Annexes to COM(2004)507 - First annual report on Radio Spectrum Policy in the EU; State of implementation and outlook

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agreements at global level takes full account of Community policy objectives and principles.

A new request for Opinion will be issued by the Commission to the RSPG on wireless platforms. This will promote a forward-looking strategic vision for the spectrum needs of current and new technologies, such as GSM, 3G, RLAN, etc., with the objective of improving the coherence of decisions on individual services in the European Union.

In view of spectrum reforms in other countries, it is important that Europe is not left behind. Besides specific issues, the RSPG will continue assessing the possible benefits and difficulties associated to different spectrum management models, namely traditional centralised administrative decisions, market-oriented solutions and free or 'unlicensed' use of spectrum. Each one of such approaches may be most appropriate for specific instances and may require Community harmonisation or coordination for an effective implementation.

4. Strengthening the Coherence of Spectrum Policy in the EC

Radio Spectrum policy must be considered in the general EC policy context. While the impact of spectrum regulation on specific Community policies, such as the Information Society, maritime safety, the Single European Sky and Space policy, is clear, correlations also exist with broader generic policies and principles. A Spectrum Interservice Group (SIG) has been created within the Commission for this purpose, and to prepare RSC and RSPG meetings as well as international negotiations.

Harmonisation of radio spectrum use must be consistent with the existing electronic communications regulatory framework [9], which refers to radio spectrum as an essential input for radio-based electronic communications services. The essential requirement to avoid harmful interference may justify an exception to the general rule that spectrum use should not be subject to individual rights but to conditions included in general authorisations to provide services or networks. In this context, a common definition and applicability of the concept of "harmful interference" and its implication on acquired spectrum rights in the Community should be examined.

[9] In particular Council/EP Directives 2002/20/EC and 2002/21/EC


Ensuring efficient use of radio spectrum may justify the limitation in the number of individual rights granted to use the spectrum. While no common understanding of the term "efficient" exists, spectrum should be made available in the most flexible way possible so that spectrum scarcity is not created by regulation, without overlooking the future spectrum needs of services of public interest. Spectrum users must be encouraged to be more efficient, by moving from obsolete to more modern and "intelligent" technologies, and by using spectrum trading.

Regulatory decisions on radio spectrum allocation and assignment also affect the degree of competition in specific markets by limiting the number of competitors. While this is the case for assignment and licensing measures, it also applies to allocation of spectrum to a specific radio service, aspects of which therefore may fall under Community law. Allocation of insufficient spectrum may limit the assignment of spectrum to one sole user for a specific type of service, thereby creating an exclusive right of use. A common understanding will be required about how radio spectrum management measures can be brought in line with Community legal provisions in the field of competition.

Technological neutrality in spectrum allocation needs to reflect obligations under both international WTO rules and Community legislation. Unless duly justified, allocation on an exclusive basis to specific standardised technologies must be avoided. Systems with comparable functionalities and able to satisfy essential requirements in different, perhaps proprietary ways, should be treated in a non-discriminatory manner. Reference to product requirements in terms of performance is preferable to design or descriptive characteristics.

The creation of an Internal Market for wireless equipment requires a close interaction between different Community regulatory tools. The R&TTE Directive [10] harmonises regulatory requirements for putting radio equipment on the market and into operation across the EC, with adequate safeguards to protect against harmful interference. The RSD could be used to overcome, where justified, the "fragmentation" of spectrum allocation in the EU identified as an obstacle to the successful achievement of single market objectives. Co-ordination of action with the TCAM, the standing Committee for the R&TTE Directive, will also be continued.

[10] Council/EP Directive 1999/5/EC


Coexistence must also be ensured between radio equipment and other non-radio sources of electromagnetic radiation such as power line communications. Therefore, a closer link must also be made with the Electromagnetic Compatibility Directive [11], which also has the avoidance of harmful interference as an essential requirement.

[11] Council Directive 89/336/EEC


The development of lighter regulatory means enabling fast-moving sectors to introduce new technological applications in the market-place will be supported by stronger cooperation mechanisms with relevant EC RTD Framework Programme activities.

A reflection on how to encourage innovation in the Community via more flexible regulation on experimental rights to use the radio spectrum is needed. Large-scale real-life testing of new technologies enables their rapid introduction in the market-place, with provisions to protect existing spectrum users from unforeseen harmful effects. Without an appropriate framework for Community-wide experimental rights, new wireless technologies are increasingly being tested and introduced outside Europe first. Furthermore, the coexistence in the radio spectrum of very different technologies leads to difficulties in the development of regulation exclusively on the basis of theoretical interference models. Therefore, practical measurement campaigns ought to be used to validate such models.

New developments in wireless technology are not socially neutral and may create new policy or ethical issues beyond the scope of the RSD. Protecting public health against any noxious effect of electromagnetic emissions of radio equipment must be a priority: the conditions of use of the radio spectrum by radio devices must, as a principle, be selected to minimise any potential risk to the public. The proliferation of wireless means to exchange data, often without users knowing, such as RFID "smart tags", raises privacy issues. Although not technically covered by implementing measures of the RSD, issues such as these cannot be ignored in the general Community approach.

5. Conclusion

Radio-based technologies are an essential support for major European policies and for fast-growing industrial sectors. Innovative technologies can make new services and applications possible and increase the efficiency of spectrum use. Regulations must allow market actors to explore the best uses of these technologies, while protecting the requirements of existing services against harmful interference. Europe must respond to the progress in this direction achieved by its main trading partners.

Implementation of the RSD has been successful so far, with the setting up of the institutional structure, the adoption of a mechanism for policy formulation and the development of technical implementing measures in a large number of areas to provide legal certainty on spectrum harmonisation. The Commission counts on the essential contribution of other actors such as CEPT, standardisation bodies like ETSI, and the Member States to make this process work.

Radio spectrum policy in the Community will continue to encourage the harmonisation of spectrum where necessary to facilitate innovation and support Community policies, while seeking not to constrain users unduly. The principles of proportionality, non-discrimination, fair competition, subsidiarity and transparency enshrined in relevant Community legislation will be applied in the spectrum domain.

The Commission is inviting the European Parliament and Council to acknowledge the implementation of the RSD to date and to support the policy perspectives outlined in this report.

Furthermore, Member States are invited to:

* continue providing full support to activities in the RSPG and RSC;

* promote Community objectives relating to EC policies in international negotiations;

* encourage CEPT to support the implementation of the RSD by delivering satisfactory mandate results;

* ensure effective and timely implementation of Commission decisions;

* fully cooperate to provide transparency on spectrum use.

The Community is confronted by some important policy challenges to achieve an effective use of spectrum for the benefit of European citizens, for assisting companies to increase productivity via technological innovation and for supporting the competitiveness of the EU radio manufacturing and services sectors. With the implementation of the RSD, and in partnership with other actors in this domain, the Commission will seek to continue addressing such challenges successfully in the future.