Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the second periodic review of the scope of universal service in electronic communications networks and services in accordance with Article 15 of Directive 2002/22/EC
Date: 2008-09-25
Institutions: European Commission
Subjects: competition law, consumer protection, electronics, technological change, telecommunications, transmission network, universal service

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 25.9.2008 
COM(2008) 572 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

on the second periodic review of the scope of universal service in electronic 
communications networks and services in accordance with Article 15 of Directive 
2002/22/EC 

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   EN 

 
 
 
  
 
 
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

on the second periodic review of the scope of universal service in electronic 
communications networks and services in accordance with Article 15 of Directive 
2002/22/EC 

1. 

PURPOSE OF THE COMMUNICATION 

This Communication concerns the second periodic review of the scope of universal service as 
required  by  Article  15  of  the  Universal  Service  Directive1  (the  Directive).  It  also  provides 
some  broad  reflections  on  the  role  of  universal  service  in  meeting  wider  challenges  at 
European  level  —  in  particular  ensuring  access  to  broadband  —  in  order  to  open  a  debate 
about possible future policy. 

2. 

REVIEW OF THE SCOPE OF UNIVERSAL SERVICE 

2.1. 

Introduction 

In  the  EU,  universal  service  in  electronic  communications  (e-communications),  as  currently 
defined, means ensuring that all who so request are provided with those services essential for 
participation  in  society  and  already  available  to  the  great  majority  of  citizens,  either  by  the 
market or in the case of market failure by public intervention. 

The  Directive  defines  universal  service  as  a  minimum  set  of  e-communications  services 
available to all end-users upon reasonable request at an affordable price and specified quality, 
independently of geographical location within a Member State. 

The Directive includes four specific elements in the scope of universal service2:  

•  access  at  a  fixed  location  for  making  and  receiving  local,  national  and  international 
telephone  calls  and  fax  communications,  and  data  communications  at  data  rates  that  are 
sufficient to permit functional internet access;  

•  availability  of  at  least  one  comprehensive  directory  and  directory  enquiry  service 

comprising all fixed and mobile subscribers who wish to be included;  

•  availability of public payphones; and 

•  specific measures ensuring access and affordability of publicly available telephone services 

to users with disabilities or special needs, and those on low incomes. 

1 

2 

EP  and  Council  Directive  2002/22/EC  on  universal  service  and  users’  rights  relating  to  electronic 
communications networks and services.  
Chapter II. 

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The  wording  "access  at  fixed  location"  refers  to  the  end-user's  primary  residence3  (where 
several  members  of  a  household  can  share  the  connection),  and  not  to  a  requirement  for 
operators to use fixed technology; i.e., there should be no constraints on the technical means - 
whether wired or wireless - by which the connection is provided. On the other hand, universal 
service does not cover personal mobility (access at any location). 

The  reference  to  data  communications  at  data  rates  that  are  sufficient  to  permit  functional 
internet  access  is  elaborated3  as  a  requirement  limited  to  a  single  narrowband  network 
connection4, which should be capable of supporting data communications at rates5 sufficient 
for access to online services such as those provided via the public internet. This must allow 
satisfactory internet access, with Member States able to require the connection to be brought 
up to the level enjoyed by the majority of subscribers.  

This flexible requirement for the functionality of internet access was in particular designed to 
allow  the  accession  countries  to  exploit  mobile/wireless  technologies  to  deliver  universal 
service to a higher proportion of the population3.  

Member States are required to find the most efficient means of guaranteeing universal service 
obligations  (USO),  including  giving  all  undertakings  an  opportunity  to  fulfil  them.  If  the 
market fails to deliver these services obligations may be imposed on undertakings to provide 
them  at  specified  conditions.  So  far,  sixteen  Member  States  have  designated  providers  of 
universal  service  on  the  basis  of  the  Directive,  while  Germany  and  Luxembourg  have  not 
done  so,  on  the  grounds  that  the  universal  service  is  already  provided  by  the  market6.  The 
remaining nine countries ensure universal service on the basis of transitional arrangements. 

A universal service fund may be established if the national regulatory authority concludes that 
a  designated  universal  service  provider  is  subject  to  an  unfair  burden.  The  related  net  costs 
can be financed either by using public funds under transparent conditions or by setting up a 
sector-specific fund, to which in principle all undertakings active in the market would have to 
contribute. At present, universal service funds have been activated in five Member States, but 
compensation is paid out only in France, Italy and Romania. 

