  L  105,  13.4.2006, 
p. 54). 
OJ L 77, 13.3.2004, p. 1.  
OJ L 200, 30.7.2002, p. 38. 

EN 

15 

   EN 

 
                                                 
(8) 

(9) 

regulatory 

framework24  and  by 

the  public  consultation  on 

The  need  to  enhance  the  mechanisms  for  ensuring  consistent  regulatory  practice  in 
order  to  complete  the  internal  market  in  electronic  communications  and  services  has 
been underlined by the findings of the Commission's reports on the implementation of 
the  2002 
the 
Communication  of  the  Commission  of  29  June  2006  to  the  Council,  the  European 
Parliament the European  Economic and Social Committee and the Committee of the 
Regions  on 
the  EU  Regulatory  Framework  for  electronic 
communications  networks  and  services25.  These  identified  the  continuing  lack  of  an 
internal market for electronic communications as the most important issue that needed 
to be addressed by the reform of the regulatory framework. Regulatory fragmentation 
and  inconsistencies  resulting  from  the  loosely  coordinated  activities  of  the  national 
regulatory authorities risk jeopardising the competitiveness of the sector as well as the 
substantial  consumer  benefits  resulting  from  cross-border  competition  and  trans-
national and even cross-Community services.  

the  Review  of 

In particular, delays in carrying out market analyses pursuant to Directive 2002/21/EC 
(Framework  Directive),  divergent  approaches  by  national  regulatory  authorities 
towards  the  imposition  of  obligations  designed  to  remedy  a  lack  of  effective 
competition  found  by  the  market  analysis,  the  heterogeneous  conditions  attached  to 
rights of use, the varying selection procedures for cross-Community services, different 
numbers within the Community for cross-Community services, and problems faced by 
national regulatory authorities in dealing with cross-border disputes lead to inefficient 
solutions and create obstacles to the internal market.  

(10)  The Commission Communication to the European Parliament and Council of  1 June 
2007 "On the evaluation of the European Network and Information Security Agency 
(ENISA)"26  presented  an  appraisal  of  an  external  expert  report27  evaluating  the 
performance  of  the  Agency  since  its  establishment  and  the  recommendations  of  the 
ENISA  Management  Board  regarding  the  ENISA  Regulation  and  launched  a  public 
consultation. The key findings of that expert report confirmed the validity of the policy 
behind the creation of ENISA and its original goals, and in particular its contribution 
to achieving a truly internal market in electronic communications. 

(11)  At the same time, a number of problems were identified, including in particular issues 
relating  to  its  organisational  structure,  the  skills  mix  and  the  size  of  its  operational 
staff,  and  logistical  difficulties.  The  key  functions  of  ENISA  should  evolve  so  as  to 
form a core component of the Authority, which on the basis of a clearer identification 
of objectives and tasks, should ensure that those objectives and tasks can be fulfilled in 
a more efficient, focused and cost effective manner, consistent with the principles of 
better regulation, by a single authority with competence over matters falling within the 
EU regulatory framework for electronic communications networks and services.  

(12)  This calls for the establishment of a new Community  body, the European Electronic 
Communications Market Authority (hereinafter the “Authority”). The Authority would 
make  an  effective  contribution  to  furthering  the  completion  of  the  internal  market 

24 
25 
26 
27 

COM(2006) 68 and COM(2007) 155. 
COM(2006) 334. 
COM(2007) 285. 
"Evaluation of the European Network and Information Security Agency", Final Report by the Experts 
Panel, IDC EMEA, 8.1.2007 

EN 

16 

   EN 

 
                                                 
through  the  assistance  it  provides  to  the  Commission  and  the  national  regulatory 
authorities. It would operate as a point of reference and would establish confidence by 
virtue of its independence, the quality of the advice it delivers and the information it 
disseminates,  the  transparency  of  its  procedures  and  methods  of  operation,  and  its 
diligence in performing the tasks assigned to it.  

(13)  The Authority should, through the pooling of expertise, reinforce the capacities of the 
national regulatory authorities without replacing their existing functions or duplicating 
work already being undertaken, for the further benefit of assisting the Commission in 
the execution of its responsibilities. 

(14)  The  Authority  should  replace  the  ERG  and  serve  as  the  exclusive  forum  for 
cooperation between national regulatory authorities in the exercise of the full range of 
their responsibilities under the regulatory framework. 

(15)  The  Authority  should  be  established  within  the  Community's  existing  institutional 
structure  and  balance  of  powers.  It  should  be  independent  in  relation  to  technical 
matters  and  have  legal,  administrative  and  financial  autonomy.  To  that  end,  it  is 
necessary  and  appropriate  that  it  should  be  a  Community  body  having  legal 
personality and exercising the tasks conferred on it by this Regulation. 

(16)  The Authority should build on national and Community efforts and therefore perform 
its  tasks  in  full  cooperation  with  the  national  regulatory  authorities  and  the 
Commission,  and  be  open  to  contacts  with  industry,  consumer  groups  and  other 
relevant stakeholders. 

(17)  This Regulation and the Authority which it establishes should form an integral part of 
the  Community  regulatory  framework  for  electronic  communications.  In  this  regard, 
the Authority has, in particular, an important role to play in the mechanisms envisaged 
for  consolidating  the  internal  market  for  electronic  communications  and  for  carrying 
out market analyses in certain circumstances. 

(18)  The Authority should accordingly advise the Commission and the national regulatory 
authorities  in  accordance  with  the  Community  regulatory  framework  for  electronic 
communications and thereby assist in its effective implementation. 

(19)  The  Authority  should  assist  the  Commission  concerning  any  extension  of  the 
Community  obligations  for  number  portability.  Such  extension  could  concern  in 
particular the scope of the information to be ported or the types of network (i.e. fixed 
or mobile) between which numbers and information are to be ported. Changes in this 
obligation  should  take  into  account  prices  to  users  and  the  switching  costs  for 
undertakings, as well as the experiences in Member States.  

(20)  The Authority should assist the Commission by undertaking an annual review of the 
measures taken the Member States informing the citizens about the existence and use 
of the single European emergency call number "112”. The Authority's annual review 
would  identify  best  practices  and  remaining  bottlenecks  and  would  contribute  to 
improve  the  level  of  protection  and  security  of  citizens  travelling  in  the  European 
Union. 

EN 

17 

   EN 

 
(21) 

In  the  context  of  pursuing  the  aims  of  Decision  No  676/2002/EC  of  the  European 
Parliament and of the Council of 7 March 2002 on a regulatory framework for radio 
spectrum  policy  in  the  European  Community  (Radio  Spectrum  Decision)28,  the 
Commission may seek the independent expert advice of the Authority relating to the 
use  of  the  radio  frequencies  in  the  Community.  This  advice  could  involve  specific 
technical investigations, as well as economic or social impact assessment and analysis 
relating  to  frequencies  policy  measures.  It  could  also  include  matters  relating  to  the 
implementation of Article 4 of Decision No 676/2002/EC, where the Authority may be 
asked to provide advice to the Commission on the results obtained under Commission 
mandates 
the  European  Conference  of  Postal  and  Telecommunications 
to 
Administrations (CEPT).  

(22)  While  technological  and  market  developments  have  increased  the  potential  for  the 
deployment  of  electronic  communications  services  beyond 
the  geographical 
boundaries of individual Member States, there is a risk that the existence of differing 
legal  and  regulatory  conditions  for  the  deployment  of  those  services  under  national 
laws  will  increasingly  hold  back  the  provision  of  such  cross-border  services.  The 
Authority  should  therefore  play  a  key  role  in  the  establishment  of  harmonised 
conditions  for  the  authorisation  of  those  services,  whether  with  regard  to  general 
authorisations, rights of use for radio frequencies or rights of use for numbers, and in 
advising  the  Commission  on  the  details  of  the  measures  to  be  taken  under  Directive 
2002/21/EC (Framework Directive) to achieve such harmonised conditions.  

(23)  The Authority should in particular assess the need for a single selection procedure at 
Community  level  for  rights  of  use  subject  to  harmonised  conditions,  advise  the 
Commission on the terms and criteria to be applied in such a selection procedure and 
receive  and  assess  applications  from  undertakings  for  such  rights  of  use.  The 
Authority should also have the task of advising the Commission as to the withdrawal 
of such rights of use, where appropriate. 

(24)  The  Authority  should  act  as  a  centre  of  expertise  at  European  level  on  network  and 
information  security  issues,  providing  guidance  and  advice  to  the  European 
Parliament,  the  Commission  or  competent  bodies  appointed  by  the  Member  States. 
The  security  and  resilience  of  communication  networks  and  information  systems 
remain a prime concern for society and a key element in the EU regulatory framework 
for  electronic  communications  networks  and  service.  The  smooth  functioning  of  the 
internal market risks being undermined by a heterogeneous application of the security-
related provisions laid down in the Framework Directive and the Specific Directives. 
The  opinion  of  the  Authority  providing  technical  advice  at  the  request  of  the 
Commission  and  the  Member  States  should  facilitate  the  consistent  application  of 
those directives at national level.  

(25)  Administrative  charges  may  be  imposed  on  providers  of  electronic  communications 
for managing the authorisation system and for the granting of rights of use. In addition 
to  administrative  charges,  usage  fees  may  be  levied  for  the  use  of  frequencies  and 
numbers. In the interest of reducing the administrative burden on undertakings, in case 
of a common selection procedure the Authority should collect and redistribute to the 
Member States the administrative charges and usage fees.  

28 

OJ L 108, 24.4.2002, p. 1. 

EN 

18 

   EN 

 
                                                 
(26)  Where  disputes  with  a  cross-border  nature  arise  between  undertakings  in  respect  of 
rights  or  obligations  under  the  regulatory  framework  for  electronic  communications, 
the Authority should be  able to investigate the background to the dispute and  advise 
the national regulatory authorities concerned as to the measures it considers are most 
appropriate  for  them  to  take  to  resolve  it  in  accordance  with  the  provisions  of  the 
regulatory framework.  

(27)  The  Authority  should  contribute  to  the  development  of  best  regulatory  practice  and 
consistency in the application of regulation in the electronic communications sector by 
fostering  the  exchange  of  information  between  national  authorities  and  making 
appropriate  information  available  to  the  public  in  an  easily  accessible  manner.  The 
Authority should have the possibility to address economic and technical matters and to 
access  the  most  updated  information  available  in  order  to  be  able  to  respond  to  the 
economic  and  technical  challenges  posed  by  the  developing  information  society,  for 
example  in  areas  like  network  and  information  security  and  radio  frequency 
identification devices.  

(28)  To be able to perform its tasks as set out in this Regulation and to understand better 
the challenges in the electronic communications field, including current and emerging 
risks in the network and information security field, the Authority needs to be able to 
analyse  current  and  emerging  developments.  For  that  purpose  the  Authority  may 
collect  appropriate  information,  in  particular  concerning  breaches  of  security  and 
integrity that had a significant impact on the operation of network or services provided 
by  national  regulatory  authorities  in  accordance  with  Article  13a(3)  of  Directive 
2002/21/EC (Framework Directive), as well as through questionnaires. 

(29)  As a focal point for the sharing and exchange of information on matters relating to the 
regulation  of  electronic  communications  services  across  the  Community,  and  in  the 
interests of promoting transparency and reducing administrative burdens for providers 
and  users  of  those  services,  the  Authority  should  maintain  and  make  accessible  a 
register  containing  information  on  the  use  of  frequencies  within  the  Community,  on 
the  basis  of  standardised  information  provided  on  a  regular  basis  by  each  Member 
State.  In  order  to  improve  the  transparency  of  retail  prices  for  making  and  receiving 
regulated  roaming  calls  within  the  Community  and  to  help  roaming  customers  make 
decisions  on  the  use  of  their  mobile  telephones  while  abroad,  the  Authority  should 
ensure that up-to-date information on the application of Regulation (EC) No 717/2007 
of the European Parliament and of the Council of 27 June 2007 on roaming on public 
the  Community  and  amending  Directive 
mobile 
2002/21/EC29  is  made  available  to  interested  parties  and  publish  the  results  of  such 
monitoring on an annual basis. 

telephone  networks  within 

(30)  The  Authority  should  also  be  able  to  commission  studies  necessary  for  the 
accomplishment  of  its  tasks,  while  ensuring  that  the  links  established  by  it  with  the 
Commission and the Member States prevent duplication of effort. 

(31)  The Commission should be able to request the Authority to undertake any additional 
specific task within its general remit which may be considered to contribute to meeting 
the objectives of the Community regulatory framework for electronic communications. 

29 

OJ L 171, 29.6.2007, p. 32. 

EN 

19 

   EN 

 
                                                 
(32)  The  structure  of  the  Authority  should  be  suitable  for  the  tasks  it  is  to  perform. 
Experience  with  similar  Community  authorities  provides  some  guidance  in  this 
respect,  but  the  structure  should  be  adapted  to  meet  the  specific  needs  of  the 
Community system for the regulation of electronic communications. In particular, the 
specific role of the national regulatory authorities and their independent nature needs 
to be fully addressed.  

