October
1999
Slovenia
Update Memo
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Slovenia Update Memo |
The following report outlines new developments in the past three months and the state of on-going developments.
1. General Telecommunications Policy
The National Programme for the Development of Telecommunications that should define the general telecommunications policy, was passed to the Parliamentary Committee for Infrastructure and the Environment for the second reading (Gazette of the National Assembly of the Republic of Slovenia (hereinafter Porocevalec DZ), No. 61/99, 4 August 1999). Due to a mistake in the document, the Government of the Republic of Slovenia later proposed an amendment. The Committee for Infrastructure and the Environment also proposed a couple of amendments to the National Assembly of the Republic of Slovenia. In one of them, the Committee proposed that funds obtained by the first phase of the privatisation of Telekom Slovenije d.d. should be used for the restitution of investments of local communities and individual investors in the public telecommunications infrastructure. The procedures should be regulated in detail by a separate law.
2. Regulatory Framework
2.1 Present General Legislation
During the last three months, a few laws were adopted that might indirectly influence the telecommunications market development. Also, an important decision was made by the Constitutional Court on the nonconformity of the Law on Telecommunications with the Constitution of the Republic of Slovenia.
The development of the telecommunication and information technology services market has been influenced by various barriers imposed on it, for example bureaucratic procedures for determining compliance of products with national regulations. A step toward the removal of these barriers was made by passing the Law on Technical Requirements for Products and Determining Compliance (O.G. RS, No. 59/99, 23 July 1999, effective since 7 August 1999).
Other laws adopted recently that might have an effect on the development of the telecommunications market are the following:
The Constitutional Court decided that Article 64 of the Law on Telecommunications does not conform to the Constitution of the Republic of Slovenia (O.G. RS, No. 59/99, 23 July 1999) as the legislator has not, by a separate law, regulated the restitution of investments of local communities and individual investors in public telecommunications infrastructure. The nonconformity with the Constitution should be abolished within a year of an announcement of the Constitutional Court’s decision.
By 1 April 1999, the Ministry of Transport and Communications prepared a draft of the Law on the Restitution of Investments of Local Communities and Individual Investors in the Public Telecommunications Infrastructure. The draft is under discussion between the coalition partners and has not been approved by the Government yet.
2.2 Key Legislative Measures
Key measures |
Date |
Telecommunication Networks and Equipment |
|
| Regulations
on numbering in the public telecommunications network (O.G. RS, No. 57/99) |
31 Jul 1999 |
Radiocommunications |
|
| Decree on the granting of a concession for using the radio frequency spectrum for NMT mobile telephony services (O.G. RS, No. 53/99) | 17 Jul 1999 |
| Decree on the granting of a concession for using the radio frequency spectrum for the provision of ERMES paging services (O.G. RS, No. 53/99) | 17 Jul 1999 |
Decisions of the Constitutional Court |
|
| Ascertainment
decision on the nonconformity of the Article 64 of the
Law on Telecommunications with the Constitution of the
Republic of Slovenia (O.G. RS, No. 59/99) |
23 Jul 1999 |
3. Issues
3.1 Tariffs Policies
So far, there has been little control over the tariffs of liberalised telecommunications services for which Telekom Slovenije d.d. has exclusive rights. Leased line tariffs have been particularly critical – the incumbent operator set them without any relevant and transparent cost analysis. The new Law on Prices Control gives the Government more power for monitoring and analysing prices, and preparing, proposing and setting price control measures as well as for their implementation by governmental bodies. According to executives of Internet service providers and businesses that heavily rely on telecommunications services, such price control measures should be implemented immediately. On the other hand, executives of Telekom Slovenije d.d. warn of possible negative effects of the governmental price policy.
3.2 Interconnection
A member of the Slovene Internet Service Providers Association (SISPA) has reported that the incumbent operator Telekom Slovenije d.d. has abused its monopoly market position and refused to implement a network interconnection. On the basis of the Law on Preventing the Restricting of Competition (O.G. RS, No. 56/99, effective since 14 July 1999), the Competition Protection Office on the request of the Internet service provider ABM informacijski inzeniring d.o.o. recently initiated proceedings of assessment of Telekom Slovenije’s abuse of its dominant position. Among other alleged abuses, Telekom Slovenije presumably refused to provide the network interconnection to the above mentioned service provider (O.G. RS, No. 76/99).
In cases of refusing a telecommunications network interconnection appeal procedures are slow. Executives of affected businesses complain that the regulator does not take a proactive approach to protect service providers and new entrants. They claim that the regulator protects the incumbent operator instead.
