Considerations on COM(2013)329 - Guidelines for trans-European telecommunications networks

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dossier COM(2013)329 - Guidelines for trans-European telecommunications networks.
document COM(2013)329 EN
date May 28, 2013
 
(1) Telecommunications networks and services are increasingly becoming internet-based infrastructures, with broadband networks and digital services closely interrelated. The internet is becoming the dominant platform for communication, services, and doing business. Therefore, the trans-European availability of fast Internet access and digital services in the public interest is essential for economic growth and the Single Market.

(2) On 17 June 2010, the European Council endorsed the Digital Agenda for Europe[8] which aims to chart a course to maximise the social and economic potential of information and communication technologies. It seeks to stimulate supply and demand of competitive high speed internet infrastructure and internet-based digital services in view to advance towards a true Digital Single Market, which is essential for smart, sustainable and inclusive growth.

(3) Regulation (EU) No […/…] of the European Parliament and of the Council of […] establishing the Connecting Europe Facility (CEF)[9] determines the conditions, methods and procedures for providing Union financial assistance to trans-European networks in transport, energy and digital communication. Given that there are similar challenges and opportunities in the sectors covered by the CEF Regulation, there is important scope for exploiting synergies, including by combining CEF funding with other sources of funding.

(4) A large number of cross-border digital services, implementing exchanges between European public administrations in support of EU policies are a reality. When providing new solutions, it is important to capitalise on existing solutions implemented in the context of other European initiatives, avoid duplication of work, and ensure coordination and alignment of approaches and solutions across initiatives and policies, such as for instance the ISA programme, the Fiscalis programme and Horizon 2020. Similarly, it is important that solutions comply with agreed standards, specifications and orientations, such as the European Interoperability Framework for European public services (EIF)[10].

(5) Large scale pilots between Member States and co-financed by the Competitiveness and Innovation Programme such as PEPPOL, STORK, epSOS, eCODEX or SPOCS have validated key cross border digital services in the internal market, based on common building blocks. These have already reached or are in the near future reaching the maturity level required for deployment. Existing projects of common interest have already demonstrated the clear added value of action at European level, such as in the fields of cultural heritage (Europeana), child protection (Safer Internet), social security (EESSI), while others such as in the field of consumer protection (ODR) have been proposed.

(6) Digital service infrastructures implemented conforming to the Decision 922/2009/EC of the European Parliament and of the Council of 16 September 2009 on interoperability solutions for European public administrations[11] will facilitate the electronic cross-border and cross-sector interaction between European public administrations. This, in turn, will enable the provision of essential services in, inter alia, areas such as electronic identification and procurement, cross-border interconnection of business registers, interoperable electronic cross-border health services, as well as cross-border cooperation on cyber security, thereby contributing to the Digital Single Market. Such interaction between administrations will be achieved through the creation and/or enhancement of interoperable core service platforms, built on existing common building blocks and/or providing additional building blocks essential for the development of other core service platforms, and related generic services linking national infrastructures to core service platforms to deliver cross border digital services.

(7) With regard to digital service infrastructures, building blocks shall take priority over other digital service infrastructures, since the former are a pre-condition for the later. Digital service infrastructures should, inter alia, create European added value and meet proven needs. They should be sufficiently mature for deployment, technically as well as operationally as proven in particular through successful piloting. They should be based on a concrete sustainability plan to ensure the long-term operation of core service platforms beyond the CEF. Financial assistance under this Regulation should therefore wherever possible be phased out over time and funding from sources other than the CEF should be mobilised.

(8) Digital service infrastructures that are necessary to meet legal obligations under EU law and/or are developing or providing building blocks, with a potential high impact on the development of pan-European public services, should be prioritised for funding, so as to support multiple digital service infrastructures and over time gradually build up a European interoperability ecosystem. In this context, legal obligations mean specific provisions requiring either developing or using digital service infrastructures, or requiring results which can only be achieved through European digital service infrastructures.

