Source: EURLEX
Language: en
Format: md

**COMMISSION OF THE EUROPEAN COMMUNITIES**

Brussels, 31.05.1995
COM(95) 224 final

95/0124 (COD)

_**TOWARDS THE INFORMATION SOCIETY**_

COMMUNICATION FROM THE COMMISSION

TO THE COUNCIL, THE EUROPEAN PARLIAMENT,

THE ECONOMIC AND SOCIAL COMMITTEE

AND THE COMMITTEE OF THE REGIONS

**on** a

**Methodology for**

**the implementation of information society**

**applications**

Proposal for a

EUROPEAN PARLIAMENT AND COUNCIL DECISION

**on a series of guidelines for trans-European telecommunications**

**networks**

**(presented by the Commission)**

_The following Communication presents_ _an_ _approach and measures to stimulate the_
_development of the Information Society in Europe._

_It is composed of two documents:_

_The first_ _document_ _describes the ways in which the Community can make the most_
_efficient use of its resources to stimulate the deployment of Information Society_
_applications_

_The second_ _document_ _is a proposal for a decision of the European Parliament_ _and_ _the_
_Council concerning a series of guidelines for trans-European telecommunications_
_networks in accordance with Title XII of the Treaty._

_These two documents are complementary. Whereas the first document presents a_
_methodology for applications, the second presents an instrument for implementing that_
_methodology, using the_ _framework_ _of the trans-European telecommunications networks._

_**4**_ **CL**

**PARTI**

COMMUNICATION FRQM THE. Ç,QMMI$gIQN

TO THE COUNCIL, THE EUROPEAN PARLIAMENT,

THE ECONOMIC AND SOCIAL COMMITTEE

AND THE COMMITTEE OF THE REGIONS

**on a**

**Methodology for**
**the implementation of information society**

**applications**

**ft.**

A METHODOLOGY FOR THE IMPLEMENTATION OF

INFORMATION SOCIETY APPLICATIONS [1 ]

The joint Council of Industry and Telecommunication Ministers of 28 September 1994
called upon the Commission to submit a document setting out its proposed methodology
for coordinating action to develop new services and new applications, in particular in the
context of the RTD framework programme and the trans-European networks programme.
This document is submitted in response to that request.

**The following methodological framework aims to optimise the use of Community**
**instruments and** **financial** **resources. This general objective will be met by raising**
**awareness of potential private and public partnerships, improving the access to**
**possible support and ensuring synergy between all existing Community instruments**
**and financial resources.**

**Overview**

The convergence of the information and telecommunication technologies and the related
industries as well as the evolving regulatory environment which is leading to liberalisation
of the telecommunication sector are creating opportunities for the emergence of new
networks, applications and services using information as a resource. In particular, the
rapid liberalisation of local infrastructures will encourage the take-off of experimental
projects. Market mechanisms have been recognised as the driving forces for the advent of
this information era. Indeed, it is primarily up to the private sector to take the necessary
initiatives for the development of information and communication infrastructures, in
particular in the area of financing.

The European Council nevertheless considered that the Community and the Member
States, besides their responsibilities in the field of competition and in the implementation
of a new regulatory framework, have an important role to play in supporting this
development by giving a strong political impetus and stimulating if necessary the
implementation of application projects.

In most areas, the commercial viability of the new services and applications is sufficiently
attractive to render public action unnecessary or to restrict it to a minimum to cover, for
example, part of the risks involved in the development of new technologies. In certain
application fields where, despite evident socio-economic benefits, the prospects for
commercial viability are judged by private investors to be uncertain or long term, catalytic
actions can be envisaged under the umbrella of public authorities, in particular in areas of

1 In this Communication, the term "application" refers to all aspects of a particular use of information
and communication technologies. It docs not refer to information content.

collective interest. Lack of immediate commercial viability for certain applications is also
partly due to the innovative character of the applications, requiring rapid integration of
new technologies and organisational adaptation.

**The Community, in conformity with the principle of subsidiarity, can play a**
**catalytic role by helping generate the critical mass that will attract private investors,**
**thus allowing markets to take off more rapidly.**

Delays in investing in information infrastructures will have negative impacts **on** the socioeconomic development of the Community, growth and employment The creation of **a**
wide range of business opportunities in new growth areas (e.g. multimedia) of the
economy depends on the availability of new integrated information and communications
systems.

The services and applications carried by these systems in all sectors of the economy are
likely to give rise to and support new economic and social activities. These new activities
will boost job creation, in particular in SMEs. They will also contribute to improving
social and regional cohesion.

**THE ROLE OF THE UNION**

**The Union can help stimulate the launch of project initiatives and, in certain cases,**
**can support the implementation of these projects by making a financial**
**contribution.**

**1.** **The Stimulation of Project Initiatives**

In conjunction with Member State actions, the Union can help stimulate the launch of
project initiatives involving the development or supply of Information Society applications
and services

To advise the Commission in these activities, two new advisory structures have been
created, the Information Society Forum, which brings together all the actors concerned,
and the High Level Social Experts Groups whose members will examine the social and
societal aspects. In addition, a specialised Task Force within the Commission has been set
up to examine ways in which to develop European educational multimedia software.

These stimulation activities will aim to satisfy the needs of actors from different sectors
who may have an interest in supplying or using services and applications. These actors,
both suppliers and users, include industry, network operators, service providers, content

industries, financial institutions, SMEs, national administrations, regional and city
authorities. Particular attention will be paid to the needs of all citizens.

**In this context the Union can fulfill three main roles:**

**•** **An Information and awareness role, notably:**

    - in maintaining an updated inventory of projects that are planned or underway
at national, European and international level (this task is one of the 11 projects
identified by the G7), and ensuring they are carried out;

    - on existing technologies, and the ways to access them, in particular the
technologies developed in the framework of the RTD programmes managed at
Union level;

    - on the regulatory environment and its evolution.

- **A Role of Brokerage:**

    - in bringing together actors from different sectors who may have a common
interest in certain initiatives;

    - in encouraging, by means of such action, the formation of partnerships, in
particular between private and public actors.

**A Role of guidance towards the sources of financial support:**

    - when interested partners are in the process of organising themselves for the
realisation of a project, orient them towards the appropriate Commission services
which manage Community support instruments, so that the partners can evaluate
the nature and the potential of support available within the Union.

**The Information Society Project Office** **(ISPO)** **was created by the Commission in**
**December 1994 to provide a one-stop-shop interface to access such activities.**

**2.** **Community financial support for the realisation of projects**

The Community has at its disposal a certain number of financial intervention instruments,
which may be used, in addition to private or public resources, to create the critical mass of
investment necessary for the launch of a project.

These instruments, which must be used each according its own rules, are:

- the trans-European networks support mechanism

- the framework RTD programme

- the Structural Funds, and the Cohesion Fund.

- the European Investment Bank and the European Investment Fund.

- the programmes dedicated to education and training

Annex 1 describes these instruments in detail.

In the case where the commercial characteristics **of a** project are sufficiently attractive to
directly trigger a private initiative, Community intervention will not be necessary.

