October 1999

Bulgaria Master Report

The main priority in the Bulgarian government policy is euro-integration. To achieve this goal Bulgaria should fulfil the requirements for membership according to the European Agreement between the European Union and their member states on the one hand, and Bulgaria, on the other.

In the light of this priority 1998 and 1999 is a period of profound reforms in the information sphere. After the separation of state function from the economic ones in the Telecommunications (1991), separating Telecommunications from Postal Services (1992) and the development of the legal framework in the field, in 1998 the Information Society (IS) turned into one of the most important issues on the political agenda of Bulgaria. Strategy and national program for IS development in Bulgaria are developed and submitted at the end of September 1999 for adoption by the Council of Ministers. Telecommunications Sector Policy was adopted (Resolution N 570 of the Council of Ministers / 29 October 1998) and entered into force. The Telecommunications Sector Policy will be periodically updated.

1. General telecom policy

The government carries out general telecom policy on basis of the Telecommunications Sector Policy of the Republic of Bulgaria (1998). This act is an expression of the concepts, plans and objectives for development of market economy in the sector and establishment of fair competition. As main issues during the transition period are defined:

• modern legal and regulatory framework;
• alignment with acquis;
• liberalisation of the market of networks and services;
• Development of Information Society in Bulgaria.

2. Institutional structures in charge of the regulatory issues

2.1 Public Administration Units

According to the Art 6 of the Law on Telecommunications (State Gazette, 93,1998), the Telecommunications activities are managed by the Council of Ministers, the National Radio Frequency Spectrum Council and by the Committee on Posts and Telecommunications (CPT), according to their powers, as specified by this Law.

2.1.1 The Council of Ministers defines the state policy in the field of Telecommunications by approving a sector policy statement. This statement determines the strategy, principles and stages of development of the Telecommunications sector and shall contain the types of activities and services as well as the time schedule of their liberalisation. The Council of Ministers approves the granting of licenses for establishment of Telecommunications networks and provision of Telecommunications services, using radio frequency spectrum.

2.1.2 The National Radio Frequency Spectrum Council at the Council of Ministers implements the state policy on the radio frequency spectrum. The Council prepares and periodically updates, and the Council of Ministers approves, a National Frequency Plan for the allocation of radio frequencies and radio frequency bands from the radio frequency spectrum for civil needs, for the needs of defence and of security, and for shared use.

2.1.3 The Committee on Posts and Telecommunications as a state central public administration unit, implements the Telecommunications policy on the basis of the present Law and the Sector policy adopted by the Council of Ministers in areas such as:

• Restructuring of the sector;
• Research and development in Telecommunications;
• Development of the Information Society;
• Euro-integration;
• Management of Postal communications;
• Management of the budget funds for the professional educational institutions, for professional training, and for the defence and mobilisation training of the military units in the Telecommunications sector;
• Management of the activities and logistics of the military units of the Telecommunications sector in time of war and peace.

2.1.4 The Co-ordination Council on Information Society at the Council of Ministers was established in 1998 (Decree N. 40 of the Council of Ministers/ 17 February 1998). Its main functions are to design strategies and aid the implementation of adopted policies related to the development of IS in the country in close interaction with the different units of the central and local public administrations.

2.2 National regulatory authorities

According to the national legislation, there are two regulatory bodies in the field:

2.2.1 The State Telecommunication Commission is a state authority - a collective body consisting of five members, including a Chairman and his Deputy, all of them appointed by the Prime Minister with a seven-year term of office. The Committee has a full range of regulatory functions that are separated from Telecommunications policy, as well as public ownership functions, and especially:

• Convey a preliminary study of the necessity and technical feasibility of the issue of a license for the establishment of Telecommunications networks and for provision of public Telecommunications services, using radio frequency spectrum;
• Grant, amend, supplement, suspend, terminate and revoke licenses for Telecommunications activities;
• Grant, amend, supplement, suspend, terminate and revoke licenses for establishment of Telecommunications networks and provision of Telecommunications services, using radio frequency spectrum after Council of Ministries approval;
• Grant, amend, supplement, suspend, terminate and revoke licenses for radio- and television activities upon decision of the National Council on Radio and Television (NCRT);
• Prepare the National numbering plan and allocate it among the operators in compliance with the adopted principles;
• Draft the secondary legislation referred to in this Law etc.