(9) Member States should encourage local and regional authorities to be fully and effectively involved in the governance of digital service infrastructures, and ensure that projects of common interest relating to cross-border delivery of eGovernment services take into account the EIF recommendations.

(10) In its resolution of 6 July 2011 on European Broadband: investing in digitally driven growth[12], the European Parliament emphasised that broadband services are key to the competitiveness of Union industry and greatly contribute to Union economic growth, social cohesion and the creation of quality employment.

(11) The Digital Agenda for Europe stipulates that by 2020 all Europeans should have access to internet speeds of above 30 Mbps and 50% or more of European households should subscribe to internet connections above 100 Mbps.

(12) The private sector should play a leading role in rolling out and modernising broadband networks, supported by a competitive and investment-friendly regulatory framework. Where private investment falls short, Member States shall undertake the necessary efforts to achieve the targets of the Digital Agenda. Public financial assistance to broadband should be limited to programmes or initiatives targeting projects which cannot be solely financed by the private sector, confirmed by an ex-ante assessment identifying market imperfections or sub-optimal investment situations.

(13) Financial instrument(s) for broadband networks must not unduly distort competition, crowd out private investments or create disincentives on private operators to invest. In particular, they will be in compliance with Articles 101, 102, 106 and 107 of the Treaty on the Functioning of the European Union.

(14) Since the financial resources available under CEF are limited, financial assistance should focus on the establishment of financing mechanisms at Union level to attract additional investments, promote a multiplier effect, and so facilitate the efficient use of private and other public funds for investment. This approach allows for contributions from business and institutional players well beyond the funding levels directly eligible through CEF.

(15) The CEF support to broadband deployment should complement assistance provided under other Union programmes and initiatives, including the European Structural and Investment Funds (ESIF) in cases where an ex-ante assessment identifies market failures or sub-optimal investment situations and where thus decided by Managing Authorities. CEF financial assistance to broadband deployment should contribute to Member States' efforts both directly and by providing an investment vehicle for voluntary, ring-fenced contributions from other sources, including ESIF, thus allowing Member States to take advantage of the know-how and scale-effects of EU-managed facilities with a view to increasing the efficiency of public spending.

(16) The Union may support the deployment of broadband networks contributing to the objectives of the Digital Agenda for Europe in all types of areas, including suburban, rural, sparsely populated and less developed regions. This includes the deployment of broadband networks to link islands, landlocked, mountainous, remote and peripheral regions, including island Member States, with the central regions of the Union and/or actions to improve reliability or performance of connections between such regions and central regions of the Union.

(17) In implementing this Regulation, the method of intervention should be aligned with the characteristics of the actions in question. Thus, in the field of digital service infrastructures, core service platforms, which cannot be funded from other sources, should be prioritised for funding in the form of procurement or, exceptionally, grants, while generic services should be given only limited financial assistance from the CEF. Furthermore, any financial assistance from the CEF should aim at efficient use of Union's funds and, therefore, broadband networks should be supported by financial instruments, which ensure higher leverage effect than grants.

(18) The intervention under this Regulation should aim at the achievement of synergies and interoperability between different projects of common interest described in the Annex, as well as with other infrastructures, including transport and energy infrastructures supported by the CEF, relevant research infrastructures supported inter alia by Horizon 2020 and relevant infrastructures supported by ESIF, while avoiding duplication and undue administrative burden.

(19) Financial assistance to projects of common interest should be complemented by horizontal actions, including technical assistance, demand stimulation measures and coordination, which should aim at maximizing the impact of EU intervention.

(20) When committing funds to the intervention in broadband networks, the Commission should take due account of the results of the evaluations of existing Union's financial instruments.

(21) Selection of new actions to be funded under CEF, as well as their level of funding, will be done as part of an annual work programme proposed by the Commission.

(22) The Commission should be assisted by an Expert Group of representatives of Member States which shall be consulted on and contribute to, inter alia, monitoring of the implementation of these guidelines, planning, evaluation and addressing implementation problems.