(33)  The Authority should have the necessary powers to perform the regulatory functions in 
an efficient and above all independent manner. Reflecting the situation on a national 
level,  the  Board  of  Regulators  should  therefore  act  independently  from  any  market 
interest and shall not seek or take instructions from any government or other public or 
private entity.  

(34)  The smooth functioning of the Authority requires that its Director be appointed on the 
grounds  of  merit  and  documented  administrative  and  managerial  skills,  as  well  as 
competence and experience relevant to electronic communications networks, services 
and markets and that he/she performs his/her duties with complete independence and 
flexibility  as  to  the  organisation  of  the  internal  functioning  of  the  Authority.  The 
Director  should  ensure  the  efficient  execution  of  the  Authority's  tasks  in  an 
independent manner. 

(35) 

(36) 

(37) 

In order to ensure that the tasks of the Authority are carried out effectively, its Director 
should  be  entrusted  with  the  necessary  powers  to  adopt  all  opinions,  subject  to  the 
assent  of  the  Board  of  Regulators,  and  to  ensure  that  the  Authority  works  in 
accordance with the general principles laid down to this end. 

It  is  necessary  to  ensure  that  parties  affected  by  decisions  of  the  Authority  have 
recourse to the necessary remedies. An appropriate appeal mechanism should be set up 
so  that  decisions  of  the  Authority  can  be  subject  to  appeal  to  a  specialised  Board  of 
Appeal, whose decisions, in turn, should be open to action before the Court of Justice.  

In  addition  to  its  operating  principles  based  on  independence  and  transparency,  the 
Authority  should  be  an  organisation  open  to  contacts  with  industry,  consumers  and 
other  interested  stakeholders.  The  Authority  should  enhance  cooperation  between 
different actors operating in the field of network and information security, inter alia, 
by organising, on a regular basis, consultation with industry, research centres, as well 
as  other  stakeholders  concerned  and  by  establishing  a  network  of  contacts  for 
Community  bodies,  public  sector  bodies  appointed  by  the  Member  States,  private 
sector and consumer bodies. 

(38)  The  Authority's  procedures  should  therefore  ensure  that  the  Authority  has  access  to 
the  electronic  communications  sector, 
specialist  expertise  and  experience 
particularly  in  areas  of  technical  complexity  and  rapid  change  such  as  network  and 
information security.  

in 

(39) 

In order to ensure that the necessary degree of expertise and experience are brought to 
bear  in  the  performance  of  the  tasks  of  the  Authority  related  to  network  and 
information  security,  a  Chief  Network  Security  Officer  should  be  appointed.  A 
Permanent Stakeholders' Group should be established in order to provide advice to the 
Chief  Network  Security  Officer,  encourage  the  sharing  of  experience  and  best 

EN 

20 

   EN 

 
practices  in  these  matters  and  maintain  regular  dialogue  with  the  private  sector, 
consumer organisations and other stakeholders. 

(40) 

In order to guarantee the full autonomy and independence of the Authority, it should 
receive  an  autonomous  budget.  The  Community  budgetary  procedure  remains 
applicable as for any subsidies chargeable to the general budget of the European Union 
are  concerned.  Moreover,  the  Court  of  Auditors  should  undertake  the  auditing  of 
accounts in accordance with Article 91 of Commission Regulation (EC, Euratom) No 
2343/2002  of  23  December  2002  on  the  framework  Financial  Regulation  for  the 
bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 
on  the  Financial  Regulation  applicable  to  the  general  budget  of  the  European 
Communities30.  

(41)  The  Authority  should  where  appropriate  consult  interested  parties  and  provide  them 
with an opportunity to comment on draft measures within a reasonable period. 

(42)  The Commission should be able to impose financial penalties on undertakings that do 
not  provide  the  information  that  is  necessary  for  the  Authority  to  achieve  its  tasks 
effectively.  Also,  Member  States  should  ensure  that  they  have  an  appropriate 
framework  for  imposing  on  undertakings  effective,  proportionate  and  dissuasive 
penalties for non-compliance with obligations arising from this Regulation.  

(43)  Within  its  scope,  in  pursuing  its  objectives  and  in  the  performance  of  its  tasks,  the 
Authority  should  comply  in  particular  with  the  provisions  applicable  to  the 
Community  institutions  regarding  the  treatment  of  sensitive  documents.  Where 
relevant, it is appropriate to ensure a coherent and secure information exchange in the 
framework of this Regulation.  

(44)  The  Authority  should  apply  the  relevant  Community  legislation  concerning  public 
access  to  documents  as  set  out  in  Regulation  (EC)  No  1049/2001  of  the  European 
Parliament  and  of  the  Council  of  30  May  2001  regarding  public  access  to  European 
Parliament,  Council  and  Commission  documents31  and  the  protection  of  individuals 
with  regard  to  the  processing  of  personal  data  as  set  out  in  Regulation  (EC)  No 
45/2001 of the European Parliament and of the Council of 18 December 2000 on the 
protection  of  individuals  with  regard  to  the  processing  of  personal  data  by  the 
Community institutions and bodies and on the free movement of such data32. 

(45)  Participation  of  third  countries  in  the  work  of  the  Authority  should  be  possible  in 

accordance with appropriate agreements to be concluded by the Community. 

(46)  The  smooth  transition  should  be  ensured  for  the  ongoing  activities  of  the  ENISA 

falling within the remit of the Authority.  

30 
31 
32 

OJ L 357, 31.12.2002, p. 72.  
OJ L 145, 31.5.2001, p. 43. 
OJ L 8, 12.1.2001, p. 1. 

EN 

21 

   EN 

 
                                                 
(47)  The measures necessary for the implementation of this Regulation should be adopted 
in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the 
procedures for the exercise of implementing powers conferred on the Commission33. 

(48) 

In particular power should be conferred on the Commission to adapt the information 
specified in the Annex to this Regulation to technical or market developments. Since 
those measures are of general scope and are designed to amend non-essential elements 
of this Regulation, they must be adopted in accordance with the regulatory procedure 
with scrutiny provided for in Article 5a of Decision 1999/468/EC. 

(49)  Since  the  objectives  of  the  proposed  action,  namely  the  better  functioning  of  the 
internal  market  for  electronic  communications  networks  and  services  and  the 
development  of  cross-Community  electronic  communications,  cannot  be  sufficiently 
achieved by the Member States in view of the Europe-wide scope of this Regulation, 
and can therefore be better achieved at Community level, the Community may adopt 
measures, in accordance with the principle of subsidiarity, as set out in Article 5 of the 
Treaty. In accordance with the principle of proportionality, as set out in that Article, 
this  Regulation  does  not  go  beyond  what  is  necessary  in  order  to  achieve  those 
objectives.  

HAVE ADOPTED THIS REGULATION: 

CHAPTER I 

SUBJECT-MATTER, SCOPE, DEFINITIONS AND TASKS 

Article 1 
Subject-matter and scope 

A  European  Electronic  Communications  Market  Authority  is  established  with  the 
responsibilities laid down in this Regulation. 

The Authority shall act within the scope of the Framework Directive and the Specific 
Directives and draw upon expertise available in the national regulatory authorities. It 
shall  contribute  to  the  better  functioning  of  the  internal  market  for  electronic 
communications  networks  and  services,  including  in  particular  the  development  of 
cross-Community  electronic  communications  and  a  high  and  effective  level  of 
network and information security, through the tasks listed in Chapters II and III. 

The  Authority  shall  carry  out  its  tasks  in  cooperation  with  the  national  regulatory 
authorities and the Commission in a European system for the regulation of electronic 
communications. 

OJ  L  184,  17.7.1999,  p.  23.  Decision  as  amended  by  Decision  2006/512/EC  (OJ  L  200,  22.7.2006, 
p. 11). 

1. 

2. 

3. 

33 

EN 

22 

   EN 

 
                                                 
4. 

5. 

In all its activities, and in particular in the drawing up of its opinions, the Authority 
shall  pursue  the  same  objectives  as  those  addressed  to  the  national  regulatory 
authorities by Article 8 of Directive 2002/21/EC (Framework Directive). 

The  objectives  and  the  tasks  of  the  Authority  shall  be  without  prejudice  to  the 
competencies  of  the  Member  States  regarding  network  and  information  security 
which fall outside the scope of the EC Treaty, in particular, those covered by Titles V 
and VI of the Treaty on European Union. In any case, the objectives and the tasks of 
the  Authority  shall  be  without  prejudice  to  activities  concerning  public  security, 
defence, activities of the State in areas of criminal law and State security, including 
the economic well-being of the State when the issues relate to State security matters.  

Article 2 
Definitions 

For  the  purposes  of  this  Regulation,  the  definitions  set  out  in  Article  2  of  Directive 
2002/21/EC, Article 2 of Directive 2002/19/EC, Article 2 of Directive 2002/20/EC, Article 2 
of  Directive  2002/22/EC,  Article  2  of  Directive  2002/58/EC  and  Article  2  of  Decision  No 
676/2002/EC (the Radio Spectrum Decision) shall apply. 

Article 3 
Functions of the Authority 

The Authority shall, in the furtherance of its tasks under this Regulation:  

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

issue opinions at the request of the Commission or on its own initiative and assist the 
Commission by providing it with additional technical support in all matters regarding 
electronic communications; 

assist  the  Community,  its  Member  States  and  the  national  regulatory  authorities  in 
the relations, discussions and exchanges with third parties; 

provide  advice  for  market  players  and  national  regulatory  authorities  on  regulatory 
issues; 

exchange,  disseminate  and  collect  information  and  undertake  studies  in  areas 
relevant to its activities; 

provide advice and assistance to the Commission or any competent body appointed 
by a Member State with regard to any network and information security issue falling 
within the Authority's remit; 

take individual decisions in relation to the issuance of rights-of-use for numbers from 
the European Telephone Numbering Space (ETNS); 

assist the Commission in the selection of undertakings to be granted rights of use of 
radio frequencies and numbers; 

(h) 

collect and redistribute usage fees for rights-of-use of radio frequencies and numbers; 

EN 

23 

   EN 

 
(i) 

issue recommendations to the national regulatory authorities on cross-border disputes 
and on e-Accessibility matters.  

CHAPTER II 

TASKS OF THE AUTHORITY RELATING TO  
STRENGTHENING THE INTERNAL MARKET 

Article 4 
Role of the Authority in the application  
of the regulatory framework 

1. 

2. 

At the request of the Commission, the Authority shall deliver opinions on all matters 
regarding electronic communications.  

The  Authority  shall  in  particular  contribute  to  the  harmonised  application  of  the 
provisions  of  the  Framework  Directive  and  the  Specific  Directives  by  assisting  the 
Commission in the preparation of recommendations or decisions to be adopted by the 
Commission  in  accordance  with  Article  19  of  Directive  2002/21/EC  (Framework 
Directive). 

3. 

Matters referred to in paragraph 1 shall include: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

draft measures of national regulatory authorities concerning market definition, 
designation  of  undertakings  with  significant  market  power  and  imposition  of 
remedies,  in  accordance  with  Article  7  of  Directive  2002/21/EC  (Framework 
Directive); 

the  security  and  integrity  of  public  electronic  communications  networks  and 
services,  including  issues  linked  to  breaches  of  security  and/or  integrity,  in 
accordance  with  Article  13a  of  Directive  2002/21/EC  (Framework  Directive) 
and  Article  4  of  Directive  2002/58/EC  (Directive  on  privacy  and  electronic 
communications); 

identification  of  trans-national  markets,  in  accordance  with  Article  15  of 
Directive 2002/21/EC (Framework Directive); 

standardisation  issues  in  accordance  with  Article  17  of  Directive  2002/21/EC 
(Framework Directive); 

analyses of specific national markets in accordance with Article 16 of Directive 
2002/21/EC (Framework Directive);  

transparency  and  information  for  end-users,  in  accordance  with  Article  21  of 
Directive 2002/22/EC (Universal Service Directive); 

quality  of  service,  in  accordance  with  Article  22  of  Directive  2002/22/EC 
(Universal Service Directive); 

EN 

24 

   EN 

 
(h) 

(i) 

(j) 

(k) 

(l) 

(m) 

(n) 

effective  implementation  of  the  emergency  call  number  '112',  in  accordance 
with Article 26 of Directive 2002/22/EC (Universal Service Directive); 

numbering  issues,  in  accordance  with  Article  10  of  Directive  2002/21/EC 
(Framework Directive) and access to numbers and services in the Community, 
in  accordance  with  Article  28  of  Directive  2002/22/EC  (Universal  Service 
Directive); 

number  portability,  in  accordance  with  Article  30  of  Directive  2002/22/EC 
(Universal Service Directive); 

the  improvement  of  disabled  end-users'  access  to  electronic  communication 
services and equipment, in accordance with Article 33 of Directive 2002/22/EC 
(Universal Service Directive); 

measures of national regulatory authorities taken in accordance with Articles 5, 
and 8(3) of Directive 2002/19/EC (Access Directive); 

transparency measures for the implementation of unbundling of the local loop, 
in accordance with Article 9 of Directive 2002/19/EC (Access Directive); 

conditions for access to digital television and radio services, in accordance with 
Article  6  of  Directive  2002/19/EC  (Access  Directive),  and  interoperability  of 
interactive digital television services in accordance with Article 18 of Directive 
2002/21/EC (Framework Directive); 

(o)  measures  on  radio  frequencies  issues  in  accordance  with  Articles  4  and  6  of 

Decision 676/2002/EC (the Radio Spectrum Decision); 

(p) 

in accordance with Articles 6a and 6b of Directive 2002/20/EC (Authorisation 
Directive) : 

(i) 

harmonised  conditions  relating  to  rights  of  use  of  radio  frequencies  or 
numbers; 

(ii) 

amendment  or  withdrawal  of  rights  of  use  issued  on  a  coordinated  or 
harmonised basis; 

(iii) 

the  selection  of  undertakings  to  which  individual  rights  of  use  for 
frequencies  or  numbers  could  be  granted  for  services  with  cross-border 
potential. 

