November 2000

Albania Update memo

The following report outlines new developments in the past three months and the state of on-going developments.

1. Introduction and Summary

During the third quarter of 2000, changes have been made to legislation and privatisation procedures.

Albanian Mobile Communication Company changed its owner. AMC is no longer a state monopoly, but a private company, which will be followed by other operators very soon.

During August, the open tender for the second mobile operator was launched.

During September 2000, Parliament will ratify the AMC privatisation contract between State and the winner.

2. Information Society Policy

2.1 Historical overview and general legislation

The national telecom operator in Albania is Albtelecom. It provides Public telecommunication network through basic telephones service; Telex-telegraphic service; Radio (communication with coast), Local networks for voice telephony, Leased lines, Local Communication, Domestic Long - Distance communication; International communication, etc.

In cooperation with ALCATEL (Italian company) and SIEMENS (Deutsche Company) the Albtelecom accomplished during 1999 an investment for extending the capacity of transit digital telephonic central, as well as for doubling the capacity of the Tirana, and Durresi central.

Albtelecom is trying to substitute all the systems based on the old technology with the new ones, in order to increase the quality of services.

During 1999, the government announced its plan to draft a new telecommunications law along this framework. The new draft was submitted to the parliamentary commission in the first half of 2000, and was approved by parliament on June 16, 2000. The law is in effect since August 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.

2.1.1 Key legislative measures

During this quarter, the focus of IS developments falls on the licensing of private TVs and Radio operators.

2.2 Umbrella Policies and national IS strategy

It is difficult to discuss about IS strategies in Albania. There is no pure national IS strategy. There are only some spontaneous initiatives undertaken by different bodies/institutions in terms of different projects.

However, some steps have been made in the broadcasting field. During this year, the National Council of Radio-TVs has undertaken the process of issuing licenses to private Radio-TV operators, in cooperation with Telecommunications Regulatory Entity. This process is an ongoing project, the first step of which is planned to be finished by the end of September 2000.

During the first quarter of 2000, Albania becomes a member of the ABC Network project, www.abcnetwork.com, which is currently operating through the chambers of commerce and Industries through Balkan countries, trying to set links and networks between them in local and regional level. The project will continue until the end of 2001. (Source of information: Union of Chambers in Tirana).

2.3 IS Application areas

IS application areas consist of education and science (www.mash.gov.al), training, culture, (www.natlib.gov.al), entertainment, business (www.tips.eu.org), and public administration (www.instat.gov.al)

2.4 Telecommunications and Internet

The privatisation of AMC was finalised by open tender on May 15, 2000, which was won by Cosmote - Telenor (a Greek -Norwegian consortium). Cosmote - Telenor had 85% of shares of AMC company, with a value of USD 85 million. The privatisation efforts will create possibilities for increasing the number of mobile subscribers and opportunities for licensing the next private operator.

In July 2000 the Ministry of Public Economy and Privatisation assigned the selling contract of AMC to Cosmote -Telenor Consortium. AMC is now operating as a private company. During September 2000, Parliament will ratify the AMC privatisation contract between State and the Winner.

During this quarter, the telephony system is extended by over 550,00 conventional and digital lines in urban and rural zones.

The Telecommunications Regulatory Entity prepared a national plan of frequencies up to 30MHz, which was approved during this quarter. This plan was the precondition for starting the process of licensing private Radio-TV companies. National Council of Radio-Television (NCRT) has to declare up to September 30 the winners of the first round of this process for licenses as local operators.

During this quarter TRE gave the license to Paging national – national ISP and paging operator, and is considering other operators who are interested in a license as an ISP.

2.5 Education and research

The Ministry of Education and Science is engaged with education and research projects and activities. SOROS Foundation has already contributed in this field, trying to assist the universities, as well as research/academic institutions, providing e-mail and Internet services to them for free.

2.6 Transport

During this year, government has received many investment funds (grants) in the frame of Stability Pact, in building the necessary infrastructure that will serve as a bridge linking Balkan and East European Countries (part of the eight corridor). The necessary infrastructure of Albania, which means roads and railroads, is under construction.

2.7 Health Care

SOROS, in cooperation with the Ministry of Health, has undertaken some investments in computerising Ministry of Health and directories in districts.

2.8 Public access to data

"The Right of Information on Official Documents", no. 8503, dated June 30, 1999, regulates the right of people to request information regarding official documents. It will also regulate the ways of getting information as well as the kind of information that can be accessible to the public.

The Minister of State to the Prime Ministry has undertaken in the frame of Anti-Corruption scheme a campaign for sensitising and increasing public awareness about their rights to information as well as the awareness of civil servants of their responsibility to give the information as required by the new law.

2.9 Privacy, data protection, consumer protection

Law No. 8517, dated July 22, 1999, enacted in accordance with articles 35, 78, and 81.1 of the Constitution of Republic of Albania, guarantees by law the use and protection of personal data and information, as well as the individual privacy. The law prevents using the data without permission of the people involved.

3.International relationships and agreements

On June 8, 2000, Albtelecom assigned a co-operation agreement with Siemens Company, for implementing several investments in telecommunications infrastructure in Albania.

4. Market; Privatisation, foreign investment, mergers, acquisitions, call for tenders, …

AMC privatisation was finalised by the open tender on May 15, 2000 won by a Greek-Telenor consortium. Such privatisation will create possibilities for increasing the number of mobile subscribers, as well as the opportunities for licensing the next private operator, in order to avoid monopoly at all.

In August, the Ministry of Public Economy and Privatisation has launched the open tender for the second mobile operator. All the necessary information is available on the Internet.