CELEX: 51995PC0319
Language: en
Date: 1995-07-06
Title: Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE on the use of standards for the transmission of television signals (including repeal of Directive 92/38/EEC)

COMMISSION OF THE EUROPEAN COMMUNITIES
                                        Brussels, 06.07.1995
                                        COM(95) 319 final - COD 476
            OPINION OF THE COMMISSION
   pursuant to Article 189 b (2) (d) of the EC Treaty,
        on the European Parliament's amendments
    to the Council's common position regarding the
                        proposal for a
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE
       on the use of standards for the transmission
                    of television signals
        (including repeal of Directive 92/38/EEC)
 AMENDING THE PROPOSAL OF THE COMMISSION
     pursuant to Article 189 a (2) of the EC Treaty
 ---pagebreak---  ---pagebreak---                            EXPLANATORY MEMORANDUM
    The proposed Directive of the European Parliament and Council comes under the
   co-decision procedure (Article 189b of the EC Treaty).
   Article 189b. 2(d) requires the Commission to express its Opinion on the
    amendments proposed by the European Parliament in its second reading.
    The Commission hereby presents its opinion on the six amendments proposed by the
   European Parliament. In accordance with Article 189a (second paragraph) the
    Commission also presents a modified proposal incorporating the amendments which
    the Commission has accepted
1.  BACKGROUND
    On 16 November 1993 the Commission presented to the European Parliament and to
    the Council a proposal1 for a Directive of the European Parliament and of the
    Council on the use of standards for the transmission of television signals based on
    Articles 57(2), 66 and 100a of the Treaty.
    The European Parliament delivered a favourable opinion in a first reading on 19 April
    1994 2 .
    The Economic and Social Committee gave a favourable opinion on this proposal on
    23 March 19943 .
    On 25 October 1994 the Commission presented to the Council a Modified Proposal
    incorporating those European Parliament amendments4 accepted by the Commission.
    On 22 December 1994 the Council, acting in accordance with Article 189b of the
    Treaty adopted a Common Position on the Proposed Directive5.
    The European Parliament voted on the second reading on 13 June 1995, adopting a
    favourable resolution which included six amendments to the Common Position.
2-  PURPOSE OF THE DIRECTIVE
    The proposal for a Directive on the use of standards for the transmission of television
     signals has the objectives of:
     - creating a regulatory environment of standards for the transmission of advanced
        television broadcast signals;
     - facilitating the connection of peripherals to television sets in a harmonized manner
        throughout the Union;
1
   OJNo C 341, 18.12.1993, p. 18.
2
   OJNoC128, 9.5.1994, p. 54
3
   OJNo C148, 30.5.1994, p. 1
4
   COM (94) 455 FINAL - COD 476
5
   ECO 276, CODEC 80, 22.12.1994
 ---pagebreak---     - creating a common framework throughout the Union for conditional access to
        digital Pay-TV services;
    - promoting the transmission of wide screen television services on cable television
        networks.
3.  POSITION OF THE COMMISSION ON THE EP AMENDMENTS
    In considering the amendments proposed by the European Parliament on second
    reading, the Commission can accept those which:
    i)      are consistent with the Commission's initial proposal, and/or
    ii)     are consistent with the Commission's position on the first reading of the
            European Parliament, and/or
    iii)    clarify the text in a useful way.
3.1 Amendments accepted by the Commission
    The European Parliament proposes six amendments following intensive consultation
    with the involved market parties. Since these amendments achieved a large majority
    in the Parliament and since they are consistent with the Commission's intentions
    expressed in its previous amended proposal, the Commission can accept all six
    amendments. The rational for this position is set out in detail below.
    3.1.1 The Commission can accept the value of affirming the importance of
            encouraging entrepreneurs to invest in conditional access services provision
            and can accept that such an idea is expressed in a recital as part of amendment
             5.
    3.1.2 The Commission agrees that reference to the threat of piracy and the necessity
            for appropriate anti-piracy legislation is appropriate and therefore accepts
             amendment 1 (a new recital).
