CELEX: 51994PC0483(01)
Language: en
Date: 1994-11-17
Title: Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL DECISION on a series of guidelines for the development of ISDN as a trans-European network

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(94) 483 fin«*l-COD 495
                                                                       SYH 528
                                                   Brussels,   17.11.1994
                                Amended proposal for a
              EUROPEAN PARLIAMENT AND COUNCIL DECISION                     COD 495
                on a series of guidelines for the development of ISDN
                              as a trans-European network
                                 Amended proposal for a
                                     COUNCIL DECISION                       SYN 528
          on the adoption of a multiannual Community action concerning the
                  development of ISDN as a trans-European network
                      (presented by the Commission pursuant to
                           Article 189a(2) of the EC Treaty)
»:'f!
 ---pagebreak--- EXPLANATORY MEMORANDUM
1.      INTRODUCTION
1.1     On 1 September 1993, the Commission' adopted its proposals1 for :
                 a decision on a series of guidelines for the development of ISDN2 as
                 a trans-European network, and
                 a decision on the adoption of a multi-annual Community action
                 concerning the development of ISDN as a trans-European network.
        They seek to develop ISDN as a trans-European network.
1.2     The Economic and Social Committee gave its favourable opinion on
        21 December 19933. The Committee of the Regions adopted its favourable
        opinion on 17/18 May 19944.
1.3     At its first reading on 19 April 1994, the European Parliament adopted in
        total 22 amendments5 to the two Commission proposals. The amendments
        numbered from 1 to 10 deal with the proposal on a series of guidelines for
        the development of ISDN as a trans-European network. The amendments
        numbered from 11 to 22 deal with the proposal for the adoption of a multi-
        annual Community action concerning the development of ISDN as a trans-
        European network.
 1.4     From the ten amendments concerning the proposal on a series of guidelines
         for the development of TEN-ISDN as a trans-European network, the
         Commission can accept five. The Commission can accept a further
         amendment but with modification to the Parliament text. The remaining
         four amendments cannot be accepted by the Commission.
 1.5     From the other twelve amendments concerning the proposal on adopting a
         multi-annual Community action concerning the development of ISDN as a
        trans-European network, the Commission can accept three amendments as
         proposed. The Commission can accept a further amendment but with
         modification to the Parliament's text. Eight of the amendments cannot be
         accepted by the Commission.
 1.6     The rationale for these decisions is explained below. Annex 1 reproduces
         the amendments of the European Parliament which were rejected by the
         Commission. Annex 2 (for the Guidelines-Decision) and Annex 3 (for the
          Action-Decision) show the "Initial Commission Proposal" (left column) and
          the entire new text of the "Modified Commission Proposal" (right column).
 1
     COM(93) 347 final, 1.09.93
 2
     Integrated Services Digital Network;
 3
     CES 1313/93
 4
     CdR 42/94
 5
     Refer Delcroix report as adopted
 ---pagebreak--- 1.7 Moreover, in consideration of the coming into force of the Treaty of the
    European Union on 1.11.1993, the provisionally proposed legal basis,
    Article 235 of the Treaty establishing the European Economic Community,
    is replaced in both proposed decisions by Article 129d (the first indent in
    the "guidelines" decision and the second indent in the "action" decision) of
    the said former Treaty.
    PURPOSE OF THE PROPOSALS
    One of the goals of the Community's telecommunications policy is to
    promote a telecommunications infrastructure based on interconnected
    networks integrating a number of harmonised services covering the whole
    of Europe.
    Since 1984, ISDN is a key element of the Community's telecommunications
    policy.
    Many efforts have already been undertaken by the public network operators
    and the Member States. However, not all aspects required for a successful
    Community-wide introduction of EURO-ISDN are yet in place. Additional
    efforts at the level of the Member States and at Community level to ensure
    network interconnectivity and the interoperability of a number of basic
    services throughout the Community are necessary.
    The two proposed decisions contain:
    - a series of guidelines, including the broadline of measures, objectives,
        priorities and the projects of common interest and
    - the framework for a proposed Community action for the implementation
        of the projects of common interest, both related to the development of
        ISDN as a trans-European telecommunications network.
     The implementation of the measures presented in this proposal to develop
     ISDN as a trans-European network will have to take into account the
     evolution of the regulatory regime. Regulatory changes in the course of the
     said evolution which would concern the development of ISDN will be fully
     taken into account.
3.   AMENDMENTS PROPOSED BY THE EUROPEAN
     PARLIAMENT (FIRST READING)
     In the following sections, the amendments from the EP are distinguished in
     three classes:
              amendments accepted by the Commission;
              amendments accepted in principle by the Commission and
              amendments rejected by the Commission.
                                    3
 ---pagebreak--- 3.1  ACCEPTED AMENDMENTS
3.LI The Commission accepts the following amendments: numbers : 1, 5 (2nd
     part)? 6, 7, 9, 10, 12, 13, 17, 21 (2nd part) and 22 (rcf. annex 1),
     considering that they enhance the Commission's original proposals.
     In line with the intentions of the initial proposal, Amendments No. 1 and 12
     improve the terminology of the text.
     Amendments No. 5 (2nd part) and 17 add a reference to broad band
     networks. Broad band networks are the succesor of ISDN and a next major
     topic for transeuropean telecomunication networks and hence these
     references are appropriate.
     Amendments No. 6 and 21 (2nd part) propose that the proposal TEN-
     ISDN covers also the promotion of application software. Indeed,
     application software is an important aspect for the participation in a
     transeuropean network or service and worth to be mentioned explicitly.
     Amendment No. 7 concerns a reference to conformity with Community
     rules and is acceptable to the Commission.
     One main feature of the TEN-ISDN proposal is the access to basic
     services. The amendment No. 9 introduces the list of five basic services
     so far contained only in the accompanying communication into the legal
     part of the proposal. This is fully in line with the original intention.
      Amendment No. 10, 13 and 22 address under various angles the promotion
      and benefits of ISDN usage by SME's. As stated in the initial proposal,
      SME's are the first target group of the proposal TEN-ISDN, Therefore
      these three amendments are acceptable.
      All these amendments are incorporated into the Modified proposals in
      order to allow them to be considered by the Council.
 3.2  AMENDMENTS ACCEPTED IN PRINICPLE
      This section provides information concerning those amendments of the EP
      which have been accepted in principle by the Commission, but where the
      text was revised.
 ---pagebreak--- 3.2.1 The Commission accepts the substance of amendments: numbers: 2, 5 (3rd
      part), 14, 15 (1st part), 16 (1st part), 18, and 19 with modification to the
      text as proposed in annex II and III. The revisions reflect in many instances
      editorial aspects like the usage of technical terms. Several items concern the
      extension of the objectives of the proposed action to non-Member States.
3.2.2 Amendment 2
      The Commission can accept the reference to the broad band networks
      introduced by the Parliament. However, the Parliament's text might let
      understand that the ISDN is not considered as "Information Highway".
