CELEX: 51995PC0379
Language: en
Date: 1995-07-19
Title: Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE on interconnection in telecommunications with regard to ensuring universel service and interoperability through application of the principles of Open Network Provision (ONP)

Avis juridique important

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51995PC0379

Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE on interconnection in telecommunications with regard to ensuring universel service and interoperability through application of the principles of Open Network Provision (ONP)  /* COM/95/379 FINAL - COD 95/0207 */  

Official Journal C 313 , 24/11/1995 P. 0007

Proposal for a European Parliament and Council Directive on  interconnection in telecommunications with regard to ensuring universal service and  interoperability through application of the principles of open network provision (ONP) (95/C  313/04) COM(95) 379 final - 95/0207(COD)(Submitted by the Commission on 31 August 1995) THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 100a  thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Economic and Social Committee, Acting in accordance with the procedure referred to in Article 189b of the Treaty, 1. Whereas from 1 January 1998 (with transition periods for certain Member States) the provision of  telecommunications services and infrastructure in the Community will be liberalized; whereas the  Council's resolution of 7 February 1994 on universal service principles in the telecommunications  sector (1) recognizes that in order to promote Community-wide telecommunications services there is  a need to ensure interconnection of public networks and, in the future competitive environment,  interconnection between different national and Community operators; whereas Council Directive  90/387/EEC of 28 June 1990 on the establishment of the internal market for telecommunications  services through the implementation of open network provision (ONP) (2) lays down harmonized  principles for open and efficient access to, and use of, public telecommunications networks and,  where applicable, services; whereas the Council's Resolution of 22 July 1993 on the review of the  situation in the telecommunications sector and the need for further development in that market (3)  recognizes that open network provision measures provide an appropriate framework for harmonizing  interconnection conditions; 2. Whereas a general framework for interconnection to public telecommunications networks and public  telecommunications services, irrespective of the supporting technologies employed, is needed in  order to provide end-to-end interoperability of services for Community users; whereas fair,  proportionate and non-discriminatory conditions for interconnection and interoperability are key  factors in fostering the development of open and competitive markets; 3. Whereas the abolition of special and exclusive rights in telecommunications means that certain  existing definitions need to be revised; whereas for the purposes of this Directive,  telecommunications services do not include radio and television broadcast services; whereas the  technical conditions, tariffs, usage and supply conditions that apply to interconnection are  different from the conditions that apply at end-user/network interfaces; 4. Whereas, following the removal of special and exclusive rights for telecommunications services  and infrastructure in the Community, the provision of telecommunications networks or services may  require some form of authorization by Member States; whereas all organizations authorized to  provide public telecommunications networks or public telecommunications services in all or part of  the Community should be free to negotiate interconnection agreements on a commercial basis in  accordance with Community law, subject to supervision and intervention by national regulatory  authorities; whereas it is necessary to ensure adequate interconnection within the Community of  certain networks and services essential for the social and economic well-being of Community users,  notably public telephone networks and services, and leased lines; 5. Whereas it is necessary to define those organizations who have rights and obligations for  interconnection; whereas in order to stimulate development of new types of telecommunications  services, it is important to encourage new forms of interconnection and special network access; 6. Whereas the resolution of 7 February 1994 sets out conditions for financing a universal voice  telephony service; whereas obligations for the provision of universal service contribute to the  Community objective of socio-economical cohesion and territorial equity; whereas there may be more  than one organization in a Member State with universal service obligations; whereas the calculation  of the net cost of universal service should take due account of costs and revenues, as well as  economic externalities and the intangible benefits resulting from providing universal service but,  in order not to hinder the on-going process of tariff rebalancing, should not include elements  which are due to historic tariff imbalances; whereas costs of universal service obligations should  be calculated on the basis of transparent procedures; whereas financial contributions related to  the sharing of universal service obligations should be unbundled from charges for interconnection; 7. Whereas it is important to lay down principles to guarantee transparency, access to information,  non-discrimination and equality of access, in particular for organizations with significant market  power; whereas the market power of an organization depends on a number of factors including its  share of the relevant product or service market in the relevant geographical market, its turnover  relative to the size of the market, its ability to influence market conditions, its control of the  means of access to end-users, its access to financial resources, its experience providing products  and services in the market; whereas, for the purpose of this Directive, an orgnization with a share  of more than 25 % of a particular telecommunications market in the geographical area in a Member  State within which it is authorized to operate would be presumed to enjoy significant market power,  unless its national regulatory authority determined that this was not the case, whereas, for an  organization falling below this threshold market share, the national regulatory authority may  nevertheless determine that the organization enjoyed significant market power; 8. Whereas pricing for interconnection is a key factor to determine the structure and the intensity  of competition in the transformation process towards a liberalized market; whereas organizations  with significant market power must be able to demonstrate that their interconnection charges are  set on the basis of objective criteria and follow the principles of transparency and cost  orientation, and are sufficiently unbundled in terms of network and service elements offered;  whereas publication of a list of interconnection services and charges enhances the necessary  transparency and non-discrimination; whereas flexibility in the methods of charging for  interconnection traffic should be possible, including capacity-based charging; whereas the level of  charges should promote productivity and encourage efficient and sustainable market entry, and  should not be below a limit calculated by the use of long-run incremental cost and cost allocation  and attribution methods based on actual cost causation, nor above a limit set by the stand-alone  cost of providing the interconnection in question; 9. Whereas appropriate accounting separation between interconnection activities and other  activities ensures transparency of internal cost-transfers; whereas, where an organization with  special or exclusive rights in a non-telecommunications field also provides telecommunications  services, accounting separation is an appropriate means to discourage unfair cross-subsidies; 10. Whereas national regulatory authorities shall have an important role in encouraging the  development of a competitive market in the interests of Community users, and of securing adequate  interconnection of networks and