July 1999

Bosnia Master Report

I - General background

Following the war in former Yugoslavia, the Dayton Agreement in December 1995 created two administrative divisions (or "entities"): Federacija Bosne i Hercegovine (Federation of Bosnia and Herzegovina, or FBiH) and Republika Srpska (Republic of Srpska, or RS). FBiH is further divided into ten cantons.

Both entities enjoy a high level of autonomy (e.g., in the field of army and police forces, border and custom offices, financial agencies, and educational systems) and have their own governmental structures, including a parliament (assembly), government, and a presidency. In addition, they have two separate telecommunications systems.

Bosnia and Herzegovina’s parliamentary structure is operational in theory, but in practice a number of obstructions to everyday procedures remain. Bills fail to become statutory. The Office of the High Representative (OHR), appointed by the UN Security Council therefore acts as the additional legislative body in Bosnia-Herzegovina, and has an important impact on the legislative framework including telecommunications regulations.

Deregulation in the Western European telecommunications market has not occurred in Bosnia-Herzegovina. The "Rule Book of Telecommunications", issued on May 1999 (Official Gazette BiH, No. III/7) still does not clearly deal with the question of deregulation. In the telecommunications sector, current legislation prevents competition in the sector of telecom operations and services providers. By the "Law on Telecommunication" (cf. below) all laws and bills inherited from former Yugoslavia continued in effect but the new laws/bills should be announced within 1999-2000. The monopoly versus deregulated situation is expected to continue for another 5 – 8 years.

1. General Telecom Policy

The new telecommunications law, the "Law on Telecommunications," elaborated under the aegis of the ITU in close co-operation with the European Bank for Reconstruction and Development (EBRD) and Office of the High Representative (OHR) was introduced in November 1998 (Official Gazette BiH, No. II/24) on an interim basis. The representatives from the State Council of Ministers of Bosnia and Herzegovina and the Federation and the Srpska Republic signed the draft Telecommunications Law. The law was adopted by Parliament on 8/9 June 1999. The aim is to provide a clear and transparent telecommunication environment with a view to enlist the support of business and economic partners in the reconstruction efforts. It should also establish which regular services are provided by both domestic and foreign operators.

The war resulted in the telephone network’s partial destruction. Therefore focus in this sector is on reconstruction, modernisation and expansion. In the past two or three years there has been a lot of success in achieving these goals, thanks to international efforts made by the EBRD and the ITU. In urban areas, or areas where damage to the infrastructure was limited, the average waiting time for telephone subscription varies from 30 to 90 days. Installation costs are expensive, but average monthly costs are low compared to other European countries. The operators are working hard to improve their services.

2. Institutional structures in charge of the regulatory issues

The administrative divisions in Bosnia-Herzegovina have created a disturbed picture of regulatory issues.

• The Ministry of Civil Affairs and Communications

The Ministry of Civil Affairs and Communications has regulatory control and authority at the federal level. In practice, effective regulatory power lies with its counterpart ministries at entities-level in FBiH and in RS. However, the Ministry is responsible for some basic regulations that govern the whole country, such as the Decision on measures for solving the "Year 2000" computer problem (Official Gazette BiH, March 20, 1999)

• The Office of the High Representative (OHR)

The Office of the High Representative (OHR), appointed by the UN Security Council, acts as the additional legislative body in Bosnia-Herzegovina and has an important impact on the legislative framework, including telecommunications regulations.

The Office of the High Representative has been pressing for development of the new "Law of Telecommunications". In November 1998, the OHR introduced the "Law on Telecommunications" (Official Gazette BiH, No. II/24) on an interim basis according to powers vested by the General Agreement for Peace in Bosnia-Herzegovina. Parliament signed the draft agreement on this law at the end of 1998 and adopted it on 8/9 June 1999. However it cannot be discussed further at the moment as the associated boards, committees, agencies and legal acts have not yet been established.