(2) On 26 March 2010, the European Council welcomed the Commission's proposal to launch the strategy Europe 2020. One of the three priorities of Europe 2020 is smart growth through the development of an economy based on knowledge and innovation. Investments in telecommunications, notably broadband networks and digital service infrastructures, are a necessary condition for smart but also sustainable and inclusive economic growth of the Union.

(3) On 17 June 2010, the European Council endorsed the Digital Agenda for Europe[13] and called upon all institutions to engage in its full implementation. The Digital Agenda aims to chart a course to maximise the social and economic potential of information and communication technologies, in particular through the deployment of high-speed broadband networks by seeking to ensure that by 2020 all Europans have access to internet speeds of above 30 Mbps and 50% or more of European households subscribe to internet connections above 100 Mbps. The Digital Agenda aims to establish a stable legal framework to stimulate investments in an open and competitive high speed internet infrastructure and in related services; a true single market for online content and services; active support for the digitisation of Europe's rich cultural heritage, and the promotion of internet access and take-up by all, especially through support of digital literacy and accessibility. In addition, Member States should implement operational national plans for high speed internet, targetting public funding on areas not fully served by private investments in internet infratructures and promote deployment and usage of modern accessible online services.

(4) The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions -European Broadband: investing in digitally driven growth[14] concludes that the critical role of the internet means that the benefits for society as a whole appear to be much greater than the private incentives to invest in faster networks. Public support for this area is therefore necessary, but should not unduly distort competition.

(5) The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions – A Budget for Europe 2020[15] recognises the creation of a Connecting Europe Facility in the context of the Multiannual Financial Framework in order to address the infrastructure needs in the areas of transport, energy and information and communication technologies. Synergies between these sectors as well as with other Union investment programmes are key as similar challenges emerge requiring solutions that unlock growth, combat fragmentation, reinforce cohesion, favour the use of innovative financial instruments and address market failures as well as the removal of bottlenecks which hinder the completion of the Single Market.

(6) Regulation (EU) No […/…] of the European Parliament and of the Council of […] establishing the Connecting Europe Facility[16] determines the conditions, methods and procedures for providing Union financial aid to trans-European networks in order to support projects in the field of transport, energy and telecommunications infrastructures.

(7) Actions in the field of broadband networks will be in line with the relevant Union policies, regulation and guidance. This includes the set of rules and guidelines for the telecommunications markets and in particular the Regulatory Framework for electronic communications adopted in 2009 which provides a coherent, reliable and flexible approach to the regulation of electronic communication networks and services in fast moving markets. These rules are being implemented by national regulatory authorities and the Body of European Regulators for Electronic Communications (BEREC). The NGA Recommendation[17] adopted in 2010 aims at fostering the development of the Single Market by enhancing legal certainty and promoting investment, competition and innovation in the market for broadband services in particular in the transition to next generation access networks (NGAs).

(8) These actions will also be in compliance with Articles 101, 102 and 106 of the Treaty on the Functioning of the European Union, as well as with the Community Guidelines for the application of State aid rules in relation to rapid deployment of broadband networks, adopted in 2009, which provide a framework for stakeholders and Member States to accelerate and extend broadband deployment. The EU guidance for NGA investment models for EU management authorities and other relevant agencies (published in October 2011) provide a step by step approach to the implementation of a range of models that ensure fair competition among all suppliers and aim at the realisation of the objectives of cohesion and rural development policies.

(9) Within the framework of a system of open and competitive markets, the Union's intervention is necessary where market failures need to be overcome. By providing financial support and additional financing leverage to infrastructure projects the Union can contribute to the establishment and development of trans-European networks in the area of telecommunications, thus generating higher benefits in terms of market impact, administrative efficiency and resource utilisation.