3.3 Allocation of Resources
The Regulations on numbering in the public telecommunications network (O.G. RS, No. 57/99, effective since 31 July 1999) have been adopted defining the numbering plan for telecommunications networks. In addition, they define the manner, procedures and conditions of allocating the numbering space to operators of telecommunications networks and services as well as users. Changes of area code numbers and some geographical areas losing their own area code numbers caused very emotional reactions in local communities. Therefore, resistance of locals in some areas might accompany the implementation of the new numbering scheme.
4. Freedom and Protection
4.1 Intellectual Property Rights
The Government of the Republic of Slovenia has passed a draft of the Law on the Ratification of the World Intellectual Property Organisation Agreement on Copyright to the National Assembly for the proceedings (Porocevalec DZ, No. 49/99, 30 June 1999).
4.2 Privacy, Data Protection, Consumer Protection
After a few years of the parliamentary proceedings, a new Law on Personal Data Protection was adopted (O.G. RS, No. 59/99, effective since 7 August 1999). It is based on 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) and amendments of 1998.
Slovenia has modern legislation and both the Law on Personal Data Protection and Law on Telecommunications provide for the efficient protection of privacy and personal data. Only a court may authorise actions infringing on these rights, where such actions are deemed necessary for the institution or continuance of criminal proceedings or for reasons of national security. The legislation is binding for both operators and those interested in information. In practice, however, there have been cases of law infringements. The last one was caused by the Ministry of Interior’s criminal investigators who obtained information of phone calls from the mobile operator Mobitel d.d. without authorisation.
On its session of 22 July 1999, the Government approved the draft of the National Consumer Protection Programme and passed it to the National Assembly for the first reading (Porocevalec DZ, No. 61/99, 4 August 1999). According to the draft of the National Programme, the Government is responsible for the consumer protection policy and its implementation. The National Programme defines the consumer protection policy up to the year 2004 and earmarks an annual amount of 1,1 million euros for its implementation, which is almost four times the amount spent last year. It also strengthens the promotion of the development of non-governmental consumer organisations and earmarks 112 thousand euros annually for this purpose.
4.3 Electronic Protection, Legal Protection and Security (Encryption, Electronic Commerce)
A draft of the Law on Electronic Commerce and Digital Signature is still waiting for approval by the Government. According to some sources, it should be approved by the Government by the end of 1999 and passed to the National Assembly for adoption.
4.4 Freedom of Expression and Information
A draft of a new Law on Media (Porocevalec DZ, No. 35/99, 28 May 1999) that was approved by the Government on 6 May 1999 and passed to the National Assembly for the first reading was withheld. Meanwhile, a group of members of the National Assembly proposed a draft of a new Law on Public Media RTV Slovenia (Porocevalec DZ, No. 66/99, 16 September 1999) to the proceedings of the National Assembly.
5. Information Society Policies
5.1 Umbrella Policies
Slovenia does not have any umbrella policy on Information Society. Still, the development of the Information Society may be, in a limited extent, promoted through the implementation of particular laws. Two laws have been adopted or drafted recently that might qualify in this category. The first one is the Law on the Promotion of Harmonised Regional Development (O.G. RS, No. 60/99, effective since 13 August 1999) and the second one is a draft of the Law on Supporting Businesses in the Development of New Technologies and Establishment and Operation of Their R&D Units During the Years 2000 – 2003 (Porocevalec DZ, No. 63/99, 9 August 1999).
5.2 Government
The Government Centre for Informatics has developed new information technology support for the Government and National Assembly’s legislation proceedings.
5.3 Research and Development
The Government at its session on 29 July 1999 approved a draft of the Law on Supporting Businesses in the Development of New Technologies and Establishment and Operation of Their R&D Units During the Years 2000 – 2003 and passed it to the National Assembly for quick proceedings. In accordance with the Law, 68 million euros should be earmarked in the state budget of which 13 million euros should be available in the next year. Slovenia’s technological lagging behind EU members is one of the major obstacles in its accession to the EU. By closing down R&D units in the private sector during the transition, Slovenia lost 70% of its development engineers due to lack of available engineering positions. Therefore, the law aims first of all at reviving R&D units in enterprises as well as at establishing joint R&D units like branch or regional technological centres. The Ministry of Science and Technology should co-ordinate development programmes between ministries.
II. On-Going Developments
1. On-Going Changes in the Institutional Structures
Telecommunications regulatory authority functions 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. There are plans to set up an independent National Regulatory Authority. It will most likely be formed by the reorganisation and strengthening of the Telecommunications Administration.
A new law on telecommunications that is currently being drafted may propose the establishment of the National Telecommunications Council, which will have a consultative role in shaping the national telecommunications policy.
There are also plans to strengthen some other institutional structures responsible for the implementation and supervision of Information Society issues discussed in the report.
2. On-Going Changes in the Regulatory Framework
2.1 Telecommunications Liberalisation
The Law on Telecommunications stipulates that Telekom Slovenije will have a monopoly on the public telecommunications network, 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
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