January 2001

Slovakia Master Report

2.1. Historical overview and general legislation

Currently, the Act on Telecommunications regulates terms and conditions for the establishment and operation of telecommunications networks and telecommunications equipment. It regulates terms and conditions for the provision of telecommunications services; state regulation of telecommunications activities and prices; rights and duties of telecommunications enterprises and users of public telecommunications services; protection of public telecommunications networks and telecommunications equipment, rights and obligations with respect to third party real estate, state supervision, sanctions and powers of state telecommunications authorities.

Since 1 July 2000 when the new Act on Telecommunications came into force, the Telecommunication Office of the Slovak Republic has been established as an independent regulatory body and has been authorize to regulate the telecommunications sector.

The Telecommunication Office existed before the new Act on Telecommunications with the following functions:

• regulation of networks and services outside the UTN,
• management of frequency spectrum, type approval process in telecommunications,
• protection of rights of users and operators of telecommunication networks and services,
• sanction activities,
• managing the Regional Telecommunication Offices etc.

Other regulatory functions were formerly performed by the Ministry of Transport, Posts and Telecommunications (technical regulation, licensing, international tariffs, etc.) and by the Ministry of Finance of the SR (domestic tariffs).

2.2 Umbrella Policies and national IS strategy.

At present there is no official government document orientated towards Information Society policy in Slovakia. Specific sectors are trying to implement ideas on Information Society policies in the relevant sectors.

The State Telecommunication Policy for the period 2000 - 2002 (Government Resolution No. 440/2000), defines a strategy of development of telecommunications particularly in the area of public telephone service, price policy and regulation, satellite communications, mobile and personal communications, interconnection, leased line services, utilization of frequency spectrum, development of land analogue and digital radio and TV broadcasting, numbering of telecommunication networks and telecommunication services, Information Society and international co-operation.

The scope of the State Telecommunication Policy is to establish uniform and transparent conditions for the development of the telecommunication market in the Slovak Republic. Its main intention is to harmonize the Slovak legislation with EU legislation till full liberalization of telecommunication market (31 December 2002).

The development of telecommunications is characterized by the following factors:

• commercialisation, which means an introduction of market arrangements in the management of telecommunication companies and the abandoning of bureaucratic forms of company management,
• privatisation, which means an increased participation of the private sector in the ownership and management of telecommunications companies,
• liberalisation, which allows free access to the market while complying with legal requirements as well as selection of a provider of the relevant telecommunication service and
• competition, which improves quality and availability of services, increasing the number of new services and decreasing prices.

2.2.1 National IS strategy

The Ministry of Education, together with the Government Office are responsible for many of the main Information Society issues. At present, there is no official government document orientated towards a national IS strategy. Currently, the Ministry of Education is obligated to submit such a document (it was expected to be presented in June 2000 but was postponed for the beginning of 2001) on principles and planning procedures of complex documents for IS policy, strategies and action plans. This draft document is in the final stages of completion.

In the framework of Slovakia’s accession into the EU, several sector documents have been prepared on topics concerning the implementation of IS policy in Slovakia. Information and communication technologies (ICT) and Internet are the driving forces in the creation of a Global Information Society. In Slovakia, the telecommunications sector during 1996 - 1998 played an important role in supporting IS policy. A high quality and widely accessible telecommunications infrastructure is an inevitable technical condition of Internet and e-commerce development.

The intention of the State telecommunication policy is to create the preconditions for the rapid development of Information Society and the fulfillment of the Slovak Republic's obligations in telecommunications, which arose from The Association Agreement between EU and Slovakia. In this context, Negotiation chapter 19 (Telecommunications and Information Technologies) includes the improved priorities with regard to the requirements of the EU for accession countries in the screening process. These requirements are:

• preparation of National Strategy on Information Strategy,
• implementation projects of the Information Society Action Plan,
• quality improvement of infrastructure for communication systems,
• accelerating of digital technology implementation in all sectors,
• internet access and inexpensive internet prices,
• importance of role for science, research, education and
• professional training and legislative framework for e-commerce.

2.3 IS Application Areas.

In the EU, Information Society issues are regulated primarily by recommendations, declarations and resolutions concerning areas. Information and Communication Technologies and the Internet, play a significant role and are the main moving forces in the process of establishing the global information society (GIS). In this respect, Internet is the main driving force in the eEurope (electronic Europe) initiative.

