by Gerry Oberst

Our last column described a project team within the European Conference of Posts and Telecommunications Administrations (CEPT) that focuses on satellite regulatory issues. Continuing with that theme, we focus on another CEPT project team working on ways to make licensing easier for companies serving the European market through electronic licensing, called "e-Licensing." Although this effort is not unique to satellite licensing, satellite operators are watching the effort closely because it could have a good effect on the current disharmonized approach.

In some respects, the CEPT is reacting to the new European Union (EU) regulatory structure for licensing. EU member states were supposed to adopt the Authorization Directive by July 2003, to simplify some licensing and provide European standards for licensing conditions and procedures. Moreover, the EU has set objectives to push basic public services to be interactive and online.

Not all EU member states made the July 2003 deadline and there are varying speeds of take-up for online government services in European countries. Even before the EU directive had been implemented, however, the CEPT has focused on licensing reform, including electronic processes that could be used.

There is no simple way to explain the CEPT hierarchy that works on this idea. The CEPT maintains an Electronic Communications Committee (ECC), which maintains three working groups, of which the newly named Working Group on Regulatory Affairs (WGRA) maintains a number of project teams. The group focused on e-Licensing is project team 6, referred to as RA6.

Over the last few years, RA6 has been asked to work on several licensing items. For instance, it revised a report on harmonization of radio licensing that was adopted by its parent body at a meeting in Vilnius, Lithuania, in February 2004. RA6 was given the task of developing ideas for "lighter licensing regimes" in Europe. Most recently, it has prepared a report on electronic processing of license materials.

On harmonization of radio licensing in general, RA6 did the ground work in updating an earlier report that was ultimately adopted in February of this year. The report says that the time taken for processing applications varies greatly between administrations, often for no apparent reason. Fees differ from country to country and it is not always apparent how the fees are derived. Only a "relative small number" of countries are examining benefits of electronic licensing. The conclusion was that it is not possible to harmonize licensing systems fully within the CEPT.

On lighter licensing, after quizzing CEPT member countries, RA6 was able to report in late 2003 that administrations saw that lighter licensing could simplify the process, reduce costs and burdens for staff and "customers," and speed up processing, among other benefits. But a majority of the countries also saw difficulties, such as loss of revenues from licensing exemptions, need to retrain personnel and possibly increased interference complaints.

It is against this background that RA6 is also examining e-Licensing, a project that started as early as December 2000 within the CEPT. RA6 already has held several meetings on this topic in 2004. A draft report is now in the works, which could be adopted by the end of the year. Along the way, the term e-Licensing was changed to "e-Enablement," to refer to all electronic processes for licensing and information purposes.

The satellite industry has taken a keen interest in this proceeding, due to the possible impact of more efficient licensing structures on the industry (and also because of other topics on the RA6 agenda). At the most recent meetings, three to as many as nine companies from the satellite sector attended, as virtually the only outside observers choosing to participate.

Administrations recognize there is a strong correlation between less bureaucracy in licensing and the use of e-enabled processes. The draft report nevertheless summarizes the situation by noting there are "formidable barriers" facing countries that want to rely on electronic processes. Despite these perceived barriers, some countries are moving forward. For instance, the United Kingdom relies on an online site clearance system for transportable earth stations (that is, stations used for temporary sports or news events). Another U.K. product called "Sat Clear" is used for management of satellite network terminal licenses.

One problem across Europe is that countries are adopting national procedures for providing government service online for a whole range of activities. These national procedures may be difficult to reconcile with the specific need for a common European approach in a particular sector, such as telecommunications in general, much less the specific satellite sector. Thus, a country might be advanced in overall "e-Government" services, but using a system that does not coordinate well with other systems in other European countries.

CEPT members may be drawn kicking and screaming to the electronic world–whether it is e-Licensing or e-Enablement or some other trendy term yet to be invented, RA6 will be in the midst of this debate.

Gerry Oberst is a partner in the Brussels office of the Hogan & Hartson law firm. His e-mail address is [email protected].