TELECOMS UNIVERSAL SERVICE AND USERS'
RIGHTS
(21566)
10963/00
COM(00) 392
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Draft Directive of the European Parliament and of the Council on
universal service and users' rights relating to electronic
communications networks and services.
|
| Legal base:
| Article 95 EC; co-decision; qualified majority voting
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| |
| Document originated:
| 12 July 2000 |
| Forwarded to the Council:
| 28 August 2000 |
| Deposited in Parliament:
| 15 September 2000 |
| Department: |
Trade and Industry |
| Basis of consideration:
| EM of 10 October 2000 |
| Previous Committee Report:
| None |
| To be discussed in Council:
| No date set |
| Committee's assessment:
| Politically important |
| Committee's decision:
| Not cleared; awaiting further information on progress
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Background
16.1 This draft Directive is one of seven
proposals for legislation that will form the new regulatory framework
for electronic communications networks and services. They were
anticipated in the Commission Communication on the results of
the public consultation on the 1999 Communications Review, which
the Committee considered on 24 May and 19 July[55]
and which was debated in European Standing Committee C on 16 February
2000[56].
16.2 The other six proposals are also considered
today. They are listed in the paragraph on the draft Directive
on a common regulatory framework for electronic communications
networks and services[57].
16.3 A further proposal, the draft Council
Regulation on unbundled access to the local loop[58],
was considered and cleared on 25 October and 1 November. It will
complement the existing telecoms framework.
The draft Directive
16.4 The proposed Directive adapts and consolidates
existing legislation on universal service and users' rights, where
necessary updating it to take account of technological and market
developments. More specifically, it aims:
— to adapt and
modernise existing measures on universal service so as to define
the scope of this service, the rights of users and the measures
for compensating providers of the service without distorting competition;
— to create a process for reviewing the
scope of universal service obligations;
— to lay down specific users' and consumers'
rights where necessary;
— to carry forward current measures on,
and ensure the availability of, leased lines in the EU until competition
in these services develops;
— to allow National Regulatory Authorities
(NRAs) to take measures on behalf of users and consumers; and
— to underpin industry's efforts to ensure
interoperability of consumer digital television equipment.
16.5 The main provisions can be summarised
as follows:
— Universal Service Obligations —
Chapter 2
16.6 This chapter deals with the guaranteed
scope of universal service obligations and related issues.
16.7 The text states that the definitions
given in the draft Framework Directive50 apply. On
universal service the definition in that draft reads:
"universal service
means a set of services, defined in Directive [on universal service
and users' rights relating to electronic communications networks
and services], of specified quality which is available to all
users regardless of their geographical location and, in the light
of specific national conditions, at an affordable price;"
16.8 The draft of this Directive adds further
definitions. It proposes that the current definition of universal
service should be maintained, so that it continues to apply to
voice telephony, fax and data transmission, but that the text
should clarify that access to data communications, such as the
internet via the public telephone network from a fixed location,
is included. The scope of universal service would be reviewed
periodically. Member States would designate operators with universal
service obligations and assess the net costs, if any, of these
obligations, for the purpose of establishing a recovery mechanism.
Articles 13 and 14 set the framework for NRAs to compensate operators
with universal service obligations.
— Users' and Consumers' Interests —
Chapter 3
16.9 The Articles in this chapter would
consolidate and develop the measures on specific users' and consumers'
interests which, according to the Minister for Small Business
and E-Commerce at the Department of Trade and Industry (Ms Patricia
Hewitt) in her Explanatory Memorandum, are covered by:
— the Voice Telephony
Directive 98/10/EC, on retail tariff regulation including cost
orientation, contracts, transparency and publication of information,
quality of service, directories, and provision of additional facilities;
— the Single European Emergency call number
Decision 91/396/EEC which provides for citizens to be adequately
informed about the number — '112';
— the international Access Code Decision
92/264/EEC; and
— the Numbering Directive 98/61/EC.
16.10 It would also provide for interoperability
of consumer digital television equipment, and for Member States
to impose on companies under their jurisdiction "must carry"
obligations for the transmission of specified radio and television
broadcasts;
— Mandatory Services and Leased Lines —
Chapter 4
16.11 The existing requirement for leased
lines services under the Leased Lines Directive 97/51/EEC would
remain, but be progressively removed once NRAs have determined
that there is effective competition. Member States would be able
to decide to make additional services available, outside the scope
of universal service, as long as no compensation mechanisms were
imposed.
— Final provisions — Chapter 5
16.12 This Chapter would provide for consultation
by NRAs of interested parties and for a dispute resolution procedure.
It would also provide for the annexes to the Directive to be adapted,
in the light of technological developments, by the Communications
Committee established by the Framework Directive.
The Government's view
16.13 The Minister comments:
"In the UK, universal
service provision is currently being reviewed by OFTEL and the
case for increasing the level is being examined. OFTEL's initial
view, subject to the outcome of consultation, is that, while it
supports the goal of rolling out higher bandwidth communications
networks, high-bandwidth services do not at present meet the primary
test for consideration as part of the USO (Universal Service Obligation)
requirement, because they are not yet services used by the majority,
but that the situation needs to be kept under review. The Government
supports providing for adequate data speeds to allow internet
access, but agrees with OFTEL and the Commission that extension
of universal service to cover new areas (e.g. broadband access),
still at an early stage of development, could distort competition.
The Government therefore welcomes the Commission's intention to
ensure the availability of a basic level of universal services
while minimising market distortions.
"The Government welcomes the Commission's overall
approach and endorses the Commission's view that funding issues
should be kept under review and decisions to establish funding
schemes should be fully justified. The Government therefore strongly
agrees that where Member States choose to extend universal service
at a national level, as provided for by the proposal, this should
not be financed through a compensatory industry fund."
Timetable
16.14 The Minister says that the proposal
is unlikely to be discussed during the French Presidency and that,
therefore, a Common Position is not likely to be reached until
some time in the Swedish Presidency at the earliest.
Conclusion
16.15 The Minister does not point to
any particular difficulties with this text. Nevertheless, as she
says that a Common Position is not likely to be reached on it
for many months, we assume that she expects changes to be made
in the Working Group. We ask her to keep us informed of progress,
and to provide us with a later text if the one considered here
is amended substantially, before the proposal is put to a Council
with a view to reaching agreement on a Common Position.
16.16 Meanwhile, we shall not clear this
document.
55 (21189) 8330/00; see HC 23-xix (1999-2000), paragraph
7 (24 May 2000) and HC 23-xxv (1999-2000), paragraph 8 (19 July
2000). Back
56 Official
Report, European Standing
Committee C, 16 February 2000. Back
57 (21562)10962/00;
see paragraph 15 of this Report. Back
58 (21563)
10964/00; see HC 23-xxvii (1999-2000), paragraph 23 (25 October
2000) and (21695) - ; see HC 23-xxviii (1999-2000), paragraph
32 (1 November 2000). Back
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