January 2001

Poland Master Report

This is the final Regulatory Developments report on Poland as the ESIS project ended in January 2001. 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

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.

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 they still protect Polish interests by limiting foreign investment in long-distance and international telephone services.

The decree of the Minister of Posts and Telecommunications of 4 September 1997 regulated 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.

The legalisation process of The Telecommunications Law has proceed as follows:

• The first reading in the Parliament - 7 May 1999
• The second reading in the Parliament - 28 April 2000
• The third reading and voting in the Parliament 12 May 2000
• Voting : 225 approved, 165 against, 7 no opinion
• Voting results - The Telecommunications Law accepted by the Parliament on 12 May 2000
• Sent to the President and Senate - 16 May 2000
• Approved by Senate on 9 June 2000 (with amendments)
• The Telecommunications Law was signed by the President of Poland on 21 July 2000. It will be effective from 1 January 2001.

The new Telecommunications Law is fully harmonised with aquis communautaire provisions and provides for full liberalisation of the telecom market in Poland, although TP S.A. still has a monopoly over international voice telephony services.

Key measures	Objective	Date
Law on Telecommunications	Main principles regulating the telecommunications sector harmonised with European Communities Laws	21 July 2000
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

The Telecommunications Law of July 21, 2000 lays down the principles for the performance and monitoring of activities consisting in the provision of telecommunications services or telecommunications service providers’ services, as well as for the operation of telecommunications networks, hereinafter referred to as "telecommunications activities", the use and monitoring of the use of radio equipment, the operation of regulatory authorities in telecommunications, the management of numbering resources, the management of radio frequency spectrum and orbital resources. The provisions of the present Act also specify the requirements for telecommunications equipment, the requirements to be met by the equipment or objects with regard to electromagnetic compatibility and the principles for marketing equipment or objects covered by the requirements of the Act.

The aims of the Act are to assure universal access to telecommunications services throughout entire territory of the Republic of Poland, to protect the interests of the users of telecommunications, to further fair and effective competition in the provision of telecommunications services, to develop a modern telecommunications infrastructure, to integrate telecommunications, information and audio-video services assuring access to pan-European and global networks and telecommunications services, to assure order in numbering, radio frequency spectrum management and orbital resources, and to protect state interests relative to national defence, state security and public law and order. http://www.ml.gov.pl

2.2. Umbrella Policies and national IS strategy

The state of art and development plans in sector of computer and telecommunications industry and in IS related services for citizen were presented during European Ministerial Conference "Information Society. Accelerating European Integration" in Warsaw on 11-12 May 2000. Progress report of EU-CEEC High Level Committee since the Third EU/CEEC Information Society Forum presented a comprehensive overview of governmental contribution to IS development in Poland.

The resolution of the Polish Parliament on Building Basis for Information Society in Poland was passed on 14 July 2000. The resolution stresses the necessity of national strategy for Information Society in Poland to be presented by the Polish Government. It includes the following issues:

• universal access to the Internet
• computer education for youths
• long-live computer education
• IST in central, regional and local administration
• defence and security issues
• information systems for research and university centres
• thread of illegal use of telecommunication networks and the Internet
• action plan of implementation of IS services in Poland
• Polish representation in international activities for e-economy regulations

The Polish Parliament required the Polish Government to prepare urgently regulations concerning e-economy development, including electronic signature, electronic document, information safety, cryptography, consumer protection, information protection, any matters related to e-business. The initiative of resolution has been undertaken by Inter-sector Launch Team, including Members of the Polish Parliament representing different political options.

The Council of Ministers on the Meeting on 28 November, 2000 in its statement concerning parliamentary resolution underlined the importance of transition processes in Poland from industrial to information society. The programme document entitled "Aims and Directions of Information Society in Poland" prepared by the KBN and Ministry of Telecom was accepted and will be presented in the Polish Parliament. The further steps to be undertaken by the ministries are as follows:

• all the Ministers are responsible for IS development agendas in their ministries including timetables, preliminary budget and financial resources – before 31 January 2001
• Minister of Internal Affairs and Administration is responsible for summary agenda of IS and telecommunications development in governmental administration – before 30 April 2001
• Ministers are asked to prepare sector strategies for IS development in 2001-2006 – before 31 March 2001.
• Minister of Telecom will prepare a summary document "Strategy of IS Development in Poland in 2001–2006 – ePoland" following eEurope initiative – before 31 May 2001
• Minister of Science – the Chairman of State Committee for Scientific Research (KBN) will organise an inter-sector advisory body for IS initiatives and assessment of sector strategies – before 31 December 2000
• Minister of Science – will be monitoring above tasks and submitting quarterly reports to the Council of Ministers

"Aims and Directions of Information Society in Poland" is a comprehensive document including chapters corresponding with topics mentioned in the parliamentary resolution, with defined aims and recommendations for responsible ministers and central administration. http://www.kbn.gov.pl/cele/index1.html

Umbrella programmes give substantial support in the accession process to the European Union. 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 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.

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

2.3. IS Application Areas

The programme document entitled "Aims and Directions of Information Society in Poland" prepared by the KBN and Ministry of Telecom will be presented in the Polish Parliament. This document consists of aims and recommendations in different areas and sectors of the Polish economy and social life. It includes an overview of situation of IS development in Poland in context of EU accession process. The following chapters: Introduction, Universal access to information, Computer education, Employment infrastructure changes, Law and IT crime, Document and electronic economy, Public tender, IST in administration sector, IT market development, Science and culture - illustrate the scope of the programme document, based on the Polish experts surveys.

The most advanced in information technologies applications is banking and telecommunication sector now. Six banks in Poland offer Internet banking services to individual clients. There is a very low percentage of IS applications in the insurance sector.

2.4. Government and administration (national, regional, local)

Public administration, governmental agencies, national and regional authorities are in the process of democratisation and increasing the openness of their activities. 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.

The computer systems implemented and in use in governmental administration are: POLTAX (Ministry of Finances), PESEL – the personal register in the Ministry of Internal Affairs and Administration, REGON in the Central Statistical Office. Some public sector projects are still non-operational or incomplete. Due to budget limitation and discrepancies in proper procedures important information systems are still in development phase like PULS (system for unemployed) and POMOST (social service) in the Ministry of Labour and Social Policy or KSI ZUS (Social Security Office). Minister of Internal Affairs and Administration is responsible for summary agenda of Information Society and telecommunications development in governmental administration.

2.5. Telecommunications and Internet

2.5.1 Telecommunications

The public telecommunications operator - TPSA

At the end of 1991 the telecommunications branch of the Polish PTT was transformed into Telekomunikacja Polska - Spolka Akcyjna, TPSA, 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, 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. The strategic investor of Telekomunikacja Polska S.A. - France Telecom (FT) and Kulczyk Holdings consortium signed the agreement on 25 July of 2000 after completing negotiations to buy 35% of TPSA’s shares from the owner, the Ministry of Treasury. By 2001 the strategic investor will be able to increase its shares in TPSA to over 50%. At present it still has until 2003 a monopoly on international connections, including international satellite-based telegraphy and telephony.

2.5.2 Competitive local service providers

About 100 licences for local telephone companies have been issued. 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 joint-stock company formed in 1990. In 1995 Netia made a shareholder agreement with Telia. Now it is owned by Telia AB (48%), American venture capital firm EM Wartburg Pincus (9%) and public NASDAQ shareholders (26%) and Polish public WSE shareholders (15%). Management Stock Option is 2%. Netia Holding controls the Netia Group, which consists of: Netia Telecom and Netia South.

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, but on 17 August 2000 obtained better conditions of its fixed telephony licence. RST El-Net’s new licence fee is 140 million euro, so it is more than 100 million euro lower then previous fee. 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.

2.5.3 Long distance services providers

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:

• Netia 1 Sp z o.o., ul. Poleczki 13, 02-822 Warszawa: a consortium of Netia Holdings and its 6 dependent companies, BRE Bank SS.A. PKO BP and Stoen SA
• Niezalezny Operator Miedzystrefowy Sp z o.o. ul. Jutrzenki 177, 02-231 Warszawa: a consortium of Tel-Energo, Polskie Sieci Elektroenergetyczne and Polski Koncern Naftowy
• NG Koleje Telekomunikacja Sp z oo, ul. Grojecka 17, 02-021 Warszawa: a consortium of Polskie Koleje Panstwowe (The Polish State Railways), National Grid (the British power consortium) and its filia Energis, Centrala sp z o.o. (dependent of the Polish Telecom Operators - PTO).

