Annexes to COM(1995)379 - Interconnection in telecommunications with regard to ensuring universel service and interoperability through application of the principles of Open Network Provision (ONP)

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dossier COM(1995)379 - Interconnection in telecommunications with regard to ensuring universel service and interoperability through application of ...
document COM(1995)379 EN
date June 30, 1997
ANNEX I


SPECIFIC PUBLIC TELECOMMUNICATIONS NETWORKS AND PUBLICLY AVAILABLE TELECOMMUNICATIONS SERVICES

(referred to in Article 3 (2))

The following public telecommunications networks and publicly available telecommunications services are considered of major importance at European level.

Organizations providing the public telecommunications networks and/or publicly available services identified below which have significant market power are subject to specific obligations with regard to interconnection and access, as specified in Articles 4 (2), 6 and 7.


Part 1

The fixed public telephone network

The fixed public telephone network means the public switched telecommunications network which supports the transfer between network termination points at fixed locations of speech and 3,1 kHz bandwidth audio information, to support inter alia:

- voice telephony,

- facsimile Group III communications, in accordance with ITU-T Recommendations in the 'T-series`,

- voice band data transmission via modems at a rate of at least 2 400 bit/s, in accordance with ITU-T Recommendations in the 'V-series`.

Access to the end-user's network termination point is via a number or numbers in the national numbering plan.

The fixed public telephone service according to Directive 95/62/EC of the European Parliament and of the Council of 13 December 1995 on the application of open network provision (ONP) to voice telephony (1).

The fixed public telephone service means the provision to end-users at fixed locations of a service for the originating and receiving of national and international calls, and may include access to emergency (112) services, the provision of operator assistance, directory services, provision of public pay phones, provision of service under special terms and/or provision of special facilities for customers with disabilities or with special social needs.

Access to the end-user is via a number or numbers in the national numbering plan.


Part 2

The leased lines service

Leased lines means the telecommunications facilities which provide for transparent transmission capacity between network termination points, and which do not include on-demand switching (switching functions which the user can control as part of the leased line provision). They may include systems which allow flexible use of the leased line bandwidth, including certain routing and management capabilities.


Part 3

Public mobile telephone networks

A public mobile telephony network is a public telephone network where the network termination points are not at fixed locations.

Public mobile telephone services

A public mobile telephone service is a telephony service whose provision consists, wholly or partly, in the establishment of radiocommunications to one mobile user, and makes use wholly or partly of a public mobile telephone network.

(1) OJ No L 321, 30. 12. 1995, p. 6.


ANNEX II


ORGANIZATIONS WITH RIGHTS AND OBLIGATIONS TO NEGOTIATE INTERCONNECTION WITH EACH OTHER IN ORDER TO ENSURE COMMUNITY-WIDE SERVICES

(referred to in Article 4 (1))

This Annex covers those organizations which provide switched and unswitched bearer capabilities to users upon which other telecommunications services depend.

Organizations in the following categories have both rights and obligations to interconnect with each other, in accordance with Article 4 (1). Interconnection between these organizations is subject to additional supervision by national regulatory authorities, in accordance with Article 9 (2). Special interconnection charges, terms and conditions may exist for these categories of organizations in accordance with Article 7 (3).

1. Organizations which provide fixed and/or mobile public switched telecommunications networks and/or publicly available telecommunications services, and in so doing control the means of access to one or more network termination points identified by one or more unique numbers in the national numbering plan. (See notes below).

2. Organizations which provide leased lines to users' premises.

3. Organizations which are authorized in a Member State to provide international telecommunications circuits between the Community and third countries, for which purpose they have exclusive or special rights.

4. Organizations providing telecommunications services which are permitted in this category to interconnect in accordance with relevant national licensing or authorization schemes.

Notes

Control of the means of access to a network termination point means the ability to control the telecommunications services available to the end-user at that network termination point and/or the ability to deny other service providers access to the end-user at the network termination point.

Control of the means of access may entail ownership or control of the physical link to the end-user (whether wire or wireless), and/or the ability to change or withdraw the national number or numbers needed to access an end-user's network termination point.


ANNEX III


CALCULATING THE COST OF UNIVERSAL SERVICE OBLIGATIONS FOR VOICE TELEPHONY

(referred to in Article 5 (3))

Universal service obligations refer to those obligations placed upon an organization by a Member State which concern the provision of a network and service throughout a specified geographical area, including - where required - averaged prices in that geographical area for the provision of that service.

The cost of universal service obligations shall be calculated as the difference between the net cost for an organization of operating with the universal service obligations and operating without the universal service obligations.

This applies whether the network in a particular Member State is fully developed or is still undergoing development and expansion.

The calculation shall be based upon the costs attributable to:

(i) elements of the identified services which can only be provided at a loss or provided under cost conditions falling outside normal commercial standards.

This category may include service elements such as access to emergency telephone services, provision of certain public pay telephones, provision of certain services or equipment for disabled people, etc.

(ii) specific end-users or groups of end-users who, taking into account the cost of providing the specified network and service, the revenue generated and any geographical averaging of prices imposed by the Member State, can only be served at a loss or under cost conditions falling outside normal commercial standards.

This category includes those end-users or groups of end-users which would not be served by a commercial operator which did not have an obligation to provide universal service.

