CELEX: 51988PC0336
Language: en
Date: 1988-06-21
Title: PROPOSAL FOR A COUNCIL RESOLUTION on the Development of the Common Market for Telecommunications Services and Equipment up to 1992 (presented by the Commission)

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COM (88) 336
Vol. 1988/0124
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM ( 88) 336 final
  VERSION NON REVISEE                              Brussels , 21 June 1988
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                    PROPOSALFOR AA COUNCIL
                                        COUNCIL RESOLUTION
                                                RESOLUTION
              on the Development of the Common Market for
        Telecommunications Services and Equipment up to 1992
                         ( presented by the Commission )
 ---pagebreak---                                  SUMMARY
In June of 1987 , the Commission launched a broad debate on the future
of telecommunications in the Community , with the publication of its
Green Paper on the development of the sector (" Towards a Dynamic
European Economy - Green Paper on the Development of the Common Market
for Telecommunications Services and Equipment ", ( COM(87)29Q ) ) . In
February 1988 , the Commission proposed priorities of action and a
schedule for implementation (" Towards a Competitive Community-wide
Telecommunications market in 1992 - Implementing the Green Paper on the
Development of the Common Market for Telecommunications Services and
Equipment , ( COM(88)48 ) ) .
In the meantime , the debate now seems to have sufficiently progressed
to allow the formal definition of the principal objectives which should
provide the political framework , within which actions can develop on a
firm political basis . This is the purpose of the proposed Resolution .
 ---pagebreak---                                                           page  2
EXPLANATORY MEMORANDUM
In June of 1987 , the Commission launched a broad debate on the
future of telecommunications in the Community , with the
publication of its Green Paper on the development of the sector
 ( " Towards a Dynamic European Economy - Green Paper on the
Development of the Common Market for Telecommunications Services
and Equipment ", ( COM ( 87 ) 290 ) ) . In February 1988 , the Commission
proposed priorities of action and a schedule for implementation
( " Towards a Competitive Community-wide Telecommunications market
in 1992 - Implementing the Green Paper on the Development of the
Common Market for Telecommunications Services and Equipment ,
( COM ( 88)48 ) ) .
In the meantime , the debate now seems to have sufficiently
progressed to allow the formal definition of the principal
objectives which should provide the political framework , within
which actions can develop on a firm political basis . This is the
purpose of the proposed Resolution .
As set out in the Green Paper , telecommunications have grown into
a horizontal infrastructure for the whole of the economy : both
industry and services . Several factors have combined to generate
this revolution in the basic conditions of the telecommunications
sector    :
       the speed and the wide range of technological advances :
       network digitisation , optical cables , computer networks ,
       mobile telephony , satellites ;
 ---pagebreak---                                                     page  3
    the expanding range of new forms of access to sources of
     information : data bases and banks , knowledge banks , image
    banks , expert systems ;
    the explosive growth in telecommunications requirements :
    financial and commercial transactions , research networks ,
    international tourism , world-wide interdependence ;
    the growing importance of scale effects in industry and
    services , particularly in R&D .
The current wave of technical innovation resulting from the
convergence of telecommunications technology has led to reviews in
all Member States , and at world-level , of the future organisation
of the telecommunications sector and its necessary regulatory
adjustment .
The Commission 's recent global study on the benefits of the 1992
objective (" The economics of 1992 - an assessment of the
potential effects of completing the internal market of the
European Community ", European Economy , nr . 35 , March 1988 ) has
confirmed that the development of the Common Market for
telecommunications services and equipment now promises major
savings and improvement of competitiveness throughout the economy .
The Commission 's proposed regulatory positions for liberalisation
have been set out in the Gr een Paper on the Development of the
Common Market for Telecommunications Services and Equipment . The
Green Paper builds on the action plan in telecommunications
launched in 1984 . It aims at building consensus on the major
regulatory questions which the Community is facing in the
telecommunications sector due to the fundamental technological
change occurring at present .
 ---pagebreak---                                                     page  4
Since the issuing of the Green Paper in June of last year , a broad
reaction from more than 50 organisations has been received : user
organisations , Telecommunications Administrations , trade unions ,
telecommunications industry , data processing industry . There have
been in-depth discussions of the paper in the Senior Officials
Group on Telecommunications and with the Director Generals of
Telecommunications Administrations .