4. 

In addition, the Authority shall undertake the specific tasks set out in Articles 5 to 23. 

Article 5 
Consultation of the Authority on the definition and analysis of national markets, and on 
remedies  

1. 

The Commission shall inform the Authority when it acts in accordance with Article 
7(4) and (8) of Directive 2002/21/EC (Framework Directive). 

EN 

25 

   EN 

 
2. 

3. 

1. 

2. 

3. 

1. 

2. 

3. 

4. 

The  Authority  shall  deliver  an  opinion  to  the  Commission  on  the  draft  measure 
concerned within 4 weeks of being so informed. The opinion shall include a detailed 
and objective analysis of whether the draft measure constitutes a barrier to the single 
market  and  its  compatibility  with  Community  law,  in particular  with  the  objectives 
referred  to  in  Article 8  of  Directive  2002/21/EC  (Framework  Directive).  Where 
appropriate  the  Authority  shall  indicate  what  changes  should  be  made  to  the  draft 
measure so as to ensure that these objectives are most effectively met.  

The  Authority  shall  provide  the  Commission  upon  request  with  all  the  information 
available to carry out the tasks referred in paragraph 2. 

Article 6 
Reviews of national markets by the Authority 

If the Authority receives a request from the Commission pursuant to Article 16(7) of 
Directive  2002/21/EC  (Framework  Directive)  to  analyse  a  specific  relevant  market 
within a Member State, it shall deliver an opinion and provide the Commission with 
the  necessary  information,  including  the  results  of  the  public  consultation  and  the 
analysis of the market. If the Authority finds that competition on that market is not 
effective, its opinion shall, following a public consultation, include a draft measure 
specifying the undertaking(s) it considers should be designated as having significant 
market power on that market and the appropriate obligations to be imposed. 

The  Authority  may,  where  appropriate,  consult  the  relevant  national  competition 
authorities before issuing its opinion to the Commission. 

The  Authority  shall  provide  the  Commission  upon  request  with  all  the  information 
available to carry out the tasks referred in paragraph 1. 

Article 7 
Definition and analysis of trans-national markets 

Upon  request,  the  Authority  shall  deliver  an  opinion  to  the  Commission  on  the 
appropriate definition of trans-national markets. 

Where  the  Commission  has  identified  a  trans-national  market  in  accordance  with 
Article  15(4)  of  Directive  2002/21/EC  (Framework  Directive),  the  Authority  shall 
undertake the market analysis in cooperation with the national regulatory authorities 
in  accordance  with  Article  16(5)  of  that  Directive  and  deliver  an  opinion  to  the 
Commission thereon.  

Where  the  Authority  concludes  that  the  relevant  trans-national  market  is  not 
effectively competitive, the opinion to the Commission shall include a draft measure 
specifying the undertaking(s) it considers should be designated as having significant 
market power on that market and the appropriate obligations to be imposed. 

Prior  to  delivering  its  opinion  under  paragraphs  1  or  3,  the  Authority  shall  consult 
with  national  regulatory  authorities  and  the  national  competition  authorities  and 
conduct a public consultation in accordance with Article 42 of this Regulation. 

EN 

26 

   EN 

 
5. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

The  Authority  shall  provide  the  Commission  upon  request  with  all  the  information 
available to carry out the tasks referred in paragraphs 1 to 4. 

Article 8 
Harmonisation of numbering and number portability 

The Authority shall be able to take decisions in relation to the issuance of rights of 
use  for  numbers  from  the  European  Telephone  Numbering  Space  (ETNS)  in 
accordance with Article 10 of Directive 2002/21/EC (Framework Directive). It shall 
also  be  responsible  for  the  administration  and  development  of  the  European 
Telephone Numbering Space (ETNS) on behalf of the Member States to which the 
prefix 3883 has been awarded.  

The  Authority  shall  undertake  tasks  associated  with  the  administration  and 
management  of  harmonised  numbering  ranges  in  accordance  with  Article  10(4)  of 
Directive 2002/21/EC (Framework Directive). 

The Authority shall work with the national regulatory authorities on issues related to 
fraud or the misuse of numbering resources within the Community, in particular for 
cross-border  services.  It  may  issue  an  opinion  on  action  that  could  be  taken  at 
Community  or  national  level  to  address  fraud  and  misuse  and  other  consumer 
concerns about numbering. 

The  Authority  shall,  at  the  request  of  the  Commission,  deliver  an  opinion  to  the 
Commission on the scope of, and technical parameters for, obligations regarding the 
porting  of  numbers  or  subscriber  identifiers  and  associated  information  between 
networks and the appropriateness of extending such obligations at Community level. 

Article 9 
Implementation of the European Emergency Number 112 

The Authority shall undertake an annual review of measures taken by Member States 
to inform citizens about the existence and use of the single European emergency call 
number  "112",  based  on  the  information  received  pursuant  to  Article  26(4)  of 
Directive 2002/22/EC (Universal Service Directive). The results of this review shall 
be included in the annual report referred to in Article 21(2). 

The  Authority  shall  at  the  request  of  the  Commission,  deliver  an  opinion  to  the 
Commission  on  the  technical  issues  related  to  the  implementation  of  the  European 
emergency call number 112 in accordance with Article 26 of Directive 2002/22/EC 
(Universal Service Directive). 

Prior  to  delivering  its  opinion  under  paragraph  2,  the  Authority  shall  consult  with 
competent national authorities and conduct a public consultation in accordance with 
Article 42. 

EN 

27 

   EN 

 
Article 10  
Advice on radio frequencies issues in relation to electronic communications 

1. 

2. 

3. 

4. 

Upon  request,  the  Authority  shall  provide  advice  to  the  Commission  and  conduct 
studies  and  reviews,  in  particular  on  technical  and  economic  aspects,  regarding  the 
use of radio frequencies for electronic communications in the Community. 

The activities referred to in paragraph 1 may be undertaken on matters relating to the 
implementation  of  Decision  676/2002/EC  (Radio  Spectrum  Decision)  and  shall  be 
without prejudice to the division of tasks under Article 4 of that Decision. 

Upon  request,  the  Authority  shall  provide  advice  to  the  Commission  regarding  the 
drawing  up  of  common  policy  objectives  referred  to  in  Article  6(3)  of  Decision 
676/2002/EC  (Radio  Spectrum  Decision),  when  these  fall  within  the  electronic 
communications sector. 

The  Authority  shall  publish  an  annual  report  on  prospective  frequencies 
developments in the electronic communications sector and policies in which it shall 
identify the potential needs and challenges. 

Article 11 
Harmonisation of conditions and procedures relating to general authorisations and rights of 
use  

1. 

2. 

The Authority shall, at the request of the Commission, provide the Commission with 
an opinion on the scope and content of any of the implementation measures provided 
for  in  Article  6a  of  Directive  2002/20/EC  (Authorisation  Directive).  This  may 
include  in  particular  the  Authority's  assessment  of  the  benefits  that  may  accrue  for 
the  single  market  in  electronic  communications  networks  and  services  from  the 
implementing  measures  adopted  by  the  Commission  pursuant  to  Article  6a  of 
Directive 2002/20/EC (Authorisation Directive) and the identification of the services 
with cross-Community potential which would benefit from those measures. 

Where  an  opinion  of  the  Authority  pursuant  to  paragraph  1  relates  to  the 
implementation of a common selection procedure for rights of use falling within the 
scope of Article 6b of Directive 2002/20/EC (Authorisation Directive), that opinion 
shall in particular:  

(a) 

identify  the  electronic  communications  services  whose  provision  on  a 
cross-border  basis  within  the  Community  would  benefit  from  the  use  of 
frequencies  or  numbers  the  rights  to  which  are  granted  by  means  of  a  single 
procedure and under a single set of conditions; 

(b) 

identify the numbers or numbering ranges that could be used for such services; 

(c) 

(d) 

assess the level of actual or potential demand within the Community for such 
services, and  

specify any limitation it considers appropriate on the number of rights of use to 
be  offered  under  the  common  selection  procedure  and  the  procedures  to  be 
followed for the  selection of the  undertakings to whom those  rights  are to be 

EN 

28 

   EN 

 
granted,  taking  due  account  where  applicable  of  the  principles  set  out  in 
Article 7 of Directive 2002/20/EC (Authorisation Directive). 

3. 

If the Commission so requests, the Authority shall explain or supplement any opinion 
issued pursuant to paragraph 1 within the time period specified in that request.  

Article 12 
Proposal for the selection of undertakings 

The Authority shall, in accordance with Article 6 b of  Directive 2002/20/EC  (Authorisation 
Directive): 

(a) 

(b) 

(c) 

receive  and  process  applications  from  undertakings  for  rights-of-use  of  radio 
frequencies and numbers and collect the administrative charges and fees imposed on 
undertakings pursuant to a common selection procedure; 

carry out the common selection procedure and propose the undertaking(s) to which 
individual rights of use may be granted in accordance with those provisions; 

deliver a report to the Commission detailing the applications received, describing its 
assessment  of  those  applications,  proposing  the  undertaking(s)  most  eligible  to  be 
granted  individual  rights  of  use  and  justifying  this  selection  by  reference  to  the 
selection criteria set out in the relevant implementing measure. 

Article 13 
Withdrawal of rights of use of radio frequencies and numbers issued under common 
procedures 

The Authority shall, at the request of the Commission, deliver an opinion to the Commission 
on  the  withdrawal  of  rights  of  use  issued  under  the  common  procedures  provided  for 
Article 6b of Directive 2002/20/EC (Authorisation Directive). 

This  opinion  shall  examine  whether  there  have  been  serious  and  repeated  breaches  of  the 
conditions attached to the rights of use. 

Article 14 
Network and information security  

In addition to the tasks referred to in Article 4(3)(b) and Article 19(4) and (5), the Authority 
shall  contribute  to  the  development  of  a  culture  of  network  and  information  security,  in 
particular by: 

(a) 

(b) 

facilitating  cooperation  between  the  Commission  and  the  Member  States  in  the 
development of common methodologies to prevent, address and respond to network 
and information security issues;  

advising the Commission on research in the area of network and information security 
as  well  as  on  the  effective  use  of  risk  prevention  technologies  and  promoting  risk 

EN 

29 

   EN 

 
assessment  activities,  interoperable  risk  management  solutions  and  studies  on 
prevention management solutions within public and private sector organisations and 

(c) 

contributing  to  Community  efforts  to  cooperate  with  third  countries  and,  where 
appropriate, with international organisations to promote a common global approach 
to network and information security issues. 

Article 15 
Own initiative 

The Authority may, on its own initiative, deliver an opinion to the Commission on the matters 
referred to in articles 4(2), 7(1), 8 (3), 10(1), 12, 14, 21 and 22. 

CHAPTER III 

COMPLEMENTARY TASKS OF THE AUTHORITY 

Article 16 
Collection of administrative charges for services provided by the Authority  

1. 

2. 

The  Commission  shall  set  the  administrative  charges  imposed  on  undertakings  for 
services  provided  by  the  Authority  in  accordance  with  the  procedure  referred  in 
Article  54(2)  and  on  the  basis  of  an  opinion  of  the  Authority.  The  Authority  shall 
collect these administrative charges. 

The administrative charges shall be imposed upon the individual undertakings in an 
objective,  transparent  and  proportionate  manner  which  minimises  additional 
administrative costs and attendant charges. 

3. 

The administrative charges referred to in paragraph 1 may cover: 

(a) 

the  administrative  costs  incurred  by  the  Authority  in  the  management  of  the 
selection procedure in accordance with Article 12;  

(b) 

the processing of appeals in accordance with Article 34; 

(c) 

the administrative costs incurred by the Authority in the administration of the 
European Telephone Numbering Space in accordance with Article 8. 

All charges shall be expressed and be payable in Euro. 

