Source: EURLEX
Language: en
Format: md

**COMMISSION OF THE EUROPEAN COMMUNITIES**

**Brussels,** **18.09** **1995**
COM(95)431 final

**COMMUNICATION FROM THE COMMISSION**

**TO THE COUNCIL AND THE EUROPEAN PARLIAMENT**

#### **FUTURE DEVELOPMENT OF THE MARKET IN** **DIRECTORIES** **AND OTHER TELECOMMUNICATIONS INFORMATION** **SERVICES** **IN** **A COMPETITIVE ENVIRONMENT**

**CONTENTS**

**Resume**

**I.** **Introduction**

**II.** **The current regulatory position**

**III.** **Questions raised**

**1.** **Compliance with the rules of competition**

**2.** **Protection of individual privacy and of personal data**

**3.** **Copyright protection**

**4.** **Technological evolution: electronic directories/X500 services**

**IV. Objectives**

**1.** **Provision of** **a** **universal service**

**2.** **General distribution and ease of access**

**3.** **Services of quality**

**4.** **Diversified services with the potential to contribute to the launch of multimedia**

**V. Guidelines adopted**

**1.** **Retention of a universal directory in a competitive environment**

**2.** **Abolition of exclusive and special rights**

**3.** **Conditions governing access and marketing**

**4.** **Promotion of electronic directories and other forms of electronic support**

**5.** **Necessary safeguards: protection of individual privacy and intellectual**
**property rights**

**VI.** **Conclusion**

**RESUME**

Following an examination by the Commission of the current state of the telecommunications
sector, the Council, in its Resolution of 22 July 1993, adopted I* January 1998 as the date for
the liberalization of voice-telephony services for the public, with transitional periods for certain
Member States The directories services, making up as they do the most important means of
access to telecommunications services, will play a central role with regard to the use of
telecommunications services in a competitive environment.

The directories and associated information services sectors lie at the sharp end of
telecommunications and publishing and, in consequence, their development is completely at the
mercy of any changes that may occur in these two sectors. Directories account for a major
proportion of the media and represent 7.5% of the advertising market in the European Union

Drawing on the benefits of the new technologies and, in particular, _of_ the interactivity made
possible by the videotex services, this sector is currently making its debut in the world of
multimedia. As one of the major elements in this new market, it should contribute significantly
to the development of the latter.

Telecommunications directories are supplied in a variety of forms: printed, electronic ("on line"
or CD ROM) or via a telephone hotline. In particular, these services include
"White Pages" (list of subscribers in alphabetical order);
"Yellow Pages" (list of professionals under classified headings),
specialized directories for professional use (selective lists of professionals)

The directories services (in particular the "White Pages" directories) and the telephone
information services play a key role in providing access to the telephone service, so much so
that, traditionally, this type of service has always been closely associated with the provision of
a voice-telephony service and represents one of the basic elements in the universal service

The introduction of a competitive environment in the telecommunications sector requires, on
the one hand, an extension of Community telecommunications rules to include directories and
information services and, on the other hand, the maintenance of a universal directory and an
information service that is easily accessible to all users at an affordable price

Accordingly, the Commission is proposing the following guidelines with a view to developing

this sector:

#### **3**

**1** **Retention of** a **universal directory and a** **telephone** **information service in** a
**competitive** **environment.** In each Member State, users of the voice telephony services
must have at their disposal at least one complete "White Pages" directory containing the
telephone particulars of the subscribers to the fixed and mobile services, while at the same
time having access to at least one information service at marginal cost.

2 **Abolition of exclusive and special rights in the telecommunications directories**
**market** through the elimination of the exclusive or special rights which exist under certain
national regulations These liberalization measures seek to promote the dynamic
development of supply, while at the same time respecting the rules of competition and
taking account, on the one hand, of recent trends in the regulations applicable to
telecommunications services, notably the complete liberalization of fixed voice telephony
services and, on the other hand, of the anticipated development of the trans-European
networks and mobile telephony services in the years to come.

3. **Conditions governing access and marketing.** To the extent that directories services and

other information services for subscribers can no longer be regarded as reserved activities,
access to raw subscriber data, pure and simple, should be provided on the basis of
objective, transparent and non-discriminatory criteria and in accordance with the
Community provisions in force, notably with regard to the rules of competition and the
principles of Open Network Provision (ONP), and the protection of personal data and
individual privacy

4 **Promotion of new technologies (electronic directory, CD ROM and X500 service)**
**and opening-up to multimedia.** By virtue of the facilities already offered by electronic
directories (speed of interrogation on line, continuous updating of data, diversification of
applications), steps should be taken to encourage the development of interconnections
between the various existing services within the Union. Furthermore, the emergence of
electronic media and the interactivity developed through videotex should facilitate the
evolution of directories along multimedia lines

5. **Precautionary measures**

**Protection of individual privacy.** In the context of the provision of directories services,
the protection of personal data must be guaranteed at all times. The processing of personal
data necessary for the implementation of directories services is governed by restrictions
arising from existing national laws and will be subject to Community positions (general
directive and separate directive intended to take account _of_ the specific problems of
telecommunications) In particular, subscribers must be informed _of_ their rights to
protection against all forms of intrusion into their private lives, i.e., the right not to be
included in the directory, right of access and right to correction in respect of data which
concern them, right to oppose the commercialization of data relating to them and right to

limit the use of such data.

