1. Pricing of meteorological information by ECOMET Members and its impact ePSIplus meeting PSI pricing 20 November 2008 Athene René Hoenson Chief Executive ECOMET

2. 20 November 2008ePSI+ meeting PSI Pricing 3 In this presentation: I. The origin and ownership of meteorological information.The global Meteorological system II. EU legislation lll. Market development lV.ECOMET V. Prices and impact

3. 20 November 2008ePSI+ meeting PSI Pricing 3 I. The origin of meteorological information Upstream information: Output of the WMO WWW synoptic and climate observation programs Numerical Weather Prediction (NWP)(ECMWF) Satellite imagery (EUMETSAT) NMHS’s own products e.g. radar imagery, spherics, LAM, etc. Downstream information reduced to: Value added services

4. 20 November 2008ePSI+ meeting PSI Pricing 3 World Meteorological Organization: World Weather Watch (GOS) Global Climate Observation System (GCOS) WMO www sets the standards for the observational and research programs regulates the free and unrestricted exchange of data and products on a quid pro quo basis between all Member states. Every member state is committed to execute the WMO program.

5. 20 November 2008ePSI+ meeting PSI Pricing 3 Global Observing System

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7. 20 November 2008ePSI+ meeting PSI Pricing 3 Some 4000 of these stations comprise the Regional Basic Synoptic Networks (RBSNs) drawn up by the six WMO Regional Associations. Data from these stations are exchanged globally in real time. A subset of these surface stations are used in Global Climate Observing System (GCOS) Surface Network (GSN). RBSNsGSN

8. Regional Meteorological Telecommunication Network for Region VI (Europe) Figure 1 - point-to-point circuits implementation (transmission speed in kilobit/s) Dublin Tirana Beiru t Washington Nairobi Cairo New Delhi Jeddah Casablanca Tripoli Tunis Beijing RTH NMC Centre in other region MTN circuit Regional circuit Interregional circuit Ljubljan a Athens Brussel s Kishene v Kiev Tbilisi Buchares t Helsin ki Oslo Zagreb Warsa w Minsk Malta Amma n Bet Dagan Reykjavik Sondre Stormfjord De Bilt Lisbon Budapest Bratislava Vilnius Riga Prague Zurich Damascu s Ankara Larnac a Khabarovsk Novosibirsk Tashkent Tehran 64 9.6 2.4 9.6 Nairobi 0.05 64 19.2 0.05 7.2-28.8 0.05 0.1 64 9.6 0.2 NI 9.6 N/O 9.6 NI Dakar 0.1 Beijing FR 256 (CIR:64) 64 128 Hanoi Almaty Yerevan XII..2004 Algiers Madrid 2.4 32 8 16 256/128 16 24 48 64 32 64 8/16 8 8 16 8/32 32/64 64 32 32/96 48/16 32/8 64/8 RMDCN Committed Information Rate 64 8 16/8 24/8 * The RMDCN circuit Helsinki - Tallinn is not yet in the RTMN plan, but replaces the former GTS connection of Tallinn Belgrad e Exeter Toulouse Rome Copenhagen Norrköping Vienna Tallinn 19.2 ECMWF 16/8 16/64 Offenbach 16/8 64/8 16/8 128/64 19.2 NI N/O 64/8 Baku 8/16 64/8 Skopje Moscow Sofia NI N/O 16/8 48 Melbourne 16 16/8 8 64

9. 20 November 2008ePSI+ meeting PSI Pricing 3 WMO Resolution 40 Guarantees the free and unrestricted exchange of data sets for the safety of life and property between WMO Members Meets the ownership and IPR requirements of all Member states with regard to the commercial use of “additional data and products” by allowing conditions to be attached by each originator of the data. Free D&P for science and education

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12. 20 November 2008ePSI+ meeting PSI Pricing 3 lll. Legislation of the European Union Development of legislation and the European Council regulation 1/2003 to regulate equal competition conditions: unfair competition (art.81 of the EC treaty) (price fixing, concerted action, market sharing, level playing field) abuse of dominant position (art. 82 of the EC Treaty) (discriminatory actions) single European market (European Economic Area agreement) replaced the traditional agreements between the NMHS’s

13. 20 November 2008ePSI+ meeting PSI Pricing 3 EU directives and decisions Access to environmental data Council directive 7 June 1990 (90/313/EEC) Council directive 2003/4/EC of 28 January 2003 Public Sector information Council directive 2003/98/EC

