ESIS extension / Poland / Regulatory Developments / Master Report

Following fundamental political and economic changes in 1989, the process of privatisation and restructuring according to the rules of the Internal Market of the European Union has continued. This process is stimulated by the preparation and adoption of the National Programme of Preparation for EU Membership. The aim is to be ready for accession to the European Union by 2003.

Article 82 of the European Treaty forms the basis for the adjustment activities in the field of telecommunications required for future EU membership. Particular concern is given to modernisation of the Polish post and telecommunications network and its incorporation into the European and global networks, integration with general European systems and harmonisation of legal and technical regulations as well as co-operation within the European normalisation structures. The objectives of the telecommunications development policy are included in "Telecommunications Development Policy", approved by the decision of the Council of Ministers in 1996; "Strategies of Telecommunications Development in Poland until the Year 2000", approved by the Government at the turn of 1993; "Directions of Structural Changes in the Polish Telecommunications", and "Guidelines to the Telecommunications Development Policy in Rural Areas until the Year 2000", approved in 1995. A new government, which came into power in autumn 1997, introduced a more liberal telecommunications policy. The focus was placed on the privatisation of Telekomunikacja Polska S.A. and the restructuring of the Polish Post. Further demonopolization of the telecommunications sector was performed.

The Ministry of Posts and Telecommunications was formed on the following legal basis:

The Ministry of Posts and Telecommunications is responsible for telecommunications policy and regulation. It is the supervising institution of the following public utility units:

The Polish Parliament is in charge of establishing all the fundamental legal acts in Poland. The Parliamentary Commission for Transport and Telecommunications, which is the National Regulatory Authority, is in charge of stimulating the process of fine-tuning new and amended legal acts in the telecommunications sector.

Some regulatory responsibilities, however, have been delegated to the National Postal and Telecommunications Inspectorate – PITIP. This agency's responsibilities include:

The PITIP has no powers for monitoring or supervising the activities of the public operator TPSA, which is not licensed but operates directly under the law.

In April 1997, responsibilities for the ownership of TPSA were transferred to the Ministry of Treasury.

The statutory competencies of the National Broadcasting Council include the right to issue regulations and other implementing legal instruments governing those matters that require more detailed regulation.

National Radio-communications Agency (PAR) was established under the Posts and Telecommunications Law on 23 November 1990. PAR’s responsibilities include:

The Competition and Consumer Protection Office is established by the Anti-Monopoly Law as the authority for regulating competition in Poland. The Office is part of the central government secretariat (i.e. not in a Ministry), and the Prime Minister nominates its President. The President attends the Council of Ministers, but in an advisory role only. The Office arbitrates only in inter-company disputes, such as a complaint by a telecommunications company an TPSA abusing its dominant market position. The Office is also consulted when a Ministry prepares a decision. When the Minister of Posts and Telecommunications arbitrates in an interconnection dispute, consultation with the Competition and Consumer Protection Office is mandatory.

Competition cases can at any time be taken to the Anti-Monopoly Court, which is a division of the Warsaw District Commercial Court but nonetheless has responsibility over the entire country. Only the National Supreme Court can overrule decisions made by this court. Appeals against Ministerial decisions are outside the jurisdiction of the Anti-Monopoly Court and must be made to the National Administrative Court (NSA).

Article 22 of the 1990 Law on Posts and Telecommunications created the Council on Frequency Use, This council advises the Ministry of Posts and Telecommunications on policy regarding management of the frequency spectrum. It consists of representatives of the Ministries of Defence, Interior and Foreign Affairs and of the National Council for Radio and Television Broadcasting.

The Institute of Telecommunications acts as a certified test house for equipment testing and certification of conformity. This independent body receives its power under a delegation by the Ministry of Posts and Telecommunications.

At the end of 1991 the telecommunications branch of the Polish PTT was transformed into Telekomunikacja Polska - Spolka Akcyjna, TPSA. It is a fully state-owned company, whose owner has been the Ministry of Treasury since April 1997. The legal foundations of the company are the Law on Telecommunications and the Law on Commercialisation and Privatisation of State Owned Enterprise.