In peripheral regions with expanding networks, the cost calculation should be based on the additional cost of serving those end-users or groups of end-users which an operator applying the normal commercial principles of a competitive environment would choose not to serve.

Revenues shall be taken into account in calculating the net costs. Costs and revenues should be forward-looking.


ANNEX IV


LIST OF EXAMPLES OF ELEMENTS FOR INTERCONNECTION CHARGES

(referred to in Article 7 (3))

Interconnection charges refer to the actual charges payable by interconnected parties.

The tariff structure refers to the broad categories into which interconnection charges are divided, e.g.

- charges to cover initial implementation of the physical interconnection, based on the costs of providing the specific interconnection requested (e.g. specific equipment and resources; compatibility testing),

- rental charges to cover the on-going use of equipment and resources (connection maintenance, etc.),

- variable charges for ancillary and supplementary services (e.g. access to directory services; operator assistance; data collection; charging; billing; switch-based and advanced services etc.),

- traffic related charges, for the conveyance of traffic to and from the interconnected network (e.g. the costs of switching and transmission), which may be on a per minute basis, and/or on the basis of additional network capacity required.

Tariff elements refer to the individual prices set for each network component or facility provided to the interconnected party.

Tariffs and charges for interconnection must follow the principles of cost orientation and transparency, in accordance with Article 7 (2).

Interconnection charges may include a fair share, according to the principle of proportionality, of joint and common costs and the costs incurred in providing equal access, and number portability, and the costs of ensuring essential requirements (maintenance of the network integrity; network security in cases of emergency; interoperability of services; and protection of data).


ANNEX V


COST ACCOUNTING SYSTEMS FOR INTERCONNECTION

(referred to in Article 7 (5))

Article 7 (5) calls for details of the cost accounting system; the list below indicates, by way of example, some elements which may be included in such accounting systems.

The purpose of publishing this information is to provide transparency in the calculation of interconnection charges, so that other market players are in a position to ascertain that the charges have been fairly and properly calculated.

This objective should be taken into account by the national regulatory authority and the organizations affected when determining the level of detail in the information published.

The list below indicates the elements to be included in the information published.

1. The cost standard used

e.g. fully distributed costs, long-run average incremental costs, marginal costs, stand-alone costs, embedded direct costs, etc.

including the cost base(s) used,

i.e. historic costs (based on actual expenditure incurred for equipment and systems) or forward-looking costs (based on estimated replacement costs of equipment or systems).

2. The cost elements included in the interconnection tariff

Identification of all the individual cost components which together make up the interconnection charge, including the profit element.

3. The degrees and methods of cost allocation, in particular the treatment of joint and common costs

Details of the degree to which direct costs are analyzed, and the degree and method by which joint and common costs are included in interconnection charges.

4. Accounting conventions

i.e. the accounting conventions used for the treatment of costs covering:

- the timescale for depreciation of major categories of fixed asset (e.g. land, buildings, equipment, etc.),

- the treatment, in terms of revenue versus capital cost, of other major expenditure items (e.g. computer software and systems, research and development, new business development, direct and indirect construction, repairs and maintenance, finance charges, etc.)

The information on cost accounting systems, as identified in this Annex, may be amended in accordance with the procedure referred to in Article 19.


ANNEX VI


THRESHOLDS FOR TELECOMMUNICATIONS TURNOVER

(referred to in Article 8 (1) and 8 (2))


Part 1

The threshold for annual turnover in telecommunications activities referred to in Article 8 (1) shall be fifty million ecus. (ECU 50 million)


Part 2

The threshold for annual turnover in telecommunications activities referred to in Article 8 (2) shall be twenty million ecus. (ECU 20 million)


ANNEX VII


FRAMEWORK FOR NEGOTIATION OF INTERCONNECTION AGREEMENTS

(referred to in Article 9 (2))


Part 1

Areas where the national regulatory authority may set ex ante conditions

(a) Dispute resolution procedure,

(b) Requirements for publication/access to interconnection agreements and other periodic publication duties,

(c) Requirements for the provision of equal access and number portability,

(d) Requirements to provide facility sharing, including collocation,

(e) Requirements to ensure the maintenance of essential requirements,

(f) Requirements for allocation and use of numbering resources (including access to directory services, emergency services and pan-European numbers),

(g) Requirements concerning the maintenance of end-to-end quality of service,

(h) Where applicable, determination of the unbundled part of the interconnection charge which represents a contribution to the net cost of universal service obligations.


Part 2

Other issues the coverage of which in interconnection agreements is to be encouraged

(a) Description of interconnection services to be provided,

(b) Terms of payment, including billing procedures,

(c) Locations of the points of interconnection,

(d) Technical standards for interconnection,

(e) Interoperability tests,

(f) Measures to comply with essential requirements,

(g) Intellectual property rights,

(h) Definition and limitation of liability and indemnity,

(i) Definition of interconnection charges and their evolution over time,

(j) Dispute resolution procedure between parties before requesting national regulatory authority intervention,

(k) Duration and renegotiation of agreements,

(l) Procedure in the event of alterations being proposed to the network or service offerings of one of the parties,

(m) Achievement of equal access,

(n) Provision of facility sharing,

(o) Access to ancillary, supplementary and advanced services,

(p) Traffic/network management,

(q) Maintenance and quality of interconnection services,

(r) Confidentiality of non-public parts of the agreements,

(s) Training of staff.