Directive 2002-22

CHAPTER I

SCOPE, AIMS AND DEFINITIONS

Article 1
Scope and aims

1. Within the framework of Directive 2002/21/EC (Framework Directive), this Directive concerns the provision of
electronic communications networks and services to end-users. The aim is to ensure the availability throughout the Community of good quality publicly available services through effective competition and choice and to deal with circumstances in which the needs of end-users are not satisfactorily met by the market.

2. This Directive establishes the rights of end-users and the corresponding obligations on undertakings providing publicly available electronic communications networks and services. With regard to ensuring provision of universal service within an environment of open and competitive markets, this Directive defines the minimum set of services of specified quality to which all end-users have access, at an affordable (1) OJ L 115, 17.4.1998, p. 31. (2) OJ L 184, 17.7.1999, p. 23. L 108/58 EN Official Journal of the European Communities 24.4.2002 price in the light of specific national conditions, without distorting competition. This Directive also sets out obligations with regard to the provision of certain mandatory services such as the retail provision of leased lines.

Article 2
Definitions

For the purposes of this Directive, the definitions set out in Article 2 of Directive 2002/21/EC (Framework Directive) shall apply. The following definitions shall also apply:

(a) .public pay telephone. means a telephone available to the general public, for the use of which the means of payment
may include coins and/or credit/debit cards and/or pre-payment cards, including cards for use with dialling codes;

(b) .public telephone network. means an electronic communications network which is used to provide publicly available telephone services; it supports the transfer between network termination points of speech communications, and also other forms of communication, such as facsimile and data;

(c) .publicly available telephone service. means a service available to the public for originating and receiving
national and international calls and access to emergency services through a number or numbers in a national or international telephone numbering plan, and in addition may, where relevant, include one or more of the following services: the provision of operator assistance, directory enquiry services, directories, provision of public pay
phones, provision of service under special terms, provision of special facilities for customers with disabilities or with
special social needs and/or the provision of non-geographic services;

(d) .geographic number. means a number from the national numbering plan where part of its digit structure contains geographic significance used for routing calls to the physical location of the network termination point (NTP);

(e) .network termination point. (NTP) means the physical point at which a subscriber is provided with access to a public
communications network; in the case of networks involving switching or routing, the NTP is identified by means of a specific network address, which may be linked to a subscriber number or name;

(f) .non-geographic numbers. means a number from the national numbering plan that is not a geographic number. It includes inter alia mobile, freephone and premium rate numbers.

CHAPTER II

_*UNIVERSAL SERVICE OBLIGATIONS INCLUDING SOCIAL
OBLIGATIONS*_

Article 3
Availability of universal service

1. Member States shall ensure that the services set out in this Chapter are made available at the quality specified to all end-users in their territory, independently of geographical location, and, in the light of specific national conditions, at an affordable price.

2. Member States shall determine the most efficient and appropriate approach for ensuring the implementation of universal service, whilst respecting the principles of objectivity, transparency, non-discrimination and proportionality. They shall seek to minimise market distortions, in particular the provision of services at prices or subject to other terms and conditions which depart from normal commercial conditions, whilst safeguarding the public interest.

Article 4
Provision of access at a fixed location

1. Member States shall ensure that all reasonable requests for connection at a fixed location to the public telephone network and for access to publicly available telephone services at a fixed location are met by at least one undertaking.

2. The connection provided shall be capable of allowing end-users to make and receive local, national and international
telephone calls, facsimile communications and data communications, at data rates that are sufficient to permit functional Internet access, taking into account prevailing technologies used by the majority of subscribers and technological feasibility.

Article 5
Directory enquiry services and directories

1. Member States shall ensure that:

(a) at least one comprehensive directory is available to
end-users in a form approved by the relevant authority,
whether printed or electronic, or both, and is updated on a
regular basis, and at least once a year;
24.4.2002 EN Official Journal of the European Communities L 108/59

(b) at least one comprehensive telephone directory enquiry
service is available to all end-users, including users of
public pay telephones.

2. The directories in paragraph 1 shall comprise, subject to
the provisions of Article 11 of Directive 97/66/EC, all
subscribers of publicly available telephone services.

3. Member States shall ensure that the undertaking(s)
providing the services referred to in paragraph 1 apply the
principle of non-discrimination to the treatment of
information that has been provided to them by other
undertakings.

Article 6
Public pay telephones

1. Member States shall ensure that national regulatory
authorities can impose obligations on undertakings in order to
ensure that public pay telephones are provided to meet the
reasonable needs of end-users in terms of the geographical
coverage, the number of telephones, the accessibility of such
telephones to disabled users and the quality of services.

2. A Member State shall ensure that its national regulatory
authority can decide not to impose obligations under
paragraph 1 in all or part of its territory, if it is satisfied that
these facilities or comparable services are widely available, on
the basis of a consultation of interested parties as referred to in
Article 33.

3. Member States shall ensure that it is possible to make
emergency calls from public pay telephones using the single
European emergency call number .112. and other national
emergency numbers, all free of charge and without having to
use any means of payment.

Article 7
Special measures for disabled users

1. Member States shall, where appropriate, take specific
measures for disabled end-users in order to ensure access to
and affordability of publicly available telephone services,
including access to emergency services, directory enquiry
services and directories, equivalent to that enjoyed by other
end-users.

2. Member States may take specific measures, in the light of
national conditions, to ensure that disabled end-users can also
take advantage of the choice of undertakings and service
providers available to the majority of end-users.

Article 8
Designation of undertakings

1. Member States may designate one or more undertakings
to guarantee the provision of universal service as identified in
Articles 4, 5, 6 and 7 and, where applicable, Article 9(2) so
that the whole of the national territory can be covered.
Member States may designate different undertakings or sets of
undertakings to provide different elements of universal service
and/or to cover different parts of the national territory.

