Seventh Report of Session 2013-14 - European Scrutiny Committee Contents


10   Trans-European Telecommunications Network

(34963)

10201/13

COM(13) 329

Amended draft Regulation on guidelines for trans-European telecommunications networks and repealing Decision No. 1336/97/EC

Legal baseArticle 172 TFEU; co-decision; QMV
Document originated28 May 2013
Deposited in Parliament31 May 2013
DepartmentCulture, Media and Sport
Basis of considerationEM of 13 June 2013
Previous Committee ReportNone
Discussion in CouncilNot known
Committee's assessmentPolitically important
Committee's decisionCleared

Background

10.1  Title XVI TFEU, continuing earlier treaty provisions, allows for the development of Trans-European Networks (TENs) in the areas of transport, telecommunications and energy aimed at promoting the interconnection and interoperability of national networks and access to such networks. The EU, like the Community before it, has a number of policy and financial instruments in support of those aims.

10.2  The Trans-European Telecommunications Network (eTEN) supports the establishment and deployment of interoperable services and applications of public interest. The guidelines for this TEN are set in Decision No. 1336/97/EC. The last programme ended in December 2006, with some of its projects continuing until 2010. From 2007 on the Commission supports the electronic services in the areas of public interest through the ICT Policy Support Programme,[47] which will run until the end of this year and which is a component of the Competitiveness and Innovation Framework Programme.[48]

10.3  In its June 2011 proposals for the Multiannual Financial Framework (MFF) for the period 2014-20[49] the Commission proposed the creation of a new integrated instrument for investing in EU infrastructure priorities in transport, energy and telecommunications — a "Connecting Europe Facility". In October 2011 it published a draft Regulation to establish this Connecting Europe Facility. This proposal would bring together the three TENs infrastructure funding programmes into one package, with a budget for the eTEN of €9.2 billion (£8 billion).[50] At the same time a draft Regulation was published to repeal the existing guidelines for the eTen and set new ones. It aimed at enhancing capacity for civic participation at the EU level and delivering on the global aim to promote civic participation and contribute to increasing awareness and understanding about the EU and its impact at local level in various areas of everyday life.[51]

The document

10.4  This amended draft Regulation is to replace the October 2011 proposal about new guidelines for the eTEN. The amendment is in response to the reduced funding available as a result of the MFF negotiations, which have resulted in a reduction from the original €9.2 billion 2014-20 budget proposed for the eTEN to €1 billion (£0.8 billion). The amended proposal aims to focus the Connecting Europe Facility on a reduced number of cross-border digital service infrastructure projects, with a limited contribution to broadband via financial instruments, so as to leverage private investment as well as public sources other than the Connecting Europe Facility.

10.5  The guidelines identify projects of common interest designed to contribute to improving the competitiveness of the EU economy, including SMEs, to promoting the interconnection and interoperability of national, regional, and local networks and to support for the development of a Digital Single Market. They aim to remove bottlenecks which hinder the completion of the Digital Single Market by providing connectivity to the network and cross-border access to an infrastructure of public digital services, including for example, eHealth, eIdentity, eProcurement and their cross-border interoperability. The problem of bottlenecks is to be addressed through procurement and direct grant schemes, mostly with full funding of platforms at EU level, given the absence of natural owners of a EU interoperable service infrastructure. Priority is to be given to 'building blocks', a newly introduced concept referring to 'reusable digital service infrastructures' which provide essential elements for the delivery of a range of digital services, such as public procurement, online dispute resolution, or access to digital content.

10.6  For broadband networks, the amount of resources available will be small. Public support will need to come primarily from other sources than the Connecting Europe Facility, in particular from national sources and EU Structural and Investment Funds. In setting a framework enabling wider contributions from business and institutional players, the proposal seeks to multiply the level of contribution to broadband projects of common interest beyond the funding enabled through the proposed Regulation.