**Some projects, whilst having clear socio-economic benefits, may not be immediately**
**commercially viable. This is often the case for projects of collective interest. In such**
**instances, the Community has the** **scone** **to use the combination of these instruments**
**in a coordinated** **way,** **taking advantage of their complementarity and ensuring their**

**synergy.**

In order to respect both the competition rules which apply to the telecommunications
sector which is being progressively liberalised, and the specific needs of each of the
projects for which Community support is justified, **a number of principles** will have to be
applied in the management of any financial support given to a project:

a) The choice of the project should be made following **a demand-driven approach, and**
**use public calls for proposals procedures,** in order to give equal chances to all the
potential proposers. The amount of support requested will be a criteria for project
selection, taking into account the need to respect the Community's competition rules.

b) **Each instrument shall be used in accordance with its own rules:** and specificities
this means that **the type of support requirements of** **a** **project will be analysed in order**
**to apply the Community instruments which best satisfy these different needs.** For
instance, RTD support will address the need for supporting the eventual researchdevelopment and demonstration phase of a project, Structural Funds for the deployment
of the projects in certain regions, trans-European networks resources for feasibility
studies, interest rebates, loan guarantees, etc.

c) **A problem to be solved is the coordination over time of the availability of the**
**different financial supports.** To solve it in the case where access to several instruments
is governed by a call for proposals (as for RTD programmes and trans-European networks
projects), a coordination in the time of the calls can be managed.

The Commission will have to set up and operate a **coordination framework** to manage
these aspects. The management framework of **the Decision on trans-European**
**telecommunications networks guidelines,** the proposal of which is introduced in the
second document of this Communication, **can be one of these coordination**
**frameworks** **[2]** **.**

**3.** **Concluding remarks**

There will be cases where it will not be possible to support an initiative, either because of
lack of funds or because it lies outside the scope or the rules of the available instruments
Within a year the Commission will present to the European Parliament and to the Council
a report covering the progress of the initial actions, their impacts, and identifying
difficulties encountered, including the case where support could not be given.

Groups of Commissioners have been established to deal respectively vviih information society and
audiovisual, trans-European networks, and cohesion.

**ANNEX 1**

**THE COMMUNITY FINANCIAL INSTRUMENTS**

a) The trans-European networks support mechanism (Title XII)

This instrument is intended to support the development of transport, energy and
telecommunications networks provided for in Title XII, Article 129c, of the EC
Treaty. For the trans-European telecommunications networks the Commission has
earmarked an indicative amount of ECU 450 million for the period 1995-99, just
under ECU 300 million of which is to support projects of common interest set out
in the guidelines adopted by the Council. This support will be granted to projects
the potential economic benefit of which is established but the financial profitability
of which is uncertain or inadequate. It may take the form of joint financing of
feasibility studies, including preparatory studies, and other technical measures, and
interest-rate subsidies and contributions to loan guarantee premiums.

A proposal for a Regulation laying down the conditions for granting Community
support for trans-European network projects of common interest is being
negotiated at the Council and the European Parliament. The Council adopted a
common position on 31 March 1995. This Regulation also authorizes the granting
of direct subsidies in duly substantiated exceptional cases.

b) The fourth RTD framework programme

The Community's total contribution to the fourth framework programme at
present stands at ECU 13 161 million for the period 1994-98, of which
ECU 3 620 million for information and communication technologies, under the
following three headings: telematics applications (TELEMATICS applications
programme: ECU 902 million), advanced communications technologies (ACTS
programme: ECU 674 million) and information technologies (ESPRIT
programme: ECU 2 044 million). RTD projects in these three areas will help to
establish the Information Society as a result of their development and especially
their demonstration activities:

collective interest applications under the TELEMATICS applications
programme most of the funds of which are earmarked for demonstration
projects;

chiefly basic technology under the ACTS programme;

basic technologies, applications and industrial best practice under the
ESPRIT programme.

To this should be added the horizontal activities in the area of dissemination and
exploitation of research.

c) The Structural Funds

The Structural Funds [3] represent a considerable financing potential, [4] but they do
not contain any specific items, under the heading of telecommunications
programmes, to support the development of the Information Society. They are an
instrument of economic and social cohesion policy, an expression of
intra-Community solidarity, in particular between regions. In this connection,
Community assistance to the Objective 1 regions (those lagging behind in their
development) for which 70% of the aid is earmarked (some ECU 96 billion) comes
from three sources:

the Community Support Frameworks (CSFs) drawn up by the Member
States. On the basis of the CSFs already approved, the amount devoted to
telecommunications investments is estimated at about ECU 1.4 billion, or
1.3% of the Community aid. For most of the Member States with access to
the resources of the Structural Funds, the telecommunications sector is not
a priority in the allocation of Community aid;

the Community initiatives, subdivided into seven topics, [5] receive 9% of the
amounts allocated to the structural policies, i.e. ECU 13.45 billion. This
includes a reserve of ECU 1.6 billion for one or more initiatives still to be

defined. It can be considered that two of the seven topics have a more
obvious potential link with the development of the Information Society in
the regions, internal and external trans-frontier cooperation, with the
INTERREG II initiative, with a budget of ECU 2.9 billion, and industrial
change, with the SME initiatives aimed at improving the competitiveness of
SMEs, with a budget of ECU 1 billion, and ADAPT, aimed at facilitating
the adaptation of workers to industrial change, with a budget of
ECU 1.4 billion;

The Community's Structural Funds arc as follows: the ERDF (European Regional Development
Fund) the aim of which is to reduce the differences in development between the various
Community regions; the ESF (European Social Fund) which is responsible for improving
employment possibilities within the Community; the EAGGF (European Agricultural Guidance
and Guarantee Fund) which contributes towards the national agricultural aid schemes and the
development and diversification of rural areas in the Community; and the F1FG (Financial
Instrument for Fisheries Guidance) which supports the restructuring of the fisheries sector.

ECU 141 billion for the period 1994-99. i.e. one-third of the total Community budget.

Internal and external trans-frontier cooperation, rural development, the most remote regions,
employment and development of human resources, industrial change, urban policies, and
initiatives for areas dependent on fishing.

under Article 10 of the ERDF Regulation (regional development in the
Community), the Commission has a financial mechanism limited to 1% of
the ERDF's annual allocation to contribute to innovative actions in regional
development through pilot schemes which encourage the pooling of
experience and the development of cooperation between different
Community regions, and innovative measures. These pilot schemes should
have an innovative character, a European networking dimension and a
strong potential for demonstration effects in other regions.

To ensure consistency for the possible information society measures, the
Commission is preparing a framework for such support under Article 10.

Pursuant to Article 6 of the European Social Fund Regulation (technical
assistance, pilot and demonstration projects), innovative projects designed
to test new hypotheses concerning the content, methodology and
organization of vocational training and the development of employment and
studies and pilot projects may be funded. Applications concerning training
and the development of employment could be funded under this article.

d) The Cohesion Fund

Four Member States, in addition to the Structural Funds, benefit from a cohesion
financial instrument intended to speed up their convergence. The areas concerned
are transport and the environment. It is not excluded that the actions co-financed
could contain an element of telematics applications.

e) The European Investment Bank

The EIB actively contributes to the financing of telecommunications networks,
which account for 15% of its loan portfolio. In 1994 it financed
telecommunications projects to the tune of approximately ECU 2.1 billion. The
temporary Edinburgh mechanism was set up in 1992 to speed up the financing of
trans-European networks. As of today, it has been fully utilised of which 641
MECUS on telecommunications projects.

The EIB loans finance projects which contribute to the Community objectives of
strengthening the internal market and economic and social cohesion. These
projects must be financially viable. The ceiling is 50% of the total investment cost.

f) The European Investment Fund

The EIF supports large infrastructure projects by granting guarantees not
exceeding 50% of the amount of the loan. EIF assistance is coordinated with the
other forms of Community assistance, in particular EIB loans.

