EUROPEAN COMMISSION DIRECTORATE-GENERAL X Information, Communication, Culture, Audiovisual Media DIRECTORATE-GENERAL XIII Telecommunications, Innovation and Exploitation of Research

SEC (98) 1284

The purpose of this Working Document is to two-fold. Firstly, it summarises the comments received during the public consultation period which followed the Commission's Green Paper on the Convergence of the telecommunications, media and information technology sectors. Secondly, it identifies areas where further reflection is needed and poses additional questions in these areas.

While the Commission' does not necessarily endorse the views that are contained in the summary, it does acknowledge with thanks the interest shown in the Convergence Green Paper, the many comments received, and the significant work of individuals and companies from the sectors involved.

The Working Document is the first part of a two-stage process which will be completed towards the end of 1998 with a Commission Communication containing further analysis and policy proposals. Preparation of the Communication will take account of the opinion of the European Parliament, expected in October 1998.

Many commentators offered views on matters, which, while relevant to the convergence issue, were outside the scope of the Green Paper itself. Such comments have been forwarded to the Commission services working on these matters.

1 Introduction : The Consultation Process

2 Common themes arising during the consultation

3 Summary of comments on the issues raised in the Green Paper

PART B: AREAS FOR FURTHER REFLECTION

1 The Three key issues

2 Timetable and Next steps

ANNEX 1: Summary of Comments by Question posed in the Green Paper

ANNEX 2: List of Contributors to the Green Paper Consultation

1. Introduction : The Consultation Process

This part of the Working Document presents an overview of the results of the 5-month public consultation carried out by the European Commission following publication of the Convergence Green Paper in December 1997. The Green Paper attracted considerable attention. By the middle of June, 270 written comments had been received from Member State governments, national regulatory authorities, broadcasters, telecommunications operators, equipment manufacturers, industry associations, consumer and user representatives, members of the creative community and trade unions. Annex 2 provides a breakdown of the types and geographical distribution of organisations which responded to the consultation.

Orientation debates took place within the Telecommunications Council and Audiovisual/Culture Council, and a formal opinion was given by the Economic and Social Committee. The European Parliament and the Committee of the Regions are expected to adopt their opinions on the Green Paper in the autumn this year.

Three hearings on the Green Paper were held during March and April 1998 for (i) national and European associations and representative groups, (ii) individual companies and (iii) Member State and EEA authorities. These hearings not only provided an opportunity for the Commission to identify the central issues in the on-going debate on the convergence phenomenon, but also allowed the different sectors and players concerned to hear and respond to each others’ views.

In addition, there have been more than 80,000 visits to the Green Paper’s Web page on the Commission’s Web Server (note 1), where the Commission posted the Green Paper and related studies, as well as comments sent to the Commission in electronic form.

In parallel with the hearings and the debate at European level, most Member States started a process of consultation at national level.

Part A starts by identifying the main themes brought out during the public consultation. It then continues with a summary of the key issues raised and the views offered on them by commentators.

A more detailed review of the comments received on each of the Green Paper’s nine questions is set out in Annex 1.

This Working Document presents the views expressed by commentators. It does not take a position on those views, nor attempt at this stage to respond to the arguments raised.

2. Common themes arising during the consultation

1. There is agreement on the reality of technological convergence, but different views as to the speed and scope of its impact on markets and services.
1. Most commentators preferred an evolutionary rather than revolutionary approach and many of those expressed a preference for Option 1 in the Green Paper (building on existing structures).
1. There is general recognition of the continuing role of sector specific rules to assist in securing certain general interest objectives, in particular within the audiovisual sector, even if those rules or the way they are applied may need to be modified to take account of the impact of new technology. Such sector specific rules will co-exist with (i) the application of competition rules and (ii) increasing reliance on industry self-regulation.
1. A number of potential barriers and key regulatory issues have been highlighted. The issue of access to set top boxes, >

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