The procedure of establishing GIS in Slovakia will be based on the Development Concept of Information Society in the New Millennium, which will also address the issue of implementation of the topics of the EU Action Plan and the eEurope initiative (with a view to economic possibilities and suitability) in the situation of the Slovak Republic. It will be necessary to establish institutional and competency coverage of the GIS issue in Slovakia, joining institutions and international structures, programs and co-operation with the EU, but also raising awareness, so that the terms informatics and information society are not misinterpreted.

Slovakia will need to focus particularly on the following priorities:

• Establishing the quality of communication systems infrastructure – development of a regulatory and legal framework, which will provide that the communication networks are capable of mutual collaboration and operation as a single network with interconnection to similar networks of the EU states including the respective services and applications.
• Speeding up the introduction of digital technologies in all sectors of the national economy.
• Establishing prerequisites for inexpensive access to the Internet with the aim of maximum availability.
• Support to education in the field of exploiting digital technologies, support to multimedia applications like distance learning, and teleworking, etc.
• For the development of e-commerce, establish suitable legislative conditions by the adoption of the act on electronic signature and on electronic commerce.

Funding of the global information society will depend particularly on the private sector. The general public as well as operators of public telecommunication networks and providers of public telecommunication services must be aware of new opportunities that will bring the global information society interconnected with the communication networks.

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

The process of Information Society activities in the Slovak Republic is presently determined by following facts:

There is a non-sufficient co-ordination on government level for Information Society.

• several ministries have begun supporting participation of the Slovak Republic in pilot projects of the Action Plan, adopted at the 2^nd Forum of EU and Central and Eastern European countries (CEEC) on the Information Society.
• the draft of the document "Implementation Strategy of the Information Society in the Slovak Republic" has been prepared for inter-ministerial discussion in 1997, but was never approved.
• Ministry of Transport, Posts and Telecommunication in 1997 started implementing the problems of the Information Society to the telecommunication policy of the Slovak Republic.

However, since 1995 the Slovak Republic has been involved on a national and international level in IS activities.

In 1993, after the Slovak Government decision, the GOVNET project (the state administration data network) was introduced and continues to be implemented. At present, the majority of the central state administration bodies and other very important organizations are connected to GOVNET. The Government Office manages this project. Future activities within this project are to also connect regional and local state administration offices in all regions within Slovakia, and to start preparing the creation of important information databases and "local terminal centers for citizens" by using ICT applications for the intention to improve communication and information distribution systems between the government and citizens. There also another intention to interconnect local government information networks.

In March 1996, the Ministry of Transport, Post and Telecommunications of the Slovak Republic in co-operation with EC, organized an international panel conference of Central and Eastern European Countries and EU member states on the topic of "Legislative and Institutional Framework of the Information Society".

Telecommunications Project No. 2 (Investment Plan for 1996 - 2000 of Slovak Telecom's Telecommunication Infrastructure) is the fundamental development document for Slovak Telecom. It was prepared during 1994-1995 and deals with telecom infrastructure development for the period of 1996-2000. The goal of this project is to reach, in the year 2000, a comparable level of telecommunication services with EU countries. Total investment requirements are estimated at upwards of $ 122 million.

The Slovak Government during the 1995-2000 period approved several important Resolutions related to Information Society activities; the most important are the Resolution No. 981/1995 on the State Telecommunication Policy for the 1996-2000 period, the Resolution No. 807/1996 on results of 2^nd EU/CEEC Ministerial Forum on Information Society, the Resolution No. 558/1999 amending responsibility for preparation of strategy on Information Society Policy and Resolution No. 440/2000 on new State Telecommunication Policy for the 2000-2002 period.

A three years project "Provision of Telecommunication infrastructure for the transition to multimedia services of Information Society" financed from the Ministry of Transport, Posts and Telecommunications budget and realized by the Research Institute of Posts and Telecommunications (VUS) has started in 1998. One of the major tasks of the project is the creation of conditions for establishment of "ISPO SLOVAKIA" office. The role would be establishing a national ISPO (Information Society Promotion Office) Slovakia – Slovakia’s partner vis-a-vis ISPO EU and stimulate the general public and business sector by establishing a suitable environment, including a further development of the telecommunication market liberalization to support availability of cheaper telecommunication service in higher quality.

Since 1999, the Ministry of Education started to manage a project aiming at connecting primary and secondary schools to the Internet (INFOVEK Project). Currently, 300 selected schools are connected to the Internet. It is intended that by 2001, an additional 200 schools will be connected and by 2003 to have all primary and secondary schools connected to the Internet.

