ESIS extension / Lithuania / Regulatory Developments / Update Memo 6

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

During the third quarter of 2000, Lithuania was preparing the election of Lithuanian Seimas (Parliament) on the 8^th October and the forming of a new Government.

The Lithuanian Seimas adopted the Law on Electronic Signature on the 11^th July – the background for E-commerce. On the 17^th July, Seimas also approved amendments to the Law on Legal Protection and Personal Data. This Law became fully harmonised with the Directive 95/46/EC.

The new wording of the Law on Media passed the Seimas but was rejected by the Lithuanian President. In the second vote the Law didn’t receive the needed majority in Seimas.

Other regulatory developments were connected with the restructuring and partial privatisation of Lietuvos Energija (Lithuania Power) and Lietuvos Dujos (Lithuania Gas). Seimas adopted Laws needed for the reorganisation of these companies.

The Lithuanian Government announced five priorities for the year 2001 budget. They are the following:

The Lithuanian Government foresees next year the spending of 7 MEUR (27 MLt) for Information Society development. The draft of the year 2001 budget will be finished in the middle of October.

A temporary-working group of specialists to promote and support development of E-business was established. The group aims to prepare proposals to the Government. The head of this group is Mr Edmundas Zvirblis, vice-minister of Public Administration Reforms and Local Authorities. More information is available at http://www.iid.lt.

The Ministry of Public Administration Reforms and Local Authorities drafted the Program on Information Society in Lithuania during the 1999 Q4 period. The Program announced state policy, IS developments plans, financing and co-ordination. The Program was discussed and approved by various commissions, experts and scientists. It is expected that the actual Government will approve the Program.

The most widespread IS application area is www and Internet based services (banking, shopping, access to information systems, presentation of products and others). The experts foresee 300 000 PC and 2-2,5 times growth of Internet users in year 2000. Information technology experts considered that the main hindrance for fast Internet development is the Lithuania Telekomas’ monopoly on the fixed lines communications.

The Lithuanian Government announced the e-vyriausybe (e-government) project following the European Commission E-Europe initiative.

Prime Minister Mr A.Kubilius issued Act No 164 on the16th August for the establishment of a working group to prepare conception of e-vyriausybe, the easy and fast access to Government Information sources. In September the group will present the plan of realisation concerning Government services accessible via Internet. The head of e-vyriausybe working group is Mr Jonas Milerius, head of Seimas Information Technologies Department. More information is available at http://www.lrs.lt.

Telecommunications and Internet are the fastest growing sectors. Lithuania Telekomas has been trying to occupy the greatest portion of the telecommunications market in the year 2000. In September, Lithuania Telekomas presented to the Government a project to establish the telecommunications network for governmental institutions, including Seimas, President Office, all Ministries and state organisations. Other market actors and IT experts considered this proposal as an attempt to monopolise communications for state and local administrations, as well as to prolong monopoly in this sector for a long time. For state financed organisations, Lithuanian Laws require open competitions and equal possibilities for tender to all operators. Minister of Justice Mr G.Balciunas considered this proposal as an attempt to evade Lithuanian Laws.

In September the Court of Appeal confirmed that the tendering for the third GSM 900 license did not violate Lithuanian Laws. The open competition started during the 2000 Q1 period. The Ministry of Transports and Communications did not allow Omnitel and Bite GSM (already having licenses) to participate in the competition. The companies appealed to the Lithuanian Administrative Court. Investigation and discussions continued for 8 more months.

Currently 5 proposals, received during the Q1 period, are valid and the winner of the GSM 900 license may be announced in the end of 2000. The candidates are:

The statistics of Lithuania’s Internet users is based on the company Baltijos tyrimai/Gullup’s analysis made in middle of the year 2000. 2,7% of the citizens and 33,3% of the businessmen are accessing Internet every day. One time per week, 5,2% of citizens and 52,1% of businessmen are surfing Internet, while 8,1% of the citizens and 58,9% the businessmen are doing it one time per month. There were 1030 people interviewed, aged between 15 and 74 years old, and 350 Lithuanian companies. The total international Internet bandwidth is more than 45 Mbps.

The use and development of E-commerce increases. In July, the Lithuanian Seimas adopted the Law on Electronic Signature. The Law on Electronic Commerce is under preparation. The Lithuanian Government supports the development of E-business. The special working group to prepare proposals to the Government on promotion and support of E-business was established. The head of this group is Mr Edmundas Zvirblis, vice-minister of Public Administration Reforms and Local Authorities. More information is available at http://www.iid.lt. The special portal http://www.infocom.lt for promotion and support of business was established under the support of PHARE and the Infobalt Association.

During 2000, the Lithuanian Government funded investments, in the amount of 2,5 MEUR (more than 6 MLt), for the renovation of computers and other equipment in universities and the modernisation of research equipment in state research institutes.

Other important project, the integration of Lithuania’s Academic and Research Computer Network LITNET in the European Academic Network TEN 155 (LITNET–GEANT), is supported by Lithuanian Government. Under preparation is the Lithuanian Schools Computerisation Project, initiated by the Lithuanian President and supported by the Government and private companies. Lithuania Telekomas announced about 1,6 MEUR (6 MLt) support for this Project in form of discounts and installation of communication lines for schools. The largest mobile communication company Omnitel promised 2,2 MEUR (8 MLt) for this Project.