services; whereas negotiation of interconnection agreements can be  facilitated by national regulatory authorities setting down certain conditions in advance, and  identifying other areas to be covered in interconnection agreements; whereas in the event of a  dispute over interconnection between parties in the same Member State, an aggrieved party must be  able to call on the national regulatory authority to resolve the dispute; whereas national  regulatory authorities must be able to require organizations to interconnect their facilities,  where it can be demonstrated that this is in the users' interests; whereas the task of national  regulatory authorities could be facilitated by the publication of non-binding guidelines in these  areas; 11. Whereas, in accordance with Directive 90/387/EEC, the essential requirements upon which  restrictions on access to and usage of public telecommunications networks or services are justified  are limited to security of network operations, maintenance of network integrity, interoperability  of services in justified cases, and protection of data as appropriate; 12. Whereas facility-sharing can be of benefit for town planning, environmental, economic or other  reasons, and should be encouraged by national regulatory authorities on the basis of voluntary  agreements; whereas compulsory facility-sharing may be appropriate in some circumstances, but  should be imposed on organizations only after full public consultation; whereas virtual collocation  may provide a satisfactory alternative to physical collocation of telecommunications equipment; 13. Whereas numbering is a key element for equal access; whereas national regulatory authorities  should have the responsibility to administer and control national numbering plans, and those naming  and addressing aspects of telecommunications services where coordination at a national level is  required, so as to ensure effective competition; whereas number portability - meaning that the  end-user is able to change the organization providing telephone service at a location without  changing the national number - is an important facility for users, and should be implemented as  soon as practicable; whereas numbering schemes should be developed in full consultation with all  the parties involved and in harmony with a long-term Europe-wide numbering framework and  international numbering schemes; whereas numbering requirements in Europe, the needs for the  provision of pan-European and new services and the globalization and synergy of the  telecommunications market make necessary a common Community position in international organizations  and fora where numbering decisions are taken; 14. Whereas, in accordance with Directive 90/387/EEC, the harmonization of technical interfaces and  access conditions must be based on common technical specifications which take account of  international standardization; whereas the development of new European standards for  interconnection may be needed; whereas in accordance with Council Directive 83/189/EEC of 28 March  1983 laying down a procedure for the provision of information in the field of technical standards  and regulations (4), as last amended by European Parliament and Council Directive 94/10/EC (5), new  national standards must not be developed in areas where harmonized European standards are under  development. 15. Whereas, in accordance with Directive 90/387/EEC, open network provision conditions must be  transparent and published in an appropriate manner; whereas that Directive set up a Committee  (hereinafter referred to as 'ONP Committee`) to assist the Commission, and provides a procedure for  consultation with telecommunications organizations, users, consumers, manufacturers and service  providers; 16. Whereas in addition to the rights of recourse granted under national or Community law, there is  a need for simple procedures for resolution of cross-border disputes which are outside the  competence of a single national regulatory authority; whereas these procedures should be  responsive, inexpensive and transparent, and should involve all the parties concerned; 17. Whereas, to enable the Commission to monitor effectively the application of this Directive, it  is necessary that Member States notify to the Commission the national regulatory authorities which  will be responsible for the functions of this Directive and the organizations covered by its  provisions; 18. Whereas given the dynamic development in this sector, a responsive procedure for adjustment of  the Annexes to this Directive should be established which takes full account of the views of Member  States and should involve the ONP Committee; 19. Whereas implementation of certain obligations must be linked to the date of liberalization of  telecommunications services and infrastructure; whereas deferment of the obligation to provide  number portability may be granted where the Commission agrees that the obligation would impose an  excessive burden on certain organizations; 20. Whereas this Directive should also apply to organizations providing telecommunications networks  and telecommunications services in the Community which are not substantially owned and controlled  by Member States of the European Economic Area and/or nationals from such Member States, referred  to as 'third country organizations`; whereas Community operators should benefit from effective and  comparable access to third country markets and enjoy a similar treatment in third countries as this  Directive confers on third country organizations; whereas the Community gives priority to the  attainment of this goal within the context of multilateral agreements; 21. Whereas the functioning of this Directive should be reviewed after three years; whereas at the  same time the situation with regard to interconnection with third countries should also be  reviewed, to allow appropriate action to be taken; 22. Whereas the essential goal of interconnection of networks and services throughout the Community  and the provision of trans-European networks and services cannot be realized satisfactorily at  Member State level, and is better achieved at Community level by this Directive; 23. Whereas this Directive is without prejudice to the application of the competition rules of the  Treaty with regard to interconnection to telecommunications networks and services, HAVE ADOPTED THIS DIRECTIVE: Article 1 Scope and aim This Directive established a regulatory framework for securing the interconnection and  interoperability of telecommunications networks and services in the Community, in an environment of  open and competitive markets. It concerns the harmonization of conditions for open and efficient interconnection to public  telecommunications networks and public telecommunications services. Article 2 Definitions 1. For the purposes of this Directive: (a) 'interconnection` means the physical and logical linking of the facilities of organizations  providing telecommunications networks and/or telecommunications services, in order to allow the  users of one organization to communicate with users of another organization, or to access services  provided by another organization; (b) 'public telecommunications network` means a telecommunications network used inter alia for the  provision of public telecommunications services; (c) 'public telecommunication service` means a telecommunications service available to the public; (d) 'telecommunications network` means transmission systems and, where applicable, switching  equipment and other resources which permit the conveyance of signals between defined termination  points by wire, by radio, by optical or by other electromagnetic means; (e) 'telecommunications services` means services whose provision consists wholly or partly in the  transmission and routing of signals on telecommunications networks, with the exception of radio and  television broadcasting; (f) 'users` means end-users, including consumers (e.g. residential end-users), and service  providers; (g) 'special rights` means rights that are granted by a Member State to a limited number of  undertakings through any legislative, regulatory or administrative instrument which, within a given  geographical area, limits to two or more the number of such undertakings authorized to provide a  service or undertake an activity, otherwise than according to objective, proportional and  non-discriminatory criteria, or designates, otherwise than according to such criteria, several  competing undertakings as being authorized to provide a service or undertake an activity, or  confers on any undertaking or undertakings, otherwise than according to such criteria, legal or  regulatory advantages which substantially affect the ability of any other undertaking to provide  the same service or to undertake the same activity in the same geographical area under  substantially the same conditions. 