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January 2000

Regulatory Developments
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 has still not been adopted. Its proposal passed the first reading in the National Assembly on 30 June 1999. Considering remarks given by the National Assembly, the Government redrafted a proposal and sent it for the second reading together with its amendments (Gazette of the National Assembly of the Republic of Slovenia (hereinafter Porocevalec DZ), No. 61/99, 4 August 1999). Later, the Government replaced the proposal for the second reading by a new one that incorporated remarks given by the Secretariat for Legislation and Legal Affairs of the National Assembly and Commission for Local Self-Government and Regional Development of the National Council (Porocevalec DZ, No. 69/99, 30 September 1999; a corrigendum was published in No. 72/99, 11 October 1999)

2. Regulatory Framework

2.1 Present General Legislation

On 1 October, the Ministry of Transport and Communications made available on its homepage a draft of a new Law on Telecommunications and invited public comments by all parties concerned until 30 October. Individual comments were also published on the Internet while the position of the Ministry concerning individual comments was announced to be published by 31 December.

In Spring 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 has been discussed between the coalition partners for some time but has not been approved by the Government yet. Meanwhile, a member of the National Assembly Mr Roman Jakic proposed a Law on the Restitution of Investments of Local Communities and Individual Investors in the Public Telecommunication Infrastructure to the National Assembly for the first reading (Porocevalec DZ, No. 83/99, 1 December 1999).

2.2 Key Legislative Measures

Area

Key measures

Date
(effective since)

Mobile Telephony Decree on the granting of a concession for using the radio frequency spectrum at 1800 MHz for mobile telephony services (O.G. RS, No. 79/99)

15 Oct 1999

Radiocommunications Decree on changes and amendments of the decree on fees for the use of radio frequencies (O.G. RS, No. 92/99)

13 Nov 1999

Tariffs Decree on defining price ceilings of basic telecommunications services (O.G. RS, 102/99)

20 Dec 1999

Ordinance on changes and amendments of the ordinance on a tariff system for the provision of telecommunications services (O.G. RS, No. 102/99)

20 Dec 1999

2.3 Issues

2.3.1 Liberalisation

There has not been any progress towards the liberalisation of the telecommunications market. It should also be mentioned, that in its 1999 Regular Report on Slovenia’s Progress Towards Accession (October 1999), the Commission of the European Union stated that progress in the liberalisation of the markets for services and alternative infrastructures is still insufficient. It is essential for Slovenia to accelerate the liberalisation process and the pace of legislative alignment, and continue the implementation of a programme designed to help in the establishment of an independent national regulatory authority (NRA).

2.3.2 Tariffs Policies

At its session on 16 December 1999, the Government enacted two acts on telecommunications tariffs. With the Ordinance on changes and amendments of the ordinance on a tariff system for the provision of telecommunications services (O.G. RS, No. 102/99), the Government radically changed the voice telephony tariff system. It introduced one tariff group (instead of the previous three) and defined a 60-second pulse for the whole Slovene territory. This change resulted in an 80,6% tariff increase in local traffic, and 9,7% and 39,8% decrease in long distance national traffic for calls between exchanges of different node areas within the same network group and calls between the exchanges of different network groups, respectively. Tariffs for international calls decreased by about 12-20% as well. Upon the Government’s proposal, Telekom Slovenije d.d. reduced the installation charges by 56,6% and increased monthly subscription charges by 12,5%.

By adopting the Ordinance, the Government radically interfered in the telecommunications market without giving any advance notice to large telecommunications service users and businesses dependent on the public telecommunications network and services, e.g. Internet service providers (ISPs). According to representatives of the Slovene Internet Service Providers Association (SISPA), some ISPs may even suffer financial damage as a result of this governmental decision.