Before the end of year 2000 all the three long-distance operators agreed to take licences despite primary obstacles and doubts. NG Koleje Telekomunikacja took the last licence.

2.5.4 Mobile service providers

Centertel is a consortium comprising of TPSA (66%) and France Télécom (34%). 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 Polski Koncern Naftowy ORLEN S.A. (19,61%), TeleDanmark A/S (19,61%), KGHM Polska (19,61%), Vodafone Americas Asia Inc. (19,61%), Polskie Sieci Elektroenergetyczne (16,05%), Weglokoks S.A. (4%), Tel-Energo (1,01%), Telbank (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. Plus GSM has over 2,3 clients and covers 94% of the Polish territory.

Polska Telefonia Cyfrowa Sp. z o.o. (PTC) is a consortium comprising of Elektrim Telekomunikacja Sp. z o.o. (47,9998 %), MediaOne International B.V. (22.5%), DeTe-Mobil Deutsche Telekom MobiNet GmbH (22.5%), Polpager (4%), Elektrim Autoinvest S.A. (1,1%), and Carcom Sp. z o.o. (1,9%), Elektrim S.A. (0,0002%). It 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 was estimated that there will be 5 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, with estimation to 2 million clients.

2.5.5 Internet

There is lack of foreign investors on the Polish Internet market. Nevertheless there are such examples as Internet Partner supported by American data transmission operator GTS. In the same time there are investments among big Polish companies and holdings like Elektrim, Prokom, Softbank, Optimus, Computerland, ComArch, Ster-Projekt.

The role of IT SMEs as access providers is going to decrease. Customers prefer bigger, more well known firms, offering broad spectrum of services of better quality. Nevertheless IT SMEs can still play an important role as specialised integrators, in software services and www designing.

A professional equipment and qualified staff is necessary to implement and manage a portal.

The leadership of two portals, Onet and Wirtualna Polska, is stable. There is difference between rankings among other top Polish portals. Such difference depends on the evaluation criteria. Some portal owners will sell them to other investors after initial stage. The number of Polish portals is growing. It is, however, estimated that only 3 to 5 portals in Poland will be successful.

2.5.6 WAP

WAP technology is much cheaper than Internet for individual users and are broadly offered by different providers.

Wirtualna Polska provides at wap.wp.pl news from various aspects of daily life in Poland, including regional information, entertainment and sport. It contains train and flight timetable, exchange rates etc. Companies and individuals can create their own WAP pages. A search engine for WAP Internet pages and e-mail service is accessible as well. The scope of services is still growing. The next step is Mobile Positioning System MPS.

2.6. Electronic Commerce

Although the law on electronic signature is still in the legislative process, conditions exist in Poland to proceed electronic commerce including electronic banking. Authorisation and certification system exist, and there are organisations willing to operate public keys. Some banks in Poland are launching Internet services. Account holders can check their accounts, make transfers, etc. There are differences regarding both internet services offered and methodology used in security systems.

Brokers offices started to provide services in the Internet as well.

The amount of B2B and B2C transactions is low, but increasing.

About twenty auction web sites are operating in Poland. A good example is www.allegro.pl. The other one is www.ktodawiecej.pl. Music vortal, which includes a shop with concert tickets, is under www.nuta.pl. The other music page is www.mp3.pl. www.merlin.com.pl and www.empik.com provide electronic book shopping.

2.7 Education and Research

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 Poznań 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 new project of IT infrastructure for research and academic environment in Poland for 2001-2005 PIONIER: Polish Optical Internet – Advanced applications, Services and Technologies for Information society is going to ensure wide access to the Internet and its services for education sector, create a national infrastructure of a broad-band government and self-government administration network, provide scientific environment with access to advanced network infrastructure and specialised infrastructure (including computers with large computational powersHPC systems), enable Polish teams partnership participation in the 5^th and the 6^th Framing Framework Programs and other international programs, maintain the level of technical and scientific IT infrastructure development at the level of European Union countries http://www.kbn.gov.pl

The investment necessary for the development of the new PIONIER computer infrastructure based on optical network project for research community in Poland for 2001-2005 is estimated at 180 million Euro. All regional computer centres in Poland will be connected with broadband optical network.