**Protection of intellectual property rights.** The benefits of the national and Community
provisions governing copyright should be extended to include directories, pursuant to the
criteria allowing for protection under the regulations currently in force.

In keeping with its desire to define these guidelines more explicitly,' the Commission hereby
presents this communication to the European Parliament and to the Council.

**I.** **INTRODUCTION**

The directories and information services sector lies at the sharp end of telecommunications and
publishing. On the one hand, the directories services and the telephone information services
represent the most important means of access to telecommunications services in a competitive
environment Accordingly, these services will play a crucial role in the context of the total
liberalization of voice telephony services, as laid down by the Council on 1 January 1981 ' with
a view to the creation of an information society in the European Union. [2 ]

On the other hand, directories make up an important section of the advertising market within
the Community. Drawing simultaneously on the benefits of the new technologies and of the
interactivity made possible by videotex in particular, this sector is currently making its debut in
the world of multimedia. As one of the major elements in this new market, it should contribute
significantly to the development of the latter.

Telecommunications directories are supplied in a variety of forms: printed, electronic ("on line"
or CD ROM) or via a telephone hotline. In particular, these services include: [3 ]

the "White Pages" (list of subscribers in alphabetical order);
the "Yellow Pages" (list of professionals under classified headings);
the specialized directories for professional use (selective lists of professionals).

The turnover associated with the sale of advertising in the telecommunications directories
("White Pages", "Yellow Pages" and electronic directories) in the Union is estimated at 3 700
million ecus. [4 ]

An examination of the market on the basis of the various products offered reveals notable
differences. These differences are attributable, on the one hand, to the regulations currently in
force and, on the other, to the very nature of the directories themselves. The following
background information is significant in this connection:

As regards "White Pages" directories in the strict sense (i.e., excluding fax and telex
directories), a close correlation exists between the number of subscribers to the telephone
service and the number of directories distributed, so much so that the degree of penetration
at this market level will inevitably be much higher in countries with a high telephone

Council Resolution of 22 July 1993 on the review of the situation in the telecommunications sector and the need for
further development in that market (OJ No C 213, 6.8.93, p. 1 ).
The Resolution provides for additional transitional periods of live years for Spam, Portugal. Greece and Ireland.
and of two years for the ( iiand Duchy of Luxembourg Spain has since announced that il will adopt 1 January 199X
as its target dale

LTirope and the Planetai\ Information Society, Group of Hminent Persons on the Information Society (Bangemann
Report, 26.5.1994)
hi terms of usage, the "White Pages" cover mainly communications between individuals, the "Yellow Pages" cover
communications between individuals and the professional sector, and the specialized directories are devoted to
communications between specialized professionals.
For more detailed definitions, see "Study on Regulatory and Commercial Aspects related to Telecommunications
Directories and related Publications and Services", report to the European Commission drawn up by Coopers &.
Lybrand, Deloitte, 1992.
The study provides a detailed description of directories and associated services together with information on the
regulatory conditions, markets and technologies applicable to the sector The report will be made available on
request.
Statistics 1992

density than in countries with a much lower density. The "White Pages" directory market
represents approximately 1 100 million ecus.

- As for the "Yellow Pages" directory market, this would amount, in aggregate, to some
2 200 million ecus.

The international fax and telex directories represent a much weaker market (in the region
of 50 million ecus).

As far as the "White Pages" and "Yellow Pages" directories are concerned, the market is still
dominated largely by the public telecommunications operators or by the companies to which
the production and management of these directories has been entrusted. [5] Even in those
Member States where the "White Pages" directory market has been opened up to competition,
developments along competitive lines are still restricted to the "Yellow Pages" directory
segment. As far as the private publishers are concerned, attention is still focused mainly on
specialized directories for professional use.

A number of telecommunications organizations are already offering electronic directory
services through videotex " However, leaving aside the regulatory obstacles still preventing
private providers from entering such a market in several Member States, the development of
directories on these new media is also being slowed down considerably, mainly at the intraCommunity level, because of technical disparities from one Member State to another
(differences in videotex standards). Consequently, the market in electronic directories is still
awaiting development.

Nevertheless, the analyses conducted to date [7] have shown that the growth in directory service
markets should be sustainable, with the market in electronic directories emerging as the most
promising. The market in printed directories should continue to grow, but at a slower rate
However, this rate of growth may continue to exceed that observed more recently in the
United States.

Compared with the other media (press, TV, radio and cinema), expenditure at European Union
level on the purchase _of_ advertising space in the telecommunications directory market
represents some 7 5% of the total revenue.

