July 1999

Slovenia Master Report

I. General Background

1. General Telecommunications Policy

The general telecommunications policy will be defined by the National Programme for the Development of Telecommunications. The main purpose of the National Programme (Law on Telecommunications, Official Gazette (OG) of the Republic of Slovenia (RS), No. 35/97) is to define:

• the long-term development of the telecommunications networks and services,
• investments into the public telecommunications network, and
• economically justifiable technologies to be used for covering the rural and less developed regions with public telecommunications services.

The Government of the Republic of Slovenia approved the National Programme for the Development of Telecommunications on 1 April 1999 (missing the deadline by about eighteen months) and passed it to the National Assembly of the Republic of Slovenia for adoption.

2. Institutional Structures in Charge of the Regulatory Issues

2.1 Governmental Bodies in Charge of the Telecommunication Issues

2.1.1 The Government of the Republic of Slovenia

The Government of the Republic of Slovenia is the executive body and, at the same time, the supreme body of the state administration. The roles of the Government in the telecommunications field are:

• it issues regulations defined by the Law on Telecommunications;
• it decides upon the selection of a concessionaire;
• it is entitled to restrict the share of foreign legal or physical persons in the basic capital of a concessionairy company, unless overruled by international agreements.

The Government is also an active player in telecommunications as the main shareholder of the incumbent operator Telekom Slovenije and by setting tariffs of public telecommunications services.

2.1.2 The Ministry of Transport and Communications

The Ministry of Transport and Communications is in charge of telecommunications. It had a central role in defining the National Programme for the Development of Telecommunications. Within two years of the Law on Telecommunications coming into force on 28 June 1997, the Minister was responsible for enactment of subsidiary legislation.

The Ministry serves as an appeal body for decisions taken by the Telecommunications Administration and Communications Inspectorate.

2.1.3 The Ministry of Economic Relations and Development

The Ministry of Economic Relations and Development is responsible for tariff issues. The Minister proposes tariffs for public telecommunications services to the Government, which then takes a decision. Through its Office for Competition Protection, the Ministry should also play a vital role in the competition regulations.

2.1.4 The Ministry of Finance

The Ministry of Finance is responsible for the state’s ownership issues of Telekom Slovenije.

2.1.5 The Ministry of Culture

The amended Law on Mass Media gives more power to the Ministry of Culture in the media field, yet it does not play a significant role in a day-to-day shaping of broadcasting policy.

2.1.6 The Broadcasting Council of the Republic of Slovenia

The National Assembly established the Broadcasting Council on 26 May 1994. The Council has 8 members and a president appointed by the National Assembly drawn from experts in the field of broadcasting and public workers. The Government proposes four members. Members of the Council cannot be officials employed in state bodies, deputies, members of the leadership of political parties or employees of RTV organisations. The mandate of the president and the members lasts 5 years. After their mandate expires they can be re-elected. The Council conducts its work independently. It has a right to demand from the state authorities, RTV organisations and cable operators the information and materials it needs for its work.

2.2 National Regulatory Authorities

2.2.1 The Telecommunications Administration of the Republic of Slovenia

The Telecommunications Administration is in charge of technical, developmental, organisational and administrative tasks in the field of telecommunications regulations. It has the following duties:

• issuing decrees regarding commercial telecommunications services that may be carried out on the basis of preliminary notification,
• radio frequency spectrum regulation and management,
• granting the right to use of radio frequencies in accordance with the allocation of radio frequency bands and radio frequency plans,
• granting licences for the provision of commercial telecommunications services,
• granting, modifying or cancelling radio licences,
• approval of notification,
• provision of advice on the use of radio frequencies,
• issuing consents for the construction of the public telecommunications network,
• regulating, checking and supervision of conformity of telecommunications equipment and electrical devices with the Law on Telecommunications,
• charging fees for the use of radio frequencies,
• monitoring the operation of telecommunications networks,
• co-operation with the International Telecommunications Union.

The Telecommunications Administration also acts as an appeal body for disputes between users and telecommunications service providers.

2.2.2 The Communications Inspectorate of the Republic of Slovenia

The Communications Inspectorate is responsible for supervising the implementation of the Law on Telecommunications and of the regulations based upon this Law.

