End February 2001
Albania
Master Report
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Albania Master Report |
This is the final Regulatory Developments report on Albania as the ESIS project ended in January 2001. This Master Report covers the whole period of the ESIS project surveying the Countries of Central and Eastern Europe.
1. Introduction and Summary
During these two years of ESIS II project, several regulatory changes happened in Albania. At the beginning of the ESIS II Project, Albania didn’t had any telecommunications policy, which was approved lately in July 1999. This was the first step of changes in the telecommunications field. Later on, other changes in legislation followed the Telecommunications Policy. It was necessary to amend some articles of the Law for telecommunications, and the Law for Telecommunications regulatory Entity in order to be appropriate to the Telecommunications Policy.
Next important change of legislation, was the law for privatizing the AMC company, (Albanian Mobile communication Company, which was expected to be privatized in 1999, but it happened only in July 2000.
1.1 General Telecom Policy
The Law for Telecommunications No.8038, dated on 23 November 1995 (modified by Law No.8287 dated on 18 February 1998) set up the regulatory framework for telecommunications.
In February 1998 another Act was approved for establishing the Telecommunication Regulatory Entity (TRE) as an independent regulatory body. TRE is currently being established.
The Government has the authority to structure telecommunications policy in the Republic of Albania through the respective Ministry/minister (Minister of Public Economy and Privatization.) It is this Ministry that regulates/adjusts the telecommunications sector through both the Telecommunications Regulatory Entity and the General Department of Post and Telecommunications. It was only on June 1999 that the Council of Ministers approved the Telecommunication 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 telecommunication sector deal with a harmonized development of telecommunication infrastructure within the Republic of Albania, as well as its gradual extension throughout the country, in order to provide:
- Access to basic telephony services with reasonable prices;
- A wide differentiated set of modern services (such as Internet and other advanced telecommunication services), which should be accessible by the Albanian population;
- Competition and selection for users;
- Improved protection for consumers.
In order to achieve these goals, it is necessary to accelerate the rate of investment in telecommunication infrastructure; to focus suppliers’ services more on users' required services, etc.
The government should also consider global trends in the telecommunication sector, such as new technical and trade developments which are reducing telecommunication costs, satellite services allowing 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 was necessary for Parliament to amend the existing legislation "Law for Telecommunications" There were two areas this legislation should address. The first should make possible privatization of ALBTELECOM and AMC, while the second one should improve the regulatory framework for telecommunications, which is necessary for implementation of a contemporary Telecommunication Policy.
The new law for telecommunications has been approved. It reflects the telecomm policy, approved last year. 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.
2. Information Society Policy
2.1 Historical overview and general legislation
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 was 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.
In 2000, the number of fixed telephony subscribers was up to 220.000 while the one of mobile telephony was up to 55.000 subscribers.
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.
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 power now.
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
Parliament ratified the AMC privatisation contract between State and the Winner during September 2000.
During August 2000 it was launched the second open tender for the second mobile operator. Until now there are pre-selected from the documentations 4 competitive companies:
Mobilkom-Austria; Vodafon –Air touch; Turk Cell; and Rumeli Telekom. Their offers are expected to be opened on January 8th, 2001 while the license for the Tender Winner is expected to be issued on February 15.