Member States are free to mandate additional services extending beyond the minimum set of 
services set by the Directive, but any further financing associated with them must be borne by 
them (for example through general taxation) and not by specific market players. 

The Commission is required to review the scope of the universal service every three years in 
the light of technological, social and economic developments, taking into account in particular 
mobility  and  data  rates  in  the  light  of  prevailing  technologies  used  by  the  majority  of 
subscribers.  The  Directive7  establishes  certain  considerations  to  be  weighed  by  the 
Commission in deciding whether a service should be included in the scope, namely:  

3 
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6 
7 

Recital 8. 
I.e. this does not extend to the use of ISDN technology providing two or more connections capable of 
being used simultaneously. 
Recital  8  further  explains  that  since  the  data  rate  also  depends  on  the  capabilities  of  the  subscriber’s 
terminal  equipment,  it  is  not  appropriate  to  mandate  a  specific  speed  at  Community  level, 
notwithstanding which “an upper limit” of 56 kbits/s is mentioned. 
See further on implementation of the Directive the 13th Implementation Report COM(2008) 153. 
Article 15 and Annex V. 

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–  a minority of consumers would be excluded from society by the lack of availability or non-

use of specific services that are both available to and used by the majority, and  

–  inclusion  of  these  services  within  the  scope  would  convey  a  general  net  benefit  to  all 
consumers  in  cases  where  they  are  not  provided  to  the  public  under  normal  commercial 
circumstances. 

The first review of the scope of universal service in 2005-2006 concluded that there was no 
need  to  change  the  scope  of  the  USO,  in  particular  with  regard  to  broadband  and  mobile 
services. As regards the latter, it was found that competitive and open markets had resulted in 
widespread affordable access for consumers. As for broadband, the overall proportion of the 
EU  population  using  fixed  broadband  did  not  indicate  use  of  the  service  by  a  majority  of 
consumers, and broadband accordingly had not yet become necessary for normal participation 
in society such that lack of access implied social exclusion8. 

2.2.  Mobile communications 

The first review found that, on the basis of national mobile licence conditions, (2G)  mobile 
networks  in  the  EU-25  covered  at  least  95%  of  the  population.  This  also  holds  true  for  the 
current EU-27. 

Mobile usage has been growing strongly during the last few years: while an average of 81% 
of  the  EU-25  population  was  using  mobile  services  in  early  2004,  the  penetration  reached 
112% of the EU-27 population in October 2007. As the chart below illustrates, over the three-
year period from October 2004 to October 2007, mobile penetration per 100 inhabitants rose 
by over 27 percentage points. 

Figure 1. 

Mobile subscriber penetration in the EU 

Source: Commission services 

The overall mobile usage penetration level (per 100 inhabitants) translates into an average EU 
household  penetration  rate  of  83%  at  the  end  of  2007,  as  shown  in  Figure  2.  In  the  EU-15, 
83%  of  households  have  a  mobile  phone,  while  the  figure  is  82%  in  the  EU-10  (excluding 
Bulgaria and Romania) and 78% in the EU-12 (including Bulgaria and Romania).  

8 

COM(2005) 203 and COM(2006) 163. 

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Figure 2. 

Telephone access at home, % of EU households 

Source: E-communications household surveys9 

The  chart  also  shows  that  due  to  the  less  developed  fixed  telecom  infrastructure  in  several 
new Member States, overall household telephone access10 in the EU was 95% at the end of 
2007,  2  percentage  points  lower  following  enlargement  in  2004.  In  the  EU-15,  overall 
telephone access at the end of 2007 was at 97%, while the figure was 91% in the EU-10. 

Users  are  increasingly  switching  from  fixed  to  mobile  phones,  with  around  24%  of  EU-27 
households  only  using  mobile.  The  proportion  is  significantly  higher  in  the  new  Member 
States  (39%)  than  in  the  EU-15  (20%),  with  the  exception  of  Finland  (61%)  and  Portugal 
(48%). 