2.7.1 Education

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. At present, there are 5 000 internet classes at Polish schools. The process of establishing new ones, especially in remote rural areas, will be continued.

2.8. Transport

"Aims and Directions of Information Society Development in Poland" prepared by the KBN and Ministry of Telecom there is recommendation for providing broadband telecommunication networks together with the new investments of highways.

Monitoring systems of heavy traffic are implemented in several Polish towns (Warsaw, Poznań, Cracow). It will be possible to check, in the WWW or WAP service, the current situation on streets and roads.

2.9 Health Care

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.

Several medical portals and medical services are implemented. The new portal clinica.pl is the further step in consolidation of the Polish pharmaceutical and medical sector. It is developed by Computerland S.A. and Polska Grupa Farmaceutyczna PGF. The level of investment will be 6 million Euro. E-commerce, information service and specialised software will be offered. The new weekly "Puls Medycyny" published by Medicine Today will start in October 2000. It will cooperate with Pharmanet portal.

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.

As part of PIONIER programme, remote medicine applications are supposed to assist in development of IT environment supporting development of remote medical services for scientific and service-providing units. This application will ensure access to the latest medical achievements, remote patient supervision. It will also help establishing a virtual medical consultant, with a high quality sound and image transmission in a transmission band of 2.5Gb/s separated for that purpose.

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.

2.10. Labour

There are still technical and organisational obstacles concerning the computerisation of Social Security Administration (ZUS) by Prokom Software S.A.

Implementation of the group work application proposed by PIONIER programme requires tool software, which includes, e.g., video conferencing software with options for synchronic group work, management and document sharing mechanisms, access control methods, access rights management, accounting, methods for registering flow of group work session, access interfaces to different types of communication services.

In order to implement group work application, appropriate communication infrastructure is necessary, mainly access networks.

2.11. Competition

One of aims of the new telecommunications law is support to fair and effective competition in the provision of the telecommunication services. Fair competition issues are underlined as well in the document "Aims and Directions of Information society in Poland".

2.12. Access for all

Access for all is a subject of the resolution on Information Society in Poland undertaken by the Polish Parliament. (See: 2.2)

Telephone density in rural areas is 14,9%, which is almost a half of the density in urbanised areas.

The main purpose of the Government’s Plenipotentiary for Rural Telecommunications strategy is enlargement of telecommunication infrastructure on rural areas and extension of the access to telecommunication service. Actions undertaken are focused on initiating and checking telecommunication process on rural areas stimulating their opening for the outside business environment.

In Poland the delivery of telecommunication services is realised by TP S.A. in 96%. Licensed operators serve less than 4% of subscribers in general.

According to accepted criteria of European Committee rural areas in Poland contain 83% of the country and 32,8% of population. Small villages are still suffering from a lack of any connection.

Estimated demand for telecommunication services is about 2 million new rural subscribers by the end of year 2004.

An important mechanism encouraging the interest of potential telecommunication investors to allocate their capital into rural areas will be preparation of disposal order of Minister of Posts and Telecommunications regarding general conditions for connection to the telecommunication network and the rules of settlements of accounts. Operators have rights to redistribute from one of another, with whom they have signed an agreement about co-operation, an additional payments is to be raised for the realisation in their own network phone calls from subscribers localised in areas where telephone density is lower than average density in other rural areas in the country, especially in south – east region of Poland ( districts : mazowieckie, łódzkie, lubelskie, podkarpackie and świętokrzyskie).

The realisation of investment projects (BOT) (Build-Operate-Transfer formula is possible through co-operation of two sectors with engagement of both public and private ones. Such co-operation assumes creation of a subject of commercial law (limited company or join venture). Shareholders of such a company could be: an operator (service supplier), rural community, ‘gminas’ and private investors as well (banks, suppliers of equipment).

Parts of the Poland’s population cannot afford the tariffs for telephone installation. However, the expansion of mobile voice telephony (over 6 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.

2.13. Copyright and intellectual property rights

The new Copyright Law was enacted on 9 June 2000.The Law is harmonised with aquis communautaire provisions.