2. Further definitions given in Directive 90/387/EEC shall apply, where relevant. Article 3 Interconnection and interoperability at national and Community level 1. Member States shall take all necessary measures to remove any restrictions which prevent  organizations authorized by Member States to provide telecommunications networks and  telecommunications services from negotiating interconnection agreements between themselves in  accordance with Community law. The organizations concerned may be in the same Member State or in  different Member States. Technical and commercial arrangements for interconnection shall be a  matter for agreement between the parties involved, subject to the provisions of this Directive and  the competition rules of the Treaty. 2. Member States shall ensure the adequate and efficient interconnection of the public  telecommunications networks and public telecommunications services identified in Annex I, Parts 1  and 2, to the extent necessary to ensure universal provision of these services for all users within  the Community. 3. Member States shall ensure that organizations who interconnect their facilities to public  telecommunications networks and/or public telecommunications services respect at all times the  confidentiality of information transmitted or stored. Article 4 Rights and obligations for interconnection 1. Organizations authorized to provide public telecommunications networks and/or public  telecommunications services as identified in Annex II shall have a right and, when requested by  organizations in that category, an obligation to negotiate interconnection with each other for the  purpose of providing the services in question, in order to ensure provision of these networks and  services throughout the Community. On a case-by-case basis, the national regulatory authority may  agree to limit this obligation on the grounds that there are technically and commercially viable  alternatives to the interconnection requested, and that the requested interconnection is  inappropriate in relation to the resources available to meet the request. Any such limitation  imposed by a national regulatory authority shall be fully reasoned and made public in accordance  with Article 14 (2). 2. Organizations authorized to provide public telecommunications networks and public  telecommunications services identified in Annex I which have significant market power shall meet  all reasonable requests for interconnection, including requests from service providers for  connection to the network at points other than the network termination points offered to the  majority of end-users (special network access). Article 5 Interconnection and universal service contributions 1. Where a Member State determines, in accordance with the provisions of this Article, that  universal service obligations represent a unfair burden for an organization, it may establish  mechanisms for sharing the net cost of the universal service obligations with other organizations  operating public telecommunications networks. Member States shall take due account of the  principles of transparency, non-discrimination and proprotionality in setting the contributions to  be made. Only the public telecommunications networks and public telecommunications services  identified in Annex I, Part 1, may be financed in this way. 2. Contributions to the cost of universal service obligations may be based on a mechanism  specifically established for the purpose and administered by a body independent of the  beneficiaries, or may take the form of a supplementary charge added to the interconnection charge. 3. In order to determine the burden which the provision of universal service represents,  organizations with universal service obligations shall, at the request of their national regulatory  authority, calculate the net cost of such obligations in accordance with Annex III. The calculation  of the net cost of universal service obligations shall be audited by the national regulatory  authority. The cost calculation and the results of the audit shall be open to public inspection in  accordance with Article 14 (2). 4. Where justified on the basis of the net cost calculation referred to in paragraph 3, and taking  into account the market benefit which accrues to an organization that offers universal service,  national regulatory authorities shall determine whether a mechanism for sharing the net cost of  universal service obligations is justified. 5. Where the mechanisms referred to in paragraph 4 are established, national regulatory authorities  shall ensure that the principles for cost sharing, and details of the mechanism used, are open to  public inspection in accordance with Article 14 (2). National regulatory authorities shall ensure that an annual report is published giving the  calculated cost of universal service obligations, and identifying the contributions made by all the  parties involved. 6. Until such time as the procedure described in paragraphs 3, 4 and 5 is implemented, any charges  payable by an interconnected party which include or serve as a contribution to the cost of  universal service obligations, shall be notified, prior to their introduction, to the national  regulatory authority and the Commission. Where the national regulatory authority or the Commission  finds that such charges are escessive, the organization concerned shall be required to reduce the  relevant charges. Such reductions shall be applied retrospectively, from the date of introduction  of the charges. 7. Where appropriate, the Commission may, acting in accordance with the procedure laid down in  Article 15, draw up guidelines on the costing and financing of universal service. Article 6 Requirements for non-discrimination and transparency For interconnection to the public telecommunications networks and public telecommunications  services identified in Annex I provided by organizations which have been notified by national  regulatory authorities as having significant market power, Member States shall ensure that: (a) the organizations concerned adhere to the principle of non-discrimination with regard to  interconnection offered to others. They shall apply similar conditions in similar circumstances to  interconnected organizations providing similar services, and shall provide interconnection  facilities and information to others under the same conditions and of the same quality as they  provide for their own services, or those of their subsidiaries or partners; (b) all necessary information and specifications are made available on request to organizations  considering interconnection, in order to facilitate an agreement being concluded; (c) any changes to existing interconnection arrangements are notified to interconnected parties at  least six months in advance of the change being implemented, unless agreed otherwise by the parties  concerned; (d) interconnection agreements are open to public inspection, in accordance with Article 14 (2),  with the exception of those parts which deal with the commercial strategy of the parties. In every  case, details of interconnection charges and any contributions to universal service obligations  shall be published. Article 7 Principles for interconnection charges and cost accounting systems 1. Member States shall ensure that the provisions of paragraphs 2 to 6 apply to organizations  operating the public telecommunications networks and/or public telecommunications services  identified in Annex I, Parts 1 and 2, who have been notified by national regulatory authorities as  having significant market power. 