Source: EURLEX
Language: en
Format: md

No C 68/22 Official Journal of the European Communities 16. 3. 87

Opinion on the proposal for a Council Regulation on a Community action in the field
of telecommunications technologies (RACE) (')

(87/C 68/11)

On 17 November 1986 the Council decided to consult the Economic and Social Committee, under
Article 198 of the EEC Treaty, on the proposal for a Council Regulation on a Community action in the
field of telecommunications technologies (RACE).

The Section for Industry, Commerce, Crafts and Services, was instructed to prepare the Committee's
work on the subject. In the further course of the proceedings the Committee appointed Mr Nierhaus
rapporteur-general.

At its 242nd plenary session (meeting of 17 December 1986), the Economic and Social Committee
unanimously adopted the following opinion:

I. Introduction

1. The Community's R & D policy in the field of
telecommunications dates back roughly to mid-1983. The
aim of the present proposal is to expand this policy and
embody it in an extensive programme. The ESC has
commented on several occasions on individual policy aspects
and projects. The last occasion it did so was in its opinion of
17 September 1986 on the proposal for a Council
recommendation on the coordinated introduction of the

integrated services digital network (ISDN) in the European
Community ( [2] ).

In March 1985 (COM(85) 145) the Commission reported on
an extensive longer-term plan for an R & D programme in
the field of telecommunications technologies (RACE). At the
same time it submitted a proposal for a Council Decision on a
preparatory action (RACE definition phase COM(85) 113).
The ESC commented on both documents last year ( [3] ): in so
doing it gave its basic stamp of approval to the plan.

The new thrust which is to be provided by the present
proposal is meant to establish a strong position on the world
market for the manufacturers of telecommunications

equipment and the users of this equipment in the service
sector. An important prerequisite — and, at the same time, a
tremendous political, technological and financial challenge
— will be the gradual introduction by the mid-1990s
of integrated broadband communications with
Community-wide services. The Community will provide 800
million ECU from its budget for this purpose.

II. General comments

In giving its express approval to the Commission's plan and
proposal, the Committee has been guided in the main by the
following facts and considerations:

(!) OJ No C 304, 28. 11. 1986, p. 2.
( [2] ) OJ No C 328, 26. 12. 1986.
( [3] ) OJ No C 188, 29. 7. 1985.

1. Telecommunications are crucial for the Community's
economic development. The industrial production of
network components (LSI circuits, communications
software, terminals) has a direct influence on the
development of office communications and information
services, which are the key areas of economic growth in the
Community with rates of 8—10%.

2. The Community is still in a good position to compete in
telecommunications exports with the USA and Japan on the
export front but if it does not succeed in maintaining this
position the employment in the Community dependent
thereon will not be able to be safeguarded and expanded. The
number of new jobs created in the EEC by the 500 000
million ECU which will probably be invested in the next
decade in telecommunications infrastructure (including
services and terminals) will depend on the extent to which the
Community succeeds in holding its own on the international
market. If the Community loses ground new jobs will not be
created and existing jobs will be lost as hi-tech imports force
firms to rationalize.

3. In tomorrow's information society the ability to
compete internationally will depend in almost all sectors on
the ability to keep costs down with the aid of modern
information and communication technologies.

4. The division of the Community telecommunications
industry into national markets, with all the stifling effects this
has on supply and demand, will have to be overcome if the
Community is to be able to manufacture cheaply and
compete strongly with its international rivals. RACE can
make a major contribution here if the funds are earmarked
for developments which are likely to bring about the greatest
measure of integration.

III. Specific comments

1. RACE fits in well with the ESPRIT programme.
Whereas ESPRIT concentrates on promoting the
development of basis microelectronic technology and its

16. 3. 87 Official Journal of the European Communities No C 68/23

application in the office and manufacturing, RACE focuses
on communications technology R & D and its aim is to assist
the establishment of a high-performance Community-wide
integrated broadband network. However, there are R & D
sectors in the programmes where some overlapping is feasible
(e.g. projects in Part II of the definition phase). Therefore, a
clear description of the various projects' aims and tasks is
considered by the Committee to be necessary. In this
connection it welcomes the planned exchange of information
between experts working on the different projects; this will
enable them to benefit directly from the results of associated
projects.

2. The Committee would refer in particular to the
problem of the enormous funds which network operators
and the providers of services will have to invest initially in the
construction of an integrated broadband network. Here
special consideration should be given to how to progress
at the same pace throughout the Community without
burdening the taxpayer or the end user unduly with the

costs.

3. Some thought should also be given to the question of
whether it will already be possible at this stage to step up the
advertising and information campaigns about the new and
improved services which the integrated broadband networks
will provide. This concerns both the private and business
sectors, for the costs will be largely determined by the
services' acceptance (i.e. the number of users).

4. The Committee would also point out once again that
the foreseeable social consequences of integrated broadband
networks should be studied alongside the technology and
that remedies should be discussed by the Commission even
though they are bound to be rather hazy at the moment
because of the complicated nature of the technological
changes. The points to be considered are:

— the quantitative and qualitative impact on individual jobs
and the employment market as a whole in the
Community;

— the need to train the requisite personnel in time;

— the protection of personal data and intellectual property,
e.g. software;

— the need for new private services (viewdata, cable
television, video telephone) and their possible
repercussions on society.

Done at Brussels, 17 December 1986.

4.1. Existing and future programmes should be
constantly checked in order to ensure that the development of
new technology and the mastering of its social repercussions
are closely linked.

5. The Committee stresses the need to pay special
attention to the problems resulting from the gradual
switchover from analogue transmission techniques to
narrowband digital networks and, eventually, to the general
introduction of broadband networks. Not unless priority is
given to the problems of high-performance transmission
software and the corresponding interface standards will it be
possible, according to the Committee, to keep to the planned
1995 deadline.

6. The Commitee deplores the fact that the last Council
meeting of the ministers responsible for the internal market
failed to agree on plans for common standards for
information and telecommunications technologies. It urges
the Council to create this long overdue _sine qua non_ for a
successful Community technology policy at the earliest
possible opportunity.

7. The Committee underlines the need to bear in mind

small businesses and universities when orders are placed. The
less developed regions of the Community should also receive
assistance wherever possible in order to avoid disparities
when Community-wide services are established. The STAR
programme should be continued on a larger scale in this
connection.

8. National telecommunications operators, which are
mainly State-controlled, have a key role to play in ensuring
the success of the ambitious programme. Community
projects such as RACE can merely prompt Member States to
integrate their activities. The decisive factor, however, is that
all Member State Governments have the political will to do
everything in their powers to achieve the goal, which is to
establish an operational Community-wide integrated
services broadband network by 1995 and to mobilize all
available human and financial resources to this end.

9. The Committee trusts that in addition to the Council

and the Parliament it, too, will receive the reports provided
for in Article 9 of the proposal.

_The Chairman_

_of the Economic and Social Committee_

Alfons MARGOT