2.5 Telecommunications and Internet.

2.5.1 Telecommunications.

Slovakia is upgrading its telecommunications system. At the moment, the market in the Slovak Republic, is open, free for investment and competitive, except for the basic public telephone service in the fixed telecommunication network and operation of the public telephone network, where Slovak Telecom has still exclusive right to provide that service guaranteed until 31 December 2002.

2.5.2 Licensing

The basic principles, conditions and procedures for awarding of licenses are stipulated in the Telecommunications Act. The fundamental document on which the telecommunication policy is based is the Directive 97/13/ES on a common framework for general authorizations and individual licenses in the field of telecommunications services. At the same time, licenses will only be issued for telecommunication activities requiring the operation of networks (except for specific CATV networks) and usage of limited resources – frequencies and numbers.

2.5.3 Pricing Policy and Price Regulation

According to the Act on Telecommunications, pricing policy in telecommunication should respect the cost relationships of various service types. The prices must be derived from the coverage of the telecommunication company’s own economically justified costs and fair profit margin. That is why, the system of billing and record keeping of costs and the methodology of their structuring into various service types must remain applied and improved. Telecommunication activities must be funded in a way preventing re-distribution of funds from telecommunications activities to other activities and the other way round. Price regulation must provide for a balance in the standing of the various telecommunication service providers. The role is establishing a single regulator in the field of telecommunication to also regulate prices.

2.5.4 Slovak Telecom

Slovak Telecom is the sole supplier of basic public voice services in the Slovak Republic. Slovak Telecom owns and operates a nation-wide telecommunications network and provides local, national and the international telephone services, leased line services, data network services, telex and telegraph services, distribution and broadcasting of radio and television signals and other advanced telecommunication services such as euroISDN and ATM, ST BOX voice mail service, ECHO Calling Card, Global prepaid card, international voice services etc.

Since April 1^st 1999, Slovak Telecom is registered in the Business Register as a joint-stock company with 100% stock ownership. Entry of a strategic partner was the next stage. In October 1999, on the basis of an analysis of possible variants of foreign capital entry into ST, the Slovak Government approved a draft of intention and process of privatization of 51% of ST shares. After an international tender, one of the world’s leading telecoms players, Deutsche Telecom acquired 51% of ST shares for EURO 1 billion. The rest of the 49% of the shares is owned by the State (34% the Ministry of Transport, Posts and Telecommunications and 15% by the National Property Fund). The next step in the privatization process is expected to be decided in 2002.

2.5.5 Mobile services

Cellular GSM telephone service is commonly in use with two major providers. Penetration of mobile subscribers as for 1 July 2000 reached 20,7%.

Globtel GSM, has been active in the Slovak market of mobile communications since 1997. The Slovak Republic has a 36% stake in Globtel while France Telecom owns 64%. The government has expressed plans to sell its share in an initial public offering. (www.globtel.sk)

Eurotel Bratislava is a mobile network operator in Slovakia that has been providing its services to its customers since 1991. Slovak Telecom owns 51% and 49% is owned by Atlantic West B.V. a joint venture between subsidiaries of Verizon Communications and AT&T Corporation. (www.eurotel.sk)

In July 1999, two licenses for the provision of GSM 1800 mobile service were granted to the current mobile service providers Eurotel Bratislava and Globtel GSM. The Government announced in November 2000 plans to issue in late 2001 three third-generation UMTS telephone licenses, with the intention that two of the licenses are guaranteed to be given to the current mobile phone operators Eurotel and Globtel, while the third will be offered through a tender. It is not legally clear if such an issue is applicable under the new Telecom Act.

2.5.6 Internet

Internet availability is very good in Slovakia. In June 2000, there were more that 80 licensed Internet Service Providers (ISPs). Since 1998, a special Internet tariffs structure has been implemented supporting dial-up customers of national and regional ISPs. Today, more than 200.000 people regularly use the Internet while more than 500.000 people can have access to the Internet if they want to. The Slovak Internet market is consolidating and basically is controlled by foreign investors. The key players in the Slovak Internet market are:

• Nextra, a subsidiary company of Norwegian Telecoms firm, Telenor
• GTS Slovakia, controlled by the financial group Advent International Corporation
• EuroWeb, a subsidiary firm of Dutch KPN Telecom
• Slovak Telecom
• SANET (Slovak Academic Network)

The barriers of further rapid and wider connectivity of citizens to the Internet are:

• Current purchasing power of the citizens
• Telephone tariffs during the monopoly period for fixed telephony
• Leased lines market on the local level ("last mile")

In April 2000, a General permission for providing Internet access and for providing voice service over Internet (VoIP) was issued by the Ministry of Transport, Posts and Telecommunications. Before this date, it had been possible to provide Internet access only on the basis of an individual license. Provision of voice over Internet had been permitted. The new Telecom Act still requires the issuing of a license for Internet services if limited resources (numbering) is used. In November 2000, a proposal document on Relevant General Authorisation was published by the Telecommunication Office (the National Regulatory Authority).