In several Member Slates, the production and management of the "White Pages" and "Yellow Pages" directories
have been entrusted by the telecommunications organizations to specialized subsidiaries or specialized outside
turns, such as ITT. In Belgium, the firm GTE was recently chosen by the operator
Electronic directory; directory in the form of a database accessible using on-line retrieval techniques and/or
available on CD ROM.

hi the European Union, on-line access is possible in a number of Member Slates through the videotex services. By
far the most important service of this type is the Minitel service in Prance. Originally launched with the intention
of gradually replacing the printed directory, the French Minitel service has rapidly established its reputation,
notably as a result of the success of the electronic directory - a service which, on average, handles more than 40 000
calls a day. Today, with more than 6 million Minitel terminals, the service has far exceeded initial predictions.
The facilities offered are considerable and defy comparison with other directory services, more than 28 million
subscriber entries representing more than 28 000 million characters on a database, daily updates without any
interruption to the service, handling of 20 000 calls simultaneously right round the clock, a response tune of less
than tliree seconds in 98% of cases, traffic revenue totalling 20 million ecus in 1991 (despite the fact that the first
three minutes of consultation are free) and more than 54 million ecus in revenue from advertising.
CT Coopers & Lybrand study referred to above.

The evolution of the market over the short and medium term will depend largely on
developments in the regulatory sector which will need, on the one hand, to ensure the retention
of a universal directory in a liberalized environment, while, on the other, offering the possibility
of exploiting the potential of the directory services market.

**II.** **The current regulatory position**

As regards the current treatment of directory services from a regulatory point of view, three
major categories of country can be distinguished within the European Union:

on the one hand, Member States where the regulations in force accord the network
operators exclusive rights to provide "White Pages" and "Yellow Pages" directory services
(Greece, Italy, Portugal and Spain);

on the other hand, Member States where the regulations, while not stipulating in so many
words that the supply of directories is a liberalized activity or whether access to raw
subscriber data is open to third parties, do not impose exclusive conditions (Denmark,
Ireland, Luxembourg, the Netherlands and the United Kingdom),

lastly, countries which have explicitly opened up this activity to competition (Belgium,
Germany and France)

Irrespective of the existence or otherwise of special or exclusive rights covering activities in
the directories sector, most of the regulations in force impose an obligation to publish lists of
subscribers. This obligation generally involves the publication of "White Pages" directories'
Lastly, Denmark is the only country to have imposed an obligation on the public operator to
publish a "Yellow Pages" directory. Table 1 summarizes the position with regard to each type
of service concerned.

When supply is made compulsory under the regulations in force, such a stipulation is normally
linked to special tariff conditions:

apart from the subscribers who receive free of charge the appropriate "White Pages"
directory in which they themselves figure, as well as a "Yellow Pages" directory
corresponding to the geographical zone covered by their subscription, all subscribers can
obtain the other directories for a catalogue price designed to ensure the widest possible
distribution,

the charge for using the telephone information services is generally calculated in the light of
the basic charge for a local call.

Lastly, it should be noted that the national regulations in force in the majority of Member
States do not stipulate whether the obligatory information contained in the "White Pages"
directory should include, in addition to the telephone data proper, other information covering

Thus, in the United Kingdom, in the case of "White Pages" directones, BT and Mercury are required, in then
relevant spheres of operation, not only to provide details at the request of the other operator of the hitler's
subscribers, subject to an indemnity calculated as a proportion of the additional costs incurred by such a request,
but also to provide a telephone information service.

the other services for which the main station subscriber could also have taken out a
subscription. Belgium and Greece, however, confer exclusive rights on the public operator to
publish directories relating to services other than the basic voice telephony service (ISDN,
telex, fax, messaging), and in Denmark, Luxembourg and the Netherlands the public operator
is obliged to publish a directory which includes subscriber information relating to other services
such as telex and which covers the various services concerned.

At the international level, pursuant to CCITT Recommendation E 114 (International
Telecommunication Union - ITU), exchanges of information between operators in each State
seeking to provide such an information service for their subscribers are usually conducted on a
reciprocal basis. [9 ]

Recently - notably as a reaction to and in preparation for the creation of a competitive
environment for the public telephone service and the expansion of mobile services - an in-depth
debate on the future regulation of the directories market and other related markets, has been
launched in a number of Member States. [10 ]

y

hi the United Kingdom this reciprocity applies to B 1 and Mercury
See in particular:

    - Summary report on the public consultations involving the French telecommunications regulations, organized bv
Bruno Lassèrc, France, March 1994

    - OFTEL Enquiry into Directory Enquiry Services, United Kingdom, March 1994.

    - In Germany a debate has begun on the tariffs applied to the telephone information services
     - In Belgium a debate has begun following BELGACOM's decision to entrust the production and management _v\_
directories to GTE (instead ol the former contractor, ITT).

**Table** **1** **Exclusive and special rights in the directory services sector**

_Source: Coopers_ _& Lybrand_ _study,_ _De_ _loitte (1992)_

Special or
exclusive right

Undefined legal situation

**10**

**Table 2 Obligations to provide directory services**

Luxembourg

_Source: Coopers_ _&_ _Lybrand_ _study,_ _De/oit te (1992)_

Obligation to
supply on the
part of the
public operator

Undefined legal situation

Supply of electronic directory/Minitel

**14**

**III.** **Questions raised**

**1.** **Compliance with the rules of competition**

A general framework for the future development of the sector is provided by the pertinent
rules on competition laid down in the Treaty.