Control over the tariffs of liberalised telecommunications services for which Telekom Slovenije has exclusive rights is not appropriately regulated. Leased line tariffs are particularly critical as the incumbent operator set them without any relevant and transparent cost analysis. Following the dispute between the Ministry of Science and Technology and Ministry of Transport and Communications, the Government at its session on 22 July 1999 passed a resolution by which Telekom Slovenije was ordered to implement a cost based accounting system for all categories of leased lines and introduce cost based tariffs by the end of 1999. Telekom Slovenije has not met these obligations yet.

On request of the cable TV operator Slovenski kabel d.o.o., the Competition Protection Office initiated proceedings assessing Telekom Slovenije’s abuse of its dominant position by imposing high tariffs for leasing telecommunications cable ducts and optical fibres. The Competition Protection Office published an invitation to other physical and legal persons having a legal interest in participating in the proceedings (O.G. RS, No. 80/99, 1 October 1999).

2.3.3 Interconnection

After six months, the case of the Internet service provider ABM informacijski inzeniring d.o.o., described in a previous report update, is still open. Slovene institutions responsible for the market supervision and competition protection (e.g. Competition Protection Office) seem to be inefficient in dealing with telecommunications issues. Recently, there have been new cases reported of Telekom Slovenije presumably refusing to provide the network interconnection to SISPA members under the same conditions.

2.3.4 Allocation of Resources

The Government adopted a Decree on changes and amendments to the decree on fees for the use of radio frequencies (O.G. RS, No. 92/99) which reduces fees for radio stations operating temporarily with a provisional radio license.

While the processing of applications for the acquisition of new radio frequencies for radio broadcasting, handed over by the Telecommunications Administration, the Broadcasting Council ascertained that the procedure of the Telecommunications Administration for preparing public invitations for tenders for radio frequencies is not appropriate as there are no clear criteria for the inclusion of frequencies into the public invitation for tenders.

2.3.5 Audio-visual

Slovene audio-visual legislation is still not in line with the acquis. A new Law on Media and draft laws aimed at amending the Law on RTV Slovenia have still to be adopted. During the last three months, there was quite an animated debate on the legislation related to radio and television.

Following the Constitutional Court’s decision of 23 September 1998 (O.G.RS, No 73/99, 30 October 1998), the Law on Changes and Amendments of the Law on RTV Slovenia was adopted (O.G.RS, No. 88/99, 29 October 1999). The Law defined a new method of collecting subscription fees for RTV Slovenia. Soon after its adoption, several written requests were submitted to the Constitutional Court for the assessment of its constitutionality and legality (O.G. RS, No. 107/99, 17 October 1999). The Constitutional Court partly withheld the implementation of the Law on RTV Slovenia until a final decision has been reached.

After the ratification of the European Convention on Trans-frontier Television in June 1999, a draft Law on Assuring Visibility and Audibility of Programmes of RTV Slovenia and Local Non-Commercial Programmes in Cross-Border Areas with the Slovene National Minority (Porocevalec DZ, No. 72/99, 11 October 1999) was passed to the National Assembly on 11 July 1999 by a group of members of the National Assembly. The proceedings have been withheld.

In order to bring the Law on RTV Slovenia in line with the acquis, the Government at its session on 28 October 1999 adopted a new draft Law on Changes and Amendments of the Law on RTV Slovenia and passed it to the National Assembly for proceedings (first reading).

3. Freedom and Protection

3.1 Intellectual Property Rights, Copyright and Related Rights

The National Assembly ratified two WIPO treaties adopted by the WIPO Diplomatic Conference on 20 December 1996:

In November, a round table on audio and audio-visual piracy in Slovenia took place. The participants emphasised that the scope for this type of piracy significantly increased during the last few years. One of the main reasons is certainly the fast development and diffusion of the Internet. Although Slovenia has established a firm legal basis for the protection of copyright and related rights and defined an institutional framework for its implementation, the actual judicial protection is insufficient. In audio-visual digital environment, the scope for piracy will evidently increase, with negative consequences for operators and programme providers, and therefore the introduction and enforcement of efficient anti-piracy legislation will become increasingly necessary.