2.14. Public access to data

There are two parliamentary initiatives related to public access to data. The first is the Act on Access to Public Information, which was submitted on 30 June 2000. The second is the Act on Decision Procedures, Openness, Lobbying and Public Access to Information, which was registered on 25 July 2000. The first reading was taken on 15 September 2000. Both projects are currently being discussed in the Parliamentary Commission. As to the new environmental law, the issue of public access to environmental information is one of the crucial elements.

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.

2.15. Privacy, data protection, consumer protection

Privacy and data protection, specially personal data is one of fundamental issues in democratic society. The Plenipotentiary for Personal Data Protection is in charge to monitor any obstacles in this regard.

Guarantee for privacy of an enterprise, which is proposed in the project on the public information law, may be an obstacle to public access to information. In the future it could cause limitations of data access.

The price for universal services provided by significant market power operators will take into account the costs of their provision and be independent of the method of the provision of such services, unless the user requests additional facilities.

 Dominant operators in the provision of universal service or in leased-line service will keep separate accounts for each of the services in which they have a dominant positions, their interconnection settlements under interconnection agreements concluded with other operators.

Tariff pages and their modifications shall be published in the OTR Bulletin at the expense of the operator. These provisions shall be without prejudice to the provisions of the Act on Counteracting Monopolistic Practices and the Protection of Consumer Interests.

2.16. Security

The inter-sector Launch Team for electronic commerce headed by V-Minister of Economy Wojciech Katner has developed the act on electronic signature. Technical and organisational measures were accepted by the Polish government on 11 July 2000. The Act on Electronic Signature was prepared and sent to Parliament before the end of year 2000. It should be effective by the second half of 2001.

128-bit code is used during Internet banking transactions. In Pekao S.A., Lukas bank and WBK, token methodology is adopted. Pekao S.A., Fortis Bank and BPH offer safe electronic correspondence to their clients.

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

See: 2.2

3.1 Ministries 

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

• 1 December 1989: office of the Telecommunications Minister legally adopted
• 3 February, 1997: the Prime minister’s ordinance on the Telecommunications ministry status adopted
• April 10, 1997: the organisational regulations of the Telecommunications Ministry’s legal status.
• July 21, 2000 the Act of Telecommunications Law

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 Post (Poczta Polska)
• The Telecommunications Institute (Instytut Lacznosci)
• The State Postal and Telecommunications Inspection (Panstwowa Inspekcja Telekomunikacyjna i Pocztowa - PITIP) (liquidated by the Act of Telecommunications, July 21, 2000)
• The State Radio-communications Agency (Panstwowa Agencja Radiokomunikacyjna - PAR) (liquidated by the Act of Telecommunications, July 21, 2000)
• Government Plenipotentiary for Rural Telecommunications (established by the 1990 Law on Posts and Telecommunications to prepare rural telecommunications development programmes within the Ministry).

From the 1st of January 2001 the new governmental body, (based on PITIP and PAR) is the Office of Telecommunications Regulation (OTR). The President of the OTR is appointed by the President of the Council of Ministers for a 5-year term.

3.2 National regulatory authorities

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.

Ministries who will be mainly involved in the preparation of Information Society related acts are:

Ministry of Telecommunications; Ministry of Economy; and State Committee for Scientific Research (Ministry of Science)

The minister competent for posts and telecommunications may lay down by ordinance the types of telecommunications activities meeting the criteria, which shall not require authorisations, aiming to limit the scope of telecommunications activities performed under authorisations.

Acting in communication with the minister competent for public finance, the minister competent for posts and telecommunications shall lay down by ordinance the amounts, timing and payment terms for the fees, as appropriate for the range of telecommunications activities conducted by the operators, including the nature of their use of the numbering resources and acting on the assumption that said fees should be justified by the costs of the regulation and monitoring of the relevant telecommunications activities. He may lay down by ordinance the detailed conditions for the provision of specified telecommunications services, including quality of service indicators, using the requirements stipulated in the documents of European standardisation organisations as a benchmark and in their absence – using the requirements of other international standardisation organisations of which the Republic of Poland is a member, shall lay down by ordinance the detailed requirements applicable to universal service, in particular to the quality of service and its availability, the number of publicly accessible telephones where calls are paid for automatically, in particular with coins, tokens, prepaid telephone cards, credit or debit cards, hereinafter referred to as "public payphones", including payphones adapted to the needs of disabled persons. The minister shall lay down by ordinance the detailed requirements relative to the interconnection of telecommunications networks.