**g)** **The** **SOCRATES** **and LEONARDO programmes**

**The overall aim of the SOCRATES programme (850 MEcu from 1995 to** **1999)** **is**
**to help improve the quality and relevance of education for children, young people**
**and adults, to increase access to the range of learning opportunities available**
**across the Community, and to give more young people the chance to gain personal**
**experience of other European countries as their prepare for their** **future** **career.**

**The LEONARDO DA VINCI programme (714 MEcu from 1995 to 1999) will**
**support and complement actions in the Member states to improve the quality of**
**training policy and practice and its capacity to find new ways of learning.**

**The promotion of open and distance learning actions is a common objective to**
**these programmes.**

_**1o**_

**PART** **II**

**Proposal** **for a**

**EUROPEAN PARLIAMENT and COUNCIL DECISION**

**on a series of guidelines for**

**trans-European telecommunications networks**

#### **_m_**

**CONTENTS**

**1.** **Introduction : The Infrastructure for the Information Society**

_**a)**_ _**The trends**_

_**b)**_ _**Advanced communications**_

_**c)**_ _**The**_ _**role**_ _**of the Union**_

**2.** **The Basis for Action**

**3.** **The Objectives**

**4.** **The Priorities**

**5.** **The Broad Lines of Measures**

**6.** **Projects of Common Interest**

_**a)**_ _**Domains**_

_**b)**_ _**Procedure for Identification**_

_**c)**_ _**Follow-up of the Procedure**_

**7.** **Conclusions**

**PROPOSAL FOR A EUROPEAN PARLIAMENT AND COUNCIL DECISION ON**

**A SERIES OF GUIDELINES FOR TRANS-EUROPEAN**

**TELECOMMUNICATIONS NETWORKS**

**Annex 1 : Domains for Projects of Common Interest**

**Annex 2 : Identification criteria**

**ne**

**1.** **Introduction** **:** **The Infrastructure for the Information Society**

_To..._ _stimulate the creation of new markets, the Commission proposes to identify_
_strategic trans-European projects.... The strategic projects would be carried out at_
_each of three_ _interdependent_ _"levels" that make up the telecommunications_
_networks: the carrier networks for_ _transmission_ _of_ _information,_ _generic services and_
_telematics applications._

_With_ _regard_ _to the networks which serve to carry the information (voice, data,_
_images) the objective would be to consolidate the_ _integrated_ _services digital network_
_and to install the high_ _speed_ _communications network using advanced transmission_
_and switching techniques (asynchronous transfer mode: ATM), which will help_
_digitized multi-media services to make a breakthrough._

White Paper - "Growth, Competitiveness,
Employment: The Challenges and Ways
Forward into the 21st Century"
_a)_ _The Trends_

Trans-European Telecommunications Networks should follow an overall
evolution scenario whereby Europe will advance from its present situation to
the deployment of an advanced communications by the year 2010-2020.

This evolution will be triggered by users demand. In order to satisfy
increasingly sophisticated needs, they will require advanced services and
applications which can be offered only on highly advanced networks.

Two main trends, commercial and technological, which will form the European
communications environment over the planning period, can already be
discerned.

These two trends, under favourable conditions, will give rise to new growth
areas of activity which will be supported by advanced communication
infrastructure and services. As these activities expand, and foster new and
diverse market opportunities, new jobs will be created in a wide range of

sectors.

The **commercial trend** will be **towards an ever closer integration and**
**consolidation of European network operations,** driven by the increasing
internationalization of European commercial and indeed social life inspired by
the Single Market. This will be marked by increased co-operation of
telecommunications operators in joint business operations combined possibly
with financial partnerships or take-overs between operators.

_**Ai**_

At the same time **liberalisation will open the way for alternative network**
**and service provision** further increasing the need for attention of interworking
and transparency of service provision. The public network operators will be
placed under further pressure by new foreign competitors who will come into
the market riding on innovative technologies such as digital mobile and satellite
communications, and interactive television.

The main **technological trend will be for the integration into the initial**
**simple broadband network increasing features of intelligence and**
**mobility.** Additionally, new applications will develop, taking advantage of the
increased transport capacity and flexibility of the network (e.g. video-ondemand, tele-presence).

_b)_ _Advanced_ _Communications_

The commercial and technology trends point to the integration of all kinds of
communications means, offering a variety of telecommunication services, from
narrowband to broadband, the ultimate goal being **Integrated Broadband**
**Communications** (ÏBC), which include three key features:

_"Integrated"_ points to "integrity" of the whole network, and therefore
to the proper interworking of all its essential constituent parts,
including the existing and emerging ones: voice telephony; Integrated
Service Digital Networks (ISDN), broadband, satellite and mobile. It
also signifies the integration of services (at the user and the
appropriate network levels).

_"Broadband"_ designates the total mix of services to be considered,
starting from ISDN, up to what will be required by a realistic
introduction of video (interactive and distributive) services.

_"Communication"_ includes the "conventional" switching,
transmission, and Customer Premises Network functions, but also
advanced features to make service provision user-friendly, performing
and economically sound.

These networks will:

o Provide a seamless access to information, including in rural and
peripheral areas.

o Provide high bandwidth, multi-party, interactive services on

acceptable economic terms.

o Cover progressively the whole territory of the Community.

o Allow for the extension to other networks.

o Provide easy and efficient access to information and transfer of
information among citizens.

The implementation of these networks can be schematised into four
overlapping phases:

1990-2000: Implementation and increasing use of EURO-ISDN.

1995-2010: Implementation of Integrated Broadband Communication, with the
completion of customer access, initially for business customers. Offer of a
number of advanced services, in particular multimedia services.

2000-2010: Integration of intelligence and mobility in the networks, allowing
full "follow me"mobility throughout these networks.

2005-2020: Implementation of the "photonic network", where all network
functions are realised through optic devices, allowing the offer of very
broadband switched services to 50% of the customers.

_c)_ _The Role of the Union_

The importance of the role of trans-European telecommunications networks
within the Union has been recognized within Title XII of the Maastricht
Treaty, Articles 129b and 129c. These Articles of the Treaty provide an
instrument for supporting, in combination with other Community instruments,
the implementation of the networks, services and applications of the
information society. The following points introduce a Proposal for an
European Parliament and Council Decision on a series of guidelines for transEuropean Telecommunications Networks.

**2.** **The Basis for Action**

Article 129b stipulates:

_1._ _...the Community shall contribute to the establishment and development of trans-_
_European networks in the areas of_ _...telecommunications..._ _infrastructures._

_2._ _Within the framework of a system of open and competitive markets,_ _action_ _by the_
_Community shall aim at promoting the interconnection and interoperability of_
_national networks as well as access to such networks. It shall take_ _account_ _in_

_particular of the need to link_ _island,_ _landlocked and peripheral regions with the_
_central_ _regions of the Community._

#### **_-is_**

Article 129c indicates:

_I. In order to achieve the objectives_ _referred_ _to in Article_ _J29b,_ _the Community:_

_shall establish a series of guidelines covering the objectives, priorities and_
_broad_ _lines of measures envisaged in the sphere of_ _trans-European_ _networks;_
_these guidelines shall identify projects of common interest._

The following sections propose a series of guidelines **as** defined in **Article 129c for**
**the** trans-European Telecommunications Networks.

**3.** **The Overall Objectives**

The White Paper has linked the creation of trans-European **telecommunication**
networks to the goals of Growth, Competitiveness and Employment. It paves the
way to the information society by providing target areas for strategic projects up to
the year 2000 in the field of interconnected advanced communication networks,
generic services and telematic applications.

