October 1999

Lithuania Update Memo

The following report outlines new developments in the past three months and the state of on-going developments.

1. The interaction between business and regulatory constraints

In August 99 the newspapers reported that Lithuania Telekomas appeal to Lithuania Government asking to prohibit Internet telephony voice over IP. According Lithuania Telekomas more 10 companies violated the Law on Telecommunications and without publicity are doing business in this area. Possible Telekomas losses can be more 10 M Lt. (2,5 M EURO). There was no information about Government decisions, but Government Institutions Computer Network VIKT (http://www.is.lt) breaks of this type of service.

2. Radio communications

Wireless connections leader in Lithuania Lema (http://www.lema.lt ) installed 15 new radio links and connected 15 schools in Lithuania rural area. The project was supported by Nordic Council Baltnet project (co-ordinator Rolf Nordhagen, Oslo University). The connection up to 10 schools additionally is planned in near future.

3. Cable TV

Private company Skaineta (http://www.skynet.lt) and one of Internet providers 5 Kontinentai ( http://www.5ci.lt ) announced about Internet services to Cable TV subscribers in Vilnius area. 10 Mbps Ethernet technology is used for connection the end users supported in 100 Mbps backbones. The price is about 130 Lt/month (32 EURO/month).