The articles in question are Articles 85 and 86 of the Treaty, in conjunction with Article 90 as
the case may be, prohibiting any practices which might distort competition, whether involving
concerted agreements between operators or publishers or whether constituting an abuse of
dominant position.

**2.** **Compliance with the rules on the internal market**

The general framework for the future development of the sector is also provided by the rules
on the internal market, particularly those on freedom to provide services (Articles 59 et seq.),
freedom of establishment (Articles 52 et seq.) and the free movement of goods (Articles 30 et
seq.).

**3.** **Protection of individual privacy and of personal data**

A distinction must be drawn between those Member States which have no specific legislation
on the subject and those Member States which have introduced regulatory provisions designed
specifically to protect privacy and personal data. As for the second group, significant
differences can be observed among those countries that have introduced rules on protection.

These differences constitute an obstacle to the development of directories compiled on a panEuropean basis owing to:

_ on the one hand, the difficulties encountered when transmitting data to other Member
States;

_ on the other hand, the potential repercussions of these disparities on competition, whereby
operators and directory publishers could be subject to widely differing constraints from one
country to another.

The Community is creating a common framework for data protection and the protection of
privacy in the Union in order to remove the abovementioned obstacles (see Section V.5).

**4.** **Protection of intellectual property rights**

In the matter of protection of intellectual property rights, significant differences in legal
approach from one country to another make it impossible to provide the same kind of directory
protection in all Member States.

In the absence to date of a common approach in the areas in question with a view to promoting
the adoption by each of the Member States of equivalent rules on protection, such differences

**12**

have discouraged - or even hampered - the development of directories, particularly where the
latter make use of the new media. However, on 10 July 1995, the Council has adopted a
common position on the proposed directive on legal protection of data bases which is likely to
make a difference in this area (see V.5)

**5.** **Technological evolution: electronic directories/X500 services**

In spite of the development of videotex access (particularly in France), the sum total of
subscribers do not yet have at their disposal facilities capable of providing genuine electronic
directory services on a pan-European basis.

At present, two factors appear to lie at the root of tfie absence of an electronic directory
accessible to all subscribers throughout the European Union:

continuing difficulties involving distribution and access to information sources;
absence at present of a standard interface recognized by all operators for the facilitation of
interconnections between services.

In order to comply with the requirements and specific characteristics of the networks, and
taking into account the different protocols used in this sector, the CCITT has developed an
internationally compatible standard to permit the development of several applications.
Recommendation X 500, the outcome of close collaboration between the CCITT and the ISO,
should make it possible to interrogate data bases on the existing electronic directories. This
standard defines the structure and type of directory used as well as certain services offered to
users together with the relevant protocols. Potentially, this standard could be used for X 400
and Electronic Data Interchange (EDI) applications and, above all, for the consultation of
electronically accessible "White Pages" and "Yellow Pages" telecommunications directories,
irrespective of whether the services were offered on a national or international basis.

At present, because of the different types of protocols used for the various networks and
services, the CCITT has drawn up a number of recommendations." A number of
telecommunications organizations have adopted the T/Tph 28 specification. [12] A Memorandum
of Understanding has been drawn up for signature by any European organization wishing to
promote international information services based on access standard T/Tph 28 or on any other
recognized access protocol.

Among these Recommendations, particular mention may be made ol the following:

12

- Recommendation 1- 163 applicable to telephone networks (numbering and addressing) using 12-digit numeric
protocols.

- Recommendation X 121 applicable to data networks using 14-digil protocols;

- Recommendation X 400 applicable to messaging services using alphanumeric protocols.
Specification diawn up bv the CIIFT (lùiropean Conference of Postal and Telecommunications Administrations)
with a view to facilitating cooperation in the field of directories. Other specifications ("proprietary systems") are
also in use in several Member States.

_H_

**IV.** **OBJECTIVES**

**1.** **Provision of a universal service**

This Objective seeks to provide users with at least one complete list of subscribers [13] in each
Member State, thus giving them access to a minimum amount of information on subscribers
throughout the Union. [14 ]

The Commission recognizes and endorses the aim of preserving the universal character
ascribed to the "White Pages". [15] As.a minimum requirement, provision must be based on two
types of criteria:

_ criteria relating to content in respect of the information made available to users,

criteria relating to geographical coverage in respect of the distribution and accessibility _of_
the services provided

For the initial compilation of the complete list, a minimum amount of information would be
required.

Directories compiled on the basis of this list and intended for use by the public should also
contain information of prime importance to users, notably details of the emergency services,
including the single European emergency call number 112, as envisaged or already
implemented. [1] - They should also contain useful instructions to facilitate the use of the
service(s) provided by the telecommunications organizations. [17 ]

Lastly, other information could be included on an optional basis. If a telecommunications
organization distributing a complete list chooses to include information on the various facilities
or other services that it offers, e.g. in an introductory section, it must offer this facility to any
competitor on terms which are transparent, non-discriminatory and based on objective
criteria. [18 ]

'- Including all subscribers of all operators to the extent that they have not requested to remain unlisted m the public
directory (see point V.5)

**14**

The Commission Statement (OJ No C 48, 16.2.94, p. 8) supplementing the Council Resolution of 7 1 ebruaiv I 994
on universal service principles in the telecommunications sector (OJ NoC48, 16.2.94, p. 1) makes provision for
users to be provided with directories covering the public telephone service.