The Bangemann Report prepared by a high level group of industrialists has also
emphasised the need to accelerate the creation of the building blocks of the
information society. Particular attention is given to "blazing the trail" by supporting
the launch of targeted applications in 10 areas which directly respond to essential
economic and social needs [1] .

The necessary actions to develop trans-European telecommunication networks will
be based on the promotion of **access, interconnection** and **interoperability** with a
view to satisfying the diversity of users' needs. These actions shall contribute to
achieving the following overall objectives:

**facilitating the evolution towards the information society** by promoting the
increased use of and improved access to advanced technologies, notably
through adapted education and training facilities, to encourage new working
arrangements (e.g. telework) and develop new information applications and
services, particularly in areas of collective interest such as healthcare,
education and training, and cultural activities which contribute to improving
the quality of life and the environment,

**improving the competitiveness of European industry and strengthening**
**the internal market** by encouraging the development of pan-European
networks, applications and generic services which will support the growth of
trans-European electronic commerce and new commercial applications, and

"Europe and the global information society - Recommendations to the European Council" 26.05.1994

_**ne**_

enable citizens of the Union to access and transfer information freely within an
area without internal frontiers,

**reinforcing economic and social cohesion** by reducing disparities between
the regions concerning both the general availability of and access to
telecommunications infrastructure,services, and applications

**accelerating the development of new growth area activities (e.g.**
**multimedia and electronic information services) leading to job creation,**
by creating a favourable environment to obtain critical mass of demand and
investment.

An appropriate **on-going monitoring mechanism** will be set up to assess how effectively
all the trans-European telecommunication network projects are responding to these
objectives. Such a mechanism will track progress towards the achievement of TENs as
well as provide social and economic evaluation of projects on the basis of indicators
related to the specific character of the projects and their objectives

Regular reports will be submitted to the European Council, the European Parliament, the
Council of Ministers, the Economic and Social Committee, and the Committee of the
Regions.

**4.** **The Priorities**

Within these objectives, the Commission proposes priorities for Community action in
relation to the three layers which form the model for trans-European
telecommunications networks.

**applications,** which provide logical access to information by its user.
Applications may require to be interoperable between themselves ;

**generic services,** which, through support for their common requirements,
complement the specific applications whilst aiding their interoperability ;

**basic networks,** which provide physical access, transport, and connectivity.

The Community must make optimal use of its limited financial resources . In this
context, priorities have to be carefully defined. User driven **applications** are the most
important because they underpin the deployment of the information society. They will
create the demand for new investments in advanced telecommunications services and

networks. However, whilst, some applications can already be supplied using existing
infrastructures their overall development is limited by uncertainty in the market and
by the hesitancy of users to adapt to new services.

**The priority has therefore to be put on** **stimulating the development of**
**applications** which will allow every kind of user to access the information it needs,
in the framework of the objectives aimed at by Community action. The priorities to

**be** **assigned** **to generic services will** **derive** **from their support to allowing the**
**availability of these applications, as well as from their role of service** **whiqh** **has to be**
**directly accessible to users. For basic networks, the priorities will** **resujlt** **from the**
**necessity for them to assure a cheap and efficient transport of information, to allow**
**the rapid introduction of new applications and generic services and to offer rapidly**
**the newest and most appropriate transport technologies. Particular attention must be**
**paid to the needs of the SMEs.**

_Applications_

**The following priorities relate to applications :**

**the creation of applications that stimulate and support thetransition**
**towards the knowledge based information society, particularly those**
**applications which respond to needs of collective interest and help to**
**change the general culture of all citizens by introducing familiarity with**
**the environment and tools of the information society,**
**the development of applications that contribute to social and economic**
**cohesion, both by improving information access throughout the Union**
**and by exploiting the potential afforded by the diversity of** **the** **European**
**cultures,**
**the development of accessible and interoperable applications that**
**strengthen the competitivity of European companies as well as the**
**internal market, and in particular those applications that will provide**
**SMEs with the tools that they require in order to gain and maintain**
**competitiveness.**

_Generic Services_

**The following priorities relate to generic services :**

**the establishment, within an evolving context of universal service** **[2]** **, of**
**interconnected and interoperable trans-European generic services, as**
**well as the definition of common standards**

**the world-wide interoperability of trans-European generic services.**

_Basic Networks_

**The following priorities relate to digital basic networks :**

**the promotion of the existing Euro-ISDN network as an immediately**
**available digital platform for the support of** **new** **applications,**

The principle of Universal Service is an essenlial clcmenl of ihc rcgulalory framework pul forward in
the Green Paper on the liberalisalion of lelecommunicalions infrastructure and cable television
networks. See COM(95 158 final

**4 ***

the rapid development of efficient and cost effective broadband
networks in Europe having the network federating characteristics of
Integrated Broadband Communications,
the interconnection and interoperability of trans-European
telecommunications networks to world-wide networks and the adoption
of appropriate standards.

**5.** **The Broad Lines of Measures**

In order to reach these objectives, there is a need for action by the Community. Many
measures are already being taken within other frameworks such as the fourth
Framework RTD Programme, the regulatory field, etc...

**In addition, direct action is needed to stimulate the development of the trans-**
**European networks.** These actions, which must build on the existence of expressed
or potentiel needs, should aim on the one hand at favour the concrete expression of
the needs, on the other hand to encourage and support the initiatives to be taken by
the providers to offer the services and applications responding to these needs. The
first document presented in this Communication spells out the methods of action
which should be used.

These methods can be summarised as follows:

identification of projects of common interest.

action to increase public awareness of the existence of, and benefits offered by,
new means of communication,

support for the confirmation of the feasibility, and for the deployment of
applications, in particular those of collective interest, through the means
provided for in the Treaties, and through the development of new partnerships
between public and private interests,

action to stimulate the provision and use of telematic services for SMEs and
professionals, a measure which should act as a main engine for growth and
employment in Europe,

action which encourages the rapid development of trans-European broad-band
networks,

Whenever appropriate, **co-operation with third countries will be facilitated with**
**respect to the implementation of measures under the present guidelines,** in
particular when these are deemed to be of mutual interest and to ensure the
interconnection of basic networks and the interoperability of the services that are
supported by these networks.

_**A<%**_

**6.** **Projects of Common Interest**

_a)_ _Domains of Projects of Common_ _Interest_

The development of trans-European telecommunications networks **will be**
assured through the implementation of Projects of Common Interest. Taking
into consideration the specific characters of the sector, **it appears that it is**
**not possible to define a priori specific Projects of Common Interest like**
for instance in the transport sector. The telecommunications sector is
effectively characterised by a very fast technological change and is being
progressively liberalised: the combination of these two factors leads **to the**
conclusion that the initiatives for Projects:

have to come from the private sector (or from a partnership between
public and private sector in the case the services to be promoted are
used by a public authority for the execution of its public service
mission),

must answer expressed user needs.

**Specific Projects of Common Interest** **can** **therefore only be identified**
**through a demand driven approach, using a procedure of Call for**
**Proposals in chosen domains to collect the initiatives which should stem**
**from recognised users needs.** The broad domains in which proposals for
specific projects may be requested are those which appear to be main building
blocks of the information society:

in the field of applications, the applications of collective interest
identified in the Bangemann's report are of particular importance [3],

in the field of generic services, the services which support the offer of
most of the applications have to be strongly encouraged,

in the field of basic networks, projects improving network
interconnection, promoting the required infrastructures for the
development of applications and services, and the deployment of
advanced network features, like the introduction of broadband
communication, should be supported where appropriate.