2.3 The Office of the Republic of Slovenia for the Protection of Competition

The Office for Competition Protection is responsible to the Ministry of Economic Relations and Development. It performs specific tasks relating to competition rules and carries out procedures in accordance with the competition regulations defined by the Law on Protection of Competition (O.G. RS, 18/93).

2.4 Consultative Councils

There is no consultative council at present. The new law on telecommunications being drafted may propose the establishment of the National Telecommunications Council, which will have a consultative role.

2.5 Telecommunications Operators

3.  International Relationship and Agreements

Slovenia is a relatively young state. It declared its independence on 25 June 1991. The Constitution of the Republic of Slovenia was adopted on 23 December 1991. Slovenia was officially recognised by the European Union on 15 January 1992 and became a permanent member of the United Nations on 22 May 1992. On 1 January 1998, Slovenia became a non-permanent member of the United Nations Security Council.

* Slovenia has not yet signed the WTO Agreement on Basic Telecommunications.

4 Regulatory Framework

4.1 Historical Overview

The organisational and legislative framework of telecommunications in Slovenia has been changed a few times. Most of the telecommunications services were under the monopoly of PTT organisations. Purchasing and selling of the telecommunications equipment were free, provided it had a type-approval of a PTT. Since 1960, nine PTT organisations had been relatively independent. Later, they were merged into the Composite Enterprise SP PTT Ljubljana. In October 1993, they were merged into the united enterprise – PTT, that split on 1 January 1995 into Posta Slovenije and Telekom Slovenije.

Apart from the PTT, the telecommunications legislation defined only the telecommunications of broadcasting organisations and closed (functional) networks of public utilities. The paging services (based on the RDS), cable communications and distribution systems (since 1982), and Internet services (since mid nineties) have been developing separately. The mobile telephony (NMT 410 and GSM 900) has also been developing relatively independently.

In Yugoslavia, telecommunications competence was strongly concentrated at the federal level. Slovenia did not have its own telecommunications bodies and it lacked experience of telecommunications policy creation and management. After the proclamation of Slovenia’s independence, the Telecommunications Administration was established as a part of the Ministry of Transport and Communications.

Slovenia adopted its own Law on Telecommunications in 1997. Since the proclamation of the independence, the promotion of the development of telecommunications industry, infrastructure and services have not been top issues neither on the agenda of the Slovene Government nor the National Assembly. It took almost six years to set up foundations for a new telecommunications legislative framework.

Before 1997, the telecommunications legislation was covered with three laws. In 1994, the Rules on Using Telecommunications Regulations (O.G. RS, No. 66/94) were adopted, defining which of about 500 regulations issued in former Yugoslavia were still valid and which were not (84 regulations stayed in use). The number of regulations was further reduced with the Law on Telecommunications of 1997.

(Source: The National Programme for the Development of Telecommunications, 1999)

4.2 Present General Legislation

The general legislative framework for the telecommunications policy is based on the Law on Telecommunications that was passed by the National Assembly in May 1997 and came into force on 28 June 1997. Within two years of the new Law on Telecommunications becoming effective, the Government and the Minister in charge of telecommunications should issue subsidiary regulations. This means that the Law shall have been fully implemented by the end of June 1999.

The Law on Telecommunications of 1997 represents an important step forward from the previous regime toward a more open environment. It is based on the European telecommunications legislation but mainly on that from the early nineties. The emphasis is on the regulation of technology and services and less on the open network provision. The Law does not include all legislative measures of the existing European legislative framework.

The framework for competition is set by the Law, by defining the authority and responsibilities of the Telecommunications Administration, which is the National Regulatory Authority and responsible for the licensing procedure for commercial services.

4.3 Key Legislative Measures

4.3 Issues

4.3.1 Liberalisation

Slovenia has been restrictive in opening its telecommunications market. By 31 December 2000, Telekom Slovenije will have had exclusive rights on the provision of public telecommunications services of voice telephony and telex, and on the construction and management of the public telecommunications network intended for the provision of public telecommunications services, data telecommunications and global wideband and multimedia telecommunications.

