April 2000

Slovenia Master Report

I. General Background

1 General Telecommunications Policy

The general telecommunications policy is defined by the National Programme for the Development of Telecommunications (Official Gazette (OG) of the Republic of Slovenia (RS), No. 23/00, 15 March 2000), which was adopted by the National Assembly of the Republic of Slovenia at its regular session on 29 February 2000, submitted by the Government of the Republic of Slovenia for its third reading. The legal basis for the National Programme is set by the Law on Telecommunications, (O.G. RS, No. 35/97, 13 June 1997).

The National Programme defines the long-term development of the telecommunications networks and services, investments into the public telecommunications network, use of economically justifiable technologies for covering the rural and less developed regions with public telecommunications services as well as the adjustment of telecommunications development policy to the market situation.

The National Programme sets the following goals of the telecommunications policy:

• achieving stable telecommunications development in line with the expectations of users,
• provision of universal telecommunications services,
• protection of users’ interests,
• stimulating efficiency and competitiveness of operators,
• ensuring the efficient use of resources,
• stimulating development, new services, research and innovation, and
• protecting the country’s national security interests.

It is envisaged that these goals will be achieved through various sub-goals.

In order to stimulate the development of the telecommunications infrastructure and services, a competitive and dynamic market shall be established and private investments stimulated. Thus, the telecommunications market shall be further liberalised as well as a transparent and more predictable legal and regulatory framework set up. The later shall be achieved by implementing the general telecommunications policy through the new law on telecommunications and related secondary legislation. In order to assure proper regulatory activities, an independent National Regulatory Authority (NRA) shall be established.

Other important areas addressed by the National Programme are: the rebalancing of telecommunications tariffs, privatisation of the incumbent operator (Telekom Slovenije d.d.) and acceleration of infrastructure development. Regarding the latter, it is planned that the European Union average penetration rate in both fixed and mobile lines shall have been reached by 2005. Moreover, according to the National Programme, Telekom Slovenije should meet all potential market demand for connections to the fixed telecommunications network, by providing 1 million telephone lines by 2005 and 1,3 million by 2015. The national Programme also defines future technologies to be deployed in telecommunications networks, e.g. ATM. An ATM based network of Telekom Slovenije should meet all needs of operators and users. Some experts warn, however, that information and telecommunications technologies are developing very fast and that some of the long-term predictions in the National Programme, especially those relating to technology, can be viewed as rather absurd.

2 Institutional Structures in Charge of Regulatory Issues

The overview of the institutional structure in charge of the telecommunications regulatory issues is based on the present legislative framework, however some changes are envisaged, for example those set forth in the new telecommunications law that is currently being drafted.

2.1 Governmental Bodies in Charge of Telecommunications 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 role of the Government in the telecommunications field is:

• it issues regulations defined by the Law on Telecommunications (Article 62);
• it decides upon the selection of concessionaires and grants concessions (the mutual relations between the Government and concessionaires are regulated by a contract);
• it determines the allocation of radio frequency bands in the Republic of Slovenia ;
• it is entitled to restrict the share of foreign legal or physical persons in the basic capital of a concessionaire 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. The Minister responsible for telecommunications may also by decree order voice-telephony service operators to establish a network interconnection with another operator that applied for the interconnection, if no contract has been concluded.

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 the Ministry of Culture more power 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 membership 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 state authorities, RTV organisations and cable operators information and materials it needs for its work.

The Council performs the following functions:

• it safeguards the freedom of communication, programme independence and openness and plurality of RTV programmes,
• it supervises the activities of RTV organisations and cable operators in the Republic of Slovenia,
• it monitors the compliance of local non-commercial and commercial RTV programmes with the law and international contracts to which Slovenia has commitments,
• it determines more detailed content measures for the definition of non-commercial RTV programmes,
• it proposes to the competent authorities the allocation and/or revocation of a broadcasting channel,
• it examines the principles of allocation of frequency scales for radio-diffusion and broadcasting channels,
• it submits an annual report or evaluation of the situation in the field of broadcasting, and proposals for the improvement of this situation for the National Assembly,
• it performs other tasks determined by the law and the founding statute.

In the case of radio licences for broadcasting transmitters, the Telecommunications Administration of the Republic of Slovenia, which is responsible for granting radio licences, may issue a licence (after a public invitation for tender) only upon the proposal of the Broadcasting Council.

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 of 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 supervising 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 Competition Protection Office 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).

The Competition Protection Office issues final decisions against which neither an administrative procedure appeal nor the introduction of an administrative dispute are possible; the protection of rights is only possible in the form of a civil procedure before the court. However, the Competition Protection Office has had a minor role in competition protection in the telecommunications market so far, although it has received several initiatives to investigate the abuse of the dominant or monopoly position. It takes a long time to initiate the assessment procedures and once decisions are made the Competition Protection Office has no executive power. Since the judicial system is inefficient the actual protection of competition is week.

