end February 2001
Albania
Master Report
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Albania Master Report |
This is the final Alternative Networks report on Albania as the ESIS project ended in January 2001. This Master Report covers the whole period of the ESIS project surveying the Countries of Central and Eastern Europe.
1. Regulation and actors
1.1 Regulation of telecommunications and alternative networks
1.1.1 Telecommunications sector
Regarding telecommunications, the regulatory framework in Albania does not allow any alternative networks to provide telecommunications services. Albtelecom is the state owned company which has mostly the monopoly over public telecommunications. During the end of 1999 and the beginning of 2000, the Telecommunications Regulatory Entity (TRE) liberalised the rural telephony. This liberalisation effort will provide further opportunities for companies to enter the telecommunications market and compete with Albtelecom. During November 2000, TRE licensed 9 rural telephony operators, which are still not active. It is expected that during 2001 year, they will be operational.
On the focus of regulatory developments are the procedures for alternative networks privatization.
1.1.2 Energy Sector
It is the Albanian Electroenergetic Corporation an Anonimous Company who supports the energy sector. This sector is constituted of three main chains: a) Production; b) Transmission; c) Delivery.
There have also been three pilot companies of electric energy in Vlora, Elbasan, and Shkodra who were charged to manage the electroenergetic issues in these regions. However, they couldn't be successful and as a result, the procedures for their privatization failed.
Regarding the Albanian Electroenergetic Corporation (KESH) privatization process, it has been foreseen to be privatised only the production and distribution network. The transmission network should remain state proprietorship. Unless the privatization alternative that will be applied the following criteria are to be applied:
The definitive decision is to be taken by the Council of Ministers.
The state owns the "golden share"
Priorities must be given to the strategic investor.
1.1.3 Gas-Oil Sector
This sector is up to now state owned. The company which manages the entire production, processing, distribution of this sector is Albpetrol.
Albpetrol includes
digging
processing, marketing
some branches for special services
The privatization process aims
rehabilitation of production through activation of existing resources
providing new possibilities to explore other areas
modernization of processing and marketing sectors
1998-2000: Share quotation in an international Stock Market
Realization of some cooperation projects with foreign companies
Providing development credits with suitable interest rates
Maximal use of production abilities, and marketing abilities
Get rid from non profitable structures such as Processing Plant Cerrik, Kucove etc.
Estimation of Abpetrol assets
Evaluation of rehabilitation possibilities for technological improvement.
1.1.4 Mining Sector
It is made of Albcrom Corporation and some mines such as nickel mines, crome mines, coal mines etc. Their activity is made according to law on mining.
Of a special interest are deemed some forms for
the transfer for the right of use
the transfer for the right of development
Aim: Attraction of foreign corporations in:
self financing projects
several forms of concessions.
1.1.5 Transport Sector
As strategic sector will be considered:
Air transport - Managed by two companies Albtransport and ANTA (National Agency for Air Traffic)
Railways
Ports
The privatization is though to be realized through the
transfer of the rights on use
transfer of the rights on development
As regards ports the privatization method will be to pass the right of use and development.
1.1.6 Water Supply Sector
There are up to 50 enterprises operating in this sector. 90 % of them is subsidized by the state. The privatization will be done for every separate enterprise through the following methods:
Transfer of use rights through the services, leasing, management, contracts
Transfer of development rights through concession contracts
1.1.7 Radio-TV Sector
The regulatory framework is an enormous barrier for creating alternative networks in Albania. However, the framework is changing. For example, in March 2000, the National Council of Radio-Televisions (NCRT) decided to license private companies to transmit through radio-television frequencies. At present, there are over 30 TV and radio channels (local or national).
Telecommunication Regulatory Entity issued the frequencies for televisions, to the National Council of Radio-Television (NCRT) the only authority responsible for frequency delivery and licensing to local, private and national radio and television operators. The process was accompanied with a lot of discussions and debates. In October 2000 this process was accomplished.
Among the others there were three cable TV channels who get the license. They are mostly located in the south part of Albania.
However, they aren’t still using them as alternative internet networks.
1.2 Regulation and status of public utilities and public organisations regarding a potential entry in the alternative networks industry
Actually does not exist any law, which explains how such public utilities can be set up initially. Up to now these utilities has been the state ownership. Lately the government decided only to privatize enterprises that manage such public utilities and briefly the law on this issue is mentioned below:
1.2.1 Privatisation of strategic sectors
With sectors of a special importance are meant: the mining and energetic industry, naphtha and gas industry, post telecommunications, water, automobilist roads, railways, sea ports, airports, forests, second level banking sector with state capital, security companies with state capital.
The privatization of such sectors is foreseen to be realized according to the law no. 8506 dates on March 14, 1998 "For the privatization strategy of special importance sectors".
According to this law the public enterprises and state funded enterprises that operates in this sector are open to the privatization process.
The conditions for the privatization of such enterprises are:
2. Inventory of the major "public" utilities with a potential for use in IS applications
2.1 Types of companies offering networks and customer targeting
Up to now the companies offering networks (gas, railway, water, electrical networks, cable etc.) are owned exclusively by the state (historic operator). The Ministry of Transport and Public Affairs and its branches are the responsible authorities that direct the activities in this sector all over the country. Their privatization was planned for the year 2000, but several governmental and political changes didn’t create the appropriate conditions for the privatization of such sectors. It was published the law on Privatization of Strategic Sectors. According to this law, the first step of such privatization was the privatization of Albanian Mobile Communication Company, which was privatized by July 2000. However, it isn’t planned to be privatized the KESH Company (Albanian Energy Company which is anonymous company with 100% of shares owned by state.) until the year 2001. For the moment it has the monopoly in energetic sector.
However, the energetic network actually is not offering any potentiality for IS application. Its network is currently operative only for the internal communication within the KESH company (communication between the energetic branches as well as between the Center and the branches) Perhaps a new investment in this field, accompanied with the privatization of this big company would make possible establishing of the public networks as a potential for IS application in the future.
Speaking about the energetic sector in order to make some steps toward privatization there were proven some indicative forms for the future privatization. In three districts of Albania (Elbasan, Vlora and Shkodra) were established some pilot companies. KESH sold them the electric energy including in their prices only the cost of production. The pilot companies were responsible for the distribution, collection of bills and other steps.
After some times these companies resulted inefficient. They were not able to perform successfully.
KESH plans to extend its network to Kosovo and cooperate with the neighbouring countries through a Stability Pact. Despite its potential capacity to be used in IS applications, KESH is forbidden by law to provide any telecommunications service.
Albtelecom Company is the company who has the monopoly of the public fixed telephony. It is going to continue in this status even during next two years.
However, there were licensed 5 companies during the last quarter to operate in the rural telephony, providing fix and mobile services. They are still providing the necessary infrastructure to start the operation, but this means that the competitive environment is improving day after day. However, there are lots of things to do in terms of regulations, and other procedures.
Due to the state monopoly by Albtelecom, SITA, which provides airway networks, does not provide any public network for telecommunications services. However, it is a potentiality for alternative network in the future.
Albanian Mobile Communication Company had up to July 2000 the monopoly of the mobile phony service. In February 2001 was licensed the second mobile operator in Albania. This would create the possibilities to increase the competition, as well as to open the floor to the establishment of alternative networks.
2.2 Types of operators using the networks
They are three cable TV channels licensed during the end of 2000, which are operating in Albania. They are mainly located in south part of Albania such as Fieri cable provider, AVN with over 20000 subscribers and Vlora cable provider, with over 13 000 subscribers.
2.3 Types of services offered by the operators on the networks
They used to provide TV broadcastings, rather than Internet or other information services.
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