ESIS extension / Albania / Regulatory Developments / Master Report

By law, (Law no. 8038, 23 November 1995, changed by Law no. 8287, 18 February 1998), the Government has the authority to structure telecommunications policy in the Republic of Albania through the respective Ministry/minister. It is this Ministry that regulates/adjusts the telecommunications sector through both the Telecommunications Regulatory Entity and the General Department of Postal Telecommunications. It was only recently that the Council of Ministers approved the telecommunications policy. An essential aspect of developing the telecommunications policy is to orient it towards European Union policies, procedures, and standards, as preparation for entering the EU.

The Albanian government’s long-term goals regarding the telecommunications sector deal with a harmonised development of telecommunications infrastructure within the Republic of Albania, as well as its gradual extension throughout the country, in order to provide:

In order to achieve these goals, it is necessary to accelerate the rate of investment in telecommunications infrastructure; to focus suppliers’ services more on user’s required services, etc.

The government should also consider global trends in the telecommunications sector, such as new technical and trade developments that are reducing telecommunications costs, satellite services that allow for the provision of services to the general public without the participation of national operators, and expanded internet access.

For an implementation of these goals it would be necessary for Parliament to amend the existing legislation. There are two areas this legislation would need to address. The first should make possible privatisation of Albtelecom and AMC, and the second one should improve the regulatory framework for telecommunications, which is necessary for implementation of a contemporary telecommunications policy.

During 1999, the government has announced its plan to draft a new telecommunications law along this framework. The new draft will likely be submitted to the parliamentary commission in the first half of 2000. For the first time in the Albanian history, the draft law contains a chapter regulating the use of the radio frequency spectrum and provisions regarding the provision of telecommunications services in rural areas. The law asserts that the main operators which possess more than 25% of market are obliged to provide services in emergency situations and to some specially targeted groups, such as people in the most remote rural areas, people with limited capacities, etc. The law also provides disciplinary measures for operators that apply abusive measures and creates obstacles for unlicensed operators. In an effort to harmonise with the European Union, the law includes issues such as transparency and equality among users.

The Ministry of Public Economy and Privatisation deals with telecommunications issues.

On 18 February 1998, law no. 8288 for the Telecommunications Regulatory Entity established the Telecommunications Regulatory Entity in Albania. The object of this legal, public, self-financed entity is to guarantee and safeguard public interests and create a transparent legal and regulatory environment that will promote private investments in this sector. A Board of Directors manages the Telecommunications Regulatory Entity. The Board is composed of five members who are in charge of different sectors of the regulatory Entity. They are nominated for a five-year term and cannot be re-elected for more than two terms.

Frequency delivering is a component of the Telecommunications Regulatory Entity, which is managed firstly through decided procedures. The Plan of Frequencies, as well as their distribution to several users, will be in accordance with international recommended standards and procedures, decided by ITU, CEPT and EU. TRE will provide technical assistance of frequency distribution to radio-TV frequencies that will be managed by respective radio-TV authorities.

During June 1999, the National Council of Radio-Television (NCRT) was established. NCRT will give licenses to local, private and national radio and television stations and will be responsible for frequency delivery to these entities. In February 2000, TRE has completed the procedures for frequency delivery of rural telephony, which adapts its definition from the broadcasting model. Licensing is expected to follow very shortly.

A law concerning consumer protection of economic competition currently exists and is administered by the Telecommunications Regulatory Entity.

A consultative council for telecommunications still does not exist, but its establishment is planned for the future. It is presently in the preliminary stage.

A public telecommunications operator by definition is any commercial company that has been issued a license to operate in the public telecommunications network and/or to provide telecommunications services for the general public. There are currently two public telecommunications operators in Albania: Albtelecom and AMC. Both of these companies are fully state owned.

The Minister of Public Economy and Privatisation represents the Albanian government in covenants and bilateral/multilateral protocols, together with governments of other partner countries in the telecommunications sector. International agreements exist that are necessary for the functioning of the telecommunications network in accordance with international standards.

