The Bangemann report.

I have picked some parts of the Bangemann report and appended below as
a response to previous comments.  Please note the section on Internet
at the end.  It of course recommended that those interested should
take part of the full report available on-line as has been announced.

One could question the influence this report will have. The group
consisted of some major European industrial leaders and Bangemann
(German commisionair ?) who was, I think, suggested as one of the many
candidates to replace Jaques Delors.

Bernhard.


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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.

.................................

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.

.............................

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 timtables and dead lines for the implementation of
    practical measures to achieve these goals.

........................

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

...........................

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.

............................

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.