January 2001

FYR Macedonia Master Report

This Master Report covers the whole period of the ESIS project surveying the Countries of Central and Eastern Europe, March 1999 - January 2001 inclusive. 

2.1.Historical overview and general legislation

Until the end of 1996, the Public Enterprise PTT "Makedonija", was functioning as a unique state-owned company providing services in the public national and international post and telecommunications sectors. In the beginning of 1997, PTT "Makedonija" entered into 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 ways develop and adapt to the new market conditions and economy. With a decree, adopted by the Government, two new state-owned companies are founded: Macedonian Posts (http://www.mp.com.mk) and Macedonian Telecommunications (http://www.mt.com.mk/index.html).

The legal constitution of the public enterprise Makedonski Telekomunikacii (MT) was completed in 12.08.1997 defining the MT functions as a separate legal entity.

Triggered by the growing pace of technology development, as well as customer requests and market demands, the MT business system is being implemented according to international standards enabling a successful Republic of Macedonia within European and world integration processes.

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

After a yearlong privatisation procedure, a consortium led by the Hungarian operator MATAV has purchased the majority stake of Makedonski Telekomuniakcii AD (for details refer to Chapter 5.Market: Privatisation, foreign investment, mergers, acquisitions, call for tenders).

The recently signed Association and Stabilisation Agreement (Nov.2000), between the Republic of Macedonia and EU, has shortened the period for the exclusivity right of the historical operator, from Dec. 31. 2005 to Dec.31. 2004.

According to the original Macedonian Telecommunications Act (http://www.srd.org.mk/bc/codes.htm - Official Gazette of RM 33/96) and amended Telecommunications Act (Official Gazette of RM 17/98), the Makedonski Telekomunikacii AD, (Macedonian Telecommunications) shall have the exclusive right, until 31 December 2005, to provide fixed voice telephony services. The exclusive right includes also the provision of telegraphy services, telex services, public pay phone services, leased lines services and to construct own and operate fixed public telecommunications networks.

A concession is required to construct, own or operate a public telecommunications’ network and to provide public telecommunications’ services. The Ministry of Transport and Communications shall issue concessions, on the proposal of the Telecommunications Administration (a body within the Ministry). Concessions shall be public documents, and may be issued to domestic and foreign legal and natural persons. The Administration 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.

Until 31 December 2004, no legal or natural persons, except the MT, may have the following duties:

Provide, organise, advertise, promote or in any other way take part in organising call-back services ;

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 telecommunications networks.

2.2 Umbrella Policies and National IS Strategy

In order to promote co-operation and development in the various areas of the Information Society, the Ministry of Science established the Macedonian Information Society Project Office (http://www.ispo.gov.mk/html/about_ispo.html). Macedonian ISPO acts as a bridge-builder between Commission Services and external organisations interested in the Information Society. The main activities are targeted towards raising awareness on the opportunities and impacts of IS, dissemination of information, collecting information, etc.

After prolonged preparations for the establishment of the highest national IS authority - National Information Society Council, the issue seems to have received the highest political attention. The Macedonian president, Mr. Boris Trajkovski, on the opening of the Second CEENet/NATO Workshop on Network Management, has expressed his own commitment to assist in that matter, emphasising the importance of completing the work on the National IS strategy. For more details, refer to the corresponding entry in ESIS - II database: Promotional Activities, "Macedonian president, Mr. Boris Trajkovski on the importance of National IS Strategy"

Along with the mentioned commitments, the first step to consolidate enough expertise for umbrella policies like IS strategy and/or the National Action Plan, was the establishment of a Presidential Committee e-Macedonia for All, as a part of the same initiative. The Committee gathers competent experts on executive positions from the research, telecom operator, state administration, and banking sectors, thus securing permanently high priority of the activities the Committee will be undertaking.

The initiative "e-Macedonia for all" is under the direct sponsorship of the cabinet of the Macedonian President, Mr. Boris Trajkovski. The major objective of the initiative is to "speed up the activities of transition of the country to Information Society and Networked Economy" (see the corresponding entry in the ESIS-II database - The Initiative "e-Macedonia for All" established Presidential Committee on IS)

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 at providing comparable and up-to-date information from the censuses and vital statistics of the countries from the south-eastern region of Europe. This information would be easily accessible to the 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)

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

The former Ministry of Science has been a national contact point for IS within the administrative sector, as well as being in charge of the implementation of Information Technology within the governmental institutions through:

• delivering direct services;
• definition and implementation of the governmental methodology for development of Information Systems and quality system;
• consulting, budgeting and co-ordinating of development efforts;
• development of the State backbone network for interconnecting the governmental institutions;
• definition of security standards;
• national Information Society actions co-ordination.

