Proposal for a European Parliament and Council Decision on the co-ordinated introduction of mobile and wireless communications (UMTS) in the Community
29. 4. 98 EN Official Journal of the European Communities C 131/9 II (Preparatory Acts) COMMISSION Proposal for a European Parliament and Council Decision on the co ordinated introduction of mobile and wireless communications (UMTS) in the Community (98/C 131/05) (Text with EEA relevance) COM(1998) 58 final - 98/0051(COD) (Submitted by the Commission on 3 March 1998) THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community and in particular Articles 57, 66, 100a thereof, Having regard to the proposal of the Commission, Having regard to the opinion of the Economic and Social Committee, Having regard to the opinion of the Committee of the Regions, (1) Whereas the Commission presented on 29 May 1997 to the European Parliament, to the Council, the Economic and Social Committee and the Committee of the Regions a CommunicationØ(˛) on the further development of mobile and wireless communications; (2) Whereas after consulting the industry and other parties concernedØ(ˇ), and considering the trade, industry, standardisation aspects of UMTS, the Commission has presented on 15 October 1997 a CommunicationØ(—) on a Strategy frequency and regulators, operators, manufacturers, interested parties as well as (˛) COM(97) 217 final, 29. 5. 1997. (ˇ) The UMTS Forum has been set up on 16 December 1996 satellite among operators and other the European Telecommunications Standards Institute (ETSI), the European Radiocommunications Office (ERO) and the European Telecommunications Office the support of the Commission; this Forum aims at developing common views for the development and implementation of UMTS and advice on the development of a policy framework relating to the introduction of UMTS. (ETO), with (—) COM(97) 513 final, 15. 10. 1997. Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions - Strategy and policy orientations with regard to the further development of mobile and wireless communiÜ cations (UMTS) - Outcome of the public consultation and proposals for creating a favourable environment. and Policy Orientation with regard to the further Development of Mobile and Wireless CommuniÜ cations (UMTS) and proposed policy orientations and actions in UMTS and to prepare the necessary regulatory framework so as to promote innovation and flexiÜ bility by industry; investment security increase to the existing Community (3) Whereas on 1 December 1997, the Council invited the Commission "to submit by early 1998, a proposal for a European Parliament and Council Decision which would enable orientations to be established on the substance of the issue and will facilitate within legal framework, the early licensing of UMTS services and, if appropriate and on the basis of the existing of competencies, of repartition respect co ordinated allocation of the in Community roaming’Ø(Ñ); whereas the European Parliament has adopted on 29 January 1998 a resolutionØ(Ò) expressing its strong support to the Commission’s CommuniÜ cation on the "Strategy and Policy Orientations with regard to the Further Development of Mobile and Wireless Communications’; in frequencies panÜEuropean and innovative systems needs (4) Whereas UMTS is not a single system or network but a modular concept; whereas subsequent to the current second generation of mobile systems, a new generation of to be developed for the provision of wireless wideband multimedia services, including Internet and other Internet Protocol (I/P) based services, flexible and personalised service provision, support of high volume data rates combining the use of terrestrial fixed and mobile as well as satellite components; whereas satellite components without prejudice to the European Parliament and Council Decision 710/97/EC of this decision shall apply to (Ñ) Conclusions of the Council of 1 December 1997. (Ò) Resolution of the European Parliament of 29 January 1998 - A4Ü0027/98. C 131/10 EN Official Journal of the European Communities 29. 4. 98 24 March 1997 on satellite personal communiÜ cationsØ(˛); whereas there is a need to ensure rapid market access for a ubiquitous coverage and low cost, and innovative service offering through a sufficient level of competition; (5) Whereas identified (WARC 92) the ITU World Administrative Radio Conference in 1992 frequency spectrum for the development of both the satellite and terrestrial parts of Future Public Land Mobile Telecommunications System (FPLMTS), later renamed IMTÜ2000; whereas according to ITU Resolution 212 and to the World RadiocomÜ munications Conference in 1995 (WRC 95), the initial terrestrial element should take place around the year 2000; implementation of the (6) Whereas UMTS in the Community needs to be compatible with the third generation mobile system concept called International Mobile TelecommuniÜ cationsÜ2000 (IMTÜ2000) developed by the InterÜ (ITU) at national Telecommunications Union world level on the basis of ITU Resolution 212; has the Commission Information Society as well as (7) Whereas mobile and wireless