14. 20 November 2008ePSI+ meeting PSI Pricing 3 II. Market developments Market players: WMO Member states / National Meteorological and Hydrological Services (NMHS’s) Private sector

15. 20 November 2008ePSI+ meeting PSI Pricing 3 Market development Existence of a mixed private/public market in Europe Competitive and collaborative relations between NMHS’s and Private Sector in Europe Threat of discontinuity of free exchange of data and products between NMHS’s

16. 20 November 2008ePSI+ meeting PSI Pricing 3 Economic interest of the NMHS’s and Private Sector Maintenance of high quality infrastructure, research and development of NWP. A balance between: Contribution to the meteorological infrastructure from commercial services Fair prices for meteorological information to allow market operations

17. 20 November 2008ePSI+ meeting PSI Pricing 3 How to reconcile in a single data policy WMO requirements The European legislation on competition, access to environmental data and re-use of public sector information The interests of the private sector The interest of the NMHS’s to recover part of the costs to maintain and improve infrastructure and research from commercial use by the public and private sector

18. 20 November 2008ePSI+ meeting PSI Pricing 3 IV. ECOMET (ecomet.eu) - the form -ECOMET Economic Interest Grouping of National Meteorological and Hydrological Services (EIG) Under Belgian Law Foundation 1995 Approved by the EC DG Competition Secretariat in Brussels

19. 20 November 2008ePSI+ meeting PSI Pricing 3 NMHS Members of ECOMET AustriaEU/EEALatviaEU/EEA BelgiumEU/EEALuxembourgEU/EEA CroatiaNetherlandsEU/EEA DenmarkEU/EEANorwayEEA FinlandEU/EEAPortugalEU/EEA FranceEU/EEARomaniaEU/EEA GermanyEU/EEASpainEU/EEA GreeceEU/EEASwedenEU/EEA HungaryEU/EEASwitzerland IcelandEEATurkey IrelandEU/EEAUnited KingdomEU/EEA ItalyEU/EEA

20. 20 November 2008ePSI+ meeting PSI Pricing 3 NMHS Members in the near future Czech Republic Slovenia Poland Slovakia

21. 20 November 2008ePSI+ meeting PSI Pricing 3 Large national differences with respect to: Size Structure of funding Financial and accounting system Legal status Commercial activity ECOMET created and maintains a comprehensive and universally applicable data policy

22. 20 November 2008ePSI+ meeting PSI Pricing 3 Level playing field Obligation of every Member: Make available all data & products No cross subsidy from core to commercial activity NMHS’ specific cost calculation, inclusive all direct and indirect costs of production and delivery approved by the respective Ministry Separate or transparent accounting systems to be audited Binding arbitration procedure

23. 20 November 2008ePSI+ meeting PSI Pricing 3 Achievements of ECOMET Continuation of unrestricted exchange of WMO data and products Creation of a level playing field Guaranteed access to data and products; one stop shopping Transparent catalogue, license conditions and individual tariffs Increased market potential Improved customers choice and standards of service

24. 20 November 2008ePSI+ meeting PSI Pricing 3 V. Prices and Impact Meteorological data and products Categories Prices Discounts Licenses Research and education

25. 20 November 2008ePSI+ meeting PSI Pricing 3 Evolution of prices Volume of data and products free of charge more than doubled Average price for chargeable synop decreased by more than 15% Average package price for synop decreased by more than 80% Average price of NWP decreased by 20%

26. 20 November 2008ePSI+ meeting PSI Pricing 3 Market Size € m 1993 – 2006 PRIMET estimation Year199319982006 NMHS 249 1 309 2 380 4 Private sector 28 1 43 3 150 4 Sources 1 Herdan and Otten 1 st ECAM Oxford 1993 2 EC Treaty 6 Applications of Telematics to Meteorology Final Report: Sofréavia 1998 3 Otten quoted by Weiss “Borders in Cyberspace” 1999 4 Annual reports and personal communications from NMHS and private survey

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28. 20 November 2008ePSI+ meeting PSI Pricing 3 Conclusion Market will continue to grow, however comparison with US market questionable. Prices of meteorological information are not the critical factor in market development Most NMHS’s consider the presence in the meteorological market to be of strategic importance to maintain and improve the quality of infrastructure and research. Downside of “US System” often completely ignored.