    3.1.3 The Commission agrees that it is helpful to refer to the general principle of
             open access to networks and therefore accepts amendment 2 (a new recital).
    3.1.4 The Commission accepts that the facilitation of wide-screen television services
             on digital networks in a manner compatible with market and consumer
            interests is a desirable objective and therefore accepts amendment 3 (new text
             on Article 1) on the understanding that it is not intended to place Member
             States under binding obligations.
    3.1.5 The Commission can accept the definition of a wide-screen television service
             and the identification of the 16:9 aspect ratio as the standard in this
             connection. It also supports the concept of digital networks being capable of
             distributing wide-screen television services.        It can therefore accept
             amendment 4 (new text in Article 2).
 ---pagebreak---     3.1.6 In amendment 5 the European parliament adds new elements to Article 4 of
          the Common Position dealing with conditional access to digital television.
          These new elements, which result from consultation between the Parliament
           and the market parties, include:
          - the inclusion of provisions relating to television signals transmitted 'in the
              clear* i.e. unscrambled;
          - the requirement that commercial relations between conditional access
              service providers and broadcasters be conducted on fair, reasonable and
              non-discriminatory terms;
          - the requirement that separate accounts are kept for conditional access
              businesses;
           - the requirement that providers of digital television services publish a list of
              tariffs and ;
           - the availability in Member States of appropriate dispute resolution
              procedures.
           The Parliament made editorial changes to clarify the previous text in some
           instances.
           The Commission can accept this amendment as it adds new consensus
           elements of fairness, transparency and dispute resolution to the previous
           industry consensus on conditional access.
    3.1.7 The Commission can accept amendment 6 which makes drafting changes to
           the text of Article 6 of the Common Position as these changes add useful
           clarification.
4.  CONCLUSION
4.1 In accordance of Article 189b, paragraph 2 of the EC Treaty, the Commission hereby
    gives its Opinion on the amendments adopted by the European Parliament on second
    reading. The Commission accepts all six amendments proposed by the Parliament as
    they are fully compatible with the goals of this Directive. The modified proposal
    (annex) incorporates these amendments. In accordance with Article 189a (second
    paragraph) the Commission hereby modifies its proposal.
 ---pagebreak---                              Amended proposal for a
           EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE
                    on the use of standards for the transmission
                                of television signals
(presented by the Commission in accordance with Article 189a, second paragraph, of
the EC Treaty)
 ---pagebreak---                     EXPLANATORY MEMORANDUM
The proposed Directive of the European Parliament and Council comes under the
co-decision procedure (Article 189b of the EC Treaty).
Article 189b. 2(d) requires the Commission to express its Opinion on the
amendments proposed by the European Parliament in its second reading.
The Commission hereby presents its opinion on the six amendments proposed by the
European Parliament. In accordance with Article 189a (second paragraph) the
Commission also presents a modified proposal incorporating the amendments which
the Commission has accepted
 ---pagebreak--- Common Position of the Council                       Amended Text
                             Recital 15a (new)
                                      Whereas the operators of conditional
                                      access services should be entitled to earn a
                                      return on their investments and for the
                                      provision of services to broadcasters as an
                                      incentive to continue to invest:
                             Recital 17a (new)
                                      Whereas in the European audiovisual
                                      digital environment, the scope for piracy
                                      will increase, with negative consequences
                                      for operators and programme providers,
                                      and whereas the introduction and
                                      enforcement of efficient anti-piracv
                                      legislation at the European level will
                                      become increasingly necessary.
                             Recital 19a (new)
                                      Whereas the Presidencv's conclusions at
                                      the G7 Conference on the Information
                                      Society held in Brussels on 25-26
                                      February 1995 highlighted the need for a
                                      regulatory framework ensuring open
                                      access networks and respect for
                                      competition rules:
                     Article 1, second paragraph (new)
                                      Member States shall facilitate the transfer
                                      of wide-screen television services already
                                      in operation to digital transmission
                                      networks open to the public, in particular
                                      pursuant to Directive 92/38/EEC and
                                      Decision 93/424/EEC. in order to protect
                                      the interests of operators and television
                                      viewers who have invested to produce or
                                      receive such services.
