July 1999

Lithuania Master Report

1. The interaction between business and regulatory constraints

The Law on Telecommunications Article Nº 8 declared the following:

• The Lithuanian market of operation of public telephone networks and provision of telecommunications services via fixed public telephone networks must be free as of December 31, 2002. Until this date, the main fixed public telephone operator has a right to remain the sole operator of fixed public telephone and sole provider of fixed public telephone services.
• Until the date specified in paragraph 1 of this Article, no addition licenses or authorisations may be granted that might alter the conditions for the activities of the main operator of fixed public telephone operator.

According this law - alternative networks for public use in Lithuania until 2002/12/31 can be developed on radio or satellite technologies. The Law permits development of cable infrastructure for other telecommunication operators. In the event of a telecommunication operator can not lay new additional lines or it costs disproportional high, the Regulatory Agency may request any other operator to allow jointly use, on a non-discriminatory basis, the existing conduits, cable ducts, collectors, towers and other facilities.

2. Alternative networks providers

2.1 Mobile telecommunications networks

Three companies - Omnitel (http://www.omnitel.lt), Comliet (http://www.comliet.lt) and Bite GSM (http://www.bite.lt) operate in mobile communications. Lithuania leader in mobile communications is Omnitel Company, a Lithuania - USA joint venture.

Omnitel as alternative network provider started business at a time when Lithuania and other Baltic States had no independent communications - all telecommunications went through Moscow. Occupied countries were unable to have contact with the free world. In 1992 Omnitel installed a satellite earth station that released Lithuania from dependency on Russian telecommunication networks.

Omnitel covers more 90% of Lithuania territory. At the end of 1998 Omnitel had over 180000 GSM, 12000 Internet and 3500 Paging subscribers. Omnitel is providing Internet connectivity based on AT&T Wave LAN equipment, leased lines, dial-up lines and satellite Direct PC too.

2.2 Radio communications

Taide company (http://www.taide.net). Lithuanian part of Taide Network (a subsidiary of Telenor International (Norway) is a one Internet pioneers in Lithuania.

The main activity of Taide is to provide Internet services in Lithuania building strong and reliable infrastructure of data communications through wireless radio and whirling technologies.

Taide Network uses optic fibre and VSAT technology (from Telecom Satellite services, Norway) for connection to Internet. Taide is licensed to install and maintain satellite earth stations and satellite data communication systems in Lithuania. Taide is connected to 6 Internet providers in Lithuania.

Lema - Lithuanian private company (http://www.lema.lt) during 1996 - 1998 years installed more 100 wireless connections, based on AT&T Wave LAN equipment in all Lithuania regions. Lema realised wireless connections Vilnius - Kaunas - Alytus, representing more 140 kms and Vilnius - Moletai with more 80 kms.

A new project - Baltnet (under support Nordic countries) to connect wireless more 20 schools to Lithuanian Academic and Research Computer Network LITNET is under realisation by Lema in 1999.

Baltneta (http://www.balt.net) - private Lithuania company provides wireless connections to Internet. Main connections are made in the largest Lithuania cities: Vilnius and Kaunas. 100 kms connection between Vilnius and Kaunas is installed by Baltneta.

2.3 Cable TV

51 Cable TV companies (http://www.radio.lt/ctv.htm ) operate in all cities of Lithuania. In largest Lithuania cities, MDM radio technologies and optical fibre for cable TV networks infrastructure are used. Lithuania legal framework permits to produce their own programs and other services. Few cable TV operators are planning the access to Internet in near future.

2.4 Other

The state enterprise Lietuvos Gelezinkelis (Lithuania Railways - http://www.transp.lt) for traffic control and management use their own communication network. Main communication infrastructure is old and based on cooper wires. The modernisation of the communications lines has been started yet. 129 km optical fibre line under international support between two cross points: Kaisiadorys - Radviliskis laid out. In other regions Railways communications lines presented difficulties to be available for IT applications

Lietuvos Energija (Lithuanian Power - http://www.lpc.lt) - the state enterprise largest electric power and heating supplies in Lithuania. The company has own well developed (partially on optical fibre) communication networks for voice data, tele-control and tele-measure. This enterprise has good capability to compete in the future with existing suppliers of basic telecommunication services.