Albania, as a country and as a telecomm operator (through ALBTELECOM), is a member of EUTELSAT, which is an international cooperation covenant. Albtelecom is a member of the Board on the covenant.

Albania is also a member of the International Telecommunications Unit, CEPT, ETSI, ETNO, etc.

A protocol-agreement of ALBTELECOM with New World Telecom exists to establish a joint-venture telecom in rural areas. This is understandable because of enormous deficiencies in the provision of telecommunications services in rural areas, as well as the low level of telecommunications development in general.

The level of telecommunications development in Albania is lower than other post-socialist developing countries. The transition from a dictatorial regime to a democratic one has incurred costs. Albania inherited a deficient information system, which was unable to provide national coverage. It is still in a poor situation. Nevertheless, it has made some progress during these years of transition. Albania still lacks the institutional infrastructure for an Information Society.

In 1998 there were over 3.5 subscribers per 100 inhabitants and 4,474 mobile phone numbers. It was only possible during the last three to four years to extend the telephone lines (for direct call services not through operator) to the most developed cities. As an ongoing process, such extension will take a few years to complete. Comparisons with neighbouring countries such as Italy and Greece, as well as other countries under the former socialist regimes, show that Albania is ranked among the most undeveloped countries in the telecommunications sector.

In 1999 the number of mobile subscribers more than doubled, adding up to a total of over 11,800 subscribers, and the number of telephone lines increased to 118,000. The communications standards have evidently improved, and tariffs have been greatly reduced.

Currently there are two laws that manage the telecommunications service: the Law for Telecommunications and the Law for Telecommunications Regulatory Entity. However, as a result of imminent approval of telecommunications policy, it appears that the content of these laws will be changed and/or adjusted by new acts and regulations in this field. At the end of each year the Telecommunications Regulatory Entity is required to present a report to the government on action taken on the regulatory framework during the year, as well as the performance of other duties as mandated by law.

It is currently under discussion whether the Council of Ministries may approve the existing legal framework, as well as the adjustments in terms of telecom policy. No concrete measures in this area have been undertaken until now.

Key measures	Objective	Date
Decision of Council of Ministers	To formulate a strategy for Albanian Telecommunications Development	No. 601, 20 October 1995
Law for Telecommunications	To determine the rights and duties of operators and users of telecommunications services, and the requirements for designing a project. This law also creates and regulates telecommunications nets.	No. 8038, 23 November 1995
Law for Telecommunications Regulatory Entity	To establish and define the Telecommunications Regulatory Entity (TRE). An important objective of this law is to guarantee and safeguard public interests and create a transparent legal and regulatory environment, which will promote private investments in this sector.	No. 8288, 18 February 1998

Establishment of Albtelecom Company	It is an anonymous company, 100% state owned company	February 16^th, 1999
Telecommunications Policy	Council of Ministers approved the telecommunications policy, which deal with a harmonised development of telecommunication infrastructure within the Republic of Albania, as well as its gradual extension throughout the country.	June 18^th, 1999
Law for Information rights on official documents	This law regulates the right of information on official documents. According to this law, each person has the right to ask information about the official documents, dealing with state government activities.	No.8502, June 30^th, 1999
Law for privatisation of Anonymous Company "Albanian Mobile Company" (AMC)	This law states the formula of share privatisation and the privatisation procedures.	No.8515, July 21^st, 1999
Establishment of National Council of Radio Televisions	NCRT will be the responsible for issuing licenses and frequency delivery	July 1999