As discussed in the first review Communication, the nature of mobile technology provides the 
possibility  to  add  a  new  subscriber  to  the  mobile  network  at  a  marginal  cost.  Furthermore, 
mobile pre-paid packages allow low income consumers a basic connection to the network at 
low  entry  prices  and  greater  ability  to  control  expenditure  than  post-paid  subscriptions.  On 
average,  nearly  60%  of  mobile  subscribers  used  pre-paid  mobile  packages  in  2007,  against 
40% post-paid customers. Although affordability must be seen in the light of specific national 
conditions11,  it  can  be  noted  that  the  European  consumer  can  now,  on  average,  buy  a  low 
usage  basket  of  mobile  services  more  cheaply  (€13.69  monthly)  than  th e  cost  of  a  monthly 
rental of a fixed line (€14.90) 12.  

Conclusion:  This  latest  analysis  reaffirms  the  conclusion  in  the  first  review  that  the 
competitive provision of mobile communications in the EU has resulted in consumers already 
having  widespread  affordable  access  to  mobile  communications.  The  considerations  for 
including mobile communications within the scope of universal service (as set out in Annex V 
of the Directive) are therefore not fulfilled.  

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12 

See  the  latest,  special  Eurobarometer  survey  274  conducted  at  the  end  of  2007,  available 
at:http://ec.europa.eu/information_society/policy/ecomm/library/ext_studies/index_en.htm 
Households having at least one telephone access, fixed or mobile or both. 
Article 3(1) of the Directive. Affordability is further discussed in the 2005/2006 Communications and 
the associated documents SEC(2005) 660 and SEC( 2006) 445. 
The  low  usage  basket  refers  to  typical  low  usage  consumption  patterns  of  national  mobile  services: 
voice calls and SMSs. See COM(2008) 153. 

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2.3 

Broadband 

The  first  review  found  that  in  mid-2004,  fixed  broadband  access  networks  covered  around 
85% of the EU-15 population, while the lower penetration of fixed lines in the new Member 
States  indicated  that  broadband  was  available  to  a  considerably  smaller  proportion  of  their 
population. In October 2005, broadband take-up was 11.5% of the EU population. 

In late 2007, fixed DSL broadband networks were, on average, available to 93% of the EU-26 
population, with a few countries lagging behind (Figure 3).  

Figure 3. 

Fixed broadband network coverage in the EU as % of the population 

DSL rural and national coverage, December 2007

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

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UK EU26

Rural

National

BG: Data not availbale. RO: Coverage of cable modem networks

Source: IDATE, December 2007 

A  major  driver  for  broadband  development  is  competition  between  parallel  infrastructures 
(telecom  and  cable  networks)  combined  with  effective  ex  ante  access  regulation.  This  is 
reflected in the figures for broadband penetration, which show average fixed broadband usage 
penetration  per  100  inhabitants  in  the  EU  of  20%  in  January  2008,  while  the  rate  varies 
significantly across Member States, from 7.6% in Bulgaria to 35.6% in Denmark.  

Other  factors  such  as  access  to  PCs  and  cultural  and  linguistic  features  also  clearly  play  a 
considerable role in take-up of these services. As for personal computers, which are the most 
common  user  terminal  for  access  to  internet  and  broadband  services,  only  57%  of  EU-27 
households have a PC (the figure was 53% in 2003 and 33% in 1999).  

Mobile broadband may contribute positively to increasing broadband penetration figures, as it 
has developed significantly in a number of Member States and as wireless LAN technologies 
start to play a significant part in internet access13. The significant decline in access prices as 
regards  both  mobile  and  nomadic  wireless  technologies  and  rising  performance  and 

13 

Overall mobile broadband retail lines are at 15.5% in Slovakia, 15% in Ireland, 8.4% in Lithuania. 

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transmission  speeds  indicate  that  broadband  usage  will  be  rising  faster  than  the  figures  for 
fixed broadband access indicate. 

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Figure 4. 

Broadband usage penetration per 100 inhabitants in the EU 

EU Broadband penetration rate (January 2008)

40%

35%

30%

25%

20%

15%

10%

5%

0%

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EU27

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Source: 13th Implementation report 

In  the  period  2003  to  2007,  broadband  take-up  by  EU  households  tripled.  According  to  the 
latest  e-communications  household  survey,  an  average  of  36%  of  EU  households  now  have 
fixed  broadband  access14,  while  a  total  of  49%  of  households  use  the  internet,  either  at 
narrowband  or  broadband  speeds,  as  shown  in  the  chart  below.  This  indicates  that  although 
broadband adoption has not yet reached levels of coverage and take-up that would qualify it 
for  consideration  under  the  universal  service  framework,  it  is  approaching  these  thresholds 
rather quickly, whilst the number of narrowband connections is progressively decreasing 

Figure 5. 