communications are of strategic importance both for the development of industry and the Community telecommunications the the for Community economy and employment as a whole; on adopted whereas 3 December 1997 a Green Paper on the convergence of the telecommunications, media and information impliÜ technology sectors, and cations for regulationØ(ˇ); whereas on the basis of the consultation which will result from that Green Paper, the Commission will take into consideration the impact of convergence on UMTS considering in particular the review of Community telecommuniÜ cations regulation by 1999; whereas early decisions on harmonisation of authorisations and co ordiÜ nation of the introduction of UMTS services should aim at creating a favourable climate for investment and deployment of UMTS; the (8) Whereas this requires specific regulatory action at Community level on licensing procedures, spectrum availability and harmonisation and standardisation; whereas in order to ensure the development of CommunityÜwide as well as panÜEuropean and global services with the widest possible territorial coverage, Member States should ensure the rapid and compatible UMTS services in the Community on the basis of internal market principles by means of a co ordinated approach; whereas diverging national laws, regulations and administrative action would hinder or prevent the provision of CommunityÜwide introduction of simultaneous and global UMTS services, and the free movement of related equipment; rules, (9) Whereas existing Community legislation including competition particular Commission in Directive 96/2/EC of 16 January 1996 on mobile and personal communicationsØ(—) and Commission Directive 96/19/EC of 13 March 1996Ø(Ñ) on full competition, as well as Directive 97/13/EC of 10 April 1997 of the European Parliament and of the Council on a common framework for general authorisations and individual licences in the field (Licensing of Directive) the European Parliament and the Council on InterconÜ nection to ensuring Universal Service and interoperability through application of the Principles of ONPØ(Ó) (the Interconnection Directive) apply to this sector; in Telecommunications with regard telecommunications and Directive 97/33/EC of servicesØ(Ò) (10) Whereas UMTS service providers should be able to enter the market without unnecessary constraints to allow for a dynamic market and a broad competitive service offering; whereas where an authorisation procedure is considered necessary, general authorisations or declarations should be the rule; (11) Whereas pursuant to Community law, in particular Directive 97/13/EC of the European Parliament and the Council and Directive 96/2/EC of the Commission: i) individual licenses should be limited to the operation of UMTS networks, ii) the number of UMTS licenses may only be limited for reasons of demonstrated spectrum capacity, iii) licenses should be made accessible to any organisation and should not be reserved for existing operators of other systems; frequency lack of (12) Whereas conditions to be attached to authorisations should be defined in such a way as to secure CommunityÜwide and panÜEuropean services as well as roaming capabilities through co ordinated introduction; whereas EuropeÜwide roaming will enable industry to meet user and societal needs; whereas the conditions listed in the Annex of the Licensing Directive may be imposed on a UMTS system by a Member State even where no part of that system is located within the territory of that (—) Commission Directive 96/2/EC of 16 January 1996 amending Directive 90/388/EEC with regard to mobile and personal communications, OJ L 20, 26. 1. 1996, p. 59. (Ñ) Commission Directive 96/19/EC of 13 March 1996 amending Directive 90/388/EEC with the implementation of full competition in telecommunications markets, OJ L 74, 22. 3. 1996, p. 13. regard to (˛) OJ L 105, 23. 4. 1997, p. 4. (ˇ) COM(97) 623. (Ò) OJ L 117, 7. 5. 1997, p. 15. (Ó) OJ L 199, 26. 7. 1997, p. 32. 29. 4. 98 EN Official Journal of the European Communities C 131/11 in co operation with ECTRA Member State; whereas national licensing regimes and harmonisation of licensing conditions and procedures among telecommunications authorities should be adopted without delay in the context of for the CEPT the one stopÜ UMTS; whereas shopping procedure provided the Licensing Directive should apply to the granting of individual licenses and for notifications in the case of general authorisations to facilitate the granting of UMTS services authorisations to undertakings in more than one Member State; in particular in (13) Whereas the amount of spectrum made available will have a direct impact on how competitive the marketplace will be; whereas estimated demand should therefore determine the amount of spectrum to be allocated; whereas sufficient spectrum must be allocated and cleared sufficiently in advance to foster a broad competitive offering of mobile multi media services; in is most efficiently (14) Whereas spectrum allocation the the CEPT by the context of pursued European Committee Radiocommunications (ERC); whereas according to CEPT