CELEX: 51992PC0247
Language: en
Date: 1992-08-27
Title: Proposal for a COUNCIL DIRECTIVE on the application of open network provision (ONP) to voice telephony

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                              CONTENTS
A. Summary                                      3
B. Explanatory Memorandum                       5
   1. introduction                              5
   2. Background                                6
   3. Consultation process                      8
   4. Aims of the proposal                      9
   5. Outline of contents                      10
   6. Conclusion                               12
C. Proposal for a Council Directive on the
   application of open network provision (ONP)
   to voice telephony                          13
 ---pagebreak---                                     - 3 -
A. Summary
   The Community attaches very great importance to the improvement in
   telecommunications       and    to     the     growth      of     trans-European
   telecommunications     networks    and    services.     An    efficient,     cost-
   effective    telecommunications       infrastructure        is    an    essential
   foundation for a flourishing single market, and will benefit users,
   service providers and telecommunications organizations alike.
   The concept of open network provision           was introduced in the 1987
   Green   Paper   on   telecommunications*       and   given     substance    in   a
   subsequent   Council    Directive    on   open   network     provision    (ONP)2,
   adopted in 1990.     ONP is designed to harmonize access and use of
   telecommunications    networks and services throughout Europe, and to
   encourage   the    provision    of   new    competitive      telecommunications
   services by ensuring a 'level playing field' for all market entrants.
   This proposal for a Directive on the application of open network
   provision to voice telephony services has three basic goals:
   -   to establish the rights of users of voice telephony services;
       to improve access to the public telephone network infrastructure
       for all users, including service providers;
   -   to enhance Community-wide provision of voice telephony services.
   The pace of change in this sector - in terms of both technological
   advance and user need - calls for flexibility in the implementation
   of  these   objectives.    The   current   proposal     represents     a  careful
   balance, based on extensive consultation with interested parties,
   which   seeks  to   achieve    maximum    benefit    to   users,     freedom   for
   telecommunications     organizations      to    meet    market     demand,     and
   convergence towards trans-European networks and services.
   COM(87) 290, 30.6.1987, "Towards a dynamic European economy: Green
   Paper on the development of the common market for telecommunications
   services and equipment".
   OJ No L 192, 24.7.1990, p. 1 "Establishment of the internal market
   for telecommunications through the implementation of open network
   provision".
 ---pagebreak---                                   - 4 -
  The proposal is submitted in accordance with the priorities laid down
  in Directive 90/387/EEC, and follows an earlier Commission proposal
  for    a   Directive on  ONP   for  leased lines3, and  proposals   for
                                                                    4
  Recommendations on ONP and packet switched data services (PSDS)     and
                                                         5
  ONP and the integrated services digital network (ISDN) .
3  O J N o L 165, 19.6.1992, p. 27.
4  OJ No L 200, 18.7.1992, p. 1.
5  OJ No L 200, 18.7.1992, p. 10.
 ---pagebreak---                                       - 5 -
B. Explanatory Memorandum
   1.  Introduction
   The Community attaches very great importance to the improvement in
   telecommunications      and      to      the    growth     of     trans-European
   telecommunications     networks      and    services.   An    efficient,     cost-
   effective   Community-wide      telecommunications      infrastructure      is  an
   essential   foundation    for    a  flourishing    single    market,    and   will
   benefit users, service providers and telecommunications organizations
   alike.
   The Commission is following a programme, set out in the 1987 Green
   Paper6,   for     progressively       introducing     competition      into    the
   telecommunications market. The Council has expressed broad support
   for  the   objectives    of    this    programme,    and    in   particular    the
   progressive     creation      of      an     open   Community       market     for
                                   7
   telecommunications services .
   The considerable technological advances in telecommunications over
   the  last   decades   allow    an    increasing   range    of   services    to  be
   provided.
   The concept of open network provision (ONP) is designed to harmonize
   access  to   and   use   of   telecommunications       networks    and   services
   throughout Europe, and to encourage the provision of new competitive
   telecommunications services, by ensuring a 'level playing field* for
   all market entrants.
   COM(87) 290,    30.6.1987, "Towards a Dynamic European Economy: Green
   Paper on the   development of the Common Market for Telecommunications
   Services and  Equipment".
   OJ No C 257,   4.10.1988, p. 1.
 ---pagebreak---                                     - 6 -
   The ONP framework Directive (90/387) of 28 June 19908 describes ONP
   and outlines general principles for the open and efficient access to
   public   telecommunications     networks   and  services.  It   contains   a
   timetable for the phased implementation of ONP to specific areas,
   giving priority to Directives for leased lines and voice telephony,
   and Recommendations for packet-switched data services (PSDS) and the
   integrated services digital network (ISDN).
   The Commission has already presented proposals for a Directive on
   ONP for leased lines9, and for Recommendations on ONP and PSDS 10 ,
   and ONP and ISDN 11 .
   2.  Background
   Voice  telephony   is   the   biggest   and  most  economically   important
   service operated by telecommunications organizations, and is a vital
   service for both consumers and business users.        At the beginning of
   1992, there were estimated to be 150 million telephone lines in the
   Community, and the number is forecast to grow to about 180 million
   lines by 1996 12 .   This overall growth conceals distinct variations
   between Member States, however;        in some Member states there is a
   need for considerable investment in the public telephone network in
   order to make it available to users in all regions, and growth of up
   to 80% between 1991 and 1996 is forecast;       in other Member States the
   penetration of telephone lines has almost reached saturation, and the
   emphasis   is on adding value to the basic telephone network.            But
   whatever its state of development, the voice telephony service plays
   a vital role in the social and business life of every country.
t  ©J No L  192, 24.7.1990,  p.   1.
9  OJKoL    165, 19.6.1992,   p.  27.
10 OJ No L  200, 18.7.1992,  p.   1.
11 OJ No L  200, 18.7.1992,  p.   10.
12 Source:  Logica.
 ---pagebreak---                                       - 7 -
   Because   voice     telephony   represents     such   a   large   proportion    of
   telecommunications services in the Community, the rapid application
   of harmonized ONP principles to voice telephony will be a major step
   towards   the    full   establishment    of   the   Community-wide     market   in
   telecommunications services.
   Commission Directive 90/388/EEC13 on competition in the markets for
   telecommunications services, allows Member States to maintain special
   or exclusive rights for the supply of voice telephony services.
   Some   Member   States    allow   competition    in the     provision   of   voice
   telephony    service     throughout    the    territory,     others    allow   the
   coexistence of monopolies with distinct boundaries, others maintain a
   single telecommunications organization to serve the whole territory.
   This proposal for a Directive takes account of all these different
   regimes.   In dealing with harmonisation of access and use of networks
   and   services,    it   complements   Council     Directive    91/263/EEC    which
                                                            14
   addresses telecommunications terminal equipment .
   Telephone network technology is undergoing fundamental change, as the
   old   analogue    public    switched   telephone    network     (PSTN)   is  being
   replaced    by    digital    switching    and   transmission     equipment,    and
   evolving towards the integrated services digital network (ISDN), able
   to carry all forms of information in a common digital format.               At the
   same time, the fixed network now has to compete with the new mobile
   telephone    networks,     themselves    often   provided     in   a  competitive
   manner, and the issue of interconnection between networks is becoming
   of prime importance.
   In accordance with the principles set out in Directive 90/388/EEC,
   regulation     of    telecommunications     in   each   Member    State    is  the
   responsibility of an independent national regulatory authority, and
   this body has a key role to play in implementing and monitoring the
   regulatory     regime    for   telecommunications,      in    relation    to  both
   network/service aspects and terminal equipment aspects.
13 OJ No L 192, 24.7.1990, p. 10.
14 OJ No L 128, 23.5.1991, p. 1 'The approximation of the laws of the
   Member States concerning telecommunications terminal equipment,
    including the mutual recognition of their conformity.'
 ---pagebreak---                                           8 -
   During 1992, in accordance with Article 8 of Directive 90/387/EEC,
   the   Council     is   due    to   review     progress     on  harmonization     in
   telecommunications.       The   purpose      of   the   review   is    to   examine
   remaining    conditions for access to telecommunications               networks or
   services   which     have   not   been    harmonized,     the  effects    of  those
   conditions      on    the     workings      of    the    internal     market    for
   telecommunications      services, and the extent to which this market
   needs to be further opened up.            This proposal for a Directive does
   not anticipate in any way the results of this review.                  It has been
   drafted, as far as is possible, so as to ensure that its requirements
   remain valid whatever the outcome of the review.
   3.   The consultation process
   Council Directive 90/387/EEC provides a consultative procedure for
   drawing up proposals for open network provision                (ONP), applied to
   specific areas.
   In accordance with Article 4(4) of the abovementioned Directive, an
   'Analysis Report on the application of ONP to Voice Telephony' was
   drafted by the Commission          and discussed at a meeting of the ONP
   Committee on 2/3 July 1991.            An amended version of this Analysis
   Report, taking      into account preliminary          comments made by the ONP
   Committee, was made available for public comment via a notice in the
   Official Journal published on 26 July 1991 15 .