4. Information Society Policies

4.1 Umbrella Policies

At its session on 14 October, the Government adopted a State Budget Memorandum for the year 2000 as a fundamental document for the establishment of a public finances, social-cultural and economic-policy framework that would ensure quality of life to citizens and strengthen the national economic position. Targets and directions of economic policy for the year 2000 are based on current assessment of further development possibilities as well as on long-term strategic directions defined by the Strategy for the Economic Development of Slovenia, individual sector development policies, and the National Programme for the Adoption of the Acquis.

Neither the Information Society nor electronic commerce were explicitly put into the focus of national economic policy or national budget priorities for 2000. The long-term target for economic growth shall be reached through promoting the development based on saving, new investments, proper use and further development of human resources, technology development, quality and innovation culture. Apart from ensuring economic efficiency, the economic policy will be based on sustainable economic development focusing on human and environmental dimensions. Based on long-term development priorities, the following budget priorities were set for 2000: technology development, active employment policy, agriculture, regional development and strengthened defence ability.

4.2 IS Application Areas

4.2.1 Education

A six-year Computer Literacy Development Programme (Ro) launched in 1994 by the Ministry of Education and Sport was concluded at the end of 1999. It aimed at fostering the development of computer literacy and usage of information technology in education, particularly in primary and secondary schools, and increasing the efficiency in schools. Based on the success and experience gained by Ro, the Ministry of Education and Sport will, through the National Education Institute, continue the computer literacy development programme.

4.2.2 Research and Development

The fact that Slovenia is lagging behind EU member states in the technological area is one of the major obstacles to its accession to the EU. With the aim of reviving R&D units in enterprises as well as establishing joint R&D units like branch or regional technological centres, the National Assembly adopted 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 (O.G. RS, No. 99/99, 9 October 1999). For the period of four years, the Law earmarks 68 million euros intended for the implementation of the Programme for Supporting Businesses in the Development of New Technologies and Establishment and Operation of Their R&D Units During the Years 2000 – 2003. Of the total budget, 13 million euros shall be available in the year 2000. In accordance with the Law, an inter-ministerial co-ordination body shall be established to develop the Programme and supervise its implementation. The Programme shall cover the following activities:

It is expected that the Programme will pay special attention to Information Society technologies.

5. On-Going Changes in the Institutional Structures

One of the open issues surrounding the development of the Slovene telecommunications market is the establishment of an independent NRA. The urgent need for its establishment was emphasised by the Commission of the European Union in its 1999 Regular Report on Slovenia’s Progress Towards Accession (October 1999). In fact, the establishment of an independent NRA and safeguarding a strong competitive structure should be a top priority in developing a market environment which will provide Slovene users with a greater variety of telecommunications services, of better quality and at a lower cost. This issue was also on the agenda of a working group meeting on the establishment of an NRA for telecommunications in Slovenia, held in Ljubljana on 18 October 1999. The meeting was organised by the Information Society DG, European Commission, in co-operation with the Slovene Ministry of Transport and Communications and co-financed by TAIEX. The draft Law on Telecommunications was discussed from an NRA point of view as it should solve open issues related to the establishment of an independent NRA and other institutional changes (e.g. establishment of a Telecommunications Council). The participants concluded that the draft Law does not provide a proper framework for an independent NRA and advised, among others, to review the proposed articles. A more detailed report of the meeting is also available on-line.

6. On-Going Changes in the Regulatory Framework

6.1 Telecommunications Liberalisation

The draft Law on Telecommunications on which public was invited to comment aims to provide a proper legal framework ensuring the liberalisation of the telecommunications market. The National Assembly should adopt the law by the end of the year 2000.

6.2 New Laws/Measures under Preparation

A draft of a new Law on Databases in the Healthcare Sector is in the proceedings (second reading) of the National Assembly.


Please note that this report has been prepared under the sole responsibility of the
ESIS II contractors.
It does not necessarily reflect the views of the Commission, nor does the Commission accept responsibility for the accuracy or completeness of information contained herein.
The ESIS Team of contractors welcomes any additional information or corrections.