Ian & Stuart's Australian Mac: Not for Sale/Another.not.for.sale (Australia).iso/fade into you/being there/Countries/Europe/Euro Council Report

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                    RECOMMENDATIONS TO THE EUROPEAN COUNCIL

                   EUROPE AND THE GLOBAL INFORMATION SOCIETY




     _________________________________________________________________

Members of the High-Level Group on the Information Society

          Martin Bangemann
          Enrico Cabral da Fonseca
          Peter Davis
          Carlo de Benedetti
          Pehr Gyllenhammar
          Lothar Hunsel
          Pierre Lescure
          Pascual Maragall
          Gaston Thorn
          Candido Velazquez-Gastelu
          Peter Bonfield
          Etienne Davignon
          Jean-Marie Descarpentries
          Brian Ennis
          Hans-Olaf Henkel
          Anders Knutsen
          Constantin Makropoulos
          Romano Prodi
          Jan Timmer
          Heinrich von Pierer


     _________________________________________________________________



                   EUROPE AND THE GLOBAL INFORMATION SOCIETY
                    RECOMMENDATIONS TO THE EUROPEAN COUNCIL

   In its Brussels meeting of December 1993, the European Council
   requested that a report be prepared for its meeting on 24 - 25 June
   1994 in Corfu by a group of prominent persons on the specific measures
   to be taken into consideration by the Community and the Member States
   for the infrastructures in the sphere of information.

   On the basis of this report, the Council will adopt an operational
   programme defining precise procedures for action and the necessary
   means.

   Brussels, 26 May 1994


     _________________________________________________________________



   Contents

   Chapter I: The information society - new ways of living and working
   together
     * A revolutionary challenge to decision makers
     * Partnership for jobs
     * If we seize the opportunity
     * A common creation or a still fragmented Europe ?
     * What we can expect for...
     * The social challenge
     * Time to press on
     * An Action Plan
     * New markets in Europe's information society

   Chapter II: A market-driven revolution
     * A break with the past
     * Ending monopoly
     * Enabling the market
     * Towards a positive outcome



   Chapter III: Completing the agenda
     * Protection of intellectual property rights (IPR)
     * Privacy
     * Electronic protection (encryption), legal protection and security
     * Media ownership
     * The role of competition policy
     * Technology



   Chapter IV: The building blocks of the information society
     * The opportunity for the Union - strengthening its existing
       networks and accelerating the creation of new ones
     * New basic services are needed
     * Blazing the trail - ten applications to launch the information
       society
        Application One: Teleworking
        Application Two: Distance learning
        Application Three: A network for universities and research
            centres
        Application Four: Telematic services for SMEs
        Application Five: Road traffic management
        Application Six: Air traffic control
        Application Seven: Healthcare networks
        Application Eight: Electronic tendering
        Application Nine: Trans-european public administration network
        Application Ten: City information highways



   Chapter V: Financing the information society a task for the private
   sector

   Chapter VI: Follow-up

   An Action Plan - summary of recommendations
     _________________________________________________________________



   This Report urges the European Union to put its faith in market
   mechanisms as the motive power to carry us into the Information Age.



   This means that actions must be taken at the European level and by
   Member States to strike down entrenched positions which put Europe at
   a competitive disadvantage:
     * it means fostering an entrepreneurial mentality to enable the
       emergence of new dynamic sectors of the economy



     * it means developing a common regulatory approach to bring forth a
       competitive, Europe-wide, market for information services



     * it does NOT mean more public money, financial assistance,
       subsidies, dirigisme, or protectionism.

   In addition to its specific recommendations, the Group proposes an
   Action Plan of concrete initiatives based on a partnership between the
   private and public sectors to carry Europe forward into the
   information society.


     _________________________________________________________________



                                  CHAPTER 1
                          THE INFORMATION SOCIETY -
                   NEW WAYS OF LIVING AND WORKING TOGETHER



A revolutionary challenge to decision makers



   Throughout the world, information and communications technologies are
   generating a new industrial revolution already as significant and
   far-reaching as those of the past.



   It is a revolution based on information, itself the expression of
   human knowledge. Technological progress now enables us to process,
   store, retrieve and communicate information in whatever form it may
   take - oral, written or visual - unconstrained by distance, time and
   volume.



   This revolution adds huge new capacities to human intelligence and
   constitutes a resource which changes the way we work together and the
   way we live together.





     This revolution adds huge new capacities to human intelligence
     and.... changes the way we work together and the way we live
     together.





   Europe is already participating in this revolution, but with an
   approach which is still too fragmentary and which could reduce
   expected benefits. An information society is a means to achieve so
   many of the Union's objectives. We have to get it right, and get it
   right now.



Partnership for jobs



   Europe's ability to participate, to adapt and to exploit the new
   technologies and the opportunities they create, will require
   partnership between individuals, employers, unions and governments
   dedicated to managing change. If we manage the changes beforeus with
   determination and understanding of the social implications, we shall
   all gain in the long run.



   Our work has been sustained by the conviction expressed in the
   Commission's White Paper, Growth, Competitiveness and Employment,
   that "...the enormous potential for new services relating to
   production, consumption, culture and leisure activities will create
   large numbers of new jobs...". Yet nothing will happen
   automatically. We have to act to ensure that these jobs are created
   here, and soon. And that means public and private sectors acting
   together.



If we seize the opportunity



   All revolutions generate uncertainty, discontinuity - and
   opportunity. Today's is no exception. How we respond, how we turn
   current opportunities into real benefits, will depend on how quickly
   we can enter the European information society.



   In the face of quite remarkable technological developments and
   economic opportunities, all the leading global industrial players are
   reassessing their strategies and their options.



A common creation or a still fragmented Europe?



   The first countries to enter the information society will reap the
   greatest rewards. They will set the agenda for all who must follow.
   By contrast, countries which temporise, or favour half-hearted
   solutions, could, in less than a decade, face disastrousdeclines in
   investment and a squeeze on jobs.



   Given its history, we can be sure that Europe will take the
   opportunity. It will create the information society. The only
   question is whether this will be a strategic creation for the whole
   Union, or a more fragmented and much less effective amalgam of
   individual initiatives by Member States, with repercussions on every
   policy area, from the single market to cohesion.





     The only question is whether this will be a strategic creation for
     the whole Union, or a more fragmented and much less effective
     amalgam of individual initiatives by Member States.





What we can expect for...


     * Europe's citizens and consumers:
       A more caring European society with a significantly higher
       quality of life and a wider choice of services and entertainment.




     * the content creators:
       New ways to exercise their creativity as the information society
       calls into being new products and services.




     * Europe's regions:
       New opportunities to express their cultural traditions and
       identities and, for those standing on the geographical periphery
       of the Union, a minimising of distance and remoteness.




     * governments and administrations:
       More efficient, transparent and responsive public services,
       closer to the citizen and at lower cost.




     * European business and small and medium sized enterprises:
       More effective management and organisation, access to training
       and other services, data links with customers and suppliers
       generating greater competitiveness.




     * Europe's telecommunications operators:
       The capacity to supply an ever wider range of new high
       value-added services.




     * the equipment and software suppliers; the computer and consumer
       electronics industries:
       New and strongly-growing markets for their products at home and
       abroad.





The social challenge



   The widespread availability of new information tools and services
   will present fresh opportunities to build a more equal and balanced
   society and to foster individual accomplishment. The information
   society has the potential to improve the qua-lity of life of Europe's
   citizens, the efficiency of our social and economic organisation and
   to reinforce cohesion.





     The information society has the potential to improve the quality
     of life of Europe's citizens, the efficiency of our social and
     economic organisation and to reinforce cohesion.





   The information revolution prompts profound changes in the way we
   view our societies and also in their organisation and structure. This
   presents us with a major challenge: either we grasp the opportunities
   before us and master the risks, or we bow to them, together with all
   the uncertainties this may entail.



   The main risk lies in the creation of a two-tier society of have and
   have-nots, in which only a part of the population has access to the
   new technology, is comfortable using it and can fully enjoy its
   benefits. There is a danger that individuals will reject the new
   information culture and its instruments.