The Internet already boasts more switching capacity than the public phone network. Factors like competition, deregulation and low-cost capital have rewritten the rules for service providers, opening the door to profitable new value-added services, innovative businesses and streamlined operational models. All these changes are bringing new opportunities for telecom operators and service providers to offer solutions that anticipate customer needs, wherever and however they operate in the world.

Zoznam, Slovakia’s portal started in 1996 as a web- designing and web-providing company. Zoznam was officially launched in March 1997. It offers Slovak content for Slovak users. Apart from it being in Slovak, it offers an overview of the Slovak Internet and Slovak information that is updated from Slovakia.

2.6. Electronic Commerce.

The rise of the "new economy" and e-commerce has been well documented over the past year as media, telecommunications and Internet businesses grow ever closer and more and more dependent upon the world-wide-web. Some firms are now laying the foundations for the start of an e-commerce revolution that is set to take place in the near future. Since 1997, the EDIVAN Company has been providing international EDIFACT standards services. From 1999, several IT companies began to offer purchasing via the Internet. The Slovak Association on Electronic Commerce (SAEC), which was established in March 1998, plays an important role in supporting the process of e-commerce within Slovakia.

2.7. Electronic Signatures.

An important law that will affect electronic banking and financial transactions is being prepared for almost two years. This legislation, which has been in preparation at the Ministry of Economy is supported by the European Union. The EC also insists on Slovakia and other associate nations having legislation on electronic signatures approved and implemented as soon as possible. The law is expected to boost trading and business in Slovakia by allowing "electronic signatures", to be used to verify all kinds of documents, thus speeding communication between institutions, companies, banks and individuals through Internet and e-mail. Because of the big cost of this project, it will probably start in 2002. In December 2000 a few members of Parliament submitted a draft for a new e-signature Act to Parliament to start the legislative procedure.

The existence of the new law will be only the beginning of several years of implementation, during which many laws will be revised. Companies and banks meanwhile remain optimistic about the future for electronic signatures. Under current legislation, electronic signatures are allowed only in business-to-business transactions where a prior contract has been signed between two entities allowing their use. However, when the law is passed and implemented, electronic signatures will replace written forms of communication. Before this happens, through, much will have to be done in terms of regulating the use of signatures by constituting authorities which will issue certificates for electronic signatures, as well as establishing the National Certification Office. The establishment of the authority is a priority in the current legislation, however, the funding of such an office was subject to some discrepancies between the Ministry of Economy and the Ministry of Interior.

2.8. Education and Research.

2.8.1 Education.

During 1996 - 1998, three international conferences, organized by UNESCO and supported by the Ministry of Education, dealt with the topics of the role of education, and research & development within Information Society.

Since 1998, a special project (called INFOVEK) was launched on Internet access for primary and secondary schools (with support of Open Society Fund, later with direct support of the Ministry of Education). During 2000 the Ministry of Education started to prepare documents on the procedures and implementation stages of the most important government documents related to the Information Society.

Several specific EU program projects on distance education have been or are being prepared by many Slovak technical universities (e.g. TEMPUS / COPERNICUS). One of the projects that has been completed has been presented as a successful example at the 3^rd EU/CEEC Ministerial Conference on Information Society (Brussels, October 1997).

Rapid Library, the repository of technical books and journals is supported by a computer retrieval system and regularly replenished with hot titles. Library funds are preserved in two internal institute libraries: a library in Banska Bystrica with prevailing telecommunications, radiocommunications and informatics titles and a library in Zilina with postal and economic titles.

2.8.2 Research and development.

Technical universities are co-operating with local IT companies on specific application projects (e.g. Department of Telecommunication of the Slovak Technical University with the Slovak Cardiology Centre on Tele-medicine, etc). The specific application projects related to Information Society are managed by the Slovak Technical University in Bratislava, the Zilina's University (former University of Transport and Communications), the Technical University of Kosice, Commenius' University in Bratislava, Matej Bella's University in Banska Bystria, etc. Other specific projects are also managed by different institutes of the Slovak Academy of Science.