At the same time , a wide-ranging discussion has got underway at
the political level .
The Ministers reponsible for telecommunications in the Member
States discussed the issues raised in the Green Paper and the
proposed policy orientations at an informal meeting in Berlin on
28 April 1988 , taking account of the results of the in-depth
consultations which had taken place , and gave general support to
the orientations proposed . This draft Resolution takes full
account of the Presidency 's conclusions at this meeting .
The Ministers responsible for industry , at their meeting of 27 May
1988 , emphasized , according to the Presidency 's conclusions , from
an industrial point of view the overall objective of the
development of the common market for telecommunications services
and equipment . They further stressed the need to ensure that ,
together with the advantages especially for the users ,
liberalisation is conducted in such a way that European industry
will fully benefit .
The European Parliament initiated debate on the Green Paper in a
number of committees , according to the different perspectives
involved ( 1 ).
( 1 ) Draft report on posts and télécommunications , Committee on
      Transport , document PE 118.194 ;
      Opinion for the Committee on Transport on the organisation of
      a European telecommunications network , Committee on Energy ,
      Research and Technology , 18 March 1988 , document PE 119.371
      A draft opinion is in discussion in the Committee on Economic
      and Monetary Affairs .
 ---pagebreak---                                                     page  5
The Economic end Social Committee adopted its opinions on the
issues raised on 18 November 1987 , and on 27 April 1988 ( 2 ).
From the debate , the consultations and the opinions expressed , the
Commission finds a very broad consensus on four fundamental
points :
-     regulatory change is inevitable due to the change in
      technology . The Community must move towards a more
      competition-orientated environment , particularly in the
      terminal and services field ;
      regulatory changes are underway in all Member States . This
      means that the Community must develop a common understanding
      concerning the European context of these evolutions ;
      the fact that the deadline of December 1992 is only four and a
      half years from now , means that where common orientations are
      necessary at, the European level , these must be defined now and
      that it will need intensive common effort , according to a well
      planned time schedule , in order to implement the necessary
      measures ;
      the Community-wide market must be based on Community-wide
      network integrity , which requires an intensification of
      co-operation between the Telecommunications Administrations on
      the co-ordinated introduction of networks and services , in
      line with market developments and competition rules . This
      process should also serve to promote a strong presence of
      European industry in this field .
( 2 ) Opinion of the Economic and Social Committee on COM ( 87 ) 290 ,
      18 November 1987 , OJC 356 , 31.12.1987 .
      Opinion of the Economic and Social Committee on COM ( 88 ) 48 ,
      27 April 1988 , document CES 458/88 .
 ---pagebreak---                                                   page  6
While the discussions and opinions reveal broad support for the
general approach proposed and for the policy targets set out , it
has also become clear that the pursu it of these targets must
evolve within the gener al f ramework which Community policy sets :
    creation of a social environment for the future development of
    telecommunications , in keeping with the Community 's overall
    aim of creating a common economic and social area by 1992 .
    Building up the dialogue between the social partners is
    particularly important in this context .
    developing Community cohesion in this area and ensuring full
    integration of the less-favoured regions of the Community into
    the emerging Community-wide market .
    This should include examination , within the context of overall
    Community priorities , of the case for further extension of
    funds available for this purpose , bearing in mind the progress
    of the STAR programme ;
    taking full account of the external effects and working out
    common positions on those international telecommunications
    questions relevant to Community policy .
The Commission fully agrees with the importance allocated to the
social , regional , industrial and external dimension .
Telecommunications policy must be seen within the global context
of the Community 's objectives .
 ---pagebreak---                                                    page  7
From its side , the Commission has announced in COM(88)48 that it
intends , according to its duties , to pursue , with full commitment ,
the fulfilment of the objectives in this sector which is central
to the Community 's future development , by " applying the Treaty 's
competition rules and by submitting proposals to Council as
appropriate ( 3 ), as well as by providing the Community framework
as a focus for policy formulation ".
