October
1999
Albania
Update memo
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Albania Update memo |
The following report outlines new developments in the past three months and the state of on-going developments.
During the previous quarter July-October 1999, there have been several changes in the Albanian regulatory framework. These changes will lead to greater liberalisation of the telecommunications sector in Albania.
The changes are listed below.
On 21 July 1999, according to the law for "Strategy for Privatization of the sectors of special importance," Parliament gave permission to the privatization of the only Albanian mobile company, Albanian Mobile Communication (AMC).
Out of the strategic sectors, the AMC is the first company from the telecommunication sector that has its own law for a full privatization. On the basis of this law, the AMC will be privatized through the open international tender, where one strategic partner will receive the majority of shares. This law will offer strategic investors at least 85% of shares. More specifically, at least 51% of shares will be offered to one or more investors that represent specialized companies with the necessary financial and technical capabilities in the telecommunications field. Meanwhile, up to 15% of shares will be offered to AMC employees, and expropriators of land through privatization bonds. The remaining shares will be transferred on the basis of the "Law for Commercial Associations", "Law for vouchers" and other laws regarding public auction.
The process of AMC privatization has attracted the interest investors from countries such as England, USA, and Germany. The Germany Chancellor, Mr. Shroeder, is expected to give support to a German company to purchase shares in the AMC.
On 15 July 1999 Decision No.3.2.2 regarding the Reorganization of the National Commission of Radio-Communications (frequencies) was taken by the Council of Ministers. The Commission is a collegial, consultative body that suggests the national plan for devising the frequency bands for all civil and military services to the Council of Ministries.
The National Council of Radio-Television was established in September 1999. It will issue licenses to local, private and national Radio-TV-s.
The Ministry of Public Economy and Privatization is currently discussing the new draft law for Telecommunications before its discussion in the Council of Ministers, and then in the Parliament. The Ministry of Public Economy and Privatization has designed the new draft law, assisted by the TRA (Telecommunication Regulatory Authority) and AERIS, and in cooperation with the IMI Consultant Company for strategic privatization. The new law will establish the necessary regulatory environment for further privatization of Albtelecom. These developments comply with the recently approved Policy of Telecommunications Developments, and will provide further liberalisation of the telecommunications sector.
A joint venture between Albtelecom and New World Telecom has been created, with 25% of shares owned by Albtelecom and 75% of shares owned by NWT. Over 2000 people will be employed in the new company.
This company will provide mobile telecommunication services, as well as transmitting electronic data without cable. NWT will establish its network once it receives the license. According to Peter Streatfield from NWT: "for each US dollar invested in this sector, the country revenues will be increased by USD 6". The safety communication will enhance business development in Albania. It will also further integrate Albania into European organizations.
NWT's investment of USD 300 million will be extended to over 95% of Albanian territory, of which two-thirds will be fix telephony and one-third mobile communication. It will use VSAT technology, not the telephony with cable.
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