      Hence, the text is slightly revised to this end.
3.2.3 Amendment 5. 3rd part
      The Commission can accept, that the applicability of the objectives defined
      by Article 2 are extended beyond the member states. However, in the light
      of recent developments, a reference to the countries of the European
      Economic Area and to countries with association agreements should be
      made (instead of referring to the EFT A states).
3.2.4 Amendment 14
      The Commission accepts in principle the amendment, but the term
      "applications" is replaced by the term "services", since it is the services ("S"
      in ISDN = services) which are subject to harmonisation rather than
      applications.
3.2.5 Amendment 15. 1st part
              same as Point 3.2.3) above.
3.2.6 Amendment 16. 1st part
      The Commission supports       the introduction of the notion "coordination",
      regarding the projects of     common interest. However, this coordination
      should not be limited to       the definition of feasibility studies and their
      conduct, but should extend    also to implementation aspects.
3.2.7  Amendment 18
       same as Point 3.2.3) above.
                                      y
 ---pagebreak--- 3.2.8  Amendment 19
       The Commission understands the desire of the European Parliament to
       ensure that the Commission conducts such negotiations with non-
       Community member states in consultation with special, committees
       composed of representatives of the Member States. Article 228, (1), first
       paragraph, second sentence of the Treaty provides for such consultations
       and therefore there is no reason to duplicate this consultation procedure.
3.3.   REJECTED AMENDMENTS
3.3.1  Amendment 3
       The difference between this amendment concerning the necessity of a
       Community action and the initial text is rather small. The initial text is
       preferred because it explains better the consequences of non-action at
       Community level. Moreover, the initial text uses the terms interconnectivity
       and interoperability in a technically more correct way.
3.3.2  Amendment 4
       Similarly, as for amendment 3), the text difference is rather small, but the
       usage of technical terms in the initial text is more correct.
 3.3.3  Amendment 8
               same as Point 3.3.2) above.
 3.3.4  Amendment 11
        Since the standardisation for the ISDN infrastructure is - by all practical
        means - finished, it is not deemed appropriate to include a clause which
        requires that this standardisation work takes account of foreseeable
        technical developments.
 3.3.5  Amendment 15. 2nd part
        The initial text is preferred since it speaks of the interconnection of ISDN,
        the substance matter of the two proposals, as opposed to the EP
        amendment which refers to telecommunications networks in general.
 ---pagebreak--- 3.3.6 Amendment 16. 2nd part
      The proposed action concerns Community support, in the first place from
      the TEN-budget. A formulation "externally" funded is hence less
      appropriate. Moreover, the formulation used in the EP amendment, implies
      a possible differentiation of funding between infrastructure and services.
      However, the initial proposal is not conceived in that way.
3.3.7 Amendment 16. 3rd part
               same as Point 3.3.2) above.
3.3.8 Amendment 20
      Comitology is a horizontal issue which has to be resolved at inter-
      institutional level.
3.3.9 Amendment 21. 1st part
               same as Point 3.3.6) above.
4.    CONCLUSION
4.1   The Commission recommends the Modified proposals in Annexes II and
      III for the approval by the European Parliament (1st Decision) and the
      Council.
                                     Y
 ---pagebreak---                                                Annex I
                                 Rejected amendments
  Modified proposal for a European Parliament and Council Decision on a series of
         guidelines for the development of ISDN as a trans-European network
                                Amendment N° 4, 5th recital
Whereas it is important, for the purpose of the internal market, to facilitate the
movement of goods, services, persons and capital between the Community and non-
Community countries, and more specifically the member countries of the European
Free Trade Association; whereas this will lead to intensified trade relations between the
economic operators of the countries concerned, whereas in turn this requires
cooperation with those countries in order to promote European-wide connectivity of
telecommunications networks and interoperability of ISDN
                                Amendment N° 3, 4th recital                    _
Whereas appropriate Community action is needed to establish coordination between the
Member States and those responsible for laying the basic infrastructure, in order to
ensure a harmonised introduction of ISDN services; whereas it is therefore essential to
promote interconnection of regional networks and interoperability of ISDN as well as
substantial availability of compatible basic services
                                       Amendment N° 5
                                           Article 2
On the assumption that ISDN facilities are available in all the Member States, the
objectives for the development of ISDN as trans-European are:
     the development of a set of services based on ISDN and conforming to harmonised
     European standards referred to hereafter as EURO-ISDN, with account taken of
     the future introduction of a European broadband communications network:
     the full geographical coverage of EURO-ISDN facilities in all Member States and
     member countries of the European Free Trade Association.
                                       Amendment N° 8
                                           Article 7
The Commission is hereby authorised to open negotiations with non-Community
countries likely to conclude agreement with the Community designed to allow them to
 participate in the projects of common interest referred to in the Annex and to improve
 interconnection of national networks and interoperability of the ISDN implementation
between those countries and the Community Member States.
                                             8
 ---pagebreak---  Modified proposal on the adoption of a multi-annual Community action concerning
                 the development of ISDN as a trans-European network
                                Amendment N° 11, 7th recital
Whereas ISDN is a natural development of the telephone network; and is an important
intermediate stage in technical development from the telephone network to integrated
digital broadband telecommunications: whereas the standardisation of its infrastructure
should as far as possible take account of foreseeable technical advances:
                             Amendment N° 15, 12th recital
Whereas cooperation is also appropriate with non-Community countries, especially the
member countries of the European Free Trade Association, in order to promote
projects of common interest and to ensure interconnection of telecommunications
networks and interoperability of ISDN implementation.
                                    Amendment N° 16                        __
                                          Article 2
The objective of the action is to support projects of common interest concerning the
development of ISDN as a trans-European network, identified in Decision ...; such
support shall concern both the coordination required for the implementation of externally
- and in particular Community - funded telecommunications infrastructures (definition of
and feasibility studies concerning projects of joint interest and the promotion of basic
ISDN facilities in conformity with the relevant harmonised standards produced by ETSI,
with a view to ensuring the interconnection of telecommunications networks and the full
interoperability of ISDN implementations.
                                            S
 ---pagebreak---                                     Amendment N° 20
                                        Article 7
1. A Committee composed of the representative of the Member States (public
   network operators, industrialists, service providers and users) and chaired by the
   representative of the Commission shall be set up. It shall act bv the majority
   specified in Article 148(2) of the EC Treaty in the case of decisions which the
   Council is required to adopt on a proposal from the Commission. The votes of the
   representatives of the Member States within the committee shall be weighted in the
   manner set out in that Article. The Chairman shall not vote.
2. The Commission shall submit to Parliament, represented by its committee
   responsible, and to the Council, represented bv the committee referred to in the
   previous paragraph, a draft of the measures to be taken in implementation of this
   Decision.
   It may, according to the urgency of the matter, set a deadline bv which Parliament
   and the Council may adopt a position, if they so wish.