rules, CEPT country members which also include Community Member States, are free to commit themselves to implement ERC decisions; whereas should therefore be ensured that appropriate and timely regulatory measures are taken in the Community to achieve the implementation of ERC decisions if necessary; whereas Member States shall provide the Commission with regular information as to the implementation of ERC measures; whereas compleÜ mentary Community action may be required to ensure implementation of CEPT decisions within Member States; timely the it to 2110Ü2170 MHz and terrestrial UMTS applications, and accommodates UMTS satellite component applications within the bands 1980Ü2010 MHz and 2170Ü2200 MHz; whereas it already appears that additional frequency spectrum capacity will be necessary to meet the demand in the Community and to ensure introduction of UMTS in Europe even before 1 January 2002; whereas sufficient spectrum must be allocated within the bands identified by WARC 92 according to the increasing needs therefore before UMTS services are commercially deployed; whereas additional frequency spectrum may become necessary by 2005 and therefore the 900, 1800 and 1900 MHz bands would also need to be freed or refarmed as far as possible; roaming of (17) Whereas at ITU level the review of spectrum and regulatory issues relating to UMTS and the faciliÜ terminal operation and tation of multimode IMTÜ2000 have been world wide included in the WRC 99 agenda in order to identify additional frequency spectrum to satisfy market demand by 2005Ü2010; whereas therefore European common positions need to be developed and promoted at global level with the participation of all parties interested; (18) Whereas spectrum availability and appropriate pricing, coverage and quality will be essential aspects to the success of UMTS development; whereas any spectrum pricing method should not adversely impact on the competitive structure of the interest, market, guarantee ensuring efficient use of the spectrum as a valuable resource; the public capabilities while roaming respect should (15) Whereas measures adopted by the ERC and ECTRA are, if consistent with Community law, a basis for the use of the relevant frequencies and for the preparation of the criteria for the authorisation of UMTS; whereas sufficient spectrum will be necessary to foster the development of a market with a broad competitive offering of mobile multi media services; whereas the European RadioÜ communications Committee (ERC) has adopted on 30 June 1997 Decision ERC/DEC/(97)07 on the frequency bands for the introduction of Universal Mobile Telecommunications (UMTS) which entered into force by 1 October 1997; Systems (19) Whereas EuropeÜwide roaming of UMTS services is essential to the development of panÜEuropean UMTS services as a basis for the internal market specific for co operation also necessary to provide coverage of less populated areas; among operators may be telecommunications; whereas the Commission (20) Whereas a proposal has been presented on 4 June for a Council and 1997 by European Parliament Directive on connected teleÜ communications equipment and the mutual recogÜ nition of the conformity of equipmentØ(˛) to amend the Council Directive 91/263/EEC of 29 April (16) Whereas this ERC decision has designated the frequency bands 1900Ü1980 MHz, 2010Ü2025 MHz (˛) OJ C 248, 14. 8. 1997, p. 4. C 131/12 EN Official Journal of the European Communities 29. 4. 98 laws in the 1991 on the approximation of the Member States telecommunications concerning terminal equipment, including the mutual recogÜ nition of their conformityØ(˛); whereas appropriate harmonised standards developed by ETSI and recognised under Directive 91/263/EEC will ensure free movement of terminals and will allow the putting the CommunityØ(ˇ); service of UMTS into in (21) Whereas as provided in the Interconnection Directive, interconnection to public telecommuniÜ cations networks and publicly available telecomÜ munications services provided by organisations having significant market power shall follow the principles of non discrimination and transparency; industry (25) Whereas the UMTS aims at a global market and therefore should be placed in a global context on the basis of a coherent plan for the Community; whereas the creation of a common standard in the in Community would help European competing on global markets; whereas compatibility with other standards of the ITU IMTÜ2000 family would facilitate interworking and roaming at global level; whereas the ITU has set the deadline of May 1998 for the adoption of the "IMTÜ2000 Family submitting Concept’, candidates the radio "IMTÜ2000 Family Concept’ of standards and to end 1999 for the adoption of IMTÜ2000 standard final recommendation by ITU; whereas this Family Concept supports a set of air interfaces and of core network standards; whereas a common European UMTS standard should be adopted and proposed as a member of that Family in order to increase the chances of UMTS to be adopted on markets outside Europe; whereas these deadlines therefore need to be met within the Community; to September 