Other services are liberalised, however the inconsistent Law on Telecommunications and various non-political barriers are delaying actual liberalisation. An open public debate has also been going on about the actual liberalisation status of particular telecommunications services.

4.3.2 Licensing

The licensing framework is set by the Law on Telecommunications and Regulations on the Issuing of Licenses for the Provision of Commercial Telecommunications Services (O.G. RS, 75/98). The Law distinguishes three types of the licensing procedure, i.e. notifications, licences and concessions.

The current licensing regulatory framework is not harmonised with the EC Licensing Directive (97/13/EC). It should be simplified and more transparent.

4.3.3 Universal Service

The universal service obligations are specified by the Decree on the Mode of Providing Public Telecommunications Services of Voice Telephony and Telex and on Management of the Public Telecommunications Network (O.G. RS, No. 11/98). Apart from the Decree and Law on Telecommunications, the legislative basis for the provision of public telecommunications services is provided by the Law on Public Utilities (O.G. RS, No. 32/93, 30/98).

Connections to the public telecommunications services network (for the provision of the public voice-telephony and telex services) must be available to all legal entities and natural persons on the whole territory of the Republic of Slovenia. Exceptions are specified in the Decree.

The funding mechanisms for the universal service obligation are not specified. The prices of public telecommunications services must be equal across the whole territory of the Republic of Slovenia for the same type of user in the same situation. The principles for setting tariffs and tariffs’ ratio as well as prices of public telecommunications services are determined by the Government.

4.3.4 Tariffs Policies

The telecommunications services have been under the monopoly of the PTT organisations and later of the national telecommunications operator. National tariffs have also been subsidised with the international ones. There has been no need for tariffs’ cost orientation. Moreover, with new technologies the costs decreased with the tariffs staying mainly unchanged. As a result, there has been a great discrepancy with actual costs and the tariffs in more open telecommunications markets.

The installation charges are high, while domestic PSTN tariffs, both business and residential, are amongst the lowest in Europe. On the other hand, international PSTN and leased lines (both national and international) tariffs are amongst the most expensive in Europe. The full rebalancing would require a reduction of connection charges, leased lines and international PSTN tariffs for 60-70%, an increase of subscription for 200% and domestic PSTN tariffs for 120-140%. (Source: The National Programme for the Development of Telecommunications, 1999)

4.3.5 Quality of Service

The quality of services is regulated by the Decree on the Mode of Providing Public Telecommunications Services of Voice Telephony and Telex and on Management of the Public Telecommunications Network and the Decree on the Granting of a Concession for Using the Radio Frequency Spectrum for GSM Mobile Telephony Services.

The provision of quality of service targets is based on the old version of the EC ONP Voice Telephony Directive (98/10/EC). In addition, operators rather than the regulator set the targets.

4.3.6 Interconnection

The Law on Telecommunications sets the basis for the interconnection of telecommunications networks that are regulated by the Decree on the Mode of Providing Public Telecommunications Services of Voice Telephony and Telex and on Management of the Public Telecommunications Network.

According to Article 14 of the Decree, voice-telephony service operators have the right and, at the request of interested operators of other telecommunications services, also the obligation, to discuss network interconnections with other telecommunications service operators, covering also the connections to points on the network different from or other than those points which the voice-telephony service operator offers to the majority of operators of other telecommunications services.

The Minister responsible for communications can order by decree voice-telephony service operators to establish a network interconnection with another operator, if no contract has been concluded under non-discriminatory terms. Under the conditions, specified in Article 15 of the Decree, the Minister may also reject the request for a network interconnection by decree. In addition, he may also reject the request, if on the basis of a proposal from a voice-telephony service operator the minister responsible for communications finds that the requested network interconnection would have a major impact on the commercial status of the operator. This could well represent a basis for preferential treatment of the incumbent operator.

The interconnection policy in Slovenia is not harmonised with EU directives. Moreover, some very important provisions regarding operator’s significant market power are missing.

