July 2000

Bulgaria Update Memo

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

1. Introduction and Summary

The Information Society (IS) continues to emerge as a major transnational development in recent times. It is a result of the profound changes in all types of activities caused by the introduction of the new Information and Communication Technologies (ICT) in Bulgaria.

The Bulgarian Government continues to pay special attention to the development of the Information Society adopting two framework documents - Strategy and National Program for IS development, which are reflected in the section on IS of NPAA.

A number of sector strategies and programmes have been also adopted - Telecommunications sector policy, National Strategy for ICT education, Program on application of advanced information and management technologies in the administration, National strategy for promotion of small and medium enterprises (SMEs), Strategy for development of High-Technology activities in Bulgaria, etc. A draft National Programme on Electronic Commerce has also been prepared.

The state institutions have a leading role in preparing policies for stimulating the essential activities, creating the legal framework of the IS, participation in inter-governmental agreements aimed at development of a common legal framework in the information area and related to the fight against international crime.

Conditions are also created for non-governmental organisations and institutions to be involved in the process of transition to IS and their involvement in public discussions on normative acts, assistance in educational projects, awareness campaigns, etc.

2. Information Society Policy

The Strategy defines the national priorities for transition to IS at legislative, technological, economical and social levels and outlines the basic related activities. The document combines the IS concept of the European Union with the national interests and the specific circumstances of our country - consolidation of the democratic system, European and Euro-Atlantic integration, development of a market economy, currency board.

The basic goals that should be achieved in the process of transition to IS in Bulgaria are:

• preparation and adoption of a complete legal framework, rules and procedures, harmonised with those of the European Union, for provision of services, for living and working in the Information Society;
• ensuring for all citizens equal access to modern, efficient and high-quality telecommunications and information services, as well as equal opportunities for acquiring skills for their use;
• creation of a new living and working environment through wide use of new ICT in the public, political, economic and cultural sphere.

The Strategy considers the necessity to find an adequate national expression of the core principles of the policy for IS development - promoting competition, encouraging private investments, defining an adaptable regulatory framework, providing open access to networks, ensuring universal information services, promoting equal rights of access to information resources, diversity of content, including preservation of cultural and linguistic diversity, recognising the necessity of world-wide co-operation with particular attention to less developed regions.

2.1. Historical overview and general legislation

The draft Law on Access to Public Information, draft amendments of the Law on copyright and neighbouring rights, draft Law on High-Technology Parks and High-Technology Activities, etc., is under discussion in the National Assembly. A draft Law on Electronic document and electronic signature was approved in principle by the Council of Ministers.

The Council of Ministers is preparing a draft Law on the Protection of Personal Information and a draft Law on the protected information.

2.2. Umbrella Policies and national IS strategy

Based on the Strategy, a National Programme for Information Society Development in the country was elaborated. The State bodies are also preparing their own sector strategies and programmes, outlining the goals and intentions for the transition to the Information Society in the respective sectors.

The document "Strategy for Information Society Development in the Republic of Bulgaria" is periodically updated and supplemented in accordance with the developments at international and national level.

2.3. IS Application Areas

In 1999 a Programme was elaborated for development of the National education and research network until 2001. The Programme considers the basic principles, legal requirements for establishment of the Network, project for its structure, plan on the realisation of the Network in three stages (1999-2001) and financial resources evaluation.

Further development of the Network is foreseen during 2000 to include all university cities, as well as to start the connection of secondary state schools. The goal is to achieve full use of the Network resources in the educational process of higher and secondary schools by the end of 2001. At the same time the telecommunication capacity will be increased gradually.

In some of the larger libraries the readers’ service is partly automated: on-line catalogues, network of work places, the possibilities of Internet, e-mail, multimedia, are available. The Ministry of culture has prepared and realised projects for education of people from the Roma community for work in Internet usually based on existing libraries.

The Euro-Bulgarian Cultural Centre continues to provide information and consultancy services, access to Internet, access to database for cultural organisations and European cultural information. Conditions are also created to make popular the Bulgarian and European audio-visual and scenic art, books, films and cultural heritage.

In the field of e-commerce as a successful activity could be pointed out the start of a system for distance selling in Internet with debit cards using the medium ePay.bg. Overall e-commerce solutions are also developed - virtual shops.

The Bulgarian Chamber of Commerce (BCC) is exceptional representative on the territory of Bulgaria of the European Certifying Organisation Global Sign - Belgium and holds the rights to issue and guarantee the use of digital certificates and signatures. The services provide guaranteed security for users in their work in Internet, in transactions, document exchange, etc. A part of the services of BCC include preparation of whole projects on guarantying the security of Internet access.

