INFORMATION DOCUMENT: TELECOM PROJECT OF THE UNECE



|[pic] |INTERNATIONAL TELECOMMUNICATION UNION | |

| |RADIOCOMMUNICATION |Document RAG04-1/1-E |

| |ADVISORY GROUP | |

| |GENEVA, 22 - 26 NOVEMBER 2004 | |

| | |15 March 2004 |

| | |English only |

|Director, Radiocommunication Bureau |

|information document: |

|telecom project of the UNECE |

Please find attached, for information, a document about the project “Telecom Industry Initiative”, which was initiated within the UN Economic Commission for Europe (UNECE), as well as the minutes from the UNECE meeting on this initiative.

These documents are brought to the attention of the RAG on the initiative of TSAG.

Annexes: 2

Annex 1

|UNITED NATIONS | |E |

|[pic] | |Distr. |

| |Economic and Social |GENERAL |

| |Council |TRADE/2003/7/Add.1 |

| | |24 February 2003 |

| | |ORIGINAL: ENGLISH |

ECONOMIC COMMISSION FOR EUROPE

COMMITTEE FOR TRADE, INDUSTRY AND

ENTERPRISE DEVELOPMENT

Seventh session, 13 and 16 May 2003

Item 10 of the provisional agenda

Telecom Industry and Market Surveillance Initiatives of the

UNECE Working Party on Technical Harmonization and Standardization Policies

Note by the secretariat

GE. 03-

TRADE/2003/7/Add.1

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A. “Telecom Industry Initiative” (proposal on the harmonization of technical regulations in the telecom sector as a contribution to the facilitation of trade)

Introduction

1. The globalization of business operations and the growing involvement of companies in international trade are the most striking features of today’s world economy. When companies move away from their domestic markets to compete internationally, their success or failure often depends on how familiar they are with the regulations and standards in export markets.

2. As trade becomes increasingly international, obstacles to international trade become increasingly apparent. For instance, the relative importance of non-tariff barriers is growing in the form of different technical regulations and standards in different markets. Significant differences between national and international standards are also making it more difficult for local companies, and especially small and medium sized enterprises, to sell in foreign markets.

3. The usefulness of eventually harmonizing regulations and standards internationally is evident. In the meantime, Governments and national bodies should try to create a simple and transparent framework for adopting and applying their national technical regulations and standards.

4. The member States of the United Nations Economic Commission for Europe (UNECE) currently number 55, including not only western, central and eastern Europe but also Israel, the United States and Canada. For a region comprising several subregional economic groupings, the importance of approximating technical regulations is obvious.

5. The UNECE Working Party on Technical Harmonization and Standardization Policies (Working Party 6), a UNECE subsidiary body, provides a unique forum for debating and anticipating problems that might otherwise arise, with equal participation by all Governments concerned and with input from international, regional and national organizations as well as the private sector.

6. It is a major concern of the Working Party to encourage the development, adoption and application of harmonized technical regulations and standards, as well as conformity assessment operations, in member States of the UNECE region.

7. With this in mind, in 1999 the Working Party established an ad hoc Team of Specialists on STandardization And Regulatory Techniques ("START" Team), which suggested a project entitled “International Model for Technical Harmonization based on good regulatory practice for the preparation, adoption and application of technical regulations via the use of international standards".

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Purpose of the Project

8. The main objective of the project is to support the development of good regulatory practice, by providing examples of mechanisms and principles which might be used by countries for the harmonization of technical regulations in a particular sector, or for a product, product area or service.

9. The basic principle of the “International Model” is that the technical content of regulations should be drafted in terms of broad objectives (addressing safety, environmental and other legitimate concerns of Governments) and refer to international standards for more detailed performance-based technical or conformity requirements.

10. On a procedural level, in the case when the need for regulatory convergence has been identified and supported by Governments, the “Model” suggests starting a dialogue not from the basis of existing national technical regulations but of discussing and agreeing on which safety, environmental or other legitimate requirements should be met by a technical regulation. On the basis of such agreed and concrete legitimate concerns (which are called in the “Model” -“common regulatory objectives”), countries should then agree which existing international standards could provide for technical implementation of the agreed “ common regulatory objectives” or call for the elaboration of new international standards to this end.

11. It is expected that such principles will stimulate a wider use of international standards and will make technical regulations more concise and transparent, thus reducing the regulatory burden for businesses.

Expected results/deliveries

12. Countries wishing to harmonize their regulations might wish to use the framework suggested in the “Model” for such cooperation.