Internet and broadband penetration at home, % of EU households 

Source: E-communications household surveys 

14 

See footnote 9. Note that according to the Eurostat data, 42% of EU households now have broadband 
(see http://epp.eurostat.ec.europa.eu). The reason for the difference between the findings of the Eurostat 
and the e-communications household survey is that the former does not measure the use of the internet 
among the population over 75 years old, which corresponds to 12% of the total population. 

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Conclusion: Coverage of broadband networks is now very high in most Member States, being 
available, on average, to 90% of the EU population. Use of the internet is now approaching 
the  level  of  a  service  used  by  the  majority,  with  49%  of  EU  households  using  the  internet, 
36%  of  which  are  on  broadband.  Although  broadband  is  not  yet  used  by  the  majority  of 
consumers  (the  first  of  two  considerations  identified  in  Annex  V  of  the  Directive15)  and  is 
therefore not encompassed by the USO as laid down and described by the present wording, 
take-up  is  approaching  the  threshold  of  use  by  a  majority  of  consumers.  Furthermore,  it  is 
reasonable to anticipate that, in a relatively short horizon of time, narrowband will no longer 
answer the requirement of being "sufficient to permit functional internet access" (as laid down 
in Article 4(2) of the Directive). Thus the situation does need to be kept under review. 

3. 

UNIVERSAL SERVICE IN A CHANGING ENVIRONMENT 

While, on the existing interpretation of the Directive, neither mobile nor broadband fall within 
its scope, it seems clear that the substitution of mobile for fixed voice telephony as well as the 
increased levels of take-up and importance of broadband in daily life raise questions about the 
universality  of  access  to  e-communications  services  for  the  future.  It  is  therefore  an 
appropriate time to begin a reflection on the concept of the universal service obligation as part 
of  an  overall  approach  to  high-speed  internet  for  all,  which  could  also  include  Community, 
national and regional/municipal support, public-private partnerships and other mechanisms.  

3.1. 

Concept and role of universal service in e-communications 

Prior  to  liberalisation  of  the  telecom  sector,  provision  of  service  was  State-led,  with  cross-
subsidisation  by  monopoly  undertakings  ensuring  the  availability  of  basic  services,  in 
particular  connection  to  the  fixed  network  and  local  calls.  Fixed  telephony  penetration  was 
virtually universal, fulfilling a role in providing social cohesion comparable to that played by 
local post offices and public libraries. 

In  the  wake  of  liberalisation,  universal  service  regulation  was  introduced  to  safeguard  the 
concept of reasonable access at an affordable price — in the light of national conditions — 
irrespective of income levels and geographic location.  

Since liberalisation and the introduction of competition, as shown convincingly in a series of 
Communications16 on the implementation of the regulatory framework for e-communications, 
consumers have benefited from lower prices and a wider choice of services, while there has 
been  relatively  little  overall  recourse  to  universal  service  funding.  The  role  of  universal 
service has been to act as a final safety-net so as to enable a minority of consumers to catch up 
with the majority who were already enjoying basic services. 

Competition  has  also  promoted  increasingly  affordable  access  to  all  sorts  of  innovative 
services  such  as  mobile  and  broadband.  For  example,  the  fixed  broadband  market  is 

15 

16 

The second consideration set out in Annex V refers to the general conditions of market failure which 
would  justify  public  intervention  i.e.  where  "the  availability  and  use  of  specific  services  conveying  a 
general  net  benefit  to  all  consumers  such  that  public  intervention  is  warranted  where  the  specific 
services are not provided to the public under normal commercial circumstances". 
See the latest, 13th Implementation Report, COM(2008) 153. 

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characterised by intensifying competition and continued investment leading to fast take-up (an 
average  of  52  000  new  lines  per  day  in  2007,  equivalent  to  a  20%  growth  rate,  to  achieve 
nearly 100 million fixed broadband access lines in the EU on 1 January 2008.  