2. When Member States designate undertakings in part or
all of the national territory as having universal service
obligations, they shall do so using an efficient, objective,
transparent and non-discriminatory designation mechanism,
whereby no undertaking is a priori excluded from being
designated. Such designation methods shall ensure that
universal service is provided in a cost-effective manner and
may be used as a means of determining the net cost of the
universal service obligation in accordance with Article 12.

Article 9
Affordability of tariffs

1. National regulatory authorities shall monitor the
evolution and level of retail tariffs of the services identified in
Articles 4, 5, 6 and 7 as falling under the universal service
obligations and provided by designated undertakings, in
particular in relation to national consumer prices and income.

2. Member States may, in the light of national conditions,
require that designated undertakings provide tariff options or
packages to consumers which depart from those provided
under normal commercial conditions, in particular to ensure
that those on low incomes or with special social needs are not
prevented from accessing or using the publicly available
telephone service.

3. Member States may, besides any provision for designated
undertakings to provide special tariff options or to comply
with price caps or geographical averaging or other similar
schemes, ensure that support is provided to consumers
identified as having low incomes or special social needs.

4. Member States may require undertakings with obligations
under Articles 4, 5, 6 and 7 to apply common tariffs,
including geographical averaging, throughout the territory, in
the light of national conditions or to comply with price caps.
5. National regulatory authorities shall ensure that, where a
designated undertaking has an obligation to provide special
L 108/60 EN Official Journal of the European Communities 24.4.2002
tariff options, common tariffs, including geographical
averaging, or to comply with price caps, the conditions are
fully transparent and are published and applied in accordance
with the principle of non-discrimination. National regulatory
authorities may require that specific schemes be modified or
withdrawn.

Article 10
Control of expenditure

1. Member States shall ensure that designated undertakings,
in providing facilities and services additional to those referred
to in Articles 4, 5, 6, 7 and 9(2), establish terms and
conditions in such a way that the subscriber is not obliged to
pay for facilities or services which are not necessary or not
required for the service requested.

2. Member States shall ensure that designated undertakings
with obligations under Articles 4, 5, 6, 7 and 9(2) provide the
specific facilities and services set out in Annex I, Part A, in
order that subscribers can monitor and control expenditure
and avoid unwarranted disconnection of service.

3. Member States shall ensure that the relevant authority is
able to waive the requirements of paragraph 2 in all or part of
its national territory if it is satisfied that the facility is widely
available.

Article 11
Quality of service of designated undertakings

1. National regulatory authorities shall ensure that all
designated undertakings with obligations under Articles 4, 5,
6, 7 and 9(2) publish adequate and up-to-date information
concerning their performance in the provision of universal
service, based on the quality of service parameters, definitions
and measurement methods set out in Annex III. The published
information shall also be supplied to the national regulatory
authority.

2. National regulatory authorities may specify, inter alia,
additional quality of service standards, where relevant
parameters have been developed, to assess the performance of
undertakings in the provision of services to disabled end-users
and disabled consumers. National regulatory authorities shall
ensure that information concerning the performance of
undertakings in relation to these parameters is also published
and made available to the national regulatory authority.

3. National regulatory authorities may, in addition, specify
the content, form and manner of information to be published,
in order to ensure that end-users and consumers have access
to comprehensive, comparable and user-friendly information.

4. National regulatory authorities shall be able to set
performance targets for those undertakings with universal
service obligations at least under Article 4. In so doing,
national regulatory authorities shall take account of views of
interested parties, in particular as referred to in Article 33.

5. Member States shall ensure that national regulatory
authorities are able to monitor compliance with these
performance targets by designated undertakings.

6. Persistent failure by an undertaking to meet performance
targets may result in specific measures being taken in
accordance with Directive 2002/20/EC of the European
Parliament and of the Council of 7 March 2002 on the
authorisation of electronic communications networks and
services (Authorisation Directive) (1). National regulatory
authorities shall be able to order independent audits or similar
reviews of the performance data, paid for by the undertaking
concerned, in order to ensure the accuracy and comparability
of the data made available by undertakings with universal
service obligations.

Article 12
Costing of universal service obligations

1. Where national regulatory authorities consider that the
provision of universal service as set out in Articles 3 to 10
may represent an unfair burden on undertakings designated to
provide universal service, they shall calculate the net costs of
its provision.
For that purpose, national regulatory authorities shall:

(a) calculate the net cost of the universal service obligation,
taking into account any market benefit which accrues to
an undertaking designated to provide universal service, in
accordance with Annex IV, Part A; or

(b) make use of the net costs of providing universal service
identified by a designation mechanism in accordance with
Article 8(2).

2. The accounts and/or other information serving as the
basis for the calculation of the net cost of universal service
obligations under paragraph 1(a) shall be audited or verified by
(1) See page 21 of this Official Journal.
24.4.2002 EN Official Journal of the European Communities L 108/61
the national regulatory authority or a body independent of the
relevant parties and approved by the national regulatory
authority. The results of the cost calculation and the
conclusions of the audit shall be publicly available.

Article 13
Financing of universal service obligations

1. Where, on the basis of the net cost calculation referred
to in Article 12, national regulatory authorities find that an
undertaking is subject to an unfair burden, Member States
shall, upon request from a designated undertaking, decide:

(a) to introduce a mechanism to compensate that undertaking
for the determined net costs under transparent conditions
from public funds; and/or

(b) to share the net cost of universal service obligations
between providers of electronic communications networks
and services.

2. Where the net cost is shared under paragraph 1(b),
Member States shall establish a sharing mechanism
administered by the national regulatory authority or a body
independent from the beneficiaries under the supervision of
the national regulatory authority. Only the net cost, as
determined in accordance with Article 12, of the obligations
laid down in Articles 3 to 10 may be financed.

3. A sharing mechanism shall respect the principles of
transparency, least market distortion, non-discrimination and
proportionality, in accordance with the principles of Annex IV,
Part B. Member States may choose not to require contributions
from undertakings whose national turnover is less than a set
limit.