13. Should countries be able to arrive at successful results in drawing up agreed safety and other essential requirements, it will be a practical contribution to eliminating technical barriers to trade and the facilitation of international trade.

14. Implementation of the “Model” would allow companies that are manufacturing regulated products or providing regulated services according to relevant international standards to obtain conformity with technical regulations, and thus contribute to establishing a level playing field for the benefit of all market players (industry, trade, consumers, etc.).

15. From the point of view of international standardizing organizations, use of the principles of the “Model” would enhance the relevance of existing international standards and would allow them to identify areas where further international standardization work is required.

16. What would be the interest of countries in transition in the “Telecom Industry Initiative” project?

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17. First of all, it would help local companies. Communication today is an important factor in raising the operational efficiency of a company, streamlining its operations, in generating substantial cost savings, in allowing access to much wider markets at low cost and providing a means to enter into competition with more developed economies.

18. Wider use of trade facilitation tools (including participation in electronic commerce) is a strategic imperative for companies but also for Governments, as these tools can enable them to make public services available to everybody at any time, at any place. New information technologies and cheaper telecoms equipment should allow citizens have easier access to information, in particular if supported at a community level through local networks and other initiatives.

19. From the point of view of transition economies in general, this project could contribute to improving their telecommunications infrastructure, thus making access to the Internet more affordable and providing these countries, their companies and citizens with an important tool for accelerating economic development and integration.

Current Status of the Project

20. The first draft of the “International Model for Technical harmonization” has been prepared by the “START Team” and has been submitted for information to a number of international forums (UNECE, World Trade Organization (WTO), Organisation for Economic Co-operation and Development (OECD), Commonwealth of Independent States (CIS), etc.).

21. After discussions on the “Model”, Working Party 6 finally adopted it in 2001 as a new UNECE recommendation on standardization policies (Recommendation “L”). In this context, it was noted that there was a clear market need and an interest from Governments in further reduction of trade barriers and that this Model could contribute to facilitation of market access by providing a voluntary framework for establishing sectoral agreements between interested member countries.

22. At present, representatives from industry and member states with the assistance of the “START” Team are studying a number of sectors to explore the possibility of starting pilot projects in these areas based on the principles proposed in the “International Model”.

“Telecom Industry Initiative”

23. In 2002, the UNECE secretariat and the “START Team “ conducted consultations with a number of telecom companies that had demonstrated the industry’s interest in the application of the “International Model” in this sector. During 2002, two informal meeting were held in Geneva to discuss the need for improved market access and to explore the possibilities for a sectoral initiative in telecoms. Meetings were attended by members of the “START Team”, delegates from the European Commission (EC) and the International Telecommunication Union (ITU), and by a number of private company representatives (business associations from Australia and from Japan were also represented).

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24. As a result of these discussions, industry participants agreed that there were a number of globally traded product areas where it was possible to facilitate trade significantly and to establish a set of sectoral arrangements following the principles of the “International Model”. They decided to draft proposals for CROs (“common regulatory objectives” as proposed in the “International Model”) based on applicable international and regional standards. This project was named the “Telecom Industry Initiative”.

25. Thus, draft proposals for administrative and technical requirements for CROs for a number of products (GSM, IMT-2000, Wireless LAN, Bluetooth, Personal Computers, Public Switched Telephone Network (PSTN) Modem) were prepared and agreed upon by industry participants. These draft CROs are available at the WP.6 web page ( under “START” Team and then “Telecom Industry Initiative”). One example of a prepared draft CRO is also contained in document TRADE/WP.6/2002/8/Add.1 which was submitted to the WP.6 session in October 2002. It consisted of: the Justification for Common Regulatory Objectives for ICT Equipment (annex 1); Common Regulatory Objectives for ICT Equipment (annex 2); the Justification for Common Regulatory Objectives for Bluetooth Equipment (annex 3); and the Common Regulatory Objectives for Bluetooth Equipment (annex 4). It is foreseen that all types of ICT (information and communication technology) equipment would have to meet the general requirements for all ICT equipment (annex 2) and specific requirements for a particular type of equipment (as in the example of “Bluetooth” equipment (see annex 4 to TRADE/WP.6/2002/8/Add.1).