4. 

5. 

The amount of the administrative charges shall be fixed at such a level as to ensure 
that the revenue from these charges is in principle sufficient to cover the full cost of 
the services delivered. 

The Authority shall publish a yearly overview of its administrative costs and charges. 
In  the  light  of  any  difference  between  the  total  sum  of  the  charges  and  the  total 
administrative  costs,  it  shall  deliver  an  opinion  to  the  Commission  indicating 
appropriate adjustments to be made to charges. 

EN 

30 

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Article 17 
Collection and redistribution of usage fees for rights of use of radio frequencies and numbers 
and of administrative charges under a common selection procedure 

1. 

2. 

1. 

2. 

3. 

4. 

Where  usage  fees  for  rights  of  use  of  radio  frequencies  or  numbers  issued  under  a 
common selection procedure are imposed on undertakings in accordance with Article 
6b  of  Directive  2002/20/EC  (Authorisation  Directive),  the  Authority  shall  be 
responsible for collecting and redistributing such usage fees.  

Usage  fees  shall  be  redistributed,  upon  their  receipt  by  the  Authority,  among  the 
relevant Member States and the Authority in accordance with the time-limit and the 
ratio  to  be  set  by  the  Commission  pursuant  to  Article  6b  of  Directive  2002/20/EC 
(Authorisation Directive).  

If the time-limit and the ratio are not set up by the Commission, usage fees shall be 
redistributed on the basis of the population of each Member State required to issue 
rights-of-use in the last completed year prior to the launch of the selection procedure. 

The Authority shall be responsible for collecting and redistributing the administrative 
charges  imposed  following  a  common  selection  procedure  for  rights  of  use  for 
frequencies or numbers on the selected undertakings to cover the administrative costs 
of  national  regulatory  authorities  in  monitoring  compliance  with  the  common 
conditions. 

These  administrative  charges  referred  to  in  the  first  subparagraph  shall  be 
redistributed  upon  their  receipt  by  the  Authority  to  the  relevant  national  regulatory 
authorities  in  accordance  with  the  values  provided  by  the  national  regulatory 
authorities. 

Article 18 
Cross-border disputes 

If  the  Authority  receives  a  request  from  a  national  regulatory  authority  pursuant  to 
Article 21 of Directive 2002/21/EC (Framework Directive) for a recommendation as 
to the resolution of a dispute it shall inform all parties to the dispute and all national 
regulatory authorities concerned.  

The  Authority  shall  investigate  the  reasons  for  the  dispute  and  request  appropriate 
information from the parties and the national regulatory authorities concerned.  

The  Authority  shall  issue  its  recommendation  within  three  months  of  the  request 
except  in  exceptional  circumstances.  The  recommendation  shall  identify  any 
measures  that  the  Authority  considers  appropriate  to  be  taken  by  the  national 
regulatory authorities concerned in accordance with the provisions of the Framework 
Directive and/or the Specific Directives. 

The Authority may decline to issue a recommendation where it considers that other 
mechanisms  would  better  contribute  to  the  resolution  of  the  dispute  in  a  timely 
manner  in  accordance  with  the  provisions  of  Article  8  of  Directive  2002/21/EC 
(Framework  Directive).  In  such  cases  it  shall  inform  the  parties  and  the  national 
regulatory authorities concerned without delay. 

EN 

31 

   EN 

 
If after four months the dispute is not resolved, or if the parties have not had recourse 
to any other mechanism, the authority shall act in accordance with paragraphs 2 and 
3 at the request of any national regulatory authority. 

Article 19 
Exchange, dissemination and collection of information 

The Authority shall, taking account of the Community's electronic communications 
policy, promote the exchange of information both between the Member States, and 
between the Member States, national regulatory authorities and the Commission on 
the  situation  and  development  of  regulatory  activities  regarding  electronic 
communications networks and services, including network and information security.  

The  Authority  shall  encourage  the  exchange  of  information  and  promote  best 
regulatory practice and technical development within the Community and beyond, in 
particular by:  

(a) 

(b) 

(c) 

the 

undertaking  the  collection,  processing  and  publication  of  information  relating 
to 
technical  characteristics,  quality  and  pricing  of  electronic 
communications services, and relating to electronic communications markets in 
the Community,  

commissioning  or  conducting  studies  on  electronic  communications  networks 
and services and the regulation and protection thereof, and  

organising  or  promoting 
communications.  

training  on  all  matters  regarding  electronic 

The  Authority  shall  make  such  information  available  to  the  public  in  an  easily 
accessible form. 

The Authority shall collect appropriate information, in particular in accordance with 
Article 13a of Directive 2002/21/EC (Framework Directive), to analyse current and 
emerging  risks.  It  shall  in  particular,  analyse  at  European  level,  those  risks  which 
could  produce  an  impact  on  the  resilience  and  the  availability  of  electronic 
communications networks and on the authenticity, integrity and confidentiality of the 
information  accessed  and  transmitted  through  them,  and  provide  the  results  of  the 
analysis to the Member States and the Commission. 

The  Authority  shall  contribute  to  awareness  raising  and  the  availability  of  timely, 
objective  and  comprehensive  information,  including  on  network  and  information 
security  issues,  for  all  users  by,  inter  alia,  promoting  exchanges  of  current  best 
practices,  including  on  methods  of  alerting  users,  and  seeking  synergy  between 
public and private sector initiatives. 

1. 

2. 

3. 

4. 

5. 

Article 20 
Management of the spectrum information register and of the mobile roaming database 

1. 

A registry in the form of a common access point for the provision of information on 
the  use  of  spectrum  in  each  Member  State  shall  be  made  available  to  the  public  to 

EN 

32 

   EN 

 
ensure the harmonised availability of information on the use of radio frequencies in 
the Community. The information on the use of radio frequencies shall be provided by 
Member States on a regular basis and in accordance with a request to this effect from 
the  Authority.  The  Authority  shall  be  responsible  for  the  management  and 
publication of the registry. The registry shall include the information specified in the 
Annex  to  this  Regulation,  as  well  as  any  other  information  the  Authority  may 
consider  appropriate.  The  Commission  may  adopt  implementing  measures  to  adapt 
the Annex to technical or market developments. Those measures designed to amend 
non-essential  elements  of  this  Regulation  shall  be  adopted  in  accordance  with  the 
procedure referred to in Article 54(3). 

The Authority shall be responsible for the management and publication of a database 
on pricing of voice and data services for mobile customers when roaming within the 
Community including where appropriate, the specific costs related to roaming calls 
made  and  received  in  the  outermost  regions  of  the  Community.  It  shall  monitor 
developments in such prices and publish an annual report. 

Article 21 
Monitoring and reporting on the electronic communications sector 

The Authority shall monitor developments in the electronic communications market, 
and in particular the retail prices of products and services most commonly used  by 
consumers.  

to 

The  Authority  shall  publish  an  annual  report  on  developments  in  the  electronic 
communications  sector,  including  consumer  issues,  in  which  it  shall  identify 
the  single  market  for  electronic 
remaining  barriers 
communications.  The  report  shall  also  include  an  overview  and  analysis  of  the 
information on national appeal procedures provided by the Member States pursuant 
to Article 4(3) of Directive 2002/21/EC (Framework Directive), and of the extent to 
which  the  out-of-court  dispute  settlement  procedures  referred  to  in  Article  34  of 
Directive 2002/22/EC (Universal service Directive) are used in Member States.  

the  completion  of 

The Authority may deliver to the Commission, in conjunction with the publication of 
the  annual  report,  an  opinion  on  the  measures  that  could  be  taken  to  overcome  the 
problems identified in assessing the issues referred to in paragraph 1. 

The  Authority  shall  periodically  publish  a  report  on  the  interoperability  of  digital 
interactive  television  services  as  referred  to  in  Article  18  of  Directive  2002/21/EC 
(Framework Directive). 

Article 22 
Electronic Accessibility 

The  Authority  shall,  at  the  request  of  the  Commission  advise  the  Commission  and 
Member States on improving the interoperability of, access to, and use of electronic 
communications  services  and  terminal  equipment,  and  in  particular  cross-border 
interoperability  issues.  It  shall  establish  a  group  consisting  of  representatives  from 
Member  States,  associations  of  undertakings  in  the  electronic  communications 
industry, associations of end-users and associations representing disabled end-users. 

2. 

1. 

2. 

3. 

4. 

1. 

EN 

33 

   EN 

 
The  group  shall  also  look  at  the  particular  needs  of  disabled  end-users  and  the 
elderly.  

2. 

The  Authority  shall  publish  an  annual  report  on  the  measures  taken  to  improve 
accessibility to electronic communications services and equipment by disabled end-
users, based on information provided by the Member States and information received 
by  the  Authority  pursuant  to  Article  33(3)  of  Directive  2002/22/EC  (Universal 
Service  Directive).  The  report  shall  identify  measures  that  could  be  taken  at 
Community  or  at  national  level  to  improve  accessibility.  Where  appropriate,  the 
Authority  may  issue  recommendations  on  measures  that  could  be  taken  at  national 
level. 

Article 23 
Additional tasks  

The Authority may take on specific additional tasks at the request of the Commission. 

CHAPTER IV 

ORGANISATION OF THE AUTHORITY 

Article 24 
Bodies of the Authority 

The Authority shall comprise: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

1. 

an Administrative Board 

a Board of Regulators 

a Director  

a Chief Network Security Officer  

a Permanent Stakeholders' Group 

a Board of Appeal. 

Article 25 
Administrative Board 

The  Administrative  Board  shall  be  composed  of  twelve  members.  Six  shall  be 
appointed  by  the  Commission  and  six  by  the  Council.  The  members  of  the 
Administrative  Board  shall  be  appointed  in  such  a  way  as  to  secure  the  highest 
standards of competence and independence, and a broad range of relevant expertise. 
The term of office shall be five years, renewable once. 

EN 

34 

   EN 

 
2. 

3. 

4. 

5. 

1. 

2. 

3. 

4. 

5. 

The  Administrative  Board  shall  appoint  its  Chairperson  and  its  Vice-Chairperson 
from  among  its  members.  The  Vice-Chairperson  shall  automatically  replace  the 
Chairperson if the latter is not in a position to perform his/her duties. The terms of 
office of the Chairperson and of the Vice-Chairperson shall be two and a half years 
and shall be renewable. In any event, however, the term of office of the Chairperson 
and that of the Vice-Chairperson shall expire the moment they cease to be members 
of the Administrative Board. 

Meetings  of  the  Administrative  Board  shall  be  convened  by  its  Chairperson.  The 
Director  of  the  Authority  shall  participate  in  the  deliberations  unless  the 
Administrative  Board  decides  otherwise.  The  Administrative  Board  shall  meet  at 
least  twice  a  year  in  ordinary  session.  It  shall  also  meet  at  the  initiative  of  its 
Chairperson, at the request of the Commission or at the request of at least a third of 
its  members.  The  Administrative  Board  may  invite  any  person  with  potentially 
relevant opinions to attend its meetings in the capacity of an observer. The members 
of  the  Administrative  Board  may,  subject  to  the  rules  of  procedure,  be  assisted  by 
advisers  or  by  experts.  The  Administrative  Board's  secretarial  services  shall  be 
provided by the Authority. 

Decisions of the Administrative Board shall be adopted on the basis of a two-thirds 
majority of the members present.  

Each  member  shall  have  one  vote.  The  rules  of  procedure  shall  set  out  in  greater 
detail  the  arrangements  governing  voting,  especially  the  conditions  whereby  one 
member can act on behalf of another and also, where appropriate, the rules governing 
quorums. 

Article 26 
Tasks of the Administrative Board  

The  Administrative  Board  shall,  after  having  consulted  the  Board  of  Regulators, 
appoint the Director in accordance with Article 29(2). 

The  Administrative  Board  shall,  after  consulting  the  Director,  appoint  a  Chief 
Network Security Officer in accordance with Article 31(2). 

The Administrative Board shall appoint the members of the Board of Regulators in 
accordance with Article 27(1). 

The  Administrative  Board  shall  appoint  the  members  of  the  Board  of  Appeal  in 
accordance with Article 33(1). 

The  Administrative  Board  shall  adopt,  before  30  September  each  year,  after 
consulting  the  Commission  and  after  the  approval  of  the  Board  of  Regulators  in 
accordance with Article 28(3), the work programme of the Authority for the coming 
year  and  shall  transmit  it  to  the  European  Parliament,  the  Council  and  the 
Commission. The work programme shall be adopted without prejudice to the annual 
budgetary procedure. 

6. 

The  Administrative  Board  shall  exercise  its  budgetary  powers  in  accordance  with 
Articles 36 to 38.  

EN 

35 

   EN 

 
7. 

8. 

9. 

10. 

11. 

12. 

13. 

1. 

2. 

3. 

4. 

The  Administrative  Board  shall  decide,  after  having  obtained  the  agreement  of  the 
Commission,  whether  to  accept  any  legacies,  donations  or  grants  from  other 
Community sources. 