   The Analysis Report set out the main proposals in a concise form in
   order   to    facilitate    the    consultation     process.    In   content,   the
   Analysis Report drew upon a number of studies undertaken for the
   Commission,     amongst    others    a   detailed    report   on   ONP   and  voice
              16
   telephony .      It addressed what were seen as the main needs in voice
   telephony,      taking     into    account      the    characteristics     of   the
   telecommunications       sector,     namely      rapid    technological     change,
   evolving market demand, and major long-term investments.
15 OJ C 197, 26.7.91, p. 12.
16  "Study of the application of the ONP concept to voice telephony
   services", a report prepared under contract for the Commission by
   National Economic Research Associates, London.
 ---pagebreak---                                 - 9 -
The present proposal for a Council Directive takes into account the
comments on the Analysis Report received          from  interested    parties
during   the   public   comment  process,   and   discussion    in   the  ONP
Committee.
A number of comments on the Analysis Report called for additional
features   to be    included  in the proposed      directive; others     were
concerned    about   over-regulation,    and   in    particular    that   the
obligations proposed should be in proportion to the desired effects.
Balancing these submissions, the Commission took the view that any
over-regulation which placed an excessive burden on the sector and
which could result in an imbalance in competitive conditions, had to
be avoided.    While appreciating the calls for further provisions, it
was decided not to extend the proposed directive beyond the minimum
provisions originally contained in the Analysis Report.
4.  Aims of the proposal
Underlying this proposal are three basic goals:
-   the need to establish the rights of public telephone network
    users when dealing with telecommunications organizations;
    the need to open up access to the public             telephone    network
    infrastructure for service providers and other telecommunications
    operators    (eg mobile) on an equitable        and  non-discriminatory
    basis;
    the need to give effect to the demands of the single market,
    particularly     in   the   provision   of   European-wide      telephony
    services, and in the planning and coordination of pan-European
    numbering.
The Directive foresees a telecommunications environment where:
-   commercial considerations are the prime justification for the
    implementation of new features and facilities;
 ---pagebreak---                              - 10 -
    national regulatory authorities have primary responsibility for
    regulation of national markets;
    the Commission, working in conjunction with the ONP committee,
    performs a minimum coordination role at Community level to ensure
    that users benefit from truly European voice telephony.
The proposed Directive lays emphasis on the role of market demand,
and the need    for this element to be the driving        force for new
developments   in  the   sector.  It   also   stresses   the   need   for
publication   of   information   about    voice   telephony     services;
publication of information safeguards the fair and equal treatment of
service providers, it allows users to be fully informed about the
service  offered,  and  it  serves  to  reduce the    need   for  routine
regulatory intervention.
5.  Outline of contents
Article 1 defines the scope, and explains that ONP conditions apply
to both the voice telephony service and the underlying fixed public
telephone network over which that service is provided.
Article 2 defines the terms used.
Article 3 sets out the basic rights of the user to be connected to
the fixed public telephone network and to use it for voice and non-
voice purposes.
Article 4 ensures that information about the telephone service and
network is published and easily accessible.
Article  5 provides   for targets to be     set  for  service, and    for
performance against those targets to be monitored.
Article 6 sets conditions for the termination of service offerings.
 ---pagebreak---                                 11 -
Article 7 deals with user contracts.
Article 8 calls for a minimum set of advanced features which will
stimulate the market for new voice-based services.
Articles 9 and 10 address the important issues of special network
access and interconnection for Community-wide interworking.
Articles 11 to 13 call for cost orientation        and transparency of
tariffs, but with appropriate consideration given to the specific
requirements of large-scale users and low-usage users.
Article 14 calls for itemized billing.
Article 15 deals with access to directory services.
Articles 16 and 17 cover telephone call boxes, and telephone pre-
payment cards.
Article   18 allows specific provisions to be made for handicapped
users and other people with special needs.
Article   19 makes provision    for technical   specifications   for the
public   telephone network   interface,  including  the  socket,   taking
account of the evolution of network technology (PSTN to ISDN).
Article 20 calls for numbering to be a regulatory responsibility.
Article 21 deals with usage conditions and essential requirements.
Article 22 ensures that reference is made to standards used as the
basis for voice telephony service offerings.
Article    23  describes   the   procedures   for  agreeing   harmonized
 implementation of features within the Community.
 ---pagebreak---                                - 12 -
Article 24 describes reporting requirements, and the information to
be held by the national regulatory authority.
Article   25   promotes  simple   conciliation    and   dispute    resolution
procedures for users.
Article   26   explains   the  grounds    upon  which    deferment    of  the
obligations of this directive can be accepted.
Article 27 makes provision for updating the technical requirements of
the Directive.
Articles 28 and 29 describe committee procedure.
Article 30 calls for a review of the working of the Directive in
1995.
Articles 31 and 32 cover the normal formalities.
6.   Conclusion
This Commission proposal for a Council Directive on the application
of open network provision to voice telephony will enhance Community-
wide   provision   of  a  harmonized   minimum   set   of   voice   telephony
services, and will establish conditions of access to and use of the
public    telephone    network    and   voice    telephony      service   for
telecommunications service providers and others.
The   proposal   results  from  the   priorities    laid   down   in  Council
Directive    90/387/EEC,   and   its   contents   have    been    subject  to
widespread    consultation   with   the   ONP  Committee     and   interested
parties.
The Council is therefore requested to adopt the attached proposal for
a Directive.
 ---pagebreak---                                      - 13 -
C.
                                 Proposal for a
                               COUNCIL DIRECTIVE
             on the application of open network provision (ONP)
                              to voice telephony
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 100a thereof,
Having regard to the proposal from the Commission1,
In cooperation with the European Parliament2,
Having regard to the opinion of the Economic and Social Committee3,
1.    Whereas   Council   Directive   90/387/EEC   of  28  June   1990  on  the
      establishment of the internal market for telecommunications services
      through the implementation of open network provision4 provides inter
      alia that theCouncil shall adopt a specific directive establishing
      open network provision conditions for the voice telephony service;
2.    Whereas   in   accordance   with   Directive  90/387/EEC,   open  network
      provision   (ONP) applies to public telecommunications networks and,
      where   applicable,    public    telecommunications   services;   whereas
      therefore the application of ONP to the voice telephony service must
      also include the application of ONP to the network over which the
      voice telephony service is provided;
3.    Whereas  ONP   conditions   should   be applicable  to  all the   network
      technologies currently in use in Member States, including analogue
      telephone   networks, digital    networks and the    integrated  services
      digital network (ISDN);
1
2
3
4     OJ No L 192, 24.7.1990, p. 1.
 ---pagebreak---                                  - 14 -
4. Whereas this Directive    does not apply to mobile voice       telephony
   services;  whereas   it does apply to the use of the fixed public
   telephone network by mobile service operators, in particular with
   respect to the interconnection of mobile telephone networks with the
   fixed public telephone network, in order to achieve comprehensive
   Europe-wide services;
5. Whereas this Directive does not apply to services or service features
   provided at network termination points located outside the Community;
6. Whereas   Commission   Directive   90/388/EEC   of   28  June   1990  on
   competition in the markets for telecommunications services5 defines
   the special and exclusive rights which Member States may maintain for
   the public telephone network and voice telephony service;
7. Whereas use of the voice telephony service has become important for
   social and economic reasons, and everyone in the Community should
   have the right to subscribe to this service; whereas in application
   of the principle of non-discrimination, voice telephony service must
   be offered and provided on request without discrimination to all
   users;  whereas the principle of non-discrimination applies to, inter
   alia, availability of technical access, tariffs, quality of service,
   provision time (delivery period), fair distribution of capacity in
   case of scarcity, repair time, availability of network information
   and customer proprietary information, subject to relevant legislation
   concerning the protection of personal data and privacy;
8. Whereas in accordance with Directive 90/388/EEC, Member States which
   maintain special or exclusive rights for the provision and operation
   of  public   telecommunications   networks   must  take   the  necessary
   measures to make the conditions governing access to and use of the
   network objective and non-discriminatory and to publish them; whereas
   it is necessary to harmonize which specifications should be published
   and  under  which  form,   in order   to  facilitate  the  provision  of
   telecommunications services within Member States and between Member
   States, and in particular the provision of services by companies,
   firms or natural persons established in a Member State other than
   that of the company, firm or natural person for whom the services are
   intended.
   OJ No L 192, 24.7.1990, p. 10.