26. The “Telecom Industry Initiative” and draft CROs were presented to the October 2002 session of the Working Party, which supported this initiative and invited UNECE member countries to inform the secretariat of their interest in participating in the regulatory convergence activities proposed by the “Telecom Industry Initiative” (for details, see the report of the twelfth WP.6 session –TRADE/WP.6/2002/17).The “START” Team is currently assisting in the follow up to this initiative and is preparing a regulatory convergence meeting with responsible telecom ministries and communications regulatory agencies.

27. The “START” Team is ready to assist interested Governments, organizations and private companies with further sectoral initiatives (the secretariat has received a note of interest from a number of companies about initiating a similar project in the area of earth moving machinery).

B “Market Surveillance Initiative”

28. On 29 October 2002, in conjunction with the annual session of Working Party 6, an International Forum on Market Surveillance was held in Geneva.

29. The Forum was organized in response to requests from a number of delegations (including from CIS States) to provide an exchange of information on market surveillance issues. Similar interest had also been expressed during the UNECE Workshop on Standardization and Conformity Assessment Matters in Transition Economies, held in Bratislava in December 2001.

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30. The purpose of the Forum was to present national experiences with market surveillance systems and practices with a view to ensuring the fulfilment of legitimate objectives in existing legislation, such as the protection of human health or safety, animal or plant life or health, or the environment. Three sectors were discussed in detail: electrical household appliances, machinery (for private and professional use) and cosmetics.

31. More than 120 representatives of regulatory and market surveillance authorities, international, regional and national bodies engaged in standardization and conformity assessment activities, consumer and business associations from western, central and eastern Europe, the Commonwealth of Independent States and North America took part in the discussions.

32. Delegates acknowledged the importance of market surveillance issues and the necessity to follow up on this event, as a result of discussions the Working Party agreed, inter-alia:

➢ to promote (and, when necessary, initiate) good practices in market surveillance methods within the UNECE region, making use of available expertise; to increase transparency and attract attention to the responsibilities of public authorities and their staff for market surveillance;

➢ to recommend the establishment of a Team of experts in order to consider the “list of issues of concern and suggestions” brought forward during the Forum and other relevant market surveillance issues and to prepare proposals for the 13th session of the Working Party; and to invite delegations to nominate experts for participation in the Team.

33. In 2003, the secretariat will take actions to organize the preparatory meeting of the ad hoc team of experts on market surveillance to decide on its future activities.

34. The UNECE secretariat invites interested Governments, organizations and private companies to participate in the market surveillance project and to bring their experiences with a view to preparing a compendium of good practices and procedures in this area.

35. For further information on these projects please contact Mr. Serguei Kouzmine, Secretary to WP.6 (Tel.: +41 22 917 2771, Fax: +41 22 917 0479 and e-mail serguei.kouzmine@).

* * * * * * * *

Annex 2

Minutes from UNECE “Telecom Initiative” meeting

(Regulatory convergence dialogue with public authorities)

Time 27 – 28 May 2003

Place EFTA, 9-11 rue de Varembé, Geneva

Participants

1. A list of participants from UNECE member countries and invited experts is enclosed

(Annex)*.

Welcome remarks from UNECE WP.6

2. Mr. Christer Arvius, Chairman of WP.6, provided an update on activities of WP.6 relating to information exchange on regulatory principles and practices, the promotion of using international standards and in particular on the Recommendation “International Model for Technical Harmonization”. The recommendation was adopted in 2001 and published in UNECE Recommendation on Standardisation Policies (as “Recommendation L”).

3. Based on this Recommendation, discussions on sectoral projects have started under auspices of WP.6. In the telecom sector the interested companies prepared a set of draft technical regulations (Common Regulatory Objectives, CROs, in the language of the Model) for a number of telecom products traded and used globally[1]. The WP.6 annual session in October 2002[2] expressed general support for the “Telecom Initiative” and thanked industry representatives for the work they had done. It was also decided to invite UNECE member States to participate in regulatory convergence activities proposed by the telecom industry.

4. He welcomed participants to this first meeting with responsible Ministries/Agencies of interested UNECE member States together with invited experts to explore the issue of regulatory convergence for the actual set of telecom products.

UNECE Regulatory activities

5. The Secretary to WP.6 (Mr. S. Kouzmine) noted that UNECE is trying to promote “International Model” principles also on a regional level. In this context participants were informed about results of the latest meeting of the CIS standardization agencies in Armenia (20-22 May 2003) during which CIS delegations agreed to prepare an agreement on harmonization of technical regulations between CIS states using the mechanisms proposed in the “International Model”. Such regional regulatory convergence dialogue should facilitate discussions of sectoral harmonization initiatives.