The list of domains for Projects of Common Interest covering the three parts
of the trans-European telecommunications networks is presented in Annex 1
to the draft Proposal which follows this Communication. Annex 1 includes

3 Where appropriate, projects will be closely coordinated with content related inialives (INFO2000) in
specific applications domains to achieve possible synergy effects

also **a** number of horizontal support and coordination actions, with **a** view to
strengthening the interconnection and interoperability of networks and
services.

_b)_ _The_ _procedure for Identification of the Specific Projects of Common Interest_

A **Work programme** will be set up and updated as necessary by the
Commission, in consultation with the sector actors, to individualize, in the
broad domains choosen, more specific areas in which proposals will be
requested. A Call for Proposals will then be established and launched in the
areas retained in the Work programme.

The **identification of Projects of Common Interest** among the proposals
received will then take place on the basis of their compliance to the objectives
and priorities adopted, as well as to criteria regarding their financial
soundness. At the end of the process, a **list of Projects of Common Interest**
will be available

In the management of this procedure of identification of Projects, the
Commission will be assisted by a **Committee** of representatives of the
Member States.

_c)_ _Follow-up of this procedure_

The implementation of this Decision allows to **identify a list of Projects of**
**Common Interest.**

**Projects, taken from this** **list,** **which will benefit from the Community**
**financial support under art.l29C.l, third indent, will be selected in a**
**further sequence within the framework of the** **"Regulation** **laying down**
**general principles for the granting of Community financial aid in the**
**field of trans-European** **networks".**

**This form of Community financial support will be mainly focussed on the**
**applications domains, in particular on the applications of collective**
**interest.**

The projects belonging to the basic networks and generic services layers, being
much closer to commercial profitability, should be eligible only to limited
Community support under the Regulation rules.

**.** _**-?**_ _**n**_

**Eut** **the recourse to the other** **sources^** **of Community financing remains open**
**for all the Projects of Common Interest identified within the financing rules**
**governing each** **instrument.** **In addition, their recognition as Projects of**
**Common Interest gives them a political visibility, which should facilitate**
**obtaining financial support from other public and private sources.**

**7.** **CONCLUSIONS**

**On the basis of Articles 129b and** **129c** **of the Treaty, and within the context of the**
**present Communication on an overall framework and guidelines for trans-European**
**telecommunications networks, the Commission** **hereby** **submits for adoption to the**
**European Parliament and the Council the attached proposal for a Decision on a series**
**of guidelines for trans-European telecommunications networks.**

These other sources arc: Fourth Framework RDT programme, Structural Funds, Cohesion Fund,
European Investment Bank, European Investment Fund. These inslrumenls are described in details in
Annex 1 to the document "Methodology for the implementation of information society applications".

### **_z<_**

**PROPOSAL FOR A EUROPEAN PARLIAMENT AND COUNCIL**

**DECISION**

**on a Series of Guidelines**

**for Trans-European Telecommunications Networks.**

```
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN

UNION,

```

Having regard to the Treaty establishing the European Community, and in particular the
first paragraph of the Article 129D thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the Economic and Social Committee [5] ;

Having regard to the opinion of the Committee of the Regions [6] ;

Whereas the implementation and the development of trans-European telecommunications
networks aim at ensuring the circulation and the exchange of information across the
Union; whereas this is a pre-condition to make possible the establishment of the
"Information Society", which will result from the availability, for each citizen, company or
public authority everywhere in the Union, of any kind and quantity of information they
need;

Whereas, in its White Paper on "Growth, Competitiveness and Employment", the
Commission stressed the importance of establishing the Information Society, which, by
introducing new forms of economic, political and social relations, will help the Union to
face the new challenges of the next century, including the challenge of employment
creation ; whereas this has been recognised by the Brussel's European Council of
December 1993;

Whereas the internal market establishes an area without borders, within which the free
circulation of goods, persons, capital and services has to be ensured, and where already
adopted Community measures, and other measures still to be adopted, imply significant
exchange of information between individuals, organisations and administrations; whereas
efficient means of exchanging information are vital for the improvement of industrial
competitiveness; whereas these exchanges of information can be assured by transEuropean telecommunications networks; whereas the availability of trans-European
networks will strengthen social and economic cohesion at the Union level;

_**<?s**_
**Whereas** **the implementation and the development of** **trans** **European telecommunications**
**networks should ensure that information is freely exchanged between individuals,**
**organisations and administrations, while respecting the privacy rights of individuals and**
**intellectual and industrial property rights.**

**Whereas, in June 1994, in their report on "Europe and the global information** **society"** **[7]** **,**
**the members of a group of prominent representatives of industry recommended to the**
**Council to implement trans-European telecommunications networks and to secure their**
**interconnectivity with the whole of European networks; whereas the June** **1994** **Corfu**
**European Council gave its general approval to this recommendation;**

**Whereas the Communication of the Commission to the Council and the European**
**Parliament "Europe's way to the Information Society: an Action Plan"** **[8]** **, follows these**
**recommendations; whereas the conclusions of the Industry-Telecommunications Council**
**meeting on September 28th, 1994 on this action plan, stressed the fact that the fast**
**development of performant information infrastructures (networks, services and**
**applications), is essential for Europe on the basis of a global, coherent and balanced**
**approach;**

**Whereas** **Article** **129c of** **the** **Treaty requires that the Community shall establish a series of**
**guidelines covering the objectives, priorities and broad lines of measures to be**
**implemented in the sphere of trans-European networks; whereas these guidelines shall**
**identify Projects of** **Common** **Interest;**

**Whereas the Information Society cannot develop without the availability of applications,**
**and especially applications of collective interest, answering optimally to user needs, taking**
**into account, where appropriate, the needs of the elderly and disabled; whereas**
**applications will thus form an important part of the Projects of Common Interest;**

**Whereas Projects of Common Interest can, in many cases already be implemented in the**
**present telecommunications networks, in order to offer trans-European applications;**
**whereas guidelines have to be drawn up, in order to identify these Projects of Common**
**Interest**

**Whereas in the selection and implementation of such projects account should be taken of**
**both infrastructures offered by telecommunications organisations as well as alternative**
**infrastructures offered by other providers;**

**Whereas the Commission has transmitted to the Council a series of guidelines concerning**
**the development of Integrated Services Digital Network (ISDN) as a trans-European**
**Network** **[9]** **;** **whereas the Council has reached a common position on this proposal;**

7 Report prepared for the Council Meeting on June 24-25. 1994. in Corfu, on "Europe and ihc global
information society - Recommendations to the European Council"

8 COM(94) 347, 19.07.1994

9 COM(93) 347, 1.09.1993

##### **z 7**

Whereas the present networks, which include existing ISDN, are evolving towards
advanced networks offering a variable data flow rate up to broadband capabilities,
adaptable to different needs, in particular to the offer of multimedia services and
applications; whereas the implementation of Integrated Broadband Communication (IBC)
Networks will be the outcome of this evolution; whereas IBC will constitute the optimal
platform on which applications of the Information Society can be built;
Whereas the results of the specific research and technological development programme [10 ]

in the field of communication technologies (RACE) have prepared the ground and the
technology base for the introduction of IBC networks in Europe;

Whereas the results of specific research and technological development programme in
information technologies (ESPRIT) has prepared the ground and the technological base
for the introduction of applications of information technologies.