10.7  The draft Regulation contains ten articles and an annex:

  • Article 1 covers the subject matter and scope;
  • Article 2 defines the terms used;
  • Article 3 sets out the objectives including support for economic growth, completion of the Digital Single Market and improvement to quality of life through the promotion of interconnection and interoperability;
  • Article 4 defines the characteristics of projects of common interest, chiefly centred on interoperability and the provision of efficient investment vehicles;
  • Article 5 sets out methods of intervention, primarily by the EU, with generic services implemented by the parties connecting to the relevant core service platform;
  • Article 6 sets out the eligibility criteria and priorities for funding, essentially contributing to support of the internal market and making a significant contribution to the targets of the Digital Agenda for Europe;
  • Article 7 covers cooperation with third countries and international organisations;
  • Article 8 covers exchange of information, monitoring and reporting;
  • Article 9 covers repeal of Decision No. 1336/97/EC, that is the present eTEN guidelines;
  • Article 10 confirms that the date the Regulation will enter into force will be 1 January 2014; and
  • the Annex describes in greater detail the parameters for projects of common interest.

The Government's view

10.8  The Minister for Culture, Communications and Creative Industries, Department for Culture, Media and Sport (Mr Edward Vaizey), says that:

  • the amended draft Regulation is broadly concordant with UK policy objectives for the creation of a Digital Single Market;
  • it is intended to help deliver the Digital Agenda for Europe, which includes aims for universal coverage across the EU of 30 Mbps broadband and subscriptions by 50% of households to 100 Mbps by 2020;
  • the Government is very supportive of these targets;
  • it supports the general direction of projects of common interest designed to develop a Digital Single Market with interoperable online services for businesses, citizens and governments;
  • it also supports the use of financial instruments and grants to stimulate investments by private parties and public authorities at local level for projects which would have difficulty in attracting sufficient private investment by themselves;
  • the newly introduced concept of 'building blocks' for provision of the essential elements for the delivery of digital services is an interesting one, which the Government is happy to support in principle;
  • the Commission has accepted that the scope for intervention at EU level regarding broadband networks is (now) small in light of the budgetary constraints resulting from the MFF negotiations;
  • such realism is to be applauded, as is the rationale for public intervention only taking place in case of market failure or 'sub-optimal investment' situations;
  • the original draft Regulation proposed adoption of Delegated Acts;
  • this proposal was withdrawn in the face of Member State opposition, including from the UK;
  • the Commission's Explanatory Memorandum for the present proposal says that "the necessary programme adjustments will be made by Implementing Act";
  • the power to introduce annual work programmes by Implementing Act is found in the related proposed Regulation for the Connecting Europe Facility and provides for implementing acts to be subject to the Examination Procedure in Article 5 of Regulation (EU) No. 182/2011; and
  • the new will not entail any additional cost for the EU budget to that already agreed in relation to the MFF settlement for the Connecting Europe Facility.

Conclusion

10.9  Now that the budgetary provision for eTEN during the period 2014-20 has been scaled back we are content to clear this document.





47   See http://ec.europa.eu/cip/ict-psp/index_en.htm. Back

48   See http://ec.europa.eu/cip/. Back

49   (32986) 12478/11 + ADDs 1-2 (32987) 12474/11 (32988) 12480/11 (32989) 12483/11 (32994) 12475/11 + ADDs 1-3 (32998) 12484/11: see HC 428-xxxv (2010-12), chapter 1 (7 September 2011) and HC Deb, 8 November 2011, cols. 170-195. Back

50   (33302) 16176/11 + ADDs1-2: see HC 428-xliii (2010-12), chapter 2 (7 December 2011) and HC Deb, 19 January 2012, cols. 909-938. Back

51   (33292) 16006/11 + ADDs 1-2: see HC 428-xliii (2010-12), chapter 2 (7 December 2011) and HC Deb, 19 January 2012, cols. 909-938. Back


 
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