4. Any charges related to the sharing of the cost of
universal service obligations shall be unbundled and identified
separately for each undertaking. Such charges shall not be
imposed or collected from undertakings that are not providing
services in the territory of the Member State that has
established the sharing mechanism.

Article 14
Transparency

1. Where a mechanism for sharing the net cost of universal
service obligations as referred to in Article 13 is established,
national regulatory authorities shall ensure that the principles
for cost sharing, and details of the mechanism used, are
publicly available.

2. Subject to Community and national rules on business
confidentiality, national regulatory authorities shall ensure that
an annual report is published giving the calculated cost of
universal service obligations, identifying the contributions
made by all the undertakings involved, and identifying any
market benefits, that may have accrued to the undertaking(s)
designated to provide universal service, where a fund is
actually in place and working.

Article 15
Review of the scope of universal service

1. The Commission shall periodically review the scope of
universal service, in particular with a view to proposing to the
European Parliament and the Council that the scope be
changed or redefined. A review shall be carried out, on the
first occasion within two years after the date of application
referred to in Article 38(1), second subparagraph, and
subsequently every three years.

2. This review shall be undertaken in the light of social,
economic and technological developments, taking into
account, inter alia, mobility and data rates in the light of the
prevailing technologies used by the majority of subscribers.
The review process shall be undertaken in accordance with
Annex V. The Commission shall submit a report to the
European Parliament and the Council regarding the outcome
of the review.

CHAPTER III

_*REGULATORY CONTROLS ON UNDERTAKINGS WITH
SIGNIFICANT MARKET POWER IN SPECIFIC MARKETS*_

Article 16
Review of obligations

1. Member States shall maintain all obligations relating to:

(a) retail tariffs for the provision of access to and use of the
public telephone network, imposed under Article 17 of
Directive 98/10/EC of the European Parliament and of the
Council of 26 February 1998 on the application of open
network provision (ONP) to voice telephony and on
universal service for telecommunications in a competitive
environment (1);

(b) carrier selection or pre-selection, imposed under Directive
97/33/EC of the European Parliament and of the Council
of 30 June 1997 on interconnection in
telecommunications with regard to ensuring universal
(1) OJ L 101, 1.4.1998, p. 24.
L 108/62 EN Official Journal of the European Communities 24.4.2002
service and interoperability through application of the
principles of open network provision (ONP) (1);

(c) leased lines, imposed under Articles 3, 4, 6, 7, 8 and 10 of
Directive 92/44/EEC,
until a review has been carried out and a determination made
in accordance with the procedure in paragraph 3 of this
Article.

2. The Commission shall indicate relevant markets for the
obligations relating to retail markets in the initial
recommendation on relevant product and service markets and
the Decision identifying transnational markets to be adopted in
accordance with Article 15 of Directive 2002/21/EC
(Framework Directive).

3. Member States shall ensure that, as soon as possible after
the entry into force of this Directive, and periodically
thereafter, national regulatory authorities undertake a market
analysis, in accordance with the procedure set out in Article
16 of Directive 2002/21/EC (Framework Directive) to
determine whether to maintain, amend or withdraw the
obligations relating to retail markets. Measures taken shall be
subject to the procedure referred to in Article 7 of Directive
2002/21/EC (Framework Directive).

Article 17
Regulatory controls on retail services

1. Member States shall ensure that, where:
(a) as a result of a market analysis carried out in accordance
with Article 16(3) a national regulatory authority
determines that a given retail market identified in
accordance with Article 15 of Directive 2002/21/EC
(Framework Directive) is not effectively competitive, and
(b) the national regulatory authority concludes that obligations
imposed under Directive 2002/19/EC (Access Directive), or
Article 19 of this Directive would not result in the
achievement of the objectives set out in Article 8 of
Directive 2002/21/EC (Framework Directive),
national regulatory authorities shall impose appropriate
regulatory obligations on undertakings identified as having
significant market power on a given retail market in
accordance with Article 14 of Directive 2002/21/EC
(Framework Directive).

2. Obligations imposed under paragraph 1 shall be based
on the nature of the problem identified and be proportionate
and justified in the light of the objectives laid down in Article
8 of Directive 2002/21/EC (Framework Directive). The
obligations imposed may include requirements that the
identified undertakings do not charge excessive prices, inhibit
market entry or restrict competition by setting predatory
prices, show undue preference to specific end-users or
unreasonably bundle services. National regulatory authorities
may apply to such undertakings appropriate retail price cap
measures, measures to control individual tariffs, or measures to
orient tariffs towards costs or prices on comparable markets,
in order to protect end-user interests whilst promoting
effective competition.

3. National regulatory authorities shall, on request, submit
information to the Commission concerning the retail controls
applied and, where appropriate, the cost accounting systems
used by the undertakings concerned.

4. National regulatory authorities shall ensure that, where
an undertaking is subject to retail tariff regulation or other
relevant retail controls, the necessary and appropriate cost
accounting systems are implemented. National regulatory
authorities may specify the format and accounting
methodology to be used. Compliance with the cost accounting
system shall be verified by a qualified independent body.
National regulatory authorities shall ensure that a statement
concerning compliance is published annually.

5. Without prejudice to Article 9(2) and Article 10, national
regulatory authorities shall not apply retail control mechanisms
under paragraph 1 of this Article to geographical or user
markets where they are satisfied that there is effective
competition.