The proposed Resolution is to create such a framework and to
transform the emerging broad consensus into a concrete framework
for action . It sets out major policy targets which have found
general support .
It recalls that Community telecommunications policy as implemented
since 1984 by the Council on proposals by the Commission , with
broad support from the European Parliament and the Economic and
Social Committee , has established a firm basis which will
facilitate the attainment of the policy goals set out .
The draft emphasises the importance of achieving the objectives
set out up to 1992 , according to a firm action programme and a
strict time schedule , as proposed by the Commission in COM(88)48 .
Finally , it stresses the importance of rapid action by the
Council , the European Parliament and the Economic and Social
Committee on the detailed proposals to be brought forward by the
Commission .
( 3 ) The full schedule of measures proposed by the Commission is
      set out in COM(88)48 .
 ---pagebreak---                                                   page  8
The overriding objective must be to " develop the conditions for
the market to provide European users with a greater variety of
telecommunications services , of better quality and at lower cost ,
affording Europe the full internal and external benefits of a
strong telecommunications sector " and " the development in the
Community of a strong telecommunications infrastructure and
efficient services ".
The proposed Resolution takes full account of the broad range of
comments received and , in particular , of the conclusions of the
informal meeting of the Ministers responsible for
telecommunications in Berlin on 28th April 1988 , and of the
Ministers responsible for Industry in Brussels on 27th May . The
Commission considers that , at this stage , the general consensus on
advancing rapidly towards a Common Market for telecommunications
services and equipment up to 1992 should be expressed in a formal
way , in order to generate the necessary political commitment .
The Council is therefore invited to adopt the attached proposal
for a Resolution .
 ---pagebreak---                                                      page  9
                               PROPOSAL FOR A
                             COUNCIL RESOLUTION
                on the development of the Common Market for
          Telecommunications Services and Equipment up to 1992
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Economic
Community ,
Having regard to the proposal from the Commission/
Whereas the Commission has submitted a Green Paper on the
Development of the Common Market for Telecommunications Services
and Equipment ( COM(87)290 ) dated 30th June 1987 and a
Communication on the Implementation of the Green Paper up to 1992
( COM(88)48 ), dated 9th February 1988 ,
Whereas the Economic and Social Committee has established opinions
on COM ( 87 ) 290 and COM(88)48 ( 1 ),
Whereas the strengthening of European telecommunications has
become one of the major conditions for achieving the Community¬
wide market for goods and services in 1992 ;
Whereas , as set out in the Green Paper , the current wave of
technical innovation resulting from the convergence of tele¬
communications and computer technology has led to reviews in all
Member States , and at world level , of the future organisation of
the telecommunications sector and its necessary regulatory
adjustment ;
