November 2000

FYR Macedonia 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 Parliament of Macedonia has adopted a new Government's composition. The potential strategic investors in the Macedonian Telecommunications are finishing their thorough evaluation of the operation. Macedonian Telecommunications opts for a new-world telecom infrastructure ahead of regional counterparts. A conference on Cupertino between the national statistical offices in the Balkans was held covering the forthcoming censuses of the year 2001.

2. Information Society Policy

2.1 Historical overview and general legislation

The new Ministry of Education has incorporated the responsibilities of the former Ministry of Science including its co-ordination of the efforts toward Information Society.

2.2 Umbrella Policies and national IS strategy

There have been no developments.

2.3 IS Application Areas

An international conference on the forthcoming censuses in the Balkan countries in the year 2001 was held from the 27^th – 29^th July in Ohrid, Macedonia. Conclusions, recommendations and tasks on the intensification of co-operation between the national statistical offices were agreed. The State Statistical Office of the Republic of Macedonia presented a proposal for a project aimed to provide comparable and up-to-date information from the censuses and the vital statistics of the countries from the south-eastern region of Europe. This information would be easily accessed by all the participants in the Stability Pact for South Eastern Europe, thus supporting the democratisation processes and the economic co-operation in the region.

2.4 Government and administration (national, regional, local)

Earlier liberalisation of the telecommunication sector is an issue in the negotiations on stabilisation and association between the Government of the Republic of Macedonia and the European Commission.

2.5 Telecommunications and Internet

Important partnerships were established between private and public sector on these fields, which will contribute for future regulation developments. On 26th July 2000 Cisco Systems, Inc. announced that they agree to provide US$2.6 million's worth of state-of-the-art Internet protocol (IP) equipment to Makedonski Telekomunikacii, Macedonian's State telecommunications company. This enables the company to deploy a highly reliable and scalable network that offers a breadth of IP services to its customers. It will make Makedonski Telekomunikacii the first telecommunications operator in South Eastern Europe to adopt the IP backbone solution widely used by its new world counterparts. The telecom has also signed up to provide training under the acclaimed Cisco Networking Academies Programme.

Daniel Doncev, C.E.O. of Makedonski Telekomunikacii, said that the agreement with Cisco Systems marks a very significant milestone for Makedonski Telekomunikacii. They see this as a beginning of wider co-operation with Cisco Systems. Their experts will co-operate with Cisco in developing the migration strategy from today's circuit switched network to the new network of the future, based on packet switching and IP, the so called "end to end IP", and in defining and implementing the services which will support the new networked economy.

Makedonski Telekomunikacii has been a leader in the region with early deployment of fibber optic transmission systems and SDH technology. This strategic decision will further strengthen its leadership and set it firmly on the course of becoming the most innovative, forward-looking telecom in the region.

The technology will allow Makedonski Telekomunikacii to offer IP virtual private network services such as Intranets and Extranets, MPLS IP VPNs, basic dial-up Internet access, ISDN or dedicated Internet access services, value-added Internet access services such as premium or managed customer premises equipment and carrier-to-carrier services, such as wholesale dial.

2.6 Electronic Commerce

There have been no developments.

2.7 Education and research

An information technology education centre has been opened in the city of Kriva Palanka on July 28^th.The UNDP development programme financed the establishing of the centre.

2.8 Transport

There have been no relevant developments.

2.9 Health care

There have been no relevant developments.

2.10 Labour

There have been no relevant developments.

2.11 Competition

There have been no relevant developments.

2.12 Access for all

There have been no relevant developments.

2.13 Copyright, intellectual property rights

There have been no relevant developments.

2.14 Public access to data

There have been no relevant developments.

2.15 Privacy, data protection, consumer protection

There have been no relevant developments.

2.16 Security

There have been no relevant developments.

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

There have been no relevant developments.

3. Institutions and organisations in charge of IS regulation

3.1 Ministries

The Parliament of the Republic of Macedonia adopted a suggestion by Prime Minister Georgievski for a new government's composition on 28^th July 2000. Instead of 21, the new Cabinet of Prime Minister Georgievski will now be comprised of 14 ministries. The new Ministry of Traffic and Communications, through the minister Ljupco Balkoski integrates the responsibilities of the former Ministry of Communications and the Ministry of Urbanism. The new Ministry of Education has incorporated also the responsibilities of the former Ministry of Science including its responsibility for the co-ordination of the efforts toward Information Society.

3.2 National regulatory authorities

Concerning the Information Society, the new Ministry of Education has incorporated also the responsibilities of the former Ministry of Science including its responsibility for the co-ordination of the efforts toward Information Society.

3.3 Office for the protection of economic competition

There have been no relevant developments.

3.4 Consultative councils

There have been no relevant developments.

3.5 Bodies in charge of RTD policy

A new Ministry of Education was established.

3.6 Organisations in charge of the promotion of the IS

There have been no relevant developments.

4. International relationships and agreements

The Republic of Macedonia was accepted as a Member State in the Eutelsat organisation on June 13^th, 2000. Mr. Mile Veljanov, Assistant of the Minister of Traffic and Communications is the Board Member.

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

Six companies that are potential strategic investors in the Macedonian Telecommunications, have visited this corporation. After the presentation, it’s expected that they offer to buy the dominant share of 51%. The companies have expressed their satisfaction and have stressed that the privatisation process is carried out transparently and without problems.

6. Standards

6.1 Standardisation bodies dealing with IS issues

There have been no relevant developments.

6.2 Relevant standards

The partnership established recently between private and public sector in the infrastructures telecommunications and Internet fields, will contribute to the analysis for the official adoption of de facto standards by the national authorities.