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 base | Article 172 TFEU; co-decision; QMV
|
Document originated | 28 May 2013
|
Deposited in Parliament | 31 May 2013
|
Department | Culture, Media and Sport
|
Basis of consideration | EM of 13 June 2013
|
Previous Committee Report | None
|
Discussion in Council | Not known
|
Committee's assessment | Politically important
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Committee's decision | Cleared
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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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