 ---pagebreak---                                              Article 2
All television services transmitted to All television services transmitted to
viewers in the Community whether by viewers in the Community whether by
cable, satellite or terrestrial means shall:     cable, satellite or terrestrial means shall:
(a) if they are in wide-screen format and (a) if they are in wide-screen format and
     625 lines, and are not fully digital,             625 lines, and are not fully digital,
     use the 16:9 D2-MAC transmission                  use the 16:9 D2-MAC transmission
     system, or a 16:9 transmission system             system, or a 16:9 transmission system
     which is fully compatible with Pal OR             which is fully compatible with Pal OR
      Secam:                                           Secam;
                                                       a wide-screen television service
                                                       consists of programmes produced
                                                       and edited to be displayed on a wide-
                                                       screen format:
                                                       the 16:9 format is the reference
                                                       format for wide-format television
                                                       services:
     (b)         if they are in high (b) if they are in high definition, and are
     definition, and are not fully digital,            not fully digital, use the HD-MAC
     use the HD-MAC transmission                       transmission system;
     system;
(c) if they are fully digital, use a (c) if they are fully digital, use a
     transmission system which has been                transmission system which has been
     standardized       by a recognized                standardized      by a recognized
     European standardization body. In                 European standardization body. In
     this context, a transmission system               this context, a transmission system
     comprises the following elements:                 comprises the following elements:
     formation of programme signals                    formation of programme signals
     (source coding of audio signals,                  (source coding of audio signals,
     source coding of video signals,                   source coding of video signals,
     multiplexing       of      signals)   and         multiplexing       of     signals)   and
     adaptation for transmission media                 adaptation for transmission media
     (channel coding, modulation and, if               (channel coding, modulation and, if
     appropriate, energy dispersal).                   appropriate, energy dispersal);
                                                       fully digital transmission networks
                                                       open to the public for the distribution
                                                       of television services must be capable
                                                       of distributing wide-screen format
                                                       services.
 ---pagebreak---      Common Position of the Council                           Amended Text
                                           Article 4
In relation to conditional access to digital   In relation to conditional access to digital
Pay-TV services broadcast to viewers in        television services broadcast to viewers in
the Community the following conditions         the Community, irrespective of the means
shall apply:                                   of transmission, the following conditions
                                               shall apply:
(a) all consumer equipment, for sale or        (a) all consumer equipment, for sale or
      rent or otherwise made available in      rent or otherwise made available in the
      the     community,       capable     of  Community, capable of descrambling
      descrambling      digital    television  digital television signals, shall possess the
      signals, shall possess capability to     capability:
      allow the descrambling of such
      signals according to the common               to allow the descrambling of such
      European scrambling algorithm as         signals according to the common
      administered by a recognized             European          scrambling        algorithm
      European standardization body;           administered by a recognized European
                                               standardization body;
                                                     to display signals that have been
                                               transmitted in clear provided that, in the
                                               event that such equipment is rented, the
                                               rentee is in compliance with the relevant
                                               rental agreement:
(b)      conditional     access      systems   (b) conditional access systems operated
operated on the market in the Community        on the market in the Community shall have
shall have the necessary technical             the necessary technical capability for cost
capability for cost effective transcontrol at  effective transcontrol at cable head-ends
cable head-ends allowing the possibility       allowing the possibility for full control by
for full control by cable television           cable television operators at local or
operators at local or regional level of the    regional level of the services using such
services using such conditional access         conditional access systems;
systems;
 ---pagebreak--- Common Position of the Council                        Amended Text
                             Article 4 (contd.)