 ---pagebreak---                                    - 15 -
9.  Whereas in conformity with the principle of separation of regulatory
    and operational functions, national regulatory authorities have been
    created in Member States;    whereas in application of the principle of
    subsidiarity, the national regulatory authority of each Member State
    should   play  an   important   role   in   the   implementation    of   this
    Directive, particularly in matters relating to the publication of
    targets and performance statistics, dates for the implementation of
    new service features, adequate consultation with users/consumers and
    user/consumer   organizations, the control of numbering          plans, the
    surveillance of usage conditions, and the resolution of disputes;
10. Whereas quality-of-service as perceived by users is an essential
    aspect of the service provided, and quality-of-service parameters and
    achieved performance should be published for the benefit of users;
    whereas    harmonized    quality-of-service      parameters     and    common
    measurement methods are required in order to asses Community-wide
    convergence of quality-of-service; whereas different categories of
    user   require  different   levels   of   quality-of-service,     for   which
    different tariffs may be appropriate;
11. Whereas users of the public telephone network should have similar
    rights when dealing with telecommunications         organizations as they
    have   with   the   providers   of   other    goods    and   services,    and
    telecommunications organizations should not have any special legal
    protection when dealing with users of the public telephone network;
12. Whereas,   in addition   to the basic      voice   telephony   service made
    available to users for their own use, for shared use or for the
    provision of services to third parties, it is desirable to ensure
    that, subject to technical and economic feasibility, a harmonized
    minimum set of advanced voice telephony service features is offered
    to users, both for communications within a Member State and between
    Member States;
13. Whereas the provision of other voice telephony           service features,
    provided in response to market demand in addition to the harmonized
    minimum   set of voice telephony service features described herein,
    should not impede the provision of the basic voice telephony service
    features;
 ---pagebreak---                                   - 16 -
14. Whereas harmonized conditions for voice telephony should allow Member
    States flexibility to determine the timescales for implementation,
    given the different situations with regard to technical development
    of the network and market demand;
15. Whereas the Commission has issued Guidelines on the application of
    EEC competition   rules in the telecommunications       sector6  in order
    inter alia to clarify the application of Community competition law
    when telecommunications organizations cooperate in order to implement
    Community-wide connectivity between public networks and services;
16. Whereas,    in    order    to    provide    efficient     and    effective
    telecommunications    services,    and   to   offer   new    applications,
    telecommunications   service providers and others may, in accordance
    with the principles of Community law, require access to the public
    telephone network at points other than the network termination points
    offered to the majority of telephone users; whereas it is essential
    that in making full and efficient use of the public telephone network
    via such special network access, the integrity of the public network
    is maintained;
17. Whereas in accordance with the definition in Directive 90/387/EEC,
    the network termination point may be located on the premises of a
    telecommunications   organization; whereas    installation   of equipment
    owned by service providers on the premises of a telecommunications
    organization   is  not  specifically   called   for  in   this  Directive;
    whereas it is necessary for adequate safeguards to be implemented by
    national   regulatory     authorities    in   order    to    ensure   that
    telecommunications organizations do not discriminate against service
    providers with whom they are in competition;        whereas the tariffs
    which apply to telecommunications organizations when using the public
    telephone network for the provision of telecommunications         services
    should be the same as the tariffs which apply to other users;
    OJ No C 233, 6.9.1991, p. 2.
 ---pagebreak---                                     - 17 -
18. Whereas users should benefit from economies of scope and scale which
    may result from new intelligent network architectures;              whereas the
    development of the Community market of telecommunications               services
    calls   for   the   widest   availability    of   features     such    as   those
    identified    in   this   Directive;    whereas    the   principle      of   non-
    discrimination should be applied in a manner that does not hinder the
    development of advanced telecommunications services;
19. Whereas   telecommunications     organizations    should   be   encouraged     to
    establish the necessary cooperation mechanisms in order to ensure
    Community-wide    full interconnectivity between public networks - in
    particular    for   the   voice    telephony    service;    whereas     national
    regulatory authorities should facilitate such cooperation ; whereas
    such interconnection should be subject to regulatory oversight in
    order   to   safeguard   the   Community-wide     interests     of    users   and
    compliance   with   Community   law, and therefore      national      regulatory
    authorities should have the right of access to full information about
    network interconnection agreements where required;
20. Whereas   in  some Member     States   the provision     of   voice    telephony
    service, including international telephone service, is not subject to
    exclusive rights, and whereas an adequate level of interconnection of
    public   telephone    networks    is   essential    for   the    provision     of
    Community-wide     voice   telephony     services;    whereas      it    is   the
    responsibility of national regulatory authorities to ensure that the
    conditions governing access to public telephone networks, including
    access by telecommunications organizations from other Member States,
    are objective and non-discriminatory         in accordance with Directive
    90/387/EEC;
21. Whereas in accordance with Directive 90/387/EEC, common, efficient
    tariff principles, based on objective criteria and cost-orientation,
    should be applied throughout the Community;            whereas a reasonable
    transition period may be necessary in order to fully implement these
    tariff principles;     whereas nevertheless tariffs must be transparent
    and properly published, must be sufficiently unbundled in accordance
    with   the   competition    rules   of   the  Treaty,    and    must    be   non-
    discriminatory and guarantee equality of treatment;
 ---pagebreak---                                       - 18 -
22. Whereas national regulatory        authorities have a responsibility            for
    overseeing of tariffs;       whereas tariffs structures should evolve in
    response to technological development and user demand;                whereas the
    requirement for cost-orientated tariffs means that telecommunications
    organizations should implement cost accounting systems by which costs
    can  be   allocated    to   services   in   a   transparent    manner;     whereas
    notwithstanding     further    obligations    which    might   be    set   out   in
    particular   to   ensure   transparency    of    financial   transfers     between
    activities within undertakings to which special or exclusive rights
    have been granted by the Member States, a minimum set of requirements
    should be established;       whereas such requirements can be fulfilled
    for  example     by   the   implementation     of    the  principle     of    fully
    distributed costing;
23. Whereas within the overall principle of cost orientation, certain
    flexibility is needed, under supervision of the national regulatory
    authority, in order to allow discount schemes for certain uses, or
    socially   desirable    tariffs    for  particular     groups   of people,      for
    particular types of call, or at particular times of day;                   whereas
    discount   schemes    must   comply   with   the    competition    rules   of   the
    Treaty,   and   in   particular    with   the   general    principle     that   the
    conclusion    of   contracts    must   not   be    subject   to   acceptance     of
    unrelated     supplementary      obligations;      whereas,     in    particular,
    discount schemes must not link provision of services provided under
    special or exclusive rights with services provided competitively;
24. Whereas users require to be able to check the correctness of their
    bills by being given itemised bills, to a level of detail compatible
    with the user need and with relevant legislation on data protection
    and privacy;
25. Whereas directories of users who subscribe to the voice telephony
    service should be readily available, since they are an                   important
    element   for   access    to  the   telephone     service;   whereas     directory
    information should be made available to service providers and other
    telecommunications      organizations     on   fair    and   non-discriminatory
    terms;   whereas users should have the choice of being included or
    excluded from directories, in conformity with relevant law on data
    protection and privacy;
 ---pagebreak---                                     - 19 -
26. Whereas public telephone call boxes provide an important means of
    access to the voice telephony service, especially for emergencies,
    and it is desirable to ensure that there is adequate provision of
    them for use by the public;
27. Whereas, recognising that users would benefit from a single type of
    telephone payment card usable in all Member States, the Commission
    has  given   the   European   Committee   for   Standardization    (CEN)/the
    European Committee for Electrotechnical Standardization          (CENELEC) a
    mandate to develop suitable standards;      whereas in addition to these
    standards,   commercial   agreements   are needed    to  ensure that     pre-
    payment cards issued in one Member States can be used in other Member
    States; whereas the placing on the market and the free circulation
    and use of terminal equipment, including pay-telephones, must not be
    impeded, in compliance with Community law and in particular Council
    Directive 91/263/EEC of 29 April 1991 on the approximation of the
    laws of the Member      States   concerning   telecommunications    terminal
    equipment,  including the mutual recognition of their           conformity7,
    and with the competition rules;
28. Whereas within Member     States, support may be given to groups of
    people  with   special   needs;   whereas  this   may   include   provisions
    relating to the voice telephony service, because it is recognized as
    an important service for handicapped people;
29. Whereas  free circulation     of telecommunications     terminal   equipment
    must be guaranteed, and Directive 91/263/EEC describes requirements
    for terminal equipment;      whereas to ensure effective implementation
    of this objective,     it   is necessary   to   set  requirements    for the
    corresponding network termination point, including specifications for
    the  socket,   and  if  necessary   to make    provision   for  the   use of
    terminal/network adaptors;
30. Whereas national telephone numbers are a resource which should be
    controlled by regulatory bodies; whereas numbering schemes should be
    developed in full consultation with telecommunications organizations
    and in harmony with a long-term Community-wide numbering           framework
    OJ No L 128, 23.5.1991, p. 1.
