January 2000

Mediterranean Countries Synthesis of the Update Memos

1. Overview

Most of the Mediterranean countries are just entering the first phases of telecommunications liberalisation. This explains why current legislation does not allow the production and commercial exploitation of alternative networks, excluding Israel. The process towards liberalisation needs important reforms, which are part of overall development policies. Key components of such reform would be : changing the status of State owned companies, the development of specific legislation , … At the same time, potential actors indicate that they are attracted by new growth opportunities (this is for example the case of Electricity Authority of Cyprus (EAC)), nevertheless, the formation of development strategies is a time consuming process.

The diagram below presents the main axes of the evolution in the status of alternative infrastructures.

Alternative infrastructures evolution process

National reports clearly show the different status of alternative infrastructures according to the countries.

The diagram below provides an overview for the Mediterranean area.

Alternative infrastructures opening timetable

2. Main events in the last quarter September – December 1999

2.1. Importance of cable networks

Cable networks offer important opportunities : up-graded networks enable the provision of television services, but also high bandwidth Internet access as well as basic voice services. Cable operators are well positioned in growing markets, they should be key actors in the future.

It is worth noting that in Malta, recent regulation allows Internet access providers to make use of Melita Cable’s (cable TV distribution monopoly) network to provide Internet access.

2.2 Attribution of licences for alternative infrastructures owners

In Israel, a first licence for an alternative infrastructure network was allocated by the Ministry of Communications to the Israel Railways Company. Israel Railways implemented optic fibers and digital switchers over 250 km from the North to the South. Israel Railways targets the carrier’s carrier market. The company will offer capacity services to new telecommunications operators.

In Cyprus, alternative infrastructures are not liberalised. Nevertheless, it is worth noting that the Electricity Authority of Cyprus (EAC) is currently the only public utility which has developed an alternative network. EAC is up-grading its network, which will be able to provide telephony services as well as Internet applications in the near future.

2.3. Internet backbone deployment and authorisation of Internet services providers

In Syria, the build up of a national Internet backbone should start in the first quarter 2000. This project will enable the development of the Syrian Internet industry. Indeed, Syrians are used to relying heavily on international telephone connections to get access to the Internet via Lebanese ISPs. Private ISPs should be authorized in the medium term.