1. Information Society Perspectives in South - Eastern Europe BOSNIA and HERZEGOVINA. Mr. Siniša Petrović Information Infrastructure Manager Communications Regulatory Agency

2. Information Society Perspectives in SE Europe - Thessaloniki June 2001 1 Presentation Aims Current situation in BiH; Areas of Concern - The Needs; The Elements in Place; The Oportunity.

3. Information Society Perspectives in SE Europe - Thessaloniki June 2001 2 Internal administrative organisation of BiH - Complex picture; The war still affects peoples lives in BiH; Telecom infrastructure, reconstruction and development; Information access by population is low; The economy is fragile; Taxation high, wages low, alternative economy. Current situation in BiH - The Reality.

4. Information Society Perspectives in SE Europe - Thessaloniki June 2001 3 2 Entities Republika Srpska Federation of BiH 10 Cantons (Federation BiH) Brčко District 150 Municipalities Internal administrative organisation of BiH - Complex BiH Territorial size of 51.209,2 km2 1 District

5. Information Society Perspectives in SE Europe - Thessaloniki June 2001 4 source of data: Ministry for human rights and refugees Meeting the donor conference in Doha, 15. May 2001 2,2 million people have been displaced from their homes 1,200,000 persons have requested for refugee protection in more than 100 countries worldwide 328,900 persons have regulated their status in the recipient countries 288,450 persons awaiting for permanent solution. The war still affects peoples lives in BiH

6. Information Society Perspectives in SE Europe - Thessaloniki June 2001 5 Telecom infrastructure, reconstruction and development Source EBRD subscriber lines had decrease almost 45 percent; Damage assessment was estimated as follows: exchange capacity decreased 25 percent; transmission routes destroyed 40 percent; long-distance network destroyed 65 percent. The cost of restoring the sector, USD 222 million.

7. Information Society Perspectives in SE Europe - Thessaloniki June 2001 6 Source IMG 1999 Telecom infrastructure, reconstruction and development

8. Information Society Perspectives in SE Europe - Thessaloniki June 2001 7 3 Telecom Operators in Fixed Network - with app 850,000 main lines; Tendering procedure for new mobile operator is on the way; Main actors and competitors in Telecom Market today 17 Internet Providers with about 75,000 subscribers (density estimation 2%). 2 Telecom Operators in Mobile Network - with app. 250,000 subscribers;

9. Information Society Perspectives in SE Europe - Thessaloniki June 2001 8 - 55 % of settlements within technical coverage - 75% of inhabitants within technical coverage Telecommunication coverage, estimation source of data: Communication Regulatory Agency More than 95% population lives in marked areas Estimated presence of telecom service in BiH

10. Information Society Perspectives in SE Europe - Thessaloniki June 2001 9 source of data: European Survey of Information Society Projects and Actions Total lines penetration rate in Bosnia and Herzegovina

11. Information Society Perspectives in SE Europe - Thessaloniki June 2001 10 Economy GDP per capita US$ 1,126 average net wage KM 305 (June 2000, growth 9%) inflation 7.5% unemployed (40%) (June 2000) source of data: Agency for Statistics BIH, Bureau of Statistics FB, Bureau of Statistics of RS Financial infrastructure main payment procedure: cash afterwards credit card usage and acceptance very low central bank controls monetary policy Economy and Finance.

12. Information Society Perspectives in SE Europe - Thessaloniki June 2001 11 Areas of Concern - The Need : Simple, cheap and reliable access to information - for Governance - institution building - for Commerce - building the economy - for Education / Training - for Science and Culture

13. Information Society Perspectives in SE Europe - Thessaloniki June 2001 12 Preconditions: Legal Framework Implementation of a policy and law making bodies; Implementation of equal treatment of incumbent and non- incumbent Internet Service Providers; General legal provisions for privacy and data protection; Updating contract law and obligations rights; Updating the law on financial institutions; Modernising the financial sector; Improving law enforcement for the overall legal framework Establishing legal and organisational provisions, promoting fair competition.

14. Information Society Perspectives in SE Europe - Thessaloniki June 2001 13 Preconditions: Technical base The Information Infrastructure: – efficient, competitive, affordable and accessible with high quality of service; Base of knowledge: – Building a top level base of professional knowledge; – Providing a basic knowledge to the society;

15. Information Society Perspectives in SE Europe - Thessaloniki June 2001 14 The elements in Place : Non-nationalist Governments in place; Enabling Regulation now established and hence can encourage development; Modern Telecommunication Infrastructure in place; Change of attitude; from "unless it is specifically allowed you CANNOT” to "unless it is specifically prohibited - you CAN"

16. Information Society Perspectives in SE Europe - Thessaloniki June 2001 15 Parliament Senate making the policy Adopting the law Government (relevant ministry) Draft bill Regulatory Agency Law adopted by parliament Reporting to Government and parliament Proposing policy orientations Regulate: implementing the law Implementing rules and law Policy making and implementing the rules

17. Information Society Perspectives in SE Europe - Thessaloniki June 2001 16 Policies for Enabling the Internet: Legal Framework Limited need for NEW Internet regulation –Digital signature –Protection of intellectual property Application of existing regulations (not Internet specific) –Protecting children –Consumer protection –Preventing fraud –Prosecute criminal behavior Not traditional media regulation with thanks to FCC

18. Information Society Perspectives in SE Europe - Thessaloniki June 2001 17 Existing Overlay Transmission Network in BiH a.)   Sarajevo Zenica Mostar Jajce Trebinje Tuzla Banja Luka Prijedor Bihac Bijeljina Srbinje Gorazde Posusje Livno YU CRO

19. Information Society Perspectives in SE Europe - Thessaloniki June 2001 18 Action in BiH : Building Base of Knowledge source of data: European Survey of Information Society Projects and Actions WWW Indicators report on Bosnia

20. Information Society Perspectives in SE Europe - Thessaloniki June 2001 19 Action in BiH : Building Base of Knowledge source of data: European Survey of Information Society Projects and Actions WWW Indicators report on Bosnia

21. Information Society Perspectives in SE Europe - Thessaloniki June 2001 20 The Opportunity: To BUILD on the NEW postwar infrastructure To change culture by "Ownership" To develop Internet Service Providers (deregulation) To allow low cost rapid spread of wireless technologies to serve the rural population (WLL) To reduce the costs of communication - liberalisation To develop the regional applications from Within the Region To involve/empower the local users and providers wherever they are in BiH

22. Information Society Perspectives in SE Europe - Thessaloniki June 2001 21 Conclusions Significant opportunities are available for new services throughout Europe; BiH is well-placed to exploit because of the opportunities of Infrastructure Development; Decision to shift in market from equipment manufacture to service delivery; BiH needs to find support for service provision opportunities; Can use these opportunities to attract investment.