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S ‘Council of the European Union Brussols, 21 November 2014 na ume TELECOM 207 ‘COMPET 625 Misa6 CONSOM 261 copec 2252 NOTE, Presidency ations No. prev. doo: 13383/14 TELECOM 164 COMPET 525 M677 GONSOM 17 CODEC 1852 No. Clon prop.:_13655/13 TELECOM 232 COMPET 646 MI 753 CONSOM 161 CODEC 2000 Subject: Proposal fot a Regulation of the European Parliament and ofthe Counci laying down measures conceming the European single market for electronic ‘communicatons and to achieve a Connected Continent, and amending Directives 2002/20/EC, 2002/2'VEC and 2002/22/EC and Regulations (EC) [No 1211/2000 and (EU) No 631/2012 = State of play 1. The Barroso Commission adopted its proposal for a Regulation of the European Parliament and ofthe Cone! lying down measures concering the Eopen singe mark! for electronic conmanications and fo achiev a Connected Continent (the TSM propos) on 11 September 2013 with aricle 114 TFEU asa lea bass. Do 1019/14 describes the progress ‘made onthe file util Mey 2014. The main elements of the props inched provisions on & single EU authorsuion forelectonic communications providers, European inputs, incling coordination of ws of radio specum and provisions on European viral access prods, harmonised sighs of en-us including ne neural, fesiitating chang of provider and proviion concerning the powers of natoel repulse, roming an REREC Fa Prick T na DGEB LIMITE EN [Next othe operative part of the Regulation, the propossl also sought to achive its aims by ‘amending parts ofthe existing regulatory famework, namely Directives 2002/20/EC, 2002/21/EC? ‘and 2002/22/EC” and Regulations 531/2012" and 1211/2006", Doc 10109/14 describes the progress ‘made onthe file until May 2014, 2 The political guidelines ofthe Juncker Commission sate that it will present ambitious legislative steps towards a connected digital single market within the fists months of ts ‘mandate, including by adding more ambition tothe ongoing reform of the telecoms rules. ‘This has been further developed in the mission letters to Commissioners Ansip and Oetinger. 3. Without prejudice to ny proposals in related field, s number of existing instruments of relevance forthe TSM proposal are subject to review in the near-term: A fll review ofthe framework for electronic communications i expected to be launched during 2015, with proposals possible in 2016. Accordingly, the BEREC draft work programme for 2015 envisages a comprehensive analysis by BEREC ofthe areas of the framework that require review. The Directive on privacy and electronic communications (Directive 2002/S8/EU), ‘one part ofthe framework for electronic communications is included for review in the ‘Commission's Regulatory Fitness and Performance Programme (REFIT) for 2014, The Radio Spectrum Policy Programme (Decision 243/2012/EU) is due for review by 31 December 2015. Commission Recommendation 2009/396/EU on termination rates requires a review by 2016. The Roaming Regulation (Regulation (EU) 31/2012) is due for review by 30 June 2016. Furthermore, the Audiovisual Media Services Directive Directive 2010V13/EU), covering content delivered using any technological means, including both linear and non- linear (OTT) services, i to be reviewed in 2015 under the REFIT programme, In addition, a proposal on copyright is expected during 2015, Directive 2002/2C/EC on the authorisation of electronic communications networks end Directive 2002/2/EC on «common regulatory framework fr electronic communications networks and services Directive 200222/EC on universal service and users rights relating to electronic ‘communications setworks and services ‘Regulation No $31/2012 on roaming on public mobile communications networks within the Union * Regulation 12112009 establishing the Body of European Regulators fr Electronic (Communications BEREC) and the Oice na liek 2 DEB LIMITE EN State of play in the Couneil 4. ‘The ilehas been discussed at total of mostings of Working Party on Telecommunications snd the Information Society (WP TELE) under the Italian Presidency. Furthermore, high-level political input has been sought by the Italian Presidency atthe September informal minstril 1gand a writen consultation tok place in July. 5, Based onthe discussions upto then, the Italian Presidency presented «text containing new. snd substantially amended provisions on 19 September 2014 (doc 13383/14). Compared to ‘he TSM proposal, the Presidency text introduced fundamentally different texts on reaming ‘and spectrum, amended texts on open intemeU/net neutrality, and also addressed end-users’ rights. Based on irput received both at Working Paty and at political level, the TSM ‘proposal was simplified in doc 13383/14, withthe deletion of the following parts: Chapter It ‘on single authorisation, Section 2 of Chapter Ill on other inputs and Article 37 on BEREC. ‘The new text has been discussed in WP TELE on 6 occasions. The Presidency has aso arranged a joint Council-EP workshop with BEREC on 1] November to discuss roaming. BEREC is expected to deliver an opinion on possible approaches on roaming in early December. 