A number of application systems have been developed in banks and other financial services, in the field of health care, transport, energy, ecology, etc. New business registers, a Register of statistical units are being built. A Bulgarian town register is in a process of preparation as well.

With the adoption of a new Law on Public Orders, the procedures for public procurement are harmonised with the EU directives. A public register for public orders will be set up which will ensure more transparency of the public procurement process.

2.4. Government and administration (national, regional, local)

A highly reliable high speed network type MAN (Metropolitan Area Network), based on ATM technologies is established for exchange of information between the administration in view of the above mentioned goals and tasks. Institutional LANs and interdepartmental virtual networks are built within the network. At the beginning of 2000 the network includes 90 computer networks of ministries and bodies of the state administration.

The development of the ATM network in the regional centres is foreseen, as well as the establishment of a national ATM backbone. There are prepared projects on establishment of a number of new information systems and registers for the needs of the state administration.

In line with the development of IMT for the administration, attention is paid to the provision of on-line access to governmental information. A Web page of the Government is set up with access to official documents, on-line press release, legislative programme, etc. A discussion forum on Governmental Programme 2001 is provided for contacts of the citizens with the Government. There is also a possibility for dial-up connection to the governmental site.

On-line access to databases and documents in a number of state bodies it is provided. For example, the Registry of terminal equipment with type approval by the STC, statistical information of the National Statistical Institute (NSI). A possibility for feedback connection to the citizens is provided also on the discussion forum of the former Committee of Posts and Telecommunications (now Ministry of Transport and Communications).

2.5. Telecommunications and Internet

At present, the Ministry of Transport and Communications (MTC) fulfils the functions of policy-making and state management.

At present, on the basis of previously granted licenses, the following services and operations are established: mobile services (analogue NMT-450 and digital GSM-900), paging networks (2 national and 5 regional), radio networks for closed users groups, data networks and services (3 national), a number of cable TV networks, private local FM radio and TV stations, pay phones (3 operators) and satellite communications.

A number of centres for access to Internet and information and communication services continue to be established in the country.

Further developments of the Bulgarian legislation are envisaged that will ensure conditions for development of Internet as a medium for work, business and financial transactions, medium for exchange of electronic documents in the field of public administration, commercial agreements and legal acts, medium for training, education and entertainment. The legal framework of Internet will be developed by observing the principle of legal minimalism should create the legal framework of Internet.

In line with the development of Internet as a global information and communication network, the number of customers using the services and the information spread over the network increased. Unofficial data shows that the registered hosts in Bulgaria are over 10 700, and the number of users reaches 120 000. A considerable development is observed in the multimedia and information services with a growing number of Internet portals, access to big on-line databases, Web design services and Internet advertising.

2.6. Electronic Commerce

With respect to the "Information Society services" it is underlined that the principle of free circulation of goods and services should be applied in order to include Bulgaria in the single liberalised European market.

The legal organisation of the electronic signature is foreseen to be developed in accordance with the EU law through acceptance of a limited range of rules about the security of the information exchange and the responsibility of the participants. The organisation should allow identification of the parties in a unique way, the integrity and the authenticity of the messages in the network.

The policy of the Government for the advance of e-commerce in Bulgaria is further elaborated in a draft National Programme on Electronic Commerce, which identifies the main priorities for the development of e-commerce:

• preparation and adoption of a legal and regulatory framework;
• development of technological basis for e-commerce;
• establishment of a system for personnel development and education in the field of e-commerce.

2.7. Education and research

Special attention is paid to research with practical and market realisation. For this purpose the need of new organisational forms is considered for encouragement of high-tech activities, such as technological parks, funds for promoting risk investments and other forms.

The main measures are related to the participation of Bulgaria in EU programs and to bringing closer the national policy in the field of science, research and technological development to those of EU Member States.

2.8. Transport

Transport allows wide introduction of ICT. These policies are reflected in its market, technological, economic and social strategy and call for active measures in the following directions:

The current priorities are:

• maintenance and development of centralised systems of operational control of the basic technological processes in Bulgarian State Railways, Bulgarian Airlines "Balkan", other airline companies, Bulgarian Sea Fleet and Bulgarian River Fleet;
• building integrated mixed transport systems;
• systems for paperless documentation of the transportation activity along the whole chain "manufacturer - vendors - shipping agent - carriers - customs and other administration bodies - banks - customer";
• systems of technological organisation of the relation in the transportation process, based on the logistic concepts on the management of goods movement;
• an information system for wider uses of the transportation potential.

The future priority is the creation of the EDIFACT systems for less document transmission of information. This system will enable vendors, carriers, custom-officers, border guards, financiers, etc. to use and transmit information electronically. This should solve the problem of continuous, often uncoordinated input and output of information from the various offices.