    - See also the survey on the future regulatory framework in France: "A consensus has emerged acknowledging thai a
universal directory should contain details of all subscribers to the fixed telephone services, thus avoiding the need
to consult a multiplicity of sources in order to track down a correspondent. While certain people may question the
feasibility and advisability of including subscribers to the mobile services, the gradual growth in the numbers of
such subscribers and the development of the use of personal communications fully justify their inclusion." Ci
Summary Report referred to above, France, 1994.
See Council Decision of 29 July 1991 on the introduction of a single liuropean emergency call number
(91/396/EHC, OJ No L 217/31, 6.8.1991 ).

**17**

The directories should also contain the following information:

    - year of publication;

    - name and address of the publisher,

    - where appropriate, name and address of the publications manager.

**18**

Information on the various facilities or other services offered by a telecommunications organization distributing a
complete list, subject to the proviso that all such information, generally set out in the form of an introductory
section, could not be used for purposes other than the provision of information to the user and. under no
circumstances, for the purposes _oï_ promoting - through the insertion of advertising material, for example

**14**

**17**

**18**

**14**

Information on dedicated services or services connected to specific networks (e.g., telex) could
be assigned to separate directories, as is already the case at present

**2.General** **distribution and ease of access**

This objective should be realized as follows:

_ first of all, within each Member State, through the production and distribution of complete
and efficient "White Pages" directories of high quality, offering easy access and availability
to all users and including subscribers to the switched public services, whether fixed or
mobile, and supplied either on a monopoly or a competitive basis;

secondly, within the entire European Union, through the provision of facilities offering
users rapid access to complete and reliable information, wherever they happen to be in the
Community. Thus, each producer of directories should have access to the complete lists of
subscribers available in every Member State, so as to be in a position to offer a genuine
pan-European "White Pages" directory service and provide the user with a tangible way of
obtaining the information he requires:

   - either through the operator telephone inquiry service;

   - or through the existing electronic directories in the various Member States.

**3.** **Services of quality**

The objective should be to develop an efficient service to promote the development and
improvement of the directory services for the benefit of users.

In particular, this means that every effort should be made to ensure an adequate level of quality
in the directory services sector. [19 ]

Whatever form they take, directories will need to be updated regularly.

As regards costs and t le determination of prices for the marketing of the subscriber lists, the
tariff principles set out in Directive 90/387/EEC [20] should be applied (see Section V.3).

**4. Diversified services with the potential to contribute to the launch of**
**multimedia**

**19**

**20**

equipment or unreserved services peculiar to the telecommunications organization providing the "White Pages"
directory service.
As far as quality is concerned, the publisher should make a particular effort to:

 - verify the accuracy ol the information reproduced;

 - use only those fonts that are sufficiently legible,

 - ensure that the information is set out as clearly as possible.
Council Directive of 28 June 1990 on the establishment of the internal market for telecommunications services

through the implementation of open network provision (90/387/EEC; OJ No L 192/1, 24.7.90) (ONP Framework
Directive)

_**<Lf**_

**While ensuring the continued provision of a universal service based on the availability of a**
**complete list of subscribers in each Member State, it is also desirable that steps be taken to**
**promote the development of diversified services:**

**_** **which meet the needs of** **a** **fully developing telecommunications market;**
**_** **which are capable of developing in line with demand and are therefore adapted to the**
**needs of the users;**
**which** **fill** **existing gaps, notably with regard to pan-European and specialized directory**
**services;**
**which draw on the new technologies and electronic media.**

**In this way, the diversification of demand through the opening-up to competition should help**
**not only to stimulate the development of new products capable of establishing their own**
**separate identity** _**vis-à-vis**_ **the traditional directories (both in terms of** **their** **presentation and the**
**medium chosen for the dissemination of the information contained therein) but also, through**
**the use of the new technologies and the introduction of interactivity, to stimulate the**
**development of multimedia.**

**V.** **GUIDELINES ADOPTED**

**The general framework for the future development of the telecommunications sector in the**
**Union has been set out in Resolution** **93/C213/01** **of 22 July 1993** **[21]** **laying down a timetable for**
**the total liberalization of the public telephone service by** **1 January 1998 and in**
**Resolution** **94/C48/01** **of** **7 February** **1994** **on** **universal** **service** **principles** **in** **the**
**telecommunications sector."**

**In the European context, the legal basis for the production and distribution of directories and**
**associated services is laid down in the Treaty.**

**To the extent that a directory is both a product and a service, Articles 30 to 34 and Articles 36,**
**59 and 60 of the Treaty relating to the free movement of goods and the freedom to provide**
**services, respectively, and Article 129a of the Treaty relating to consumer protection must be**
**applied in full.**

**Also applicable are the provisions of the Treaty relating to competition and, in particular,**
**Articles 85 and 86 of the Treaty relating to concerted agreements and the abuse of dominant**
**position,** **[23]** **as well as Article 90.**

**Lastly, the regulatory framework at Community level is defined in the light of the principles**
**and provisions set out in Directive** **90/387/EEC** **[24]** **(ONP Framework Directive), to the extent**

**22**

**23**

**24**

Council Resolution of 22 July 1993 on the review of the situation in the telecommunications sector and the need for
further development in that market (OJ No C 213,6.8.93, p. 1 ).
Council Resolution of 7 February 1994 on universal service principles in the telecommunications sector
(94/C48/01), (OJ No C 48, 16.2.94, p. 1).