The Administrative Board shall exercise disciplinary authority over the Director and 
the Chief Network Security Officer. 

The  Administrative  Board  shall,  where  necessary,  draw  up  the  Authority's  staff 
policy pursuant to Article 49(2). 

The Administrative Board shall adopt the special provisions on right of access to the 
documents of the Authority, in accordance with Article 47. 

The  Administrative  Board  shall  adopt  the  annual  report  on  the  activities  of  the 
Authority  and  shall  transmit  it  to  the  European  Parliament,  the  Council,  the 
Commission,  the  European  and  Social  Committee  and  the  Court  of  Auditors  by  15 
June  at  the  latest.  As  provided  for  in  Article  28(4),  this  report  shall  contain  an 
independent section approved by the Board of Regulators concerning the regulatory 
activities of the Authority during the year considered. 

The Administrative Board shall adopt its rules of procedure. 

The  Administrative  Board  shall  deliver  an  opinion  to  the  Commission  on  the 
administrative charges which the Authority may levy from undertakings in carrying 
out its tasks as referred to in Article 16. 

Article 27 
The Board of Regulators 

The Board of Regulators shall be composed of one member per Member State who 
shall be the Head of the independent national regulatory authority with responsibility 
for  day-to-day  application  of  the  regulatory  framework  in  the  Member  State,  the 
Director  and  one  non-voting  representative  of  the  Commission.  The  national 
regulatory authorities shall nominate one alternate per Member State. 

The Director shall be the Chairperson of the Board of Regulators.  

The  Board  of  Regulators  shall  elect  a  Vice-Chairperson  from  among  its  members. 
The Vice-Chairperson shall replace the Chairperson if the latter is not in a position to 
perform  his  or  her  duties.  The  term  of  office  of  the  Vice-Chairperson  shall  be  two 
and a half years and shall be renewable. In any event, however, the term of office of 
the  Vice-chairperson  shall  expire  the  moment  he/she  ceases  to  be  members  of  the 
Board of Regulators.  

The Board of Regulators shall act by a simple majority of its members. Each member 
or  alternate  other  than  the  Director  and  the  representative  of  the  Commission  shall 
have one vote. 

5. 

The Board of Regulators shall adopt its rules of procedure.  

EN 

36 

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6. 

When  carrying  out  the  tasks  conferred  upon  it  by  this  Regulation,  the  Board  of 
Regulators  shall  act  independently  and  shall not  seek  or  take  instructions  from  any 
government of a Member State or from any public or private interest. 

7. 

The Board of Regulators’ secretarial services shall be provided by the Authority. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

Article 28 
Tasks of the Board of Regulators 

The Board of Regulators shall provide an opinion to the Director before the adoption 
of the opinions, recommendations and decisions referred to in Articles 4 to 23 within 
its field of competence. In addition, the Board of Regulators shall provide guidance 
to the Director in the execution of the Director's tasks. 

The Board of Regulators shall deliver an opinion on the candidate to be appointed as 
Director  in  accordance  with  Article  26(1)  and  Article  29(2).  The  Board  shall  reach 
this decision on the basis of a majority of three quarters of its members. The Director 
shall not participate in the preparation of, or vote on, such opinions. 

The  Board  of  Regulators  shall,  in  accordance  with  Article  26(5)  and  Article  30(4) 
and  in  line  with  the  draft  budget  established  according  to  Article  37  approve  the 
work programme of the Authority for the coming year concerning its activities.  

The  Board  of  Regulators  shall  approve  the  independent  section  on  regulatory 
activities of the annual report provided for in Article 26(11) and Article 30(9). 

Article 29 
The Director 

The Authority shall be managed by its Director, who shall act independently in the 
performance of his/her functions. Without prejudice to the respective powers of the 
Commission,  the  Administrative  Board  and  the  Board  of  Regulators,  the  Director 
shall not seek or accept any instruction from any government or from any body. 

After  consulting  the  Board  of  Regulators,  the  Director  shall  be  appointed  by  the 
Administrative  Board,  on  the  basis  of  merit,  skills  and  experience  relevant  for 
electronic  communications  networks  and  services,  from  a  list  of  at  least  two 
candidates proposed by the Commission. Before appointment, the candidate selected 
by  the  Administrative  Board  may  be  invited  to  make  a  statement  before  the 
competent  committee  of  the  European  Parliament  and  answer  questions  put  by  its 
members.  

The  Director's  term  of  office  shall  be  five  years.  In  the  course  of  the  nine  months 
preceding  the  end  of  this  period,  the  Commission  shall  undertake  an  evaluation.  In 
the evaluation, the Commission shall assess in particular :  

(a) 

the performance of the Director;  

(b) 

the Authority's duties and requirements in the coming years. 

EN 

37 

   EN 

 
4. 

5. 

6. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

After  consulting  the  Board  of  Regulators,  the  Administrative  Board,  acting  on  a 
proposal from the Commission, may extend the term of office of the Director once 
for not more than three years, taking into account the evaluation report and only in 
those cases where it can be justified by the duties and requirements of the Authority. 

The Administrative Board shall inform the European Parliament about its intention to 
extend the Director's term of office. Within a month before the extension of his/her 
term of office, the Director may be invited to make a statement before the competent 
committee of the Parliament and answer questions put before its members. 

If  the  term  of  office  is  not  extended,  the  Director  shall  remain  in  office  until  the 
appointment of his/her successor. 

The  Director  may  be  removed  from  office  only  upon  a  decision  by  the 
Administrative Board, after consulting the Board of Regulators. The Administrative 
Board  shall  reach  this  decision  on  the  basis  of  a  majority  of  three  quarters  of  its 
members. 

The  European  Parliament  and  the  Council  may  call  upon  the  Director  to  submit  a 
report on the performance of his duties. 

Article 30 
Tasks of the Director 

The  Director  shall  be  responsible  for  representing  the  Authority  and  shall  be  in 
charge of its management. 

The  Director  shall  prepare  the  work  of  the  Administrative  Board.  He/she  shall 
participate, without having the right to vote, in the work of the Administrative Board. 

The Director shall adopt the opinions, recommendations and decisions referred to in 
Articles 4 to 23, subject to the assent of the Board of Regulators.  

Each year the Director shall prepare a draft work programme of the Authority for the 
following  year,  and  submit  it  to  the  Board  of  Regulators  and  to  the  Commission 
before 30 June of that year.  

He/she  shall  present  the  work  programme  before  1  September  for  adoption  by  the 
Administrative Board. 

The  Director  shall  be  responsible  for  implementing  the  annual  work  programme  of 
the  Authority,  under  the  guidance  of  the  Board  of  Regulators  and  of  the  Chief 
Network Security Officer as appropriate, and under the administrative control of the 
Administrative Board. 

The  Director  shall  take  the  necessary  measures,  notably  the  adoption  of  internal 
administrative  instructions  and  the  publication  of  notices,  to  ensure  the  functioning 
of the Authority in accordance with this Regulation. 

The Director shall make an estimate of the revenue and expenditure of the Authority 
pursuant to Article 37 and shall implement the budget of the Authority pursuant to 
Article 38. 

EN 

38 

   EN 

 
8. 

9. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

4. 

Each  year  the  Director  shall  prepare  the  draft  annual  report  on  the  activities  of  the 
Authority with a section on the regulatory activities of the Authority and a section on 
financial and administrative matters. 

With  regard  to  the  staff  of  the  Authority,  the  Director  shall  exercise  the  powers 
provided for in Article 49(3). 

Article 31 
The Chief Network Security Officer 

The  Chief  Network  Security  Officer  shall  be  responsible  for  coordinating  the 
Authority's  tasks  relating  to  network  and  information  security.  The  Chief  Network 
Security  Officer  shall  work  under  the  responsibility  of,  and  report  to,  the  Director. 
He/she will prepare the draft annual work programme for these activities.  

The Chief Network Security Officer shall be appointed for a period of five years by 
the  Administrative  Board,  on  the  basis  of  merit,  skills  and  experience  relevant  for 
dealing  with  network  and  information  security  issues,  from  a  list  of  at  least  two 
candidates proposed by the Commission.  

The  Chief  Network  Security  Officer  may  be  removed  from  office  only  upon  a 
decision  by 
the  Director.  The 
Administrative  Board  shall  reach  this  decision  on  the  basis  of  a  majority  of  three 
quarters of its members. 

the  Administrative  Board,  after  consulting 

After  consulting  the  Director,  the  Administrative  Board,  acting  on  a  proposal  from 
the  Commission,  may  extend  the  term  of  office  of  the  Chief  Network  Security 
Officer  once  for  not  more  than  three  years  only  in  those  cases  where  it  can  be 
justified by the duties and requirements of the Authority. 

Article 32 
Permanent Stakeholders’ Group 

The Chief Network Security Officer shall establish a Permanent Stakeholders’ Group 
composed  of  experts  representing  the  relevant  stakeholders,  in  particular  from  the 
information  and  communications  technologies  industry,  consumer  groups  and 
academic experts in network and information security. He shall, in consultation with 
the  Director,  determine  the  procedures  regarding  in  particular  the  number,  the 
composition, the appointment of the members, and the operation of the Group. 

The  Group  shall  be  chaired  by  the  Chief  Network  Security  Officer.  The  term  of 
office of its members shall be two-and-a-half years. Members of the Group may not 
be members of the Administrative Board or the Board of Regulators. 

Representatives of the Commission shall be entitled to be present in the meetings and 
participate in the work of the Group. 

The  Group  may  advise  the  Chief  Network  Security  Officer  in  the  performance  of 
his/her duties under this Regulation, in drawing up a proposal for the relevant parts 

EN 

39 

   EN 

 
of  the  Authority's  work  programme,  as  well  as  in  ensuring  communication  with 
stakeholders on all issues related to the work programme. 

Article 33 
Board of Appeal 

The Board of Appeal shall be composed of six members and six alternates selected 
from  among  current  or  former  senior  staff  of  the  national  regulatory  authorities, 
competition  authorities  or  other  national  or  Community  institutions  with  relevant 
experience in the electronic communications sector. The Board of Appeal designates 
its Chairperson. 

The  members  of  the  Board  of  Appeal  shall  be  appointed  by  the  Administrative 
Board,  on  a  proposal  from  the  Commission,  following  a  call  for  expression  of 
interest, after consultation of the Board of Regulators. 

The term of office of the members of the Board of Appeal shall be five years. This 
term shall be renewable. The members of the Board of Appeal shall be independent 
in making their decisions. They shall not be bound by any instructions. They may not 
perform any other duties in the Authority, in its Administrative Board or in its Board 
of Regulators. A member of the Board of Appeal may not be removed during his/her 
term  of  office,  unless  he/she  has  been  found  guilty  of  serious  misconduct,  and  the 
Administrative  Board,  after consulting  the  Board  of  Regulators,  takes  a  decision  to 
this effect. 

Members of the Board of Appeal may not take part in any appeal proceedings if they 
have  any  personal  interest  therein,  or  if  they  have  previously  been  involved  as 
representatives of one of the parties to the proceedings, or if they participated in the 
decision under appeal. 

If, for one of the reasons mentioned in the first subparagraph or for any other reason, 
a member of a Board of Appeal considers that a fellow member should not take part 
in  any  appeal  proceedings,  the  member  shall  inform  the  Board  of  Appeal 
accordingly. A member of the Board of Appeal may be objected to by any party to 
the appeal proceedings on any of the grounds mentioned in the first subparagraph, or 
if  suspected  of  partiality.  An  objection  cannot  be  based  on  the  nationality  of 
members nor shall it be admissible  if, while  being  aware  of  a  reason for objecting, 
the party to the appeal proceedings has taken a procedural step. 

The Board of Appeal shall decide as to the action to be taken in the cases specified in 
paragraph 4 without the participation of the member concerned. For the purposes of 
taking that decision, the member concerned shall be replaced on the Board of Appeal 
by his alternate, unless the alternate finds himself in a similar situation. Should this 
be the case, the Chairperson shall designate a replacement from among the available 
alternates.  

1. 

2. 

3. 

4. 

5. 

EN 

40 

   EN 

 
Article 34 
Appeals 

1. 

2. 

3. 

4. 

5. 

6. 

The Board of Appeal shall be responsible for deciding on appeals against decisions 
or measures taken by the Authority in areas covered by Article 8(1).  

The  decisions  of  the  Board  of  Appeal  shall  be  adopted  on  the  basis  of  a  qualified 
majority  of  at  least  four  out  of  its  six  members.  The  Board  of  Appeal  shall  be 
convened when necessary. 

An  appeal  lodged  pursuant  to  paragraph  1  shall  not  have  suspensory  effect.  The 
Board of Appeal may, however, if it considers that circumstances so require, suspend 
the application of the contested decision.  

The appeal, together with the statement of grounds thereof, shall be filed in writing at 
the Authority within two months of the notification of the decision or measure to the 
undertaking concerned, or, in the absence thereof, of the day on which the Authority 
has made public its measure or decision. The Board of Appeal shall decide upon the 
appeal within two months after the appeal has been lodged.  