On 8 September 1997 the Economic Committee of Council of Ministers (KERM) accepted the privatisation schedule of TPSA, initiating the first phase of the privatisation effort. The Ministry of Treasury, which has responsibilities over the privatisation process, then announced its plan to sell an initial block of around 20% of TPSA on the domestic and foreign stock markets in 1998. It also announced that a further 15% of TPSA’s shares would be allocated to the firm's employees. By the end of 1997, a process of structural and organisational changes in TPSA has already begun. In February 1998, a privatisation consultant was selected. On 3 March 1998, an agreement between the Ministry of Treasury and the consultant company was signed. This date marked the beginning of the privatisation of TPSA. On 30 June 1998, a prospectus of the company was deposited to the Securities Commission.

The next phase of the privatisation process occurred in August 1999, when 25-35% of TPSA shares was offered. The deadline for proposals was August 23,1999. Some large European and American telecom operators were interested in strategic investment in TPSA. After a call for tender, there were two potential foreign strategic investors on the short-list: France Telecom and SBC. In early November 1999, SBC withdrew from consideration, leaving France Telecom as the only potential strategic investor. In late December, France Telecom’s offer was rejected, and a new tender was called in early January 2000. Two foreign telecom operators, France Telecom and Telecom Italia, are currently on the shortlist and are undergoing due diligence investigation. It is expected that a new strategic investor will be announced by the first half of 2000. By 2001 the strategic investor will be able to increase its shares in TPSA to over 50%.

At present, TPSA is not licensed, but operates directly under the Law on Posts and Telecommunications. Its activities are therefore subject to control by the Ministry of Posts and Telecommunications. TPSA’s monopoly on local telephony ended in January 1991. Yet, it still has until 2003 a monopoly on international connections, including international satellite-based telegraphy and telephony. TPSA has a 63.25% share of Centertel, the analogue mobile operator with about 250,000 subscribers.

About 70 licences for local telephone companies have been issued, and 30 companies are now trading. The biggest operators groups are: Netia, Poland Telecom Operators PTO, Elektrim Group, Telefonia Lokalna, Szeptel, Tyczyn, Petrotel, Telefony Opalenickie, Telefonia Polska- Zachod, and Pilicka Telefonia.

Netia Holding SA is a holding company owned by Telia (33,24%), American enterprises and investment banks (43,19%), Israeli shareholders (15,99%) and Polish shareholders (7,58%). Netia Holding controls the Netia Group, which consists of: Netia Telecom and Netia South. Netia Telecom offers fixed network services and is a major shareholder of 10 local operators, while Netia South (75% Netia Holding, 25% Telia) offers fixed network services and is a major shareholder of 2 local operators. The licenses of the Netia Group cover 23% of Poland with 33% population.

Poland Telecom Operators consists of: Telefony Brzeskie, Telekomunikacja Debicka, Polska Telefonika Wiejska, Telecommunications Enterprise RETEL, Midwest–Srodkowo Zachodnie Telefony Polskie and Polska Telefonika Prywatna companies. The main investor of PTO is CETI–Central Europe Telecom Investments. Its shareholders are American insurance funds and Credititanstalt Securities (Austria).

Elektrim is the holder of 40% shares of Regionalne Sieci Telefoniczne El-Net and is the owner of Elektrim Tv-Tel Co. Its local operator El-Net paid 245,000,000 Euro for its Warsaw regional licence. The average rate for other regions is from 12,200,000 Euro (Szczecin region) to 82,400,000 euro (Lodz region).

Telefonia Lokalna S.A. is a company with exclusive domestic capital. Its shareholders are: KGHM "Polska Miedz" (49,5%), Polskie Sieci Energetyczne (30%), Tel-Energo (20%), and Cuprum 2000 which is affiliated to KGHM (0,5%). Telefonia Lokalna covers 8 regions.