3. The Commission shall take account of the positions adopted by the padiamentary
   committee and the Council Committee, it shall, if necessary, amend its draft
   decision. The Commission shall inform the parliamentary committee and the
   Council committee of the manner in which their positions have been taken into
   account.
   The Commission shall accordingly adopt implementing measures which apply
   immediately.
                                        ANNEX
                                  Amendment N° 21
                          Annex (1),firstand second indents
       projects of infrastructural nature: precise definition of projects of common
       interest and interest subsidies and loan guarantees granted to operators
       implementing the projects: the infrastructures will be funded externally, in
       particularfromCommunity funds.
       projects concerning telematic services and applications of trans-frontier
       nature; projects promoting the ISDN usage including promotion of ISDN
       terminal and application software availability;
                                        M>
 ---pagebreak---                                           Annex II
  Modified proposal for a European Parliament and Council Decision on a series of
         guidelines for the development of ISDN as a trans-European network .COD 495
Initial Commission Proposal                   Modified Commission Proposal
THE        COUNCIL         OF       THE       THE EUROPEAN PARLIAMENT
EUROPEAN COMMUNITIES,                         AND THE COUNCIL,
Having regard to the Treaty                   Having regard to the Treaty
establishing the European Economic            establishing the European Community,
Community, and in particular Article          and in particular Article 129 d. first
235 thereof;                                  paragraph, thereof:
Having regard to the proposal from the        Having regard to the proposal from the
Commission1;                                  Commission1;                   —
Having regard to the opinion of the
European Parliament,
Having regard to the opinion of the           Having regard to the opinion of the
Economic and Social Committee;                Economic and Social Committee;
                                              Having regard to the opinion of the
                                              Committee of the Regions;
Whereas the internal market establishes       Whereas the internal market establishes
an area without internal frontiers within     an area without internal frontiers within
which the free movement of goods,             which the free movement of goods,
persons, services and capital must be         persons, services and capital must be
guaranteed; whereas in order to ensure        guaranteed; whereas in order to ensure
each of these freedoms the Community          each of these freedoms the Community
acts adopted or being adopted provide         acts adopted or being adopted provide
for measures involving substantial            for measures involving substantial
interchange      of    data     between       interchange      of    data      between
individuals, economic operators and the       individuals, economic operators and the
competent administrations; whereas            competent administrations; whereas
such interchange can be ensured using         such interchange can be ensured using
trans-European networks;                      trans-European networks;
Whereas the aim of establishing trans-        Whereas the aim of establishing trans-
European networks is to allow of the          European networks is to allow of the
circulation of information, with a view       circulation of information, with a view
to enable the proper functioning of the       to enable the proper functioning of the
internal market for all participants, in      internal market for all participants, in
particular the small and medium sized         particular the small and medium sized
enterprises in the Community;                 enterprises in the Community;
                                            yH
 ---pagebreak--- Whereas a trans-European ISDN will         Whereas an ISDN network, as a natural
form a basic element of trans-European     development of the telephone network,
telecommunications network                 will form one of the main elements of
                                           trans-European       telecommunications
                                           networks
                                           Whereas the "information highways" of
                                           the next generation, i.e. the high-
                                           capacity networks, will be the subject
                                           of Community actions to coordinate
                                           and harmonise their development at
                                           Community and European level
Whereas it is important, for the           Whereas it is important, for the
purpose of the internal market, to         purpose of the internal market, to
facilitate the movement of goods;          facilitate the movement of goods,
services, persons and capital between      services, persons and capital between
the Community and non-Community            the Community and non-Community
countries, and more specifically the       countries, and more specifically the
member countries of the European Free      member countries of the European Free
Trade Association; whereas this will       Trade Association; whereas this will
lead to intensified trade relations        lead to intensified trade relations
between the economic operators of the      between the economic operators of the
countries concerned; whereas in turn       countries concerned; whereas in turn
this requires cooperation with those       this requires cooperation with those
countries in order to promote              countries in order to promote
European-wide        connectivity     and  European-wide        connectivity     and
interoperability of ISDN;                  interoperability of ISDN;
Whereas       appropriate     Community    Whereas      appropriate     Community
action is needed to establish adequate     action is needed to establish adequate
coordination between the Member            coordination between the Member
States and those responsible for laying    States and those responsible for laying
the basic infrastructure, in order to      the basic infrastructure, in order to
ensure a harmonised introduction of        ensure a harmonised introduction of
ISDN services; whereas failure to          ISDN services; whereas failure to
adopt a Council Decision on the            adopt a Council Decision on the
development of ISDN as a trans-            development of ISDN as a trans-
European network would be liable to        European network would be liable to
result in a lack of interconnection and    result in a lack of interconnection and
interoperability     between      national interoperability     between      national
networks and in a limited availability of  networks and in a limited availability of
compatible basic services;                 compatible basic services;
Whereas the only legal basis provided
by the Treaty for adoption of this
decision lies in Article 235;
HAS DECIDED AS FOLLOWS:                    HAVE DECIDED AS FOLLOWS:
                                           At
 ---pagebreak---                                              Article 1
This Decision lays down the guidelines            This Decision lays down the guidelines
identifying the objectives, priorities,           identifying the objectives, priorities,
broad lines of measures and a number              broad lines of measures and a number
of projects of common interest                    of projects of common interest
concerning the development of ISDN                concerning the development of ISDN
as trans-European network.                        as trans-European network.
                                             Articled
The objectives for the development of             The objectives for the development of
ISDN as trans-European network are:               ISDN as trans-European network are:
- the availability of ISDN facilities             - the development of a set of services
    including a basic set of services frilly          based on ISDN and conforming to
    conformant to harmonised European                 harmonised European standards
    standards referred to hereafter as                referred to hereafter as~EURO-
    EURO-ISDN;                                        ISDN. with account taken of the
                                                      future introduction of a European
                                                      broadband               communications
                                                      network;
    the full geographical coverage of             - the full geographical coverage of
   EURO-ISDN            facilities in all            EURO-ISDN            facilities in all
   Member States                                      Member        States     and   member
                                                      countries of the European Economic
                                                      Area or countries which have
                                                      association agreements with the
                                                      Community.
                                             Article 3
The priorities for attainment of the              The priorities for attainment of the
objectives referred to in Article 2 are as        objectives referred to in Article 2 are as
follows:                                          follows:
      to contribute to the rapid                        to contribute to the rapid
      availability     of       EURO-ISDN               availability     of       EURO-ISDN
      facilities for all business users, in             facilities for all business users, in
      particular small and medium sized                 particular small and medium sized
      enterprises;                                      enterprises;
     to maximise the usage of EURO-                     to maximise the usage of EURO-
      ISDN in the Community;                            ISDN in the Community;
      to facilitate the access of the                   to facilitate the access of the
      peripheral regions by means of                    peripheral regions by means of
     EURO-ISDN.                                        EURO-ISDN.