   Such a risk is inherent in the process of structural change. We must
   confront it by convincing people that the new technologies hold out
   the prospect of a major step forward towards a European society less
   subject to such constraints as rigidity, inertia and
   compartmentalisation. By pooling resources that have traditionally
   been separate, and indeed distant, the information infrastructure
   unleashes unlimited potential for acquiring knowledge, innovation and
   creativity.



   Mastering risks, maximising benefits

   Thus, we have to find ways to master the risks and maximise the
   benefits. This places responsibilities on public authorities to
   establish safeguards and to ensure the cohesion of the new society.
   Fair access to the infrastructure will have to be guaranteed to all,
   as will provision of universal service, the definition of which must
   evolve in line with the technology.



   A great deal of effort must be put into securing widespread public
   acceptance and actual use of the new technology. Preparing Europeans
   for the advent of the information society is a priority task.
   Education, training and promotion will necessarily playa central
   role. The White Paper's goal of giving European citizens the right to
   life-long education and training here finds its full justification.
   In order best to raise awareness, regional and local initiatives -
   whether public or private - should be encouraged.





     Preparing Europeans for the advent of the information society is a
     priority task. Education, training and promotion will necessarily
     play a central role.



   The arrival of the information society comes in tandem with changes
   in labour legislation and the rise of new professions and skills.
   Continuous dialogue between the social partners will be extremely
   important if we are to anticipate and to manage the imminent
   transformation of the work place. This concerted effort should
   reflect new relationships at the work place induced by the changing
   environment.



   More detailed consideration of these issues exceeds the scope of this
   Report. The Group wishes to stress that Europe is bound to change,
   and that it is in our interest to seize this opportunity. The
   information infrastructure can prove an extraordinary instrument for
   serving the people of Europe and improving our society by fully
   reflecting the original and often unique values which underpin and
   give meaning to our lives.



   At the end of the day, the added value brought by the new tools, and
   the overall success of the information society, will depend on the
   input made by our people, both individually and in working together.
   We are convinced that Europeans will meet this challenge.



Time to press on



   Why the urgency? Because competitive suppliers of networks and
   services from outside Europe are increasingly active in our markets.
   They are convinced, as we must be, that if Europe arrives late our
   suppliers of technologies and services will lack the commercial
   muscle to win a share of the enormous global opportunities which lie
   ahead. Our companies will migrate to more attractive locations to do
   business. Our export markets will evaporate. We have to prove them
   wrong.



   Tide waits for no man, and this is a revolutionary tide, sweeping
   through economic and social life. We must press on. At least we do
   not have the usual European worry about catching up. In some areas we
   are well placed, in others we do need to do more - but this is also
   true for the rest of the world's trading nations.



   The importance of the sector was evident by its prominence during the
   Uruguay Round of GATT negotiations. This importance is destined to
   increase.



   We should not be sceptical of our possibilities for success. We have
   major technological, entrepreneurial and creative capabilities.
   However, the diffusion of information is still too restricted andtoo
   expensive. This can be tackled quickly through regulatory reforms.



   Public awareness of the technologies has hitherto been too limited.
   This must change. Political attention is too intermittent. The
   private sector expects a new signal.





     Political attention is too intermittent. The private sector
     expects a new signal.





An Action Plan



   This Report outlines our vision of the information society and the
   benefits it will deliver to our citizens and to economic operators.
   It points to areas in which action is needed now so we can start out
   on the market-led passage to the new age, as well as to the agents
   which can drive us there.



   As requested in the Council's mandate, we advocate an Action Plan
   based on specific initiatives involving partnerships linking public
   and private sectors. Their objective is to stimulate markets so that
   they can rapidly attain critical mass.



   In this sector, private investment will be the driving force.
   Monopolistic, anticompetitive environments are the real roadblocks to
   such involvement. The situation here is completely different from
   that of other infrastructural investments where public funds are
   still crucial, such as transport.



   This sector is in rapid evolution. The market will drive, it will
   decide winners and losers. Given the power and pervasiveness of the
   technology, this market is global.





     The market will drive ... the prime task of government is to
     safeguard competitive forces....





   The prime task of government is to safeguard competitive forces and
   ensure a strong and lasting political welcome for the information
   society, so that demand-pull can finance growth, here as elsewhere.



   By sharing our vision, and appreciating its urgency, Europe's
   decision-makers can make the prospects for our renewed economic and
   social development infinitely brighter.



New markets in Europe's information society



   Information has a multiplier effect which will energise every
   economic sector. With market driven tariffs, there will be a vast
   array of novel information services and applications:



     * from high cost services, whose premium prices are justified by
       the value of benefits delivered, to budget price products
       designed for mass consumption;




     * from services to the business community, which can be tailored to
       the needs of a specific customer, to standardised packages which
       will sell in high volumes at low prices;




     * from services and applications which employ existing
       infrastructure, peripherals and equipment (telephone and cable TV
       networks, broadcasting systems, personal computers, CD players
       and ordinary TV sets) to those which will be carried via new
       technologies, such as integrated broadband, as these are
       installed.



   Markets for business

   Large and small companies and professional users are already leading
   the way in exploiting the new technologies to raise the efficiency of
   their management and production systems. And more radical changes to
   business organisation and methods are on the way.



   Business awareness of these trends and opportunities is still lower
   in Europe compared to the US. Companies are not yet fully exploiting
   the potential for internal reorganisation and for adapting
   relationships with suppliers, contractors and customers. We have a
   lot of pent up demand to fill.





     Business awareness of these trends and opportunities is still
     lower in Europe compared to the US.





   In the business markets, teleconferencing is one good example of a
   business application worth promoting, while much effort is also being
   dedicated worldwide to the perfection of telecommerce and electronic
   document interchange (EDI).



   Both offer such cost and time advantages over traditional methods
   that, once applied, electronic procedures rapidly become the
   preferred way of doing business. According to some estimates,
   handling an electronic requisition is one tenth the cost of handling
   its paper equivalent, while an electronic mail (e-mail) message is
   faster, more reliable and can save 95% of the cost of a fax.



   Electronic payments systems are already ushering in the cashless
   society in some parts of Europe. We have a sizeable lead over the
   rest of the world in smart card technology and applications. This is
   an area of global market potential.



   Markets for small and medium sized enterprises

   Though Europe's 12 million SMEs are rightly regarded as the backbone
   of the European economy, they do need to manage both information and
   managerial resources better.



   They need to be linked to easy access, cost-effective networks
   providing information on production and market openings. The
   competitiveness of the whole industrial fabric would be sharpened if
   their relationships with large companies were based on the new
   technologies.



   Networked relationships with universities, research institutes and
   laboratories would boost their prospects even more by helping to
   remedy chronic R&D deficiencies. Networking will also diminish the
   isolation of SMEs in Europe's less advantaged regions, helping them
   to upgrade their products and find wider markets.



   Markets for consumers

   These are expected to be richly populated with services, from home
   banking and teleshopping to a near-limitless choice of entertainment
   on demand.



   In Europe, like the United States, mass consumer markets may emerge
   as one of the principal driving forces for the information society.
   American experience already shows that the development markets
   encounters a number of obstacles and uncertainties.



   Given the initial high cost of new pay-per-view entertainment
   services, and of the related equipment, as well as the high cost of
   bringing fibre optics to the home, a large mass consumer market will
   develop more easily if entertainment services are part of a broader
   package. This could also include information data, cultural
   programming, sporting events, as well as telemarketing and
   teleshopping. Pay-per-view for on-line services, as well as
   advertising, will both be necessary as a source of revenue. To some
   extent, existing satellite and telephone infrastructure can help to
   serve the consumer market in the initial phase.



   At the moment, this market is still only embryonic in Europe and is
   likely to take longer to grow than in the United States. There, more
   than 60% of households are tapped by cable TV systems which could
   also carry text and data services. In Europe, only 25% are similarly
   equipped, and this figure masks great differences between countries,
   e.g. Belgium (92%) and Greece (1-2%).