Whereas the results of the specific research and technological development programmes in
the field of telematics systems of general interest (91-94) [11] and Telematics Applications of
Common Interest (94-98) [12] prepare the ground for the introduction of interoperable
applications of common interest across Europe;

Whereas effective coordination needs to be ensured between the different Community
programmes, and in particular as appropriate, with programs in favour of SMEs [13] and
with information content oriented programmes (such as INFO 2000, MEDIA 2) and other
Information Society activities.

Whereas in its Communication [14] on "Preparatory actions in the field of Trans-European
Networks-Integrated Broadband Communications (TEN-IBC)", the Commission
identified the need to carry out preparatory actions with the sector actors to draw up
appropriate Guidelines; whereas the result of these actions form the basis for the
guidelines related to IBC networks in this Decision;

Whereas the telecommunications sector is being progressively liberalised; whereas the
development of trans-European applications, services and networks relies mainly on
private initiative; whereas these trans-European developments must respond to market
needs; whereas, taking this into account, the interested sector actors will be requested to
propose, through appropriate procedures giving them equal chances, specific Projects of
Common Interest in choosen domains; whereas these procedures have to be defined and a

1 0 Council Decision 91/352/EEC (OJ. L 192. 16.7.1991, p. 8)

11 Council Decision 91/353/EEC (O.J. L 192. 16.7.1991. p. 18)

12 Council Decision 94/801/EC (O.J. L334. 22.12.1994. p.l)

13 Communication from the Commission : "Integrated programme in favour of SMEs and the craft
sector" COM 94 207 du 3/06/1994

14 COM(93) 372 of 22.07.1993 (O.J. N° C200. 24.07.1993. p. 22)

_**2**_ _**S**_

list of the choosen domains has to be adopted; whereas a Committee shall assist the
Commission for the identification of the specific Projects of Common Interest;

Whereas the Community financial support to the implementation of Projects of Common
Interest identified within this Decision has to be considered in the framework of the

Regulation laying down general principles for the granting of Community financial aid in
the field of trans-European networks; whereas following this Regulation, the concerned
Member states shall give a certain degree of support to the Projects of Common Interest;

Whereas the Commission shall undertake actions to assure interoperability of the
networks, and to coordinate the activities of the Member States aiming at the
implementation of trans-European telecommunications networks;

Whereas it is important, for the optimum development of the Information Society, to
assure an efficient exchange of information between the Community and the third
countries, in particular the states members of the European Economic Area; whereas it is
thus necessary to promote networks interconnection and interoperability at European
scale;

Whereas, however, activities undertaken in the context of these guidelines are subject to
the full application of the competition rules set out in the Treaty and implementing
legislation

**HAS ADOPTED THIS DECISION**

_Article I_

This Decision establishes guidelines covering objectives, priorities and broad lines of
measures in the field of trans-European telecommunications networks. These guidelines
set out the domains for Projects of Common Interest, and a procedure for the
identification of specific Projects of Common Interest in these domains.

_Article 2_

The Community will support the interconnection of telecommunications networks, in
particular Integrated Broadband Communication (IBC) networks, the setting-up and the
deployment of interoperable services and applications and required infrastructure as well
as the access to them, with the general objectives of:

Facilitating the transition towards the information society, in particular to
promote the satisfaction of social needs and to improve the quality of life.

     - Improving competitiveness of European industry and strengthening the internal
market.

     - Strengthening the economic and social cohesion.
Accelerating the development of new growth area activities leading to job
creation.

_Article 3_ '

The priorities for the realisation of the objectives mentioned in article 2 will be:

      - The confirmation of the feasibility, followed by the deployment of applications
supporting the development of a European Information Society, in particular
applications of collective interest.

      - The confirmation of the feasibility, followed by the deployment of applications
contributing to the economic and social cohesion, by improving access to
information across the whole Union building on the European cultural
diversity.

     - Actions aiming at the stimulation of interregional initiatives, associating less
favoured regions for the launch of trans-European telecom services and
applications.
The confirmation of the feasibility, followed by the deployment of applications
and services contributing to the strengthening of the internal market and job
creation, in particular those offering to SMEs means to improve their
competitiveness in the European Union and at world level.
The identification, the confirmation of the feasibility, followed by the
deployment of trans-European generic services providing a seamless access to
all kind of information, including in rural and peripheral areas, and
interoperable with equivalent services at world level.

     - The confirmation of the feasibility of new high-bandwith fibre optic backbone
networks, where required for such applications and services, and the
promotion of the interconnectivity of such networks.
The identification and removal of gaps and missing links for an effective
interconnection and interoperability in all their components of
telecommunications networks in Europe and at world level, with a particular
emphasis on IBC networks.

_Article_ _4_

The broad lines of measures to be implemented for reaching the objectives defined in
article 2 will cover:

Identification of Projects of Common Interest.
Actions aiming at increasing the awareness of citizens, economic actors and
administrations on the benefits they can draw from the new advanced transEuropean telecommunications services and applications.

     - Actions aiming at the stimulation of combined initiatives from the users and the
providers for the launch of projects in the field of trans-European
telecommunications networks, in particular IBC networks.

     - Support, in the framework of the means defined by the Treaty, to the
confirmation of the feasibility, followed by the deployment of applications, in
particular applications of collective interest, and encouragement to the
establishment of public-private partnerships.

#### **^7**

     - Stimulation of the offer and the use of services and applications for SMEs and
professional users, which constitute a source of employment and growth.

     - Promotion of the interconnectivity of networks, of the interoperability of
broadband services and applications and of the infrastructure they require, in
particular for multimedia, and of the interoperability between existing and
broadband services and applications.

_Article_ _5_

The development of trans-European telecommunications networks is made under this
Decision by the implementation of Projects of Common Interest. The domains within
which Projects of Common Interest shall be identified are listed in Annex 1.

_Article_ _6_

The following Articles 7 to 9 describe the procedure for identifying specific Projects of
Common Interest in the domains indicated in annex 1, using the identification criteria
listed in annex 2. The identified projects are eligible for Community support in compliance
with the Council Regulation laying down general rules for the granting of Community
financial aid in the field of trans-European networks.

_Article_ _7_

1. A Work Programme shall be drawn up by the Commission, in conformity with the
other trans-European network policies, in consultation with sector actors,for selecting
the areas in which specific Projects of Common Interest can be proposed, within the
domains of Projects of Common Interest set out in annex 1. The Work Programme
shall be updated as necessary.

2. The Work Programme shall be the basis for the establishment of Calls for Proposals
for Projects of Common Interest by the Commission

_Article 8_

1. The Commission shall be responsible for the implementation of the procedure defined
in articles 7 to 9.

2. For the cases specified in Article 9 (I), the Commission shall be assisted by a
Committee composed of representatives of the Member States and chaired by the
representative of the Commission.

The Commission representative shall submit to the Committee a draft of the measures
to be taken. The Committee shall deliver its opinion on the draft within a time limit
which the chairman may lay down according to the urgency of the matter. The
opinion shall be delivered by the majority provided for in Article 148(2) of the Treaty
in the case of decisions which the Council is required to adopt on a proposal from the
Commission. The votes of the Member States' representatives within the Committee
shall be weighted in the manner set out in that Article. The Chairman shall not vote.

_**z%**_

The Commission shall adopt the measures envisaged where they are in accordance
with the opinion of the Committee.

If the measures envisaged are not in accordance with the Committee's opinion, or if
no opinion is delivered, the Commission shall without delay submit to the Council a
proposal relating to the measures to be taken. The Council shall act by qualified
majority.

If on expiry of a period of one month from referral of the matter to the Council, the
latter has not acted, the proposed measure shall be adopted by the Commission.