 ---pagebreak---                                     - 20 -
    and the international numbering scheme; whereas number changes are
    expensive   for both    telecommunications   organizations   and  users to
    implement, and should be kept to a minimum compatible with national
    and international long-term requirements;
31. Whereas there is an immediate need to create a European numbering
    space  in   order   to  provide  common  numbers   and  common   codes   for
    Community-wide    voice  telephony   services   including  freephone/green
    numbers;
32. Whereas in accordance with Directive 90/388/EEC Member States which
    make the supply of telecommunications services subject to a licensing
    or declaration procedure must ensure that the conditions            for the
    grant of licences are objective, non-discriminatory and transparent,
    that reasons are given for any refusal, and that there is a procedure
    for appealing against any such refusal; whereas usage conditions for
    the public telephone network must be compatible with Community law
    and in particular Directive 90/387/EEC;       whereas in accordance with
    Council Directive 92/44/EEC of 5 June 1992 on the application of ONP
    to leased lines8, no technical restrictions must be introduced or
    maintained    for  the   interconnection   of  leased   lines   and   public
    telephone networks;
33. Whereas   in   accordance   with  Directive   90/387/EEC,   the   essential
    requirements upon which restrictions on access to and usage of public
    telecommunications networks or services are justified include only
    security   of network operations, maintenance of network         integrity,
    interoperability of services in justified cases, and protection of
    data as appropriate;     whereas, in addition, the conditions generally
    applicable to the connection of terminal equipment apply;            whereas
    national regulatory authorities may authorize procedures whereby a
    telecommunications organization can react immediately in the event of
    a serious breach of access or usage conditions;
    OJ No L 165, 19.6.1992, p. 27.
 ---pagebreak---                                     - 21 -
34. Whereas the principle of transparency should apply to the standards
    upon which voice telephony services are based; whereas in accordance
    with Directive 90/387/EEC, the harmonization of technical interfaces
    and   access    conditions     must   be   based    on   common     technical
    specifications which take account of international standardization;
    whereas in accordance with Council Directive 83/189/EEC of 28 March
    1983 laying down a procedure for the provision of information in the
    field   of  technical    standards    and  regulations^,    as    amended  by
                          10
    Directive 88/182/EEC , new national standards must not be developed
    in areas where harmonized European standards are under development;
35. Whereas,   to  enable    the   Commission   to   monitor   effectively    the
    application of this Directive, it is necessary that Member States
    notify to the Commission which national regulatory authority will be
    responsible   for   its    implementation,    and   provide    the   relevant
    information called for in this Directive;
36. Whereas in addition to the rights of recourse granted under national
    or Community law, there is a need for a simple conciliation procedure
    for resolving disputes both at a national level and at a Community
    level; whereas this procedure should be responsive, inexpensive and
    transparent, and should involve all the parties concerned;            whereas
    this does not prejudice the normal application of the proceedings
    provided for in Articles      169 and 170 and the competition rules of
    the Treaty;
37. Whereas   for  interconnection     issues,  a procedure     is   required  to
    resolve disputes in order to ensure Community-wide services;          whereas
    such a procedure should involve the ONP Committee;
38. Whereas, given the dynamic technological development in this sector,
    it  is necessary    to establish     a procedure    for adjustment     of the
    technical   provisions   of   this   Directive,   which  involves    the  ONP
    Committee;
9   OJ No L 109, 26.4.1983, p. 8.
10  OJ No L 81, 26.3.1988, p. 75.
 ---pagebreak---                                      - 22 -
39. Whereas Council Directive            /      /EEC [concerning the protection
    of  personal    data   and  privacy    in the   context     of  public   digital
    telecommunications networks, in particular the integrated services
    digital    network    (ISDN)   and    public   digital     mobile    networks] 11
    requires Member States to ensure the protection of personal data and
    privacy    in   the  telecommunications      sector,    with    regard   to  the
    collection, storage, and processing of personal data, and to ensure
    the    confidentiality     of    information      transmitted     over    public
    telecommunications networks; whereas Article 27 of Council Directive
    ..../       /EEC    [approximating      certain     laws,     regulations    and
    administrative     provisions    of   the   Member    States    concerning   the
    protection of individuals in relation to the processing of personal
    data] 1 2 sets up a Working Party on the protection of personal data;
    whereas where     appropriate, the      Commission    may   discuss with    this
    working party measures concerning data protection and privacy                 in
    relation to open network provision;
40. Whereas     telecommunications      services    are    subject     to   consumer
    protection    legislation   and   legislation    concerning    promulgation of
    information or material which may be considered offensive by the
    general public, and therefore no specific additional measures are
    envisaged in this Directive;
41. Whereas given the dynamic development in this sector, the application
    of ONP to voice telephony must be a progressive and ongoing process,
    and the regulatory conditions must be flexible enough to meet the
    demands    of  a   changing   market    and   changing    technology;    whereas
    therefore a responsive procedure for technical adjustment should be
    established which takes full account of the views of Member States;
42. Whereas a need is foreseen for a procedure for ensuring convergence
    of voice telephony service and network features at a Community level;
    whereas    such   a   convergence     procedure    should    involve    the  ONP
    Committee; whereas in such a procedure, full account must be taken of
    the state of network development and market demand in the Community;
11  COM(90) 314 - SYN 288, 13.9.1990.
12  COM(90) 314 - SYN 287, 13.9.1990.
 ---pagebreak---                                     -23 -
43. Whereas   the   goal  of   an   advanced   cost-effective     trans-European
    telephony service - an essential foundation of the single market -
    requires effective and efficient interconnection of national networks
    and   interoperability    of   services;    whereas   the   alternative    to
    Community legislation is an analogous system of provisions negotiated
    between the Member States which would involve obvious difficulties
    because  of   the  number   of  organisms    which  would   be   involved  in
    multiple bilateral negotiations;     whereas on the contrary the form of
    a Community directive has repeatedly shown itself, in the sector of
    telecommunications    among    others,   as   a   practicable,    rapid   and
    efficient   means;   whereas    the   objective    of   the    action   under
    consideration can therefore be better achieved at Community level;
 ---pagebreak---                                       - 24  -
HAS ADOPTED THIS DIRECTIVE:
                                     Chapter 1
                                      General
                                     Article 1
                                       Scope
1.   This Directive concerns the harmonization of conditions for open and
     efficient access to and use of fixed public telephone networks and
     services,    and   the  availability     throughout   the   Community   of   a
     harmonized voice telephony service.
2.   The provisions of this Directive shall apply independently of the
     network   technology   used   to provide voice     telephony   service.  This
     Directive does not apply to mobile telephone services except in so far
     as it concerns the      interconnection    between the networks used       for
     mobile telephone services and the fixed public telephone networks.
                                     Article 2
                                    Definitions
1.   The  definitions    given   in Directive    90/387/EEC  shall   apply,  where
     relevant, to this Directive.
2.   For the purposes of this Directive:
           'fixed     public     telephone     network'    means     the    public
          telecommunications      network  which   provides   switched   telephony
          capacity connections between network termination points at fixed
          locations, and which is used, inter alia, for the provision of
          voice telephony service;
     -     'users' means end-users, including consumers         (i.e. residential
          end-users), and service providers, including         telecommunications
          organizations where the latter are engaged in providing services
          which are or may be provided also by others;
 ---pagebreak---                                - 25  -
     'national regulatory authority' means the body or bodies in each
     Member State, legally distinct and functionally independent of
     the telecommunications organisations, entrusted by that Member
     State, inter alia, with the regulatory functions addressed in
     this Directive;
     'ONP Committee' means the committee created by Article 9(1) of
     Directive 90/387/EEC;
     'public pay-telephone' means a telephone available to the general
     public, for the use of which the means of payment can include
     coins, credit/debit cards and/or pre-payment cards;
     'public telephone    call box' means a pay-telephone      located on
     public ground.
                              Chapter 2
          Access to and use of public telephone networks
                   and voice telephony services
                              Article 3
     Provision of service, connection of terminal equipment,
                       and use of the network
Member States shall ensure that users have the right to:
(a)  be supplied with a connection to the public telephone network;
(b)  connect  and  use   approved  terminal  equipment   situated  on the
     user's premises, in accordance with national and Community law;
(c)  use the public telephone network for voice telephony and other
     applications,   including    those  which   require   a   transparent
     telephony circuit, to the full extent allowed under Community law
     in accordance with the relevant targets for supply and quality of
     service set out in Article 5.
 ---pagebreak---                                    - 26  -
                                  Article 4
                  Publication of and access to information
 1.  National regulatory authorities shall ensure that adequate and up-to-
     date information on access to and use of the public telephone network
     and voice telephony service is published according to the list of
     headings given in Annex 1.
     Changes in existing offerings shall be published as soon as possible
     and, unless the national regulatory authority agrees otherwise, no
     later than 2 months before their implementation.
 2.  The information referred to in paragraph 1 shall be published in an
     appropriate manner so as to provide easy access for users to that
     information.
3.  National regulatory authorities shall notify to the Commission before
     1 January 1994 - and thereafter in case of any change - the manner in
    which the information referred to in paragraph 1 is made available;
    the Commission will regularly publish a corresponding reference in the
    Official Journal of the European Communities.
                                 Article 5
              Targets for supply time and quality of service
1.  National regulatory authorities shall ensure that targets are set and
    published for supply time and quality of service indicators based on
    the list set out in Annex 2, and that the performance of national
    telecommunications   organizations  in  relation  to those  targets  is
    published periodically.   Definitions, measurement methods, and targets
    shall be reviewed periodically by the national regulatory authority,
    taking into account Community-wide convergence of quality of service
    criteria.