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Key measures |
Objective |
Date |
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Decision of Council of Ministers |
To formulate a strategy for Albanian Telecommunications Development |
No. 601, 20 October 1995 |
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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 |
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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 |
Key legislative measures in 1999 – 2000
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Establishment of Albtelecom Company |
It is an anonymous company, 100% state owned company |
February 16th, 1999 |
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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 18th, 1999 |
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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 30th, 1999 |
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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 21st, 1999 |
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Establishment of National Council of Radio Televisions |
NCRT will be the responsible for issuing licenses and frequency delivery |
July 1999 |
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Approval of the new law for telecommunications |
June 16, 2000 |
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Ratification of the AMC privatisation contract |
Parliament ratified on September 2000 the contract of AMC privatisation by the Consortium Cosmote-Telenor. |
September 2000 |
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Amendment of the Law for Licensing the Private Radio - TV operators |
All private subjects that conduct radio-television activity must have a license for radio-television transmission |
September 2000 |
2.1.2 Liberalization
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Liberalization Status |
Comments |
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Infrastructure |
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Public telecommunication network |
Monopoly. |
ALBTELECOM - license for services with a limited competition. |
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Local networks for voice telephony |
Partially liberalized market. |
ALBETELECOM rural telephony services have the license for services with a free competition. |
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Leased lines |
Monopoly. |
ALBTELECOM |
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Alternative Infrastructure (highway, railways, electricity utilities) |
Partially liberalized |
There are some companies operating in the rural telephony, as well as some cable TV stations operating in Albania |
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Broadcasting and cable TV |
Fully liberalized. |
There are over 50 operators, operating on satellite bases and 3 ones operating through cable. |
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Voice telephony |
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Local Communication |
Partial liberalization for rural telephony. |
ALBTELECOM - license for services with a free competition. |
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Domestic Long - Distance |
No liberalization. |
ALBTELECOM - license for services with a free competition. |
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International communication |
No liberalization. |
ALBTELECOM - license for services with a free competition. |
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Provision of voice services to closed user groups |
n.a. |
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Mobile communication |
Liberalized |
1. AMC (Cosmote-Telenor) – license for services with a limited competition. |
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Analogue |
n.a. |
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GSM digital |
Liberalized |
AMC – license for services with a limited competition. Vodafone- license for services with a limited competition. |
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DCS 1800 digital |
n.a. |
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Paging |
Fully liberalized. |
There are three operators licensed, but only one is active - Hua-Hai Paging - license for services with a free competition. |
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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. |
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Data transmissions |
Fully liberalized. |
ALBTELECOM - license for services for with a free competition. |
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Value Added Services |
Fully liberalized. |
ALBTELECOM - license for services with a free competition. |
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Internet services provision |
Fully liberalized. |
ALBTELECOM - license for services with free competition. |
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Equipment provision |
Fully liberalized. |
ALBTELECOM - license for services of free competition. |
Source of Information
: Telecommunications Regulatory Entity (TRE) (vojo@royal.net)2.2 Umbrella Policies and IS strategyRegarding 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.)
It is difficult to discuss about IS strategies in Albania. It doesn’t exist a pure national IS strategy. There are only some spontaneous initiatives undertaken by different bodies/institutions in terms of different projects.
However, there are made some steps further in broadcasting field. So, the National Council of Radio-TVs has undertaken during this year the process of issuing the licenses to private Radio-TV operators, in cooperation with Telecommunications Regulatory Entity. It is still ongoing project, of which the first step is planned to be finished at the end of September 2000.
In the first quarterly of 2000 Albania becomes 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 is continuing up to the end of 2001. (Source of information: Union of Chambers in Tirana).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)European Commission is supporting an umbrella project called SEED (South
Eastern Europe Digital Economy), trying to extend the E-commerce in Albania in
the frame of the project. TIPS is the project coordinator for the Albania part.
This project aims to determine the main actors that have a great role or will
have in the future in the regional countries, to absorb their suggestions and
ideas, as well as to elaborate a long term plan with the proper recommendations
for these countries as well as for European Commission. The project will be
interactive one.
Several organizations/institutions governmental and non governmental ones,
legislative, or research ones, private or public ones will be registered in a
Central Inventory from which they will have the chance to share the opinions,
ideas, experience. For this reason it is designed a questionnaire, asking about
the main barriers for developing E-commerce in the respective countries
participating in the SEED project.
2.3 IS Application Areas
IS application areas consist on education and science (
www.mash.gov.al), training, culture, www.natlib.gov.al, entertainment, business, (www.tips.eu.org) public administration (www.instat.gov.al) 2.4 Government and administrationAlbanian Government is engaged in a project of designing the E-agenda, which is a Project initiated by England Government. It is in its first step of establishing the networks between the countries participating in the project of E-Agenda. This would help very much in determining the priorities as well as the strategy of realising this project.
2.6 Telecommunications and InternetThere are currently two public telecommunications operators in Albania: Albtelecom and Albanian Mobile Communication Company (AMC). The second mobile operator got the license on February, 2001. 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.
During 1999, TRE licensed both Albtelecom and the Albanian Mobile Communication Company (AMC) on August 20 and December 27, respectively. Such licenses were needed before further privatisation can take place.
For the moment, Albtelecom is an Anonymous company 100% state owned company, while AMC was privatised lately. It was the consortium Cosmote - Telenor (a Greek -Norwegian consortium) that wan the open tender on May 15, 2000. There are preparing the necessary procedures for contract assignment between the consortium, and the Ministry of Public Economy and Privatisation, which is expected to be next weeks. According to the all documentation and regulations, the contract assignment shouldn't be made later than July 30, 2000.
The Cosmote - Telenor had 85% of shares of AMC company, with a value of USD 85 million.
Parliament approved on June 16, 2000 the new law on telecommunications, which became in power 15 days after its publishing in the Governmental Newspaper.
The new law predicts more space for the telecommunications development.