2.2.2 The National Council on Radio and Television is a specialised independent body composed of nine members, of whom five are elected by the National Assembly and four are appointed by the President of the Republic, with six years term. The composition of the National Council for Radio and Television from each quota will be renewed every 2 years. The National Council on Radio and Television has the following main functions:

• Supervise the activities of radio and television broadcasters in view of the observance of the Law on Radio and television;
• Elect and remove the managing directors of Bulgarian National Radio and Bulgarian National Television;
• Approve, on a proposal from the managing directors, the members of the managing boards of Bulgarian National Radio and Bulgarian National Television;
• Give opinions during the drafting of legislative instruments and in case of concluding international agreements relating to radio and television;
• Make decisions concerning the granting, modification and termination of a license for radio and television activities;
• Refer to the competent authorities the violations of legislative instruments in the course of carrying on radio and television activities etc.

2.3 The Committee on Protection of the Competition is an independent state-specialised body for protection of the fair competition, for the implementation of the existing competition legislation and antimonopoly legislation. Eleven members, seven of them lawyers and four economists - elected by the Parliament for five-year term, form the Committee.

2.4 Public telecommunication operators
The privatisation of the public operator Bulgarian Telecommunication Company (BTC) is in progress; Deutsche Morgan Grenfell is the Government’s financial agent for the privatisation of 49% of BTC. The state operator of Greece OTI in consortium with the Dutch company KPM is the only applicant for BTC. Granting of a second GSM license is a part of this privatisation procedure.

First GSM license is granted to a Bulgarian stock company Mobiltel.

3. International relationship and agreements

Bulgaria has intensive international contacts on bilateral and multilateral basis.

The state institutions, trade organisations, educational units and non-governmental organisations participate actively in joint programs and projects in the information and communications area.

Of primary importance is the fulfilment of the criteria for the membership in European Union, which have been reflected in the European Agreement for association between European Union and their member states and Bulgaria. Art.83 of this Agreement treats the development of Bulgarian Telecommunications.

Bulgaria takes part in the work of the structures of the Council of Europe in the field of media and having ratified the European Convention on Trans-frontier Television is engaged in further elaboration and adoption of legal instruments of the Council of Europe.

Commitments on liberalisation of Telecommunications are arising from the membership of the Republic of Bulgaria in the World Trade Organisation (WTO). Within the framework of negotiations with WTO, was reported by representatives of both EU and other member states that the Lists of Commitments of Bulgaria on liberalisation of the Telecommunications network and services are well balanced. In this way providing both the openness of the Bulgarian Telecommunications market to competition and the necessary protection of the national interests.

Concerning Intellectual Property protection Bulgaria is in alignment with the acts of the World Organisation of Intellectual Property WIPO. Amendments of the national legislation have been adopted according to the TRIP’s agreement.

4. Regulatory framework

4.1 Historical overview

The former audio-visual legal framework determined by the Law on Telecommunications (1975), the Law on Concessions (1995) and the Law on Radio and Television (1996) has entered a procedure of radical transformation. The Law on Telecommunications was entirely archaic. The Law on Radio and Television was proclaimed unconstitutional in its main parts and it was impossible for the reformatory parliamentary majority elected in 1977 to start on a legal basis the liberalisation of the information sphere.