                                              A}>
 ---pagebreak---                                            Article 4
The broad lines of action designed to           The broad lines of action designed to
attain the objectives referred to in            attain the objectives referred to in
Article 2 shall be as follows:                  Article 2 shall be as follows:
- elimination of bottle-necks in the            - to       ensure      the      end-to-end
   roll-out of EURO-ISDN;                          interoperability of telematic services;
- to       ensure      the     end-to-end       -migration of public and private
   interoperability of telematic services;         sector applications to EURO-ISDN
- migration of public and private               - promotion of EURO-ISDN terminal
   sector applications to EURO-ISDN;               and application software availability
- promotion of EURO-ISDN terminal               - elimination of bottlenecks in the roll-
   availability                                    out of EURO-ISDN
                                           Article 5
The development of ISDN as trans-               The development of ISDN as trans-
European network to be implemented              European network to be implemented
under this Decision shall be covered by         under this Decision shall be covered by
projects of common interest. The                projects of common interest. The
projects are set out in Annex 1.                projects are set out in Annex 1.
                                           Article 6
     The Member States shall introduce          1.   The Member States shall introduce
     the regulatory and organisational               the regulatory and organisational
     measures       to      allow      the           measures       to       allow     the
     implementation of ISDN as a                     implementation of ISDN as a
     trans-European network.                         trans-European network.
                                                     The      Member        States    shall
   The Member States shall encourage                 encourage the public network
   the public network operators to                   operators     to     introduce     the
   introduce the infrastructure required             infrastructure required for the
   for the development of ISDN as a                  development of ISDN as a trans-
   trans-European network.                           European network in accordance
                                                     with Community rules and market
                                                     requirements.
                                             Aij
 ---pagebreak---                                               Article 7
The Commission is hereby authorised                The Commission is hereby authorised
to open negotiations with non-                     to open negotiations with non-
Community        countries     likely     to       Community countries likely to conclude
conclude      agreement        with      the       agreement with the            Community
Community designed to allow them to                designed to allow them to participate in
participate in the projects of common              the projects of common interest
interest referred to in Annex 1 and to             referred to in Annex 1 and to improve
improve        interconnectivity        and        interconnectivity and interoperability of
interoperability     of      the      ISDN         the ISDN implementation between
implementation        between         those        those countries and the Community
countries and the Community Member                 Member States.
States.
                                             Article 8
In 1997, the Commission will carry out             In 1997, the Commission will carry out
an overall evaluation of the guidelines            an overall evaluation of the guidelines
defined in this Decision in the light of           defined in this Decision in the light of
any change in the regulatory conditions            any change in the regulatory conditions
applicable to ISDN.                                applicable to ISDN.
                                             Article 9
This Decision is addressed to the                  This Decision is addressed to the
Member States.                                     Member States.
                                             Article 10
It shall take effect 21 days after its             It shall take effect 21 days after its
publication in the Official Journal of the         publication in the Official Journal of the
European Communities.                              European Communities.
                          Done at                                            Done at
                                               AC
 ---pagebreak---                  ANNEX                                         ANNEX
Projects of common interest concerning        Projects of common interest concerning
the development of ISDN as a trans-           the development of ISDN as a trans-
European network:                             European network:
Elimination of bottler-necks in the           Elimination of bottle-necks in the
roll out of EURO-ISDN:                        roll out of EURO-ISDN:
   Identification of "bottle-necks", eg.         Identification of "bottle-necks", eg.
   in the roll-out of EURO-ISDN and              in the roll-out of EURO-ISDN and
   measures which improve the                    measures which improve the
   availability     of       EURO-ISDN           availability      of     EURO-ISDN
   facilities.                                   facilities.
   Analysis of differences in the                Analysis of differences in the
   existing plans for the introduction of        existing plans for the introduction of
   the packet-mode bearer services and           the packet-mode bearer services and
   proposals which aim at the                    proposals which aim ~àt the
   harmonisation            of        these      harmonisation           of         these
   implementations in a manner that at           implementations in a manner that at
   least a Community-wide service can            least a Community-wide service can
   be offered                                    be offered.
   Development         for     transborder       Development         for     transborder
   applications         in       particular      applications         in       particular
   corresponding      to the needs of            corresponding      to the needs of
   SMEs.                                         SMEs.
Ensure end-to-end interoperability            Ensure end-to-end interoperability
of telematic services:                        of telematic services:
- Development of a common telematic           - Development of a common telematic,
   platform with particular attention to         platform with particular attention to
   the six services listed.                      the following         services    (non-
                                                 exhaustive list):
* Development of a voluntary EURO-
                                                 - transfer of simple data files:
   LABEL.
                                                 - electronic mail and messenger
                                                     services:
                                                     general access to databases
                                                    (especially videotexO
                                                 - visiophone services
                                                 - fax services fgroup 4)
                                            At?
 ---pagebreak---  Migration of public and private         Migration of public and private
sector applications to EURO-ISDN:        sector applications to EURO-ISDN:
   Migration of existing or planned         Migration of existing or planned
   TNA applications to EURO-ISDN.           TNA applications to EURO-ISDN.
   Migration of other applications          Migration of other applications
   (applications developed in the           (applications developed in the
   context of other Community               context of other Community
   measures, eg. health care networks,      measures, eg. health care networks,
   network between scientific parks,        network between scientific parks,
   dedicated networks like IXI etc.) to     dedicated networks like IXI etc.) to
   EURO-ISDN.                               EURO-ISDN.
   Migration of public and private          Migration of public and private
   sector applications operated on          sector applications operated on
   other networks to EURO-ISDN.             other networks to EURO-ISDN.
Promotion of EURO-ISDN terminal          Promotion of EURO-ISDN terminal
        availability:                            availability:
   Analysis of EURO-ISDN terminal           Analysis of EURO-ISDN terminal
   requirements in the context of           requirements in the context of
   market needs.                            market needs.
   Promotion of the availability of         Promotion of the availability of
   EURO-ISDN terminals.                     EURO-ISDN terminals.
                                            Pilot experiment of the Euro
                                            Information      Centres    (E.I.C.):
                                            cost/benefit analysis and subsequent
                                            feasibility study of a generalisation
                                            of ISDN amongst the E.I.C.
                                            Training of staff with a view to the
                                            dissemination and introduction of
                                            EURO-ISDN terminals, especially
                                            as regards SMEs.
- Development of 1-Stop shopping            Development of 1-Stop shopping
   and billing principles for EURO-         and billing principles for EURO-
  ISDN.                                     ISDN.
