Esisi extension / Poland / Alternative Networks / Master Report

The major telecommunications network facilities in Poland consist of a mixture of public and private providers. This mixture reflects earlier and continuing liberalisation efforts of the Polish government, which have enabled particular providers to emerge and to dominate the existing market.

Since the political changes in 1989, telecommunications regulations have been particularly effective. The general telecom policy has focused on the liberalisation of the telecommunications market and the extension and integration of existing regulations. The governmental change in 1997 has led to further liberalisation of the telecommunications market, which resulted in the privatisation of Telekomunikacja Polska S.A. (TPSA) and the restructuring of the Polish Post. Further liberalisation is expected in the future.

The overall control of the telecommunications market lies with the Ministry of Posts and Telecommunications, which is the National Regulator. Its responsibilities include issuing licenses (except for licenses provided by the TPSA) and defining the parameters of the telecom network. Despite the ongoing liberalisation efforts, the State maintains substantial control of the telecommunications market. Such control therefore provides significant business constraints.

The main entry barrier in the public telecommunication network remains the licensing regime of the Ministry of Posts and Telecommunications.

As a result of the privatisation of TPSA, the telecommunications sector is currently partially liberalised. Further privatisation will begin when 25-35% of TPSA shares are sold. Such a sale will reduce the Ministry’s control over the public telecommunications network.

In January 2000, the government announced a tender for the strategic foreign investor for the privatisation of TPSA. On the short list, there are two foreign telecom operators, France Telecom and Telecom Italia, which are currently undergoing due diligence investigation. It is expected that the new strategic investor will be announced during the first half of 2000. By 2001 the strategic investor will be able to increase its shares in TPSA to over 50%. Nevertheless, TPSA retains its monopoly over international connections until 2003. TPSA also partially owns Centertel, the mobile operator.

On 7 January 1999, TPSA concluded in Brussels an agreement with the NATO Consultation, Command and Control Agency. Under this Agreement, the Company will provide voice telephony and data transmission services between Poland and NATO. TPSA has won this contract in the face of strong international competition. In order to assemble the links outside Poland, TPSA will co-operate with Dutch and German telecommunications operators.

In the voice telephony market, local communications services are more liberalised, and there are fewer entry barriers. Full liberalisation in this sector will occur in 2001. In addition, domestic long-distance voice telephony and international communication and voice services closed to user groups are partially liberalised. Until 2003, the law requires a Polish majority to own a long-distance provider.

The mobile telecom sector is more competitive than the voice telephony market. Analog, GSM digital, DCS 1800 digital are partially liberalised. Paging services are competitive, but competition is restricted to local providers. Satellite communications services are also competitive. Neverthelss, they face the same competition barriers in the field of international communications as the voice telephony sector.

Despite all these entry barriers, it is possible to overcome the restrictions by pursuing alternative networks. For example, Cable TV and data communications companies can compete with telecom operators for the provision of telecom services. Cable TV and data communications markets are open.

Polska Telefonia Cyfrowa Sp. z o.o. ("PTC") have initiated a proceeding in front of the Polish Office for Protection of Competition and Consumers, accusing TPSA of abusing its dominant market position by being uncooperative in concluding a co-operation agreement between PTC and TPSA and by conditioning the agreement on unfair terms. The proceedings have been discontinued, and TPSA was freed of all charges.

The government declares that it will fully liberalise the energy supply sector by 5 December 2005. From this date onwards, foreign investors can compete in the Polish market without any limitations. As a result of this policy, fast privatisation is needed and is scheduled to start in 2002 according to the Economic Committee of Council of Ministers. The privatisation strategies regarding energy distribution and production have been elaborated, respectively, by Central Europe Trust and DGA (a consultancy company from Gdansk).

On 29 April 1999 TPSA and Telekomunikacja Energetyczna TEL-ENERGO concluded an agreement setting the rules for mutual technical co-operation and the terms of settlement for mutually rendered services. This agreement contributes, among others, to a fuller capacity utilisation of the telecom infrastructure of both operators, thus improving the quality of services through collaborating in upgrading the two telephony networks. The agreement also permits TEL-ENERGO to provide comprehensive voice telephony services to companies in the power sector.

In 1999, the first reading of the governmental project on commercialisation, restructuring and privatisation of Polskie Koleje Panstwowe (PKP), which was elaborated by the Ministry of Transport and Maritime Economy, took place in the Polish Parliament. It is planned that PKP enterprise will be divided by few stock companies, and up to 15% of its shares will be offered to PKP employees.

The Jamal-Europe gas pipeline transition system (680 km in Poland) is one of the biggest investments in TENs framework. On 23 September 1999, the installation of the first pipeline was completed by EuRoPol GAZ s.a. Alcatel Polska S.A. is responsible for the telecommunications system for pipe gas investment. Alstom Polska Co Ltd. provides computer services.

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.