2.4 Consultative Councils

There is no consultative council at present. The new telecommunications law being drafted proposes 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 telecommunications equipment was 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. 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 by three laws. In 1994, the Rules on Using Telecommunications Regulations (O.G. RS, No. 66/94) were adopted, defining which, out of about 500 regulations issued in former Yugoslavia were still valid and which were not (84 regulations remained in use). The number of regulations was further reduced with the Law on Telecommunications of 1997.

4.2 Present General Legislation

The general legislative framework for telecommunications is based on the Law on Telecommunications (O.G. RS, No. 35/97, 13 June 1997) 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 have issued subsidiary regulations. This means that the Law should have been fully implemented by the end of June 1999.

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

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

The Law on Telecommunications also set the basis for the restitution of investments of local communities and individual investors in public telecommunications infrastructure. According to the Law, this issue should be regulated by a separate law. By 1 April 1999, the Ministry of Transport and Communications had prepared a draft of the Law on the Restitution of Investments of Local Communities and Individual Investors in the Public Telecommunications Infrastructure. Since then, the draft has been under discussion between the coalition partners and has not been approved by the Government yet. As the legislator had not fulfilled the obligation set by the Law on Telecommunications (Article 64) in time, the Constitutional Court decided that Article 64 did not conform to the Constitution of the Republic of Slovenia (O.G. RS, No. 59/99, 23 July 1999). The legislator should abolish the nonconformity with the Constitution within a year of the announcement of the Constitutional Court’s decision. Meanwhile, a member of the National Assembly Mr Roman Jakic submitted a Law on the Restitution of Investments of Local Communities and Individual Investors in the Public Telecommunications Infrastructure to the National Assembly for the first reading (Porocevalec DZ, No. 83/99, 1 December 1999).

Apart from the Law on Telecommunications, the development of the telecommunications 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 affect certain aspects of the telecommunications market development are the following:

• Law on Accreditation (O.G. RS, No. 59/99, 23 June 1999, effective since 7 August 1999),
• Law on Standardisation (O.G. RS, No. 59/99, 23 June 1999, effective since 7 August 1999),
• Law on Prices Control (O.G. RS, No. 63/99, 6 August 1999, effective since 21 August 1999).

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 broadband and multimedia telecommunications.

Other services are liberalised, however the inconsistent Law on Telecommunications and various administrative barriers are delaying actual liberalisation. An open public debate has also been going on about the liberalisation status of particular telecommunications services. Despite Telekom Slovenije having exclusive rights on the infrastructure for data communications and global broadband and multimedia communications (Article 24 and 64 of the Law on Telecommunications), a number of alternative infrastructure providers have been granted a license for the provision of liberalised telecommunications services.

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. In order to improve the market conditions, 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).

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.

The Licensing Regulations require, for example, that the construction of telecommunications networks and the equipment used comply with the Law on Constructing of Buildings (O.G. SRS, No. 34/84; later amended several times). The procedure however, is complicated, time consuming and costly. It represents an administrative barrier for the provision of otherwise liberalised services as service providers need to go through the whole procedure even if they install simple equipment such as a computer or few modems into an office. Only temporary licenses have been granted by the Telecommunications Administration to those Internet service providers that have not gone through the complicated procedure of compliance with the building construction regulations.

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 users in the same situation. The principles for setting tariffs and tariffs’ ratios 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 the national telecommunications operator. There was no need for tariffs’ cost orientation and national tariffs were also subsidised with the international ones. Moreover, with new technologies the costs decreased with the tariffs staying mainly unchanged. As a result, there was a great discrepancy with actual costs and the tariffs in more open telecommunications markets. The installation charges were high, while domestic PSTN tariffs, both business and residential, were amongst the lowest in Europe. On the other hand, international PSTN and leased lines (both national and international) tariffs were amongst the most expensive in Europe.

In order to rebalance voice telephony tariffs and align them with costs, the Government at its session on 16 December 1999 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%.

According to representatives of the Slovene Internet Service Providers Association (SISPA) and Slovene Information Technology Association (SITA), current tariffs are particularly critical for the competition in the telecommunications sector. Especially high tariffs of leased lines represent a barrier to the establishment of digital economy in Slovenia as most of the businesses access the Internet via modem connections.