2. Charges for interconnection shall follow the principles of transparency and cost orientation,  and promote economic efficiency and sustainable market entry. The burden of proof that charges are  cost-oriented shall lie with the organization providing interconnection to its facilities. National  regulatory authorities may request an organization to provide full justification for its  interconnection charges, and where appropriate shall require charges to be adjusted. 3. Charges for interconnection shall be based on the costs of providing the interconnection  services requested, and shall normally contain the following elements, each of which should be  itemized separately: - a charge to cover re-imbursement of the one-time costs incurred in providing the specific  elements of the interconnection requested; (i.e. the initial cost of any engineering work needed to  provide the interconnection facilities requested), - usage charges related to the utilization of the network elements and resources requested. These  may include capacity-based charges and/or traffic related charges, Annex IV indicates, for information only, the types of costs that may be included in each of these  tariff elements. Where other tariff elements are applied, these must be transparent and based on  objective criteria, and approved by the national regulatory authority. Charges for interconnection may include bulk discount schemes. In some cases, these may be  available only to organizations identified in Annex II. Such schemes shall be based on objective  criteria and applied in a non-discriminatory manner. 4. Charges for interconnection shall, in accordance with Community law, be sufficiently unbundled,  so that the person making the request is not required to pay for network components of facilities  which are not required for the service demanded. 5. National regulatory authorities shall ensure the publication, in accordance with Article 14 (1),  of a list of interconnection services and associated tariffs broken down into components, according  to market needs. 6. National regulatory authorities shall ensure that the cost accounting systems used by the  organizations concerned are suitable for implementation of the requirements of this Article, and  are documented to a sufficient level of detail. Part or all of the documentation approved by the  national regulatory authority, giving details of the information identified in Annex V, shall be  open to public inspection in accordance with Article 14 (2). Compliance with the cost accounting  system shall be verified by a competent independent body. A statement concerning compliance shall  be published annually. 7. Where they exist, charges related to the sharing of the cost of universal service obligations,  as described in Article 5, shall be unbundled and identified separately. 8. Member States shall ensure that published interconnection charges and charges related to the  sharing of the cost of universal service obligations are made available to the ONP Committee at the  request of the Commission. 9. In order to provide a common basis for the derivation of interconnection charges, the Commission  shall, if necessary, draw up, acting in accordance with the procedure laid down in Article 15,  recommendations on cost accounting systems in relation to interconnection. Article 8 Accounting separation and financial accounts 1. Member States shall require organizations who provide public telecommunications networks and/or  public telecommunications services and who have special or exclusive rights for the provision of  services in other sectors in the same or another Member State, to keep separate accounts for the  different activities, to the extent that would be required if the activities in question were  carried out by legally independent companies. 2. Member States shall require organizations notified by national regulatory authorities as having  significant market power who provide public telecommunications networks and/or public  telecommunications services for end-users and who offer interconnection services to other  organizations, to keep separate accounts for, on the one hand, their activities related to  interconnection - covering both interconnection services provided internally and interconnection  services provided to others - and, on the other hand, other activities, to the extent that would be  required if the two types of activities were carried out by legally independent companies. 3. Organizations providing public telecommunications networks or public telecommunications services  shall provide financial information to their national regulatory authority promptly on request and  to the level of detail required. National regulatory authorities may publish such information as  would contribute to an open and competitive market, while taking account of the aspect of  commercial confidentiality. Detailed financial information shall be supplied to the Commission on  request, where required for fulfilling its obligations under specific Community legislation. 4. The financial accounts of organizations providing public telecommunications networks or public  telecommunications services shall be drawn up, published and submitted to independent audit. The  audit shall be carried out in accordance with the relevant rules of national legislation. The first subparagraph shall also apply to the separate accounts required in paragraphs 1 and 2. 5. The provisions of paragraphs 1 and 2 shall not apply to organizations where the annual turnover  in telecommunications activities in the Community is less than the threshold set in Annex VI. 6. Where appropriate, the Commission shall, acting in accordance with the procedure laid down in  Article 15, draw up guidelines on accounting separation in relation to interconnection. Article 9 General responsibilities of the national regulatory authorities 1. National regulatory authorities shall encourage and secure adequate interconnection in the  interests of all users, exercising their responsibility in a way that provides maximum economic  efficiency and gives the maximum benefit to end-users. In particular, national regulatory authorities shall take into account: - the need to ensure satisfactory end-to-end communications for users, - the need to stimulate a competitive market, - the need to promote the establishment and development of trans-European networks and services,  and the interconnection and interoperability of national networks and services, as well as access  to such networks and services, - the principles of non-discrimination (including equal access) and proportionality, - the need to maintain the universal service. 2. In pursuit of the goal referred to in paragraph 1, national regulatory authorities shall have  the right to intervene on their own initiative at any time, in order to specify issues which must  be covered in an interconnection agreement, or to lay down specific conditions to be observed by  one or more parties to such an agreement. National regulatory authorities may require changes to be  made to interconnection agreements already concluded, where justified to ensure effective  competition and/or interoperability of services for users. Conditions set by the national regulatory authority may include inter alia conditions designed to  ensure effective competition, technical conditions, tariffs, supply and usage conditions,  conditions about conformance to relevant standards, conformance to essential requirements,  protection of the environment, and/or the maintenance of end-to-end quality of service. The national regulatory authority may also set time limits within which negotiations on  interconnection are to be completed. If agreement is not reached within the time allowed, the  national regulatory authority shall take steps to bring about an agreement under procedures laid  down by that authority. The procedures shall be open to public inspection in accordance with  Article 14 (2). 3. General conditions set down in advance by the national regulatory authority shall be published  in accordance with Article 14 (1). In relation to interconnection between organizations identified in Annex II, national regulatory  authorities shall: - set time limits for the negotiation of interconnection agreements, in accordance with paragraph  2, - set ex ante conditions, as listed in Annex VII, Part 1, - ensure that the issues in Annex VII, Part 2, are covered in interconnection agreements, where  appropriate, - encourage the issues in Annex VII, Part 3, to be covered in interconnection agreements. 