The Research Institute of Posts and Telecommunications (VUS) professional activities are defined by its founder, the Ministry of Transport and are embodied in the Statute and the Document of Establishment, issued at the beginning of 1993 establishing a nation-wide scientific-research institution in communications, radiocommunications, informatics and posts.

During 1999, the Research Institute of Posts and Telecommunications (VUS) was systematically upgrading its internal information system (Intranet VUS). Nearly 100 personal computers are connected to the LAN-VUSnet network (PC based), including computers supporting measurement and administration agenda of testing laboratories. Competent departments of the managerial center regularly update the Internet home site www.vus.sk, continually bringing up-to-date information about VUS activities and contacts, including references to other web sites related to the portfolio of VUS services.

The Ministry of Education is preparing a new legislative and institutional framework for the research and development sector.

2.9. Competition.

The most significant long-term strategic role of the Telecommunications Policy is the full liberalization of the telecommunication market in Slovakia and a support to free competition. To be able to comply with those basic requirements, it is necessary to fully liberalize the telecommunication market and separate the execution of ownership rights in the joint-stock company Slovak Telecom with the ownership share of the state from regulatory activities, which is also required by the EU.

The telecommunication market in Slovakia has been liberalized except for the basic public telephone service in the fixed telecommunication network and operation of the public telephone network. The joint-stock company Slovak Telecom has exclusive rights to provide that service by 31 December 2002.

The Slovak Republic will offer competition in public voice services and network infrastructure and permitted connection to public network as of 2003. Now the Slovak Republic offers competition for non-public voice telephony within closed user groups and data transmission, and competition in private leased circuits services are permitted without phase in with any connection to the public network.

2.10. Access for all - Universal Service.

Universal service means a defined set of public telecommunication services provided in the public interest of a defined quality and at a fair price to any user irrespective of his geographical location.

The basic requirements of the new Act on Telecommunications on universal service have been stipulated by the Directive 98/10/EC on the application of open network provision (ONP) to voice telephony and on universal service for telecommunications in a competitive environment. Together with the Directive 97/33/EC, which relates to charging and funding of the universal service, these two make the fundamental principles for universal service provision.

For the time being, the universal service obligation lies with Slovak Telecom. After a full liberalization to be introduced on 1 January 2003, the regulatory authority – depending on the development in the telecommunications market – will decide, which provides of the public telephone service will be obligated to provide Universal Service.

Within the scope of the Telecommunications Act, universal service will comprise of: provision of public telephone service (voice telephony), facsimile service, and data transmission service, provision of emergency calls, provision of operator and information services (directory services), provision of public payphone services and the issuing of telephone directories.

After the introduction of full liberalization of the telecommunication services – in compliance with the principles of non-discrimination and proportionality – all providers of public telephone service and operators of public telecommunication networks may be made to contribute to the cost burden of universal service. This will, however, not apply to data network operators or operators of networks for the distribution of radio and TV signals.

2.11. Protection of property Rights.

Protection of property rights fall under the jurisdiction of two agencies. The Industrial Property Office has the responsibility for many areas, while the Ministry of Culture is responsible for copyrights (including software). Slovakia is a founding member of the World Trade Organization (WTO) and succeeded to membership in the World Intellectual Property Organization (WIPO) upon the dissolution of Czechoslovakia. Slovakia adheres to major intellectual property agreements including the Bern Convention for Protection of Literary and Artistic Works, the Paris Convention for Protection of Industrial Property, and a lot of other international agreements on design classification, registration of goods, appellations of origin, patents, etc. Patents, copyrights, trademarks and service marks, trade secrets, and semiconductor chip design appear adequately protected under Slovak law and practice. Slovakia has a membership application pending with the European standards for protection of intellectual property.

2.12. Privacy, data protection, customer protection

According to the Act on Telecommunications of July 2000, information and data received, transmitted, mediated or stored in the provision of public telecommunications services, names and addresses of communicating parties, operating documents related to public telecommunications services shall be subject to telecommunications secrecy.

Those performing telecommunications activities are obligated to provide protection of data and information from misuse during their generation, reception, processing, storing, broadcasting and distribution.