On 8 October 1999, the Minister of Posts and Telecommunications invited a call for tender for three long- distance public telecommunications services operators of fixed telephone lines providing interconnections through SS7 (ISUP2) signals. The awarded long distance operators are as follows:

The license fee is 23 000 000 Euro. The license will be valid for only 6 months, from 1 July 2000 to 31 December 2000. Nevertheless, the licensee will be able to secure a primary position in the open long-distance market. Because of the law requiring a majority share by domestic companies, there will be no foreign competition until the law expires on 1 January 2003.

The National Numeration Plan is under sector negotiations and will be implemented in the early half of 2000. The new numeration system will identify every long-distance operator, thus giving customers equal opportunities to choose their long distance operators.

Centertel is a consortium comprising of TPSA (66%) and France Télécom (34%). As stated by the president of the TPSA in early March 2000, TPSA will buy shares of Centertel from France Telecom. In April 1998 it had about 250,000 customers and covered 95% of Poland’s territory. Since 1993, Centertel has been operating an NMT-450 network. In September 1997, Centertel was awarded a DCS 1800 licence. On 1 March 1998 the service "Idea" started operation in Warsaw, and in July 1999 it obtained a GSM 900 MHz licence.

Polkomtel is a consortium consisting of TeleDanmark (19.25%), AirTouch Intnl (19.25%), Petrochemia Plock (19.25%), KGHM Polska Miedz SA (19.5%), PSE (11,5%), Stalexport (5,5%), Weglokoks (4%), Tel-Energo (15), Telbank (0,5%), and BIG Bank Gdanski (0,5%). It was awarded a GSM licence in March 1996. In October 1997, it launched its "Plus" GSM service. On 13 September 1999 it obtained a ETSI/GSM 1800 MHz licence.

Polska Telefonia Cyfrowa (PTC) is a consortium comprising of Elektrim (32.9 %), US West (22.5%), DeTe-Mobil (22.5%), BRE (5%), Kulczyk Holding (4,8%), Warta (4,1%), Polpager (4%), Elektrim Autoinvest (2,3%), and Carcom (1,9%). It was awarded a GSM licence in March 1996. Its "Era" service became operational in September 1996, and on 11 August 1999 it obtained a ETSI/GSM 1800 MHz licence.

Although the mobile telephone services increase and turnover still rises, all the mobile operators reported losses at the end of 1998 and 1999, mainly due to the heavy early investment. It is estimated that there will be 7 million mobile telephone subscribers in Poland by the end of 2000. The most popular form of mobile phone service is a pre-paid system provided by all the three mobile operators.

Polpager, operated by TPSA, used to be the only nation-wide paging service. By the decree on Frequency Use (8 October 1997), Polpager service was closed on 31 December 1999. At present METRO-BIP offers paging services to former Polpager subscribers using FLEX Protocol.

3. International relationships and agreements

Poland has been obliged to follow the principles of the EC Treaty since the Europe Agreement came into force on 1 February 1994. The Agreement includes substantial programmes of economic, financial and cultural co-operation, with the European Union targeted at helping the CEE countries in their transition to a market economy. The Agreement also initiated programmes of alignment of national laws with EU legislation and requires the establishment of competition rules based on EU law. The Agreement also promotes the alignment of telecommunications standards and practices with those of the EU. Poland applied for EU membership on April 5, 1994.

In February 1997 Poland signed the World Trade Organisation's Basic Telecommunications Services Agreement. Accordingly, Poland must have competitive regulatory principles in place by 1 January 1998 and open its market to international competition by 1 January 2003. In addition, Article 9 of the Polish constitution states that Poland obeys all international laws which are assigned to it.

4. Regulatory framework

The Polish Law on Posts and Telecommunications of 1990 was amended and consolidated in 1995. These laws and subsequent regulations provide for a progressively liberal regulatory environment yet still protect Polish interests by limiting foreign investment in long-distance and international telephone services.

The Polish government currently plans to replace the existing Law on Posts and Telecommunications, which covers both telecommunications and posts, with two separate laws for each area. Work on restructuring the State-owned enterprise called "Polish Post" has begun in the Ministry of Post and Telecommunications. The Council of Ministers’ decision from 13 May 1997 obliged the Minister of State Treasury to conduct the privatisation of TPSA.