2.  Publication shall be in the manner laid down in Article 4.
 ---pagebreak---                                          - 27    -
                                        Article 6
                  Conditions for the termination of offerings
 1.  National regulatory      authorities shall ensure that existing              service
     offerings    continue     for   a    reasonable    period    of    time,   and   that
     termination of an offering can be done only after consultation with
     users and organizations representing user and/or consumer interests.
 2.  Without prejudice to other rights of appeal provided for by national
     laws,   Member    States    shall     ensure    that   users    and    organizations
     representing    user   and/or    consumer     interests    can bring     before   the
     national regulatory authority cases where the users do not agree with
    the    termination      date    as    envisaged     by    the    telecommunications
    organization.
                                       Article 7
                                   User contracts
1.  National    regulatory     authorities      shall   ensure    that    users  have    a
    contract    which     specifies      the    service    to    be    provided    by   a
    telecommunications organization and the compensation arrangements if
    the contracted service quality levels are not met.
2.  Standard    contract     conditions      and   compensation     schemes     used   by
    telecommunications      organizations      shall   be   agreed    by   the  national
    regulatory     authority.     Users'      contracts    with     telecommunications
    organizations shall contain a summary of the procedure for settlement
    of disputes.
3.  Member    States    shall    ensure     that    users,   acting     where   national
    procedures allow,      in conjunction with organizations representing user
    and/or consumer interests, have the right to institute proceedings
    against a telecommunications organization.
 ---pagebreak---                                   - 28   -
                                 Chapter 3
     Advanced features, special network access and interconnection
                                 Article 8
                      Provision of advanced features
1. National regulatory authorities shall ensure the provision, subject to
   technical and economic feasibility, of the features listed in point 1
   of Annex 3, in accordance with technical standards as identified in
   Article 22.
2. National   regulatory   authorities    shall    facilitate    and   encourage
   provision of the services and features listed in point 2 of Annex 3,
   in accordance with technical standards as identified in Article 22,
   through     commercial     arrangements      between      telecommunications
   organizations and where appropriate others, in conformity with the
   procedural and substantive rules of competition of the Treaty, and in
   response to user demand.
3. National regulatory authorities shall ensure that proposed dates for
   the introduction of these features are set, taking into account the
   state   of  network   development,   market    demand   and   progress   with
   standardization, and published in the manner laid down in Article 4.
                                 Article 9
                          Special network access
1. National regulatory authorities shall ensure that telecommunications
   organizations   respond   to  requests   from    users,   including   service
   providers,   for access to the public      telephone    network   at  network
   termination points other than the network termination points referred
   to in Annex 1.
 ---pagebreak---                                     - 29  -
   Such requests may be referred to the national regulatory authority
   where the telecommunications organization considers that granting the
   access requested would adversely affect the normal operation of the
   public   telephone   network,   or  would   impinge   upon  any   special  or
   exclusive rights granted to the telecommunications           organization  in
   accordance with Community law.       Access shall be restricted or denied
   only on the grounds given in Article 21.
2. National regulatory authorities shall ensure that telecommunications
   organizations adhere to the principle of non-discrimination when they
   make use of the public telephone network for providing services which
   are or may be provided also by other service providers.
3. Technical and commercial arrangements for special network access shall
   be a matter for agreement between the parties involved, subject to
   intervention by the national regulatory authority as laid down in
   paragraphs 1, 4 and 5.     The agreement may include reimbursement to the
   telecommunications     organization    for   specific   costs   incurred   in
   providing the network access requested.
4. The national    regulatory   authority   shall intervene    if requested by
   either party, in order to set conditions that are non-discriminatory,
   are fair and reasonable       for both parties, and offer the greatest
   benefit to all users.
5. National regulatory     authorities shall also have the right,         in the
   interest of all users, to ensure that the agreements are entered into
   and   implemented  in an efficient     and timely manner, and that they
   include    conditions     about   conformance    to    relevant    standards,
   conformance to essential requirements and/or the maintenance of end-
   to-end quality.
6. The Commission shall request standards for new types of network access
   to be drawn up by the European Telecommunications Standards Institute
    (ETSI), where appropriate.     Standards for these new types of network
   access shall be referenced in the Official Journal of the European
   Communities in accordance with Article 5(1) of Directive 90/387/EEC.
 ---pagebreak---                                        30   -
 7.  Details  of   agreements   for   special   network   access    shall   be  made
     available  to   the  national   regulatory    authority   upon   request.   The
     national regulatory authority shall make details of agreements for
     special network access available to the Commission on request.
                                   Article 10
                                Interconnect ion
1.   National regulatory authorities shall ensure that reasonable requests
     for  network    interconnection    from   authorized    providers    of   voice
    telephony services are met, in particular to ensure Community-wide
    provision of voice telephony service.          No request shall be refused
    without prior consultation of the national regulatory authority or
    authorities concerned.
2.  Technical and commercial arrangements for interconnection shall be a
    matter   for   agreement   between    the   parties   involved,     subject   to
    intervention by the national regulatory authority as laid down in
    Article 9(4) and (5).
3.  If interconnection agreements include specific compensation provisions
    for the telecommunications organisation in situations where different
    operating    conditions,   eg    price    controls   or    universal     service
    obligations, are imposed upon the respective parties, such charges
    shall be cost-orientated, non-discriminatory and fully justified, and
    shall be levied only with the approval of the national regulatory
    authority acting in accordance with Community law.
4.  National regulatory authorities shall notify to the Commission the
    names of those telecommunications        organizations    in their territory
    which are authorized to interconnect their networks directly with the
    networks of telecommunications organizations in other Member States,
    in order to provide voice telephony services.          The Commission shall
    publish   these    names  in   the   Official    Journal    of   the   European
    Communities.
5.  Details of interconnection agreements shall be made available to the
    national regulatory authorities concerned, upon request.          The national
    regulatory    authorities    shall    make    details    of    interconnection
    agreements available to the Commission on request.
 ---pagebreak---                                     - 31   -
                                   Chapter 4
                   Tariff and cost accounting principles
                                  Article 11
                              Tariff principles
National regulatory authorities shall ensure thattariffs for use of the
public telephone network follow the basic principles of cost orientation
and transparency, and comply with the provisions given below:
(a)  tariffs for access to and use of the public telephone network shall be
     independent of the type of application which the users implement,
     except  to  the   extent  that    they  require   different  services  or
     facilities;
(b)  tariffs for service features additional to the provision of connection
     to the public   telephone   network and provision     of voice telephone
     service  shall,  in accordance    with  Community   law, be  sufficiently
     unbundled, so that the user is not required to pay for features which
     are not requested;
(c)  tariffs shall normally contain the following elements, each of which
     should be itemized separately for the user:
          an initial   subscription charge, for connection to the public
          telephone network and subscription to the telephone service,
          a periodic   rental  charge, based    on the type of     service and
          features selected by the user,
          usage dependent charges, which may, inter alia, take account of
          peak periods and off-peak periods.
     Where other tariff elements are employed, these must be transparent
     and based on objective criteria;
 (d) tariffs shall be published in the manner laid down in Article 4;
 ---pagebreak---                                          - 32
 (e) tariff changes shall only be implemented after an appropriate public
     notice period,      set by the national regulatory authority, has been
     observed.
                                       Article 12
                             Cost accounting principles
1.   Member States shall, without prejudice to further specific obligations
     to be established in pursuance of the competition rules of the Treaty,
     ensure that their telecommunications organizations formulate and put
     into practice a cost accounting system suitable for the implementation
     of Article 11, and which as such has been approved by the national
     regulatory     authority     for    application   by    the    telecommunications
     organization.
2.   National regulatory authorities shall ensure that a description of the
     approved cost accounting system is published in accordance with the
     requirements of Article 4.
3.   National   regulatory      authorities    shall   ensure    that   the   financial
     accounts    of    those    telecommunications     organizations      notified   in
     accordance with Article 24(2) are audited on an annual basis by an
     independent      body,     in    order    to    verify     compliance     of   the
     telecommunications      organizations'     figures    with   the   rules   of  the
     approved cost accounting system as set forth in this Article.                  The
     annual   summary     of   accounts    published    by   the    telecommunications
     organization shall include a statement by the auditor on compliance of
     the figures with the rules of the approved cost accounting system.
     On publication, the national regulatory authority shall send a copy of
     the published accounts to the Commission.
4.   Details of the full financial accounts shall be made available to the
     national   regulatory     authority    on  request    and   in   confidence.   The
     national   regulatory     authority    shall make    details    of the    accounts
     available to the Commission on request and in confidence.
 ---pagebreak---                                      - 33  -
                                   Article 13
     Discounts, low usage schemes and other specific tariff provisions
1.   National regulatory authorities shall ensure that discount schemes can
     be offered to users, subject to supervision by the national regulatory
     authority, in accordance with the competition rules of the Treaty.
2.   National  regulatory  authorities may agree special tariffs       for the
     provision  of   socially   desirable   services   such as  the  emergency
     services, or for low-usage users or specific social groups.