Both kinds of priorities need legal regulation that would facilitate the relations between the heterogeneous participants in the proposed systems. From a technical point of view, the current communication infrastructure in the transport can be used in achieving these objectives after suitable updating.

2.9. Health care

The introduction of ICT in health care still to be an important factor for advances in two important groups of activities in Bulgaria:

Global information activities related to solving problems, national or regional scale: health care administration, research activities, education and re-qualification of the medical staff, monitoring epidemic development and measures for counteraction. To achieve these goals acquisition, processing, storage and distribution of large volumes of medical and other information, statistical, investigations are conducted, information systems are created, efficient communication links are established;

Information activities related to patient care. They use various computerised medical facilities providing accurate and fast-accessible information about every patient.

The priorities stemming from the two groups of activities are:

Establishment of national information health networks. It is advisable to adhere to the following stages during the establishment and operation of the network:

• building a communication infrastructure of the national information health network;
• use of information and data exchange in the field of health care between medical, educational, scientific and administration units;
• access of specialists to the network;
• establishment of health information centres for accessing the network by the citizens.

Introduction of electronic cards in health care is also envisaged. These cards will contain data about the patient’s health status, past medical treatment, medical images, analytical results, etc., and will also use the capacity of multimedia. The cards and the procedures for access to the cards will correspond to the standards adopted in EU.

2.10. Labour

The ICT potential should be also used for the promotion of higher standards for safe and sanitary conditions of labour. For this purpose the following actions are necessary:

• reforming the national system of control on labour conditions by the introduction of new normative acts, ensuring harmonisation of Bulgarian legislation with the directives of EU and with the conventions of ILO for the corresponding sector;
• ensuring that the general regulation for safe and sanitary conditions of labour will be applicable to the non-typical employment forms associated with the information technologies;
• specifying the exact obligations of employers and employees in non-typical employment forms;
• assuming explicit obligations for adherence to the minimum age of starting work in non-typical employment forms.

2.11. Competition

In order to guarantee pluralism, the principles of the public services in radio and television and in other information services should be extended. The right to provide services should be elaborated in the context of the responsibilities for the public services.

2.12. Access for all

As a first stage it is considered to ensure the universal service, defined in the Telecommunications Law as "the ordinary telephone service provided over the fixed telephone network".

At present, an important aspect of the universal service is the public access to the ordinary telephone service through public payphones, coin or card-operated, spread all over the country’s territory, installed in suitable places, offering free access to the national emergency services.

The first step of implementing of a public information policy is foreseen to be the provision of access to basic information services at public places, such as libraries, community centres, schools, clubs, etc.

2.13. Copyright, intellectual property rights

Despite the trend towards a connected world, still no unified market in the area of rights over objects of intellectual property exists in the EU.

2.14. Public access to data

The legislation concerning the public access to information provides for real guarantees for the constitutional right of information of the citizens. Having outlined the range of the secrets provided by law, the principle "everything is allowed that is not explicitly prohibited by law" should be applied consistently.

On the bases of Art. 39, 40 and 41 of the Constitution, draft Law on Access to public information is submitted to the Parliament.

2.15. Privacy, data protection, consumer protection

A Consumer Protection Law was adopted recently.

The Data Protection Law in accordance with EC Data Protection Directive is on the 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.

2.16. Security

Measures are foreseen to guarantee the security of communications in accordance with the global framework in this field, in particular with the directions of the European Commission and the Council of Europe in order to prevent the dissemination of illegal and harmful content over the network and against crime in cyberspace.

An overall concept on problems of crime connected to the development and usage of ICT in the society is prepared in the Ministry of Interior. Measures are defined for the development of a national and interdepartmental normative framework. There are foreseen also activities for the prevention of crime in cyberspace aimed at enhanced training and qualification of employees and use of advanced technical equipment.

2.17. Freedom of expressions and information as far as the distribution via electronic networks is concerned

The legal framework and the law-enforcing practice - Law on Telecommunications and Law on Radio and Television are in place.

2.18. Others

Small and medium enterprises

In relation to the objectives of the National Strategy for promotion of the development of SMEs, measures are foreseen in the Law on Public Orders to ensure and facilitate the participation of SMEs in public procurements. It is stipulated that SMEs can take part in public procurement under the threshold defined by the Law. A Governmental decree on the issue is expected.