The decree of the Minister of Posts and Telecommunications of 4 September 1997 regulates matters of technical and exploitation requirements for telecommunications equipment, lines, and networks installed and used in the territory of Republic of Poland. The passage of this Act increased the level of approximation of Polish law to the acquis communautaire with regard to the Council Directive 89/336/EEC of 3 May 1989 on the approximation of the laws of the Member States relating to electromagnetic compatibility, and other EU acts.

On 27-28 April 1998 in Brussels with participation of the European Commission the screening in the area of "Telecommunications and information technologies" took place, where the Polish law was compared with the acquis communautaire. Regarding telecommunications legislation work on approximation of Polish to EU legislation, the Minister of Posts and Telecommunications issued the 16 April 1998 decree on the modes and conditions of tendering, in order to select entities that would receive licences for telecommunications services provision together with permission for installation and use of telecommunications equipment and networks (Journal of Law No 53, poz.333). The Regulation articulates tendering procedure with regard to the Council Directive of 28 June 1990 on competition in the markets for telecommunications services (90/388/EEC with later changes).

According to the provisions of Directive (97/36/EC) the National Broadcasting Council issued a regulation concerning the introduction of an obligatory minimum share of European works for both public and private broadcasters (the Regulation of the National Broadcasting Council of 13 November 1997).

On 6 May 1998, the National Broadcasting Council adopted the document called "Standpoint Concerning the Application of Agreements and International Law in Reference to Trans-Frontier Television". This standpoint was a response to doubts of the European Union concerning the interpretation of certain provisions relating to the freedom of receiving certain television programming services, in particular the freedom of retransmission (adaptation of Polish law to Article 2 of the Directive 97/36/EC). The Polish national law is applied, taking into account the contents of international agreements. Therefore the provisions of the international agreements are directly binding and need not be reintroduced as a national law. In accordance with the law application principles, the restraint of reception or retransmission of foreign programme items which are in breach of the Polish law, but which are broadcast from a state which is a party to the respective Convention and complies with its minimum requirements, is not admissible.

Key measures	Objective	Date
Law on Posts and Telecommunications as amended in 1995	Main principles regulating the telecommunications sector	23 Nov. 1990 11 May 1995
Decree on the Conditions of Provision of Public Network Services	General conditions of telecommunications services provision	8 Feb. 1996
Decree on the Quality of Services	Quality of service	9 April 1997
Decree on Interconnection	Regulation of interconnection conditions	26 Oct. 1995

	Liberalisation status	Comments
Infrastructures
Public telecommunications network	Partially liberalised market	Licences from the Min. of Telecom
Local networks for voice telephony	Limited to a duopoly regime between TPSA and one company in each local area	Licences from the Min. of Telecom. Exception: TPSA and other 2 licensed operators in Warsaw region
Leased lines	Partially liberalised market
Alternative infrastructure (Highway, railways, electricity utilities etc)	Partially liberalised market	Tel-Energo - electricity utilities, KOLPAK – railways
Broadcasting and cable TV	Partially liberalised market	Polska Telewizja Kablowa, Aster City
Voice telephony
Local communication	Liberalised market	97 licences, over 90 operators Full liberalisation in 2001
Domestic Long-distance	Partially liberalised market	3 licences delivered in 1999
International communication	TPSA monopoly till 2003	Article 16.1 of the Law on Posts and Telecommunications and TPSA licence
Provision of voice services to closed user groups	Liberalised market
Mobile communication
Analogue	Partially liberalised market	Centertel, licence from the Min. of Telecom
GSM digital	Partially liberalised market	Polkomtel PTC, Idea Centertel – licences from Min. of Telecom.
DCS 1800 digital	Partially liberalised market	Polkomtel PTC, Idea Centertel – licences from Min. of Telecom
Paging	Open with local competition
Satellite communications	Open except for international satellite-based telephony, long-distance voice telephony and telegraphy reserved to TPSA	TPSA V-Net, ATOMNET, IDS
Data transmissions	Fully liberalised market	Licence from Min. of Telecom 5 countrywide operators
Value Added Services	Fully liberalised market	about 50 licences for VAS providers
Internet services provision	Fully liberalised market	about 300 licences, about 150 providers
Equipment provision		Lucent Technologies, ZWUT-Siemens, Alcatel