Commission Statement concerning the Council Resolution on universal service principles m the
telecommunications sector (94/C48/06), (OJ No C 48, 16.2.94).
Cf. Guidelines on the application of EEC competition rules in the telecommunications sector (OJ No C 233,
6.9.91).
Council Directive of 28 June 1990 on the establishment of the internal market for telecommunications services

through the implementation of open network provision (90/387/KHC, OJ No I. 192 24.7.90. p. I ).

16

that this Directive applies to voice telephony and associated services, as well as to data
transmission services, Integrated Services Digital Network (ISDN) services, mobile services
and telex services. [25 ]

In particular, this concerns the application of the basic principles underlying
Directive 90/387/EEC, viz.

that the conditions governing access to the services in question must be based on
objective criteria, must be transparent and published in the appropriate manner and must
guarantee equal access on a non-discriminatory basis, in accordance with Community law;
that the tariffs must be based on objective criteria and must, in principle, be cost-oriented.

Lastly, account must be taken of other directives having major implications for the future
development of directories. This applies, in particular, to directives or proposals for directives
relating to data protection, distance selling, the protection of computer programs and the legal
protection of data bases. [2] "

Taking account of this prescribed framework, of the principal objectives of Union policy in the
telecommunications sector as defined, in particular, in Resolution 93/C213/01 and
Resolution 94/C48/01 and of the developments that have occurred in the field of
telecommunications, the Commission proposes the following guidelines for Community policy
in this sector:

**1.** **Retention of a universal directory in a competitive environment, i.e.,**
**complete list of subscribers to the fixed and mobile telephone services**

This guideline is based on the Union's general objectives as regards the provision of a universal
service in the telecommunications sector, as defined in Resolution 93/C213/01.

The "White Pages" directory service is traditionally "linked" to the provision of a universal
service, as emphasized in the Commission statement on Resolution 94/C48/01.

In particular, users of the voice-telephony service in each Member State should have at their
disposal at least one complete "White Pages" directory listing the telephone particulars of the

**25**

**26**

See the Commission conummication to the European Parliament and to the Council on the current position and
future approach with regard to open access to telecommunications networks and services (Open Network
Provision).
See:

 - Directive of the European Parliament and the Council of 24 July 1995 on the protection of individuals with
regard to the processing ol personal data and on the free movement of such data.

 - Amended proposal for a Directive concerning the protection of personal data and privacy in the context ol
digital telecommunications networks, in particular the Integrated Services Digital Network (ISDN) and the
digital mobile network, COM(94) 128//W, 13.6.1994.

 - Amended proposal for a Council Directive on the protection of consumers in respect of contracts negotiated at a
distance, COM(93)396//W, 7.10.93.

 - Council Directive of 14 May 1991 on the legal protection of computer programs (91/250/EEC, OJ No L 122,
17.5.91, p. 42).

 - Proposal for a Council Directive on the legal protection of data bases _COM(92)24_ _final,_ OJ NOC 156 of
23.6.1992, P.4, modified proposal (COM )93) 464 final, OJ NOC 308 of 15 11.1993, P. I, common position of the
Council of 10.07.1995

**4>**

**subscribers to the fixed and mobile services, while at the same time having access to at least**
**one information service at affordable prices.**

**Steps must be taken to ensure that telecommunications services subscribers and users have**
**access to the minimum amounts of information needed by them in the context of these services.**
**Accordingly, while extending to all Member States the principles of opening up the directories**
**market to competition, the national regulatory authority in each Member State will also be**
**responsible for ensuring the availability of at least one universal directory containing a**
**complete list of subscribers to the voice-telephony services, including subscribers to the mobile**
**services.** **[27 ]**

**2.** **Abolition of exclusive and special rights**

**Resolution** **93/C213/01** **provides for the complete liberalization of the telephone service for the**
**public by 1 January 1998. At present, at the regulatory level, the exclusive and special rights**
**still accorded to the telecommunications organizations with regard to the public voice-**
**telephony service between fixed points have been extended in several Member States to**
**subscriber lists produced and distributed by these telecommunications organizations.**

**The Commission is of the opinion that, even before that date** **( 1** **January** **1998)** **- to the extent**
**that Member States currently maintain exclusive and special rights in the field of directory**
**services -, such special and exclusive rights are contrary to the rules of competition, given that**
**they involve unjustified extensions of exclusive or special rights recognized only in the case of**
**the public telephone service, as defined in Directive** **90/388/EEC.** **[28 ]**

**Even if one takes the view that, in the current state of the development of the**
**telecommunications sector, the provision of a universal voice-telephony network and service**
**could constitute a service of general economic interest within the meaning of Article 90(2) of**
**the Treaty justifying the granting of exclusive** **and** **special rights both now and - pursuant to**
**Resolution** **93/C213/EEC** **of 22 July 1993 - until 1 January 1998, the extension of such rights**
**to the directories services nevertheless cannot** **be** **justified.** **[29 ]**

**27**

28

29

Procedures to be decided by the national regulatory authority, subject to compliance with Community rules, pending
the proposals which the Commission is required to draw up before 1 January 1996 pursuant to
Resolution 93/C213/01 with a view to achieving the total liberalization of the public voice-telephony services by
1 January 1998.
Commission Directive of 28 June 1990 on competition in the markets for telecommunications services
(90/388/EEC; OJ No L 192/10, 24.7.1990).