   Another statistic: in the United States there are 34 PCs per hundred
   citizens. The European figure overall is 10 per hundred, though the
   UK, for instance, at 22 per hundred, is closer to the US level of
   computer penetration.

   Lack of available information services and poor computer awareness
   could therefore prove handicaps in Europe. Telecommunication networks
   are, however, comparable in size and cover, but lag behind in terms
   of utilisation. These networks, therefore, can act as the basic port
   of access for the initial services, but stimulation of user
   applications is still going to be necessary.



   Such structural weaknesses need not halt progress. Europe's
   technological success with CD-ROM and CD-I could be the basis for a
   raft of non-networked applications and services during the early
   formative years of the information society. These services on disk
   have considerable export potential if Europe's audio-visual industry
   succeeds in countering current US dominance in titles.



   In terms of the market, France's Minitel network already offers an
   encouraging example that European consumers are prepared to buy
   information and transaction services on screen, if the access price
   is right. It reaches nearly 30 million private and business
   subscribers through six million small terminals and carries about
   15,000 different services. Minitel has created many new jobs,
   directly and indirectly, through boosting business efficiency and
   competitiveness.



   In the UK, the success of the Community-sponsored Homesteadprogramme,
   using CD-I, is indicative, as is the highly successful launch of (an
   American) dedicated cable teleshopping channel.



   Meanwhile in the US, where the consumer market is more advanced,
   video-on-demand and home shopping could emerge as the most popular
   services.



   Audio-visual markets

   Our biggest structural problem is the financial and organisational
   weakness of the European programme industry. Despite the enormous
   richness of the European heritage, and the potential of our creators,
   most of the programmes and most of the stocks of acquired rights are
   not in European hands. A fast growing European home market can
   provide European industry with an opportunity to develop a home base
   and to exploit increased possibilities for exports.



   Linguistic fragmentation of the market has long been seen as a
   disadvantage for Europe's entertainment and audio-visual industry,
   especially with English having an overwhelming dominance in the
   global market - a reflection of the US lead in production and,
   importantly, in distribution. This lead, which starts with cinema and
   continues withtelevision, is likely to be extended to the new
   audio-visual areas. However, once products can be easily accessible
   to consumers, there will be more opportunities for expression of the
   multiplicity of cultures and languages in which Europe abounds.





     ...once products can be easily accessible to consumers, there will
     be more opportunities for expression of the multiplicity of
     cultures and languages in which Europe abounds.





   Europe's audio-visual industry is also burdened with regulations.
   Some of these will soon be rendered obsolete by the development of
   new technologies, hampering the development of a dynamic European
   market.



   As a first step to stimulating debate on the new challenges, the
   Commission has produced a Green Paper on the audio-visual industry.


     _________________________________________________________________





                                  CHAPTER 2
                          A MARKET-DRIVEN REVOLUTION





A break with the past



   The Group is convinced that technological progress and the evolution
   of the market mean that Europe must make a break from policies based
   on principles which belong to a time before the advent of the
   information revolution.



   The key issue for the emergence of new markets is the need for a new
   regulatory environment allowing full competition. This will be a
   prerequisite for mobilising the private capital necessary for
   innovation, growth and development.



   In order to function properly, the new market requires that all
   actors are equipped to participate successfully, or at least that
   they do not start with significant handicaps. All should be able to
   operate according to clearrules, within a single, fair and
   competitive framework.





     The Group recommends Member States to accelerate the ongoing
     process of liberalisation of the telecom sector by:



     * opening up to competition infrastructures and services still in
       the monopoly area




     * removing non-commercial political burdens and budgetary
       constraints imposed on telecommunications operators




     * setting clear timetables and dead lines for the implementation
       of practical measures to achieve these goals





Ending monopoly



   This is as true for the telecommunications operators (TOs) as for
   others. It is now generally recognised as both necessary and
   desirable that the political burdens on them should be removed, their
   tariffs adjusted and a proper regulatory framework created. Even the
   operations of those TOs whose status has already evolved over recent
   years are not fully in line.



   It is possible to end monopoly. In future, all licensed public
   operators should assume their share of public service
   responsibilities (e.g. universal service obligation and the provision
   of equal access to networks and services).



   A competitive environment requires the following:



     * TOs relieved of political constraints, such as:



          + subsidising public functions;


          + external R&D activities;


          + contributions to land planning and management objectives;


          + the burden to carry alone the responsibility of universal
            service;





     * a proper regulatory framework designed to achieve:



          + market regulation to enable and to protect competition;


          + a predictable environment to make possible strategic
            planning and investment;





     * adjustment of tariffs.



Enabling the market



     The Group recommends the establishment at the European level of an
     authority whose terms of reference will require a prompt
     attention.





   In order for the market to operate successfully, the Group has
   identified the following objectives and recommendations:



   Evolution in the regulatory domain

   Identify and establish the minimum of regulation needed, at the
   European level, to ensure the rapid emergence of efficient European
   information infrastructures and services. The terms of reference of
   the authority which will be responsible for the enforcement of this
   regulation is a question that will require a prompt attention.



   The urgency of the matter is in direct relation to the prevailing
   market conditions. A clear requirement exists for the new "rules of
   the game" to be outlined as soon as possible. The market place will
   then be in a position to anticipate the forthcoming framework, and
   the opportunity will exist for those wishing to move rapidly to
   benefit from these efforts.



   The authority will need to address:



     * the regulation of those operations which, because of their
       Community-wide nature, need to be addressed at the European
       level, such as licensing, network interconnection when and where
       necessary, management of shared scarce resources (e.g.
       radio-frequency allocation, subscriber numbering and advice to
       Member States regulatory authorities on general issues.




     * a single regulatory framework valid for all operators, which
       would imply lifting unequal conditions for market access. It
       would also ensure that conditions for network access and service
       use be guided by the principles of transparency and
       non-discrimination, complemented by practical rules for dispute
       resolution and speedy remedy against abuse dominance.



   Interconnection and interoperability

   Two features are essential to the deployment of the information
   infrastructure needed by the information society: one is a seamless
   interconnection of networks and the other that the services and
   applications which build on them should be able to work together
   (interoperability).



   In the past the political will to interconnect national telephone
   networks resulted in hundreds of millions of subscriber connections
   world-wide. Similar political determination and corresponding effort
   are required to set up the considerably more complex information
   infrastructures.





     Interconnection of networks and interoperability of services and
     applications are recommended as primary Union objectives.





   The challenge is to provide interconnections for a variety of
   networking conditions (e.g. fixed and new type of networks, such as
   mobile and satellite) and basic services (e.g. Integrated Service
   Digital Network - ISDN). Currently, the positions of monopoly
   operators are being eroded in these fast-developing areas.



   Joint commercial decisions must be taken by the TOs without delay to
   ensure rapid extension of European basic services beyond telephony.
   This would improve their competitive position vis-‡-vis non-European
   players in their own markets.



   The European information society is emerging from many different
   angles. European infrastructure is evolving into an ever tighter web
   of networks, generic services, applications and equipment, the
   development, distribution and maintenance of which occupy a multitude
   of sources worldwide.



   In an efficient and expanding information infrastructure, such
   components should work together.



   Assembling the various pieces of this complex system to meet the
   challenge of interoperability would be impossible without clear
   conventions. Standards are such conventions.



   Open systems standards will play an essential role in building a
   European information infrastructure.



   Standards institutes have an honourable record in producing European
   standards, but the standardisation process as it stands today raises a
   number of concerns about fitness for purpose, lack of
   interoperability, and priority setting that is not sufficiently market
   driven.



   Action is required at three different levels:

     * at the level of operators, public procurement and investors:



       following the successful example of GSM digital mobile telephony,
       market players (industry, TOs, users) could establish Memoranda of
       Understanding (MoU) to set the specifications requirements for
       specific application objectives. These requirements would then
       provide input to the competent standardisation body. This type of
       mechanism would adequately respond to market needs.