Alternative infrastructure may be used to provide local voice telephony, data communications, and paging, subject to an individual licence. Cable TV companies are allowed to compete with telecommunications operators for the provision of telecommunications services. The cable TV and data communications markets are open. Value-added services companies have a foreign participation limitation of 40%.

The local voice telephony is provided on duopoly basis, i.e., TPSA and only one other operator for local telephony in each local area. There is no foreign investment limitation for local voice telephony. About 70 licences for local voice telephony have been issued. On June 7, 1999, a local telephony licence for the Warsaw area was granted to Elnet, an operator which plans to connect 340,000 subscribers during the next five years. After that grant, the duopoly in the local voice licences in each region was reached.

However, Polish legislation stipulates that domestic long-distance telecommunications operators must be at least 51% Polish-owned and that a majority of their board of directors must be citizens and residents of Poland. International carriers in Poland must be 100% Polish-owned. The above is to remain in place until January 1, 2003. Until then, TPSA has the monopoly of these services.

The mobile sector is competitive, with 1 NMT 450 licence, 3 GSM licences and 3 DCS-1800 licence granted.

The Ministry of Posts and Telecommunications issues licences for telecommunications networks and services (except for services provided by TPSA). Telecommunications licences cover all of the 49 former voivodships (Polish administrative regions).

The Ministry of Posts and Telecommunications (PITIP) is in charge of monitoring licensed operators' activities, supervising their adherence to licensing conditions, and collecting fees for the use of telecommunications lines, equipment and networks. PITIP does not have the power to monitor or supervise the activities of TPSA, which is not licensed but operates under direct law.

The Ministry of Posts and Telecommunications issued a decree (1 April 1998) on the mode and conditions of tendering in order to select entities which could receive licences for the provision of telecommunications services, together with permission for installation and use of telecommunications equipment and networks.

Parts of the Poland’s population cannot afford the tariffs for telephone installation. However, the expansion of mobile voice telephony (over 4 million clients), relatively affordable rates and unlimited access (now 95% of territory of Poland) is a step towards universal services.

The new Telecommunications Law defines universal services package. It will be implemented with support of a special fund, Fundusz Uslug Powszechnych (Universal Service Fund), which is a directed fund independent from the national budget. The goal of the fund is to increase access to universal telecommunications services in less developed regions of Poland, especially rural areas.

Charges for international calls remained the same during 1999. Charges for local and regional calls within a single province rose about 1% in July 1999, while those for long-distance calls have been reduced. One reason for re-balancing tariffs has been to restore the profitability of local networks. Also, until TPSA’s tariff re-balancing is complete, the competitive market for local telephony is unlikely to attract much investment. Detailed tariffs of TPSA and other operators are published in daily presses and on Internet web sites.

A decree on the quality of services was issued on 4 September 1997. The press announcements included quality parameters achieved by TPSA and requirements for competitive operators.

The Ministry of Posts and Telecommunications specifies interconnection conditions. Rules for interconnection established by Ministry Decisions include a time limit for negotiations (3 months) and an arbitration procedure supervised by the Ministry.

The Polish Act on Copyright and Related Rights is compatible with most of Community law requirements.

The Act of 29 September 1997 on the Protection of Personal Data, largely based on the Council Directive 95/46/EC, came into force on 29 April 1998. From that moment, entities administering over personal data are unconditionally subject to the provisions of the Act. The General Inspector for Personal Data Protection is the primary enforcer in data protection. The time limit of 18 months was implemented for adjusting existing collections of personal data to the new provisions. Collections of personal data are subject to registration under sanction of suspending their processing or the issuing of an order to destroy such collection by 29 October 1999 (except for data collections, which are released from the obligation to register by virtue of the Act). Since July 1997 there have been legislative efforts to introduce corresponding EU directives to the Polish legal system of civil and legal instruments for consumer protection. There are also efforts to implement guidelines and recommendations of the European Committee regarding simplification of procedures of settling consumer claims and development of independent consumer organisations.