The competencies of the President of the Office of Telecommunications Regulation (OTR) include:

• duties relative to the regulation of telecommunications activities and frequency management, as well as the monitoring of compliance with the requirements of electromagnetic compatibility, provided for by the present Act and provisions issued in pursuance thereof,
• collaboration with the minister competent for posts and telecommunications in drafting legal acts within the competencies of the President of the OTR,
• assessment of the operation of the market of telecommunications services and of the telecommunications equipment market,
• intervention in matters related to the functioning of the market of telecommunications services on its own initiative or brought to its attention by the parties concerned, in particular by users and operators, including the making of decisions on these matters within the scope provided for by the present Act,
• creating conditions for the development of the domestic radio communications service by securing the necessary frequency assignments for Poland and access to satellite-orbital resources,
• duties related to national defence and security,
• co-operation with international telecommunications organisations and competent foreign national authorities, within the competencies of the President of the OTR,

3.3 Office for the protection of economic competition

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 on 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).

Acting in communication with the Chairman of the Office for the Protection of Competition and

Consumers, the President of the OTR will by its decision rule that an authorised operator in the area designated by its decision has a dominant position within the definition of the Act on Counteracting Monopolistic Practices and Protection of Consumer Interests in the market of particular services in the designated area and is a significant market power operator with regard to the provision of a particular service, where this operator’s share in the provision of that service in that area is equal to or higher than 25%.

The President of the OTR may by its decision rule that an authorised operator whose market share in the provision of a particular service in a particular area is lower than 25% is a significant market power operator with respect to that service, taking account of its ability to influence the functioning of the market, revenues relative to the size of market, access to end-users, experience in the provision of telecommunications services in the market.

The President of the OTR shall issue the decisions with regard to the provision of universal services, leased-lines service, telephone services provided in mobile public telephone networks, interconnection services provided in the domestic market.

Operators with significant market power in the provision of universal services shall submit to the President of the OTR their draft tariff pages for universal services or the modifications thereto, accompanied by a justification thereof at least 30 days in advance of the anticipated entry into force of such tariff pages or modifications. The President of the OTR may by its decision, within 14 days of the submission of the tariff pages or modifications thereof, contest such tariff pages or the modifications thereof, where the tariff pages or the modifications thereof should be contrary to the provisions of the Act of Telecommunications Law. The parts of the tariff pages or the modifications thereof, contested by the President of the OTR shall not enter into force.

3.4 Consultative councils

The Act of Telecommunications Law of July 21, 2000 defines activities of the telecommunications Council acting as a consultative and advisory body to the President of the OTR in matters of telecommunications activities, frequency management and compliance with electromagnetic compatibility requirements.

The President of the OTR shall seek the opinion of the Telecommunications Council on matters related to assuring access to universal services, the quality of universal services, the determination of the principles of network interconnection and operator’s co-operation resulting there from.

The Telecommunications Council shall be made up of 15 persons. The members of the Telecommunications Council shall be appointed and dismissed by the President of the Council of Ministers.

The President of the Council of Ministers shall appoint to the Telecommunications Council one representative each of the minister competent for posts and telecommunications, the Minister of Defence, the minister competent for internal affairs, the Chairman of the National Council for Radio and Television, the Head of the State Protection Office and of the President of the Office for the Protection of Competition and Consumers selected amongst the candidates put forth by these authorities, persons pre-eminent in terms of their knowledge and experience in matters coming within the competencies of the Council, including candidates designated by professional associations, scientific centres and research units, as well as organisations representing operators, users and telecommunications service providers, telecommunications equipment manufacturers and suppliers, as well as organisations involved in the construction of telecommunications infrastructure.

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.

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.

3.5 Bodies in charge of RTD policy

The State Committee for Scientific Research is responsible for RTD policy in Poland.

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 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.

3.6. Organisations in charge of the promotion of the IS

Chambers of Commerce and Associations have statutory obligation to promote IS in Poland. During Hannover EXPO, the Chamber of Commerce for Electronics and Telecommunications in Poland promote 6 computer companies, 9 telecommunication operators and 6 telecommunication hardware providers. Promotion materials are presented on tele-beams near the Polish pavilion.