October 1999

Slovenia Update Memo

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

During the last three months, there have not been many changes on the Slovene alternative networks scene. Neither the legislation nor the regulations have been changed. That means that the alternative infrastructure continues to be only partially liberalised. As exclusive rights for the construction and management of the public telecommunications network intended for the provision of public telecommunications services (voice telephony and telex), data and global wideband and multimedia telecommunications (including Internet) are granted to Telekom Slovenije until 31 December 2000, the alternative infrastructure may only be used for a limited set of commercial services (a licence is required). Having imposed such restrictions by the legislation, the situation is rather absurd. For example, although alternative networks are liberalised for the provision of leased lines, their provision is prohibited if intended for Internet access or services and data communications services. In fact, alternative networks are liberalised for the provision of leased lines if they are intended e.g. for private networks, transmission of alarms or cable TV.

Until 30 September 1999, the Telecommunications Administration of the Republic of Slovenia issued 38 licences for the provision of commercial telecommunications services, of which 6 include provision of data communications and 9 provision of leased lines services. Apart from the incumbent operator Telekom Slovenije, amongst licence holders there are two internet service providers, seven operators of cable communication and/or cable distribution systems, a public utility for the transmission of electric power (ELES) and RTV Slovenija (Transmitter and Communications Department). According to reliable sources, Telekom Slovenije appealed to the Ministry of Transport and Communications against decisions of the Telecommunications Administration concerning licences issued for the provision of leased lines and data communications services.

Two other potential alternative networks providers, Slovene Railways and Motorway Company in the Republic of Slovenia have not been issued a licence so far and the question is whether they have already applied for it or not.

At the end of August rumours emerged in political lobbies that a consortium would be established for providing telecommunications services after the market was fully opened. The leading driving force of the consortium is the Municipality of Ljubljana while other partners have still been negotiating. The consortium would not cover solely Ljubljana area but the whole Slovene territory. According to some sources, Slovene Railways are willing to join the consortium while the other player with substantial network capacity – ELES, has not taken much interest. Also, leading cable TV operators are interested to join in.