According to the law of 29 June 1995 on the official statistics it is not allowed to give the access to the individual statistical data (concerning individual person or economic entity). Such individual statistical data are closed to the public, as statistical confidentiality. To assure statistical confidentiality. all CSO data processing resources with statistical data inside the CSO corporate Intranet are closed by the "Firewall system" to external users. Only CSO Web server and servers with public databases loaded with aggregated data, connected in front of the "Firewall system", are accessible via Internet or via switched telephone lines (BBSs).

5.3 Electronic protection, legal protection and security (encryption, electronic commerce)

Over the past few years there has been an expansion of interest in e-commerce and e-banking, but the level of public interest remains comparatively low.

On 17 May 1999 the Prime Minister appointed the Interministerial Advisors Group for Electronic Commerce. The group, which was chaired by Prof. Wojciech Katner, Under-secretary of State at the Ministry of Economy, is responsible for the preparation of the basic of requirements acts on electronic commerce. The experts were expected to prepare an outline of the necessary regulations for the development of e-commerce in Poland by the end of November 1999. On January 31 the Prime Minister prolonged the Advisors Group activities up to the end of June 2000.

In January 2000 the first version of Digital Signature Act was prepared. According to Polish law system, work on this act was associated with preparation of the New Civil Codex. The project has been elaborated by the interdisciplinary expert team recommended by the Ministry of Justice, Ministry of Internal Affairs and Administration, National Bank of Poland. This project was sent to Interministerial Advisors Group for Electronic Commerce for further elaboration.

Article 5 of the Polish constitution guarantees human rights, which includes freedom of information. In addition, Article 14 ensures freedom of the press and other mass media entities, and Article 6 creates the conditions of equal access to cultural goods. All the international standards of freedom of expression and access to information are implemented and there is no censorship in Poland. The law against pornography in public media is prepared by the Parliament and is under consideration now.

The Ministry of Posts and Telecommunications, in co-operation with the State Committee for Scientific Research (KBN), has prepared a report entitled "Objectives and Directions of Information Society Development in Poland". This report examines the national strategy for implementing the concept of Global Information Society in Poland. The Council of Ministers is expected to adopt the document in the second quarter of 2000.

The Council for Information Technology, created on 20 August 1997, is the consultation and advisory body for the Prime Minister in matters related to information technologies and telecommunications. Its tasks include creating initiative and advising in the field of IT and preparation of legal acts and advisory activities in international co-operation.

A representative of the State Committee for Scientific Research is taking part in the work of the Joint High Level Committee for the Information Society and of the ENGP (European Group for Policy Co-ordination for Academic and Industrial Research Networks). The Polish representatives are invited to the Information Society Forum and the Industrial Round Table.

The State Committee for Scientific Research started a new web page devoted specifically to Information Society issues. The page is currently available in Polish only <http://www.kbn.gov.pl/gsi>.

Following the results of the Third Information Society Forum for EU and CEEC in Brussels in October 1997, the State Committee for Scientific Research (KBN) together with the other ministries and the European Commission started preparations to the Ministerial Conference ‘"Information Society: Accelerating European Integration" to be held on 11-12 May 2000 in Warsaw.

In the accession process to the European Union, umbrella programmes give substantial support. These programmes include the European Union Phare programme, the Action Plan of CEEC/EU Information Society, INCO-Copernicus, 4 EU RTD Framework Programme, and 5 EU RTD Framework Programme.

The Institute of Fundamental Technological Research of the Polish Academy of Sciences was chosen by the State Committee for Scientific Research (KBN) as the National Contact Point (NCP) for the 5th Framework Programme in Poland. 24 regional and thematic contact points (listed at: http://www.kbn.gov.pl/VPR/contact/region.html) have also been appointed.

