October 1999

FYR of Macedonia Master Report

1. The interaction between business and regulatory constraints

1.1 The regulatory background

According to the Macedonian Telecommunications Act (Official Gazette of RM 33/96) and amended Telecommunications Act (Official Gazette of RM 17/98), the Macedonian Telecommunications shall have the exclusive right, until 31 December 2005, to provide fixed voice telephony services, telegraphy services, telex services, public pay phone services, and leased line services, and to construct, own and operate fixed public telecommunication networks.

Concessions shall be issued by the Minister of Transport and Communications, on the proposal of the Directorate, and shall be public documents. Concessions may be issued to domestic and foreign legal and natural persons. The Directorate may establish different classes of concessions for different types of telecommunications activities.

The Minister of Transport and Communications shall not issue any licenses or concessions that infringe the exclusive rights granted to the Macedonian Telecommunications.

In accordance with this Act, telecommunication networks for satisfying the needs of certain governmental bodies, enterprises and other legal and natural persons can be designed, built and maintained in order to exclusively for performing their activities. The holders of the telecommunication networks for their own needs are not allowed to perform public telecommunication services to third parties.

1.2 Attitude of towards alternative network providers

The incumbent operator exchanges the facility on some links they with the major alternative network owners.

1.3 On-going regulatory developments concerning alternative networks

Until 31 December 2005, no legal or natural person, except the Macedonian Telecommunications, may:

• provide, organise, advertise, promote or in any other way take part in organising call-back services; and
• provide fixed voice telephony services, telegraphy services, telex services, public pay phone services or leased line services and to construct, own and operate fixed public telecommunication networks.

2. Inventory of the major "public" utilities with a potential for use in IS applications

So far, their own telecommunication networks have been established by Macedonian Railway, Electric Power Company of Macedonia and Makpetrol-TEAS (established by the Macedonian leading Oil Company).

Macedonian Railway has built its own telecommunication infrastructure along the railroads. It is based on wire technology but there is an orientation towards upgrade with optic technology. The network provides voice telephony services, telegraphy services, telex services and data communications. The network is connected with the telecommunication networks of the neighbouring countries: Yugoslavia and Greece. Macedonian Railway has not started providing services on a commercial basis yet.

Electric Power Company of Macedonia has built its own telecommunication facilities. They are based on VF Power Lines, wire HDSL, Radio Microwave and Fibber Optic Cable. This infrastructure is used for providing fixed voice, mobile and data services for their own needs. On some links they exchange the facilities with Macedonian Telecommunications. Their strategy is to upgrade and extend their network and possibly provide services.

Makpetrol (the Macedonian leading oil company) is 51% owner of the shares of Makpetrol-Teas - the telecommunications company. Its communications facilities are based on radio communications. The company is providing telephony services and data communications on a commercial basis and customer targets are large companies and institutions, small offices, taxi transports, rural communities, Macedonian Telecom etc.