November 2000

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 summer months, there haven't been many changes regarding the Slovenian alternative networks. Neither the legislation nor the regulations have been changed. This means that the alternative infrastructure continues to be only partially liberalized. As exclusive rights for the construction and management of the public telecommunications network intended for the prevision of public telecommunications, which includes internet has been granted to Telekom Slovenia until 31^st December 2000, the alternative infrastructure may only be used for a limited set of commercial services (a license is also required). Owing the fact that the restrictions were imposed by legislation, the present situation is rather absurd. For example, although alternative networks are liberalized 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 liberalized for the provision of leased lines if they are intended e.g. for private networks, transmission of alarm signals or cable TV.

In September commercial TV stations POP TV and A KANAL joined together, so the national TV Slovenia got a very strong comercial competitor.

ARNES has started to use the network from ELES.

TELEMACH reported the number of the number of their users since this is less than 500, which resulted in management board change and new business strategy, which is now limited only to become one of the leading providers of Internet access and Internet services.

Company EON was sold completely to foreign investors.