2.5 Telecommunications and Internet

The Telecommunications Act regulates the conditions and the rules for activities conducted in the field of telecommunications. This Act regulates the construction, maintenance and the use of the telecommunications’ networks and facilities as well as the relations between providers and users of the telecommunications’ services.

The competition in the field of telecommunications, the provision of Universal Services, the issuing of concessions and performing telecommunications services by concessions, the management, use and control of radio frequency spectrum, the production, import, sale, use and maintenance of radio stations, terminal equipment are also regulated by the Telecommunications Act.

2.5.1 Key legislative measures

2.5.3 Licensing

According to the Telecommunications Act, a concession is required to construct, own or operate a public telecommunications network and to provide public telecommunications’ services. Concessions shall be issued by the Minister of Transport and Communications, on the proposal of the Telecommunications Administration (a body within the Ministry of Transport and Communications), and the documents shall be public. Concessions may be issued to domestic and foreign legal and natural persons. The Administration may establish different classes of concessions for different types of telecommunications’ activities. Issued concessions may be subject of such terms and conditions following what the Administration determines to be necessary to achieve the purposes of the Act.

According to the Telecommunications Act, the Ministry of Transport and Communications brought a Numeration Plan of the Telecommunications Networks in the Republic of Macedonia. The Numbering Plan is in compliance with the E.164 Recommendation of the International Telecommunications Union. It regulates the distribution and usage of numbers, series of numbers, names and addresses of the public telecommunications networks and the public telecommunications services. An extensive activity following the plan implementation is in progress.

2.5.4 Universal Service

The Ministry of Transport and Communications shall adopt, and the Telecommunications Administration shall implement, regulations governing the provision of US and the compensation procedures to be used to pay for such services. The Ministry shall designate, through regulation, the initial group of US services. The public telecommunications’ operator and public telecommunications’ service providers US obligations shall be regulated by the concession agreements.

2.5.5 Quality of Service

Domestic and international telecommunications shall be accessible to every user under non-discriminatory, objective and transparent terms and conditions, except for those limitations associated with the capacity of the service provider.

The user has the right to receive uninterrupted, efficient and regular service, and shall be compensated by the public telecommunications’ operator or public telecommunications’ service provider for any shortcoming in the quality of the public telecommunications’ service that is received by the user. Users have the right to have their requests, complaints or claims associated with the provision of the telecommunications’ service taken under consideration and resolved promptly and efficiently. Users have the right to have the fees for public telecommunications’ services invoiced in a way, which shall be easy to understand.

Users receiving radio and television signals over public telecommunications’ networks intended for the transmission and emission of radio and television signals shall be entitled to receive broadcast reception quality within the optimal technical parameters of the networks.

The Telecommunications Administration shall control the prices and quality of public telecommunications’ services.

2.5.6 Interconnection of Telecommunications’ services

The Telecommunications Administration shall establish interconnection of telecommunications’ network standards, where public telecommunications’ operators are unable to agree.

A public telecommunications’ operator must satisfy requests to interconnect its network with the networks of other public telecommunications operators. Interconnection may not be refused if the request is justified and technically feasible. A refusal to provide network interconnection must be fully justified, and the reason for such refusal must be provided to the operator requesting interconnection.

Public telecommunications’ operators shall determine the terms and conditions of interconnection in an interconnection agreement. The Telecommunications Administration shall establish general conditions for such interconnection agreements. The interconnection agreement shall set out in detail all technical and financial conditions. Where the interconnection agreement is inconsistent with the Telecommunications Act, the regulations issued on the basis of this Act or the general interconnection conditions, the Telecommunications Administration may require the interconnection agreement to be modified.

All interconnection agreements shall be publicly available, except to the extent necessary to prevent the disclosure of proprietary or confidential information.

If a public telecommunications’ operator refuses to provide interconnection, or if two public telecommunications’ operators are unable to reach an agreement on interconnection within three months after the initial request for interconnection, either of them may apply to the Telecommunications Administration to resolve their disagreements.