Article 18
Regulatory controls on the minimum set of leased lines

1. Where, as a result of the market analysis carried out in
accordance with Article 16(3), a national regulatory authority
determines that the market for the provision of part or all of
the minimum set of leased lines is not effectively competitive,
it shall identify undertakings with significant market power in
the provision of those specific elements of the minimum set of
leased lines services in all or part of its territory in accordance
with Article 14 of Directive 2002/21/EC (Framework
Directive). The national regulatory authority shall impose
obligations regarding the provision of the minimum set of
leased lines, as identified in the list of standards published in
the Official Journal of the European Communities in accordance
with Article 17 of Directive 2002/21/EC (Framework
Directive), and the conditions for such provision set out in
(1) OJ L 199, 26.7.1997, p. 32. Directive as amended by Directive
98/61/EC (OJ L 268, 3.10.1998, p. 37).
24.4.2002 EN Official Journal of the European Communities L 108/63
Annex VII to this Directive, on such undertakings in relation
to those specific leased line markets.

2. Where as a result of the market analysis carried out in
accordance with Article 16(3), a national regulatory authority
determines that a relevant market for the provision of leased
lines in the minimum set is effectively competitive, it shall
withdraw the obligations referred to in paragraph 1 in relation
to this specific leased line market.

3. The minimum set of leased lines with harmonised
characteristics, and associated standards, shall be published in
the Official Journal of the European Communities as part of the
list of standards referred to in Article 17 of Directive
2002/21/EC (Framework Directive). The Commission may
adopt amendments necessary to adapt the minimum set of
leased lines to new technical developments and to changes in
market demand, including the possible deletion of certain
types of leased line from the minimum set, acting in
accordance with the procedure referred to in Article 37(2) of
this Directive.

Article 19
Carrier selection and carrier pre-selection

1. National regulatory authorities shall require undertakings
notified as having significant market power for the provision
of connection to and use of the public telephone network at a
fixed location in accordance with Article 16(3) to enable their
subscribers to access the services of any interconnected
provider of publicly available telephone services:

(a) on a call-by-call basis by dialling a carrier selection code;
and

(b) by means of pre-selection, with a facility to override any
pre-selected choice on a call-by-call basis by dialling a
carrier selection code.

2. User requirements for these facilities to be implemented
on other networks or in other ways shall be assessed in
accordance with the market analysis procedure laid down in
Article 16 of Directive 2002/21/EC (Framework Directive) and
implemented in accordance with Article 12 of Directive
2002/19/EC (Access Directive).

3. National regulatory authorities shall ensure that pricing
for access and interconnection related to the provision of the
facilities in paragraph 1 is cost oriented and that direct charges
to subscribers, if any, do not act as a disincentive for the use
of these facilities.

CHAPTER IV

END-USER INTERESTS AND RIGHTS

Article 20
Contracts

1. Paragraphs 2, 3 and 4 apply without prejudice to
Community rules on consumer protection, in particular
Directives 97/7/EC and 93/13/EC, and national rules in
conformity with Community law.

2. Member States shall ensure that, where subscribing to
services providing connection and/or access to the public
telephone network, consumers have a right to a contract with
an undertaking or undertakings providing such services. The
contract shall specify at least:

(a) the identity and address of the supplier;

(b) services provided, the service quality levels offered, as well
as the time for the initial connection;

(c) the types of maintenance service offered;

(d) particulars of prices and tariffs and the means by which
up-to-date information on all applicable tariffs and
maintenance charges may be obtained;

(e) the duration of the contract, the conditions for renewal
and termination of services and of the contract;

(f) any compensation and the refund arrangements which
apply if contracted service quality levels are not met; and

(g) the method of initiating procedures for settlement of
disputes in accordance with Article 34.
Member States may extend these obligations to cover other
end-users.

3. Where contracts are concluded between consumers and
electronic communications services providers other than those
providing connection and/or access to the public telephone
network, the information in paragraph 2 shall also be included
in such contracts. Member States may extend this obligation to
cover other end-users.

4. Subscribers shall have a right to withdraw from their
contracts without penalty upon notice of proposed
modifications in the contractual conditions. Subscribers shall
be given adequate notice, not shorter than one month, ahead
L 108/64 EN Official Journal of the European Communities 24.4.2002
of any such modifications and shall be informed at the same
time of their right to withdraw, without penalty, from such
contracts, if they do not accept the new conditions.

Article 21
Transparency and publication of information

1. Member States shall ensure that transparent and
up-to-date information on applicable prices and tariffs, and on
standard terms and conditions, in respect of access to and use
of publicly available telephone services is available to end-users
and consumers, in accordance with the provisions of Annex II.

2. National regulatory authorities shall encourage the
provision of information to enable end-users, as far as
appropriate, and consumers to make an independent
evaluation of the cost of alternative usage patterns, by means
of, for instance, interactive guides.

Article 22
Quality of service

1. Member States shall ensure that national regulatory
authorities are, after taking account of the views of interested
parties, able to require undertakings that provide publicly
available electronic communications services to publish
comparable, adequate and up-to-date information for end-users
on the quality of their services. The information shall, on
request, also be supplied to the national regulatory authority in
advance of its publication.

2. National regulatory authorities may specify, inter alia, the
quality of service parameters to be measured, and the content,
form and manner of information to be published, in order to
ensure that end-users have access to comprehensive,
comparable and user-friendly information. Where appropriate,
the parameters, definitions and measurement methods given in
Annex III could be used.

Article 23
Integrity of the network

Member States shall take all necessary steps to ensure the
integrity of the public telephone network at fixed locations
and, in the event of catastrophic network breakdown or in
cases of force majeure, the availability of the public telephone
network and publicly available telephone services at fixed
locations. Member States shall ensure that undertakings
providing publicly available telephone services at fixed
locations take all reasonable steps to ensure uninterrupted
access to emergency services.

Article 24
Interoperability of consumer digital television equipment

In accordance with the provisions of Annex VI, Member States
shall ensure the interoperability of the consumer digital
television equipment referred to therein.

Article 25
Operator assistance and directory enquiry services

1. Member States shall ensure that subscribers to publicly
available telephone services have the right to have an entry in
the publicly available directory referred to in Article 5(1)(a).