• The Chamber of Commerce

The Chamber of Commerce is responsible for the protection of economic competition, as there is no specific office for this purpose. It is difficult to define and establish proper economic rules due to various programmes of reconstruction. International assistance has often occurred without common consensus on content, priorities and methods for rebuilding the economy, markets, and manufacturing etc.

3. International relationships and agreements

There is little difference in the international telephone connectivity services offered by the three telecom operators mentioned above.

Bosnia and Herzegovina is connected to international networks via neighbouring countries. A call from one Serbian area to another is routed out of the country through Serbia and then back again. The RS telecom provision exhibits a strong Yugoslavian influence by both the country and the Yugoslav telecom operator. Similarly, FBiH displays a Croatian influence in the Croat populated region of FBiH. The influence of Yugoslavia and Croatia is so strong that it is sometimes possible to access telephone numbers in Bosnia and Herzegovina using country codes for Yugoslavia or Croatia. This is unusual in the global sense.

The Bosnian PTO is effectively split into three, based around Muslim Sarajevo, Croatian Mostar and Serbian Banja Luka. In principle, they would like to work together, and they all answer to the Ministry of Communications, but in practice they can't agree," said the GPT spokesperson. For example, " They won't interconnect with each other.

There have been several attempts to introduce the Internet using assistance and donations from international institutions. Some organisations has prepaid terrestrial or satellite lines for a determined period (up to two years), with the understanding that after this period they could start up their own lines, and later act as Internet Service Providers.

The greatest telecom provider (JP PTT BiH – Public Enterprise PTT Bosnia and Herzegovina in Sarajevo) established "BIHNET" – the first and the biggest commercial ISP in the country. The major commercial ISP in RS is INECCO. Both companies have their own links to the international Internet community – BIHNET to the USA and INECCO to Norway.

There are also some smaller ISPs – mostly built with donations and help from international institutions (Soros Foundation, WUS Austria etc.). The most important among them are Centar za obuku u Mostaru (Training Centre Mostar) which is sub-provider of BIHNET, and Univerzieteski telekomunikacijski centar Sarajevo (University of Sarajevo Telecommunication Centre) with links to the University of Vienna in Austria. Last year the BIHARNET Centre (Bosnia and Herzegovina Academic and Research Network) was established by all universities in Bosnia and Herzegovina. The BIHARNET Centre has the strongest link to the international community and is connected to the European research network TEN-34/TEN-155 via the similar Slovenian Academic and Research Network (ARNES). It is the only ISP in the country with its own infrastructure that covers the whole country (regardless of entities). This is achieved by the concept of a strong backbone with several access points. The usage of the BIHARNET network is limited to users from the educational, research and cultural sphere, who enjoy free access. The BIHARNET network is the result of the project funded by the Government of the Republic of Slovenia through the framework of the Donation Programme for Bosnia and Herzegovina.

4. Regulatory Framework

4.1 Historical overview

War broke out almost immediately following Bosnia and Herzegovina’s declaration of independence from the former Yugoslavia in 1992. After the war, Bosnia and Herzegovina inherited most of its regulations from the former Yugoslavia, but the war had made it difficult for the executive and legislative branches to build a new regulatory system. This is now a primary goal. Tasks for rebuilding the country, e.g., infrastructures, education, health and social care systems, have been given priority. Much work has been done to achieve economic recovery and create a modern market economy. There have been advances in all public utilities - railways, bus lines, roads, navigation, telecommunications, postal services, electricity, water supplies. Many large companies, for example, all electricity power stations, coal and other mines, refineries, metal and chemical plants, car industry, etc., are still state-owned; but the number of small and medium-sized privately owned enterprises is increasing.

4.2 Key legislative measures

The arrangements for external debt and the liquidations of the National Bank have been completed. There has been important progress in budgetary and fiscal policy and in customs and trade. The establishment of the BiH Agency for the Promotion of Foreign Investments is in development. In addition there is an ongoing process for privatisation and liberalisation.