                                        At
 ---pagebreak---                                          Annex i n
     Modified proposal for a Council Decision on the adoption of a multi-annual
    Community action concerning the development of ISDN as a trans-European
                                          network SYN 528
THE COUNCIL OF THE                            THE        COUNCIL         OF       THE
EUROPEAN COMMUNITIES,                         EUROPEAN UNION,
Having regard to the Treaty                   Having regard to the Treaty
establishing the European Economic            establishing the European Community,
Community, and in particular Article          and in particular Article 129 d. third
235 thereof;                                  paragraph, thereof:
Having regard    to the proposal from the     Having regard  to the proposal from the
Commission1;                                  Commission1;
Having regard to the opinion of the           In cooperation with the European Parliament,2
European Parliament2;
Having regard to the opinion 3of the          Having regard to the opinion 3of the
Economic and Social Committee ;               Economic and Social Committee ;
                                              Having regard to the opinion of the
                                              Committee of the Regions;
Whereas the4 Council adopted a                Whereas the4 Council adopted a
Decision [...] on a series of guidelines      Decision [...] on a series of guidelines
for the development of ISDN as a              for the development of ISDN as a
trans-European network;                       trans-European network;
Whereas the Council Recommendation            Whereas the5 Council Recommendation
86/659/EEC5 calls for the availability         86/659/EEC calls for the availability of
of a set of European-wide compatible          a set of European-wide compatible
ISDN offerings which is also the              ISDN offerings which is also the
subject of a Memorandum of                     subject of a Memorandum of
Understanding (MoU) between the               Understanding (MoU) between the
public telecommunications networks            public telecommunications networks
operators;                                     operators;
Whereas 6the Council Resolution of            Whereas 6 the Council Resolution of
18.07.89 alls for the strengthening of         18.07.89 calls for the strengthening of
the coordination of the ISDN in the           the coordination of the ISDN in the
European Community up to 1992;                European Community up to 1992;
Whereas the Council      Recommendation        Whereas the Council   Recommendation
of 05.06.19927 calls for the application       of 05.06.19927 calls for the application
of the open network access principles          of the open network access principles
to ISDN;                                       to ISDN;
         OJ ...
         OJ ...
         OJ ...
         OJ ...
         OJL382, 31.12,89, p. 36
         OJ (89/C 196704)
         OJ No. L 200/10 from 18.07.92;
                                      m      AS
 ---pagebreak---  Whereas the Council in its Resolution        Whereas the Council in its Resolution
 from 05.06.1992 8 has recognised the         from 05.06.19928 has recognised the
 importance of developing ISDN in the         importance of developing ISDN in the
 context of trans-European networks;          context of trans-European networks;
 Whereas the Council in its Resolution        Whereas the Council in its Resolution
 from 7 December 19929 regarding the          from 7 December 19929 regarding the
 means to ensure the good functioning         means to ensure the good functioning
 of the internal market has stressed the      of the internal market has stressed the
 urgency to reinforce the telematics and      urgency to reinforce the telematics and
 other communications networks;               other communications networks;
 Whereas ISDN is conceived as the             Whereas ISDN is conceived as the
 general switched telecommunications          general switched telecommunications
 network evolved out of the telephone         network evolved out of the telephone
 network;                                     network;
Whereas the availability of a modern          Whereas the availability of a modern
telecommunications infrastructure is an       telecommunications network is an
 important factor to enable the               important factor to enable the
 economic actors to take full benefit         economic actors to take full benefit
 from the market without internal             from the market without internal
 frontiers;                                   frontiers;
Whereas current implementations of           Whereas ISDN is a network which is
ISDN have an insufficient degree of           already operational at high performance
harmonisation, which hinders, for             levels, and whose potential should be
example, the free movement of ISDN            exploited to the full, especially to the
terminal equipment;                          benefit of the general public and SMUs:
                                             Whereas it is necessary to harmonise
                                              services to a sufficient degree so as to
                                             favour the free movement of ISDN
                                             terminal equipment:
Whereas the availability of end-to-end       Whereas the availability of end-to-end
compatible basic service (other than         compatible basic service (other than
voice) is insufficiently developed;          voice) is insufficiently developed;
Whereas there is a need for coordinated      Whereas there is a need for coordinated
action      for    the deployment         of action      for    the   deployment    of
compatible pan-European services, so         compatible pan-European services, so
as to reinforce the competitiveness of       as to reinforce the competitiveness of
European industry;                           European industry;
Whereas         cooperation         is  also Whereas         cooperation     is   also
appropriate       with       non-Community   appropriate       with    non-Communitv
countries, in order to promote projects      countries, especially the member
of common interest and to ensure             countries of the European Economic
interconnectivity and interoperability of    Area and countries with association
ISDN implementations;                        agreements: whereas in accordance
                                             with Article 228. (1). first paragraph,
                                             second sentence of the Treaty, it is
                                             provided that the Commission shall
                                             conduct        these    negotiations   in
                                             consultation with special committees
                                             appointed by the Council to assist in
                                             this task within the framework of such
                                             directives as the Council may issue_tp
                                             it.
         OJ (92/C 158/1) from 25.06.92;
         OJ C 334 from 1812.92, p. 1-3;
                                             A°>
 ---pagebreak--- Whereas the Community consequently              Whereas the Community consequently
needs to establish a framework for the          needs to establish a framework for the
contribution of the Community to thé            contribution of the Community to the
implementation of ISDN as a trans-              implementation of ISDN as a trans-
European network; whereas the                   European network; whereas the
objectives of the proposed measures             objectives of the proposed measures
cannot be adequately attained by the            cannot be adequately attained by the
Member States and therefore, by virtue          Member States and therefore, by virtue
of the scale and scope of the measures          of the scale and scope of the measures
in question, are best carried out at            in question, are best carried out at
Community level;                                Community level;
Whereas the only legal basis provided
by the Treaty for adoption of this
Decision lies in Article 235;
HAS DECIDED AS FOLLOWS:                         HAS DECIDED AS FOLLOWS:
                                           Article 1
A multi-annual Community action                 A multi-annual Community action
TEN-ISDN as defined in Annex 1,                 TEN-ISDN as defined in Annex 1,
hereinafter referred to as the "action",        hereinafter referred to as the "action",
is hereby adopted. It shall run five            is hereby adopted. It shall run five years
years from the date of this Decision.           from the date of this Decision.
                                           Article 2
The objective of the action is to               The objective of the action is to
support projects of common interest             support projects of common interest
concerning the development of ISDN              concerning the development of ISDN
as a trans-European network, identified         as a trans-European network, identified
in Decision [...]10; such support shall         in Decision [...]*° such support shall be
relate to the implementation of ISDN            coordinated concerning both the
facilities in conformity with the relevant      projects of common interest and the
harmonized standards produced by                implementation EURO-ISDN facilities
ETSI, with a view to ensure the full            in conformity with the relevant
interconnectivity and interoperability of       harmonized standards produced by
ISDN implementations.                           ETSI, with a view to ensure the full
                                                interconnectivity and interoperability of
                                                ISDN implementations.
                                           Article 3
The contents of the action is set out in        The contents of the action is set out in
the Annex.                                      the Annex.
 10      OJ
                                              &JD
 ---pagebreak---                                            Article 4
     The implementation of the action           1.   The implementation of the action
     shall be closely coordinated with               shall be closely coordinated with
     Community          policies       and           Community          policies       and
     requirements of users, notably                  requirements of users, notably
     small      and     medium       sized           small      and     medium       sized
     enterprises, arising from the                   enterprises, arising from the
     endeavour to exploit the freedoms               endeavour to exploit the freedoms
     of the internal market without                  of the internal market without
     frontiers.                                      frontiers.