       Operators, public procurement and investors should adopt unified
       open standard-based solutions for the provision and the
       procurement of information services in order to achieve global
       interoperability.



     * at the level of the European standards bodies:



       These should be encouraged to establish priorities based on market
       requirements and to identify publicly available specifications,
       originated by the market, which are suitable for rapid
       transformation into standards (e.g. through fast track
       procedures).



     * at the level of the Union:



       European standardisation policy should be reviewed in the light of
       the above. When the market is not providing acceptable technical
       solutions to achieve one of the European Union's objectives, a
       mechanism should be sought to select or generate suitable
       technologies.

   World-wide interoperability should be promoted and secured.





     The Group recommends a review of the European standardisation
     process in order to increase its speed and responsiveness to
     markets.





   Urgent action to adjust tariffs



     Reduction in international, long distance and leased line tariffs
     will trigger expansion in the usage of infrastructures, generating
     additional revenues, and simultaneously giving a major boost to
     generic services and innovative applications





   Reduction in international, long distance and leased line tariffs will
   trigger expansion in the usage of infrastructures, generating
   additional revenues, and simultaneously giving a major boost to
   generic services and innovative applications



   In most cases, the current unsatisfactory tariff situation results
   from the TOs' monopoly status and a variety of associated political
   constraints.



   The introduction of competitive provision of services and
   infrastructures implies that TOs would be able to adjust their tariffs
   in line with market conditions. Rebalancing of international and
   long-distance versus local tariffs is a critical step in this process.



     The Group recommends as a matter of urgency the adjustment of
     international, long distance and leased line tariffs to bring these
     down into line with rates practised in other advanced
     industrialised regions. Adjustment of tariffs should be accompanied
     by the fair sharing of public service obligations among operators.





   Two elements should accompany the process:

     * TOs freed from politically imposed budgetary constraints;

     * a fair and equitable sharing of the burden of providing universal
       services between all licensed operators.

   Fostering critical mass

   Market segments based on the new information infrastructures cannot
   provide an adequate return on investment without a certain level of
   demand. In most cases, competition alone will not provide such a mass,
   or it will provide it too slowly.



   A number of measures should be taken in order to reach this goal:

     * co-operation should be encouraged among competitors so as to
       create the required size and momentum in particular market areas.
       The already mentioned GSM MoU is an archetypal example of how
       positive this approach can be.

     * agreement between public administrations to achieve common
       requirements and specifications, and a commitment to use these in
       procurement at national and European levels.

     * extensive promotion and use of existing and forthcoming European
       networks and services.

     * awareness campaigns, notably directed at public administrations,
       SMEs and educational institutions.





   It is recommended to promote public awareness. Particular attention
   should be paid to the small and medium sized business sector, public
   administrations and the younger generation.



   In addition, everyone involved in building up the information society
   must be in a position to adapt strategies and forge alliances to
   enable them to contribute to, and benefit from, overall growth in the
   field.



   Secure the world-wide dimension

     The Group recommends that the openness of the European market should
     find its counterpart in markets and networks of other regions of
     the world. It is of paramount importance for Europe that adequate
     steps are taken to guarantee equal access.





   Since information infrastructures are borderless in an open market
   environment, the information society has an essentially global
   dimension.



   The actions advocated in this Report will lead to a truly open
   environment, where access is provided to all players. This openness
   should find its counterpart in markets and networks of other regions
   of the world. It is obviously of paramount importance for Europe that
   adequate steps are taken to guarantee equal access



Towards a positive outcome



   The responses outlined above to the challenges posed by the
   deployment of the information society will be positive for all
   involved in its creation and use.



   Telecommunications, cable and satellite operators will be in a
   position to take full advantage of market opportunities as they see
   fit, and to expand their market share.



   The service provider and content industries will be able to offer
   innovative products at attractive prices.



   Citizens and users will benefit from a broader range of competing
   services.



   Telecommunication equipment and software suppliers will see an
   expanding market.



   Those countries that have already opted for faster liberalisation,
   are experiencing rapidly expanding domestic markets that provide new
   opportunities for TOs, service providers and industry. For the
   others, the price to pay for a slower pace of liberalisation will be
   a stiffer challenge from more dynamic foreign competitors and a
   smaller domestic market. Time is running out. If action is not
   accelerated, many benefits will arrive late, or never.



   It is an essential recommendation of the Group that governments
   support accelerated liberalisation by drawing up clear timetables and
   deadlines with practical measures to obtain this goal.



   In this context, the 1993 Council Resolution remains a useful point
   of reference. Even before the specified dates, governments should
   take best advantage of its built inflexibility to seize the
   opportunities offered by a burgeoning competitive market. They should
   speed up the opening to competition of infrastructures and of those
   services that are still in the monopoly area, as well as remove
   political burdens imposed on their national TOs.





     In this context, the 1993 Council Resolution remains a useful
     point of reference. Even before the specified dates, governments
     should take best advantage of its built-in flexibility to seize
     the opportunities offered by a burgeoning competitive market. They
     should speed up the opening to competition of infrastructures and
     of those services that are still in the monopoly area, as well as
     remove political burdens imposed on their national TOs.




     _________________________________________________________________





                                  CHAPTER 3
                            COMPLETING THE AGENDA



   Several policy issues have to be faced in parallel with actions
   needed to create an open, competitive and market-driven information
   society. Disparate national regulatory reactions carry a very real
   threat of fragmentation to the internal market.



   Here there are two different sets of issues and problems: one
   relating to the business community, the other more to individuals and
   the information society, with specific reference to privacy.



   As we move into the information society, a regulatory response in key
   areas like intellectual property, privacy and media ownership is
   required at the European level in order to maximise the benefits of
   the single market for all players. Only the scale of the internal
   market is sufficient to justify and attract the required financing of
   high performance trans-European information networks.



   Therefore, applying single market principle of freedom of movement of
   all goods and services, to the benefit of Europeans everywhere, must
   be our key objective.





     The information society is global. The Group thus recommends that
     Union action should aim to establish a common and agreed
     regulatory framework for the protection of intellectual property
     rights, privacy and security of information, in Europe and, where
     appropriate internationally.





Protection of intellectual property rights (IPR)



   While there is a great deal of information that is in the public
   domain, there is also information containing added value which is
   proprietary and needs protection via the enforcement of intellectual
   property rights. IPRs are an important factor in developing a
   competitive European industry, both in the area of information
   technology and more generally across a wide variety of industrial and
   cultural sectors.



   Creativity and innovation are two of the Union's most important
   assets. Their protection must continue to be a high priority, on the
   basis of balanced solutions which do not impede the operation of
   market forces.



   The global nature of the services that will be provided through the
   information networks means that the Union will have to be party to
   international action to protect intellectual property. Otherwise,
   serious difficulties will arise if regulatory systems in different
   areas of the world are operating on incompatible principles which
   permit circumvention or create jurisdictional uncertainties.





     The Group believes that intellectual property protection must rise
     to the new challenges of globalisation and multimedia and must
     continue to have a high priority at both European and
     international levels.





   In this global information market place, common rules must be agreed
   and enforced by everyone. Europe has a vested interest in ensuring
   that protection of IPRs receives full attention and that a high level
   of protection is maintained. Moreover, as the technology advances,
   regular world-wide consultation with all interested parties, both the
   suppliers and the user communities, will be required.



   Initiatives already under way within Europe, such as the proposed
   Directive on the legal protection of electronic databases, should be
   completed as a matter of priority.



   Meanwhile, in order to stimulate the development of new multimedia
   products and services, existing legal regimes - both national and
   Union - will have to be re-examined to see whether they are
   appropriate to the new information society. Where necessary,
   adjustments will have to be made.



   In particular, the ease with which digitised information can be
   transmitted, manipulated and adapted requires solutions protecting
   the content providers. But, at the same time, flexibility and
   efficiency in obtaining authorisation for the exploitation ofworks
   will be a prerequisite for a dynamic European multimedia industry.