However,  even  with  such  high  growth  rates,  it  has  to  be  recognised  that  there  will  be 
geographic areas where it is unlikely that the market will provide the service on a reasonable 
timescale. As the take-up of broadband internet access spreads and as more and more social 
and  economic  transactions  shift  to  on-line  delivery,  there  will  come  a  time  when  “info-
exclusion” becomes a significant issue. 

It  is  in  recognition  of  this  problem  that  bridging  the  digital  divide  has  been  embedded  as  a 
policy  priority  in  the  i2010  initiative17.  Access  to  broadband  communications  is  not  just 
needed  for  competitiveness  and  economic  growth  but  is  becoming  a  prime  objective  of 
consumer welfare and digital inclusion. 

Furthermore, the Commission’s 2006 Communication “Bridging the Broadband Gap”18 gave 
a  strong  impulse  to  achieving  broadband  by  mobilising  both  EU-level  policies  such  as 
spectrum policy, cohesion funding and State aid rules as well as regional and local initiatives 
based on public-private partnerships. 

In  the  context  of  reporting  on  the  Renewed  Lisbon  Strategy,  the  Commission  called  on 
Member  States  to  draw  up  national  broadband  strategies  and  set  national  targets  for  high-
speed internet usage19. These national broadband strategies and the i2010 initiative have, so 
far, provided an overall framework to widen Member State action in bringing the Information 
Society  to  the  widest  possible  range  of  citizens.  As  broadband  becomes  an  essential  tool  of 
everyday life, we are confronted with the question of how to implement a true “broadband for 
all” policy and what the role of universal service policies might be in meeting this challenge.  

3.2. 

Reflections for the future 

The  widening  debate  concerning  the  basic  services  that,  over  time,  should  be  available  to 
enable citizens to participate in society increasingly encompasses the question of whether and 
how  universal  service  could  play  a  role  in  meeting  these  objectives  within  the  general 
framework of promoting open and competitive e-communications markets. 

Contributions to the consultations for the general telecoms regulatory review20 have raised a 
number of questions concerning the appropriate place of the universal service mechanism, as 
part of a systematic and realisable “broadband for all” policy.  

Broadband enhances active participation in society: e-health, e-learning, e-government and e-
business  services  are  increasingly  being  used  by  citizens.  This  has  resulted  in  more  active 
economic  and  social  participation  in  society,  providing  better  possibilities  to  find 
employment, do business and study, irrespective of location.  

17 
18 
19 
20 

COM(2005) 229. 
COM(2006) 129. 
See COM(2007) 803. 
The contributions to the public consultation on Communication COM(2005) 203 and those received in 
the context of the reform of the EU regulatory framework in 2006/07 acknowledged the need for a more 
fundamental reflection on universal service.  

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The main question is therefore whether universal service at EU level is an appropriate tool to 
advance broadband development and, if so, when and how it should be invoked, or whether 
other EU policy instruments - and, in such case, which ones - would be more efficient. This 
question goes beyond the issue of the scope of the universal service. 

The Commission considers it of the greatest importance that, within the EU, key services such 
as  e-communications  are  widely  available  to  citizens  and  businesses,  independently  of  their 
geographical  location,  and  at  an  affordable  price  and  specified  quality.  The  Commission 
would therefore like to launch a broad public debate around the following questions: 

1. 

To  what  extend  can  today’s  competitive  e-communications  markets  be  considered 
sufficient to provide universal access, taking into account: 

–  that  the  trend  towards  a  substitution  of  fixed  telephony  by  mobile  voice 
communications,  which  have  very  wide  coverage  and  high  affordability,  could 
indicate that a USO limited to access at a fixed location is becoming less relevant; 
and 

–  that broadband is being delivered to a rapidly rising proportion of the population 
through  market  forces,  indicating  that  broadband,  including  mobile  broadband, 
might well follow the same track as mobile telephony in becoming near-universal 
through market forces over the medium term? 

Current trends suggest that satisfactory access to the internet is seen progressively as 
meaning,  for  increasing  numbers  of  subscribers,  access  beyond  a  narrowband 
connection.  Under  these  circumstances,  the  question  arises  as  to  whether  the 
interpretation of the existing USO (in particular, Recital 8 in conjunction with Article 
4(2) of the Directive) needs to be reconsidered, in particular, concerning the meaning 
given  to  data  communications  at  data  rates  sufficient  to  permit  functional  internet 
access?  It  would  also  need  to  be  considered  whether  a  more  dynamic  and 
technologically  neutral  interpretation  of  this  wording  should  require  an  amendment 
to the existing legislation.  