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 aim at public information, education and entertainment. Such services will include coverage of fair and unbiased domestic and international news.
In February 2000, TRE has completed the procedures for frequency delivery of rural telephony, which adapts its definition from the broadcasting model. It licensed 9 rural operators during the last quarterly of 2000.
TRE has prepared the national plan of frequencies up to 30MHz, which has to be discussed next weeks at the national council of frequencies. It was approved during the third quarter of 2000.
On June 2000 it was licensed the national ISP-Cybernet. It will increase the number of people having access to information via e-mail 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). The 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. There’s no more any state owned mobile company.
Parliament ratified the AMC privatisation contract between State and the Winner during September 2000.
The telephony system is extended by over 55000 convention and digital lines in urban and rural zones, during this quarter.
During this quarter TRE gave the license to Paging national – national ISP and paging operator, and is taking into consideration the other operators who are looking for getting the license as ISP.
2.7 Electronic CommerceSome projects are undertaken during the year 2000 by Government with the support of EC and other International Bodies in order to study the preconditions for digitalisation of economy and e-commerce development in Albania.
2.8 Education and research
Ministry of Education and Science is engaged with education and research projects and activities. Even 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.
2.9 Transport
According to the Stability Pact, Albania is planned to undertake some projects on building and reconstructing many roads. Albania has a very amortized infrastructure of roads. The projects are expecting to be operational during 2001.
2.10 Health CareSOROS has undertaken in cooperation with Ministry of Health some investments in computerizing Ministry of Health and directories in districts.
2.11 Competition
In September 1999, AMC and Albtelecom signed an interconnection agreement that allows AMC to decide its own tariffs. It will be in power until 2001. So, however the AMC changed the owner, it has to obey to this agreement. 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.
2.12 Access for All
Law for the right of Public Information, assure any person to have the right of information on every thing that isn’t considered as a state top secret.
2.13 Copyright, Intellectual property rights
Copyright and intellectual property rights are protected by law no. 7564, of 19 May 1992 on "Copyright".
2.14 Public access to data3. Institutions and Organisations in charge of IS regulationAccording to the law on "The Right of Information on Official Documents". no. 8503, dated on June 30, 1999, it is regulated by law the right of people to request information regarding official documents. There are also determined the ways of getting the information as well as the kind of information that can be accessible for public.
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 on information as well as civil servants about their dues to give the information according to the law.
2.15 Privacy, data protection, consumer protection
According to the law No. 8517, dated on July 22, 1999, in accordance with articles 35, 78, and 81.1, of Constitute of Republic of Albania, it is guaranteed 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 responsible people.
2.17. Freedom of expression and information
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.
www.mepp.gov.al)3.1. Ministries
The Ministry of Public Economy and Privatisation deals with telecommunications issues. (
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.
3.2. National regulatory Authorities
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.
Telecommunications Regulatory Entity is also engaged to make the frequency delivering. The Plan of Frequencies, as well as their distribution to several users, has to 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 gave licenses to local, private and national radio and television stations and it will be responsible for frequency delivery to these entities.
TRE delivered the frequencies of rural telephony, as well as issues licenses to 9 rural operators during the last quarter of 2000.
3.3. Office for the protection of competition
It doesn't consist a special office to manage this, but however, TRE is in charge to control the competition in communications field, decided by law for TRE.
3.4. Consultative councils
A consultative council for telecommunications still does not exist, but its establishment is planned for the future. It is presently in the preliminary stage. TRE is dealing with this.
3.6. Organisations in charge of the promotion of the IS
There are several organisations and institutions that are spontaneously promoting IS, such as Ministry of Education and Science, SOROS foundation, etc. but no one is being in charge by Parliament, or by Government. It is because it doesn't exist a real strategy for IS developments in Albania, which makes very difficult this process.
So, 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.
4. International relationships and agreements
EBU and ARD.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 co-operation 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.
Since May 1999, Albania becomes a member of
On June 8, 2000, Albtelecom assigned a co-operation agreement with Siemens Company, for implementing several investments in telecommunications infrastructure in Albania.
5. Market; Privatisation, foreign investment, mergers, acquisitions, call for tenders, …
AMC privatisation was finalised by the open tender organised on May 15, 2000, wan by Greek-Telenor consortium. This will create the 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, ministry of Public Economy and Privatisation launched the open tender for the second mobile operator. All the necessary information was available on the Internet. From the companies participating in the open tender, 4 of them are pre-selected from the Ministry of Public Economy and Privatisation to continue the competition. On February 2001 it is expected to be licensed the second mobile operator.
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