The Directive defines the "voice telephony service" as "the commercial provision for the public of the direct
transport and switching of speech in real-time between public switched network termination points, enabling any
user to use equipment connected to such a network termination point in order to communicate with another
termination point."
Under the consistent case-law of the Court of Justice, an undertaking enjoying a legal monopoly must be regarded
as occupying a dominant position within the meaning of Article 86 of the Treaty, and the territory of the Member
State to which such a monopoly is extended is likely to constitute a substantial part of the common market
(Judgments of 23 April 1991, Klaus Homer and Fritz Elsner/Macrotron GmbH, C-141/90, Reports p. 1-1979, point
28, of 18 June 1991, ERT, C-260/89, Reports p. 1-2925, point 31 and of 13 December 1991, RTT/GB-lnno-BM C18/88, Reports p. 1-5941, point 17).

According to the case-law of the Court in the RTT/GB-lnno-BM case, the extension - without objective need and
in the form of State measures - of a legal monopoly, on the grounds that it is a public service of general economic
interest, to ancillary activities or neighbouring markets constitutes a violation of Article 90 in conjunction with
Article 86 of the Treaty (Judgment of 3 October 1985, CBEM, 311/84, Reports p. 3261, point 27, RTT/GB-lnnoBM case, points 18 to 24).

**18**

**There is no objective justification whatsoever for the retention of special or exclusive rights in**
**the directories sector, given that such a service can be provided by any undertaking, without**
**prejudice to the provision of a universal telecommunications network and without posing any**
**threat to the financial equilibrium of the telecommunications organizations charged with**
**providing such a network. It follows from this that special or exclusive rights in the field of**
**directories services are incompatible with Article 86, in conjunction with Article 90, and should**
**therefore be abolished. The Commission therefore reserves the right to initiate henceforth**
**measures appropriate to that end.**

**3.** **Conditions governing access and marketing**

**As regards the conditions governing access to raw data held by the operators, the rules of**
**competition and the general principles laid down in Directive 90/387/EEC shall apply, to the**
**extent that such raw data derive from, and are closely linked to, the activities covered by the**
**principles set out in this Directive. In particular, this applies to the raw data held by the**
**operators in their capacity as providers of a voice-telephony service.**

**Above all, the conditions of** **access** **must be based on objective criteria, must be transparent**
**and published in the appropriate manner and must guarantee equal access on a non-**
**discriminatory basis. The tariff conditions under which this information is made available by**
**the owners and the transfer or marketing of subscriber lists must comply with the rules of**
**competition** **[30]** **and with the tariff principles set out in Directive 90/387/EEC.** **In** **particular, the**
**following principles shall apply:**

**_** **the conditions of sale will have to be fair and will have to be applied in a non-**
**discriminatory manner;**

**the tariffs will need to be based on objective criteria and must be cost-oriented,**

**_** **tariffs will need to be transparent, which in turn implies the application of an appropriate**
**and transparent system of cost accounting.**

**In cases where the production, management and/or marketing of directories or associated**
**services form part of the overall activities of the operators of the networks and the public**
**telephone system or other related services, adequate transparency must be assured, notably in**
**the area of accounting, so as to guarantee that the competing providers of directories or**
**associated services can operate under objective, transparent and non-discriminatory conditions.**

**30**
Cf. abovementioned guidelines on the application of Community competition rules in the telecommunications

sector.

As possible examples of contraventions of Treaty rules, and hence abuse of dominant position, attention should
be drawn to instances of refusal by a telecommunications organization to provide access to raw data held by them
on subscribers, refusal to insert advertising literature for competitive telecommunications products or services, or
imposition of inequitable conditions on such advertisements so as to create a situation of discrimination or
competitive disadvantage.

In addition, the conclusion of a contract of sale must not involve the acceptance of additional services that are not
linked to the actual object of the contract.