4. Where an organization authorized to provide public telecommunications networks or public  telecommunications services enters into interconnection agreements with others, the national  regulatory authority shall have the right to inspect all such interconnection agreements in their  entirety. 5. In the event of an interconnection dispute between organizations operating under authorizations  granted by the same Member State, the national regulatory authority of that Member State shall, on  request of either party, take steps with a view to resolving the dispute. In so doing, the national regulatory authority shall take into account, inter alia: - the user interest, - regulatory obligations or constraints imposed on any of the parties, - the desirability of stimulating innovative market offerings, and of providing users with a wide  range of telecommunications services at a national and at a Community level, - the availability of technically and commercially viable alternatives to the interconnection  requested, - the desirability of ensuring equal access arrangements, - the need to maintain the integrity of the public telecommunications network and the  interoperability of services, - the nature of the request in relation to the resources available to meet the request, - the relative market positions of the parties, - the public interest (e.g. the protection of the environment). A decision on the matter by a national regulatory authority shall be made public in accordance with  Article 14 (1). The parties concerned shall be given a full statement of the reasons on which it is  based. If the dispute is not resolved in a satisfactory way for all the parties concerned, or if no  solution has been found by the national regulatory authority within two months of its referral to  this authority: - either party may refer the dispute to the Commission for conciliation, by way of a notification  to the Commission, with copies to all parties involved. Where the Commission finds that there is a  case for further examination, the Commission may set up a working group comprising in particular  the members of the Committee referred to in Article 15 to assist it. Recourse to this procedure  shall not hinder the parties involved from bringing an action under national law, or - the national regulatory authority may, with the agreement of all parties involved, refer the  dispute to the Commission for resolution under the procedure set out in Article 16 (4) and (5), by  way of a notification to the Commission, with copies to all parties involved. 6. In cases where organizations who are authorized to provide public telecommunications networks  and/or public telecommunications services have not interconnected their facilities, national  regulatory authorities may, in the interests of users and following a period of public consultation  during which all interested parties are given an opportunity to express their views, require the  organizations concerned to interconnect their facilities and, where appropriate, set terms of  interconnection. 7. The Commission may, in consultation with the ONP Committee, issue guidelines on the basis of  experience gained in the implementation of paragraphs 1 to 6. Article 10 Essential requirements Without prejudice to action which may be taken in accordance with Articles 3 (5) and 5 (3) of  Directive 90/387/EEC, the essential requirements as specified in Article 3 (2) of Directive  90/387/EEC shall apply to interconnection to public telecommunications networks and/or public  telecommunications services as set out in this Article. Where the national regulatory authority  imposes conditions based on essential requirements in interconnection agreements, these conditions  shall be published in the manner laid down in Article 14 (1). (a) Security of network operations: national regulatory authorities shall take all necessary steps  to ensure the security of public telecommunications networks and public telecommunications services  in case of emergency. An emergency situation in this context means catastrophic network breakdown  or an exceptional case of force majeure, such as extreme weather, flood, lightning or fire,  industrial action or lockouts, war, military operations or civil disorder. In an emergency  situation the organization(s) affected shall make every endeavour to ensure that service is  maintained to all users and to all interconnected parties. The need to maintain the security of  public telecommunications networks and public telecommunications services in case of emergency does  not constitute a valid reason for refusal to negotiate terms for interconnection. The national regulatory authority shall ensure that any conditions for interconnection related to  the security of networks in case of emergency are proportional and non-discriminatory in nature,  and are based on objective criteria identified in advance. Interconnection agreements may include specific conditions to compensate one party in the event of  unavailability of the other party's facilities during an emergency situation. (b) Maintenance of network integrity: national regulatory authorities shall take all necessary  steps to ensure that the integrity of public telecommunications networks is maintained. The need to  maintain network integrity does not constitute a valid reason for refusal to negotiate terms for  interconnection. The national regulatory authority shall ensure that any conditions for  interconnection related to protection of network integrity, including specific conditions to  compensate one party in the event of network harm caused by the other party, are proportional and  non-discriminatory in nature, and are based on objective criteria identified in advance. (c) Interoperability of services: national regulatory authorities may impose conditions in  interconnection agreements in order to ensure interoperability of services, including conditions  designed to ensure satisfactory end-to-end quality. Such conditions may include implementation of  specific technical standards, or specifications, or industry-agreed codes of conduct. (d) Protection of data: Member States may impose conditions in interconnection agreements in order  to ensure the protection of data, to the extent necessary to ensure compliance with relevant  regulatory provisions on the protection of data including protection of personal data, the  confidentiality of information processed, transmitted or stored, and the protection of privacy,  compatible with Community law. Article 11 Collocation and facility sharing Where an organization is granted a general right under national legislation to install facilities  for telecommunications purposes on, over or under public or private land, or may take advantage of  a procedure for the expropriation or use of property for telecommunications purposes, national  regulatory authorities shall encourage the sharing of such facilities and property with other  organizations providing public telecommunications services. Agreements for collocation or facility sharing shall normally be a matter for commercial and  technical agreement between the parties concerned. The national regulatory authority may intervene  to resolve disputes, as provided for in Article 9. In particular, Member States may impose facility sharing arrangements (including physical  collocation) only after an appropriate period of public consultation during which all interested  parties must be given an opportunity to express their views. Such arrangements may include rules  for apportioning the costs of facility sharing. Article 12 Numbering 1. Member States shall ensure the provision of adequate numbers and numbering ranges for all public  telecommunications services. 2. In order to ensure full interoperability of European-wide networks and services, Member States  shall take all necessary steps to ensure the coordination of their national positions in  international organizations and fora where numbering decisions are taken, taking into account  possible future developments in numbering at a European level. 