1. PRESENTER : Kosta Trpkovski Slo-Mac Business forum, Ohrid, September, 07-10th 2006 MACEDONIA Electronic communications market liberalization in the Republic of Macedonia

2. 2  A new electronic communications law, adopted in March 2005  Directions of a new regulatory framework of European Commission 2002 followed  TAIEX project for checking the law compliant with EU directives Agency for Electronic Communications

3. 3  Agency for Electronic Communications  Independent and non-profit legal body with public authorities  President and Commissioners are nominated by the Parliament  Director nominated by the Commission thru public tender  Official beginning at 1 st of July 2005 Agency for Electronic Communications

4. 4 Adopted by-laws (1/3) a. TELECOMMUNICATIONS Electronic communications networks and services - Procedure of Notification - Guideline on technical and financial information that should be reported to the Agency Competition: - Decision of determination the relevant markets - Interconnection - Carrier selection and pre-selection - Unbundling the local loop (ULL) - Access to and use of specific network facilities - Minimum set of leased lines - Accounting separation of SMP operator

5. 5 Agency for Electronic Communications Adopted by-laws (2/3) a. TELECOMMUNICATIONS (cont.) Numbering: - Numbering plan - Numbering usage fees Universal Service: - Directory enquiry services - QoS parameters for Universal Service User rights protection: - General conditions for providing public services,tariffs and QoS parameters

6. 6 Agency for Electronic Communications TOTAL: 28 by-laws Adopted by-laws (3/3) b.RADIOCOMMUNICATIONS Radiofrequencies Allocation Plan Radiofrequencies fees Register of assigned frequencies Authorization-free frequencies c. SUPERVISION Inspector’s identification Procedure and conditions for keeping the seized equipment Content and form of sealing the working premises or communication equipment

7. 7 Agency for Electronic Communications All by-laws are adopted respecting the main principles:  Open public consultation  Transparency  Technical neutrality  Non-discrimination  Electronic communications services consumer rights protection  Efficient use of scarce resources (numbering and spectrum)  All by-laws are on www.aec.mk and published in the “Official Gazette of the Republic of Macedonia”

8. 8 Agency for Electronic Communications One of the cases which shows the transparency of the Agency:  In July 2006 the Agency issued Guide-line for assigning the frequencies in the band of 3.4-3.6 GHz for broadband fixed wireless access (WiMAX)  After public consultation which is running these days, in October 2006 the Agency will start the procedure for assigning the frequencies for WiMAX through public tender

9. 9 Agency for Electronic Communications Notification for public electronic communications network operators and service providers General Authorization - Instead of individual license regime

10. 10 Agency for Electronic Communications Total: 135 network operators and 44 service providers

11. 11 Agency for Electronic Communications

12. 12 Agency for Electronic Communications RIO - Referent Interconnection Offer  Approved by the Agency in February 2006  Zonal model is used - Three regional zones: Skopje with Point of Presence (PoP) in Transit Switch (TS) Skopje “East zone” with Point of Presence (PoP) in Transit Switch (TS) Stip “West zone” with Point of Presence (PoP) in Transit Switch (TS) Bitola - Local interconnection: 15 primary zones all larger cities in Republic of Macedonia are offered for local interconnection comparable sized primary zones

13. 13 Agency for Electronic Communications RIO - Referent Interconnection Offer(cont.)  Amended in July 2006 - subject of further analysis by the Agency - cost model for interconnection prices - procedures for interconnection  3 operators are currently in a the procedure for interconnection with MakTel: - On-net - Akton - Nextcom  Carrier Selection (CS)/Carrier Pre-Selection (CPS) - included in RIO - the Agency had issued decision for reservation of CS - code 1010 to 1 operator (On-net)

14. 14 Agency for Electronic Communications RIO prices Call set-up feePrice per minute for traffic peak-on 08:00- 20:00 Denars peak-off 20:00- 08:00 Denars peak-on 08:00- 20:00 Denars peak-off 20:00- 08:00 Denars peak-on Euros peak-off Euros Local origination of the call 0,13 0.081.430.820.0230.013 Regional origination of the call 0.160.091.720.980.0280.016 Local termination of the call0.130.081.300.750.0210.012 Regional termination of the call 0.160.091.560.890.0250.014 National termination of the call 0.220.132.121.210.0340.020 RIO prices

15. 15 Agency for Electronic Communications RUO - Referent Unbundling Offer  Approved by the Agency in April 2006  Types of LLU offered by RUO: - Full local loop unbundled - Shared local loop (Platform for Broadband services)  Types of collocation - Physical - Distant  Implementation on the whole territory of the Republic of Macedonia, according to the numbering geographical areas defined by the Numbering Plan  All 341 MDFs offered for implementation in 8 quarters  MakTel issues a “List of equipment enabled to be connected to its network” and keeps it updated on-line

16. 16 Agency for Electronic Communications Referent Unbundling Offer (RUO) (cont.)  Monthly rental prices for LLU were established on benchmarking and are the LOWEST compared with other countries of the region: –LLU-Full unbundling 703, 00 denars (11.43 Euros) –LLU-Shared access 351,50 denars (5.715 Euros)

17. 17 Agency for Electronic Communications Mobile network operators:  2 GSM operators (900 MHz)  100% coverage of the territory  about 1.300.000 subscribers of which 85% are pre-paid subscribers

18. 18 Agency for Electronic Communications Retail mobile tariffs  Low usage mobile basket: 7,37 EUR (453,2 MKD)  Medium usage mobile basket: 18,23 EUR (1.121,1 MKD)  High usage mobile basket: 36,88 EUR (2.268,1 MKD)

19. 19 Agency for Electronic Communications Mobile termination fees Fix-to-Mobile Peak:12,26 Eurocents/min Fix-to-Mobile Off-Peak: 4,9 Eurocents/min Fix-to-Mobile Blended:10,73 Eurocents/min Mobile-to-Mobile Peak:12,68 Eurocents/min Mobile-to-Mobile Off-Peak: 4,71 Eurocents/min Mobile-to-Mobile Blended: 9,55 Eurocents/min

20. 20 Agency for Electronic Communications VoIP providers  Access into subscriber stage of the local switch  The provider of public voice services via packet switched network may conclude an agreement with an operator on commercial basis  0800 9abcd (green number)  The Agency has assigned 32 green numbers for VoIP providers  22 agreements for access between MakTel and VoIP providers

21. 21 Agency for Electronic Communications * Prices are taken from the official web-sites of the service providers ** 1 Euro = 61.5 Denars

22. 22 Agency for Electronic Communications 1 Euro = 61.5 Denars

23. 23 Agency for Electronic Communications Number Portability (NP)  In phase of preparing the by-law document  Dead-line for implementation March 2007  Agency prepares market analysis and benefits from NP on the market  Central Data Base for ported numbers would be managed by the Agency

24. 24 Agency for Electronic Communications THANK YOU FOR YOUR ATTENTION! www.aec.mk kosta.trpkovski@aec.mk