If  the  appeal  is  admissible,  the  Board  of  Appeal  shall  examine  whether  it  is  well 
founded. It shall invite the parties as often as necessary to the appeal proceedings to 
file  observations  on  notifications  issued  by  itself  or  on  communications  from  the 
other  parties  to  the  appeal  proceedings,  within  specified  time  limits.  Parties  to  the 
appeal proceedings shall be entitled to make an oral presentation.  

The Board of Appeal may, within the terms of this Article, exercise any power which 
lies within the competence of the Authority or it may remit the case to the competent 
body  of  the  Authority.  The  latter  shall  be  bound  by  the  decision  of  the  Board  of 
Appeal. 

7. 

The Board of Appeal shall adopt its rules of procedure.  

Article 35 
Actions before the Court of First Instance and the Court of Justice 

1. 

2. 

3. 

An action may be brought before the Court of First Instance or the Court of Justice in 
accordance with Article 230 of the Treaty, contesting a decision taken by the Board 
of  Appeal  or,  in  cases  where  no  right  of  appeal  lies  before  the  Board,  by  the 
Authority. 

Should  the  Authority  fail  to  take  a  decision,  proceedings  for  failure  to  act  may  be 
brought before the Court of First Instance or the Court of Justice in accordance with 
Article 232 of the Treaty. 

The  Authority  shall  be  required  to  take  the  necessary  measures  to  comply  with  the 
judgment of the Court of First Instance or the Court of Justice. 

EN 

41 

   EN 

 
CHAPTER V 

FINANCIAL REQUIREMENTS 

Article 36 
Budget of the Authority 

1. 

The revenues of the Authority shall consist of: 

(a) 

charges for services provided by the Authority; 

(b) 

(c) 

a proportion of usage fees paid by applicants in accordance with the provisions 
of Article 17; 

a subsidy from the Community, entered in the general budget of the European 
Communities (Commission Section); 

(d) 

any legacies, donations or grants as mentioned in Article 26(7). 

(e) 

any  voluntary  contribution  from  the  Member  States  or  from  their  regulatory 
authorities. 

The expenditure of the Authority shall cover staff, administrative, infrastructure and 
operational expenses. 

Revenue and expenditure shall be in balance. 

All  Authority  revenue  and  expenditure  shall  be  the  subject  of  forecasts  for  each 
financial year, coinciding with the calendar year, and shall be entered in its budget. 

Article 37 
Establishment of the budget 

By 15  February of  each  year at  the latest, the Director shall draw up  a preliminary 
draft  budget  covering  the  operational  expenditure  and  the  work  programme 
anticipated for the following financial year, and shall forward it to the Administrative 
Board together with a list of provisional posts. Each year the Administrative Board 
shall, on the basis of the draft prepared by the Director, make an estimate of revenue 
and  expenditure  of  the  Authority  for  the  following  financial  year.  This  estimate, 
including  a  draft  establishment  plan,  shall  be  transmitted  by  the  Administrative 
Board  to  the  Commission  by  31  March  at  the  latest.  Prior  to  the  adoption  of  the 
estimate,  the  draft  prepared  by  the  Director  shall  be  transmitted  to  the  Regulatory 
Board, which may deliver an opinion on the draft. 

2. 

3. 

4. 

1. 

2. 

The estimate shall be transmitted by the Commission to the European Parliament and 
to the Council (hereinafter referred to as the budgetary authority) together with  the 
preliminary draft general budget of the European Communities. 

EN 

42 

   EN 

 
3. 

4. 

5. 

6. 

1. 

2. 

3. 

4. 

On  the  basis  of  the  estimates,  the  Commission  shall  enter  in  the  preliminary  draft 
general budget of the European Communities the forecasts it considers necessary in 
respect  of  the  establishment  plan  and  the  amount  of  the  grant  to  be  charged  to  the 
general budget, in accordance with Article 272 of the Treaty.  

The budgetary authority shall adopt the establishment plan for the Authority.  

The budget of the Authority shall be drawn up by the Administrative Board. It shall 
become  final  after  the  final  adoption  of  the  general  budget  of  the  European 
Communities. Where necessary, it shall be adjusted accordingly.  

The Administrative Board shall, without delay, notify the budgetary authority of its 
intention to implement any project which may have significant financial implications 
for the funding of its budget, in particular any project relating to property such as the 
rental  or  purchase  of  buildings.  It  shall  inform  the  Commission  thereof.  If  either 
branch of the budget authority intends to issue an opinion, it shall within two weeks 
after  receipt  of  the  information  on  the  building  project  notify  the  Authority  of  its 
intention to issue such an opinion. Failing a reply, the Authority may proceed with 
the planned operation. 

Article 38 
Implementation and control of the budget 

The  Director  shall  act  as  authorising  officer  and  shall  implement  the  Authority's 
budget. 

By  1  March  at  the  latest  following  the  completion  of  each  financial  year,  the 
Authority's accounting officer shall forward to the Commission's accounting officer 
and  the  Court  of  Auditors  the  provisional  accounts  accompanied  by  the  report  on 
budgetary  and  financial  management  over  the  financial  year.  The  Authority 
accounting officer shall also send the report on budgetary and financial management 
to the European Parliament and the Council by 31 March of the following year at the 
latest.  The  Commission's  accounting  officer  shall  then  consolidate  the  provisional 
accounts of the institutions and decentralised bodies in accordance with Article 128 
of Council Regulation (EC, Euratom) No 1605/2002. 

By  31  March  at  the  latest  following  the  completion  of  each  financial  year,  the 
Commission's  accounting  officer  shall  forward  the  provisional  accounts  of  the 
Authority  accompanied  by  the  report  on  the  budgetary  and  financial  management 
over  the  financial  year  to  the  Court  of  Auditors.  The  report  on  budgetary  and 
financial management over the financial year shall also be forwarded to the European 
Parliament and the Council. 

After receiving the observations of the Court of Auditor's on the provisional accounts 
of  the  Authority,  in  accordance  with  Article  129  of  Council  Regulation  (EC, 
Euratom)  No  1605/2002,  the  Director,  acting  on  his/her  own  responsibility,  shall 
draw  up  the  final  accounts  of  the  Authority  and  transmit  them,  for  opinion,  to  the 
Administrative Board. 

5. 

The Administrative Board shall deliver an opinion on final accounts of the Authority. 

EN 

43 

   EN 

 
6. 

7. 

8. 

9. 

The Director shall transmit these final accounts, accompanied by the opinion of the 
Administrative Board, no later than 1 July following the completion of the financial 
year,  to  the  European  Parliament,  the  Council,  the  Commission  and  the  Court  of 
Auditors. 

The final accounts shall be published. 

The Director shall send the Court of Auditors a reply to the latter's observations by 
15  October  at  the  latest.  He/she  shall  also  send  this  reply  to  the  Administrative 
Board, the European Parliament and the Commission. 

The Director shall submit to the European Parliament, at the latter's request, and as 
provided  for  in  Article  146(3)  of  Regulation  (EC,  Euratom)  No  1605/2002,  any 
information  necessary  for  the  smooth  running  of  the  discharge  procedure  for  the 
financial year in question.  

10. 

The European Parliament following a recommendation from the Council acting by a 
qualified majority, shall, before 15 May of year N+2 grant a discharge to the Director 
for the implementation of the budget for the financial year N. 

Article 39 
Financial rules 

Financial  rules  applicable  to  the  Authority  shall  be  drawn  up  by  the  Administrative  Board 
after  consultation  with  the  Commission.  Those  rules  may  deviate  from  Commission 
Regulation (EC, Euratom) No 2343/2002 if the specific operational needs for the functioning 
of the Authority so require and only with the prior agreement of the Commission. 

Article 40 
Anti- fraud measures 

1. 

2. 

3. 

For the purpose of combating fraud, corruption and other illegal acts, the provisions 
of Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 
25  May  1999  concerning  investigations  conducted  by  the  European  Anti-Fraud 
Office (OLAF)34 shall apply without any restriction.  

The  Authority  shall  accede  to  the  Inter-institutional  Agreement  of  25  May  1999 
between  the  European  Parliament,  the  Council  of  the  European  Union  and  the 
Commission of the European Communities concerning internal investigations by the 
European  Anti-Fraud  Office  (OLAF)35
  and  shall  immediately  adopt  appropriate 
provisions for all staff of the Authority. 

The  funding  decisions  and  the  agreements  and  implementing  instruments  resulting 
from  them  shall  explicitly  stipulate  that  the  Court  of  Auditors  and  OLAF  may,  if 
need  be,  carry  out  on-the-spot  checks  among  the  beneficiaries  of  monies  disbursed 
by the Authority as well as on the staff responsible for allocating these monies. 

34 
35 

OJ L 136, 31.5.1999, p. 1. 
OJ L 136, 31.5.1999, p. 15. 

EN 

44 

   EN 

 
                                                 
CHAPTER VI 

GENERAL PROVISIONS 

Article 41 
Provision of information to the Authority 

1. 

2. 

Undertakings  providing  electronic  communications  networks  and  services  shall 
provide  all  the  information,  including  financial  information,  requested  by  the 
Authority in order to perform its tasks as set out in this Regulation. The undertakings 
shall provide that information promptly on request and to the timescales and level of 
detail  required  by  the  Authority.  The  Authority  shall  give  the  reasons  justifying  its 
request for information. 

National  regulatory  authorities  shall  provide  the  Authority  with  the  information 
necessary  for  it  to  carry  out  its  tasks  under  this  Regulation.  Where  the  information 
provided refers to information previously provided by undertakings at the request of 
the national regulatory authority, those undertakings shall be informed thereof. 

Article 42 
Consultation 

Except in cases falling within Article 20 or Article 21, the Authority shall, when it intends to 
take measures in accordance with the provisions described in this Regulation, consult where 
appropriate interested parties and give them the opportunity to comment on the draft measure 
within a reasonable period. The results of the consultation procedure shall be made publicly 
available by the Authority, except in the case of confidential information. 

Article 43 
Supervision, enforcement and penalties  

1. 

2. 

3. 

4. 

The  Commission  may  impose  financial  penalties  on  undertakings  if  they  fail  to 
provide  information  referred  to  in  Article  41.  Penalties  shall  be  effective, 
proportionate and dissuasive. 

The  national  regulatory  authorities  in  co-operation  with  the  Authority  shall  be 
responsible  for  verifying  compliance  by  undertakings  with  obligations  arising  from 
the provisions described in this Regulation. 

When penalties are imposed under this Article, the Authority shall publish the names 
of  the  undertakings  involved  and  the  amounts  of  and  reasons  for  the  financial 
penalties imposed. 

The Court of Justice shall have unlimited jurisdiction within the meaning of Article 
229  of  the  Treaty  over  the  review  of  final  decisions  whereby  a  penalty  is  imposed 
under this Article. 

EN 

45 

   EN 

 
Article 44 
Declaration of interests 

The Authority's staff, including the Director, the Chief Network Security Officer and officials 
seconded by Member States on a temporary basis, shall make a declaration of commitments 
and  a  declaration  of  interests  indicating  any  direct  or  indirect  interests,  which  might  be 
considered prejudicial to their independence. Such declarations shall be made in writing. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

4. 

Article 45 
Transparency 

The Authority shall carry out its activities with a high level of transparency. 

The  Authority  shall  ensure  that  the  public  and  any  interested  parties  are  given 
objective, reliable and easily accessible information, in particular with regard to the 
results  of  its  work,  where  appropriate.  It  shall  also  make  public  the  declarations  of 
interests  made  by  the  Director  and  by  officials  seconded  by  Member  States  on  a 
temporary basis, as well as the declarations of interest made by experts. 

The  Board  of  Regulators,  acting  on  a  proposal  from  the  Director,  may  authorise 
interested parties to observe the proceedings of some of the Authority's activities. 

The  Authority  shall  lay  down  in  its  internal  rules  of  procedure  the  practical 
arrangements  for  implementing  the  transparency  rules  referred  to  in  paragraphs  1 
and 2. 

Article 46 
Confidentiality 

The  Authority  shall  not  divulge  to  third  parties  information  that  it  processes  or 
receives for which confidential treatment has been requested. 

Members of the Authority's Boards, the Director, external experts, and members of 
the  staff  of  the  Authority  including  officials  seconded  by  Member  States  on  a 
temporary basis are subject to the requirements of confidentiality pursuant to Article 
287 of the Treaty, even after their duties have ceased. 

The  Authority  shall  lay  down  in  its  internal  rules  of  procedure  the  practical 
arrangements  for  implementing  the  confidentiality  rules  referred  to  in  paragraphs  1 
and 2. 

