October 1999

FYR Macedonia Master Report

I. General background

1. General telecommunications policy

According to the Macedonian Telecommunications Act (Official Gazette of RM 33/96) and amended Telecommunications Act (Official Gazette of RM 17/98), the Macedonian Telecommunications shall have the exclusive right, until 31 December 2005, to provide fixed voice telephony services, telegraphy services, telex services, public pay phone services, and leased line services, and to construct, own and operate fixed public telecommunication networks.

Concessions shall be issued by the Minister of Transport and Communications, on the proposal of the Directorate, and shall be public documents. Concessions may be issued to domestic and foreign legal and natural persons. The Directorate may establish different classes of concessions for different types of telecommunications activities.

The Minister of Transport and Communications shall not issue any licenses or concessions that infringe the exclusive rights granted to the Macedonian Telecommunications.

2. Institutional structures in charge of the regulatory issues

2.1 Governmental bodies in charge of the telecommunication issues

2.1.1 The Ministry of Transport and Communications

The Ministry of Transport and Communication:

• implements the policy of the Government of the Republic of Macedonia in the field of telecommunications;
• promotes the development of competition in the field of telecommunications;
• issues the Plan of Frequency Bands Allocation, on the proposal of the Directorate;
• issues the Plan of Frequency Assignment on the proposal of the Directorate;
• prepares and issues the list of universal services;
• co-operates with the administrations of foreign countries, performs international co-ordinating of radio frequencies and, within the limits of its jurisdiction, represents the Republic of Macedonia in international telecommunication negotiations and in international telecommunication organisations and conferences in the field of telecommunications.

The Minister of Transport and Communications:

• Determines and assigns concessions in compliance with this Law, on the proposal of the Directorate;
• Determines the amount of the fees according to this Act, on the proposal of the Directorate;
• Issues regulations which regulate the field of the telecommunications more specifically, on the proposal of the Directorate;

2.1.2 Broadcasting Council of Republic of Macedonia

In accordance with the Broadcasting Activity Law, the Broadcasting Council:

• Reviews issues and gives opinions and proposals for the promotion and development of broadcasting activity (Article 22 of the Law);
• Prepares proposals for the competition and draft decisions for the awarding and revocation of concessions concerning the performance of broadcasting activity (Articles 14 and 22 of the Law);
• Prepares proposals for the allocation of funds from the broadcasting tax intended for the public and commercial broadcasting companies and independent producers performing their activity at local level (Article 78 of the Law);
• Monitors the implementation of concession contracts (Articles 22 and 83 of the Law);
• Approves the re-broadcasting of foreign programs by broadcasting organisations (Article 43 of the Law);
• Ensures the implementation of the provisions of the Broadcasting Activity Law with regard to program production and broadcasting (Article 83 of the Law);
• Proposes measures to the responsible supervising bodies to be undertaken against broadcasting organisations performing activities contrary to the law and the concession contract (Article 84, Paragraph 1, of the Law).

2.2 National regulatory authorities

Is to be established (see On-Going Changes in the Institutional Structures below).

2.3 Telecommunications operators

Makedonski Telekomunikacii A.D. (MT) is the national telecommunications operator in the Republic of Macedonia. MT provides basic telecommunications services in the Republic of Macedonia, including all local, long distance and international traffic, leased lines, cellular mobile services, and value added services including data communications and Internet access.

Year 1999 is the most significant milestone for the development of Makedonski Telekomunikacii and for the whole Macedonian telecommunications sector. The privatisation process is well under way. During 1999 a strategic partner is to be selected.

Macedonian Telecommunications are prepared to respond to the rapidly changing international environment in which they operate, such as the reform of the accounting rate system, and the spectacular rise of Internet. They must be prepared to completely re-engineer their business model, probably re-inventing themselves around the Internet model, and introducing e-commerce solutions. They are fully aware of the enormous responsibility placed on their shoulders to carry out all this processes to a successful conclusion, but at the same they are targeted toward full integration of Macedonian telecommunications into the global telecom environment.

One of their biggest challenges in the period ahead will be to transform the company from technology centred to a market and customer oriented organisation. They intend to make customers' interest and satisfaction their top priority and will integrate that into their company mission. The management is fully aware that they also must sustain profitability to the satisfaction of our investors, and at the same time maintain excellent employee relations. They consider their employees and the knowledge and skills they possess their most important asset in the rapidly emerging Information Age.

3. Regulatory framework

Historical overview

Until the end of 1996, the Public Enterprise for PTT traffic "Makedonija" was functioning as a unique state-owned company providing services in the public national and international post and telecommunication traffic. With the beginning of 1997, PTT "Makedonija" entered a period of profound and far-reaching changes. A transformation process of the organisation has commenced, in order to establish two independent entities, each of which should by its own develop itself and adapt to the new market conditions and economy. With a decree, adopted by the Government two new states owned companies are founded. Macedonian posts and Macedonian telecommunications.

The legal constitution of Public enterprise "Makedonski telekomunikacii" (MT) is completed and since 12.08.1997 MT functions as a separate legal entity.

Triggered by the growing pace of technology development, as well as customer requests and market demands, the Macedonian telecommunications system is being constructed according to international standards and enables successful incorporation of Republic of Macedonia within European and world integration processes.