( 1 ) Opinion of the Economic and Social Committee on COM ( 87 ) 290 ,
      18 November 1987 , OJC 356 , 31.12.1987 .
      Opinion of the Economic and Social Committee on COM ( 88 ) 48 ,
      27 April 1988 , OJC ....
 ---pagebreak---                                                    page  10
Whereas the public service tasks of the administrations or private
operating agencies recognised in the Community and providing
public telecommunications services , hereinafter referred to as the
 'Telecommunications Administrations' , which must be maintained ,
should be carried out in accordance with the obligations of the
Treaty , in particular the rules on competition ;
Whereas safeguards must be accepted , in order to maintain the
capability of Telecommunications Administrations to develop
networks and services ;
Whereas the justification of continued exclusive provision or
special rights where they exist , must be weighed carefully against
the restrictions which this may impose on those connnected to the
network concerning present and future application for their own
use , shared use , or provision to third parties , taking account of
the fact that the development of trade must not be affected to
such an extent as would be contrary to the interests of the
Community ;
Whereas a more liberal and flexible competitive environment for
telecommunications equipment and telecommunications services
in particular value-added services - is indispensable for the
overall development of the Community 's technology and service
markets ;
Whereas the Community 's research and development policy and its
policy for promoting a Community-wide information market is the
necessary complement for such market development ;
Whereas in relation to regulatory changes in telecommunications
attention should be paid to the views of all parties concerned , in
particular private and business users , Telecommunications
Administrations , the Administrations' work force , competing
enterprises , and the telecommunications and data-processing
industry ;
Whereas the Green Paper has stimulated a very broad response by
the users , telecommunications and data-processing industry and
other parties concerned ; in parallel , intensive discussions were
held with the Director Generals of the Telecommunications
Administrations and the trade unions in the field ;
 ---pagebreak---                                                      page  11
  Whereas the Ministers for Telecommunications of the Member States ,
  meeting informally in Berlin on 28 April 1988 , have emphasised the
  importance of rapid progress in the development of a common market
- for telecommunications services and equipment in achieving the
  overall aim of an internal market by 1992 , so that the tele ¬
  communications sector can play to the full the important role that
  falls to it in the economic and social development of the
  Community ;
 Whereas the Ministers responsible for Industry , confirmed , from an
  industrial point of view , these objectives and emphasised the need
  to ensure that , together with the advantages especially for the
  users , liberalisation is conducted in such a way that European
  industry will fully benefit ;
 Whereas the importance of the irreversible and progressive shift
  towards competition in the telecommunications sector in bringing
  about the common market and the economic development of the Member
  States has been recognised ;
 Whereas the social , regional , industrial , and trade aspects must
  be kept carefully in mind during the progressive implementation of
  such an approach ;
 Whereas the substantial progress made with the Community 's 1984
 Action Programme for implementing a common telecommunications
 policy has laid a solid base for the implementation of a common
  approach in telecommunications ;
 Whereas the Treaty obligation of achieving the completion of the
  internal market by 1992 sets a strict deadline for full
  application of the Treaty to this sector , and Communication
 COM ( 88 ) 48 has indicated an Action Plan for the progressive
  achievement of a competition-oriented Community-wide
  telecommunications market and the strengthening of European
 competitiveness ;
 Whereas the overriding objective must be to develop the conditions
  for the market to provide European users with a greater variety of
  telecommunications services , of better quality and at lower cost ,
  affording Europe the full internal and external benefits of a
  strong telecommunications sector ; and the development in the
 Community of a strong telecommunications infrastructure , industry
  and efficient services ;
 ---pagebreak---                                                   page  12
CONSIDERS THE FOLLOWING POINTS AS MAJOR POLICY TARGETS :
1.  creating or ensuring Community-wide network integrity as one
    of the essential elements for a common market in
    telecommunications services and equipment , working on the
    principle of full interconnectivity between all networks in
    the Community ;
2.  creating an open , Community-wide market for telecommunications
    services , particularly for value-added services . Due account
    must be taken of the competition rules of the Treaty ,
    especially with regard to conditions for the use of leased
    lines and the definition of harmonised principles and
    conditions for Open Network Provision . Rapid definition of
    harmonized principles and conditions for Open Network
    Provision ( technical conditions , usage conditions and tariff
    principles ), starting with harmonised conditions for the use
    of leased lines , is of crucial importance , and closely linked
    with the creation of an open market for telecommunications
    services ;
3.  promoting the creation of Europe-wide services , to provide
    European users with a wider range of better and cheaper
    telecommunications services , so that Europe can reap the
    internal and external benefits of a strong telecommunications
    sector , while ensuring general service for all .
    In addition to appropriate measures in the area of
    standardisation and the encouragement of co-operation , as far
    as compatible with Community competition rules , this should
    include definition of common tariff principles , where one of
    the aims should be to follow , in an efficient way , overall
    cost trends ;
4.  developing further an open , Community-wide market for terminal
    equipment . Further , quickly reaching agreement on full mutual
    recognition of type-approval for terminal equipment , on the
    basis of the rapid development of common conformity
    specifications ;
5.  developing a Community market on which Telecommunications
    Administrations and other suppliers can compete on an equal
    basis ; in particular :
    .   clear separation of regulatory and operational duties ,
        with due regard for the situation in each individual
        Member State ;
 ---pagebreak---                                                  page  13
       application of the competition rules of the Treaty to
       Telecommunications Administrations and private providers ;
       a stable and   transparent fiscal environment ;
       achievement of full liberalization of procurement markets
       for telecommunications supplies and works .