Privacy



   The demand for the protection of privacy will rightly increase as the
   potential of the new technologies to secure (even across national
   frontiers) and to manipulate detailed information on individuals from
   data, voice and image sources is realised. Without the legal security
   of a Union-wide approach, lack of consumer confidence will certainly
   undermine rapid development of the information society.



   Europe leads the world in the protection of the fundamental rights of
   the individual with regard to personal data processing. The
   application ofnew technologies potentially affects highly sensitive
   areas such as those dealing with the images of individuals, their
   communication, their movements and their behaviour. With this in
   mind, it is quite possible that most Member States will react to
   these developments by adopting protection, including trans-frontier
   control of new technologies and services.



   Disparities in the level of protection of such privacy rules create
   the risk that national authorities might restrict free circulation of
   a wide range of new services between Member States in order to
   protect personal data.





     The Group believes that without the legal security of a Union-wide
     approach, lack of consumer confidence will certainly undermine the
     rapid development of the information society. Given the importance
     andsensitivity of the privacy issue, a fast decision from Member
     States is required on the Commission's proposed Directive setting
     out general principles of data protection.





Electronic protection (encryption), legal protection and security



   Encryption is going to become increasingly important in assuring the
   development of the pay services. Encryption will ensure that only
   those who pay will receive the service. It will also provide
   protection against personal data falling into the public domain.



   International harmonisation would assist the market if it were to
   lead to a standard system of scrambling. Conditional access should
   ensure fair and open competition in the interests of consumers and
   service providers.



   Encryption is particularly important for telecommerce, which requires
   absolute guarantees in areas such as the integrity of signatures and
   text, irrevocable time and date stamping and international legal
   recognition.



   However, the increased use of encryption and the development of a
   single encryption system will increase the returns from hacking into
   the system to avoid payment or privacy restrictions. Without a legal
   framework that would secure service providers against piracy of their
   encryption system, there is the risk that they will not get involved
   in the development of these new services.





     The Group recommends acceleration of work at European level on
     electronic and legal protection as well as security.





   On the other hand, governments may need powers to override encryption
   for the purposes of fighting against crime and protecting national
   security.



   An answer given at a national level to this and to the hacking issue
   will inevitably prove to be insufficient because communications reach
   beyond national frontiers and because the principles of the internal
   market prohibit measures such as import bans on decoding equipment.



   Therefore, a solution at the European level is needed which provides
   a global answer to the problem of protection of encrypted signals and
   security. Based on the principles of the internal market it would
   create parity of conditions for the protection ofencrypted services
   as well as the legal framework for the development of these new
   services.



Media ownership



   In addition to ownership controls to prevent monopoly abuse, most
   countries have rules on media and cross media ownership to preserve
   pluralism and freedom of expression.



   In practice, these rules are a patchwork of inconsistency which tend
   to distort and fragment the market. They impede companies from taking
   advantage of the opportunities offered by the internal market,
   especially in multimedia, and could put them in jeopardy vis-‡-vis
   non-European competitors.



   In current circumstances, there is a risk of each Member State
   adopting purely national legislation in response to the new problems
   and challenges posed by the information society. Urgent attention has
   to be given to the question of how we can avoid such an undermining
   of the internal market and ensure effective rules which protect
   pluralism and competition.



   Rules at the European level are going to be crucial, given the
   universality of the information society and its inherently
   transborder nature. The Union will have to lead the way in heading
   off deeper regulatory disparity. In so doing it will reinforce the
   legal security that is vital for the global competitiveness of
   Europe's media industry.





     The Group believes that urgent attention should be given to the
     question of how we can avoid divergent national legislation on
     media ownership undermining the internal market. Effective rules
     must emerge to protect pluralism and competition.





The role of competition policy



   Competition policy is a key element in Union strategy. It is
   especially important for consolidating the single market and for
   attracting the private capital necessary for the growth of the
   trans-European information infrastructure.



   Areas of the information society are beset by intense globalising
   pressures. These affect both European and non-European companies
   operating inside the Union. If appropriate, the notion of a global,
   rather than a Union-wide, market should now be used inassessing
   European competition issues such as market power, joint ventures and
   alliances.





     Competition Policy is a key element in Europe's strategy. The
     Group recommends that the application of competition rules should
     reflect the reality of the newly emerging global markets and the
     speed of change in the environment.





   The aim should not be to freeze any set of regulations, but rather to
   establish procedures and policies through which the exploding
   dynamism of the sector can be translated into greater opportunities
   for wealth and job creation.



   Like other commercial players, companies involved in the supply of
   technologies and services must be in a position to adapt their
   strategies and to forge alliances to enable them to contribute to,
   and to benefit from, overall growth in the sector in the framework of
   competition policy.



Technology



   The technological base in Europe today is sufficient to launch the
   applications proposed in this reports without delay. They must focus
   on realistic systems on a sufficient scale to explore the value of
   the services offered to the user, and to evaluate the economic
   feasibility of the new information systems.



   However, new technologies do still have to be developed for their
   full-scale introduction following these demonstrations. In
   particular, the usability and cost-effectiveness of the systems must
   be improved, and the consequences of mass use further investigated.



   The research programmes of the Union and of Member States, in
   particular the Fourth Framework Programme, should be implemented in
   such a way as to take into account market requirements. Technical
   targets and the timing of projects must be defined with appropriate
   user involvement.


     _________________________________________________________________





                                  CHAPTER 4
                            THE BUILDING BLOCKS OF
                           THE INFORMATION SOCIETY



   Communications systems combined with advanced information
   technologies are keys to the information society. The constraints of
   time and distance have been removed by networks (e.g. telephone,
   satellites, cables) which carry the information, basic services (e.g.
   electronic mail, interactive video) which allow people to use the
   networks and applications (e.g. distance learning, teleworking) which
   offer dedicated solutions for user groups.



The opportunity for the Union - strengthening its existing networks and
accelerating the creationof new ones



   ISDN: a first step

   The traditional telephone network is changing its character. Having
   been built as a universal carrier for voice, it now has to meet the
   communication requirements of a modern economy going far beyond
   simple telephone calls.



   One important development is the Integrated Service Digital Network
   ISDN. This offers the opportunity to send not only voice, but also
   data and even moving images through telephone lines.



   ISDN is particularly suited for the communications needs of small and
   medium sized enterprises. It permits, for example, direct PC to PC
   communication, for instant, low-cost transmission of documents.
   Teleworking using ISDN services can be attractive to a wide range of
   businesses. ISDN is also an ideal support for distance learning.



   EURO-ISDN, based on common standards, started at the end of 1993.

   A number of European countries have a leading position which should
   be exploited.





     The Group recommends priority extension of the availability of
     EURO-ISDN, in line with current Commission proposals, and
     reductions in tariffs to foster the market.





   Broadband: the path to multimedia

   ISDN is only the first step. New multimedia services, for instance
   high quality video communications, require even more performance.
   ISDN is showing the way, and the next technological wave aims for
   themultimedia-world. This is integrated broadband communications,
   providing an opportunity to combine all media in a flexible way. The
   lead technology to implement this is called Asynchronous Transfer
   Mode (ATM).



   European industry and telecoms operators are at the forefront of
   these technological developments and should reap the benefits.



   Europe needs to develop an ATM broadband infrastructure as the
   backbone of the information society. Multimedia services offered
   through these networks will support the work and leisure activities
   of all our citizens.



   In many European countries, highly developed broadband distribution
   already exists in the form of cable and satellite networks, or it is
   being deployed. Application of currently available sophisticated
   digital techniques, such as picture compression and digital signal
   transmission, will easily enable these networks to fulfill mainstream
   demands for interactive individual information and leisure uses.



   The present situation is mainly characterised by national and
   regional initiatives. The first trials of transnational networks have
   taken place only recently.





     The Group recommends that the Council supports the implementation
     of the European broadband infrastructure and secure its
     interconnectivity with the whole of European telecom, cable
     television and satellite networks.



     A European Broadband Steering Committee involving all relevant
     actors should be set up in order to develop a common vision and to
     monitor and facilitate the realisation of the overall concept
     through, in particular, demonstrations and, choice and definition
     of standards.