3.   National regulatory authorities shall ensure that tariff structures
     allow  for  reduced-rate    night-time   and   weekend calls  within   the
     Community.
4.   Special tariffs which are introduced        for voice telephony   services
     provided  in connection with specific projects of limited duration,
     such as pilot trials, shall be subject to prior notification to the
     national regulatory authority.
                                    Chapter 5
                            Other service features
                                   Article 14
                               Itemized billing
National  regulatory  authorities    shall ensure that targets    are set and
published for the provision of itemized billing in order to allow users to
check their bills, taking into account the state of network development and
market demand.
Itemized billing shall be available to users on request. Subject to the
level of detail permitted under relevant legislation on the protection of
personal  data  and  privacy,   itemized   bills  shall be  able to   show the
composition of the charges incurred.
Within this framework, different levels of detail may be offered to users
at reasonable tariffs.
 ---pagebreak---                                         - 34    -
                                      Article 15
                                 Directory services
Subject to the requirements of relevant           legislation on the protection of
personal   data  and  privacy,    national   regulatory     authorities     shall  ensure
that:
 (a)  directories of users who subscribe to the voice telephony service are
     made available to users in either printed or electronic form, and are
     updated on a regular basis;
(b)  users   have the right     to have or not        to have an entry       in  publicly
     available directories, at no additional charge;
(c)  in   accordance   with   Community    law,   telecommunications       organizations
     make   directory    information    concerning     the   voice   telephony    service
     available on request, on published terms which are fair, reasonable
     and non-discriminatory.
                                     Article 16
                    Provision of public telephone call-boxes
National   regulatory   authorities    shall   ensure    that   public   telephone    call
boxes are provided to meet the needs of users, in terms of both numbers and
geographical coverage, and that it is possible to make emergency calls from
such telephones.
                                     Article 17
                            Telephone pre-payment cards
1.   The Commission shall ensure that standards for a harmonized telephone
     pre-payment   card   and  associated    equipment     suitable   for use    in pay-
     telephones    in   all   Member    States    are    drawn   up   by   ETSI    and/or
     CEN/CENELEC, in order to allow pre-payment cards issued in one Member
     State   to be   used   in  other   Member    States.    The   standards    shall   be
     referenced   in the    Official   Journal     of  the  European    Communities     in
     accordance with Article 5(1) of Directive 90/387/EEC.
 ---pagebreak---                                       - 35   -
2.   National    regulatory   authorities    shall   encourage    the   progressive
     introduction of public pay-telephones conforming to these standards.
                                    Article 18
                 Specific facilities for handicapped users and
                           people with special needs
Notwithstanding    the   provisions    in   Article    11,   national    regulatory
authorities may draw up specific conditions to aid handicapped users and
people with special needs in their use of the voice telephony service.
                                    Article 19
           Specifications for network access, including the socket
1.   The Commission    shall request ETSI and/or CEN/CENELEC to study the
     technical and economic feasibility of a harmonized single-line network
     interface suitable for access to and use of the public telephone
     network in all Member States, with a view to further standardization,
     including    the   socket.   Standards    for  such   a   harmonized    public
     telephone    network  interface    shall   be referenced    in   the  Official
     Journal of the European Communities in accordance with Article 5(1) of
     Directive 90/387/EEC.
2.   Where voice telephony      service is supplied to users over the ISDN
     network,    national   regulatory   authorities    shall   ensure   that,  for
     service provided after 1 January 1994, the new network termination
     point complies with the relevant physical interface specifications, in
     particular those for the socket, referenced in the list of standards
     published in the Official Journal of the European Communities13 on
     29 December 1990.
 13    O J N o C 327, 29.12.1990, p. 19.
 ---pagebreak---                                     - 36   -
                                   Chapter 6
                                   Numbering
                                  Article 20
                               Numbering Issues
1.  Member States shall ensure that the control of national telephone
    numbering   plans,  which   in   accordance   with   Community   law  is the
    responsibility of the national regulatory authority, guarantees that
    numbers and numbering ranges are allocated in a fair, equitable and
    timely manner.    The national regulatory authority shall ensure that
    there   is no   discrimination    in the   allocation   of   numbers  between
    telecommunications organizations and other service providers.
2.  National   regulatory    authorities    shall   ensure   that   the  national
    numbering plan, and all subsequent additions or amendments to it, is
    published, subject to limitations imposed on the grounds of national
    security.
3.  The   Commission   shall   promote   the   availability    of  Community-wide
    telephone numbering, which will in particular aim at the features
    listed in Annex 4.
<*. Within the numbering scheme, a mechanism for the allocation of unique
    individual telephone numbers with pan-European significance shall be
    instituted in accordance with the procedure set out in Article 29.
    Such telephone numbers, to include Green/Freephone numbers and numbers
    for services which use kiosk billing,          shall be the same for all
    callers within the Community and shall remain the same wherever the
    owner is located within the Community.
 ---pagebreak---                                   - 37  -
                                 Chapter 7
         Usage conditions, essential requirements and standards
                                Article 21
               Usage conditions and essential requirements
1. Member States shall ensure that usage conditions which restrict the
   use of public telephone networks or voice telephony services are based
   only on the grounds given in paragraphs 3 to 6, and are imposed with
   the agreement of the national regulatory authority.
2. National regulatory authorities shall draw up procedures in order to
   decide, on a case-by-case basis and in the shortest possible time
   period, to allow or not to allow telecommunications organizations to
   take measures such as the refusal to provide access to the public
   telephone network, or the interruption or reduction in availability of
   voice telephony service, for reasons of a user's alleged failure to
   comply with the usage conditions. These procedures may also provide
   for the possibility for the national regulatory authority to authorize
   a priori specified measures in case of defined infringements of usage
   conditions.
   The national regulatory authority shall ensure that these procedures
   provide for a transparent decision-making process in which due respect
    is given to the rights of the parties. The decision shall be taken
    after having given the opportunity to both parties to state their
    case. The decision shall be duly justified and notified to the parties
    within one week of its adoption; it shall not be enforced before its
    notification.
    This provision shall not prejudice the rights of the parties concerned
    to institute proceedings before the courts.
     The existence of these procedures shall be published in the manner
     laid down in Article 4.
 ---pagebreak---                                      - 38    -
   3. Infringement of special or exclusive rights for voice telephony
      Any usage restrictions placed upon users on the basis of special or
      exclusive  rights   for   voice    telephony    shall   be   imposed   through
      regulatory means, and not through technical restrictions.
   4. Conditions   generally   applicable     to   the    connection   of   terminal
      equipment to the network
      Conditions   for  connection    of   terminal    equipment    to  the   public
      telephone network shall comply with Directive 91/263/EEC, and shall be
      published in accordance with the requirements of Article 4.
      Where a user's terminal equipment does not or does no longer comply
      with its approval conditions, or where it malfunctions in a way which
      adversely affects other users of the network, or where there is a
      danger of injury to personnel, national regulatory authorities shall
      ensure that the following procedure is followed:
           the   provision    of   service      may    be    interrupted    by   the
           telecommunications     organization       until     the    terminal    is
           disconnected from the network termination point;
           the telecommunications organization immediately informs the user
           about the interruption, giving the reasons for the interruption;
           as soon as the user has ensured that the terminal equipment is
           disconnected from the network termination point, the provision of
           service shall be restored.
"/ 5. Reasons based on essential requirements compatible with Community law
      Without prejudice to Articles 2 and 3 of Directive 90/388/EEC, when
      access to or use of the public telephone network is restricted on the
      basis of essential requirements, national regulatory authorities shall
      ensure that the relevant national provisions identify which of the
      essential requirements (a) to (d) listed below are the basis of such
      restrictions.
 ---pagebreak---                                  - 39   -
Restrictions imposed on the basis of essential requirements shall be
published in the manner laid down in Article 4.
Usage   restrictions    derived   from   essential  requirements  shall  be
imposed    through    regulatory    means,   and   not  through   technical
restrictions.
Without prejudice to Articles 3(5) and 5(3) of Directive 90/387/EEC,
the essential requirements as specified in Article 3(2) of Directive
90/387/EEC apply to the public telephone network and voice telephony
service in the following manner:
(a)   Security of network operations
There shall be no restrictions on the use of the public telephone
network on the grounds of security of network operations except during
the    period    when    an   emergency    situation   prevails,   when   a
telecommunications    organization may take the following measures in
order to safeguard the security of network operations:
      the interruption of the service,
      the limitation of service features,
-     the denial of access to the network      for new users.
An emergency situation in this context means an exceptional case of
force majeure, such as extreme weather, flood, lightning or fire,
industrial action or lock-outs, war, military operations or civil
disorder.    In    an   emergency     situation    the   telecommunications
organization    shall make every endeavour to ensure that service is
maintained to all users.
National regulatory authorities shall ensure that telecommunications
organizations have procedures in place whereby users and the national
regulatory authority are immediately notified of the beginning and the
end of the emergency, as well as the nature and extent of temporary
service restrictions.