2.   This coordination shall apply              2.   This coordination shall apply
     notably to the following areas:                 notably to the following areas:
     trans-European networks and                     trans-European networks and
     services,            standardisation,           services,            standardisation,
     identification of user requirements,            identification of user requirements,
     legal and data protection aspects               legal and data protection aspects
     raised by the introduction of                   raised by the introduction of
     ISDN.                                           ISDN. Account shall also be taken
                                                     in this coordination of R&D
                                                     activities and results under the
                                                     Community's        specific ~ R&D
                                                     programmes                         for
                                                     telecommunications and telematics
                                                     networks with a view to the
                                                     subsequent      transition   to      a
                                                     broadband           communications
                                                     network.
                                           Article 5
The Commission is hereby authorised             The Commission is hereby authorised
to negotiate agreements with non-               to negotiate agreements with non-
Community countries with a view to              Community countries, in particular the
their full or partial involvement in the        member countries of the European
action.                                         Economic Area and countries with
                                                association agreements with the
                                                Community, with a view to their full or
                                                partial involvement in the Community's
                                                multi-annual action.
                                             Z*
 ---pagebreak---                                          Article 6
1. The      Commission        shall   be      1.   The      Commission        shall  be
   responsible for the implementation              responsible for the implementation
   of the action.                                  of the action.
2. The procedure laid down in Article         2.   The procedure laid down in Article
   7 shall apply to : .                            7 shall apply to :
        the drawing up of the work                 -.   the drawing up of the work
        programme for feasibility                       programme for feasibility
        studies;                                        studies;
   -    the      adoption      of    the                the      adoption      of   the
        recommendations         of   the                recommendations         of  the
        feasibility studies;                            feasibility studies;
        the establishment of criteria                   the establishment of criteria
        for the assessment of the                       for the assessment of the
        action;                                         action;
                                         Article 7
1. The Commission shall be assisted           1.   The Commission shall be assisted
   by a committee of an advisory                   by a committee of an advisory
   nature      composed        of    the           nature      composed        of   the
   representatives of the Member                   representatives of the Member
   States     and      chaired    by   a           States     and      chaired by     a
   representative of the Commission.               representative of the Commission.
2. The Commission representative              2.   The Commission representative
   shall submit to the committee a                 shall submit to the committee a
   draft of measures to be taken. The              draft of measures to be taken. The
   committee shall deliver its opinion             committee shall deliver its, opinion
   on the draft, voting if necessary,              on the draft, voting if necessary,
   within a time limit which the                   within a time limit which the
   chairman may set depending on the               chairman may set depending on the
   urgency of the matter concerned.                urgency of the matter concerned.
   The opinion of the committee shall              The opinion of the committee shall
   be recorded in the minutes; each                be recorded in the minutes; each
   Member State shall be entitled to               Member State shall be entitled to
   ask for its opinion to be recorded              ask for its opinion to be recorded
   in the minutes.                                 in the minutes.
   The Commission shall give serious               The Commission shall give serious
   consideration to the committee's                consideration to the committee's
   opinion. It shall inform the                    opinion. It shall inform the
   committee of how it has taken                   committee of how it has taken
   account of the opinion.                         account of the opinion.
3. The committee may examine any              3.   The committee may examine any
   question in relation to the                     question in relation to the
   development of ISDN as TEN.                     development of ISDN as TEN.
                                              IPU
 ---pagebreak---                                            Article 8
     Every year the Commission shall             1.   Every year the Commission shall
     report on the activities to the                  report on the activities to the
     Council      and the        European             Council      and    the     European
     Parliament.                                      Parliament.
     At the end of the action, the                    At the end of the action, the
     Commission shall present a final                 Commission shall present a final
     report to the Council and the                    report to the Council and the
     European Parliament, including an                European Parliament, including an
     assessment of the extent to which                assessment of the extent to which
     each of the objectives laid down                 each of the objectives laid down
     for the action has been attained, on             for the action has been attained, on
     the basis of criteria established in             the basis of criteria established in
     accordance with the procedure laid               accordance with the procedure laid
     down in Article 7 and propose any                down in Article 7 and propose any
     further action which may be                      further action which may be
     needed.                                          needed.
                                           Article 9
This Decision is addressed to the                This Decision is addressed to the
Member States.                                   Member States.
                                           Article 10
It shall take effect 21 days after its           It shall take effect 21 days after its
publication in the Official Journal of the       publication in the Official Journal of the
European Committees.                             European Committees.
               Done at Brussels....                             Done at Brussels....
                                              2-b
 ---pagebreak---                                          ANNEX
The TEN-ISDN Action consists of             1. The TEN-ISDN Action consists of
the implementation of projects of              the implementation of projects of
common interest eligible under the             common interest eligible under the
series of guidelines defined in                series of guidelines defined in
Council      Decision      [...]    and        Council      Decision       [...]    and
measures ensuring interoperability.            measures ensuring interoperability.
Three categories of action can be              Four categories of action can be
distinguished:                                 distinguished:
-•   projects    of     infrastructural        -    projects     of     infrastructural
     nature;                                        nature;
     projects concerning telematic                  projects concerning telematic
     services and applications of                   services and applications of
     trans-frontier nature; projects                trans-frontier nature; projects
     promoting the ISDN usage                       promoting the ISDN usage
     including promotion of ISDN                    including promotion of ISDN
     terminal availability;                         terminal      and       application
                                                    software availability;
     measures concerning the end-
     to-end compatibility of a                 -    measures concerning the end-
     limited    range       of     basic            to-end compatibility of a
     telematic      services        and             limited     range       of     basic
     corresponding              terminal            telematic        services       and
     equipment;                                     corresponding               terminal
                                                    equipment;
                                                    support        for      promotion
                                                    campaigns for EURO-ISDN
                                                    directed at the general public
                                                    and professionals (especially
                                                    SMEs):
Projects of common interest can be          2. Projects of common interest can be
supported by feasibility studies and           supported by feasibility studies and
by support for implementation.                 by support for implementation.
Feasibility studies for projects of            Feasibility studies for projects of
common         interest        normally        common          interest        normally
comprise the following phases:                 comprise the following phases:
     analysing the requirements                     analysing the requirements
     (eg. bottle-necks);                            (eg. bottle-necks);
     definition of the action;                      definition of the action;
     specification     of      technical             specification     of      technical
     requirements (in some cases);                   requirements (in some cases);
     preparation of an action plan             -     preparation of an action plan
     including the methods suited                    including the methods suited
     for implementation of the                      for implementation of the
     project;                                        project;
                                          £H
 ---pagebreak---          validation, on a small scale, of           validation, on a small scale, of
         the essential functions of the             the essential functions of the
         solutions adopted (in some                  solutions adopted (in some
         cases);                                     cases);
         assessment    of   the   results            assessment    of   the   results
         obtained.                                  obtained.