2. Member States shall ensure that all undertakings which
assign telephone numbers to subscribers meet all reasonable
requests to make available, for the purposes of the provision of
publicly available directory enquiry services and directories, the
relevant information in an agreed format on terms which are
fair, objective, cost oriented and non-discriminatory.

3. Member States shall ensure that all end-users provided
with a connection to the public telephone network can access
operator assistance services and directory enquiry services in
accordance with Article 5(1)(b).

4. Member States shall not maintain any regulatory
restrictions which prevent end-users in one Member State from
accessing directly the directory enquiry service in another
Member State.

5. Paragraphs 1, 2, 3 and 4 apply subject to the
requirements of Community legislation on the protection of
personal data and privacy and, in particular, Article 11 of
Directive 97/66/EC.

Article 26
Single European emergency call number

1. Member States shall ensure that, in addition to any other
national emergency call numbers specified by the national
regulatory authorities, all end-users of publicly available
telephone services, including users of public pay telephones,
are able to call the emergency services free of charge, by using
the single European emergency call number .112..

2. Member States shall ensure that calls to the single
European emergency call number .112. are appropriately
answered and handled in a manner best suited to the national
organisation of emergency systems and within the
technological possibilities of the networks.
24.4.2002 EN Official Journal of the European Communities L 108/65

3. Member States shall ensure that undertakings which
operate public telephone networks make caller location
information available to authorities handling emergencies, to
the extent technically feasible, for all calls to the single
European emergency call number .112..

4. Member States shall ensure that citizens are adequately
informed about the existence and use of the single European
emergency call number .112..

Article 27
European telephone access codes

1. Member States shall ensure that the .00. code is the
standard international access code. Special arrangements for
making calls between adjacent locations across borders
between Member States may be established or continued. The
end-users of publicly available telephone services in the
locations concerned shall be fully informed of such
arrangements.

2. Member States shall ensure that all undertakings that
operate public telephone networks handle all calls to the
European telephony numbering space, without prejudice to the
need for an undertaking that operates a public telephone
network to recover the cost of the conveyance of calls on its
network.

Article 28
Non-geographic numbers

Member States shall ensure that end-users from other Member
States are able to access non-geographic numbers within their
territory where technically and economically feasible, except
where a called subscriber has chosen for commercial reasons
to limit access by calling parties located in specific
geographical areas.

Article 29
Provision of additional facilities

1. Member States shall ensure that national regulatory
authorities are able to require all undertakings that operate
public telephone networks to make available to end-users the
facilities listed in Annex I, Part B, subject to technical feasibility
and economic viability.

2. A Member State may decide to waive paragraph 1 in all
or part of its territory if it considers, after taking into account
the views of interested parties, that there is sufficient access to
these facilities.

3. Without prejudice to Article 10(2), Member States may
impose the obligations in Annex I, Part A, point (e),
concerning disconnection as a general requirement on all
undertakings.

Article 30
Number portability

1. Member States shall ensure that all subscribers of
publicly available telephone services, including mobile services,
who so request can retain their number(s) independently of the
undertaking providing the service:

(a) in the case of geographic numbers, at a specific location;
and

(b) in the case of non-geographic numbers, at any location.
This paragraph does not apply to the porting of numbers
between networks providing services at a fixed location and
mobile networks.

2. National regulatory authorities shall ensure that pricing
for interconnection related to the provision of number
portability is cost oriented and that direct charges to
subscribers, if any, do not act as a disincentive for the use of
these facilities.

3. National regulatory authorities shall not impose retail
tariffs for the porting of numbers in a manner that would
distort competition, such as by setting specific or common
retail tariffs.

Article 31
.Must carry. obligations

1. Member States may impose reasonable .must carry.
obligations, for the transmission of specified radio and
television broadcast channels and services, on undertakings
under their jurisdiction providing electronic communications
networks used for the distribution of radio or television
broadcasts to the public where a significant number of
end-users of such networks use them as their principal means
to receive radio and television broadcasts. Such obligations
shall only be imposed where they are necessary to meet clearly
defined general interest objectives and shall be proportionate
and transparent. The obligations shall be subject to periodical
review.

2. Neither paragraph 1 of this Article nor Article 3(2) of
Directive 2002/19/EC (Access Directive) shall prejudice the
ability of Member States to determine appropriate
remuneration, if any, in respect of measures taken in
accordance with this Article while ensuring that, in similar
L 108/66 EN Official Journal of the European Communities 24.4.2002
circumstances, there is no discrimination in the treatment of
undertakings providing electronic communications networks.
Where remuneration is provided for, Member States shall
ensure that it is applied in a proportionate and transparent
manner.

CHAPTER V

GENERAL AND FINAL PROVISIONS

Article 32
Additional mandatory services

Member States may decide to make additional services, apart
from services within the universal service obligations as
defined in Chapter II, publicly available in its own territory
but, in such circumstances, no compensation mechanism
involving specific undertakings may be imposed.

Article 33
Consultation with interested parties

1. Member States shall ensure as far as appropriate that
national regulatory authorities take account of the views of
end-users, and consumers (including, in particular, disabled
users), manufacturers, undertakings that provide electronic
communications networks and/or services on issues related to
all end-user and consumer rights concerning publicly available
electronic communications services, in particular where they
have a significant impact on the market.

2. Where appropriate, interested parties may develop, with
the guidance of national regulatory authorities, mechanisms,
involving consumers, user groups and service providers, to
improve the general quality of service provision by, inter alia,
developing and monitoring codes of conduct and operating
standards.

Article 34
Out-of-court dispute resolution

1. Member States shall ensure that transparent, simple and
inexpensive out-of-court procedures are available for dealing
with unresolved disputes, involving consumers, relating to
issues covered by this Directive. Member States shall adopt
measures to ensure that such procedures enable disputes to be
settled fairly and promptly and may, where warranted, adopt a
system of reimbursement and/or compensation. Member States
may extend these obligations to cover disputes involving other
end-users.