4.2 Present general legislation

In compliance with the National Program for the adoption of the acquis (1998), the National Strategy for IS Development envisaged legislative measures for transition to IS. Amendments to the Intellectual Property legislation reflecting new information technologies’ developments have been adopted. National strategy for hi-tech development and respectively hi-tech legislation are in consideration. Fully harmonised with acquis National Post Strategy and Law on Post Services are submitted for adoption. The draft of Access to Information Law is broadly discussed now. Data protection legislation is on the agenda of the Government.

After the Government of Bulgaria adopted a National Telecommunications Sector Policy based on EU documents in this area, the next step of the reform was the elaboration of the legal framework of the Telecommunications sector. The new Telecommunications Law was enacted on 27th of July 1998. The legislation includes the establishment of an independent National Regulatory Authority, the State Telecommunication Commission, appointed by the Government. In addition, a liberalised regime for all activities in the Bulgarian Telecommunications sector has been introduced, with the exception of provision of voice telephony and its underlying infrastructure for which BTC has exclusive rights until December 31, 2002. Liberalisation is to be implemented in stages by issuing general authorisations in compliance with an annual government policy document.

Law on Telecommunications provides conditions for:

• liberalisation of Telecommunications activities and services, establishment of a free market and loyal competition;
• fair and non-discriminatory treatment of the operators;
• provision of universal service on the territory of the entire country at affordable prices;
• protection of the national security interests.

A package of secondary legislation has already been prepared.

The Law on Radio and Television (State Gazette, 134,1998) regulates the radio and television activity in its totality. This regulation cover from the establishment of a broadcasters to the supervision of its functioning at a national or local level and sets out general rules for all broadcasters -- public and commercial, irrespective of the way of transmitting their programs -- by wire, by satellite or over the air. The law transposes the main standards of the EC Television Without Frontiers Directive concerning:

• the freedom of reception and retransmission,
• the promotion of European audio-visual works and independent European producers,
• the advertising, teleshopping and sponsorship,
• the protection of minors and public order,
• the right of reply etc.

Licensing procedures for telecom operators and for radio and television operators have begun.

4.3 Key legislative measures

4.4 Issues

4.4.1 Licensing

The State Telecommunications Committee carries out licensing of the telecommunication operators. According Art.8 Law on Telecommunications, the Council of Ministers shall approve the granting of licenses for establishment of Telecommunications networks and provision of Telecommunications services, using radio frequency spectrum.

The regime - individual or general licenses - is specified in the Law on Telecommunications.

The National Council on Radio and Television carries out licensing of the radio and television operators. NCRT makes decision and provides to the State Telecommunications Committee drafts of the individual licenses.

4.4.2 Universal Service

The issue of defining the scope of and parameters of the universal service in Bulgaria is under elaboration. The Telecommunications Sector Policy defines the main principles consistent with EU documents. The universal service in Bulgaria will comprise the following minimum package of services:

• basic telephone service ( local, long-distance and international) provided through the fixed Telecommunications network;
• free use of the national emergency services;
• access to operator for long-distance and international telephone services;
• inquiries on phone numbers of fixed telephone network subscribers, telephone directories inclusive;
• access to the basic telephone service through public coin-operated or card-operated telephones, including free access to the national emergency services;
• services under special conditions for users with specific social needs and for disabled subscribers;
• users access to published information as regards the prices of services, the quality of services etc.

For the present, the obligation to provide universal service is imposed on the main telecom operator Bulgarian Telecommunications Company. The geographic coverage of the basic telephone service for the country is good in comparison with some European countries - 80.75% of the households have telephones, the density of public telephones is 1.49 per 1000 inhabitants.

4.4.3 Quality of Service

The following objectives are pursued according to the Telecommunications Sector Policy:

• reduction of the number of faults per line;
• increased number of successful calls in the country;
• ensuring capacity for installation of new lines.

The enforcement of the mechanism for control of the quality of the ordinary telephone services, recommended in Directive 98/10/EC is mandatory.