After that MT operates in new regulatory environment. The new Telecommunications Act and other regulations define existing of public telecommunications operator with certain rights and duties for provision of basic services, while simultaneously defining the conditions for involvement of new operators for all the other value-added services.

Until 31 December 2005, no legal or natural person, except the Macedonian Telecommunications, may:

• Provide, organise, advertise, promote or in any other way take part in organising call-back services; and
• Provide fixed voice telephony services, telegraphy services, telex services, public pay phone services or leased line services and to construct, own and operate fixed public telecommunication networks.

4 Freedom and Protection

4.1 Intellectual Property Rights

Industrial Property Protection Office is established on December 1, 1993 with appointing the Director. The office is an organ within the Ministry of Development having a capacity of legal entity. The Office has two departments:

• Department for Patents and Appellations of Origin;
• Department for Marks, Models and Design

The main duties of the Office are protection of industrial property and giving services to the interested parties.

Republic of Macedonia is a party of the following conventions and treaties:

• The convention establishing the World Intellectual Property Organisation;
• The Paris Convention for the protection of industrial property;
• The Madrid Agreement concerning the international registration of marks;
• The Nice Agreement concerning the International Classification of Goods and Services for the purposes of the registration of marks;
• The Locarno Agreement establishing an International Classification for Industrial Designs;
• Patent Cooperation Treaty (PCT);
• Hague Agreement concerning the international deposit of industrial designs, and
• The Bern Convention for the protection of literary and artistic works.

4.2 Privacy, Data Protection, Consumer Protection

In accordance with the Constitution, adopted international agreements and general principles of international law, the Law on Personal Data Protection was adopted. The Law along with the subsidiary legislation regulates the collection, processing, end-use as well as the supervision and protection of the confidentiality of personal data.

5. Information Society Policies

The Macedonian Information Society Project Office aims to promote co-operation and development in the various areas of the Information Society. ISPO acts as a bridge-builder between Commission Services and external organisations interested in the Information Society. The Ministry of Science established Macedonian ISPO. Main activities are targeted toward raising awareness on the opportunities and impacts of the IS, dissemination of information, collecting information etc.

II. On-Going Developments

According to the Telecommunications Act the Telecommunications Directorate shall be established as a body within the Ministry of Transport and Communications.

The Directorate shall account for the performing of the activities within its authorisation and determined by this Act to the Minister of Transport and Communications and shall perform its activities in accordance with this Act, other Acts of the Republic of Macedonia, regulations adopted by the Ministry of Transport and Communications and other competent authorities, and international agreements concluded or acceded by the Republic of Macedonia.

The annual resources for the activities of the Directorate shall be approved by the Minister of Transport and Communications, which resources must be sufficient to carry out the activities of the Directorate, within the frameworks of its authorisations, in a satisfactory manner.

The Directorate:

• shall ensure that users have access to public telecommunication networks and public telecommunications services on a non-discriminatory basis;
• shall ensure that all of the information about consumers which should not be made public is maintained in confidence;
• shall take such measures to ensure the enforcement of the Act, other laws, regulations, concessions, licenses and permits assigned pursuant to the Act;
• consistent with the policies of the Government of the Republic of Macedonia and the Ministry of Transport and Communications, shall develop and implement a long-term plan for introducing competition in the field of telecommunications, which shall balance the competition against the economic, social and other values regulated by the Act;
• shall take such measures and prescribe such safeguards to prevent public telecommunication operators and public telecommunication service providers from engaging in anti-competitive activities;
• shall control the prices and quality of public telecommunication services in accordance with the provisions of the Act;
• shall ensure that no public telecommunication operator or public telecommunication service provider is discriminated against and shall ensure that all operators are provided with interconnection on a non-discriminatory basis;
• shall analyse and regularly report to the Ministry of Transport and Communications regarding the development of the telecommunications sector in the Republic of Macedonia and abroad;
• shall give proposals to the Minister of Transport and Communications regarding the issuing of concessions;
• shall give proposals to the Minister of Transport and Communications regarding the amount of the fees prescribed in accordance with the Act;
• shall issue licenses for telecommunication activities prescribed by the Act;
• shall announce and hold tenders for licences and concessions;
• shall supervise compliance with the terms and conditions of licenses and concessions;
• shall approve the utilisation of radio stations and terminal equipment used in the Republic of Macedonia and shall issue certificates of approval;
• shall establish standards for the interconnection of telecommunication networks, where public telecommunication operators are unable to agree;
• shall approve the standard contract between public telecommunication operators, public telecommunication service providers and users;
• shall manage, regulate and assign radio frequencies, prepare radio communication plans, designate frequencies for transmission and reception, inspect and monitor radio communication networks, and ensure that radio stations and devices of a type that has not been approved are not used;
• shall act as the first instance in the settlement of disputes arising between public telecommunication operators, telecommunication service providers and users, in compliance with the Act;
• shall check the tariffs equipment used to measure the duration of the services;

The Director shall have the power to demand that public telecommunication operators and public telecommunication service providers supply the necessary information, including financial information, the Directorate deems necessary to perform its authorisation under the Act, undertaking not to disclose confidential information.