15 Frequency bands used for mobile communications
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16155/08
COM(08) 762
| Draft Directive amending Council Directive 87/372/EEC (the "GSM Directive") on the frequency bands to be reserved for the coordinated introduction of public pan-European cellular digital land-based mobile communications in the Community
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| Legal base | Article 95 EC; QMV; co-decision
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| Document originated | 19 November 2008
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| Deposited in Parliament | 28 November 2008
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| Department | Business, Enterprise and Regulatory Reform
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| Basis of consideration | EM of 12 December 2008
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| Previous Committee Report | None; but see (28848) 12273/07: HC 16-xxiii (2007-08), chapter 10 (4 June 2008) and HC41-xxxiv (2006-07), chapter 3 (10 October 2007)
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| To be discussed in Council | To be determined
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| Committee's assessment | Politically important
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| Committee's decision | Cleared, but further information requested
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Background
15.1 The
development of radio spectrum policy in the Community is based
on Decision No. 676/2002/EC of 7 March 2002 on a regulatory framework
for radio spectrum policy in the European Community — the
Radio Spectrum Decision — which forms part of the overall
legislative package for electronic communications introduced in
2003.[62] That package
aimed at a lighter, but comprehensive and technology-neutral,
framework, based on competition law principles, streamlining the
entire regulatory process and rendering it as transparent as possible.
It adapted the existing rules to take account of the convergence
between telecommunications, information technology and media in
evolving markets, where the same services can be delivered over
a variety of platforms and received via a range of different terminals.
Consultation and cooperation are key features, in the light of
the increased flexibility given to National Regulatory Authorities
(NRAs) to choose the most appropriate tools for dealing with regulatory
concerns as they arise.
15.2 The framework also established a number of committees
and policy groups to manage and implement the new system:
- Communications Committee:
which advises on implementation issues;
- European Regulators Group:
to encourage cooperation and coordination between NRAs and the
Commission, in order to promote the development of the internal
market for electronic communications networks and services and
consistent application, in all Member States, of the provisions
set out in the Directives;
- Radio Spectrum Policy Group:
to enable Member States, the Commission and stakeholders to coordinate
the use of radio spectrum; and
- Radio Spectrum Committee:
to deal with technical issues around harmonisation of radio frequency
allocation across Europe.
The GSM Directive and its proposed successor
15.3 Global System for Mobile communications (GSM:
originally from Groupe Spécial Mobile) is the most popular
standard for mobile phones in the world. 3GSM is the generic term
used for the next, or third, generation of mobile communications
services — new systems that will provide enhanced services
compared to those currently available — moving from voice,
text and data to video on demand, high speed multimedia and internet
and "high end" service capabilities, with substantially
enhanced capacity, quality and data rates: "3GSM services
will also include concurrent usage of multiple services and bridge
the gap between wireless and internet/computing".[63]
15.4 The 1987 GSM Directive[64]
requires Member States to reserve the whole 890-915 MHz and 935-960
MHz frequencies — known as the 900 MHz band — for
GSM. The Commission noted that this Directive had helped make
GSM a success in Europe but was now out of date, as it prevented
more advanced, next generation wireless technologies from using
the spectrum; together with the repeal of the GSM Directive, a
new Decision was proposed that would allow new technologies to
coexist with GSM in the 900 MHz, while preserving the continued
operation of GSM.
The draft Directive
15.5 The Committee's previous consideration is set
out in the earlier Reports referred to above.[65]
Originally, it was proposed to repeal the GSM Directive; the revised
proposal, however, is for the Directive to be amended.
The Government's view
15.6 In his Explanatory Memorandum of 12 December
2008, the Minister for Communications, Technology and Broadcasting
at the Department for Business, Enterprise and Regulatory Reform
(Mr Stephen Carter ) explains that, in conjunction with the adoption
of this amendment, appropriate measures would be needed to safeguard
the GSM services currently using the bands; and that, accordingly,
the technical conditions to allow for the coexistence of new systems
in the 900 MHz band, alongside GSM systems, will need to be legally
established. He continues as follows:
"In line with the policy of better regulation,
the European Parliament and the European Commission jointly provide
the legal means for adopting such harmonising measures. It foresees
a mechanism allowing rapid reactions to technical evolution and
the adoption of binding technical harmonisation measures at EU
level in the form of a joint European Parliament and Commission
Directive. This will ensure legal certainty for the harmonised
use of the band that enables the co-existence, in this
band, of GSM together with other systems including the Universal
Mobile Telecommunications System known as 'UMTS'. These technical
conditions are based on work undertaken by the European Conference
of Postal and Telecommunications Administrations (the CEPT).[66]
A draft Decision has been drawn up allowing use of UMTS services
within the 900MHz band in a way that safeguards the existing use
of GSM services."
15.7 The Minister welcomes this proposed amendment
to the Directive which, along with a proposed Decision by the
Radio Spectrum Committee (designating use of the 900MHz band for
additional services), will, he says, ensure optimum use of the
band. The Minister says that amending rather than repealing the
GSM directive will "allow them to designate this band for
3G and other services as well as GSM services", and that
"the Commission have also taken note of the wishes of the
European Parliament who wanted to be involved in discussing these
important changes to the directive."
15.8 With regard to the UK, the Minister says:
"Ofcom are already considering this approach
as this may allow more efficient use of the 900MHz band and economic
opportunities for consumers. ….. The Commission proposal
is also in line with the UK's general approach of ushering in
a more flexible and market-based approach towards spectrum management.
"Ofcom's proposals to secure the full benefits
of 2G liberalisation and offer wider access to liberalised 2G
spectrum will enable significant improvements to 3G networks.