2.6 Electronic Commerce

By issuing the Draft - Law for Electronic Form and Digital Signature, and putting it into public procedure, Dec. 27.2000, the Government and the Parliament have begun completing the regulatory framework for electronic commerce.

2.7 Education and research

Both universities of Skopje and Bitola have built their information and communications’ infrastructure. Besides the regular education programs numerous IS related R&D projects were also carried out.

The Academic and Research Network of Macedonia (MARNET) was established as a public institution to provide communication and information services to the educational and research community.

The Open Society Institute of Macedonia is a non-governmental institution that financially supports various educational and cultural projects and provides Internet connections in the universities and all levels of education.

2.8 Transport

The common sector policy has not yet been established. The telecommunications’ infrastructure of railways is built or modernised in accordance with their own needs.

2.9 Health care

The Health Centre in Skopje and the State Health Fund have developed their own information and communications’ infrastructure. With the financial support of the World Bank, a program for development and reconstruction of the health sector is to be carried out. Significant part of the program is focused on the IT support for the sector.

2.10 Labour

There have been no developments.

2.11 Competition

There have been no developments.

2.12 Access for all

After the Government resumed the activities for privatisation of Macedonian Telecom, (refer to paragraph 5. Privatisation, foreign investment, mergers, acquisitions, call for tenders), the president of the Macedonian Broadcasting Council (http://www.srd.org.mk/), Mr. Lj.Jakimovski has warned that the Government should carefully reconsider what is going to fall into the privatisation packet. Of particular importance, according to him are the new Terrestrial Satellite Centre and the Antenna Subsystems, which is now a property of the Macedonian Telecom. These facilities have been built completely from the internal budget of this public enterprise, but aside from being used for trunking telephone traffic to the rest of the world they are of critical important for the national radio and television broadcasting. Mr. Jakimovski said that there are no guarantees about how the future strategic investor in Macedonian Telecom will be interested in the broadcasting business, which may have a major impact on many aspects of the still developing national broadcasting and the electronic media in whole.

His final remarks were that, prior to formulation of the final offer for the public properties of the Macedonian Telecom, the Government and the other actors in media business should precisely formulate the regulation for equal-access rights to the media that heavily rely on national resources. Along that line, the Broadcasting Council is ready to suggest to the Government to take the broadcasting system out of the present structure of the "Makedonski Telekomunikacii AD", and to leave it to be managed by a newly established public enterprise "Makedonska radiodifuzia AD" ("Macedonian Radiobroadcasting"). Although this unofficial proposal went to public, the Government has not yet responded officially.

2.13 Copyright, intellectual property rights

The Industrial Property Protection Office (http://www.ippo.gov.mk) was established on December 1^st, 1993 by appointing the Director. The office is an organism 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 the protection of industrial property and giving services to the interested parties.

Concerning this field, the Republic of Macedonia is part of the following conventions and treaties:

• he convention establishing the World Intellectual Property Organisation;
• he Paris Convention for the Protection of Industrial Property;
• he Madrid Agreement concerning the International Registration of Marks;
• he 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 Co-operation Treaty (PCT);
• Hague Agreement concerning the International Deposit of Industrial Designs;
• The Bern Convention for the Protection of Literary and Artistic Works.

2.14 Public access to data

The Telecommunications Administration may restrict the access to telecommunications’ networks or services to protect the security of public telecommunications’ networks, maintaining the telecommunications network integrity, and ensuring the interoperability of telecommunications’ services and data protection, in justified cases only, and in conformity with the applicable Acts and regulations.

2.15 Privacy, data protection, consumer protection

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

2.16 Security

The Law on Electronic Form and Digital Signature, which is expected to enter into force soon, together with the adjacent documents, is expected to regulate the Electronic Document Interchange for both commercial and non-commercial usage.

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

Freedom of expression and information is guaranteed in the Republic of Macedonia Constitution as a fundamental human right and freedom.

2.18 Others

2.18.1 Internet Backbone Network Infrastructure

On the 26th July 2000, Cisco Systems, Inc. announced that they agreed 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 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. This 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.

3.1 Ministries

3.1.1 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 Administration;
• issues the Plan of Frequency Assignment on the proposal of the Administration;
• 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 telecommunications negotiations and within international telecommunications 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 Administration;
• Determines the amount of the fees according to this Act, on the proposal of the Administration;
• Issues regulations, which rule the field of telecommunications more specifically, on the proposal of the Administration.