3. Member States shall ensure that national telecommunications numbering plans are controlled by  the national regulatory authority, in order to guarantee independence from organizations providing  public telecommunications networks or public telecommunications services. In order to ensure  effective competition, national regulatory authorities shall ensure that the procedures for  allocating individual numbers and/or numbering ranges are transparent, equitable and timely and the  allocation is carried out in an objective, transparent and non-discriminatory manner. National  regulatory authorities may lay down conditions for the use of certain prefixes or certain short  codes, in particular where these are used for services of general public interest (e.g. freephone  services, kiosk billed services, directory services, emergency services), or to ensure equal  access. 4. National regulatory authorities shall ensure that the main elements of the national numbering  plans, and all subsequent additions or amendments to them, are published in accordance with Article  14 (1), subject only to limitations imposed on the grounds of national security. 5. National regulatory authorities shall encourage the earliest possible introduction of the  facility whereby end-users who so request can retain their national number at a specific location  independent of the organization providing service, and shall ensure that this facility is available  at least in all major centres of population before 1 January 2003. 6. National regulatory authorities shall ensure that numbering plans and procedures are applied in  a manner that gives fair and equal treatment to all providers of public telecommunications  services. In particular, an organization allocated a range of numbers shall avoid discrimination in  the number sequences used to give access to the services of other telecommunications operators. Articles 13 Technical standards 1. Without prejudice to Article 5 (3) of Directive 90/387/EEC whereby the implementation of  specified European standards may be made compulsory, national regulatory authorities shall ensure  that organizations providing public telecommunications networks or public telecommunications  services take full account of standards referenced in the Official Journal of the European  Communities as being suitable for the purpose of interconnection. In the absence of such standards, national regulatory authorities shall encourage the provision of  technical interfaces for interconnection according to the standards or specifications listed  below: - standards adopted by European standardization bodies such as ETSI or CEN/Cenelec, or, in the absence of such standards, - international standards or recommendations adopted by the International Telecommunications Union  (ITU), the International Organization for Standardization (ISO) or the International  Electrotechnical Committee (IEC), or, in the absence of such standards, - specifications having a wide acceptance within industry and developed by international industry  bodies, or, in the absence of such specifications, - national standards or specifications. 2. The Commission may, acting in accordance with the procedure laid down in Article 15, request  standards for interconnection and access to be drawn up, where appropriate, by European  standardization bodies. Reference to standards for interconnection and access may be published in  the Official Journal of the European Communities in accordance with Article 5 of Directive  90/387/EEC. Article 14 Publication of and access to information 1. With regard to the information identified in Article 7 (5), Article 9 (3), Article 9 (5),  Article 10 and Article 12 (4), national regulatory authorities shall ensure that up-to-date  information is published in an appropriate manner in order to provide easy access to that  information for interested parties. Reference shall be made in the national Official Journal of the  Member State concerned to the manner in which this information is published. 2. With regard to the information identified in Article 4 (1), Article 5 (3), Article 5 (5),  Article 6, Article 7 (6) and Article 9 (2), national regulatory authorities shall ensure that  up-to-date information is made available for public inspection during the normal working day at no  charge. Reference shall be made in the national Official Journal of the Member State concerned to  the times and location(s) at which the information can be inpected. 3. National regulatory authorities shall notify to the Commission before 1 January 1998 - and  immediately thereafter in case of any change - the manner in which the information referred to in  paragraphs 1 and 2 is made available. The Commission shall regularly publish a corresponding  reference to such notifications in the Official Journal of the European Communities. Article 15 Committee procedure 1. The Commission shall be assisted by the committee set up by Article 9 (1) of Directive  90/387/EEC. 2. The representative of the Commission 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, if necessary by taking a vote. The opinion shall be recorded in the minutes; in addition, each Member State shall have the right  to ask to have its position recorded in the minutes. The Commission shall take the utmost account of the opinion delivered by the committee. It shall  inform the committee of the manner in which its opinion has been taken into account. Article 16 Dispute resolution procedure at Community level 1. The procedure set out in paragraphs 2 to 5 shall be available in the event of an interconnection  dispute between organizations operating under authorizations provided by different Member States. 2. Any party may refer the dispute to the national regulatory authorities concerned. The national  regulatory authorities shall coordinate their efforts in order to bring about a resolution of the  dispute, in accordance with the principles set out in Article 9 (1). 3. If the dispute is not resolved within two months of its referral to the national regulatory  authorities concerned, either party may, with the agreement of all parties, invoke the procedure  provided for in paragraphs 4 and 5, by way of a notification to the Commission, with copies to all  parties involved. In so doing, the parties renounce any further action under national law. 4. Where, following a notification to the Commission based on paragraph 3, the Commission finds  that there is a case for further examination, the Commission may set up a working group comprising  in particular members of the Committee referred to in Article 15, to assist it. The working group  shall define its position within three months. 5. The position agreed in accordance with the procedure referred to in paragraph 4 shall form the  basis of a solution to be implemented at a national level without delay. If an agreed position is  not reached, or if an agreed position is not implemented within a reasonable time which shall not,  except in justified cases, exceed two months, the appropriate solution shall be adopted by the  Commission in accordance with the procedure laid down in Article 15. Article 17 Notification 1. Member States shall ensure that national regulatory authorities have the necessary means for  carrying out the tasks identified in this Directive, and shall notify to the Commission by 31  January 1997 the national regulatory authorities responsible for those tasks. 2. National regulatory authorities shall notify to the Commission by 31 January 1997, and  immediately thereafter in the event of any change, the names of those organizations which: - have universal service obligations for the provision of the public telecommunications networks  and services identified in Annex I, Part 1, - are subject to the provisions of this Directive concerning organizations with significant market  power, - are covered by Annex II. The Commission may request national regulatory authorities to provide their reasons for classifying  an organization as having significant market power. 