3. Institutions and organisations in charge of IS regulations

3.1 Consultative councils

Co-ordination Council for Information Society at the Council of Ministers is established by Decree No 73 of May 3, 2000 for Establishment of a Co-ordination Council for Information Society. The Decree cancelled the following documents: Decree No 40 of the Council of Ministers from 1998 for establishment of a Co-ordination Council on the problems of the Information Society (OG No 22 of 1998), Decree No 233 of the Council of Ministers from 1998 for establishment of a Council on ‘Year 2000’ Computer Problem and for Acceptance of Rules for Its Activity (OG No 123 of 1998), Decision No 279 of the Council of Ministers from 1998 for establishment of a Program Council at the Council of Ministers (non-promulgated).

The Co-ordination Council has the following functions and tasks:

• Develops, periodically updates and submits for adoption by the Council of Ministers a strategy and a program for the Information Society development in the Republic of Bulgaria;
• Co-ordinates and supervises the activities of the state institutions on carrying out the strategy and the program for the Information Society development;
• States positions on drafts of secondary legislation acts related to the Information Society development;
• Co-ordinates the participation in forums related to the Information Society development;
• Harmonises and supervises the activities on introduction of modern information and communication technologies in the state administration;
• Contributes to solving problems related to the interaction and usage of information and communication technologies in conformity with the law;
• Assists the activity of the National Command Centre for Overcoming Crisis and Emergency Situations on the Territory of the Republic of Bulgaria;
• Assists the realisation of projects of national importance for the Information Society development;
• Supports and co-ordinates the activities on dissemination of the Information Society service.

Co-ordination Council bodies are as follows:

Permanent working group on Information Society development strategy. Representatives of state bodies, public organisations, academic society and private business take part in the work group. Dedicated working groups in the Ministry of Economy support the activity of the working groups: Ministry of Culture, Ministry of Education and Science, Ministry of Transport and Communications and the National Institute of Statistics support the activity of the work group.

Permanent working group for information and communication technologies in the state administration and for assisting the activity of the National Command Centre for Overcoming Crisis and Emergency Situations. The Permanent working group co-ordinates and approves the technical projects for: realisation of the long-term program for implementation of effective information and managerial technologies and staff training, building and broadening of the backbone network of the state administration, activities of the National Command Centre for Overcoming Crisis and Emergency Situations. The Permanent work group accomplishes the performance of the specific projects after approval.

3.2 Organisations in charge of the promotion of the IS

As a result of the policy of the Government on integration in the EU initiatives and in the framework of the Third multiannual programme for SMEs (1997-2000) tenders were carried out and the establishment of eight Euro-Info Centres in the country was approved.

The Agency for SMEs is creating a Register for SMEs, as well as for organisations for business support. It started the publication of a quarterly Bulletin of the Agency. A Web page of the Agency was prepared - http://www.asme.bg. The establishment of a regional network for connection the Agency regional offices with the business centres in the country is in preparation in collaboration with BARDA

4. International relationships and agreements

4.1. International co-operation in R&D

The participation of Bulgaria in the Fifth Framework Programme (1998-2003) continues to play a decisive role for building the new model for development of research.

Bulgaria continues to maintain close relationship with over 30 international and European scientific organisation, as well as a participant in European educational programmes: Socrates, Leonardo, Tempus. The participation of Bulgaria in the program "Leonardo da Vinci - 2" and the full membership in the program "Socrates - 2" are in the process of preparation.

4.2 Regional co-operation

Other examples of regional co-operation in the IS field to be pointed out are the Second regional forum on IS development, the First conference on e-commerce in Southeast Europe, etc.

In the field of telecommunications the regional co-operation is carried out on projects for building of telecommunications networks - TET, TEL, TBL, KAFOS, BSFOCS.

Bulgaria participates also in the activities of the BSEC, CEI and CEFTA.

5. Market: Privatisation, foreign investment, mergers, acquisitions, call for tenders

The economic activity in the field of ICT in Bulgaria encompasses trade with computer and telecommunications systems, computer assembly, software development, design of single assemblies and components for machinery, alarm systems, cash registers with fiscal memory, information products on CDs, telecommunications terminal equipment, etc.

In order to stimulate the development of high technologies in the country and the flow of foreign investment in the high tech productions and services, draft Law on High-Technology Parks and High-Technology Activities was prepared and submitted to the National Assembly. It is foreseen that this law will create:

• favourable investment climate;
• preferential labour and insurance legal norms for high tech companies;
• legal framework stimulating the development of high tech activities;
• legal framework for establishment of high tech parks as organisational form for accelerated development of the information industry.

The negotiations for selling a 51 per cent stake in the Bulgarian Telecommunications Company to Greek/Dutch consortium OTE/KPN are still in progress. One of the main disputable points is the request for some changes in the operative telecommunications Law. It was officially stated in June 2000 that the talks are in the final stage and will end either with a deal or with a new tender.