Proceedings of the meeting

5. The meeting appointed Mr. Nuno Encarnacao, OFCOM, Federal Office for Communications (Switzerland) for the function as the chairman. The meeting also agreed on the offer by EICTA to provide technical support to the UNECE Secretariat (the secretariat will clarify details of such possible assistance).

* Note from the RAG Secretariat: The list of participants is not included in this RAG document.

Update on the of Telecom Initiative

6. The representative of EICTA presented background and the set of CROs prepared by industry for the following ICT products: GSM, IMT-2000, Bluetooth, WLAN, PC, PSTN modem. He explained the rationale behind them, namely having a horizontal CRO (regulations) for all the ICT products and specific CRO for each product, highlighting international/regional standards that could be used to declare and attest conformity with the proposed CRO.

Identification of issues for possible future agreement

7. The representative of the EC Commission welcomed the project and expressed the opinion that it should be aimed at identifying and removing unnecessary obstacles to trade. He stressed that it should not result in creating new technical regulations in countries that do not have them but in trying to harmonize the legitimate requirements by analysing the rationale of governments’ positions. He confirmed the interest of the EC to be engaged in a regulatory dialogue with countries from outside of the EU on the basis of concrete proposals.

8. The representative of the Russian Federation indicated that it would be interesting to add new technologies and also services to this activity. He did not foresee any specific difficulties with the current proposed set of CROs. The Germany representative supported these suggestions. The acting Chairman concluded that this would be a welcome possibility but that an urgent and pragmatic solution is requested for best known products, prior to embark upon less known technology aspects or services aspects and applications supported by equipment, which cannot freely circulate.

Preliminary review of the CROs as proposed by the industry

9. The Chairman shortly described the suggested common part of the CRO containing the administrative obligation as foreseen by the “International Model”. The representative of industry shortly highlighted the technical parts, describing the rationale behind the choice of standards in them.

Conclusions and future proceedings

10. The meeting made the following conclusions and agreements on the future work.

(a) Participants agreed that discussions among countries represented at the meeting showed that there are no principal differences in approaches/requirements relating to products that were discussed at the meeting.

(b) The meeting supported the Initiative. It was agreed that discussions should be continued on all proposed products, giving always the priority to products where the convergence of opinions appears to be easier with the option to focus at a later stage on those products where there already seem to be significant correlation in technical regulations.

(c) The representatives of the participating UNECE member countries undertook to establish national co-ordination with all necessary Authorities in their National Administration, including the responsible Telecom regulatory Ministry, Trade Ministry and others.

(d) Tentative rapporteurs nominated to follow up and coordinate the work on the CROs proposed (to be reviewed during the next session):

|Part 1 |European Commission |

|GSM | |

|IMT-2000 | |

|Bluetooth | |

|WLAN | |

|PC | |

|PSTN modem |Mr Nuno Encarnacao, OFCOM |

As discussed during the meeting it might in a second phase be of interest to enter also into future technologies.

(e) It was agreed that a Task Force should be set up for the Telecom Initiative at the forthcoming meeting. Proposal for Terms of Reference for the Task Force will be drafted by the UNECE Secretariat.

(f) Mr. Nuno Encarnacao was nominated as Chairman for the forthcoming Task Force.

(g) The Task Force will consider a formal “call for participation” according to the procedures of Recommendation L, Annex C, art 2.

(h) It was agreed that, the UNECE secretariat should distribute information of the meeting to all UNECE member countries inviting them to join the project and share the information about national regulatory regimes in the identified areas.

Work plan:

First revision of the draft CROs based on the discussions at the meeting

• 15 June: Minutes of the meeting

Draft terms of Reference for the Task Force

• 1 July: Identify candidate rapporteurs for the CROs

• 1 September: First revised draft CROs from the rapporteurs

15 September: Final papers for a tentative meeting on 7 October and confirmation whether such a preparatory meeting is required (for necessary arrangements to be made)

7 October: Preparatory meeting (if required)

13 November: Meeting of the forthcoming Task Force on the Telecom Initiative

_________________________

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[1] Meetings on 24 April 2002 and on 19-20 September 2002.

[2] TRADE/WP.6/2002/17, paragraph 81

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Document for Information

This document contains information about the “Telecom Industry Initiative” and the “Market surveillance Initiative”, which are the latest projects initiated by the Working Party on Technical Harmonization and Standardization Policies (WP.6) at its twelfth session in October 2002.

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