2. Member States shall ensure that their legislation does not
hamper the establishment of complaints offices and the
provision of on-line services at the appropriate territorial level
to facilitate access to dispute resolution by consumers and
end-users.

3. Where such disputes involve parties in different Member
States, Member States shall coordinate their efforts with a view
to bringing about a resolution of the dispute.

4. This Article is without prejudice to national court
procedures.

Article 35
Technical adjustment

Amendments necessary to adapt Annexes I, II, III, VI and VII
to technological developments or to changes in market
demand shall be adopted by the Commission, acting in
accordance with the procedure referred to in Article 37(2).

Article 36
Notification, monitoring and review procedures

1. National regulatory authorities shall notify to the
Commission by at the latest the date of application referred to
in Article 38(1), second subparagraph, and immediately in the
event of any change thereafter in the names of undertakings
designated as having universal service obligations under Article
8(1).
The Commission shall make the information available in a
readily accessible form, and shall distribute it to the
Communications Committee referred to in Article 37.

2. National regulatory authorities shall notify to the
Commission the names of operators deemed to have
significant market power for the purposes of this Directive,
and the obligations imposed upon them under this Directive.
Any changes affecting the obligations imposed upon
undertakings or of the undertakings affected under the
provisions of this Directive shall be notified to the
Commission without delay.

3. The Commission shall periodically review the functioning
of this Directive and report to the European Parliament and to
the Council, on the first occasion not later than three years
24.4.2002 EN Official Journal of the European Communities L 108/67
after the date of application referred to in Article 38(1), second
subparagraph. The Member States and national regulatory
authorities shall supply the necessary information to the
Commission for this purpose.

Article 37
Committee

1. The Commission shall be assisted by the
Communications Committee, set up by Article 22 of Directive
2002/21/EC (Framework Directive).

2. Where reference is made to this paragraph, Articles 5
and 7 of Decision 1999/468/EC shall apply, having regard to
the provisions of Article 8 thereof.
The period laid down in Article 5(6) of Decision 1999/468/EC
shall be three months.

3. The Committee shall adopt its rules of procedure.

Article 38
Transposition

1. Member States shall adopt and publish the laws,
regulations and administrative provisions necessary to comply
with this Directive by 24 July 2003 at the latest. They shall
forthwith inform the Commission thereof.
They shall apply those measures from 25 July 2003.

2. When Member States adopt these measures, they shall
contain a reference to this Directive or be accompanied by
such a reference on the occasion of their official publication.
The methods of making such a reference shall be laid down by
the Member States.

3. Member States shall communicate to the Commission the
text of the provisions of national law which they adopt in the
field governed by this Directive and of any subsequent
modifications to those provisions.

Article 39
Entry into force

This Directive shall enter into force on the day of its
publication in the Official Journal of the European Communities.

Article 40
Addressees

This Directive is addressed to the Member States.
Done at Brussels, 7 March 2002.
For the European Parliament
The President
P. COX
For the Council
The President
J. C. APARICIO
L 108/68 EN Official Journal of the European Communities 24.4.2002

ANNEX I

_*DESCRIPTION OF FACILITIES AND SERVICES REFERRED TO IN ARTICLE 10 (CONTROL OF
EXPENDITURE) AND ARTICLE 29 (ADDITIONAL FACILITIES)*_

Part A: Facilities and services referred to in Article 10

(a) Itemised billing
Member States are to ensure that national regulatory authorities, subject to the requirements of relevant legislation
on the protection of personal data and privacy, may lay down the basic level of itemised bills which are to be
provided by designated undertakings (as established in Article 8) to consumers free of charge in order that they
can:

allow verification and control of the charges incurred in using the public telephone network at a fixed location
and/or related publicly available telephone services, and

(ii) adequately monitor their usage and expenditure and thereby exercise a reasonable degree of control over their
bills.
Where appropriate, additional levels of detail may be offered to subscribers at reasonable tariffs or at no charge.
Calls which are free of charge to the calling subscriber, including calls to helplines, are not to be identified in the
calling subscriber's itemised bill.

(b) Selective call barring for outgoing calls, free of charge
I.e. the facility whereby the subscriber can, on request to the telephone service provider, bar outgoing calls of
defined types or to defined types of numbers free of charge.

(c) Pre-payment systems
Member States are to ensure that national regulatory authorities may require designated undertakings to provide
means for consumers to pay for access to the public telephone network and use of publicly available telephone
services on pre-paid terms.

(d) Phased payment of connection fees
Member States are to ensure that national regulatory authorities may require designated undertakings to allow
consumers to pay for connection to the public telephone network on the basis of payments phased over time.

(e) Non-payment of bills
Member States are to authorise specified measures, which are to be proportionate, non-discriminatory and
published, to cover non-payment of telephone bills for use of the public telephone network at fixed locations.
These measures are to ensure that due warning of any consequent service interruption or disconnection is given to
the subscriber beforehand. Except in cases of fraud, persistent late payment or non-payment, these measures are to
ensure, as far as is technically feasible, that any service interruption is confined to the service concerned.
Disconnection for non-payment of bills should take place only after due warning is given to the subscriber.
Member States may allow a period of limited service prior to complete disconnection, during which only calls that
do not incur a charge to the subscriber (e.g. .112. calls) are permitted.
Part B: List of facilities referred to in Article 29

(a) Tone dialling or DTMF (dual-tone multi-frequency operation)
I.e. the public telephone network supports the use of DTMF tones as defined in ETSI ETR 207 for end-to-end
signalling throughout the network both within a Member State and between Member States.
24.4.2002 EN Official Journal of the European Communities L 108/69

(b) Calling-line identification
I.e. the calling party's number is presented to the called party prior to the call being established.
This facility should be provided in accordance with relevant legislation on protection of personal data and privacy,
in particular Directive 97/66/EC.
To the extent technically feasible, operators should provide data and signals to facilitate the offering of calling-line
identity and tone dialling across Member State boundaries.
L 108/70 EN Official Journal of the European Communities 24.4.2002

ANNEX II

INFORMATION TO BE PUBLISHED IN ACCORDANCE WITH ARTICLE 21
(TRANSPARENCY AND PUBLICATION OF INFORMATION)

The national regulatory authority has a responsibility to ensure that the information in this Annex is published, in
accordance with Article 21. It is for the national regulatory authority to decide which information is to be published by
the undertakings providing public telephone networks and/or publicly available telephone services and which
information is to be published by the national regulatory authority itself, so as to ensure that consumers are able to
make informed choices.