The Technical Assistance Information Exchange Office (TAIEX) offered its expertise in adjusting the Polish legal system to European Union recommendations.

The Phare programme is partly dedicated to telecommunications infrastructure improvement. Investment in telecommunications network developed by local competitive operators (on a duopoly basis) has been supported by Phare funds. One of the Phare modules (SCI-TECH/Phare programme) managed by the Foundation for Polish Science is devoted mainly to Information Society projects (e.g. CRIT project). SCI-TECH Phare is dedicated to preparation of Polish participation in EU RTD programmes and IS programmes.

Public administration, governmental agencies, national and regional authorities are in the process of democratisation and increasing the openness of their activities. Almost all the ministries and state offices have their own web sites. Administrative services for citizens are provided with aid of modern telecommunications infrastructure and information systems.

Central Statistical Office (CSO) servers with public databases are accessible via Internet or via switched telephone lines (BBSs). In 1999 CSO Web server and servers with public databases, which were accessible under http://www.stat.gov.pl, have been visited by the users in following volume: average 12.500 users having 20.320 sessions per month.

Since 1995 CSO representatives have participated as observers at the meetings of the Western European EDIFACT Board Message Development Group 6 (WE/EB MD6) - Statistics and at the Eurostat Working Group "Statistics, Telematic Networks & Electronic Data Interchange", as well as at EU IDA (Interchange of Data between Administrations) programme events.

On 13 April 1999 the Vice– Prime Minister and the Minister of Internal Affairs and Administration was appointed by the Council of Ministers as the coordinator for the Y2K problem. That fact marked only the political importance of the problem as an inter-ministerial team dealing with the problem was active since August 1998. The minister also chaired the Committee for Critical Situations Management at the Council of Ministers. The Ministry of Internal Affairs and Administration organised several conferences on the Y2K problem and prepared its web page with instructions for the public administration: http://www.mswia.gov.pl/pr2000.

At the beginning of 1995 KBN announced its new strategy for the IT Infrastructure Development Programme for Polish Scientific Communities, which covers the period up to 2000. The Programme is now being implemented and its main directives are still vital despite the changing conditions of the telecom market, such as new emerging data network operators and Internet providers, as well as plans for telecom market deregulation to coordinate with the European Union.

At the end of 1993 the Scientific and Academic Computer Network in Poland (NASK) was founded by KBN as an independent research and development institute responsible for network development, maintenance, and the introduction of new technologies. This has enabled the computer network to have a plain structure of financing within the state budget via KBN. Shortly thereafter, five computing centres were recognised by KBN as High Performance Computing Centres and separate financing was provided. After one year of activity NASK received their telecom operator licence from the Ministry of Posts and Telecommunications. NASK continually upgrades its international links which are at present: a two mbps submarine link to Stockholm and asymmetric satellite link to Washington D.C. with 6+2 mbps to the USA and 4.5 mbps back.

Due to the rapid growth of commercial traffic it was necessary to separate the scientific and commercial parts of the network. For that reason, in 1997, NASK offered connections to a scientific corporate network. This change of network system has continued to the present.

In March 1999 Poland joined the TEN– 155 project establishing a 34 Mbps link from Poznan to Frankfurt/Main. The connection was provided by the Tel– Energo — an independent operator owned by the Polish Power Distribution Networks (PSE). The link is operated by POL– 34 — a high academic speed network created in 1997 by a consortium of the academic Metropolitan Area Networks after the State Committee for Scientific Research changed its financing scheme for the research networks, providing effective demonopolisation of that market. Representatives of POL–34 replaced the Research and Academic Computer Network (NASK) in the Trans–European Research and Education Networking Association (TERENA). More information on the POL–34 network (in English) is available at: http://www.man.poznan.pl/pol34/english.

The activities related to computer and Internet education at schools started with the "Internet for Schools" Programme developed in 1996-1999 by IDS.