6, Delegations generlly accepted the deletions andthe focus, in the text presented by the Presidency (Doc 15383/14), on roaming and open internetinet neutrality asthe two core Issues, Meanwhile a umber of delegations considered tha the (ext still contained compleities with espest to roaming and tht it did not yt offer sufficient soltionsto the existing problems relating to open internet/net neutrality, on which they invoked a prnciples- based approach. The intensive examination of bth the TSM proposal and of Doc 13383/14 ‘has resulted in an understanding to focus continuing discussions only onthe two cor issues, ‘primarily eamingbut also open interneUnet neutrality. ia Pr 3 DGE2B LIMITE EN (Othe areas considered of lesser priority, such as end-user aspects, and spectrum could be dressed coherently following fll consultation and proper impact assessment in the context ofthe now Commission's work, including the reviews refered to above, The Commission is invited to take full acount ofthe Council discussion on these areas ini review. 8, Inparicular roaming bas been identified a a prorty area, The curentRoaming Regulation, sdopted in June 2012, contains « number of structural measures siming‘o finally address the roaming problem. It is valid until 2022 with a review set for 2016, One aspet forts 2016 review is whether it might then be necessary to introduce non differentiation of roaming and national tariffs. The mere presentation ofthe TSM proposal, coming one year after adoption ofthat Regulation and before a number ofthe structural measures ruired by it were to be ‘implemented, caused considerable uncertainty on the market fo the detriment of users and providers. Most delegations therefore agree on the need to swifly address roaming and are analysing various possible solutions in order o have an economically sastenable solution in place atthe earliest possible date. The issue is however comples. 9. Secondarly there is broad agreement to consider open inlemeVnet neutality aspects. Basic provisions in thet respect were introduced into the framework for electronic communications in 2009. The review ofthat framework, combined withthe forthcoming review ofthe ‘Audiovisual Media Services Directive, might offer a suitable opportunity for «comprehensive spprosch othe issue, However, a number of delegations considera pracipes-based EU approach useful at this juncture to minimise divergent regulation in the Member States, and the issue is also of relevance io intemet governance. As with roaming, ssves relating to open iternetnet neutrality are highly complex, involving fundamental rights, economic and ‘echnical aspects, content of communications, and also questions relating to appropriate scope (providers of electonic communications services!networks/other types of providers ete) and effestivenss, aa Pek 4 Dor LIMITE EN Next ay forward ‘The Presidency is proposing: ~ a further revised text on roaming (overview in Annex I) - atext setting out an approach in principle to open intemetnet neutrality (Annex I) 10. On roaming, tae aim isto offer a solution to core isues subject to centinued intense examination, ncuding: (© the level of regulated whotesse prices; (ii) the definition of any "fair use” criterion, including whether any such criterion should apply tboth retail and wholesale levels and whether it shouldbe based on domestic or EU-wide usage; the definition of any "roam like at home” prvision; (ii) the implications on nations markets, inchuding the risk of « “water bed” effect (i.e increased domestic prices to compensate for any losses on roaming services incurred by ‘the visited or home operator, and on investment, (iv) the impect on at-rate offerings; (¥) the relatonship to the structural remedies, intended to promote competition, inthe Roaming Regulation 11, Discussions oa open internetnet neutrality appear to be converging wround the following core elements: (simple princples-based approach, in order notto inhibitinnovaton and to avoid technolegical developments making the regulation obsolete; (i) notreguating "specialised services" (while not prohibiting them); (ii) llowing necessary flexibility regarding traffic management measures (while not ‘including measures relating to content lawfulness) and v)_ allowing scope for national NRAS, coordinated by BEREC, to provide guidance, 12, Imlight ofthe above, the Council i invited to ask Coreper, at ths earliest posible {finalise a mandate fora first exploratory triloeve with the EP based on the orientations st out in Annex Ton Roaming and