Update January 2000: Slovenia

1 Governmental Telecommunications and Information Society Policy and Issues

• The World Bank Group will co-finance modernisation of the Slovene Land Cadastre. On 17 November, Minister of Finance Mr Mitja Gaspari and Regional Vice-President for Europe and Central Asia of the International Bank for Reconstruction and Development (IBRD), Mr Roger Grave signed an agreement concerning the co-financing of the Slovene Land Cadastre Project. The main objective of the project is to improve the viability of the real property registration system and to contribute to the development of efficient real estate markets. The cost of the project is estimated at 22 million euros, of which 14 million will be secured via a bank loan. The project will be implemented over a five-year period by four ministries: Environment and Physical Planning; Supreme Court and the Ministry of Justice; Finance; Agriculture, Forestry and Food. At its session on 9 December 1999, the Government proposed that the National Assembly ratifies the Agreement Between the Republic of Slovenia and International Bank for Reconstruction and Development for a Loan (Modernisation of Real Property Registration System), signed on 17 November 1999.

• Reform of the payment system. At its session on 2 December 1999, the Government passed several resolutions relating to the reform of the payment system. The reform envisages the transfer of the payment system from the Agency of the Republic of Slovenia for Payments to banks and saving banks. The reform of the payment system is due to be completed by the end of March 2000, at which time the Agency will be closed down. As part of the reform, a project of intra-banking payment system informatisation is being carried out. It is being lead by the Bank of Slovenia. The reform of the payment system also envisages the establishment of the Public Records and Services Agency that will continue performing the current statistical and informative tasks of the Payments Agency, and take over the keeping of the business register, tasks of restoring and operating essential state records, and informatisation of certain tasks of ministries.
  
• Slovenia joined European Schoolnet. Slovenia became the nineteenth member of the EUN – European Schoolnet. The European Schoolnet is a framework organisation for promoting collaboration between European ministries of education, bringing together national and other education networks. It aims to ensure the interoperability of school networks developed in each member state and provide a "model platform", offering teachers and pupils access to high quality information and services of European interest. Slovene membership is co-ordinated by the Computer Literacy Development Programme (Ro), run by the National Education Institute.
  
• National distribution of health insurance cards began. On 18 October 1999, the national distribution of health insurance cards began. According to the Health Insurance Institute of Slovenia’s plans, the distribution shall have been completed by the Summer 2000. By the end of 1999, the cards shall have been delivered to insured persons in the regions of Novo Mesto, Celje, and Ravne na Koroskem. The insurance card is being introduced into pharmacies step by step. The implementation of electronic prescription is also planned.

2 Company Watch and Newcomers

Slovene companies take part in the restoration and development of Southeast Europe. Internet and mobile telephony markets flourish.

• Slovene ICT companies take part in the Southeast Europe Stability Pact. Slovene ICT companies take part in programmes for the development of Southeast Europe. For example, the largest Slovene ICT company Iskratel d.d. will co-operate in the reconstruction of the telecommunications network in Kosovo. The co-operation of Slovene companies is of great importance as they can leverage their experience and knowledge of the region to provide advice to Southeast European countries.
  
• The mobile telephony market flourished. Demand for mobile telephony services in the Slovene market in 1999 exceeded all expectations. The mobile telephony market continued to flourish, especially after the entrance of the second operator (Si.mobil d.d.). The introduction of prepaid services in particular contributed significantly to the enormous growth. The number of subscribers rose by over 150% percent. In order to cope with high demand, Mobitel d.d. secured a loan of 69 million euros for the further development of the mobile telephony network. The loan was secured from two consortia composed of foreign and domestic banks.
  
• Slovenija Online disclosed its business plans. Slovenija Online – SiOL Internet d.o.o., a subsidiary company, 100% owned by Telekom Slovenije started its operations on 1 October 1999 (see a previous report update). The nominal capital of the company is 6,6 million euros. According to Mr Miran Kramberger, a Vice-President of Telekom Slovenije and President of the Supervisory Board of SiOL, the estimated revenue of SiOL in 1999 is expected to amount to about 12,5 million euros. When operations started, the company had 45 thousand subscribers and this figure may reach 50 thousand by the end of 1999. The CEO of Slovenija Online, Mr Sreta Maric, said that SiOL is amongst a few European ISPs that provide access to the Internet over ISDN. The company is planning a number of new services including access over ADSL.
  
• Slovenia is Y2K compliant. According to the Government Centre for Informatics, Slovenia is well prepared in the field of Y2K compliance. No major problems with far-reaching consequences are expected although some limited local disturbances are likely.

3 Mergers and Acquisitions

The consolidation of the market continues.

• The SRC Group merged forming SRC.SI. The SRC Group, composed of SRC d.o.o., SRC Info d.o.o. and SRC Computers d.o.o., merged into a new company SRC.SI d.o.o. thus strengthening its position amongst Slovenia’s top IT services companies. The company has its headquarters in Ljubljana with offices in Maribor, Koper and Nova Gorica. According to the President of the Board, Mr Ivan Zerko, the estimated revenue of SRC.SI in 1999 is expected to amount to over 18 million euros.
  
• CME announed acquisition of Kanal A. After the agreed cancellation of the intention of a merger between CME and SBS, CME announced plans to acquire a majority share of the TV broadcasting company Kanal A. The acquisition would be worth over 12 million euros.
  
• Hermes Plus acquired ICOS. By investing in ICOS d.o.o., Hermes Plus d.d. became its co-owner with an 88 % share. The companies are complementary both in programmes and business directions and will jointly operate on Slovene, Central and East European markets. The Hermes Plus Group now consists of Hermes Plus d.d., HPC d.o.o., Probis d.o.o. and ICOS d.o.o. with an annual revenue of over 26 million euros. It operates within the S&T Group with an overall annual revenue of 75 million euros.

4. Nominations, Retirements, ...

• Re-appointment of the director of Statistical Office of the Republic of Slovenia. After completion of his term as Director of the Statistical Office, the Government re-appointed Mr Tomaz Banovec. Mr Banovec is also a Vice-President of the Government of the Republic of Slovenia Council for the use of information technology in state bodies and public institutions.
  
• New Management Board of EAN Slovenia. The General Assembly of the Slovene Article Numbering Association (SANA) was held on 29 November 1999. The members elected a new Management Board, President and Vice-president by a majority of votes according to the rules of SANA Statute. The General Assembly also accepted a few changes in the association¢ s Statute. The new name of the association is EAN SLOVENIA. At its first meeting, held after the conclusion of the General Assembly, a newly elected Management Board with Mr Franc Kodela as President and Mr Milan Jelovcan as Vice-President appointed Ms Zdenka Konda as the new Chief Executive.