1998 for interface the for for (22) Whereas, without roaming prejudice to Community law, organisations providing UMTS competition to networks must have rights and obligations negotiate sharing and agreements with other telecommunications organiÜ sations to ensure seamless CommunityÜwide service coverage; whereas such negotiation needs to occur on the basis of a common, open and internationally competitive air interface standard; infrastructure (23) Whereas urgent and specific action at Community level is required in order to reach co ordinated introduction of UMTS on the basis of common, open and internationally competitive standards, in order to secure CommunityÜwide roaming of future UMTS services at low cost as well as early licensing of UMTS services in the Community in the bands identified by the CEPT; (24) Whereas the Community should build on the success of the current generation of mobile digital technology including GSM both in Europe and in the world taking into consideration interworking between UMTS and second generation systems; whereas there should be no discrimination between GSM operators and new entrants on UMTS markets; (˛) OJ L 128, 23. 5. 1991, p. 1. (ˇ) A consensus agreement has been reached on 29 January 1998 within ETSI in view of the elaboration of a common radio interface standard for UMTS called UTRA. for (26) Whereas while voluntary application of standards remains the gerenal rule, recourse to mandatory standards may be required interfaces and situations where necessary to ensure interoperability and facilitate roaming of mobile networks and services; whereas harmonised standards are adopted by standardisation bodies such as the European Telecommunications Standards (ETSI) which facilitates regulatory action; whereas the proposals for common technical regulations are, as a general rule, drawn up on the basis of harmonised standards and of additional consultations; Institute (27) Whereas in order to allow for effective service competition and innovation, the UMTS standardÜ is isation process necessary for systems development while allowing for service provision differentiation; should be to what limited (28) Whereas common and open European standards are essential for the critical interfaces, in particular the air interface (UMTS Terrestrial Radio Access - UTRA) and for the UMTS core network in order to foster a strong start of UMTS in the Community and to ensure end to end interoperÜ ability in a panÜEuropean environment and open competition for roaming traffic and to avoid market fragmentation in Europe, increased costs of UMTS systems and loss of competitiveness; 29. 4. 98 EN Official Journal of the European Communities C 131/13 (29) Whereas the Commission has granted in 1995 to ETSI a general standardisation mandate related to UMTS pursuant to Council Directive 83/189/EEC of 28 March 1983Ø(˛) and Council Decision 87/95/EEC of 22 December 1986; alia, interconnection, roaming, free movement and use of equipment at global level through multiÜ lateral rules, access to third countries’ networks and markets; whereas these agreements are closely related to market access arrangements; (30) Whereas the ETSI mechanism dealing with intelÜ lectual property rights (IPRs) in the context of standardisation should be followed; whereas ETSI members should make every attempt to unveil intelÜ lectual property rights applicable to UMTS in the world; (31) Whereas adequate support should be provided within the Community R&D programmes with the objective of further developing the technological basis for UMTS; whereas this would involve further research into technical solutions for UMTS such as software radio; (32) Whereas social and societal effects should be taken into account in the transition towards the wireless information society; whereas UMTS development should be co ordinated with related efforts such as the development of a CommunityÜwide information society, support of training on UMTS related techÜ nologies, access for elderly and disabled persons, research on possible hazards of mobile communiÜ cations; (33) Whereas the implementation of UMTS systems and services should take into consideration the needs of potential groups of users working in services of public transport, the environment, etc. ) and pay attention requirements that have already been incorporated into European standards; education, (health, interest to (36) Whereas Community undertakings should fully benefit from international trade agreements such as agreements signed within the World Trade OrganiÜ sation (WTO) and have effective market access in the specific terms and conditions, including national treatment, binding on those countries within the WTO; tariff agreements entered by (37) Whereas UMTS equipment would be covered by international the Community such as the Information Technology Agreement signed in the framework of the World Trade OrganisationØ(ˇ) and the Istanbul Convention on the elimination of customs duties on personal effects and professional equipmentØ(—); to implement (38) Whereas the Community may take all necessary actions international agreements; whereas