1. Name(s) and address(es) of undertaking(s)
I.e. names and head office addresses of undertakings providing public telephone networks and/or publicly
available telephone services.

2. Publicly available telephone services offered

2.1. Scope of the publicly available telephone service
Description of the publicly available telephone services offered, indicating what is included in the subscription
charge and the periodic rental charge (e.g. operator services, directories, directory enquiry services, selective call
barring, itemised billing, maintenance, etc.).

2.2. Standard tariffs covering access, all types of usage charges, maintenance, and including details of standard
discounts applied and special and targeted tariff schemes.

2.3. Compensation/refund policy, including specific details of any compensation/refund schemes offered.

2.4. Types of maintenance service offered.

2.5. Standard contract conditions, including any minimum contractual period, if relevant.

3. Dispute settlement mechanisms including those developed by the undertaking.

4. Information about rights as regards universal service, including the facilities and services mentioned in Annex I.
24.4.2002 EN Official Journal of the European Communities L 108/71

ANNEX III

QUALITY OF SERVICE PARAMETERS

Supply-time and quality-of-service parameters, definitions and measurement methods referred to
Articles 11 and 22
Parameter (1) Definition Measurement method
Supply time for initial connection ETSI EG 201 769-1 ETSI EG 201 769-1
Fault rate per access line ETSI EG 201 769-1 ETSI EG 201 769-1
Fault repair time ETSI EG 201 769-1 ETSI EG 201 769-1
Unsuccessful call ratio (2) ETSI EG 201 769-1 ETSI EG 201 769-1
Call set up time (2) ETSI EG 201 769-1 ETSI EG 201 769-1
Response times for operator services ETSI EG 201 769-1 ETSI EG 201 769-1
Response times for directory enquiry services ETSI EG 201 769-1 ETSI EG 201 769-1
Proportion of coin and card operated public pay
telephones in working order
ETSI EG 201 769-1 ETSI EG 201 769-1
Bill correctness complaints ETSI EG 201 769-1 ETSI EG 201 769-1

(1) Parameters should allow for performance to be analysed at a regional level (i.e. no less than Level 2 in the Nomenclature of
Territorial Units for Statistics (NUTS) established by Eurostat).

(2) Member States may decide not to require that up-to-date information concerning the performance for these two parameters be kept,
if evidence is available to show that performance in these two areas is satisfactory.
Note: Version number of ETSI EG 201 769-1 is 1.1.1 (April 2000).
L 108/72 EN Official Journal of the European Communities 24.4.2002

ANNEX IV

_*CALCULATING THE NET COST, IF ANY, OF UNIVERSAL SERVICE OBLIGATIONS AND ESTABLISHING
ANY RECOVERY OR SHARING MECHANISM IN ACCORDANCE WITH ARTICLES 12 AND 13*_

Part A: Calculation of net cost
Universal service obligations refer to those obligations placed upon an undertaking by a Member State which concern
the provision of a network and service throughout a specified geographical area, including, where required, averaged
prices in that geographical area for the provision of that service or provision of specific tariff options for consumers
with low incomes or with special social needs.
National regulatory authorities are to consider all means to ensure appropriate incentives for undertakings (designated
or not) to provide universal service obligations cost efficiently. In undertaking a calculation exercise, the net cost of
universal service obligations is to be calculated as the difference between the net cost for a designated undertaking of
operating with the universal service obligations and operating without the universal service obligations. This applies
whether the network in a particular Member State is fully developed or is still undergoing development and expansion.
Due attention is to be given to correctly assessing the costs that any designated undertaking would have chosen to
avoid had there been no universal service obligation. The net cost calculation should assess the benefits, including
intangible benefits, to the universal service operator.
The calculation is to be based upon the costs attributable to:

elements of the identified services which can only be provided at a loss or provided under cost conditions falling
outside normal commercial standards.
This category may include service elements such as access to emergency telephone services, provision of certain
public pay telephones, provision of certain services or equipment for disabled people, etc;

(ii) specific end-users or groups of end-users who, taking into account the cost of providing the specified network and
service, the revenue generated and any geographical averaging of prices imposed by the Member State, can only be
served at a loss or under cost conditions falling outside normal commercial standards.
This category includes those end-users or groups of end-users which would not be served by a commercial
operator which did not have an obligation to provide universal service.
The calculation of the net cost of specific aspects of universal service obligations is to be made separately and so as to
avoid the double counting of any direct or indirect benefits and costs. The overall net cost of universal service
obligations to any undertaking is to be calculated as the sum of the net costs arising from the specific components of
universal service obligations, taking account of any intangible benefits. The responsibility for verifying the net cost lies
with the national regulatory authority.
Part B: Recovery of any net costs of universal service obligations
The recovery or financing of any net costs of universal service obligations requires designated undertakings with
universal service obligations to be compensated for the services they provide under non-commercial conditions.
Because such a compensation involves financial transfers, Member States are to ensure that these are undertaken in an
objective, transparent, non-discriminatory and proportionate manner. This means that the transfers result in the least
distortion to competition and to user demand.
In accordance with Article 13(3), a sharing mechanism based on a fund should use a transparent and neutral means for
collecting contributions that avoids the danger of a double imposition of contributions falling on both outputs and
inputs of undertakings.
The independent body administering the fund is to be responsible for collecting contributions from undertakings which
are assessed as liable to contribute to the net cost of universal service obligations in the Member State and is to oversee
the transfer of sums due and/or administrative payments to the undertakings entitled to receive payments from the
fund.
24.4.2002 EN Official Journal of the European Communities L 108/73