Under a project entitled "Internet Classrooms in Each Commune." (April 1998-March 1999) 2480 primary and high schools have been equipped with computers providing Internet access and containing education software. Appropriate training for teachers was provided. As a follow-up to this project, a project called "Internet classrooms in Each High Schools" (April 1999-September 2000) will be established. In this project 3200 high schools will be equipped with computers classrooms providing Internet access and containing educational software. Training for teachers will also be provided. Both projects are pilots and parts of the future "National Strategy of Education for the Information Society", which is being prepared by the Ministry of National Education.

In parallel with these two projects is a project called "Interkl@sa ", which is organised by the Ministry of National Education, the Parliamentary Commission for Education, Science and Youth, NGOs, private companies and media. One of its goals is to find non-budgetary financing-sources for education in this field.

The Polish Society of Medical Internet stimulates development of medical consultations in the Internet, promotes Internet as a tool for medical education and health promotion. Training for implementation of the Internet and computer science systems in the newest health care system in Poland, patient diagnostics and medical information services on the Internet are provided.

Krakowski Szpital Specjalistyczny im. Jana Pawla II (Hospital) is the model public health services organisation equipped with the modern telemedicine hardware and software tools. The hospital closely cooperates with ATM Internet provider.

The Foundation for Helping Physically Disabled Mathematicians and Computer Scientists is working for the disabled community, especially in the field of the Internet access to employment, education and information. The Foundation is aimed to promote teleworking for handicapped people.

The Telecommunications Regulatory Authority (TRA) is going to be established during 2000 as an independent regulatory body in accordance with the planned Telecommunications Law. The draft Telecommunications Act also requires the provision of universal telecommunications services for all licensed public operators providing such services. Also, a directed fund, (the Universal Service Fund) independent from the national budget, will be established. The objective of the fund is to further develop universal services and telecommunications in areas with decreased profitability, such as rural areas. The draft law now is a subject of discussion in parliamentary commissions.

2.1 Telecommunications liberalisation and new fields of developments (wireless local loop, Internet)

In the last period, a rapid increase in the number of Internet subscribers has been noted, thanks to the provision of free access to the network by TPSA and other providers. According to the new draft Telecommunications Act, there will be no licences or permissions needed for the provision of these services.

The draft new law described above now is a subject of discussion in parliamentary commissions. The new Telecommunications Act and Posts Act is scheduled to be completed by 2000, and the two Acts will come into force by the end of the year. The draft of the new Telecommunications Act document may be obtained (in English) at: http://www.ml.gov.pl/english/e_news.htm.

2.3 Allocation of resources (frequencies, numbering, access rights, licensing)

The Minister of Posts and Telecommunications Regulation ‘’National Telephone Numbers Allocation Programme", which harmonises with Council Directive 90/544/EEC, needs to be amended, due to the lack of a uniform emergency telephone number (112) and of organised services responsible for emergency communication. The preparation of legal action is required and will take into account regulations included in the draft Directive of EP and Council concerning protection of personal data and privacy in the context of digital telecommunications networks.

3. Media and telecommunications markets: privatisation, foreign investments, mergers and acquisitions, etc.

The National Broadcasting Council has drawn up a draft of the Broadcasting Act Amendment (Broadcasting Act of 29 December 1992, Journal of Law January 1993 with further amendments), which was sent to the Parliament (Sejm) by the Council of Ministers in 1997. Currently, the draft Act is being discussed in the Parliament. The basic amendments introduced by virtue of the above mentioned draft Act include:

1. Adapting the Polish legal provisions to those of the Directive Concerning Television Advertising, in particularly the extension of provisions protecting minors against harmful programmes to include television advertising.

3. Statutory delegation of power to the National Broadcasting Council to introduce preferences for new European works.

4. Restriction of the minimum share of domestic producers’ programmes for specialised and topic-specific programmes as well as empowering of the National Broadcasting Council.

2.6.1. The public telecommunications operator - TPSA

2.6.2 Competitive local service providers

2.6.3 Mobile service providers

3. International relationships and agreements

4. Regulatory framework