   Mobile communication: a growing field

   Mobile communication is growing at breathtaking speed. The number of
   mobile telephone subscribers has doubled over the past three years to
   8 million. At current growth rates of 30-40%, the Union will soon
   have 40 million users.



   Europe is becoming an important leader in mobile communications
   through adoption around the world of its standards for digital
   communications. In particular, GSM is an excellent demonstration of
   how a common Europe-wide public/private initiative can be
   successfully transformed into a market driven, job creating
   operation.



   In Germany, the country where GSM is currently having most success,
   about 30,000 new jobs have been created. On similar assumptions,
   Europe-wide introduction on the same scale would generate more than
   100,000 new jobs.



   Satellites: widening the scope of communications

   Satellites are mainly used for television broadcasting, Earth
   observation and telecommunications. The crucial advantage of
   satellites is their wide geographical coverage without the need for
   expensive terrestrial networks. Satellites have many advantages for
   providing rural and remote areas with advanced communications.



   Full exploitation of satellites can only be achieved by a new phase
   in the Union's satellite policy. The objective should be to develop
   trans-European networks.





     With regard to mobile and satellite communications, the Group
     recommends:



     * a reduction in tariffs for mobile communications;


     * promotion of GSM, in Europe and internationally;


     * the establishment of a regulatory ramework for satellite
       communications;


     * urging the European satellite industry to develop common
       priority projects and to participate actively in the development
       of worldwide systems.





New basic services are needed



   New basic services such as e-mail, file transfer and interactive
   multimedia are needed. The necessary technology is available. New
   networks are developing, such as ISDN, eliminating the present
   limitations of the telephone network.



   Two basic elements are needed for such services: unambiguous
   standards and critical mass. The attraction of a telecommunications
   service depends directly on the number of other compatible users.
   Thus, a new service cannot really take off until a certain number of
   customers has subscribed to the service. Once this critical mass has
   been achieved, growth rates can increase dramatically, as in the case
   of INTERNET.



   INTERNET is based on a world-wide network of networks that is not
   centrally planned. In fact, nobody owns INTERNET. There are now some
   20 million users in more than 100 countries. The network offers
   electronic mail, discussion fora, information exchange and much more.
   INTERNET is so big, and growing so fast, that it cannot be ignored.
   Nevertheless, it has flaws, notably serious security problems. Rather
   than remaining merely clients, we in Europe should consider following
   the evolution of INTERNET closely, playing a more active role in the
   development of interlinkages.





     The Group recommends urgent and coherent action at both European
     and Member State levels to promote the provision and widespread
     use of standard, trans-European basic services, including
     electronic mail, file transfer and video services.



     The Commission is recommended to initiate the creation of a
     "European Basic Services Forum" to accelerate the availability of
     unified standards for basic services.





   Significant advantages for the whole economy could be realised quite
   quickly through extension of Europe-wide compatible basic services.



Blazing the trail - ten applications to launch the information society



   Today technology is in search of applications. At the same time,
   societies are searching for solutions to problems based on
   intelligent information.



   Tariff reductions will facilitate the creation of new applications
   and so overcome the present low rate of capacity utilisation. Voice
   lines operate, for instance, an average of 20 minutes in 24 hours,
   while some value-added network services are only working at 20% of
   capacity.



   However, confident as we are of the necessity to liberate market
   forces, heightened competition will not by itself produce -or produce
   too slowly- the critical mass which has the power to drive investment
   in new networks and services.



   We can only create a virtuous circle of supply and demand if a
   significant number of market testing applications based on
   information networks and services can be launched across Europe to
   create critical mass.





     We can only create a virtuous circle of supply and demand if a
     significant number of market testing applications based on
     information networks and services can be launched across Europe to
     create critical mass.





   Demonstration Function

   Initiatives taking the form of experimental applications are the most
   effective means of addressing the slow take-off of demand and supply.
   They have a demonstration function which would help to promote
   theirwider use; they provide an early test bed for suppliers to
   fine-tune applications to customer requirements, and they can
   stimulate advanced users, still relatively few in number in Europe as
   compared to the US.



   It is necessary to involve local, metropolitan and regional
   administrations in their development. Cities can have an extremely
   important role in generating early demand and also in promoting an
   awareness among their citizens of the advantages of the newservices.
   In certain cases, local administrations could demonstrate the
   benefits by assuming the role of the first mass user.



   To be truly effective, such applications need to be launched in real
   commercial environments, preferably on a large scale. These
   initiatives are not pilot projects in the traditional sense. The
   first objective is to test the value to the user, and the economic
   feasibility of the information systems.



   As the examples in the following pages demonstrate, it is possible to
   identify initiatives which will rapidly develop new applications and
   markets, while also impacting positively on the creation of new jobs
   and businesses.



   The private sector is ready to embark on the initiatives needed.



   Priority applications can be divided in two main blocks, according to
   final users:



     * the personal home market (interactiv and transaction applications
       related to teleshopping, telebanking, entertainment, leisure)


     * business and social applications.



   Priority applications should also contribute to a number of
   macro-economic objectives:



     * strengthening industrial competitive ness and promoting the
       creation of new jobs


     * promoting new forms of work organisation


     * improving quality of life and quality of the environment


     * responding to social needs and raising the efficiency and
       cost-effectiveness of public services.





Application One
TELEWORKING
More jobs, new jobs, for a mobile society



   What should be done? Promote teleworking in homes and satellite
   offices so that commuters no longer need to travel long distances to
   work. From there, they can connect electronically to whatever
   professional environment they need, irrespective of the system in
   use.



   Who will do it?If the telecom operators make available the required
   networks at competitive prices, the private sector will set up new
   service companies to supply teleworking support.



   Who gains? Companies (both large and SMEs) and public
   administrations will benefit from productivity gains, increased
   flexibility, cost savings. For the general public, pollution levels,
   traffic congestion and energy consumption will be reduced. For
   employees, more flexible working arrangements will be particularly
   beneficial for all those tied to the home, and for people in remote
   locations the narrowing of distances will help cohesion.



   Issues to watch? Problems arising from decreased opportunities for
   social contact and promotion will have to be addressed. Impact on
   labour legislation and social security provision will need to be
   assessed.



   What target? Create pilot teleworking centres in 20 cities by end
   1995 involving at least 20,000 workers. The aim is for 2% of white
   collar workers to be teleworkers by 1996; 10 million teleworking jobs
   by the year 2000.



Application Two
DISTANCE LEARNING
Life long learning for a changing society



   What should be done? Promote distance learning centres providing
   courseware, training and tuition services tailored for SMEs, large
   companies and public administrations. Extend advanced distance
   learning techniques into schools and colleges.



   Who will do it?Given the required network tariffs at competitive
   prices, industry will set up new service provider companies to supply
   distance learning services for vocational training. European
   Commission should support quality standards for programmes and
   courses and help create a favourable environment. Private sector
   providers and public authorities will enter the distance education
   market, offering networked and CD-I and CD-ROM interactive disk based
   programming and content at affordable prices.



   Who gains? Industry (specially SMEs) and public administrations, by
   cost reductions and optimisation of the use of scarce training and
   education resources. Employees needing to upgrade their skills by
   taking advantage of lifelong learning programmes. People tied to the
   home and in remote locations. Students accessing higher quality
   teaching.



   Issues to Watch? Need to engage in a major effort to train the
   trainers and expand computer literacy among the teaching profession.

   What target?Pilot projects in at least 5 countries by 1995. Distance
   learning in use by 10% of SMEs and public administrations by 1996.
   Awareness campaigns among the professional associations and education
   authorities.





Application Three
A NETWORK FOR UNIVERSITIES AND RESEARCH CENTRES
Networking Europe's brain power



   What should be done? Development of a trans-European advanced
   network (high bandwidth, high definition, carrying interactive
   multimedia services) linking universities and research centres
   across Europe, with open access to their libraries.



   Who will do it? Providing broadband networks and high speed lines
   are available at competitive rates, universities and research centres
   will set up the networks. Private companies, large and small, could
   also link their laboratories with universities and research centres.
   A trans-European public library network can also be envisaged.