6. continuing Community measures regarding common standards in
   the telecommunications sector .  The establishment of the
   European Telecommunications Standards Institute ( ETSI ) is
   particularly welcomed in this context . However , further
   efforts are needed to ensure conformity with the general
   principles of Community standardization policy , taking into
   account the achievements of European co-operation in the field
   of telecommunications and the special characteristics of the
   telecommunications sector ;
7. stimulating European co-operation at all levels , as far as
   compatible with Community competition rules , and particularly
   in the field of research and development , in order to secure
   a strong European presence on the telecommunications markets
   and to ensure the full participation of all Member States ;
8. creating a social environment for the future development of
   telecommunications , in keeping with the Community 's overall
   aim of creating a common economic and social area by 1992 .
   Sustaining the dialogue between the social partners and
   undertaking in-depth analysis is particularly important in
   this context , to secure the conditions for developing social
   consensus concerning the transformation of working conditions
   and lifestyles resulting from the new telecommunications
   technologies .
   In addition , given the changing requirements , steps must be
   taken to see that workers have the right job qualifications ,
   to protect personal data and to ensure the individual 's
   access , through the communications media , to an environment
   significantly richer in information than before ;
9. integrating the less-favoured areas of the Community fully
   into the emerging Community-wide market . This is one of the
   aims of the STAR programme , which is designed to make the best
   use of the growth potential of telecommunications .
 ---pagebreak---                                                    page  14
      This should include examination , within the context of overall
      Community priorities , of the case for further extension of
      funds available for this purpose , with a view to narrrowing
      the gap in economic development which still separates these
      regions from the more prosperous areas of the Community ,
      bearing in mind the progress of the STAR programme .
10 . working out , as a priority , a common European position on
     satellite communications , so that this medium can develop in
     an open common market , taking account of the general rules of
     operation and exploitation of the network environment , as well
     as the competition rules of the Treaty ;
11 . fully taking into account of the external effects and working
     out common positions on international telecommunications
     problems . Particular attention should be paid to the
     Community 's relation with the Third World in this area .
     There should be prior Community-wide co-ordination , according
     to procedures agreed , on negotiating positions in the
     international organizations dealing with telecommunications ,
     in particular the various conferences of the International
     Telecommunications Union , as well as a common position for
     those aspects of the Uruguay Round which cover
     telecommunications .
NOTES WITH SATISFACTION     :
that substantial progress has been made with the Community 's 1984
action programme approved at the Council 's meeting of 17th
December 1984 for implementing a common telecommunications policy ,
particularly in the following areas :
     establishment of standards , and steps towards the mutual
     recognition of type approval for terminal equipment ;
     development of advanced telecommunications technologies , with
     the start of the RACE programme ;
     access to modern telecommunications for the less-favoured
     areas of the Community , with the launching of the STAR
     programme ;
     co-ordination of technical plans and strategies for the
     introduction of new services , in particular the Integrated
     Services Digital Network ( ISDN ), and pan-European digital
     public mobile communications ;
     application of Community law with the aim of creating a
     Community-wide market ,
 ---pagebreak---                                                   page  15
GIVES ITS GENERAL SUPPORT
to the principles of the action programme set out in COM(88)48 ,
which relates to the progressive achievement of a
competition-oriented Community-wide telecommunications market up
to 1992 , and the strengthening of European competitiveness , while
safeguarding the public service goals of telecommunications ;
In this context and in the spirit of the conclusions of the
Council of 17th December 1984 , under which it was established ,
importance is accorded to the role played by the Senior Officials
Group on Telecommunications ( SOG-T)'.
INVITES THE COMMISSION
to propose , where required , the measures necessary for pursuing
the achievement of these aims , to be taken in priority areas on
the basis of the appropriate Community procedures , in particular
for the creation of the common market for telecommunications
services and equipment and taking appropriate account also of the
external dimension of these measures .
INTENDS
to meet , in the future , on a regular basis on telecommunications
issues , in order to pursue , together with the Commission , the
European Parliament and the Economic and Social Committee , the
rapid completion of the internal market for telecommunications
services and equipment up to 1992 , according to the goals set out .