_Article 9_

1. The procedure laid down in Article 8 shall apply to:

   - the preparation and updating of the Work Programme referred to in Article 7;

the identification of Projects of Common Interest as a result of a Call for
Proposals;

   - the definition of complementary support and coordination actions;

   - the measures to be taken to evaluate the implementation of the Work
Programme.

2. For the particular case of the domain of projects of common interest related to ISDN
(referenced in annex 1, pt 3, 1st par.), the applicable guidelines are those adopted by
15
the Council .

3. The Commission shall inform the Committee, at each of its meetings, of the progress
of the Work Programme implementation.

_Article_ _10_

Member States shall take all measures required at national, regional or local level to
facilitate and accelerate the implementation of the projects of Common Interest, in the
respect of Community rules. The authorisation procedures which may be necessary
shall be achieved in the shortest delays.

_Article_ _11_

This Decision shall not prejudice anyfinancial commitment by a Member State or the
Community.

'* The common position adopted by the Council on the draft decision arc referenced : (CE) NT47/94 of
22 decembcr 1994 (JO C384 of 31 dcccmbcr 1994, p29).

#### **_23_**

_**Article**_ _**12**_

**The participation of** **third** **countries,** **in** **particular those being parties to the agreement**
**on European Economic Area, or having concluded an association agreement with the**
**Community, can be authorised by the Council on a case by case basis, following the**
**procedure laid down in Article 228 of** **the** **Treaty, in order to allow their contribution**
**to the implementation of Projects of Common Interest, and to promote the**
**interconnection and the interoperability of the telecommunications networks.**

_**Article**_ _**13**_

**The Commission shall present every two years a report on the implementation of** **this**
**Decision to the European Parliament, the Council, the Economic and Social**
**Committee and the Committee of the Regions.**

**The report shall contain an evaluation of the results achieved with Community**
**support in different project fields, in relation to the overall objectives.**

_**Article**_ _**14**_

**This Decision enters into force on the seventh day following the day of** **its** **publication**
**in the Official Journal of the European Communities.**

_**Article**_ _**15**_

**This Decision is addressed to the Member States.**

**Done at Brussels,**

**For the European Parliament** **For the Council**

**The President** **The President**

**3o**

**Annex** **l:** **DOMAINS FOR PROJECTS OF COMMON INTEREST**

**The trans-European telecommunications networks will open the European market to the**
new applications and services which are the **ground upon** which the information society
should develop. They are essential to realise the objectives **of** safeguarding **and promoting**
Europe's future prosperity and creating new jobs, as well as enhancing economic **and**
social cohesion. .

A three layer model has generally been accepted as the most appropriate framework **for**
describing trans-European telecommunications networks. These layers **are:**

The _**Applications**_ layer, through **which users interact with generic** services
and basic networks for meeting their **professional, educational and social needs.**
Applications require to be interoperable between themselves to bring the **maximum**
benefit to the users across the Community.

The _Generic Services_ layer, made of compatible generic services and their
management. Through support of the applications common requirements, these
services complement he applications whilst aiding their interoperability.

The _Basic networks_ layer, that provides the physical access, transport and
switching elements of the networks, including their management and signalling.
These elements are providing the trans-European network interconnectivity.

These three layers form a consistent structure, where applications are supported by the
two lower layers : generic services and basic networks. In particular, applications cannot
be offered in the absence of one or the other two layers ; however, each layer should be
sufficiently open as to support any element of the layer immediately above. In this context,
Projects of Common Interest should be identified on the basis of their operational
capability to support the objectives set forth in this Decision.

**This Decision aims at identifying a list of Projects of Common** **Interest,** **from which**
**Projects which will benefit from the Community financial support under art.l29C.l,**
**third indent, will be selected. This selection is made within the framework of the**
**"Regulation** **laying down general principles for the granting of Community financial**
**aid in the field of trans-European networks".**

The recourse to the other sources^ of Community financing remains open, within the
financing rules governing each instrument for all the Projects of Common Interest

16 These other sources arc: Fourth Framework RDT programme. Structural Funds. Cohesion Fund,
European Investment Bank, European Investment Fund. These instruments are described in details
in Annex 1 to the document "Methodology for the implementation of information society
applications".

**3 1**

identified. Community financial support are granted in accordance with the competition
policy rules, notably those dealing with the financial support of R&D and the state aids.

The following sections are defining the domains in which Projects of common interest will
be identified.

_**I.**_ _**Applications.**_

The domains in which applications projects will be identified are the following :

     - **A Network for universities and research centres** : An advanced trans
European network, carrying multimedia applications, should be established, linking
universities and research centres across Europe, with open access to their libraries.

     - **Distance education and training** : Advanced distance education and
training services should be made accessible for all citizens, schools, colleges and
businesses. Centers should be set up and made remotely accessible across Europe
in order to provide courseware and training services for SMEs, large companies,
education systems, and public administrations. New approaches to professional
training for the information society should be developed and promoted.

     - **Health Telematics** : Trans-European networks and applications based on
common standards should be deployed, which would link on a European scale all
the partners of the health system, in particular general practitioners, hospitals and
social centres.

     - **Transport Telematics** : Full advantage should be taken of trans-European
telecommunications networks to improve transport network management and
logistical support for transport industries and the development of value-added
services. Telematic systems and services, wherever applicable, should also serve as
a tool for implementing Common Transport Policy; the necessary complementarity
with and interoperability of the trans-European Transport Network will be
ensured.

     - **Telematics for environment** : Trans-European networks can bring an
important contribution to the monitoring and the management of the environment,
including emergency management.

     - **Televvorking** : The development of teleworking (in homes and satellite
offices) supported by advance communication systems will help provide new forms
of flexibility in terms of the place of work and the way work is organised. Through
the decentralisation of professional activities, teleworking can also help reduce the
environmental consequences of daily commuting to population centers.

     - **Telematic services for** SMEs : Projects of common interest will support
the use of trans-European telecommunications applications and services by
European SMEs, with links to public authorities, trade associations, consumers,
customers and suppliers and including information services and electronic

**3<2**

commerce. The awareness of telematics based solutions in general should be raised
among SMEs.

     - **Trans-European Network for Public Administrations** : Interconnected
networks between public administrations networks in Europe should be
established, aiming at facilitating interchange of data between adminstrations, in
particular when implementing European Union regulations providing an effective
and less expensive information interchange. It should be further extended to link
public administrations and European citizens.

     - **Electronic tendering** : A trans-European Electronic Tendering Network
should be set up, based on electronic procedures for public procurement between
public administrations and suppliers in Europe.

     - **City information highways** : Networks and services should be promoted
interconnecting households, businesses, social organisations and administrations
and providing access to on-line multi-media information, education, cultural,
entertainment and tourism services on a local, regional, national and European
basis. Links between city and regional networks should be promoted.

     - **Library services** : trans-European advanced nerworked library services
involving all types of libraries (National, University/research, public etc.) should be
deployed to provide effective access to both the reservoir of organised knowledge
and the cultural wealth held in libraries across Europe, in support of the economic,
social, educational and cultural life of the EU.

     - **Telematic services for the job market.** Networked services, such as job
information databases, should be developed to support the changing labour market
in Europe and to help tackle unemployment.

     - **Cultural and linguistic heritage.** Initiatives should be launched to foster
the preservation of and access to the European cultural heritage, and to
demonstrate the potential of the information infrastructure to support the
development of local content in local languages.

     - **Citizens' access to services.** Applications demonstrating citizens' access to
services of collective interest should be set up. Examples might include the
establishment of kiosks and access points in public areas, and the use of smart
cards and electronic wallets.