If broadband is seen increasingly as a universal service, would it be more appropriate 
to formally amend the scope of the USO to include a reference to broadband as such? 
Is the concept of functional internet access still a valid one? 

Is  the  current  definition  of  the  USO  sufficiently  flexible  or,  conversely,  too 
prescriptive,  taking  into  account  different  levels  of  market  development  across  the 
EU-27?  

2. 

3. 

4. 

These  questions  need  to  be  seen  against  the  background  of  the  following  more  detailed 
questions, including about the role and implementation of the USO in an overall “broadband 
for all” policy. 

(a) 

How might an extended USO fit into an overall policy to ensure that “broadband for 
all” becomes a reality, including a regulatory framework stimulating the competitive 
provision  of  widely  available  services,  the  application  of  structural  funds,  regional 
open  access  fibre  network  schemes  and  demand  stimulation  measures  such  as 
subsidies for purchase of subscriber equipment, training or awareness raising? What 
are  the  advantages  and  disadvantages  of  using  the  universal  service  mechanism  as 

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(b) 

(c) 

opposed to other policy instruments for implementing a “broadband for all” policy? 
What  would  be  the  likely  impact  on  stakeholders,  social  and  territorial  inclusion, 
employment, competition, investment, innovation and competitiveness? 

How  would  the  possible  extension  of  the  scope  of  the  USO  to  broadband,  a  more 
dynamic  interpretation  of  functional  internet  access  or  a  move  to  a  less  uniform 
concept of USO be accommodated alongside the need to ensure a coherent approach 
within the internal market, avoiding distortions of competition? 

Is it appropriate to indicate a particular speed or range of speeds that would be taken 
to  represent  “broadband”  or  an  updated  notion  of  functional  internet  access?  To 
ensure quality of service and for today’s active participation in society, should such a 
speed be set at between 1 and 2 Mb/s? 

(d) 

Common European criteria and implementing arrangements to minimise distortions 
of competition, such as:  

–  What level of “majority” take-up would be needed before a USO can be invoked? 

–  What should be the mechanism for defining, in appropriate circumstances, which 
groups of consumers or geographic zones would be considered for coverage by a 
USO?  

–  What  would  be  the  appropriate  approach  to  ensure  access  to  and  usability  of  e-
communications  for  vulnerable  persons  (such  as  disabled  and  older  users)  that 
would be comparable to the levels enjoyed by the majority of users? 

–  Is there still a need to keep the provisions of directories and public pay telephones 
within  the  USO?  As  for  the  latter,  is  there  a  need  to  extend  USO  to  "other  e-
communications access points" (for example WiFi hotspots)?  

–  How  should  undertakings  that  are  subject  to  universal  service  obligations  be 

selected and what should be the scope of obligations? 

–  What  should  be  the  institutional  structure  for  implementing  universal  service 

actions, including the role of regulators? 

–  What  would  be  the  likely  costs  of  universal  service  obligations  and  who  should 
pay  for  them?  What  should  be  the  size  and  limits  of  funding  and  compensation 
schemes,  the  relationship  between  funding  sources  such  as  general  taxation  and 
universal  service  funds,  and  how  would  the  consistency  with  State  aid  rules  be 
ensured? 

3.3. 

Conclusions 

This Communication sets out some reflections for the future role of universal service in the 
provision of e-communications services. It raises the question whether the concept and scope 
of universal service at EU level should be changed and if so, whether universal service is an 
appropriate  tool  to  advance  broadband  development,  or  whether  this  should  be  left  to  other 
EU policy instruments or to national measures. It provides the basis  for a discussion on the 
range of relevant issues in order to open a substantial European debate that would allow all 
stakeholders to express their views and discuss alternative approaches, in the course of 2009.  

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On the basis of this debate, the Commission will issue a Communication in the second half of 
2009, summarising the debate. It could follow this up in 2010 with concrete proposals if they 
are needed to update the Universal Service Directive. 

The  Commission  invites  the  European  Parliament,  the  Council,  the  Economic  and  Social 
Committee and the Committee of the Regions to use this Communication as a basis for further 
discussion. 

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