900MHz spectrum offers more favourable propagation characteristics
than the spectrum that is currently used by 3G networks, and has
the potential to extend wireless broadband into less populated
rural areas."
CONSULTATION
15.9 The Minister says that the consultations carried
out by the ECC/CEPT for the Commission have "shown that there
is extensive support from the mobile industry for an opening of
the frequency bands formerly reserved for GSM systems with clear
benefits for the industry and consumers." He notes that,
while some users in adjacent frequency bands initially raised
concerns about possible interference, "these concerns were
dealt with in the relevant CEPT Report 96 and through the explicit
protection provided to GSM by Member States agreeing to amend
the GSM Directive." The Minster continues as follows:
"As foreseen in the Radio Spectrum Decision,
the Commission issued a Mandate to CEPT, which produced a report
which the Commission, assisted by the Radio Spectrum Committee,
has examined. The opinions of users in neighbouring bands were
also taken into consideration. On the basis of Article 4.4 of
the Radio Spectrum Decision, the Commission has also considered
it necessary to ensure that new systems give appropriate protection
to existing systems in adjacent bands, as well as eventually taking
into account prospective aeronautical communications systems operating
above 960 MHz: This supports European transport policy objectives."
15.10 In the UK, the Minister says that Ofcom's consultation
document of Autumn 2007 discussed various options for how the
spectrum band (900MHz) should be made available for 3G use and
set out proposals for the way forward in the UK: "The responses
to this consultation expressed a wide range of differing views
about the appropriate method. Ofcom is currently preparing a further
consultation on this issue."
IMPACT ASSESSMENT
15.11 The Minister says that a full assessment of
the impact of these proposals in the UK has not yet been prepared.
He continues as follows:
"Since this proposal is a market opening
de-regulatory measure to remove existing restrictions on business,
there will be no cost or burdens on business. Ofcom is preparing
one in the context of their further consultation: that will relate
to the specific measures under consideration by Ofcom to implement
their plan to liberalise spectrum use successfully in the UK.
"The European
Commission expects that there will be a range of benefits but
has not monetised them. The Commission expects citizens to benefit
from simplified ranges of advanced mobile communication services
that can overcome the geographical digital divide that especially
affects rural communities. New high-performing wireless data and
multimedia services (e.g. internet browsing and mobile TV) need
access networks such as 3G mobile networks, using technology that
offer higher data rates than GSM.
"Consumers
should benefit both from competitive prices and significant improvements
to 3G networks, e.g.: provision of extended 3G mobile broadband
services with good indoor coverage in urban areas and improved
coverage in rural areas.
"Also,
the measure would contribute towards economic development, have
a positive impact on the environment and reduce the need for mobile
base stations. It will open new revenue streams to operators and
increase the economies of scale for network infrastructure equipment
(with new generations of terminals)."
TIMETABLE
15.12 The Minister notes that moving from repealing
to amending the Directive "means that the European Parliament
has the option to vote on whether there should be other services
in the band", and that the expectation is that "the
European Parliament will thereby take a stronger role in the spectrum
policy-making process." He also notes that the Commission
"will make regular progress reports to CEPT and to its Radio
Spectrum Policy Group and will conduct a review to decide if any
follow-up actions are required."
15.13 The Minister goes on to explain that:
"the adopted directive will be discussed in
Council and in the European Parliament with an objective of securing
an agreement before the Parliament dissolves for elections in
June 2009. This will require a first reading agreement in the
Parliament before May. Thus agreement in Council (on a "general
approach") will be scheduled for early in the New Year."
Conclusion
15.14 When we first considered the original draft
Directive in October 2007, we concluded that it appeared appropriate.
There is nothing in the proposal instead to amend the existing
Directive in the way described in the Minister's Explanatory Memorandum
to change that view. Accordingly, we see no need to keep the document
under scrutiny, and are content for the Minister to join in a
general approach in the New Year on the basis outlined.
15.15 We clear it on the understanding, however,
that the Minister will write to us about the outcome of the European
Parliament's consideration of the proposal and any other significant
developments.
62 The package also includes 5 Directives:
Directive 2002/21/EC, the Framework
Directive, contains the rules and principles which apply horizontally
to all the activities covered by the other, specific, directives.
It focuses particularly on the responsibilities and powers of
the NRAs, the foundation of the new regulatory system.
Directive 2002/20/EC, the Authorisation
Directive, is intended to reduce the regulatory burdens on market
access and to ensure more consistent treatment of operators and
different technologies.
Directive 2002/19/EC, the Access and
Interconnection Directive, aims to ensure that relations between
operators are left as far as possible to competitive market forces,
while giving flexible powers to NRAs to intervene where necessary.
Directive 2002/22/EC, the Universal
Service Directive, provides NRAs with the necessary powers to
protect users' interests in situations where competition and market
forces are the most effective means to satisfy user needs generally.
Directive 2002/58/EC, the E-Privacy
Directive, the main elements of which are controls on sending
unsolicited direct marketing communications and rules on the use
and retention of communications traffic and location data. Back
63
See http://www.gsmworld.com/technology/faq.shtml for further details
of 3GSM. Back
64
Directive 87/372/EEC of 23 June 1987; OJ L 196, 17.7.1987, p.
85. Back
65
See headnote: (28848) 12273/07: HC 16-xxiii (2007-08), chapter
10 (4 June 2008) and HC 41-xxxiv (2006-07), chapter 3 (10 October
2007). Back
66
Established in 1959, the 48-member European Conference of Postal
and Telecommunications Administrations - CEPT - provides a European
forum for discussions on sovereign and regulatory issues in the
field of post and telecommunications issues; the Electronic Communications
Committee deals with both radio and telecommunications. See http://www.cept.org/
for full information. Back
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