3.2 National regulatory authorities

The Telecommunications Administration, established as a body within the Ministry of Transport and Communications, succeeds the Directorate.

The Administration shall account for the performance of the activities within its authorisation and determined by this Act to the Ministry of Transport and Communications. The Administration shall perform its activities in accordance also with 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 Minister of Transport and Communications shall approve the annual resources for the activities of the Administration. The resources must be sufficient to carry out the activities of the Administration, within the framework of its authorisations, in a satisfactory manner.

The main Administration functions are:

• ensure that users have access to public telecommunications’ networks and public telecommunications’ services on a non-discriminatory basis;
• ensure that all information about consumers which should not be made public is maintained in confidence;
• 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, 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;
• take such measures and prescribe such safeguards to prevent public telecommunications operators and public telecommunications service providers from engaging in anti-competitive activities;
• control the prices and quality of public telecommunications services in accordance with the provisions of the Act;
• ensure that no public telecommunications operator or public telecommunications service provider is discriminated against and shall ensure that all operators are provided with interconnection on a non-discriminatory basis;
• 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;
• give proposals to the Minister of Transport and Communications regarding the issuing of concessions;
• give proposals to the Minister of Transport and Communications regarding the amount of the fees prescribed in accordance with the Act;
• issue licenses for telecommunications activities prescribed by the Act;
• announce and hold tenders for licences and concessions;
• supervise compliance with the terms and conditions of licenses and concessions;
• approve the utilisation of radio stations and terminal equipment used in the Republic of Macedonia and shall issue certificates of approval;
• establish standards for the interconnection of telecommunications networks, where public telecommunications operators are unable to agree;
• approve the standard contract between public telecommunications operators, public telecommunications service providers and users;
• 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;
• act as the first instance in the settlement of disputes arising between public telecommunications operators, telecommunications service providers and users, in compliance with the Act;
• check the tariffs equipment used to measure the duration of the services;

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

3.3 Office for the protection of economic competition

The Office does not exist. 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.

3.4 Consultative councils

3.4.1 Broadcasting Council of Republic of Macedonia (http://www.srd.org.mk/)

In accordance with the Broadcasting Activity Law (www.srd.org.mk/bc/codes.htm), the Broadcasting Council is an independent body, with the following main functions:

• 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 (www.srd.org.mk/bc/codes.htm) (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).

3.5 Bodies in charge of RTD policy

The Ministry of Education and Science is the Ministry responsible for Information Society issues. The Ministry has been involved in various IS related activities at the international level and played an important role within the CEEC/EU Forum on Information Society. In addition, it is responsible for the implementation of information technology within governmental institutions. The Ministry of Science finances the Academic and Research Network of Macedonia. The Ministry has also financed various research and development (R&D) programs as well as conferences, workshops and seminars and publications related to the Information Society.

3.6 Organisations in charge of the promotion of the IS

In order to promote co-operation and development in the various areas of the Information Society, the Ministry of Science established the Macedonian Information Society Project Office (http://www.ispo.gov.mk/html/about_ispo.html). Macedonian ISPO acts as a bridge-builder between Commission Services and external organisations interested in the Information Society. The main activities are targeted towards raising awareness on the opportunities and impacts of IS, dissemination of information, collecting information, etc.

6.1 Standardisation bodies dealing with IS issues

According the Standardisation Act from 1995 the Bureau of Standardization and Metrology is established as a national standardisation body within the Ministry of Economy. Within the Bureau are the Department for Standardization and the Department for Metrology.

The Bureau is a member of ISO from 1 January 1995 and takes part in activities of the ISO bodies. As such, the Bureau is referral point and competent distribution of ISO (International Organisation for Standardisation) documentation in the country.

For development of standards 17 committees for deferent areas are established. The members of the committees are distinguished experts from companies, educational and governmental institutions.

For information technology is responsible the Committee for Developing Standards for Data Entry Units and Character Sets, Data Coding and Data Ciphering.

6.2 Relevant standards

According the Standardisation Act the basis for developing Macedonian standards are international standards and national standards of other countries.

In 1999 the standard for Macedonian data entry keyboards was brought under name "Data processing - Keyboards for data entry - Combined keyboard with 48 printing keys for Macedonian Cyrillic Alphabet and for transliteration of Macedonian Cyrillic Alphabet with international character set" and standard code MKS I.K1.015.