(10) Substantial economic and social benefits, which cannot be captured nor monetised by investors, are associated with higher broadband speeds. Fast and ultra-fast broadband is the key enabling infrastructure for the development and deployment of digital services, which rely on the availability, speed, reliability and resilience of the physical networks. The deployment and take-up of faster networks opens the way for innovative services exploiting higher speeds. Action at Union level is necessary to maximise the synergies and interactions between those two components of digital telecommunications networks.

(11) The deployment of ultra-fast broadband will particularly benefit small and medium enterprises (SMEs) which often cannot benefit from web-based services such as cloud computing due to inadequate connectivity and speed of existing broadband connections. This will unlock the potential for substantial productivity gains for SMEs.

(12) By opening business opportunites, the deployment of broadband networks and digital service infrastructures will stimulate job creation in the Union. Construction of broadband networks will also have an immediate effect on employment in particular in civil engineering sector.

(13) The development of broadband networks and digital service infrastructures will contribute to the Union's objective to reduce greenhouse gas emission by enabling energy-efficient solutions in many sectors of Europe's economy. This positive effect will be limited, but only to some extent, by the growing energy and resource demand related mainly to the construction of broadband networks and the operation of digital service infrastructures.

(14) The interoperability of the broadband networks and the digital communications infrastructure associated to energy networks enables converged communications for the deployment of energy-efficient, reliable and cost-effective digital networks. Furthermore, convergence will be extended beyond connectivity to allow for the packaged provision of energy and telecom services by energy and telecom services providers respectively.

(15) The development, deployment and long-term provision of interoperable cross-border eGovernment services enhance the functioning of the Single Market. Governments are recognised for providing public online services which contribute to increasing efficiency and effectiveness of the public and private sector

(16) The operation of common electronic public services implemented conforming to the Decision 922/2009/EC of the European Parliament and of the Council of 16 September 2009[18] will aim at the availability of common services in support of the cross-border and cross-sector interaction between European public administrations.

(17) Directive 2011/24/EU of the European Parliament and of the Council of 9 March 2011 on the application of patients' rights in cross-border healthcare[19] gives the legal framework for the cross-border provision of healthcare, including eHealth services, in Europe. Their deployment is expected to improve the quality of care and the patient safety, to reduce medical costs, to contribute to modernising national healthcare systems and increasing their efficiency, and to make them better adapted to the individual needs of citizens, patients, health professionals, and the challenges of an ageing society.

(18) Increasing and preserving access to Europe's rich and diverse cultural content and data held by public sector bodies, and opening them up for reuse in full respect of copyright and related rights, will nurture creativity and spur innovation and entrepreneurship. Unhampered access to re-usable multilingual resources will help overcome language barriers, which undermine the internal market for online services and limit access to knowledge.

(19) In the area of safety and security, an EU-wide platform for sharing resources, information systems and software tools promoting online safety will contribute to creating a safer environment for children online. It will enable centres handling hundreds of thousands of requests and alerts per year to operate across Europe. Critical Information Infrastructures will enhance the Union-wide capability for preparedness, information sharing, coordination and response to cyber security threats.

(20) It is expected that innovative applications of commercial nature running on digital service infrastructures will emerge. Their exploration and testing can be co-financed as part of research and innovation projects in the Horizon 2020 programme and their deployment under the cohesion policy.

(21) In order to take into account the developments in the areas of information and communication technologies, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending the Annex to this Regulation. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level. The objective of this delegation is to address new technological and market developments, emerging political priorities or opportunities for exploiting synergies between different infrastructures, including those in the fields of Transport and Energy. The scope of delegation is limited to modifying the description of projects of common interest, adding a project of common interest or removing an obsolete project of common interest according to pre-established, clear and transparent criteria.

(22) The Commission, when preparing and drawing-up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and Council.

(23) Decision No 1336/97/EC of the European Parliament and of the Council of 17 June 1997 on a series of guidelines for trans-European telecommunications networks[20] covers the objectives, priorities and broad lines of measures envisaged in the trans-European networks in the area of telecommunications infrastructure. In the light of the recent developments that Decision should be replaced.

(24) Decision No 1336/97/EC should therefore be repealed.