 ---pagebreak---                                    - 40   -
    (b) Maintenance of network integrity
   National regulatory authorities shall ensure that restrictions on the
   use of the public telephone network on the grounds of maintenance of
   network integrity, in order to protect network equipment, software,
   stored data or staff, are kept to the minimum necessary to provide for
   normal   operation   of the   network.    Restrictions    shall   be based    on
   published,   objective    criteria,   and   shall   be   applied    in  a   non-
   discriminatory manner.
    (c)  Interoperability of services
   Where   the  national   regulatory   authority    imposes   conditions    about
   interoperability of services in contracts relating to interconnection
   of public networks or special network access, these conditions shall
   be published in the manner laid down in Article 4.
   When   terminal   equipment   has   been   approved    and  is   operating    in
   compliance with Directive 91/263/EEC, no further usage restrictions
   shall be imposed on the grounds of interoperability of services.
    (d)  Protection of data
   Member States may restrict use of the public telephone network on the
   grounds of protection of data only to the extent necessary to ensure
   compliance with relevant regulatory provisions on the protection of
   data including protection of personal data, the confidentiality of
   information transmitted     or stored, and the protection          of privacy,
   compatible with Community law.
6. Non-payment of bills
   National regulatory authorities shall authorize, a priori, specified
   measures,   which   shall  be  published    in  the   manner    laid   down   in
   Article 4, to cover non-payment of bills.       These measures shall ensure
   that any service interruption is confined to the service concerned,
   and that due warning is given to the user beforehand.
 ---pagebreak---                                   - 41  -
                                Article 22
                           Technical standards
1. National regulatory authorities shall ensure that, in the provision of
   the services, facilities and features called for in this Directive,
   reference is made to standards or specifications relevant to the user,
   namely:
        standards  published   in the Official    Journal  of the   European
        Communities,   in   accordance    with  Article   5   of   Directive
        90/387/EEC,
   or, in the absence of such standards,
        European standards adopted by ETSI, CEN/CENELEC, or any successor
        thereof
   or, in the absence of such standards,
        international   standards   or   recommendations   adopted   by   the
        International Consultative Committee on Telegraphs and Telephones
        (CCITT),  the   International   Consultative   Committee   on   Radio
        (CCIR), the International Organization for Standardization (ISO)
        or the International Electrotechnical Committee (IEC)
   or, in the absence of such standards,
   -    national standards or specifications,
   without prejudice to standards which may be made compulsory under
   Article 5(3) of Directive 90/387/EEC.
2. Member States shall ensure that standards or specifications for use by
   telecommunications organizations are subject to the requirements of
   Directive 83/189/EEC.
 ---pagebreak---                                   - 42  -
                                 Chapter 8
                          Procedural provisions
                                Article 23
               Provisions for Community-wide convergence
1. Based on the reports provided by the national regulatory authorities
   under Article 24(3) and the information published under Article 4, the
   Commission shall review progress towards convergence of targets and
   implementation of common services and facilities within the Community.
2. Where the Commission finds that, in relation to the requirements of
   Articles 3 to 21 above, the actions planned or taken or the targets
   agreed by national regulatory authorities are not achieving adequate
   convergence at Community    level, amendment of the relevant targets,
   plans or actions may be determined in accordance with the procedure
   set out in Article 29.
   The procedures initiated by the Commission shall take due account of
   the  state of  network development     and market demand in individual
   Member States.
3. In particular, with regard to those features requiring Europe-wide
   cooperation described   in Article 8(2), where commercial   agreements
   between telecommunications organizations cannot be reached, conditions
   of interconnection and access may be determined in accordance with the
   procedure set out in Article 29, in order to achieve the provision of
   harmonized features and facilities to users.
   The procedures initiated by the Commission shall take due account of
   the state of network development and market demand in the Community.
                                Article 24
                       Notification and reporting
1. Member States shall notify to the Commission their national regulatory
   authority.  The national regulatory authority shall be responsible for
   implementing the requirements laid down in this Directive, including
 ---pagebreak---                                   - 43   -
   ensuring the publication of targets, reviewing targets, and monitoring
   performance against those targets.
2. National regulatory authorities shall notify to the Commission the
   telecommunications organisations who provide public telephone networks
   and voice telephony services in accordance with the provisions of this
   Directive.
3. National regulatory authorities shall make available to the Commission
   once each calendar year a report covering:
   -    the progress made in achieving the targets agreed by the national
        regulatory authority under Articles 5, 8, 13, 14, and     17;
        summary of cases where requests for special network access or
        network interconnection were refused, or where the procedure in
        Article 21(2) was invoked.
   The annual report shall be sent to the Commission within 5 months of
   the end of the year.
4. National regulatory authorities shall keep available and submit to the
   Commission   on  request  details   of  individual  cases  including, the
   measure taken and their justification.
                                Article 25
              Conciliation and dispute resolution procedure
1. Member States shall ensure that, in the event of an unresolved diBpute
   with  a  telecommunications    organization,   users,  including   service
   providers, consumers, or other telecommunications organizations shall
   have a right of appeal to the national regulatory authority or another
   independent body, and that easily accessible procedures are created at
   a national level to settle disputes in a fair, timely and transparent
   manner.
 ---pagebreak---                                 - 44  -
2. Without prejudice to
   (a)  any action that the Commission or any Member State might take
        pursuant to the Treaty,
   (b)  the rights of the person invoking the procedure in paragraphs 3
        and 4, of the telecommunications or ganisations concerned or of
        any other person under applicable national law except in so far
        as they enter into an agreement    for the resolution of issues
        between them,
   the aggrieved party may, where either the dispute cannot be resolved
   at the national level or it involves telecommunications organizations
   in more than one Member State, invoke the procedure provided for in
   paragraphs 3 and 4 by way of a written notification to the national
   regulatory authority and to the Commission.
3. Where the national regulatory authority or the Commission finds that
   there is a case for further examination,      following  a notification
   based on paragraph 2, it can refer the matter to the Chairman of the
   ONP Committee.
4. In such cases, the Chairman of the ONP Committee shall initiate the
   procedure described below if satisfied that all reasonable steps have
   been taken at a national level:
   (a)  The Chairman  of the ONP Committee     shall  convene as  soon as
        possible a working group including at least two members of the
        ONP Committee and one representative of the national regulatory
        authorities concerned, and the Chairman of the ONP Committee or
        another official of the Commission appointed by him. The working
        group shall be chaired by the representative of the Commission,
        and shall normally meet within ten days. The chairman of the
        working group may decide upon proposal of any of the members of
        the working group, to invite a maximum of two other persons as
        experts to advise it;
 ---pagebreak---                                    - 45  -
   (b)  The working group shall give the party invoking this procedure,
        the national regulatory authorities of the Member States, and the
        telecommunications    organizations    involved  the  opportunity to
        present their opinions in oral or written form;
   (c)  The working group shall endeavour to reach agreement between the
        parties involved within three months of the date of receipt of
        the notification referred to in paragraph 2. The Chairman of the
        ONP Committee shall inform that Committee of the results of the
        procedure.
5. When necessary, and in particular where no agreement can be reached,
   especially  with  regard   to  issues   relating  to Articles   9 and 10,
   measures to resolve the issue may be taken in accordance with the
   procedure set out in Article 29.
6. The  party  invoking   the   procedure    shall  bear  its  own  costs of
   participating in this procedure.
                                 Article 26
                                 Deferment
1. When a Member State is not able to or can foresee that it will not be
   able to fulfil certain requirements of this Directive, it shall notify
   the Commission of the reasons.
2. Deferment of the obligations can only be accepted in cases where the
   Member State concerned can prove that the actual state of development
   of itB public telephone network or the conditions of demand are such
   that the obligations would impose an excessive burden.
3. The Member State shall inform the Commission of the date by which the
   requirements can be met and of the measures envisaged in order to meet
   this deadline.
 ---pagebreak---                                     - 46  -
4.   Whan the Commission judges that the proposed deferment is justified
     because of the particular situation of the Member State concerned, it
     shall confirm the date and measures proposed under paragraph 3.
                                  Article 27
                            Technical adjustment
Modifications necessary to adapt the technical provisions of this Directive
to new technological developments or to changes in market demand shall be
determined in accordance with the procedure set out in Article 29.
                                  Article 28
                                   Committee
The Commission shall be assisted by the committee created by Article 9(1)
of Directive 90/387/EEC.
The Commission shall where necessary inform the Committee of the outcome of
consultations   with   the    representatives  of   the   telecommunications
organizations, the users, the consumers, the manufacturers, the service
providers and trade unions.
                                  Article 29
                             Committee procedure
The representative of the Commission shall submit to the committee a draft
of the measures to be taken.     The committee shall deliver its opinion on
the draft, within a time limit which the chairman may lay down according to
the urgency of the matter, if necessary by taking a vote.
The opinion shall be recorded in the minutes; in addition, each Member
State shall have the right to ask to have its position recorded in the
minutes.
The Commission shall take the utmost account of the opinion delivered by
the committee.   It shall inform the committee of the manner in which its
opinion has been taken into account.