So far, there has been little control over the tariffs of liberalised telecommunications services for which the historical operator has exclusive rights. There have been several written requests submitted by various businesses and organisations to the Competition Protection Office, Ministry of Transport and Communications and Government to asses the abuse of the historic operator’s dominant position by imposing high tariffs (e.g. interconnection, leasing of lines, telecommunications cable ducts and optical fibres). 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. The analysis of leased lines tariffs and comparison with tariffs in the EU have been prepared, but has not been approved by the Government yet. By issuing 11 licences for the provision of leased lines, the competition is foreseen by the entrance of new providers to the leased lines market which may consequently bring down the tariffs of leased lines, especially long-distance ones.

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.

Recently, there have been several cases reported of the historic operator presumably refusing to provide network interconnection to Internet service providers under the same conditions. Some of the cases have been submitted to the Competition Protection Office and Ministry of Transport and Communications.

In one of the most recent cases involving the refusal of interconnection, the Ministry of Transport and Communications decided that the usage of the public telephone network for research and educational purposes should be more expensive than for commercial use. In the ruling of 6 January 2000, the Ministry rejected the request by the Academic and Research Network of Slovenia (ARNES) to conclude a contract on the technical and commercial conditions for access to Internet service providers through the call number 0889. The situation is now rather absurd. Commercial users in Slovenia currently have the possibility of using the public telephone network at the price of between SIT 2.02 and SIT 2.5/minute for access provided by commercial Internet service providers, while teachers, professors, pupils and students are forced to pay SIT 4.11/minute for usage of the telephone network for the access to the ARNES educational and research network.

4.3.7 Allocation of Resources

In 1999, the Government adopted the Regulations on numbering in the public telecommunications network (O.G. RS, No. 57/99, effective since 31 July 1999) that define the national 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. The numbering plan envisages the reduction in the number of area code numbers from present 12 to 7. The new numbering scheme will be implemented by 1 April 2000 and about 95% of subscriber numbers will be changed. Both new and old numbers will be operational in parallel until November 2000. The introduction of new numbering scheme will be completed in 2001. The cost of the project is estimated at 25 million euros.

4.3.8 Audio-visual

Slovene audio-visual legislation is still not in line with the Acquis Communautaire. A new Law on Media and draft laws aimed at amending the Law on RTV Slovenia are still to be adopted.

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 had partly withheld the implementation of the Law on RTV Slovenia until final decision was reached.

After the ratification of the European Convention on Transfrontier 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 submitted 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 Communautaire, 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 the first reading. The proceedings have been withheld.

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.

5.1.1 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.

In 1999, the National Assembly ratified two WIPO treaties adopted by the WIPO Diplomatic Conference on 20 December 1996:

• the WIPO Performances and Phonograms Treaty (O.G. RS-MP, No. 25/99, 15 October 1999), and
• the WIPO Copyright Treaty (O.G. RS-MP, No. 25/99, 15 October 1999).

5.1.2 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 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.

5.2 Privacy, Data Protection, Consumer Protection

5.2.1 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).

5.2.2 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 also ratified all important international conventions on data protection.

After a few years of parliamentary proceedings, a new Law on Personal Data Protection was adopted (O.G. RS, No. 59/99, effective since 7 August 1999). The Law 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. It replaced the preceding Law from 1990 and later amended several times (O.G. RS, No. 8/90, 38/90, 10/91, 19/91, 17/91, 13/93, 66/93).

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).

5.2.3 Consumer Protection

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 for example: the Law on Protection of Competition, the Law on Obligations, the Law on Promotion of Tourism (O.G. RS, No. 57/98), the Law on General Safety of Products (O.G. RS, No. 23/99), etc.

Responsibility for the implementation of the Law on Consumer Protection is 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 representatives of the relevant interested administrative bodies, consumer organisations, business chambers, 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.

At its session on 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 shall be 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.

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. There are several consumer protection organisations, e.g. Slovene Consumers’ Association.

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

The legislation regarding 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 yet been regulated by a special law. However, the Law on Personal Data Protection 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 electronic commerce has not yet been established. A step forward has been made by the Government Centre for Informatics which drafted a Law on Electronic Commerce and Electronic Signature. The Law was approved by the Government on 24 February 2000 and submitted for adoption to the National Assembly (quick proceedings) (Porocevalec DZ, 15/00, 14 March 2000). It is based on the Directive 99/93/EC of the European Parliament and of the Council of 13 December 1999 on a Community Framework for Electronic Signatures.

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 Media was approved by the Government on 6 May 1999 and submitted for its first reading to the National Assembly (Porocevalec DZ, No. 35/99, 28 May 1999). The proceedings have been withheld.

See also the Section on the audio-visual regulatory framework.

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 (IMAD) 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. In the Autumn of 1999, the IMAD started working on a new Strategy for the Economic Development of Slovenia.

On 14 October 1999, 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 assessments 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 National Programme for the Adoption of the Acquis Communautaire.