   In addition to the feasibility studies      In addition to the feasibility studies
   there will be regular monitoring of         there will be regular monitoring of
   the     projects     and     measures       the     projects    and      measures
   undertaken in the context of this           undertaken in the context of this
   action.                                     action.
   Community support for the                   Community support for the
   implementation of projects of               implementation of projects of
   common interest may take in                 common interest may take in
   particular the form of interest rate        particular the form of interest rate
   subsidies and loan guarantees.              subsidies and loan guarantees.
3. The       measures      to     ensure    3. The       measures      to     ensure
   interoperability consist in:                interoperability consist in:
        contribution         to       the           contribution        to        the
        development of prototypes                   development of prototypes
        and software functions;                     and software functions;
        promotion of interoperable                  promotion of interoperable
        solutions specifically by the               solutions specifically by the
        set up of a EURO-Label;                     set up of a EURO-Label;
        interoperability testing;                   interoperability testing;
        standardisation work;                       standardisation work;
        incorporating relevant R&D                  incorporating relevant R&D
        results       notably       from            results      notably        from
        Community programmes;                       Community programmes;
        and the flanking measures:                  and the flanking measures:
        support for awareness for the               support for awareness for the
        notion interoperability;                    notion interoperability;
        organisational support for the              organisational support for the
        implementation of the above                 implementation of the above
        measures.                                   measures.
                                          zç
 ---pagebreak---                                  FINANCIAL STATEMENT
Item B5-720:
Trans-European networks in t h e field of telecommunications: ISDN
1.     TITLE OF OPERATION:
    Trans-European networks in the field of telecommunications.
    Community contribution to the implementation of the m a s t e r p l a n adopted
    for certain priority trans-European telecommunications networks.
2.  BUDGET HEADING INVOLVED:
    B5-720
    N.B.:           Although this budget heading also covers types of networks
                     other t h a n ISDN, the particulars given in this financial
                     statement refer only to ISDN.
3.  LEGAL BASIS: .
     - Council recommendation 86/ 659/EEC of 22 December 1986 on the
        coordinated introduction of the Integrated Services Digital Network (ISDN)
        in the European Community (OJ L 382, 31.12.1986, p. 36).
     - Council Decision 87/95/EEC of 22 December 1986 on standardization          in
        the field of information technology and telecommunications (OJ L 36,
        7.2.1987, p. 31).
     - Council resolution of 18 July 1989 on the strengthening of the coordination
       for the introduction of the Integrated Services Digital Network (ISDN) in the
        European Community up to 1992 (OJ C 196, 1.8.1989, p. 4).
     - Council resolution of 22 January 1990 concerning        trans-European
        networks (OJ C'27, 6.2.1990, p. 8).
     - 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 (OJ L 192, 24.7.1990, p. 1).
     - Commission Directive 90/388/EEC of 28 June 1990 on competition in the
        markets for telecommunications services (OJL 192, 24.7.1990, p. 10).
     - Communication of 10 December 1990 from the Commission to the Council
        and the European Parliament entitled "Towards trans-European networks -
        For a Community action programme" [COM(90)585 final].
     - Proposal for a Council Regulation (EEC) presented by the Commission       on
        24 February 1992 introducing a declaration of European interest to
       facilitate the establishment of trans-European networks in the
        telecommunications domain (OJ C 71, 20.3.1992, p. 12.).
                                          U
 ---pagebreak---     - Conclusions of the Council of 31 March 1992 on trans-European           networks.
    - Council resolution of S June 1992 on the development of ISDN in the
      Community as a European-wide telecommunications infrastructure for
       1993 and beyond (OJC158, 25.6.1992, p. 1).
    - Council resolution of 7 December 1992 on making the Single Market work
      (OJC334, 18.12.1992, pp. 1-3).
   - Proposal for a Council Decision of (.../.../...) on a set of guidelines for the
      development of ISDN in the Community as a trans-European network.
   - Proposal for a Council Decision off.../.../...) introducing a multiannual
      Community action for the development of ISDN as a trans-European
      network fTEN-ISDN).
   - Proposal for a Council Regulation laying down general rules for granting of
      Community aid in the field of transeuropean networks (COM(94) 62 final of
      2.03.1994);
   - Communication from, the Commission to the European Parliament and the
      Council on "Europe's way to the information society. An action plan. (COM
      (94) 347final of 19.07.1994).
   - Article 129 d of the Treaty of the European      Community.
4. DESCRIPTION OF OPERATION
   4.1 Specific objectives of operation:
         - To carry o u t a n operation representing the Community's
            contribution to the establishment a n d development of t r a n s -
            European networks in the field of telecommunications, particularly
            with regard to the Integrated Services Digital Network (ISDN).
            The purpose of the operation is to contribute to the harmonized
            development of the abovementioned networks a n d to t h e
            availability of certain basic services throughout the Community in
            order to enable operators to participate fully in a n internal market
            without frontiers.
            A second p a r t of the Community activity is intended to assist t h e
            interconnection of such networks a n d interoperability of these
            basic services which are accessible via such networks. It consists
            in defining, for each area, a master plan of t h e trans-European
            network (such a plan already exists for ISDN) a n d then to
            implement t h e Community's contribution to t h e establishment of
            this network, while coordinating the activities contributing to this
            operation in t h e Member States, which will be called u p o n to
            provide the bulk of the necessary investment to those involved in
            this operation, consistent with the principle of subsidiarity.
         - The Community contribution will chiefly be in the form of feasibility
            studies leading to a precise definition of projects of joint interest,
            and subsequently in the form of interest rebates a n d loan
            guarantees granted to those involved to carry out s u c h projects.
            The Community contribution covers projects of joint interest a n d
            activities to promote interconnection of networks a n d
            interoperability of basic services.
                                       #Y
 ---pagebreak---            Given the scale of the investment required for the setting up of a
            general infrastructure and in view of the forms of support being
            considered, the Community contribution can only have a
            stimulating effect which will supplement the efforts being made at
            national level.
           Although a relatively small percentage, the Community contribution
            is necessary, since without it there is an obvious danger of
            insufficient harmonization and delay in deployment.
    4.2 Duration: 1993-1997
    4.3 Target population: public network operators, providers of
         telecommunications services, systems and software manufacturers,
         users.
5, CLASSIFICATION OF EXPENDITURE OR REVENUE
    5.1 Non-compulsory       expenditure
    5.2 Differentiated    appropriations
    5.3 Type of revenue involved:     not applicable
6. TYPE OF EXPENDITURE OR REVENUE
    6.1 Normally, the feasibility studies and provision of the necessary
         services for implementing the work programme will be wholly
         financed; the studies will be approved according to the standard
         Commission procedures (invitation to tender, CCPC).
    6.2 Subsidy for joint financing with other sources in the public and/or
         private sector:
        - Generally none
    6.3 Interest subsidy:
        - Interest subsidies may be granted to those involved in the sector
            taking part in the implementation of projects of common interest.