5 Freedom and Protection

5.1 Intellectual Property Rights

Slovenia has been devoted to the protection of intellectual property rights since the very beginning of its independence. The first step in creating the legislative framework in this field was made in 1992 by adopting the Law on Industrial Property. Three years later the Law on Copyright and Related Rights and the Law on Protection of Topographies of Integrated Circuits were adopted.

In June 1992, Slovenia declared the continued applicability of the World Intellectual Property Organisation Convention, Paris Convention, Bern Convention, Madrid Convention, Locarno Agreement and Nice Agreement on its territory. Since then, Slovenia has become a party of a number of international treaties on intellectual property rights. It is also a member of the World Trade Organisation and is therefore bound to the Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement.

Copyright and Related Rights

Copyright and related rights are covered with the Law on Copyright and Related Rights (O.G. RS, No. 21/95) which has been effective since 29 April 1995. The Law is based on the legislative framework established within the European Union, the Council of Europe, World Intellectual Property Organisation, World Trade Organisation, and others.

Apart from the protection of classic works, the Law also provides for the protection of computer programmes and databases, and regulates the new economic rights (e.g. rental, lending, distribution and importation, satellite broadcasting and cable retransmission), related rights and their collective administration. In compliance with the WTO TRIPS Agreement, special attention has been paid to enforcement issues.

The institutional framework for the implementation of the Law is clearly defined. The collective administration of authors’ rights may be engaged in only by non-profit organisations of authors (collective societies) established specifically for that purpose and have the permission of the Slovene Intellectual Property Office to administer such rights. The Slovene Intellectual Property Office grants the permission to a collective society, fulfilling the conditions, on the basis of a public tender. The permission may generally be entrusted to one such society for the same category of works. The Slovene Intellectual Property Office supervises the exercise of the collective administration of rights.

Industrial Property Rights

Slovenia ratified all important international agreements on industrial property rights (e.g. Patent Co-operation Treaty, Madrid Agreement and Protocol, Hague Agreement). The legislative framework is set by the Law on Industrial Property (O.G. RS, No. 13/92, 27/93, 34/97, 75/97).

For the patents, the definitions basically follow the wording of Article 52 of the European Patent Convention. Scientific discoveries cannot be protected. Apart from this, the protection can be denied only for inventions for which either their publication or exploitation would be contrary to public order or morality, as well as for inventions related to diagnostic or therapeutic methods for the treatment of human and animal bodies. The protection covers even plant or animal varieties.

By signing the Extension Agreement with the European Patent Organisation, the extension of the effects of European patent applications and subsequent European patents to the Slovene territory has been enabled since 1 March 1994.

Industrial designs, trademarks and topographies of integrated circuits are also efficiently protected in accordance with international treaties and agreements.

The protection of industrial property rights in the Republic of Slovenia is administered by the Slovene Intellectual Property Office. Although the legislative framework is harmonised with international practices, the judicial protection is sometimes inefficient due to inefficiency of Slovene courts.

5.2 Privacy, Data Protection, Consumer Protection

Privacy

The protection of privacy and personal rights is a part of the human rights and fundamental freedoms guaranteed by the Constitution of the Republic of Slovenia (O.G. RS, No. 33/91, 42/97). Other legal measures, addressing privacy, have to comply with the Constitution, generally accepted principles of international law and international agreements that bind Slovenia. Proclaimed international agreements to which Slovenia adheres take immediate effect.

Slovenia has ratified a number of international agreements on human rights and fundamental freedoms, covering also the protection of privacy. Amongst others, it ratified the European Convention for the Protection of Human Rights and Fundamental Freedoms of 4 November 1950 (O.G. RS, No. 7/94, 33/94).

Privacy and data protection in telecommunications and Internet are regulated by the Law on Telecommunications, where confidentiality, protection and security of transmitted messages are treated rather inconsistently. The protection of privacy and confidentiality of transmitted messages is also specified in the Regulation on GSM Network (O.G. RS, No. 4/96).

Data Protection

The protection of personal data relating to an individual is guaranteed by the Constitution. In accordance with the Constitution, any use of personal data is forbidden where that use is in conflict with the original purpose for which data was collected.

Slovenia ratified all important international conventions on data protection, amongst others the Convention No. 108 of the Council of Europe for the Protection of Individuals with Regard to Automatic Processing of Personal Data (O.G. RS-MP, No. 3/94; O.G. RS, No. 11/94).