Without  prejudice  to  Article  47  the  Authority  shall  take  appropriate  measures,  in 
accordance  with  Decision  2001/844/EC,  ECSC,  Euratom36,  to  protect  information 
subject  to  the  requirement  of  confidentiality  to  which  it  has  access  or  which  is 
communicated  to  it  by  Member  States  or  national  regulatory  authorities.  Member 
States shall take equivalent measures in accordance with relevant national legislation. 
Due  account shall  be given to the gravity of the potential prejudice to the essential 

36 

OJ L 317, 3.12.2001, p. 1. 

EN 

46 

   EN 

 
                                                 
interests  of  the  Community  or  of  one  or more  of  its  Member  States.  Each  Member 
State and the Commission shall respect the relevant security classification given by 
the originator of a document.  

Article 47 
Access to documents 

Regulation (EC) No 1049/2001 of the European Parliament and of the Council shall 
apply to documents held by the Authority. 

The  Administrative  Board  shall  adopt  practical  measures  for  applying  Regulation 
(EC)  No  1049/2001  within  six  months  from  the  date  of  the  effective  start  of 
operations of the Authority.  

Decisions  taken  by  the  Authority  pursuant  to  Article  8  of  Regulation  (EC)  No 
1049/2001 may be the subject of a complaint to the Ombudsman or of proceedings 
before the Court of Justice in accordance with the conditions laid down in  Articles 
195 and 230 of the Treaty respectively. 

Article 48 
Legal status 

The Authority shall be a body of the Community with legal personality. 

In  each  of  the  Member  States  the  Authority  shall  enjoy  the  most  extensive  legal 
capacity  accorded to legal  persons under national law.  It may in particular, acquire 
and dispose of movable and immovable property and be a party to legal proceedings. 

The Authority shall be represented by its Director. 

The seat of the Authority shall be located in […]. Until its premises are ready, it will 
be hosted on Commission premises. 

Article 49 
Staff 

The Staff Regulations of Officials of the European Communities, the Conditions of 
employment  of  other  servants  of  the  European  Communities  and  the  rules  adopted 
jointly  by  the  European  Community  institutions  for  the  purpose  of  applying  these 
staff  regulations  and  conditions  of  employment  shall  apply  to  the  staff  of  the 
Authority, including the Director and the Chief Network Security Officer. 

The  Administrative  Board,  in  agreement  with  the  Commission,  shall  adopt  the 
necessary implementing measures, in accordance with the arrangements provided for 
in Article 110 of the Staff Regulations of officials of the European Communities. 

In  respect  of  its  staff,  the  Authority  shall  exercise  the  powers  conferred  on  the 
appointing  authority  by  the  Staff  Regulations  of  officials  of  the  European 

1. 

2. 

3. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

EN 

47 

   EN 

 
Communities and on the authority entitled to conclude contracts by the Conditions of 
Employment of other servants of the European Communities. 

4. 

The  Administrative  Board  may  adopt  provisions  to  allow  national  experts  from 
Member States to be employed on secondment at the Authority. 

Article 50 
Privileges and immunities 

The Protocol on Privileges and Immunities of the European Communities shall apply to the 
Authority and its staff. 

Article 51 
Liability of the Authority 

1. 

2. 

In  the  case  of  non-contractual  liability,  the  Authority  shall,  in  accordance  with  the 
general  principles  common  to  the  laws  of  the  Member  States,  make  good  any 
damage  caused  by  it  or  its  staff  in  the  performance  of  their  duties.  The  Court  of 
Justice shall have jurisdiction in any dispute over the remedying of such damage. 

The  personal  financial  and  disciplinary  liability  of  Authority  staff  towards  the 
Authority  shall  be  governed  by  the  relevant  provisions  applying  to  the  staff  of  the 
Authority. 

Article 52 
Protection of personal data 

When processing data relating to individuals, the Authority shall be subject to the provisions 
of Regulation (EC) No 45/2001. 

Article 53 
Participation of third countries 

The Authority shall be open to the participation by European countries which have concluded 
agreements  with  the  Community,  whereby  the  countries  concerned  have  adopted  and  are 
applying Community legislation in the field covered by this Regulation. In accordance with 
the relevant provisions of these agreements, arrangements shall be made which shall specify 
the  detailed  rules  for  participation  by  these  countries  in  the  work  of  the  Authority,  in 
particular  the  nature  and  extent  of  such  participation.  These  arrangements  shall  include,  in 
particular  provisions  on  financial  contributions  and  staff.  They  may  provide  for 
representation, without vote, on the Board of Regulators. 

Article 54 
Communications Committee 

1. 

In implementing the provisions of this Regulation, the Commission shall be assisted 
by  the  Communications  Committee,  set  up  by  Article  22  of  Directive  2002/21/EC 
(Framework Directive). 

EN 

48 

   EN 

 
2. 

3. 

Where  reference  is  made  to  this  paragraph,  Articles  3  and  7  of  Decision 
1999/468/EC shall apply, having regard to the provisions of Article 8 thereof. 

Where  reference  is  made  to  this  paragraph,  Article  5a(1)  to  (4),  and  Article  7  of 
Decision  1999/468/EC  shall  apply,  having  regard  to  the  provisions  of  Article  8 
thereof. 

Article 55 
Evaluation  

Within  five  years  from  the  effective  start  of  operations  and  every  five  years  thereafter,  the 
Commission  shall  publish  a  general  report  on  the  experience  acquired  as  a  result  of  the 
operation of the Authority and of the procedures laid down in this Regulation. The evaluation 
shall cover the results achieved by the Authority and its working methods, in relation with its 
objective, mandate and tasks defined in this Regulation and in its annual work programmes. 
The  evaluation  shall  take  into  account  the  views  of  stakeholders,  at  both  Community  and 
national  level.  The  report  and  any  accompanying  proposals  shall  be  forwarded  to  the 
European Parliament and to the Council. 

Article 56 
Transitional provisions 

1. 

2. 

The  Authority  shall,  on  14  March  2011,  assume  responsibility  for  all  activities 
undertaken by the European Network and Information Security Agency prior to that 
date and which fall within the scope of this Regulation. 

The ownership interest in any moveable property held by the European Network and 
Information  Security  Agency  at  the  date  referred  to  in  paragraph  1  above  shall  be 
transferred to the Authority with effect from that date. 

Article 57 
Entry into force 

This Regulation shall enter into force on [31 December 2009]. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

EN 

49 

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ANNEX 

INFORMATION ON RIGHTS OF USE TO BE INCLUDED IN THE REGISTRY 

(referred to in Article 20) 

Information  on  Rights  of  Use  may  be  limited  to  frequency  bands  that  are  used  for  the 
provision  of  electronic  communications  services  and  which  are  tradable  in  accordance  with 
Article  9(3)  of  Directive  2002/21/EC  (Framework  Directive)  or  are  granted  through 
competitive  or  comparative  selection  procedures  pursuant 
to  Directive  2002/20/EC 
(Authorisation Directive). 

For  relevant  frequency  bands  Member  States  shall  provide  the  following  information,  in 
accordance with the requirements of Directive 95/46/EC  of  the European  Parliament  and of 
the Council of 24 October 1995 on the protection of individuals with regard to the processing 
of personal data and on the free movement of such data37 and Community and national rules 
on business confidentiality: 

1. 

2. 

3. 

4. 

the identity of the radio frequency right holder; 

the expiry date of the right or the expected duration; 

the geographic extent of the right stating as a minimum whether the right is local (i.e. 
one station), regional or nation-wide; 

an indication of whether or not the right is tradable. 

37 

OJ L 281, 23.11.1995, p. 31. 

EN 

50 

   EN 

 
 
 
                                                 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL: 

PROPOSAL  FOR  A  REGULATION  OF  THE  EUROPEAN  PARLIAMENT 
AND OF THE COUNCIL ESTABLISHING THE EUROPEAN ELECTRONIC 
COMMUNICATIONS MARKET AUTHORITY 

2. 

ABM / ABB FRAMEWORK 

Policy area: Information Society 

Activity: Electronic Communications Policy 

3. 

BUDGET LINES 

3.1. 

Budget  lines  (operational  lines  and  related  technical  and  administrative 
assistance lines (ex- B..A lines)) including headings: 

New budget lines will be proposed for administrative and operational expenditure: 

09.02.04.01 EECMA Administrative Expenditure 

09.02.04.02 EECMA Operational Expenditure 

3.2. 

Duration of the action and of the financial impact: 

2010 - 2015 

3.3. 

Budgetary characteristics: 

Budget line 

Type of 
expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

09.02.04.01  Noncom

p. 

09.02.04.02  Noncom

p. 

Diff 

YES 

NO 

Diff 

YES 

NO 

NO 

NO 

No 1a 

No 1a 

EN 

51 

   EN 

 
4. 

SUMMARY OF RESOURCES 

4.1. 

Financial Resources 

4.1.1. 

Summary of commitment appropriations (CA) and payment appropriations (PA) 

Expenditure type 

Section 
no. 

Operational expenditure38 

Commitment 
Appropriations (CA) 

8.1. 

Payment  Appropriations 
(PA) 

Administrative expenditure 

a 

b 

Human 
associated 
(NDA) 

resources  and 
expenditure 

costs, 
Administrative 
human 
than 
other 
resources  and  associated 
costs 

Total 

8.2.4. 

d 

8.2.5. 

e 

EUR million (to 3 decimal places) 

2010 

2011 

2012 

2013 

Total 

4,570 

8,221 

10,590 

10,590 

33,971

4,570 

8,221 

10,590 

10,590 

33,971

3,509 

10,827 

12,410 

12,410 

39,156

2,085 

4,050 

4,500 

4,500 

15,135

5,594 

14,877 

16,910 

16,910 

54,291

Total indicative financial cost of intervention 

TOTAL  CA  including 
cost 
Human 
of 
Resources 

TOTAL  PA  including 
cost 
Human 
of 
Resources 

a+
c+
d+
e 

b+
c+
d+
e 

10,164 

23,098 

27,500 

27,500 

88,262

10,164 

23,098 

27,500 

27,500 

88,262

4.1.2.  Compatibility with Financial Programming 

(cid:133) 

(cid:59) 

Proposal is compatible with existing financial programming. 

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 
perspective. 

38 

Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 

EN 

52 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
(cid:133) 

Proposal  may  require  application  of  the  provisions  of  the  Inter-institutional 
Agreement39 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3.  Financial impact on Revenue 

(cid:59) 

(cid:133) 

Proposal has no financial implications on revenue 

Proposal has financial impact – the effect on revenue is as follows: 

Budget line 

Revenue 

EUR million (to one decimal place) 

Prior to
action 

Situation following action 

2009   2010  2011  2012  2013

a) Revenue in absolute terms 

b) Change in revenue 

 Δ 

- 

- 

- 

- 

- 

- 

- 

- 

4.2. 

Human Resources FTE (including officials, temporary and external staff) – see 
detail under point 8.2.1. 

Annual requirements 

2010 

2011 

2012 

2013 

Total  number  of  human 
resources 

38 

113 

135 

135

5. 

CHARACTERISTICS AND OBJECTIVES 

5.1. 

Need to be met in the short or long term 

The  Authority  shall,  acting  within  the  scope  of  the  Framework  Directive  and  the 
Specific  Directives,  contribute  to  the  better  functioning  of  the  internal  market  for 
electronic  communications  networks  and  services,  including  in  particular  the 
development  of  cross-Community  electronic  communications  and  a  high  and 
effective  level  of  network  and  information  security.  The  Authority  will  act  as  a 
centre of expertise for electronic communication networks and services at EU level, 
drawing upon the experience of the national regulatory authorities. It will take over 
the functions of the European Network Security Agency (ENISA). 

5.2. 

Added-value  of  Community  involvement  and  coherence  of  the  proposal  with 
other financial instruments and possible synergy 

Consistent  application  of  the  regulatory  framework  for  electronic  communications 
will improve competition and contribute to competitiveness. 

The development of trans-national services can be hampered by the need to comply 
with  different  national  conditions.  Community  level  procedures  will  reduce  this 
obstacle and also reduce the administrative burden for enterprises. 

39 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

53 

   EN 

 
 
 
 
 
 
 
 
                                                 
The integration of the functions currently allocated to ENISA in a bigger entity will 
create synergies with respect to administrative and horizontal tasks and increase the 
resources  available  for  operational  tasks  in  the  domain  of  network  and  information 
security. 

5.3. 

Objectives, expected results and related indicators of the proposal in the context 
of the ABM framework 

For  activities  related  to  the  definition  and  analysis  of  national  and  trans-national 
markets, an appropriate indicator is the number of relevant opinions submitted to the 
Commission. 

As regards the definition of conditions and procedures for the use of frequencies or 
numbering  resources,  the  number  of  such  procedures  and  the  subsequent  selection 
procedures will indicate the extent to which the expected result of a simplification for 
trans-national services has been achieved. 

For the other tasks of the Authority (cross-border disputes, frequencies information 
register,  information  exchange),  the  effectiveness  of  the  measures  will  be  directly 
visible through the use and performance of these services. 

