ESIS extension / FYR of Macedonia / Alternative Networks / Master Report

Memo: A World Bank tender is being prepared for the telecommunications of the Electric Power Company. New 2 million USD grant for Macedonian Railway to buy a fibre-optic cable to improve its telecommunications.

According to the Macedonian Telecommunications Act (http://www.srd.org.mk/bc/codes.htm) (Official Gazette of RM 33/96) and amended Telecommunications Act (Official Gazette of RM 17/98), the Macedonian Telecommunications (http://www.mt.com.mk/index.html) 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.

The Minister of Transport and Communications shall issue concessions as public documents, on the proposal of the Telecommunications Directorate (a body within the Ministry of Transport and Communications). Concessions may be issued to domestic and foreign legal and natural persons. This 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.

The incumbent operator shares the facilities on some links with the other major alternative network owners. The major alternative network owners are able to become telecom operators.

Partial privatisation of the Electric Power Company is foreseen in a near future, however no date related to this was released.

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

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

So far, 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 to optical 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 (North-South): Yugoslavia and Greece. Macedonian Railway has not yet started providing services on a commercial basis.

The construction of the transport systems along the corridor East-West is being supported by the South Balkan Development Initiative (SBDI) also known as Clinton's Initiative. The USA government initiative started in 1996 and should last 4 years. The budget of $30 Millions will be equally granted to Albania, Macedonia and Bulgaria. So far, about $24 Millions were allocated in the region. Around 20 projects were carried out in Macedonia for feasibility studies, construction equipment, reconstruction and maintenance of railroad, and repairing the locomotives.

Within the initiative, US Trade and Development Agency (TDA) granted irreversible assistance at amount of $2,187 Millions to the public enterprise Macedonian Railway. The grant is aimed for purchasing a fibre-optic cable to improve the present wire communications.

Electric Power Company of Macedonia (http://www.esmak.com.mk/) has built its own telecommunication facilities. They are based in VF Power Lines, wire HDSL, Radio Microwave and Optical Fibre Cable. This infrastructure is used for providing fixed voice, mobile and data services for their own needs. On some links they share facilities with Macedonian Telecommunications.

Their strategy is to upgrade and extend their network and possibly the services provision. The goals of the project are the implementation of optical fibre cables and equipment, extending the network, implementation of SDH architecture and related equipment, implementation of redundant links and 155 mbps capacities. The project is financed through the World Bank.

The tender has been announced for optical grounded wire (OPGW) and presently the proposals are being evaluated. The company will carry out itself the installation of the cable in the next 6 months. The next phase of purchasing the SDH equipment is planned for the end of 2000. The whole project should be carried out in a two-year period.

Makpetrol (http://www.makpetrol.com.mk/) is the Macedonian leading Oil Company that detains 51% 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 Telecommunications and others

Please note that this report has been prepared under the sole responsibility of the ESIS II contractors.
It does not necessarily reflect the views of the Commission, nor does the Commission accept responsibility for the accuracy or completeness of information contained herein.
The ESIS Team of contractors welcomes any additional information or corrections.