                                       (ba) Member States shall take all the
                                       necessary measures to ensure that the
                                       operators of conditional access services,
                                       irrespective of the means of transmission,
                                       who produce and market access services
                                       to digital television services:
                                       - offer to all broadcasters, on a fair,
                                       reasonable and non-discriminatorv basis,
                                       technical       services     enabling    the
                                       broadcasters' digitally-transmitted services
                                       to be received by viewers authorized bv
                                       means of decoders administered by the
                                       service operators, and comply with
                                       Community competition law, in particular
                                       if a dominant position appears:
                                              keep separate financial accounts
                                       regarding their activity as conditional
                                       access providers:
                                       Broadcasters shall publish a list of tariffs
                                       for the viewer which takes into account
                                       whether associated equipment is supplied
                                       or not:
                                       A digital television service may only take
                                       advantage of these provisions if the
                                        services offered comply with the European
                                       legislation in force:
                                      10
 ---pagebreak---     Common Position of the Council                         Amended Text
(c) in connection with the inclusion by (c)         when      granting    licences     to
    manufacturers of conditional access manufacturers of consumer equipment,
    systems in consumer equipment:          holders of industrial property rights to
                                            conditional access products and systems
    - where conditional access systems shall ensure that this is done on fair,
       are licensed to manufacturers, this reasonable and non-discriminatory terms.
       shall be done on fair, reasonable Taking into account technical and
      and non-discriminatory terms;         commercial factors, holders of rights shall
                                            not subject the granting of licences to
    - licensing or other provision of conditions prohibiting, deterring or
       conditional access systems to discouraging the inclusion in the same
      manufacturers shall be done in product of
       such a way as not to prevent the
      inclusion of either another - a common interface allowing connection
       conditional access system or a with several other access systems: or
       common interface, provided that - means specific to another access system,
       relevant     security    conditions provided that the licensee complies with
       relating to the conditional access the relevant and reasonable conditions
       system are met.                      regarding the security of transactions of
                                            conditional access system operators:
                                            Where television sets contain an integrated
                                            digital decoder such sets should allow for
                                            the option of fitting at least one
                                            standardized socket permitting connection
                                            of conditional access and other elements
                                            of a digital television system to the digital
                                            decoder.
                                            (ca) without prejudice to any action that
                                            the Commission or any member State may
                                            take pursuant to the Treaty. Member
                                            States shall ensure that any party having
                                            an unresolved dispute concerning the
                                            application of the provisions under rules
                                            established in this Article shall have easy
                                            and, in principle inexpensive, access to
                                            appropriate dispute resolution procedures
                                            with the objective of resolving such
                                            disputes in a fair, timely and transparent
                                            manner.
                                            This procedure shall not preclude action
                                            for damages from either side. If the
                                            Commission is asked to give its opinion on
                                            the application of the Treaty, it shall do so
                                            as a matter of urgency.
                                           11
 ---pagebreak---      Common Position of the Council                           Amended Text
                                          Article 6
Before 1 July 1997 and every two years        Before 1 July 1997 and every two years
thereafter, the Commission shall review       thereafter, the Commission shall examine
this Directive and submit a report to the     the implementation of this Directive and
European Parliament, to the Council and       the development of the market for digital
to the Economic and Social Committee on       television     services throughout      the
market and technological developments, in     European Union and submit a report to
particular relating to developments in        the European Parliament, to the Council
digital technology and also to market         and to the Economic and Social
developments on conditional access to         Committee.        This report shall cover
digital television services. If necessary,    market developments, in particular relating
the Commission shall make proposals to        to developments in digital technology and
the Council to adapt this Directive to these  services and also to technical and
developments.                                 commercial market developments on
                                              conditional access to digital television
                                              services. If necessary the Commission
                                              shall make proposals to the Council to
                                              adapt      this    Directive   to     these
                                              developments.
                                             12
 ---pagebreak---                                                                     ISSN 0254-1475
                                                             COM(95) 319 final
                                              DOCUMENTS
EN                                                                             16
                                     Catalogue number : CB-CO-95-348-EN-C
                                                              ISBN 92-77-91222-7
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