5.4.  Method of Implementation (indicative) 

(cid:59)  Centralised Management 

(cid:133) 

directly by the Commission 

(cid:133) 

indirectly by delegation to: 

(cid:133) 

executive Agencies 

(cid:59) 

bodies set up by the Communities as referred to in Article 185 of 
the Financial Regulation 

(cid:133) 

national public-sector bodies/bodies with a public-service mission 

(cid:133) 

Shared or decentralised management 

(cid:133)  with Member states 

(cid:133)  with Third countries 

(cid:133) 

Joint management with international organisations (please specify) 

EN 

54 

   EN 

 
6. 

MONITORING AND EVALUATION 

6.1.  Monitoring system 

Each year, the work of the Authority will be monitored and evaluated in the annual 
general  report  (for  the  previous  year)  and  the  work  programme  (for  the  following 
year). These two documents are adopted by the Authority's Administrative Board and 
sent to the European Parliament, the Council, the Commission, the Court of Auditors 
and the Member States. 

6.2. 

Evaluation 

6.2.1.  Ex-ante evaluation 

The Commission's impact assessment accompanying this proposal covers the ex ante 
evaluation  concerning  the  needs  /  problems,  the  objectives,  the  policy  options 
(including the risks associated with them) and the economic and social impacts and 
monitoring  arrangements  associated  with  the  European  Electronic  Communications 
Authority.  Furthermore,  Annex  III  of  the  impact  assessment  provides  cost-benefit 
analysis for the Authority40.  

The  cost-benefit  analysis  found  that  under  a  conservative  scenario,  it  can  be 
estimated  that  in  the  policy  areas  where  the  Authority  would  be  active,  it  has  the 
potential  of  bringing  total  economic  benefits  exceeding  its  budgetary  costs  by  a 
factor  of  around  10-30  times  (i.e.  the  order  of  magnitude  of  the  benefits  would  be 
around € 250 – 800 million). The benefits can amount to between € 550 and € 1400 
million if the more optimistic scenarios for the growth of pan-European markets are 
realised. 

A major source of such benefit is the reduction in the regulatory risk which would be 
achieved through the contribution of the Authority. Even a marginal reduction in the 
regulatory  risk  (of  around  10%)  across  Europe,  will  be  reflected  in  lower  cost  of 
capital  for  the  industry.  In  addition,  the  Authority's  involvement  will  speed  up  the 
process  of  assigning  frequencies  for  pan-European  services;  if  implementation  of 
major  projects  of  this  type  can  be  brought  forward  by  just  one  year,  the  economic 
benefits can be in the range of several hundred million euros. 

There are other important qualitative considerations supporting the establishment of 
the  Authority  that  cannot  be  adequately  quantified  or  monetised  in  a  cost-benefit 
analysis. In the long run, enabling competition between different new technological 
platforms is likely to be one of most important economic benefits associated with the 
Authority.  

The  Authority  could  also  substantially  contribute  to  reduce  the  regulatory  risks  of 
R&D projects, which is likely to increase the tendency to invest in R&D and thereby 
contribute  to  bridge  the  gap  between  actual  and  socially  desirable  level  of 
investments in a market-efficient way.  

40 

SEC(2007) 1472. 

EN 

55 

   EN 

 
                                                 
Most  of  the  above  benefits  are  not  replicable  by  the  current  -  or  strengthened  - 
coordination between the Member States (that was analysed as an alternative option 
in the impact assessment) based on the loose co-ordination structure of the European 
Regulators  Group  (ERG).  ERG's  peer-review  without  any  veto  power  cannot  be 
considered equally credible mechanism to reduce the risk for regulatory error across 
Europe  or  to  decrease  perceived  market  uncertainty  related  to  regulatory  discretion 
factors.  

Therefore,  even  by  applying  conservative  scenarios  on  the  potential  benefits  and 
related costs, the establishment of the Authority is cost-effective and fully justifiable 
from the EU budgetary perspective.  

6.2.2.  Measures taken following an intermediate/ex-post evaluation (lessons learned from 

similar experiences in the past) 

The Commission conducted an intermediate evaluation of ENISA and published the 
report of this external evaluation and a Communication41 with its own appreciation 
of the results and the recommendations given by ENISA's Management Board. 

The  evaluation  recommended  extending  ENISA's  mandate  beyond  its  current 
duration of 2009. Regarding organisational matters, it was recommended to increase 
in particular the number of operational staff, so that a critical mass can be achieved. 

This  recommendation  can  be  realized  with  the  integration  of  ENISA's  tasks  into  a 
bigger  entity.  The  combined  entity  will  benefit  of  economies  of  scale  for 
administrative  tasks,  so  that  the  relative  share  of  resources  for  these  tasks  is 
considerably lower than in ENISA's current organisational set-up. 

Additional  synergies  can  be  created  through  the  combination  of  horizontal 
operational tasks, such as those related collection and dissemination of information, 
cooperation and networking, in a single organisational function serving the Authority 
as a whole. 

6.2.3.  Terms and frequency of future evaluation 

The Authority, in line with its founding Regulation will have to produce every year a 
general report on its activities for the previous year which will be forwarded to the 
Member  States,  the  European  Parliament,  the  Council  and  the  Commission.  This 
report will present all specific actions undertaken by the Authority and will provide 
indications for the evaluation of the actions undertaken under the proposed revision 
of the Regulation. 

An independent external evaluation of the implementation of the proposed regulation 
is  to  be  carried  out  within  five  years  from  the  effective  start  of  the  Authority' 
operations.  After  this  initial  evaluation  of  the  start-up  phase  the  activities  of  the 
Authorities will be evaluated at least every five years. 

41 

Communication On the evaluation of the European Network and Information Security Agency (ENISA) 
- COM(2007) 285, 1.6.2007. 

EN 

56 

   EN 

 
                                                 
7. 

ANTI-FRAUD MEASURES 

In order to combat fraud, corruption and other unlawful activities, the provisions of 
Regulation (EC) No 1073/1999 will apply without restriction to the Authority, which 
will  also  accede  to  the  Inter-Institutional  Agreement  of  25  May  1999  concerning 
internal  investigations  by  OLAF.  It  will  issue,  without  delay,  the  appropriate 
provisions to its staff. 

EN 

57 

   EN 

 
8. 

DETAILS OF RESOURCES 

It  is  estimated  that  the  Authority  will  expand  up  to  a  permanent  staff  of  134  FTE 
once fully established. This includes taking over the tasks and resources of ENISA in 
2011. The annual budget is estimated at 10 million Euros in the first year, rising to 
28 million Euros from year 3 onwards. 

8.1. 

Objectives of the proposal in terms of their financial cost 

Commitment appropriations in EUR million (to 3 decimal places) 

2010 

2011 

2012 

2013 

TOTAL 

OPERATIONAL OBJECTIVE 1: Strengthening the Internal market 

2,200 

3,025 

3,575 

3,575 

12,375 

Definition, 
Review, 
portability, 
numbering, 
disputes, 
network 
information security 

Analysis, 
number 
European 
cross-border 
and 

Sub-total Objective 1 

2,200 

3,025 

3,575 

3,575 

12,375 

OPERATIONAL OBJECTIVE 2: Harmonisation of Rights of Use 

Conditions  and  procedures 
for  rights  of  use,  Selection 
of 
undertakings, 
Administrative procedures 

1,100 

1,650 

2,475 

2,475 

7,700 

Sub-total Objective 2 

1,100 

1,650 

2,475 

2,475 

7,700 

OPERATIONAL OBJECTIVE 3: Dissemination of best practices and information 

1: 

Action 
Information 
Frequencies 
Roaming Database etc. 

Public 
Systems: 
Information, 

0,.280 

0,420 

0,525 

0,525 

1,750 

2: 
Action 
exchange, reports, etc 

Information 

0,990 

1,210 

1,595 

1,595 

5,390 

Sub-total Objective 3 

1,270 

1,630 

2,.120 

2,120 

7,140 

OPERATIONAL OBJECTIVE 4: Technical advice on Network and Information Security 

Technical 
advice 

analysis 

and 

Sub-total objective 4: 

0 

0 

1,916 

2,420 

2,420 

6,756 

1,916 

2,420 

2,420 

6,756 

TOTAL COST 

4,570 

8,221 

10,590 

10,590 

33,971 

The  operational  expenditure  will  be  covered  by  a  Community  subsidy  to  the  Authority's 
budget. 

EN 

58 

   EN 

 
 
8.2. 

Administrative Expenditure of the Authority 

The  administrative  expenditure  will  be  covered  from  the  budget  of  the  Authority, 
which will be financed by a Community subsidy to the Authority's budget. 

8.2.1.  Number and type of human resources 

The table shows the staff allocated to the Authority. In addition, one additional AD 
post is required for the Commission's IAS. 

Types of post 

Officials or temporary staff  

AD 

AST 

External Staff  

TOTAL 

Staff to be assigned to management of the action 
using existing and/or additional resources 
(number of posts/FTEs) 

2010 

2011 

2012 

2013 

12 

7 

18 

37 

43 

23 

46 

45 

24 

65 

45 

24 

65 

112 

134 

134 

8.2.2.  Description of tasks deriving from the action 

The allocation of staff to the tasks of the  Authority, when it is fully operational, is 
shown  in  the  table  below.  (The  table  does  not  include  the  additional  AD  post 
allocated to the Commission's Internal Audit Service.) 

AD  AST 

END 

Contractual   Total 

Administration 
and Management 

 Director 

Board  of  Regulators,  Liaison  with 
MS and Commission, Programming 

Administration and Support 

Total Adm. & Management 

Operations 

Market Analysis 

Harmonisation 

1 

3 

7 

11 

9 

5 

Network and Information Security 

14 

Information  and  Communication, 
Best practices 

Total Operations 

6 

34 

45 

Total 

1 

1 

6 

8 

4 

3 

6 

3 

16 

24 

- 

- 

- 

0 

6 

4 

10 

5 

25 

25 

1 

3 

12 

16 

6 

3 

10 

5 

24 

40 

3 

7 

25 

35 

25 

15 

40 

19 

99 

134 

EN 

59 

   EN 

 
 
 
 
 
 
 
8.2.3. 

Sources of human resources (statutory) 

(cid:59) 

(cid:133) 

(cid:59) 

(cid:133) 

(cid:133) 

44 Posts currently allocated to ENISA will be transferred to the Authority 
when ENISA is integrated into the Authority in March 2011. 

Posts pre-allocated within the APS/PDB exercise for year n 

Posts to be requested in the APS/PDB procedures  

One additional AD post will be requested in the Commission for the IAS. 

Posts  to  be  redeployed  using  existing  resources  within  the  managing  service 
(internal redeployment) 

Posts  required  for  year  n  although  not  foreseen  in  the  APS/PDB  exercise  for 
the year in question 

8.2.4.  Financial cost of human resources and associated costs  

EUR million (to 3 decimal places) 

Type of human resources 

Year n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Officials and temporary staff  

2,340 

7,839 

8,190 

8,190 

External  Staff  (END,  contract 
staff, etc.) 

cost 

Total 
of  Human 
Resources  and  associated 
costs  

1,169 

2,988 

4,220 

4,220 

3,509 

10,827 

12,410 

12,410 

The average annual costs are assumed to be EUR 117.000 for statutory staff, EUR 68.000 for 
ENDs and EUR 63.000 for other employees. 

The cost includes the staff of the Authority and the additional post in the IAS. 

EN 

60 

   EN 

 
 
8.2.5. Other administrative expenditure  

The table below shows a breakdown of the administrative expenditure, which will be covered 
by a Community subsidy to the Authority's budget.  

EUR million (to 3 decimal places).  

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

TOTAL 

Infrastructure 
expenses), 
communication, IT, etc. 

(Buildings 
equipment, 

and 
related 
consumables, 

1,100 

2,200 

2,450 

2,450 

8,200 

Missions and Meetings 

0,485 

0,750 

0,850 

0,850 

2,935 

Administrative  services  (translation,  studies, 
consulting, etc.) 

0,500 

1,100 

1,200 

1,200 

4,000 

Total Other Management Expenditure 

2,085 

4,050 

4,500 

4,500 

15,135 

Community contribution 

Article 15(2) of the Regulation envisages the possibility for the Authority to receive 
a share of the usage fees for rights of use for frequencies and numbers. 

The  distribution  of  fees  is  to  be  defined  in  a  separate  instrument  and  cannot  be 
determined  at  this  time.  For  the  calculation  of  the  Community  contribution  to  the 
Authority, possible revenues from this source are not taken into account. 

8.3. 

Administrative Expenditure of the Commission 

One additional AD post will be allocated to the Commission's Internal Audit Service. 

The other Commission tasks related to monitoring and management of the Authority 
will  not  require  additional  posts  and  expenditure  beyond  the  resources  already 
allocated  for  these  tasks  with  respect  to  ENISA  and  those  currently  used  for 
coordination with the ERG. The responsible DG may temporarily add additional staff 
or budget by redistribution of existing resources. 

EN 

61 

   EN