Neither Information Society nor electronic commerce were explicitly put into the focus of national economic policy nor national budget priorities for 2000. The long-term target 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.

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. At the moment, the Centre is preparing a new strategy for the period 2000–2003.

6.2.2 Education

In 1994, the Ministry of Education and Sport launched a six-year Computer Literacy Development Programme (Ro) which was concluded in 1999. The funding for the Programme was provided on the basis of the Law on Funds for Development Programmes in Education and Training (O.G. RS, No.13/94). The main goals of the Ro were 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.

6.2.3 Research and Development

The Ministry of Science and Technology in accordance with the Regulations on the 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.

Slovenia’s lagging behind EU member states in the technological area 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 period, Slovenia lost around 70% of its development engineers due to lack of available engineering positions. 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 a period of four years, the Law earmarked 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 should be available in the year 2000. In accordance with the Law, an inter-ministerial co-ordination body was established that would elaborate the Programme. The body should also supervise its implementation. The Programme should cover the following activities:

• incentives to businesses for establishment and operation of their own R&D units,
• incentives to regions and industries to establish joint R&D units, especially technology centres and parks,
• co-ordination of incentives as well as reconciliation of existing instruments of individual funds and consultative networks with Programme goals,
• incentives to technological development of businesses for disabled persons.

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

6.2.4 Transport

A common sector 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 shall be set up by the National Programme of Medical Informatics being co-ordinated by the Ministry of Health. The Government at its session on 4 August 1999 approved the agreement between the Ministry of Health, Ministry of Finance and Health Insurance Institute of Slovenia to implement the project of healthcare sector reform and healthcare information system modernisation. The main goal of the modernisation is to provide for adequate information collecting and its accessibility in a way that would enable a reform of the healthcare sector organisation and management.

II. On-Going Developments

1 On-Going Changes in the Institutional Structures

There are several ministries and governmental departments or agencies responsible for the Information Society. At the moment there is no co-ordinating body. According to the National Programme for the Adoption of the Acquis Communautaire in the field of the Information Society, the Government shall establish an information society project office within the Ministry of Science and Technology with the main goal of disseminating information on Information Society projects both at a national as well as international level. The Programme also envisages the establishment of a national Information Society Forum.

In the field of telecommunications, 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. Therefore, the establishment of an independent NRA remains one of the open issues of Slovene telecommunications market development. The urgent need for its establishment was emphasised again 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 relating to the establishment of an independent NRA (it will most likely be formed by the reorganisation and strengthening of the Telecommunications Administration) 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.

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. A new telecommunications law shall regulate the liberalisation status after 1 January 2001. The National Assembly shall adopt the new law in 2000.

2.2 New Laws/Measures under Preparation

• Law on Telecommunications; It was drafted by the Ministry of Transport and Communications. On 1 October, the draft law was available on the Ministry’s homepage and public comments by all parties concerned invited until 30 October. The third version of the draft law of 22 December 1999 is available on-line. The Government has not finalised the draft law yet. Meanwhile, on 10 February 2000, a group of members of the National Assembly submitted a Law on Telecommunications (similar to the governmental one) to the National Assembly (Porocevalec DZ, No. 10/00, 18 February 2000) for the quick proceedings. It was withheld as there was another law covering the same area in the proceedings, i.e. a Law on Changes and amendments of the Law on Telecommunications (submitted by a group of members of the National Assembly on 14 October 1999).
• Law on the Restitution of Investments of Local Communities and Individual Investors in Public Telecommunications Infrastructure; it was submitted to the National Assembly on 11 November 1999 for the first reading by a member of the National Assembly, Mr Roman Jakic.
• Law on Electronic Commerce and Electronic Signature; it was prepared by the Government Centre for Informatics and approved by the Government on 24 February 2000. The Law was submitted for adoption to the National Assembly (quick proceedings) (Porocevalec DZ, 15/00, 14 March 2000).
• Law on Mass Media; it was approved by the Government on 6 May 1999 and submitted for its first reading to the National Assembly (Porocevalec DZ, No. 35/99, 28 May 1999). The proceedings have been withheld.
• Law on Changes and amendments of the Law on RTV Slovenia; it was adopted by the Government on 28 October 1999 and is in the proceedings (first reading) of the National Assembly.
• 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); it was passed to the National Assembly on 11 July 1999 by a group of members of the Assembly. The proceedings have been withheld.
• Law on Databases in the Healthcare Sector; it is in the proceedings (second reading) of the National Assembly (Porocevalec DZ, No. 32/99, 18 May 1999).
• National Consumer Protection Programme; it was approved by the Government on 22 July 1999 and is now in the proceedings (first reading) of the National Assembly.