4.4.4 Interconnection of Networks

The interconnection of networks is a requirement of the Framework Directive of the EU for securing the openness and effective access to the existing and newly constructed networks both by the providers and by the users. The interconnection is realised on a contractual basis between the operators. In case no agreement is reached, the national regulator is obliged to settle the dispute.

5. Freedom and protection

5.1 Access to information networks

Access for all is among the main goals of the now elaborated National Strategy for IS Development in Bulgaria. From the point of view of universal access, the main priorities in the development and modernisation of the national Telecommunications infrastructure should be the development and improvement of the quality of the traditional services. Other priorities are also the integration of the networks for data transmission with the global networks, mass transition to integrated services of digital networks (ISDN). The National Strategy for IS Development prioritise also the new distributive, interactive and multimedia services based on new high-speed or alternative transmission media to the subscribers. For example, are in these cases, cable television and gradual transition to ATM networks on the basis of optical transmission systems from synchronous digital hierarchy using satellite Telecommunications (VSAT systems, low and medium orbit satellites, mastering the position on a geo-stationary orbit which Bulgaria possesses for building national multifunctional satellite system).

5.2 Copyright and intellectual property rights

According to the comparative-legal expert analyses, the Bulgarian legislation in this field (see Paragraph 4.3.) is very advanced in a European context. The effectiveness of combating piracy is rising.

5.3 Privacy, data protection, consumer protection

There are provisions in the Constitution, Law on Telecommunication and Law on Radio and Television guaranteeing personal privacy, the freedom and confidentiality of Telecommunications. A Consumer Protection Law was adopted recently (see Paragraph 4.3.).

The Data Protection Law in accordance with EC Data Protection Directive is on agenda as a necessary regulatory basis for:

a) Guaranteeing the inviolability of private life, the rights and obligations from the point of view of information, via:

• specifying the public portion of information;
• laying down the ways to collect, manage and use of personal data;
• control on the part of the individual of the trustworthiness of information relating to him.

b) Setting up of a supervisory authority entrusted with exercising strict protection of the rights of citizens in accordance with sections 32 and 41 of the Constitution and the international arrangements to which the Republic of Bulgaria has acceded.

c) Free movement of data in a developed Information Society ensured through:

• Research for the encoding of information and protection of databases;
• Implementation of additional instruments in application of the Law on the Protection of Personal Information in the case of distance transmission.

5.4 Freedom of expression and information

On the basis of Art.39, 40 and 41 of the Constitution, Access to Information Law is submitted to the Parliament.

6. Information Society Policies

The National strategy for IS development, submitted to the Council of Ministers for adoption, specifies the main aims, priorities and actions for building IS in our country combining the national interests with the IS conception worked out by the European Union. This strategy is developed in accordance with the Programme of the Bulgarian Government "Bulgaria 2001" and its execution encompasses the period until 2006. In accordance with the National strategy a program is under way under the following conditions specific for our country:

• consolidation of the democratic system;
• European and Euro- Atlantic integration;
• development of market economy;
• currency board.

Main national priorities in building of IS in Bulgaria will be:

• building of a national universally available information and communication infrastructure;
• introduction of modern ICT in the management, economy, education, culture, health care, national security system, ecology;
• development of ICT industry as a leading branch;
• approximation of the IS legislation to the respective EU legislation;
• creation of high qualification specialists for IS;
• preparation of the society for adequate realisation in IS.

On a national level the IS activities are co-ordinated, organised and controlled by the Co-ordination Council on IS problems to the Council of Ministers. The information policy is accomplished through reciprocal actions of different institutions and through interaction with the European Union, Central and Eastern European countries, etc. The National strategy for IS development is an act upon which information strategies are developed outlining the aims, priorities and actions for the particular sectors.

Despite the leading role of the state in the IS establishment so far, it should not dominate entirely over the other participants.

The strategy treats the main national priorities in the following areas:

• open management;
• technological basis of IS;
• new economy;
• investment in the future;
• man above all;
• standardisation and IS;
• IS law;
• Incorporation of people to the IS principles.