_2._ _Generic Services_

The domains in which projects of common interest for generic services networks will be
identified are the following :

     - **Implementation of operational trans-European generic services,** which
should include in particular electronic mail, file transfer systems, on-line access to
electronic data bases, and video services. As there is an urgent need for these
trans-European generic services, they will use existing switched basic networks
and user access. They should include service elements operating at European scale,

**33**

protection and information security, trans-European "kiosk" and network
navigational aids, etc.

     - **Progressive extension of the generic services toward a multimedia**
**environment..** These services will offer end-users access to multimedia services,
and might cover, but should not be limited to, multi-media mail, high speed file
transfer and video services, including Video-on-Demand. Use of these multimedia
services by business and residential users should be encouraged, as well as the
integration of new service elements such as automatic translation, speech
recognition, graphical user interfaces.

     - **Introduction of non-proprietary digital signature as a basis for open**
**service provision and mobility of use** : Generic services will rely on a large
number of complementary and competing services providers. Open Service
Provision and mobility of use will be of key importance and require electronic
names (digital signatures) to be generally available and supported.

_**3.**_ _**Basic networks**_

The domains in which projects of common interest for basic networks will be identified are
the following :

     - **Euro-integrated** Services **Digital Networks** : for reasons of immediate
commercial and technical trans-European availability, ISDN is today the most
appropriate and efficient digital switched basic network that can support new
services and applications. Its present development makes it an opportunity for
Europe, and its market and geographical extension will be justified by the
implementation of these new services and applications at pan-European scale.
However, it should be borne in mind that ISDN is only a first step, and that it is
going to evolve toward becoming merely a user access to broadband basic
services.

     - **Commercial introduction of managed Asynchroneous Transfer Mode**
(ATM) **and other broadband networks** : this domain must be considered as
being of utmost common European interest.

     - **Interoperation of existing and broadband communication networks** :
existing networks (for fixed, mobile and satellite services) should be
interconnected and intemperate between themselves and with ATM-based high
speed networks, in order to offer the most appropriate economic solutions to the
various situations which will occur during the setting up of the information society.
This issue is at the core of the development of the Integrated Broadband
Communications network, and is particularly relevant for SMEs, as well as for the
professional and residential markets.

_**4.**_ _**Support and Coordination Actions**_

In addition to its support to projects of common interest, the Community should initiate
actions aiming at providing the appropriate environment. They will contribute to

**^**

consensus development and concertation of national and regional activities for stimulation
and promotion of new applications and services in conformity with the implementation of
programs in other areas, as well as the development of broadband basic networks. They
will involve concertation with European standardisation and strategic planning bodies *',
co-ordination with actions funded by the different Community financial instruments. This
includes :

     - **Development of target specifications, and transition towards these**
**targets.** These specifications will support sector actors to make sound economic
investment decisions. This will be done in consultation with all sector actors,
including telecommunication operators, cable operators, emerging operators,
service providers, trade associations and consumer associations for:

      - identifying the missing elements and the bottlenecks in the Trans-European
telecommunications networks

         - developing the target networks specifications for the three identified
network layers. This includes terrestrial, satellite, mobile, as well as
management and operation on a European scale. Sector actors will build on
the RACE and Telematics Programme Common Functional Specifications, the
EURESCOM work and other technical bodies set-up by sector actors, and the
results of broadband trials underway as well as the results of the ESPRIT and
IT programmes.

        - developing the network evolution towards the target networks, and

        - encouraging the development of open, interoperable and user friendly

systems.

     - Definition of means to access broadband networks, at the three
specified layers.

     - Establishment of common specifications, based on European and world
standards.

     - Furthering the cooperation among sector actors, in particular the
emerging and fragmented operators, such as cable television networks, as well as
with users.

     - Cooperation and co-ordination **with** Community, European **and**
national programmes.

1 7 ETSI, CEN/CENELEC. EURESCOM and ETNO

###### **_Is_**

**Annex 2**

**Identification criteria.**

The identification of Projects of Common Interest among the projects presented by
interested sector actors in response to a Call for Proposal as mentioned in Article 7 is
made on the basis of their compliance with the objectives and priorities laid down in
Articles 2 and 3 respectively. These projects shall be transnational with special emphasis
on projects of an interregional nature.

In addition, the economic and financial criteria spelt out in the "Regulation laying down
the general rules for the granting of Community financial aid in the field of trans-European
networks" shall be taken into account. These criteria, which will be used in the framework
of this Regulation to decide on the granting of a financial support to a specific project, are:

- the potential economic viability of the project, which should be assured

- the maturity of the project

- the stimulative effect of Community intervention on public and private financing

- the effectiveness of the financial package

- the direct or indirect socio-economic effects, in particular on employment

- the consequences for environment.

- specially for transborder projects, coordination of the timing of the different parts of a
project.

**6<£**

**BACKGROUND NOTE** **ON** **THE** **IMPACT** **ON** **SMEs** **AND EMPLOYMENT**

**PROPOSAL FOR A DECISION** **OF** **THE EUROPEAN PARLIAMENT AND THE COUNCIL ON A**

**SERIES OF GUIDELINES FOR TRANS-EUROPEAN TELECOMMUNICATIONS NETWORKS**

The draft Decision sets out to stimulate the implementation of the new services and new
applications of the information society, and in particular those which are of collective
interest, in accordance with the procedures stipulated in Title XII of the Treaty for
supporting the development of trans-European telecommunications networks. The draft
Decision defines the guidelines for the constitution of a list of projects of common interest
which could potentially benefit from Community financial support provided through the
various instruments available.

1. Small and Medium-sized Enterprises (SMEs) which make proposals of a
transnational nature and request financial assistance within this context should
demonstrate the economic viability of the project in a business plan. Companies
will also have to show the direct and indirect effects of their projects, in particular
in terms of employment and the environment.

2. Economic development, especially at the local and regional levels, depends on the
rapid deployment of high performance trans-European telecommunications
networks. They will foster the creation of new markets comprising of services and
applications of the information society, whose development will largely depend on
the dynamism of SMEs who tend to be particularly innovative in the
communications sector. The draft Decision includes coordination and support
actions encouraging the participation of SMEs. Included among the application
fields eligible for Community support are the implementation of telematic links
between SMEs, but also the launch of distance professional training services and
teleworking facilities of particular interest to SMEs.

3. The draft Decision will have no negative impacts on SMEs.

4. The stimulation of new activities gives rise to the direct creation of jobs, notably
within such firms as electronic service providers and software suppliers which are
often SMEs. Jobs will also be created indirectly within other sectors of the
economy depending on rates of diffusion of productivity and revenue gains.

5. The principle of the draft Decision was announced in the Communication of the
Commission "Europe's Way to the Information Society: an Action Plan"
(COM(94) 347). This document is and has been the subject of a number of
different reports produced by other parliamentary institutions (EP, ECOSOC), and
representative organisations.

6. The chosen approach is based on the establishment of an overall framework for the
possible allocation of Community support. Community action is guided by the
desire for transparency and aims to encourage those companies and organisations
which are interested to develop activities in the field of the applications and
services of the European information society.

**3**
## **}**

**ISSN 0254-1475**

###### **COM(95) 224 final**

# **DOCUMENTS**

###### **EN 16**

**Catalogue number :** **CB-CO-95-252-EN-C**

**ISBN 92-77-89396-6**

**Office for Official Publications of the European Communities**

**L-2985** **Luxembourg**