Bosnia and Herzegovina currently contain what must be the densest concentration of radio and television in the world. According to the OHR Report from 16 July 1999 (see htpp://www.ohr.int/reports/r990716a.htm par. 96) there are over 270 broadcasters that are using nearly 750 radio and television transmitters. Today there are three major television broadcast companies that are state-owned and reflect the three ethnic groupings, and there is the fourth that is internationally sponsored alternative TV media:

• RTV BiH (Radio and Television of Bosnia and Herzegovina). At the moment it covers both Muslim and Croat ethnic groups in FbiH;
• SRT (Srpska Radiotelevizija) covers the Serbian ethnic group and transmits its programme from RS;
• Television Erotel covers the Croat ethnic group and comes form Mostar; and
• OBN (Open Broadcast Network) is the only cross-entity television broadcaster in Bosnia and Herzegovina and reflects the aims, aspirations and cultures of its people of all ethnic groups. Its programme reaches nearly 80% of the population in both Entities.

Regulations also permit private television broadcast stations, with the result that there are some smaller private television stations, mostly targeted at local areas, like TV Oscar C, TV Mostar, TV Hayat, KIS, etc.

4.3 Issues

4.3.1 Liberalisation

Until August 1999 there were the two mobile telephone systems (GSM) in Bosnia and Herzegovina. One operates under the JP PTT BiH (Public Enterprise PTT Bosnia and Herzegovina) and is aimed towards the Muslim area of FBiH. In the Croat area of FBiH the GSM service is in fact in the hands of the foreign operator, namely the Croatian CRONET, and does not comply with the numbering scheme. The number prefix is not the Bosnia and Herzegovina's 387 but the Croatian 385. Until summer 1999, both GSM services were covered particularly well in larger cities like Sarajevo, Zenica, Tuzla, Mostar, etc. Today they are covered quite well throughout the whole Entity. On 2 August 1999 the GSM system "MS 1" was officially put into service in RS with a capacity of 20,000 subscribers.

The Bosnian PTO is effectively split into three, based around Muslim Sarajevo, Croatian Mostar and Serbian Banja Luka. In principle, they aim towards working together, and they all answer to the Ministry of Communications, but in practice agreement has proved difficult.

4.3.2 Tariff policies

At the Roundtable meeting in Bern, Switzerland on 29-30 April 1999, it was agreed that the Numbering Plan would be a closed Plan. The Plan was designed in such a way as to assure a smooth conversion from an open Plan to a closed Plan in the future. A Closed Plan in simple terms treats the entire country as one large city with "districts", but still takes into account national tariff zones.

4.3.3 Quality of services

There are not yet quality standards for telecommunication services in Bosnia and Herzegovina.

5. Freedom and protection

5.1 Copyright and intellectual property rights

There has been no development in this area following regulations and legal acts. Copyright law and intellectual property rights exist on paper. There are no new laws accepted and those from former Yugoslavia are inherited. It is very difficult to supervise the active situation. International pressure from the United Nations, OHR, OSCE and other bodies ensures that this process is ongoing.

5.2 Privacy, data protection, consumer protection

There are no specific acts for privacy and data protection, except some well-known articles in common acts, again inherited from the former Yugoslavia.

5.3 Electronic protection, legal protection and security (encryption, electronic commerce)

Electronic commerce is non-existent. Encryption is not forbidden, but no legal acts deal with crypto-security.

6. Information Society Policies

There is no IS activity in the terms we are speaking of. In the last years there were separate individual attempts to collaborate on some European projects regarding IS but without continuous process, mostly due to the war and after-war situation. For example, during the years 1994 - 1997 there was a widely responded to "European Information Society Forum" that was aimed at the Central and Eastern European countries. Several "panels" were opened and there was the panel "Co-operation in Research and Development," and it seems that it especially interested people from Bosnia and Herzegovina, as there were many enthusiastic people willing to attend the panel's meetings. Unfortunately Bosnia and Herzegovina never adopted an official approach. The people who expressed readiness and interest and contacted the panel were not always the same. It could be said that the main reason for the failure of collaboration was caused by the political situation in the country, including of course the war.