    6.4 Other:
        - Provision has also been made for loan guarantees.
        - Assistance will be sought from other Community financial
            instruments (i.e. the Structural Funds, temporary loan instrument,
            etc.).
    6.5 Should the operation prove an economic success, is there provision
         for all or part of the Community contribution to be reimbursed?: No.
                                        JtS
 ---pagebreak---      6.6 Will the proposed operation cause any change in the level of revenue?
          No.
7.  FINANCIAL IMPACT
     7.1 Method of calculating the total cost of the operation for the 1994
          financial year:
          In 1994 ECU 7 million will be earmarked for feasibility studies,, with
          an average of ECU 5 0 0 0 0 0 per study in the field of ISDN .
     7.2 Breakdown of the individual components of the operation
BREAKDOWN                 1993 BUDGET            PDB 1994            CHANGE IN %
Studies                   ECU 5 million        ECU 7 million             + 40%
Interest subsidies
TOTAL                     ECU 5 million        ECU 7 million
     7.3 Operational expenditure on studies, meetings of experts, etc. included
          in part B
BREAKDOWN              1993 BUDGET              PDB 1994            CHANGE IN %
Studies
Meetings of experts
Conferences/               0                    ECU 100.000
congresses
Information/               0                    ECU 100.000
publications
TOTAL                      0                    ECU 2 0 0 . 0 0 0
                                       &
 ---pagebreak---       7.4 Indicative schedule of commitment appropriations
ItemB5-720
Trans-European networks in the field of telecommunications: ISDN
                                               INDICATIVE SCHEDU1LE
 Consoli-      Budget        PDB                                          TOTAL
   dated
situation
    end         1993        1994
    1992
(l)                                     1995        1996       1997
     0            5            7          19          26        30          87
(1) Including implementation of mini-budgets for 1991 and 1992 charged to subheading 8 8 .
                                           ^o
 ---pagebreak--- 8. WHAT ANTI-FRAUD MEASURES ARE PLANNED IN THE PROPOSAL FOR
   THE OPERATION?
   The relevant Commission departments will verify the proper implementation
    of the feasibility studies prior to payment, taking into account contractual
    obligations and principles of good management.
   In conjunction with the relevant Commission departments suitable audit
   methods will be devised to deal with interest subsidies and loan
   guarantees.
9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS
    9.1 Objectives
         The aim of this operation is to encourage those involved in this sector
          in their efforts to achieve interoperability a n d interconnection of
          national ISDN networks. The aim of the Community contribution is to
          stimulate investment in these sectors of the order of billions of ecus in
         the medium term. However, in 1993 a n d 1994 the operation will
          concentrate mainly on carrying out feasibility studies for projects of
         common interest which, when implemented in s u b s e q u e n t years,
          should generate the necessary investment.
         The operation is divided into two parts. The first concerns support
         activities for projects of common interest and its aim is the rapid and
         harmonized establishment of the infrastructure a n d basic services.
         The second part relates to horizontal activities, including support for
         interconnection of networks a n d interoperability of basic services.
   9.2 Grounds for the operation
         The purpose of this operation is to endow the Community with the
         modern m e a n s of communciation which are essential to its economic
         development. Availability of advanced telecommunications networks
         in this particular field, involving multipurpose networks, is essential if
         operators are to take advantage of the opportunities to expand their
         activities, the economies of scale provided by the large Community
         market and the free movement of goods, persons, services a n d capital.
         Small businesses in particular (of which there are some ten million in
         the Community), whose key role in economic growth is acknowledged,
         are dependent on the availability of a universal infrastructure.
         Given that the services market is competitive (except for telephone
         services at the present time), a non-regulatory approach is indicated.
         Experience of recent years h a s shown that in the absence of any
         mechanism in this area at European level to ensure harmonized
         development, particularly of certain basic services, Community action
         is necessary. In order to promote such coordination at European
         level, Community financing m u s t also be made available. This
         Community support will be for a limited period a n d will be provided at
         the early stages to get the mechanism off to a good start.
         Furthermore, a financial contribution for the development of less-
         favoured regions is consistent with the aims of this operation.
         Should these m e a s u r e s not be taken in good time, the development of
         ISDN in the Member States might be less effective because it would
         not be in general use and the basic services would not be compatible.
                                        3-/
 ---pagebreak---          In every case, experience h a s shown that taking action after the event
         to rectify the lack of harmonization in such a development would
         prove more costly.
         Proper coordination between the Member States, which is intrinsic to
         Community action, is necessary in order to ensure consistency
         between what is being done at national level a n d Community action.
         The principle of subsidiarity applies fully in this case.
    9.3  Monitoring and evaluation of the operation.
         Each feasibility study m u s t state its exact objectives a n d define
         specific projects. The effectiveness of the operation will ultimately be
         judged by the a m o u n t of investment forthcoming from those involved
         in the sector.
         All operations will be evaluated on a n a n n u a l b a s i s (report). The
         a s s e s s m e n t will be based on objective criteria which will be drawn u p
         by a committee monitoring the implementation of the operation.
         Moreover, the introduction of RNIS in the Member States of the
          Community is the subject of a n a n n u a l report established by the
          Commission, based on the Council Recommendation of 22 December
          1986.
    9.4   Consistency with financial planning
         Provision for this operation h a s been made in the multiannual
         financial programme u n d e r the heading Trans-European Networks.
10. ADMINISTRATIVE EXPENDITURE (PART A OF THE BUDGET)
    10.1 Will the proposed operation call for additional Commission staff? If so,
         how many?
         Yes. The first stage will be to launch feasibility studies, at a
         preparatory level, in 1993, and then on a full scale in 1994.
         Assuming that ten or so studies will be carried out for ISDN,
          approximately eight staff (four A, one B and three C) will be necessary
         for management a s of 1994. In addition, coordination between
          Member States and financial engineering (setting u p of interest
          subsidy and loan guarantee operations) will call for a further three
          staff (one A, one B and one C). Overall, five staff (two A, one B, two C)
          should be Commission officials, with the remainder being employed
          on a non-statutory basis.
         Total: Four A, two B and four C.
    10.2 Indicate the amount of staff and administrative expenditure involved
          in the proposed operation.
          In the light of what h a s been said u n d e r 10.1, six category A staff will
          have to be provided in the form of seconded national officials or
          experts and three category C staff a s temporary secretaries.
          Committee meetings: Some five meetings a year of the Consultative
          Committee, plus 40 or so meetings of groups specific to the projects,
                                              "VL
 ---pagebreak--- at a cost of ECU 12 0 0 0 per meeting, will require a meetings budget of
ECU 50O OOO (A 2 5 0 / 2 5 1 ) .
Missions: ECU 7 5 OOO (A 1300)
                                 ^3
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM (94) 483 final
                                                      DOCUMENTS
EN                                                                         16 15
                                 Catalogue number : CB-CO-94-510-EN-C
                                                             ISBN 92-77-81729-1
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