3. The Commission shall publish the names referred to in paragraph 2 in the Official Journal of the  European Communities. Article 18 Technical adjustment Modifications necessary to adapt the Annexes to the Directive to new technological developments or  to changes in market and consumer demand or to improve the coherence of the regulatory environments  in Member States shall be determined by the Commission in accordance with the procedure laid down  in Article 15. Article 19 Deferment 1. Deferment from the obligations under Articles 3 (1) and 9 (3) may be requested by those Member  States identified in the Council's resolution of 22 July 1993 who benefit from an additional  transition period for the liberalization of telecommunications services. Deferments granted on  these grounds shall not exceed the transition periods set out in the said resolution. 2. Deferment from the obligations under Article 12 (5) may be requested where the Member State  concerned can prove that they would impose an excessive burden on certain organizations or classes  of organization. The Member State shall inform the Commission of the reasons for requesting a deferment, the date by  which the requirements can be met, and the measures envisaged in order to meet this deadline. The  Commission shall consider the request taking into account the particular situation in that Member  State and the need to ensure a coherent regulatory environment at a Community level, and shall  inform the Member State whether it deems that the particular situation in that Member State  justifies a deferment and, if so, until which date such deferment is justified. Article 20 Interconnection with third country organizations 1. Member States shall inform the Commission of any general difficulty encountered, de jure or de  facto, by Community organizations in interconnecting with organizations in third countries, which  have been brought to their attention. 2. Whenever the Commission establishes that a third country is not providing Community  organizations with effective rights to interconnect which are comparable to those which the  Community grants to organizations from a third country, the Commission will, if necessary, submit  proposals to the Council for an appropriate mandate for negotiation or other appropriate measures  to ensure comparable rights for Community organizations in these third countries. The Council shall  decide by qualified majority. 3. Measures taken pursuant to paragraph 2 shall be without prejudice to the Community's and Member  States' obligations under relevant international agreements. Article 21 Review of implementation 1. The Commission shall report to the European Parliament and to the Council by 31 December 1997,  and periodically thereafter, on the availability of rights to interconnect in third countries for  the benefit of Community organizations, and on the state of any negotiations undertaken pursuant to  Article 20 (2), or within the framework of international organizations. 2. The Commission shall examine and report to the European Parliament and to the Council on the  functioning of this Directive, on the first occasion not later than 31 December 2000. For this  purpose, the Commission may request information from the Member States. Where necessary, further  measures can be proposed in the report for the full implementation of the aims of this Directive. Article 22 Transposition 1. Member States shall bring into force the laws, regulations and administrative provisions  necessary to comply with this Directive by 31 December 1997. They shall immediately inform the  Commission thereof. When Member States adopt these provisions, these shall contain a reference to this Directive or  shall be accompanied by such reference at the time of their official publication. The procedure for  such reference shall be adopted by Member States. 2. Member States shall communicate to the Commission the texts of the main provisions of national  law which they adopt in the field covered by this Directive. Article 23 Entry into force This Directive shall enter into force on the 20th day following that of its publication in the  Official Journal of the European Communities. Article 24 Addressees This Directive is addressed to the Member States.  (1) OJ No C 48, 16. 2. 1994, p. 1.  (2) OJ No L 192, 24. 7. 1990, p. 1.  (3) OJ No C 213, 6. 8. 1993, p. 1.  (4) OJ No L 109, 26. 4. 1983, p. 8.  (5) OJ No L 100, 19. 4. 1994, p. 30.   ANNEX I SPECIFIC PUBLIC TELECOMMUNICATIONS NETWORKS AND PUBLIC TELECOMMUNICATIONS  SERVICES The following public telecommunications networks and public telecommunications services  are considered of major importance at the European level. Organizations providing the public telecommunications networks and/or services identified below who  have significant market power are subject to specific obligations with regard to interconnection,  as specified in Articles 4 (2), 6 and 7. PART 1 The fixed public telephone network The fixed public telephone network means the public switched telecommunications network which  supports the transfer between network termination points at fixed locations of speech and 3,1 kHz  bandwidth audio information, to support inter alia: - voice telephony, - facsimile Group I, II and III communications, in accordance to ITU-T recommendations in the  'T-series`, - voice band data transmission via modems at a rate of at least 2 400 bit/s, in accordance with  ITU-T recommendations in the 'V-series`. Access to the end-user's network termination point is via a number or numbers in the national  numbering plan. The fixed public telephone service The fixed public telephone service means the provision to end-users at fixed locations of a service  for the originating and receiving of national and international calls, and may include access to  emergency (112) services, the provision of operator assistance, directory information services,  provision of public pay phones, provision of service under special terms and/or provision of  special facilities for customers with disabilities. Access to the end-user is via a number or numbers in the national numbering plan. PART 2 The commercial provision of leased lines Leased lines means the telecommunications facilities which provide for transparent transmission  capacity between network termination points, and which do not include on-demand switching  (switching functions which the user can control as part of the leased line provision). They may  include systems which allow flexible use of the leased line bandwidth, including certain routing  and management capabilities. PART 3 Public mobile telephone networks A public mobile telephony network is a public telephone network where the network termination  points are not at fixed locations. Public mobile telephone services A public mobile telephone service is a telephony service whose provision consists, wholly or  partly, in the establishment of radiocommunications to one mobile user, and makes use wholly or  partly of a mobile telephone network. ANNEX II ORGANIZATIONS WITH RIGHTS AND OBLIGATIONS TO INTERCONNECT WITH EACH OTHER IN  ORDER TO ENSURE EUROPEAN-WIDE SERVICES This Annex covers those organization which provide switched  and unswitched bearer capabilities to users upon which other telecommunications services depend. Organizations in the following categories have both rights and obligations to interconnect with  each other, in accordance with Article 4 (1). Interconnection between these organizations is  subject to additional supervision by national regulatory authorities, in accordance with Article 9  (3). Special interconnection charges may exist for these categories of organizations in accordance  with Article 7 (3). 1. Organizations who provide fixed and/or mobile public switched telecommunications networks and/or  public telecommunications services, and in so doing control the means of access to one or more  network termination points identified by one or more unique numbers in the national numbering plan.  (see notes below) 2. Organizations who provide leased lines to users' premises. 3. Organizations who provide international telecommunications circuits to and from third  countries. 