ANNEX V

PROCESS FOR REVIEWING THE SCOPE OF UNIVERSAL SERVICE IN ACCORDANCE WITH ARTICLE 15

In considering whether a review of the scope of universal service obligations should be undertaken, the Commission is
to take into consideration the following elements:
. social and market developments in terms of the services used by consumers,
. social and market developments in terms of the availability and choice of services to consumers,
. technological developments in terms of the way services are provided to consumers.
In considering whether the scope of universal service obligations be changed or redefined, the Commission is to take
into consideration the following elements:
. are specific services available to and used by a majority of consumers and does the lack of availability or non-use
by a minority of consumers result in social exclusion, and
. does the availability and use of specific services convey a general net benefit to all consumers such that public
intervention is warranted in circumstances where the specific services are not provided to the public under normal
commercial circumstances?
L 108/74 EN Official Journal of the European Communities 24.4.2002

ANNEX VI

INTEROPERABILITY OF DIGITAL CONSUMER EQUIPMENT REFERRED TO IN ARTICLE 24

1. The common scrambling algorithm and free-to-air reception
All consumer equipment intended for the reception of digital television signals, for sale or rent or otherwise made
available in the Community, capable of descrambling digital television signals, is to possess the capability to:
. allow the descrambling of such signals according to the common European scrambling algorithm as
administered by a recognised European standards organisation, currently ETSI;
. display signals that have been transmitted in clear provided that, in the event that such equipment is rented,
the rentee is in compliance with the relevant rental agreement.

2. Interoperability for analogue and digital television sets
Any analogue television set with an integral screen of visible diagonal greater than 42 cm which is put on the
market for sale or rent in the Community is to be fitted with at least one open interface socket, as standardised by
a recognised European standards organisation, e.g. as given in the CENELEC EN 50 049-1:1997 standard, permitting simple connection of peripherals, especially additional decoders and digital receivers. Any digital television set with an integral screen of visible diagonal greater than 30 cm which is put on the market for sale or rent in the Community is to be fitted with at least one open interface socket (either standardised by, or conforming to a standard adopted by, a recognised European standards organisation, or conforming to an industry-wide specification) e.g. the DVB common interface connector, permitting simple connection of peripherals, and able to pass all the elements of a digital television signal, including information relating to interactive and conditionally accessed services. 24.4.2002 EN Official Journal of the European Communities L 108/75

ANNEX VII

CONDITIONS FOR THE MINIMUM SET OF LEASED LINES REFERRED TO IN ARTICLE 18

Note: In accordance with the procedure in Article 18, provision of the minimum set of leased lines under the
conditions established by Directive 92/44/EC should continue until such time as the national regulatory
authority determines that there is effective competition in the relevant leased lines market. National regulatory authorities are to ensure that provision of the minimum set of leased lines referred to in Article 18
follows the basic principles of non-discrimination, cost orientation and transparency.

1. Non discrimination
National regulatory authorities are to ensure that the organisations identified as having significant market power
pursuant to Article 18(1) adhere to the principle of non-discrimination when providing leased lines referred to
in Article 18. Those organisations are to apply similar conditions in similar circumstances to organisations
providing similar services, and are to provide leased lines to others under the same conditions and of the same
quality as they provide for their own services, or those of their subsidiaries or partners, where applicable.

2. Cost orientation
National regulatory authorities are, where appropriate, to ensure that tariffs for leased lines referred to in Article
18 follow the basic principles of cost orientation. To this end, national regulatory authorities are to ensure that undertakings identified as having significant
market power pursuant to Article 18(1) formulate and put in practice a suitable cost accounting system.
National regulatory authorities are to keep available, with an adequate level of detail, information on the cost
accounting systems applied by such undertakings. They are to submit this information to the Commission on
request.

3. Transparency
National regulatory authorities are to ensure that the following information in respect of the minimum set of
leased lines referred to in Article 18 is published in an easily accessible form.

3.1. Technical characteristics, including the physical and electrical characteristics as well as the detailed technical and performance specifications which apply at the network termination point.

3.2. Tariffs, including the initial connection charges, the periodic rental charges and other charges. Where tariffs are
differentiated, this must be indicated.
Where, in response to a particular request, an organisation identified as having significant market power
pursuant to Article 18(1) considers it unreasonable to provide a leased line in the minimum set under its
published tariffs and supply conditions, it must seek the agreement of the national regulatory authority to vary
those conditions in that case.

3.3. Supply conditions, including at least the following elements:
information concerning the ordering procedure, the typical delivery period, which is the period, counted from the date when the user has made a firm request for a leased line, in which 95 % of all leased lines of the same type have been put through to the customers.
This period will be established on the basis of the actual delivery periods of leased lines during a recent time interval of reasonable duration. The calculation must not include cases where late delivery periods were requested by users, L 108/76 EN Official Journal of the European Communities 24.4.2002 the contractual period, which includes the period which is in general laid down in the contract and the minimum contractual period which the user is obliged to accept, the typical repair time, which is the period, counted from the time when a failure message has been given to the responsible unit within the undertaking identified as having significant market power pursuant to Article 18(1) up to the moment in which 80 % of all leased lines of the same type have been re-established and in appropriate cases notified back in operation to the users. Where different classes of quality of repair are offered for the same type of leased lines, the different typical repair times shall be published, any refund procedure. In addition where a Member State considers that the achieved performance for the provision of the minimum set of leased lines does not meet users' needs, it may define appropriate targets for the supply conditions listed above. 24.4.2002 EN Official Journal of the European Communities L 108/77