the Commission may start further multiÜ lateral and bilateral negotiations on aspects of UMTS on the basis of specific mandates from the Council, which should make it possible to conclude balanced agreements ensuring further effective access for Community operators in third countries as well as mutual recognition arrangements for global circulation of terminals; (39) Whereas the results of the international consulÜ in the situation may tations and other changes require this Decision be amended or other appropriate measures be undertaken; taken pursuant that decisions to (34) Whereas market access and free circulation of UMTS systems and terminals to the global market should be promoted; whereas interoperability of UMTS services at Community and global levels should be encouraged among the industry, stanÜ dardisation bodies and Member States; (35) Whereas the need to ensure the introduction of interoperable UMTS at both panÜEuropean and global levels may require the conclusion of a number of agreements with third countries on, inter (40) Whereas in the implementation of this Decision, the Commission should be assisted by the Licensing Committee established by Directive 97/13/EC; whereas the Committee should act as a consultative committee according to the procedure laid down in Article 16 or as a management committee type IIØb according to the procedure laid down in Article 17 of Directive 97/13/EC; (ˇ) Agreement on Trade in Information Technology Products, Council Decision 97/359/EC of 24. 3. 1997. (—) Council Decision 93/329/EEC of 15. 3. 1993, OJ L 130 of (˛) OJ L 109, 26. 4. 1983, p. 8. 27. 5. 1993, p. 1. C 131/14 EN Official Journal of the European Communities 29. 4. 98 HAVE ADOPTED THIS DECISION: Article 1 Purpose The aim of this Decision shall be to facilitate the rapid introduction of compatible UMTS networks and services in the Community on the basis of internal market prinÜ ciples and in accordance with commercial demand by means of co ordination of national licensing regimes. 4. Ú In the case of incompatibility of potential systems and if it is established in accordance with the procedure laid down in Article 17 of Directive 97/13/EC and in conjunction with CEPT that it is necessary to limit the number of UMTS services authorisations, Member States shall coordinate their authorisation procedures with a view to authorising compatible UMTS services in the Community. Article 4 Roaming Rights and Obligations Article 2 Definition For the purpose of this Decision, Universal Mobile TeleÜ communications System (UMTS) shall mean a third generation mobile communications system capable of innovative wireless multimedia providing services, beyond second generation systems such as GSM, and combining the use of terrestrial and satellite components. It shall include the characteristics referred to under Annex I. the capability of current in particular shall ensure 1. Ú Member States that organisations providing UMTS networks have rights and obligations to negotiate roaming agreements with other organisations providing UMTS seamless CommunityÜwide service coverage. networks ensure to 2. Ú Member States may where necessary take action, including agreements between operators in accordance with Community law, to ensure the coverage of less populated areas. the promotion of Article 3 CoÜordinated authorisation Article 5 CoÜoperation with CEPT 1. Ú Member States shall take all actions necessary in order to allow the harmonised provision of the UMTS services on their territory by 1 January 2002 at the latest and in particular shall establish an authorisation system for UMTS no later than 1 January 2000. 2. Ú When preparing and applying their authorisation systems Member States shall ensure - that the provision of UMTS services is organised in frequency bands which are harmonised by CEPT in accordance with the procedure in Article 5, laid down - and pursuant to European standards developed by in particular a ETSI where available, common, open competitive and air interface standard. Member States shall ensure that the Community. including internationally throughout roaming support licenses 3. Ú When authorising UMTS services, Member States shall ensure that the specific characteristics in Annex I are implemented. listed 16 down Article II, give CEPT/ERC 1. Ú The Commission shall, in accordance with the of laid procedure in Directive 97/13/EC pursuant to the timetable set out in Annex and CEPT/ECTRA mandates to harmonise frequency use and the conditions attached to authorisations for UMTS networks and the services without prejudice Licensing Directive regarding individual licences. Those mandates shall define the tasks to be performed and lay down a timetable. the provisions of to 2. Ú On the completion of the mandates, it shall be decided in accordance with the procedure laid down in Article 17 of Directive 97/13/EC whether the result of the work done pursuant to the mandates shall be made applicable in the Community. 