4. Organizations included in this category at their own request, under relevant national licensing  or authorization schemes. Notes Control of the means of access to a network termination point means the ability to control the  telecommunications services available to the end-user at that network termination point and/or the  ability to deny other service providers access to the end-user at that network termination point. Control of the means of access may entail ownership or control of the physical link to the end-user  (whether wire or wireless), and/or ability to change or withdraw the national number or numbers  needed to access a end-user's network termination point. ANNEX III CALCULATING THE COST OF UNIVERSAL SERVICE OBLIGATIONS FOR VOICE TELEPHONY -  ARTICLE 5 (3) Universal service obligations refer to those obligations placed upon an organization  by a Member State which concern the provision of service throughout a specified geographical area,  including - where required - geographical averaged prices for the provision of that service. The cost of universal service obligations shall be calculated as the difference between the net  cost for an organization of operating with the universal service obligations and operating without  the universal service obligations. This applies whether the network in a particular Member State is fully developed or is still  undergoing development and expansion. The calculation shall be based upon the costs attributable to: (i) elements of the identified services which can only be provided at a loss or provided under cost  conditions falling outside normal commercial standards. This category includes service elements such as access to emergency telephone services, provision  of certain public pay telephones, provision of certain services or equipment for disabled people,  etc.; (ii) specific end-users or groups of end-users who, taking into account the cost of providing  service, the revenue generated and any geographical averaging of prices imposed by the Member  State, can only be served at a loss or under cost conditions falling outside normal commercial  standards.This category includes those end-users or groups of end-users who would not be served by a  commercial operator who did not have an obligation to provide universal service. In developed networks where such end-users are already being served, the cost calculation should be  based on the savings that would be achieved if these end-users were not served. In peripheral regions with expanding networks, the cost calculation should be based on the  additional cost of serving those end-users or groups of end-users which an operator applying the  normal commercial principles of a competitive environment would chose not to serve. Revenues shall be taken into account in calculating the net costs. Costs and revenues should be  forward-looking. ANNEX IV LIST OF ELEMENTS AND SUB-ELEMENTS OF THE OVERALL INTERCONNECTION CHARGES -  ARTICLE 7 (3) The following list is indicative and not exhaustive, and may vary depending on the  Member State and the specific circumstances of each particular interconnection agreement. OVERALL INTERCONNECTION CHARGES Connection charges: are based on the costs of providing the specific interconnection services requested by the  interconnecting organization. They may include inter alia: - one-off and rental costs of implementing the physical interconnection (e.g. specific equipment;  signalling resources; compatibility testing; connection maintenance; etc.), - variable costs for ancillary and supplementary services (e.g. access to directory services;  operator assistance; data collection; charging; billing; switch-based and advanced services etc.), Usage charges: are based on the costs incurred in the conveyance of traffic through the interconnected network  (e.g. the costs of switching and transmission). Usage charges may be on a call-per-call basis,  and/or on the basis of additional network capacity required. In addition, interconnection charges may include a fair share, according to the principle of  proportionality, of the costs incurred in providing equal access (e.g. the support of identical  end-user access procedures), and number portability, and costs of ensuring essential requirements  (maintenance of the network integrity; network security in cases of emergency situation;  interoperability of services; and protection of data). ANNEX V COST ACCOUNTING SYSTEMS FOR INTERCONNECTION Article 7 (6) calls for details of  the cost accounting system to be open to public inspection. The purpose of publishing this information is to provide transparency in the calculation of  interconnection charges, so that other market players are in a position to ascertain that the  charges have been fairly and properly calculated. This objective should be taken into account by the national regulatory authority and the  organizations affected when determining the level of detail in the information published. The list below indicates the elements to be included in the information published. 1. The cost standard used For example, fully distributed costs, long-run average incremental costs, marginal costs, stand  alone costs, embedded direct costs, etc. including the cost base(s) used, i.e. historic costs (based on actual expenditure incurred for equipment and systems) or  forward-looking costs (based on estimated replacement costs of equipment or systems). 2. The cost elements included in the interconnection tariff Identification of all the individual cost components which together make up the interconnection  charge, including the profit element. 3. The degrees and methods of cost allocation, in particular the treatment of joint and common  costs Details of the degree to which direct costs are analysed, and the degree and method by which joint  and common costs are included in interconnection charges. 4. Accounting conventions i. e. the accounting conventions used for the treatment of costs covering: - the timescale for depreciation of major categories of fixed asset (e.g. land, buildings,  equipment, etc.), - the treatment, in terms of revenue versus capital cost, of other major expenditure items (e.g.  computer software and systems, research and development, new business development, direct and  indirect construction, repairs and maintenance, finance charges, etc.). The information on cost accounting systems to be published, as identified in this Annex, may be  amended in accordance with the procedure in Article 18. ANNEX VI THRESHOLD IN TELECOMMUNICATIONS TURNOVER - ARTICLE 8 (5) The threshold for  annual turnover in telecommunications activities referred to in Article 8 (5) shall be ECU 50  million. ANNEX VII FRAMEWORK FOR NEGOTIATION OF INTERCONNECTION AGREEMENTS - ARTICLE 9 (3) PART  1 Ex-Ante conditions to be set by the national regulatory authority (a) Dispute resolution procedure. (b) Requirements for publication/access to interconnection agreements and other periodic  publication duties. (c) Requirements for the provision of equal access and number portability. (d) Requirements to provide facility sharing, including collocation. (e) Requirements to ensure the maintenance of essential requirements. (f) Requirements for allocation and use of numbering resources (including access to directory  services, emergency services and pan-European numbers). (g) Requirements concerning the maintenance of end-to-end quality of service. (h) Where applicable, determination of the unbundled part of the interconnection charge which  represents a contribution to the net cost of universal service obligations. PART 2 Other issues which should be covered in interconnection agreements (a) Description of interconnect services to be provided. (b) Terms of payment, including billing procedures. (c) Locations of the points of interconnection. (d) Technical standards for interconnection. (e) Measures to conformance with essential requirements. (f) Intellectual property rights. (g) Definition and limitation of liability and indemnity. (h) Definition of interconnection charges and their evolution over time. (j) Dispute resolution procedure between parties before requesting national regulatory authority  intervention. (k) Duration and renegotiation of agreements. (m) Procedures in the event of alterations being proposed to the network or service offerings of  one of the parties. PART 3 Other issues which may be covered in interconnection agreements (a) Achievement of equal access. (b) Provision of facility sharing. (c) Access to ancillary, supplementary and advanced services. (d) Traffic/network management. (e) Maintenance and quality of interconnection services. (f) Confidentiality of non-public parts of the agreements. (g) Training of staff.