13

**In certain cases, a separation of activities in the directories sector (i.e., through the creation of**
**a subsidiary) may prove necessary, in order to provide the requisite degree of transparency in**
**relation to the other activities of the telecommunications organization.**

**4.** **Promotion of electronic directories and other forms of electronic**

**support**

**Occupying as they do a position at the forefront of publishing and telecommunications, the**
**directories must be afforded the benefits of technological advances achieved to date, and**
**conditions must be created to facilitate the development of these services on new forms of**
**electronic support.**

**To cite an example, the Minitel service in France has** **demonstrated** **the potential of such a**
**development.**

**The promotion of electronic support systems will be greatly facilitated by the opening-up of**
**the market to competition, whereby new entrants will have an opportunity to propose**
**innovatory directory services, particularly in areas where gaps currently exist in the pan-**
**European services, specialized services and on-line research services (electronic directory and**
**CD ROM), thus diversifying and galvanizing the traditional directories market in its entirety.**

**The use of the new information and communications technologies should contribute**
**significantly to the evolution of the directories market in the direction of the multimedia**
**market, thus facilitating user access to the plethora of services which will be coming on stream.**

**This transformation will depend, in particular, on how the new technologies and electronic**
**media are used in order to promote:**

**ease of access;**
**_** **simplification and harmonization of the modes for interrogating the directory databases;**
**_** **diversification of supply, providing users with access to new functions and electronic**
**media, notably interactivity (on-line research) and new forms of support such as**
**CD** **ROM)**

**With a view to developing the provision of such services, the promotion of new forms of**
**support must be encouraged by reinforcing the measures already undertaken under the**
**Community programmes in the field of information and communications services, e.g.,**
**programmes concerning videotex, electronic data exchange and the promotion of databases**

**and on-line services.**

**The main framework for these activities is the programme for the implementation of the**
**information services market (IMPACT programme).** **[31 ]**

**In the context of the implementation of open access to the network (Directive** **90/387/EEC),**
**the Commission will also look at the question of issuing specific standardization mandates to**
**the competent organizations (ETSI and/or CEN-CENELEC) with a view to facilitating the**
**interconnection of new services as well as access to such services.**

3 1 IMPACT programme II, OJ No L 377, 31.12.1991.

**20**

**5.** **Necessary safeguards : protection of individual privacy and intellectual**
**property rights**

The essential safeguards to be upheld during the transition of the directories and associated
information services market to a competitive environment concern the protection of personal
data and individual privacy and also copyright protection.

**Protection of individual privacy**

The Directive and the proposal on data protection and the protection of individual privacy seek
to establish a high level of protection for data and individual privacy throughout the Union and
lay down a coherent framework to promote the achievement of this objective. [32 ]

Thus, Article 11 of the proposal for a Directive on the protection of data of a private nature
and the protection of privacy in the context of public digital telecommunications networks
stipulates that:

data of a personal nature contained in a directory must be kept to the minimum amount
strictly necessary to identify an individual subscriber, save where the latter expressly
requests the publication of additional data of a personal nature;
_ subscribers are entitled, without charge, to request non-disclosure of their sex,
_ subscribers have the right to request, without charge, that their details should not be
included in public directories.

Moreover, these provisions give the persons concerned the right to access and correct data, as
well as the right to oppose the transfer of use of data, such as contained in directories, for
promotional purposes of any kind.

**Protection of** **intellectual** **property rights**

Steps must be taken to ensure that the principles set out in the Directives or proposals for
Directives on the protection of programs and databases in the directories sector are properly
applied and, where appropriate, extended.

This applies, in particular, to: [33 ]

the protection of computer programs through the application of the Council Directive of

14 May 1991;
the legal protection of databases through the application of the principles inherent in the
proposal for a Council Directive of 15 April 1992 (common position of the Council of

10.07.1995);

In its action plan [34] of 19 July 1994 on the implementation of the information society in Europe,
the Commission also announced the publication in 1995 of a Green Paper on intellectual

**32**

**33**

Directive of the European Parliament and the Council of 24 July 1995 and proposal for a Directive COM(94)128, as
referred to above.

Directive 91/250/EEC and proposal for a Directive COM(92)24, COM (93) 464, as referred to above.

**21**

**property rights. The Green Paper on intellectual property rights in the Information Society has**
**been adopted on** **19** **July** **1995** **[ 3 5 ]**

**VI.** **CONCLUSION**

**Following an examination by the Commission of the current state of the telecommunications**
**sector,** **the** **Council adopted 1 January 1998 as the date for the liberalization of public**
**telephony services in the European Union, with additional transitional periods for certain**
**Member States.**

**Directories will be the obligatory gateway for users wishing to gain access to the services**
**opening up in the telecommunications and multimedia services sector.** **The aim of the**
**proposed guidelines is to ensure, on the one hand, the retention of a universal directory in a**
**competitive environment and to promote, on the other, directory and associated information**
**services which are better adapted to the needs of users, more easily accessible and of a higher**
**quality.**

**The Commission will pursue the implementation of the guidelines outlined above,**
**incorporating them, where appropriate, in proposals to be presented to the European**
**Parliament and to the Council by 1 January 1996 in accordance with Resolution** **93/213/01,** **in**
**order to prepare for the 1998 deadline.**

**Against this background, the Commission hereby presents this communication to the European**
**Parliament and to the Council.**

34

Europe's way to the information society - An action plan, COM(94)347/»na/, 19.7 1994.
3 5 COM (95) 382 final.

**22**

##### **ISSN 0254-1475**

## **COM(95) 431 final**

# **DOCUMENTS**

### **EN 16** **Catalogue number : CB-CO-95-473-EN-C** **ISBN 92-77-93435-2**

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

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