Operators of public telecommunications networks and providers of public telecommunication service are obligated to provide their users with a certain standard of privacy of their communication as well as their personal data necessary for the provision of the given service. Some of these principles are also included in the new Telecommunications Act as a result from the European Parliament and Council Directive 97/66/EC concerning the personal data processing and privacy protection in the telecommunication sector. This applies in particular to the safety of information transmitted in telecommunication networks, security of communication, restriction of the scope of operating and tariff data and time in their processing by the service provider, identification of the calling and called line, tracing of malicious and nuisance calls, automatic diverting of calls, the right not to publish the subscriber’s data on request and protection from unsolicited calls.

The field of personal data protection is also regulated by Act No. 52/1998 on Personal Data Protection in Information Systems. The Act is detailed in an implementing regulation, the Decree of the Statistical Office No. 155/1998, stipulating the details of the method, format and procedure for the registration of an information system containing personal data.

2.12.1 Interest Associations and Telecommunication Customer Rights Protection.

Several expert interest associations perform their activities in the Slovak Republic. These are:

• Slovak Electrotechnic Society (voluntary professional association supporting telecommunication activities and the systematic distribution of information to its own members and to the public)
• Slovak Informatics Society (voluntary professional association supporting informatic activities and the systematic distribution of information to its own members and also to the public)
• APKT (association of Cable TC operators)
• SAKT (Slovak Association for Cable Telecommunications)
• SAEC (Slovak Association for e-Commerce)
• The Association of Telecommunication Users in Slovakia, established in 1997, is a professional protection association of users of telecommunications services and technologies, including information technology users.
• Jozef Murgas Foundation has already 6 years of existence and has occupied an important position in support of education, science and propagation in telecommunications.
• ATM Association (established in 1997)
• ISDN Association (established in 1998)

A non-profit organization API (Association of internet Access Providers) was founded in April 1999. API represents Internet service providers in the area of creation of conditions for Internet service development in the Slovak Republic.

The Voluntary Interest Associations also play an important role in spreading and propagation of expert knowledge and possibilities of new services in the user environment.

5.1 Privatisation.

Slovakia signaled its openness to foreign investment by rescinding past laws on strategic privatization, which prohibited privatization of a broad range of state-owned enterprises, including banks, insurance companies, natural monopolies in gas, power and telecommunications and others. A new law permits complete privatization of most of these properties. It requires that the state retain a 51 percent share only in the natural gas company, the power company, electricity distributors and an oil pipeline. The first major tender permitted by the new law, the sale of 51 percent of the telecommunications monopoly, ended with the selection of Deutsche Telecom as the company’s new majority owner.

5.2 Foreign Investment.

Investment policy in the Slovak Republic has evolved toward far greater openness in the last few years. In the past there were openly expressed concerns about foreign ownership of Slovak companies and in general there was an unwritten preference for Slovak entrepreneurs in direct-sale privatization of companies. This approach was reflected in Slovakia’s ranking in Central Europe as a destination for foreign investment; government statistics show that by the end of 1999, Slovakia had received only one-sixth of the cumulative investment per capital received by Hungary and the Czech Republic. The government of Slovakia now, appears to be serious about overcoming this gap and attracting more foreign investors.

Foreign direct investment in 1999 was SKK 12.5 billion (USD 277 million, valued at SKK 45/USD). The largest investor was Germany (4.46 billion). Most of 1999 investment, 48.3 percent, went into industrial production; however, there was a big upswing in FDI in the trade sector, as multinationals such as British Hypermarket operator Tesco, Belgian supermarket chain Delvita and other retailers widen their operations across Slovakia. About 77 percent of the investment went into the two easternmost regions around Kosice and Presov.

5.3 Acquisitions.

The trend continues as the process of consolidation on the Slovak ISP market, has in the last two years seen nine purchases by three firms – Nextra, GTS Slovakia and EuroWeb.

The Slovak ISP is primarily controlled by foreign investors. Only Slovakia Telecom and a few smaller local providers remain independent, however with Deutsche Telecom buying ST this will change.

5.4 Standardisation bodies dealing with telecommunications.

Harmonization of European technical standards issued by ETSI and other bodies into Slovak National Standards (STN) and simultaneous monitoring of the relevant European legislation specifying the standards distribution and application is extremely important and unusually widespread, requiring highly qualified personnel for technical and administration activities. These are carried out by VUS authorized by the Ministry in a close co-operation with the Slovak Technical Standardization Office (SUTN). In this area VUS also carries out the function of ETSI active member in the National Standard Organisation (NSO) category, ensuring both participation at relevant international meetings and co-ordination on the national level of public enquiry and approval procedures to newly prepared ETSI standards.