In accordance with the Constitution, adopted international agreements and general principles of international law, the Law on Personal Data Protection was adopted (O.G. RS, No. 8/90, 38/90, 10/91, 19/91, 17/91, 13/93, 66/93). The Law along with the subsidiary legislation regulates the collection, processing, end-use as well as the supervision and protection of the confidentiality of personal data.

In addition to general legislation on the protection of personal data, there are a number of special laws and subsidiary regulations, dealing with particular data. The civil juridical review and protection of privacy is regulated by the Penal Code of the Republic of Slovenia (O.G. RS, No. 63/94, 70/94). The supervision of the implementation of the Law on Personal Data Protection is performed by the responsible Inspector.

In 1998, the Human Rights Ombudsman received ten initiatives for the protection of fundamental human rights and freedoms related to personal data protection. Nine of them were solved. (Source: Human Rights Ombudsman, Annual Report 1998)

Consumer Protection

The consumer protection is directly or indirectly regulated by several laws and regulations. The most important of them is the Law on Consumer Protection (O.G. RS, No. 20/98, 25/98, 23/99), which has been effective since 28 March 1998. Some other important laws are, e.g. the Law on Protection of Competition, Law on Obligations, Law on Promotion of Tourism (O.G. RS, No. 57/98), Law on General Safety of Products (O.G. RS, No. 23/99), etc.

Responsibilities for the implementation of the Law on Consumer Protection are split between various ministries. An institutional framework for the protection of consumers within the Government was set up by establishing the Consumer Protection Office of the Republic of Slovenia within the Ministry for Economic Relations and Development in 1996.

The Minister responsible for trade appointed an expert council, comprising of representatives of the relevant interested administrative bodies, consumer organisations, business chambers and associations, and renowned experts in consumer protection. The council is primarily involved in the preparation of the National Consumer Protection Programme and annual programme for consumer protection.

Activities in the area of consumer protection may be provided, as a non-profit public service, by consumer organisations on the basis of concessions granted by the Government after a public call for tender. The most important consumer organisation is the Slovene Consumers’ Association, while the development of other consumer movements is still limited.

The implementation of the Law on Consumer Protection is supervised by market inspection bodies within the scope of their authority.

The legislation regarding the consumer protection has not been fully harmonised with EU directives. Amongst others, the existing legislation concerning distance selling has to be amended to comply with the EU legislation. According to the national accession plan, the harmonisation of the Law on Consumer Protection should have been implemented by 31 December 2002.

5.3 Electronic Protection, Legal Protection and Security (Encryption, Electronic Commerce)

The Law on Personal Data Protection regulates the security of personal data. Electronic protection and security have not been regulated by a special law yet. However, the present Law on Personal Data Protection along with subsidiary legislation provides for a proper legal basis for the electronic protection and security of databases and other means for storing, processing or transmission of personal data.

The legislative framework for the electronic commerce has also not been established yet. A draft of the Law on Electronic Commerce and Digital Signature has been drafted by the Government Centre for Informatics that is to be approved by the Government soon and then passed to the National Assembly for the first reading.

5.4 Freedom of Expression and Information

Freedom of expression and information is a human right and fundamental freedom, guaranteed by the Constitution of the Republic of Slovenia. Apart from the Constitution, freedom of information is regulated by the Law on Mass Media (O.G. RS, No. 18/94). The current legislative framework has not been completely harmonised with EU directives. A new Law on Mass Media was approved by the Government on 6 May 1999 and passed to the National Assembly for adoption. Some of its provisions might be disputed.

6. Information Society Policies

6.1 Umbrella Policies

Slovenia does not have any umbrella policy on the Information Society. The Strategy for the Economic Development of Slovenia, prepared by the Institute of Macroeconomic Analysis and Development and adopted by the Government in April 1995 and National Assembly in April 1996, covers only the development of telecommunications. In the Strategy for Increasing the Competitiveness Capabilities of the Slovene Industry adopted by the Government in November 1996, the informatisation of industry is mentioned briefly.