	Liberalization Status	Comments
Infrastructure
Public telecommunication network	Monopoly.	ALBTELECOM - license for services with a limited competition.
Local networks for voice telephony	Partially liberalized market.	ALBETELECOM rural telephony services have the license for services with a free competition.
Leased lines	Monopoly.	ALBTELECOM
Alternative Infrastructure (highway, railways, electricity utilities)	No liberalization. State Monopoly.	There doesn’t exist any alternative network which provides telecommunication services, except the Albtelecom
Broadcasting and cable TV	Fully liberalized.	There are over 20 operators, operating by satellite and not by cables.
Voice telephony
Local Communication	Partial liberalization for rural telephony.	ALBTELECOM - license for services with a free competition.
Domestic Long - Distance	No liberalization. State Monopoly.	ALBTELECOM - license for services with a free competition.
International communication	No liberalization. State Monopoly.	ALBTELECOM - license for services with a free competition.
Provision of voice services to closed user groups	n.a.
Mobile communication	No liberalization. State Monopoly.	AMC – license for services with a limited competition.
Analogue	n.a.
GSM digital	No liberalization at all, State Monopoly.	AMC – license for services with a limited competition.
DCS 1800 digital	n.a.
Paging	Fully liberalized.	There are three operators licensed, but only one is active - Hua-Hai Paging - license for services with a free competition.
Satellite communications	Partially liberalized with few operators. Not permanent broadcasting	Several subjects that have partially broadcasting such as: BBC, CNN, etc. License for services with free competition.
Data transmissions	Fully liberalized.	ALBTELECOM - license for services for with a free competition.
Value Added Services	Fully liberalized.	ALBTELECOM - license for services with a free competition.
Internet services provision	Fully liberalized.	ALBTELECOM - license for services with free competition.
Equipment provision	Fully liberalized.	ALBTELECOM - license for services of free competition.

Source of Information: Telecommunications Regulatory Entity (TRE) (vojo@royal.net)

Regarding the timing in privatisation process of strategic sectors (telecommunications is one of these sectors), the older plan/strategy, designed in December 1997 isn't reviewed and published. (Let's say that privatisation of Albanian Mobile Communication should be terminated in June 1999, and in fact it still now hasn't been accomplished.)

During 1999, TRE licensed both Albtelecom and the Albanian Mobile Communication Company (AMC) on August 20 and December 27, respectively. Such licenses are needed before further privatisation can take place. So far, six companies have shown interest in buying AMC. These companies include: Panafon Greece (in cooperation with Vadafon Europe and Albatel), Turcell, Mobilkom Austria, Telekom Italia, and Telenor International (in cooperation with Cosmote) and MIC USA.

In September 1999, AMC and Albtelecom signed an agreement that allows AMC to decide its own tariffs. To promote competition in the market, TRE will control all other agreements between Albtelecom and other mobile operators. During the first quarter of 2000, TRE has prepared a set of interconnection rules that will be used to regulate competition among telecommunications operators.

On 30 June 1999 Parliament approved Law No.8502 on "The Right of Information on Official Documents". This law provides individuals rights to request information regarding official documents.

To promote information society, the Ministry of Education and Science and other institutions have undertaken projects to providing networks, study the state of IST in Albania, establish LANs in scientific institutions, establish an information centre near the Academy of Science, etc. The Ministry of Culture, Youth and Sports has also undertaken projects to develop and computerise public libraries, organise national seminars on libraries and information society in Albania, on status of libraries in Albania, and on how to increase library funding. Soros Foundation has made a significant contribution in these areas.

The United States Agency for International Development (USAID) supports a regional project called GTN Balkans—Global Technology Network. So far, Croatia, FYR Macedonia, Romania and Bulgaria have been involved. During the first quarter of 2000, the feasibility of and conditions for Albania to be involved have been discussed.

GTN is a network of domestic and international partners that assist U.S. small and medium size firms seeking access to an internet-based communications and trade lead system that facilitates collaboration throughout the GTN partnership. GTN is operated out of USAID's Office of Business Development and focuses primarily on agriculture, communications and information technology, environment and energy and health technology. (www.usgtn.org)

In January 2000, after a series of discussions, studies and debates about the status of the Albanian Radio-Television Board, the Board submitted the Public Radio-TV draft status to the Parliamentary Commission of Mass Media Means. The Commission discussed the status on March 17, and the Plenary Session will vote on the status shortly after. The status is currently regulated by Decree no. 8410 dated 09/30/1998 "On Public and Private Radio-Television in the Republic of Albania". Should the new status be approved, the Albanian Public Radio-Television will become a national conveyor providing to all segments of society high-quality electronic media services that aims at public information, education and entertainment. Such services will include coverage of fair and unbiased domestic and international news.