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1. The Interaction Between Business and Regulatory Constraints
1.1 The Regulatory Background
Slovenia has been opening its telecommunications market relatively slowly. The Law on Telecommunications (Law on Telecommunications, Official Gazette (OG) of the Republic of Slovenia (RS), No. 35/97) grants exclusive rights (a monopoly) to Telekom Slovenije until 31 December 2000 for the provision of public telecommunications services of voice telephony and telex, and for the construction and management of the public telecommunications network intended for the provision of public telecommunications services, data telecommunications and global wideband and multimedia telecommunications.
Conditions for the construction and management of the public telecommunications network are further regulated by the Decree on the Mode of Providing Public Telecommunications Services of Voice Telephony and Telex and on Management of the Public Telecommunications Network (O.G. RS, No. 11/98).
The Law on Telecommunications regulates three categories of networks: public networks, closed networks and networks of state bodies. A closed telecommunications network is defined as a telecommunications infrastructure which as a closed user system is used for providing of telecommunications required to assure the carrying out of its own activities, as a complement or a substitute to the public telecommunications network . Alternative networks fall into the category of closed networks. It should be noted that a closed network defined in the Law stands for a so called private network .
There have been almost no restrictions for building private networks. Only provisions of the Law on Telecommunications concerning electromagnetic compatibility, protection of telecommunications networks and radiocommunications shall be applied to the construction and management of private networks.
According to Articles 24 and 64 of the Law on Telecommunications, the alternative networks are closed until 31 December 2000 for the provision of public telecommunications services of voice telephony and telex as well as data communications and global wideband and multimedia telecommunications. For the infringement of regulations on constructing or operating the public telecommunications network, the Law in Article 55 sets the penalty clauses. After 1 January 2001, the Government might grant more concessions for the provision of public telecommunications services in accordance with Article 4 of the Law on Telecommunications and in conformity with the Law on Public Trading Services (O.G. RS, No. 32/93) also to alternative network operators. The procedure is rather complicated. A public tender is required and the number of concessionaires might be limited.
The current Law on Telecommunications has liberalised alternative networks intended for the provision of leased lines (for private networks, transmission of alarms, cable TV, etc.) Although the Law seems to be clear about the status of alternative networks, there are open issues concerning, as an example, the provision of leased lines intended for Internet access and services. As the Law on Telecommunications does not specifically define the Internet, there are different interpretations of the Law and a vivid public debate has been going on for some time.
The Telecommunications Administration of the Republic of Slovenia issues licences for the provision of leased lines in accordance with the Regulations on the Issuing of Licenses for the Provision of Commercial Telecommunications Services (O.G. RS, No. 75/98)
1.2 On-Going Regulatory Developments Concerning Alternative Networks
By 31 December 2000, Telekom Slovenije will have had a monopoly on the construction and management of the public telecommunications network intended for the provision of public telecommunications services, data communications and global wideband and multimedia telecommunications. The Law on Telecommunications is not specific about the liberalisation status after this date.
According to Article 64, the Government of the Republic of Slovenia should adjust the policy of the development of telecommunications to market conditions in accordance with the National Programme for the Development of Telecommunications before the implementation of the liberalisation of the telecommunications market. The National Programme was approved by the Government on 1 April 1999 and passed to the National Assembly. It is now in the proceedings of the Parliamentary Committee for Infrastructure and the Environment.
Potential network and service providers exert pressure on policymakers to lift some of the constraints set by the Law on Telecommunications. The most rigorous restrictions of the current Law might well be lifted before 31 December 2000. If not, the new law on telecommunications being drafted by the Ministry of Transport and Communications will set the framework for further liberalisation of alternative networks after 1 January 2001.
2. Inventory of the Major "Public" Utilities with a Potential for Use in IS Applications
There are a number of private networks of public utilities with the potential of providing telecommunicatons services, the largest amongst them being the networks of ELES (a public utility for the transmission of electric power), Slovene Railways and Motorway Company in the Republic of Slovenia. An important group of alternative network operators represent operators of cable communication and/or cable distribution systems.
Until 16 June 1999, licences for the provision of leased lines were granted to ELES, RTV Slovenija (Transmitter and Communications Department), and four cable TV operators. None of them have started providing services on a commercial basis yet.
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