6.2 IS Application Areas

6.2.1 Government (National, Regional and Local)

The Government established the Government of the Republic of Slovenia Council for the use of information technology in state bodies and public institutions, as well as in other organisations performing public functions (O.G. RS, No. 56/96, 11/98) that has an advisory role. The body, responsible for the informatisation of state bodies is the Government Centre for Informatics. The Centre drafted the Strategy for Providing the State Bodies with an Information Infrastructure by the Year 2000, which was adopted by the Government on 1 February 1996.

6.2.2 Education

In 1994, the six-year Computer Literacy Development Programme (Ro) was launched on the national level. The funding for the Programme has been provided on the basis of the Law on Funds for the Development Programmes in Education and Training (O.G. RS, No.13/94). The main goals of the Ro are raising the level of informatisation and increasing the efficiency in schools with the emphasis on primary and secondary ones.

6.2.3 Research and Development

The Ministry of Science and Technology in accordance with the Regulations on Procedure and Measures for the Co-Funding of Programmes of Information Infrastructure Organisations (O.G. RS, No. 62/95) finances the Academic and Research Network of Slovenia and the Institute of Information Science. The Ministry also finances research and development projects in the field of Information Society.

6.2.4 Transport

The common sectorial policy has not been established. The telecommunications infrastructure of railways and motorways is built or modernised in accordance with the National Programme for the Development of National Railways Infrastructure (O.G. RS, No. 13/96), and the National Programme for the Construction of Motorways in the Republic of Slovenia (O.G. RS, No. 13/96).

6.2.5 Medicine

The basis for the informatisation of the healthcare sector will be set up by the National Programme of Medical Informatics being prepared by the Ministry of Health.

II. On-Going Developments

1. On-Going Changes in the Institutional Structures

Functions of the telecommunications regulatory authority are split between various governmental bodies. The Telecommunications Administration that performs the majority of regulatory authority functions does not meet all the criteria for an independent regulator. It is planned to set up an independent National Regulatory Authority. It will most likely be formed by the reorganisation and strengthening of the Telecommunications Administration.

The new law on telecommunications being drafted may propose the establishment of the National Telecommunications Council, which will have a consultative role in shaping the national telecommunications policy.

Some other institutional structures responsible for the implementation and supervision of Information Society issues discussed in the report are also planned to be strengthened.

2. On-Going Changes in the Regulatory Framework

2.1 Telecommunications Liberalisation

According to the Law on Telecommunications, Telekom Slovenije will have a monopoly on the public telecommunications network and voice telephony and telex until 31 December 2000. The Law is not specific about the liberalisation status after this date. It is assumed that a new law on telecommunications that is being drafted will regulate the liberalisation status from 1 January 2001. However, the most rigorous restrictions of the current Law on Telecommunications might be lifted even before 31 December 2000.

2.2 New Laws/Measures under Preparation

• The National Programme for the Development of Telecommunications was approved by the Government on 1 April 1999 and passed to the National Assembly. It is now in the proceedings of the Parliamentary Committee for Infrastructure and the Environment.
• The Ministry of Transport and Communications is drafting a new law on telecommunications. It should be approved by the Government by the end of 1999 and adopted by the National Assembly by the end of 2000.
• A new Law on Data Protection has been in the third reading in the National Assembly and should be adopted soon.
• A new Law on Mass Media was approved by the Government on 6 May 1999 and passed to the National Assembly for the first reading.
• A new Law on Electronic Commerce and Digital Signature has been drafted. It is expected to be approved by the Government soon and then passed to the National Assembly for the first reading.
• A draft of the National Consumer Protection Programme has been prepared and is expected to enter the governmental procedure in the middle of July 1999. It is expected to have been enacted by 30 June 2000.

2.3 Allocation of Resources (Frequencies, Numbering, Access Rights, Licensing…)

There are about ten secondary decrees or technical regulations in preparation, amongst others:

• Regulations on numbering in the Slovenian public telecommunication system,
• Regulations on granting of a concession for the use of radio frequency spectrum for the provision of ERMES paging services,
• Regulations on granting of a concession for the use of radio frequency spectrum for the provision of land mobile satellite services.