 ---pagebreak---                                    - 47   -
                                  Chapter 9
                              Final provisions
                                 Article 30
                                    Review
On the basis of the results of the implementation of this Directive up to
1 January 1995, the Commission will review whether its provisions need to
be amended.
                                 Article 31
                      Implementation of the Directive
1.   Member States shall take the measures necessary to comply with this
     Directive before 1 January 1994.      They shall immediately inform the
     Commission thereof.
     When  Member  States  adopt   these  measures, these    shall  contain  a
     reference to this Directive or shall be accompanied by such reference
     at the time of their official publication. The procedure for such
     reference shall be adopted by Member States.
2.   Member States shall communicate to     the Commission the main provisions
     of  national  law which   they   adopt   in the   field covered  by  this
     Directive.
                                 Article 32
                                 Addressees
This Directive is addressed to the Member States.
Done at Brussels,                                 For the Council
                                                  The President
 ---pagebreak---                                    - 48  -
ANNEX 1   HEADINGS FOR INFORMATION TO BE PUBLISHED
          in accordance with Article 4
1.   Name(B) and address(es) of telecommunications organization^)
     i.e. name(s) and head office address(es) of the telecommunications
     organisation^)   providing  public   telephone  networks  and/or  voice
     telephony services
2.   Telecommunications services offered
2.1. Types of connection to the public telephone network
     Technical characteristics of interfaces at commonly provided network
     termination  points  are  required,   including reference  to  national
     and/or international standards or recommendations, in accordance with
     Article 22:
     -    for analogue and/or digitally presented networks;
          (a)  single line interface
          (b)  multiline interface
          (c)  direct dialling in (DDI) interface
          (d)  other interfaces commonly provided
          for ISDN;
          (a)  specification of basic and primary rate interfaces at the
               S/T reference points, including the signalling protocol
          (b)  details of bearer services able to carry voice telephony
               services
          (c)  other interfaces commonly provided
          and any other interfaces commonly provided.
 ---pagebreak---                                    - 49  -
    In addition to the above information to be published on a regular
    basis  as described   in Article    4, telecommunications    organizations
    should  also publish, without     undue delay, any particular      network
    characteristics which are found to affect the correct operation of
    approved terminal equipment.
2.2 Telephone services offered
    Description of the basic voice telephony service offered, indicating
    what is included in the subscription charge and the periodic rental
    charge (e.g. operator services, directories, maintenance)
    Description of optional facilities and features of the voice telephony
    service  which  are   tariffed   separately  from   the   basic  offering,
    including   reference    to  the    relevant  technical     standards   or
    specifications to which they conform, in accordance with Article 22
2.3 Tariffs
    covering access, usage, maintenance, and including details of discount
    schemes
2.4 Compensation/refund policy
    including specific details of the compensation/refund schemes offered
2.5 Level(s) of maintenance service offered
2.6 Ordering procedure
    including  designated   contact   points within   the   telecommunications
    organization
2.7 Standard contracts
    including any minimum contractual period, if relevant
 ---pagebreak---                                 - 50   -
3. Information on licensing requirements for users
   This shall include a clear description of all licensing conditions
   which have an impact on users, including service providers, detailing
   at least:
        information on the character of the licensing      conditions, in
        particular whether registration and/or authorization is required
        on an individual basis, or whether the licence is of a general
        nature which   does not require   individual  registration  and/or
        authorisation;
        the duration of any relevant licences or authorizations;
        a list referring to all documents containing relevant licensing
        conditions which the Member State imposes.
4. Conditions for attachment
-  of voice and non-voice terminal equipment as ap proved by the national
   regulatory authority, subject to the provisions of Council Directive
   91/263/EEC,   including,  where   appropriate,  conditions   concerning
   customer premises wiring and location of the network termination point
5. Usage restrictions
   in accordance with the requirements of Article 21
6. Performance and quality of service parameters
   Definitions, measurements methods, targets and achieved performance
   figures, in accordance with the requirements of Article 5
7. Targets for the introduction of new services, features, facilities and
   tariffs
   in accordance with the requirements of Articles 5, 8, 13, 14, and 17
 ---pagebreak---                                  - 51  -
8.  Notice periods  for the withdrawal of existing     services, features,
    facilities or tariffs
    in accordance with the requirements of Articles 6 and 11
9.  Description of the approved cost accounting system
    showing the main categories under which costs are gathered       (e.g.
    equipment, personnel, buildings, etc.), and the rules used for the
    allocation of costs to the voice telephony service, in accordance with
    the requirements of Article 12
10. The national numbering plan
    in accordance with the requirements of Article 20
11. Terms for the use of directory information
    in accordance with Article 15
12. Conciliation and dispute resolution procedure
    guidelines for users on the appeal mechanisms available for resolving
    disputes with telecommunications organizations, including details of
    the procedure described in Article 25
13. Procedure in the event of non-payment of bills
    in accordance with the requirements of Article 21(6)
 ---pagebreak---                                   - 52    -
ANNEX 2   SUPPLY TIME AND QUALITY OF SERVICE INDICATORS
          in accordance with the requirements of Article 5
1.   The following list indicates areas where quality of service indicators
     are required, under Article 5:
          supply time for initial network connection;
          fault rate per connection;
     -    fault repair time;
          call  failure  rates  for   national,  intra-Community  and  extra-
          Community calls;
     -    dial tone delay;
     -    call set up delay;
     -    transmission quality statistics;
          response times for operator services;
     -    availability  of  coin  and   card-operated  telephones  in  public
          telephones boxes;
     -    billing accuracy,
2.   In accordance with Article 5, definitions and measurement methods must
     be published, with reference to the hierarchy of standards given in
     Article 22.   Where appropriate, the Commission will request ETSI to
     draw up European   standards   for common  definitions  and  measurement
     methods.
 ---pagebreak---                                    - 53   -
ANNEX 3   MINIMUM SET OF ADVANCED FACILITIES AND FEATURES TO BE PROVIDED
          in accordance with Article 8
1.   List of features and facilities referred to in Article 8(1):
     (a)  DTMF (dual tone multi frequency) operation
          i.e.  the  public  telephone  network    supports  the  use of   DTMF
          telephones for signalling to the exchange, using tones as defined
          in CCITT Recommendation Q.23, and supports the same tones for
          end-to-end signalling through the network, both within a Member
          State and between Member States
     (b)  Direct dialling in
          (or facilities offering equivalent functionality)
          i.e.  users on a private branch exchange (PBX) or similar private
          system can be called directly from the public telephone network,
          without intervention of the PBX attendant
     (c)  Call transfer
          i.e. transfer of an established call to a third party in the same
          or another Member State
     (d)  Call forwarding
          i.e. incoming calls sent to another destination in the same or
          another   Member   State   (e.g.    on   no   reply,   on  busy,   or
          unconditionally)
          This facility   should be provided     in accordance with relevant
          legislation on data protection and privacy.
2.   List  of  services,  facilities  and   features   requiring  European-wide
     cooperation referred to in Article 8(2)
 ---pagebreak---                                - 54   -
(a)  European wide access to green/freephone services
     Such  services,    variously   known  as  green  numbers,  freephone
     services, 0800 numbers etc, include dial-up services where the
     caller pays either nothing for the call, or only part of the
     total cost of the call.
(b)  European wide kiosk billing
     Kiosk billing means a facility whereby charges for the use of a
     service   accessed   through   a  telecommunications  organizations'
     network are combined with the network call charges ('premium rate
     service*).
(c)  Automatic reverse charging service feature
     for  calls   which   are   terminated   and  originated  within  the
     Community
     i.e.  prior to the call being connected, the called party, at the
     caller's request, agrees to accept the cost of the call.
(d)  Calling line identification
     i.e. the calling party's number is presented to the called party
     prior to the call being established.
     This facility   should be provided     in accordance with   relevant
     legislation on data protection and privacy.
(e)  Access to operator services in other Member States
     i.e. users in one Member State can call the operator/assistance
     service in another Member State.
(f) Access to directory enquiry services in other Member States
     i.e. users in one Member State can call the directory enquiry
     service in another Member State.
 ---pagebreak---                                    - 55  -
ANNEX 4    TARGET SET OF FEATURES FOR COMMUNITY-WIDE NUMBERING
           in accordance with Article 20
     The following are priorities to be considered under Article 20:
           standard prefix 00 for international calls*;
     -     a European area code (i.e. a single European country code), to
           facilitate the introduction of Community-wide access codes for
           trans-European services**, in particular for:
                directory enquiries;
                green/freephone  (called party pays all) and   shared cost
                calls (caller pays only local call charges);
                value-added services which use kiosk billing;
                global number portability.
*       OJ No L 137, 20.5.1992, p. 21.
**      COM(92) 344, 24.7.1992.
 ---pagebreak---  ---pagebreak---                                                - 56 -
                                                                     ISSN 0254-1475
                                                              COM (92) 247 final
                                                      DOCUMENTS
EN                                                                              15
                                 Catalogue number: CB-CO-92-195-EN-C
                                                             ISBN 92-77-438444
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