6 March Telecoms Council

Date: 13/03/1997

TELECOMS ministers made significant progress in setting out the regulatory framework for liberalisation at the start of 1998 by adopting rules on how licences and authorisations for services should be handled and mopping up remaining obstacles to agreement on Open Network Provision.

A DIRECTIVE on licensing, setting out common procedures for new services to be cleared in all EU countries, was adopted by a qualified majority, with the German and Greek delegations voting against. The directive must take effect by the end of the year. The main provisions demand that telecom companies should normally be given broad authorisations to start new services and only be forced to seek specific licences if they are being allocated scarce resources, given special rights or obliged to undertake particular obligations such as providing universal service. Individual licences should only be rationed if resources are scarce or for other reasons aimed at promoting a sufficient number of operators. Any conditions on general authorisations must be justified, non-discriminatory and proportionate, with the same criteria applying to any fees and charges linked to the clearance process. Under the directive, governments will be allowed to write in conditions covering such issues as special arrangements for disabled people and financial contributions to universal service obligations.

UNANIMOUS agreement was reached on the Open Network Provision Directive, an updating measure which takes on board how universal service demands should be met in a competitive market. Changes will reflect the new environment in 1998 when special or exclusive rights will no longer exist; strengthen universal service obligations so that minimum service levels are offered at affordable prices; and set basic levels of consumer protection. The measure allows governments to force mobile phone operators to contribute to the financing of universal service.

INDUSTRY Commissioner Martin Bangemann outlined a proposed action plan aimed at giving the EU a greater role in the fast-developing market for satellite communications. Bangemann told ministers that Europe had to take the final steps towards creating a single market for satellite equipment, services and communications. Next, the EU would have to find a unified voice in international meetings where such issues as frequency allocation were raised. Bangemann added that research and development funds for the sector should be boosted. A separate decision backing EU-wide action in the area of satellite personal communications services was taken after ministers agreed one amendment from the European Parliament. This decision puts the onus on the European Conference of Postal and Telecommunications Administrations (CEPT) to harmonise frequencies and authorisation conditions for these services by September. The Commission can take back the dossier if CEPT's work is not progressing in a satisfactory way.

A COMMUNICATION on Universal Mobile Telecommunications Systems (UMTS), the next generation of mobile telephone systems, was promised by Bangemann. It should address the legal framework for the new technology, the need for a coordinated EU approach to discussions taking place in the International Telecommunications Union, coordinating the development of UMTS with other countries, the standardisation work required and the best way of promoting European systems.

UK ATTEMPTS to highlight the threat of major confusion at the turn of the century when computers are unable to cope with the change from 1999 to the year 2000 resulted in no fresh initiative from the Commission or other governments. The UK argued that urgent action was needed now to avoid key systems crashing. Bangemann pointed out the Commission had already created a working group of experts to tackle the problem.