   Who gains? The productivity of research programmes through broader
   team creation leading to synergies between institutions. Society in
   general through more efficient diffusion of research findings and
   knowledge.



   Issues to watch? Giving due consideration to IPR protection as the
   accumulated stock of human knowledge becomes more readily accessible.



   What target? Thirty per cent of European universities and research
   centres linked through advanced communications networks by 1997.
   Extension to other European countries as this becomes technologically
   feasible.



Application Four
TELEMATIC SERVICES FOR SMEs
Relaunching a main engine for growth and employment in Europe



   What should be done? Promote the widest possible use of telematic
   services (E-mail, file transfer, EDI, video conferencing, distance
   learning, etc.) by European SMEs, with links to public authorities,
   trade associations, customers and suppliers. Raise the awareness of
   addedvalue services, and communications in general, among SMEs.
   Increase access to trans-European data networks.



   Who will do it?If the necessary ISDN networks are available at
   competitive rates, the private sector will provide trans-European
   value-added services tailored for SMEs. Local government, Chambers of
   Commerce and trades associations linking SMEs will mount programmes
   for integrating information networks at the localand regional level,
   promoting awareness campaigns for the services available.



   Who gains? SMEs will be able to compete on a more equal basis with
   larger companies and captive contractor-supplier relationships will
   be weakened. They will be more competitive, will grow faster and
   create more jobs. Relationships with administrations will be simpler
   and more productive. The category will gain in public standing and
   influence.



   What target? Access to Trans-European telematic services for SMEs
   available by end 1994-1995. 40% of SMEs (firms with more than 50
   employees) using telematic networks by 1996. SME links with
   administration networks prioritised.

Application Five
ROAD TRAFFIC MANAGEMENT
Electronic roads for better quality of life



   What should be done? Establish telematic solutions on a European
   scale for advanced road traffic management systems and other
   transport services (driver information, route guidance, fleet
   management, road pricing, etc.).



   Who will do it? European, national and regional administrations,
   user groups and traffic operators will create a Steering Committee
   and define a common open system architecture for advanced telematic
   services with common user interfaces.



   Who gains? Drivers, local communities (especially in heavily
   congested areas) and industry will benefit from reduction in traffic,
   increased road safety, lower environmental costs, energy and time
   saving.



   What target? Implementation of telematic systems for road traffic
   management in 10 metropolitan areas and 2,000 km of motorway by 1996.
   30 metropolitan areas and the trans-European motorway network by the
   year 2000.



Application Six
AIR TRAFFIC CONTROL
An electronic airway for Europe



   What should be done? Create a European Air Traffic Communication
   System providing ground-ground connections between all European Air
   Traffic control centres (ATC) and air-ground connections between
   aeroplanes, ATC-centres across the European Union and the European
   Civil Aviation Conference, with the aim of achieving a unified
   trans-European air traffic control system.



   Who will do it? The European Council should promote energetically
   the creation of a reduced number of networked European Air Traffic
   centres, as defined by EUROCONTROL.



   Who gains?The European air transport industry - and its millions of
   passengers - will benefit from better air traffic management and
   significantly reduced energy consumption. A safer system, with less
   congestion and subsequent reductions in time wasted, noise and fume
   pollution.



   Issues to watch? There is a need to co-ordinate closely with the
   defence sector.



   What target? Set up a Steering Committee with representatives of
   public authorities, civil and military aviation authorities, the air
   transport industry and unions byend 1994. Definition of standards for
   communication procedures and the exchange of data and voice messages
   between ATC-centres as well as between ATC-centres and aeroplanes.

   A functioning trans-European system before the year 2000.



Application Seven
HEALTHCARE NETWORKS
Less costly and more effective healthcare systems for Europe's citizens



   What should be done? Create a direct communication "network of
   networks" based on common standards linking general practitioners,
   hospitals and social centres on a European scale.



   Who will do it? The private sector, insurance companies, medical
   associations and Member State healthcare systems, with the European
   Union promoting standards and portable applications. Once telecom
   operators make available the required networks at reduced rates, the
   private sector will create competitively priced services at a
   European level, boosting the productivity and cost-effectiveness of
   the whole healthcare sector.



   Who gains? Citizens as patients will benefit from a substantial
   improvement in healthcare (improvement in diagnosis through on-line
   access to European specialists, on-line reservation of analysis and
   hospital services by practitioners extended on European scale,
   transplant matching, etc.). Tax payers and public administrations
   will benefit from tighter cost control and cost savings in healthcare
   spending and a speeding up of reimbursement procedures.



   Issues to watch? Privacy and the confidentiality of medical records
   will need to be safeguarded.



   What target?Major private sector health care providers linked on a
   European scale. First level implementation of networks in Member
   States linking general practitioners, specialists and hospitals at a
   regional and national level by end 1995.



Application Eight
ELECTRONIC TENDERING
More effective administration at lower cost



   What should be done? Introduction of electronic procedures for
   public procurement between public administrations and suppliers in
   Europe followed by the creation of a European Electronic Tendering
   Network. This programme will function as a strong enabling mechanism
   for attaining critical mass in the telematic services market in
   Europe.



   Who will do it? European Council and Member States decide to agree
   on common standards and to introduce a mandatory commitment to
   electronic handling of information, bidding and payments related to
   public procurement. Telecom operators and service providers will
   enableusers to access to the European Electronic Tendering Network.



   Who gains?PublicAdministrations will benefit from cost savings in
   replacing paper handling with electronic handling and from the more
   competitive environment between suppliers drawn from the wider
   internal market. Small and medium sized enterprises will benefit from
   participating in trans-European public procurement and from the
   diffusion of telematic services.



   Issues to watch? Data security, the need to ensure open access
   particularly for SMEs, to avoid electronic procurement developing
   into a hidden form of protectionism. Take proper account of similar
   programmes developed in third countries, particularly the US (CALS).



   What target? A critical mass of 10% of awarding authorities using
   electronic procedures for their procurement needs could be attained
   in the next two to three years.



Application Nine
TRANS-EUROPEAN PUBLIC ADMINISTRATION NETWORK
Better government, cheaper government



   What should be done? Interconnected networks between Public
   Administrations networks in Europe, aiming at providing an effective
   and less expensive (replacement of paper by electronic means)
   information interchange. Subsequently extended to link public
   administrations and European citizens.



   Who will do it?European Union and Member States should strengthen
   and speed up the implementation of the programme for Interchange of
   Data between Administrations (IDA). The private sector will increase
   its co-operation with the European Union and Member States in
   defining technical solutions for the provision of interoperable
   services and interconnectable networks, while supporting national and
   local authorities in the testing and implementation of networks and
   services for citizens.



   Who gains?The unification process for the single market, with
   general benefits in lower costs and better relations between public
   administrations and European citizens.



   What target? Implementation of interconnected networks allowing
   interchange in the tax, customs and excise, statistical, social
   security, health care domains, etc., by 1995-96.

Application Ten
CITY INFORMATION HIGHWAYS
Bringing the information society into the home



   What should be done? Set up networks providing households with a
   network access system and the means of using on-line multimedia and
   entertainment services on a local, regional, and national and
   international basis.



   Who will do it? Groups of content and service providers
   (broadcasters, publishers), network operators (telecoms
   organisations, cable), system suppliers/integrators (e.g. consumer
   electronic industry). Local and regional authorities, citizens
   groups, chambers of commerce and industry, will have very important
   roles to play.



   Who gains? Consumers will enjoy early experience of complex new
   services, particulary multimedia services, and will be able to
   express their preferences in the fields of entertainment (video on
   demand), transaction-oriented services (banking, home shopping etc.)
   as well as gaining access to information services and teleworking or
   telelearning.

   Public authorities will gain experience with issues such as privacy,
   IPR protection, standardisation which will be helpful in defining a
   single legal and regulatory environment.

   Private sector participants will gain early hands-on experience of
   consumer preferences for programmes, software and services. User
   interfaces can be tested and improved in practice.