3. Ú Notwithstanding Article 5(2), if the Commission or any Member State considers that work done pursuant to the mandate given to the CEPT/ECTRA or CEPT/ERC is not processing satisfactorily having regard to the timetable laid down, it may refer the matter to the Licensing Committee, which shall act in accordance with the of down procedure Directive 97/13/EC. in Article laid 17 29. 4. 98 EN Official Journal of the European Communities C 131/15 Article 6 CoÜoperation with ETSI Article 10 Notification The Commission shall take all necessary measures where appropriate in co operation with ETSI to promote a the provision of standard common and open in compatible UMTS services accordance with market into account the need to present a common standard to the International Telecommunications Union (ITU) as an option for the world wide ITU IMTÜ2000 standard. throughout Europe, requirements, taking for Article 7 The Committee In the implementation of this Decision, the Commission shall be assisted by the Licensing Committee set up by Article 14 of Directive 97/13/EC. Article 8 Exchange of Information the shall 1. Ú The Commission committee of the outcome of consultations with the representatives of telecommunications organisations, users, consumers, manufacturers, services providers and trade unions. regularly inform taking into account 2. Ú The committee shall, the Community’s telecommunications policy, encourage the exchange of information between the Member States and the Commission on the situation and the development of regulatory activities the authorisation of regarding UMTS services. Member States information as verifying the implementation of this Decision. it may require for shall give the Commission such the purpose of Article 11 Confidentiality 1. Ú Neither the Commission nor the national reguÜ latory authorities shall disclose any information covered by the obligation of professional secrecy, in particular information about undertakings, their business relations or their cost components. 2. Ú Paragraph 1 shall be without prejudice to the right of national regulatory authorities to undertake disclosure where it is essential for the purposes of fulfilling their duties, shall be proportionate and shall have regard to the legitimate interests of the undertakings in the protection of their business secrets. such disclosure in which case 3. Ú Paragraph 1 shall not preclude the publication of information on licensing conditions which does not include information of a confidential nature. Article 12 Duration This Decision shall enter into force on the 20th day after its publication in the Official Journal of the European Communities and shall remain in force for four years after that date. Article 13 Report Article 9 International Aspects The Commission shall keep developments in the field of UMTS under review and report the European Parliament and to the Council on the effectiveness of action taken pursuant to this Decision after two years. to 1. Ú The Commission shall take all necessary measures to faciliate the introduction of UMTS services in third countries and the free circulation of UMTS equipment. Article 14 Implementation this purpose, implementation of the Commission shall make 2. Ú For proposals to take all necessary actions to seek the effective international agreements applicable to UMTS, and shall, in particular and where necessary, submit proposals to the Council for approÜ priate mandates for the negotiation of bilateral and multilateral agreements with third countries and interÜ national organisations. The Council shall decide by qualified majority. Member States shall take all measures necessary, by law or administrative action, for the measures provided for in, or agreed on pursuant to this Decision to be impleÜ mented. Article 15 Addressees This Decision is addressed to the Member States. C 131/16 EN Official Journal of the European Communities 29. 4. 98 ANNEX I CHARACTERISTICS OF UMTS Services 1. Multimedia capability with wide area mobility 2. Efficient access to the Internet, Intranets and other Internet Protocol (I/P) based services 3. High quality speech commensurate which that of fixed networks 4. Service portability across distinct UMTS environments 5. Indoor, outdoor and far outdoor operation of GSM/UMTS in one seamless environment including full roaming with GSM as well as between the terrestrial and satellite components of UMTS networks Terminals - Dual mode/band GSM/UMTS terminals, where appropriate - Dual mode terrestrial/satellite UMTS terminals, where appropriate Radio Access Networks - New air interface for access to all services including to packet data based services - Good overall spectral efficiency Core network - Evolution from GSM system family; call control mobility management including full roaming functionality based on core GSM network standard - Mobile/fixed convergence elements ANNEX II TIMETABLE Mandates to CEPT on further spectrum allocation including availability of additional spectrum beyond WARCØ92 FPLMTS bands and freeing or refarming of the 900, 1800, 1900 MHz bands for UMTS February 1999 Mandates to CEPT for harmonisation of conditions attached to authorisations February 1999 OneÜstop shopping procedure ready for services where necessary End 1999