Aunex If on Open interned/net neutralitv, na Pick 5 ors LIMITE EN ANNEX OVERVIEW OF REVISED PRESIDENCY ROAMING PROPOSAL A. Sequence () Adoption of new rules (i) Adoption + [6] months BEREC to lay down guidelines for application of fir we eriteria in retail contracts ) Introduction of mandatory Roaming like at home, 15.12.2016 unless explicit opt-out ofthe end-user (9) by 30 June 2016 Commission to conduct public consultation and to present areporton - sate ofthe marke, including modification or removal of structural measures and + the duration and level of maximum wholesale charges and/or + any other arrangement addressing wholesale market problems, including far use or other measure for protecting from abusive use of regulated wholesle roaming provision (9) 30 June 2016 +X months Adoption of any Ieisatve proposal, ft isthe case, and negotiation with the co-egsltor (v9 6 months after approval of lepslaive proposal under (v) / every two years after guidelines sander (i) Review of BEREC guidelines on fair use (i in ease of divergences in application of guidelines under (i) across the Union ‘Commission Implementing act with detailed rules onthe application of fair use criteria (i) in ease of unreasonable terms regarding fair use in a Member State [NRA mey adopt binding minimum fair us allowances (eviewed every two years) Prick “ DGE2B LIMITE EN B, Levelof regulated wholesale pices Level foreseen in current Roaming I regulation, without prejudice to any change folowing ‘he report under AC) thle such change would not take place before I vear after BLAH, C. Clear definition of “fir use eiterion (wholesale andor retail level: domestic ot BU level "Fair ws" retail, domestic levels. Consumers shouldbe in a position to replicate tothe extent possible, the typical consumption pattern associated with their respective domestic retail packages while periodically travelling within the Union, taking ino account, inter ali, domestic price levels andthe need to avoid market distortions in domestic mobile markets Factors for the BEREC "fur use" guidelines include a range of criteria, such as: evolution of pricing and consumption pattems in the Member States; observable effect of roaming at domestic service rates onthe evolution of such rates; evolution of actual wholesale roaming tates for unbelanced trafic between roaming providers; objective variations between Member ‘States or between roaming providers conceming domestic pice levels, typical volumes of retail packages, sustainability for certain roaming providers in view of effective wholesale rates, average period of travel D. Thedefinition of any “roam lke at home” provision [No surcharge in comparison to the charges for mobile communications services at domestic level on roaming customers in any Member States for any regulated roaming call made or received, for any regulated roaming SMS/MMS message sent endfor any regulated data roaming services wed, nor any general charge to enable the terminal equipment or service to be used abroad, subject to “air use" (above) E. Implications on national markets, including the risk ofa waterbed effect BEREC and Commission repors (A (i) and (iv) above) and possible legislative proposal “Fair use" guidelines and implementing ats. na PT 7 DGE2B LIMITE EN F.Relaonship tothe Roaming Regulation structural rensdics Single IMSI decoupling (frst subparagraph of Article 41) of the curent Roaming, Regulation) would cease to apply by the date mentioned under A (i) above. The ‘Commission report and any legislative proposal mentioned under A (iv and v above would address the remaining structural remedies (second subparagraph of Article 4(1) and Article 3 ofthe current Roaming Regulation). G. impacton flat rate offerings ‘Would be subject othe fair use" provision. Trafic beyond the fair useellowance will be subject tothe current retail eurotarift ie Pre. 3 DGE2B LIMITE EN ANNEX IL PRESIDENCY PROPOSED APPROACH IN PRINCIPLE TO OPEN INTERNET/NET NEUTRALITY ‘Most Member States have confirmed their support to EU rules on net neutrality set at aleve of, principles, leaving more scope for BEREC guidelines and national enforcement (On the basis of discussions at WP level and Member States comments the Presidency proposes to retain te following prinipls in order to develop provisions on net neutrality: + Removal ofthe definitions of “net neutrality" and "specialised services" + Instead ofa definition of net neutrality there could be a reference tothe chietive of net neutrality, ein recital, which would resolve the concems tht the defition might beat variance with the specific provisions. ‘+ Clear principles for traffic management in general, as well a the obligation to maintain sufficient network capacity for the internet access service regardless of oer services also

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