   What target? Install and operate in up to five European cities with
   up to 40,000 households per city by 1997.


     _________________________________________________________________





                                  CHAPTER 5
      FINANCING THE INFORMATION SOCIETY - A TASK FOR THE PRIVATE SECTOR



   It is neither possible nor necessary at this stage to be precise
   about the amount of investment that will be generated by the
   development of the information infrastructure and related services
   and applications. Analyses made of the US market remain highly
   questionable, although there is no doubt that the total investment
   required over the next 5 to 10 years will be considerable.

   The Group believes the creation of the information society in Europe
   should be entrusted to the private sector and to market forces.





     The Group believes the creation of the information society in
     Europe should be entrusted to the private sector and to market
     forces.





   Private capital will be available to fund new telecoms services and
   infrastructures providing that the different elements of this
   Report's Action Plan are implemented so that:



     * market liberalisation is fast and credible


     * rules for interoperability and reciprocal access are set


     * tariffs are adjusted


     * the regulatory framework is established





   There will be no need for public subsidies, because sufficient
   confidence will have been established to attract the required
   investment from private sources.



   Ultimately, it is market growth that is perceived as the real
   guarantee for private investors, rendering subsidies and monopolies
   superfluous.



   Public investment will assume a role, but not by any increase in the
   general level of public spending - rather by a refocusing of existing
   expenditure. Indeed, some of the investment that public authorities
   will have to undertake to develop applications in areas of their own
   responsibility will generate productivity gains and an improvement in
   the quality of services that should, if properly handled, lead to
   savings.



   In addition to some refocusing of expenditure on R&D, modest amounts
   of public money may also be useful to support awareness campaigns
   mainly directed at small and medium sized businesses and individual
   consumers.





     The Group recommends refocusing existing public funding more
     specifically to target the requirements of the information
     society. At the Union level, this may require some reorientation
     of current allocations under such headings as the Fourth Framework
     Programme for research and development and the Structural Funds.





   The same is true for expenditure at the European Union which can
   achieve important results by a better focusing of existing resources,
   including finance available under both the Fourth Framework Programme
   funding R&D, and under the Structural Funds.



   The Commission has also proposed limited support for some of the
   services and applications included in the Group's Action Plan from
   funds linked to the promotion of trans-European networks. These
   proposals deserve support.


     _________________________________________________________________





                                  CHAPTER 6
                                  FOLLOW-UP



   With this Report the Group has completed its mandate and provided
   recommendations for action. Our recommendations should be regarded as
   a coherent whole, the full benefits of which can only be reaped if
   action is taken in all areas.





     Given the urgency and importance of the tasks ahead, the Group
     believes that at Union level there must be one Council capable of
     dealing with the full range of issues associated with the
     information society. With this in mind, each Member States may
     wish to nominate a single minister to represent it in a Council of
     Ministers dedicated to the information society. The Commission
     should act similarly.



     The Group calls for the establishment by the Commission of a Board
     composed of eminent figures from all sectors concerned, including
     the social partners, to work on the framework for implementing the
     information society and to promote public awareness of its
     opportunities and challenges. This Board should report at regular
     intervals to the institutions of the Union on progress made on the
     implementation of the recommendations contained in this report.




     _________________________________________________________________





                 AN ACTION PLAN - SUMMARY OF RECOMMENDATIONS





Regulatory Framework



   Evolving the regulatory domain



   Member States should accelerate the ongoing process of liberalisation
   of the Telecom sector by :

     * opening up to competition infrastructures and services still in
       the monopoly area

     * removing non-commercial political burdens and budgetary
       constraints imposed on telecommunications operators

     * setting clear timetables and deadlines for the implementation of
       practical measures to achieve these goals.

   An authority should be established at European level whose terms of
   reference will require prompt attention.



   Interconnection and Interoperability



   Interconnection of networks and interoperability of services and
   applications should be primary Union objectives. The European
   standardisation process should be reviewed in order to increase its
   speed and responsiveness to markets.



   Tariffs



   As a matter of urgency the international, long distance and leased
   line tariffs should be adjusted to bring these down into line with
   rates practised in other advanced industrialised regions. The
   adjustment should be accompanied by the fair sharing of public service
   obligations among operators.



   Critical Mass



   Public awareness should be promoted. Particular attention should be
   paid to the small and medium-sized business sector, public
   administrations and the younger generation.



   Worldwide Dimension



   The openness of the European market should find its counterpart in
   markets and networks of other regions of the world. It is of paramount
   importance for Europe that adequate steps should be taken to guarantee
   equal access.





Completing the agenda



   The Information Society is global. Union action should aim to
   establish a common and agreed regulatory framework for the protection
   of intellectual property rights, privacy and security of information
   in Europe and, where appropriate, internationally.



   IPRs

   Intellectual property protection must rise to the new challenges of
   globalisation and multimedia, and must continue to have a high
   priority at both European and international levels.



   Privacy

   Without the legal security of a Union-wide approach, lack of consumer
   confidence will certainly undermine the rapid development of the
   information society. Given the importance and sensitivity of the
   privacy issue, a fast decision from Member States is required on the
   Commission's proposed Directive setting out general principles of data
   protection.



   Electronic protection, legal protection and security



   Work at the European level on electronic and legal protection as well
   as security should be accelerated.



   Media ownership

   Urgent attention should be given to the question of how we can avoid
   divergent national legislation on media ownership undermining the
   internal market. Effective rules must emerge to protect pluralism and
   competition.



   Competition

   Competition is a key element in Europe's strategy. The application of
   competition rules should reflect the reality of the newly emerging
   global markets and the speed of change in the environment.





Building blocks



   Networks



   Priority has to be given to the extension of the availability of
   EURO-ISDN, in line with current Commission proposals, and reductions
   in tariffs to foster the market.



   The Council should support the implementation of the European
   Broadband Infrastructure and secure its interconnectivity with the
   whole of European telecom, cable television and satellite networks.

   A European Broadband Steering Committee involving all relevant actors
   should be set up in order to develop a common vision and to monitor
   and facilitate the realisation of the overall concept through, in
   particular, demonstrations, and choice and definition of standards.



   With regard to mobile and satellite communications :

     * tariffs for mobile communications should be reduced

     * GSM should be promoted in Europe and internationally

     * a regulatory framework for satellite communications should be
       established

     * the European satellite industry should be urged to develop common
       priority projects and to participate actively in the development
       of world-wide systems.



   Basic services



   The provision and widespread use of standard trans-European basic
   services, including electronic mail, file transfer, video services,
   should be promoted by urgent and coherent action at both the European
   and Member State levels.



   The Commission should initiate the creation of a " European Basic
   Services Forum" to accelerate the availability of unified standards
   for basic services.



   Applications



   Initiatives in the application domain are the most effective means of
   addressing the slow take-off of demand and supply. They have a
   demonstration function which would help promoting their use. The Group
   has identified the following initiatives :

     * Teleworking

     * Distance learning

     * University and research networks

     * Telematic services for SMEs

     * Road traffic management

     * Air traffic control

     * Health care networks

     * Electronic tendering

     * Trans-European public administration network

     * City information highways.



Financing



   The creation of the information society should be entrusted to the
   private sector and to the market forces.



   The existing public funding should be refocused more specifically to
   target the requirements of the information society. At the Union
   level, this may require some reorientation of current allocations
   under such headings as the Fourth Framework Programme for research and
   development and the Structural Funds.





Follow-up



   Given the urgency and importance of the tasks ahead, there must be, at
   Union level, one Council capable of dealing with the full range of
   issues associated with the information society. With this in mind,
   each Member State may wish to nominate a single minister to represent
   it in a Council of Ministers dedicated to the information society. The
   Commission should act similarly.



   A Board composed of eminent figures from all sectors concerned,
   including the social partners, should be established by the Commission
   to work on the framework for implementing the information society and
   to promote public awareness of its opportunities and challenges. This
   Board should report at regular intervals to the institutions of the
   Union on progress made on the implementation of the recommendations
   contained in this Report.