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									                                                   Mehmeda Spahe 1                            Phone: ++387 (0)33 250 600
                                                   71000 Sarajevo                             Fax: 651 091
Regulatory Agency                                  Bosnia and Herzegovina                     E-mail:

Decision 8 March 2004 JP BH Telecom, Sarajevo
Wednesday, March 31, 2004

RAK[1]                                                                     Annex 6

Enforcement Panel


                                                        8 March 2004

                                                 JP BH Telecom, Sarajevo

I.    Introduction

1.      On December 5th 2003, Communications Regulatory Agency has warned the company ERONET doo Mostar that
it found out that ERONET uses numbering 063 8xx xxx to provide GSM services without previously obtained licence. On
the same day, the Agency sent letters to the three fixed operators in BiH, Hrvatske telekomunikacije doo Mostar, JP BH
Telecom and JODP Telekom Srpske, in which it informed them that ERONET uses numbering 063 8xx xxx without right.
The case of illegal usage of aforementioned numbering by ERONET was forwarded to the relevant authority of the
Agency for decision. In the mean time, the Agency has reached preliminary conclusion that BH Telecom has committed
multiplied breach of the Law on Communications and Agencys rules regulating the usage of numbering as well. In that
sense, the Agency initiated the procedure to determine breach of the Law on Communications, Licence for the Public
Fixed Telephony Operator and Numbering Plan for Telephone Services in BiH (CRA Rule No. 8).

II.   Facts

2.    Article 7.1 of the Law on Communications states:

      The provision of telecommunications services over mobile and fixed networks shall be subject to a licence
pursuant to this Law.

      BH Telecom failed to obtain the licence for the block of numbers prior to provision of logical interconnection for it.

 3.   Article 8.1 of the Law on Communications states:

      Telecommunications operators shall ensure the proper functioning of their system and the provision of
telecommunications services pursuant to this Law.

      Factual state of the case shows that BH Telecom, along with other two operators, enabled ERONET to provide
extended telecom services contrary to the provisions of the BiH Law on Communications, and it enabled its users to dial
numbers and receive calls from illegally occupied block of numbers 063 8xx xxx.

4.     Article 14. of the Licence for the Public Fixed Telephony Operator states:


14.1 The Licensee shall fully implement and comply with the CRA Rule 08/2001 (Numbering Plan for Telephone
Services in BiH) and CRA Rule 09/2001 (Management of Numbering Plan for Telephone Services in BiH), as well as any
other rules and regulations issued by the Agency.

Article 9. of the Numbering Plan for Telephone Services In Bosnia and Herzegovina (CRA Rule No. 8) states:

Allocation of blocks of numbers for GSM network

In order to provide equal and non-discriminatory access to numbers, the Agency shall allocate numbers to GSM
operators in blocks of 100,000 numbers. New blocks of numbers can be used only with previous allocation of such
blocks by the Agency.

      In relation to the previous two Articles, it is evident that BH Telecom enabled extended usage of new numbers
without licence allocated by the Agency to ERONET. This licence not only that determines the right of the licensee to use
the block of numbers, it also determines the right to use aforementioned block of numbers in general, in any way, before
the prescribed licence is obtained.

5.     Article 3 of the Interconnection Rule (CRA Rule No. 16) states:

        Rights and Obligation to Interconnect

 1)        An organisation in any of the classes set out in paragraph 2 below shall:

a)        Have a right to negotiate an interconnection agreement with any other organisation in any of the classes
specified in paragraph 2; and

b)       When requested by any other organisation in any of the classes specified in paragraph 2, shall have an
obligation to negotiate an interconnection agreement with that organisation.

2)        Organisations referred to in the above paragraph are organisations:

a)        Which are authorised pursuant to the applicable law and which provide all or any of the following:



iii)         A public mobile telephony network

iv)           Public mobile telephony services

        Considering that recognition of the original call, at least to the certain level, represents a segment of logical
interconnection of telecom networks, without which telecom traffic is not possible, BH Telecom was obliged to set the
system of recognition of the original call at the level which corresponds valid rules established by the Agency. This
means that operator at least had to recognize original calls at the level of blocks of numbers (036 x) since there is a
licence prescribed for usage of the blocks of numbers, and not only at the level of basic numbering (036). For this
reason, the argument given by BH Telecom that it did not analyse incoming calls upon the first four numbers, but only
upon the first three numbers, was not relevant since it is about this operators failure to harmonize its operations with the
Article 8 of the BiH Law on Communications and Rule No. 8/2001.

III.   Response

6.    BH Telecom gave their standing related to the case in the letter from January 12th 2004, which states the

     - That illegal usage of the block of numbers by other operator cannot establish the conclusion that BH Telecom
was responsible for such breach, i.e. breach of provisions of the Articles 7.1 and 8.1 of the BiH Law on Communications;

      - That BH Telecom completely complies with provisions of the Rule 8/2001 and 9/2001, and accordingly they do
not breach Article 14.1 of the Licence for the Public Fixed Telephony Operator. BH Telecom considers that Decision
which determines destination codes explicitly shows that the analysis completes at the third number. Furthermore, BH
Telecom states that after they received the letter from the Agency, they have limited block 063 8x xxx;

      - BH Telecom states that they have not breached the Rule 16/2002 (Interconnection Rule), and that usage of
blocks is not included in the logical interconnection, that interconnection refers only to the connection of networks. At this
point the Agency expresses its concerns about the level of recognition of the valid regulation by BH Telecom since this
argument given by BH Telecom is in complete collision with the Article 1 of the Interconnection Rule, which states the

1)         This rule covers issues relating to the interconnection of public telecommunications networks and the provision
of public telecommunications services by duly authorized operators and service providers within Bosnia and
2)         Interconnection of networks and of services shall be achieved through the operation of Interconnection

Therefore, the issue of interconnection directly refers to the provision of telecom services as well, which is directly goes
through the usage of blocks of numbers. In relation to the right for usage of the block of numbers 063 8x xxx, ERONET is
an unauthorised operator, and as such it was provided with interconnection. Furthermore, in its definition,
interconnection is determined as:

      Interconnection means the physical and logical linking of telecommunications networks used by the same or a
different organisation in order to allow the users of one organisation to communicate with users of the same or
another organisation, or to access services provided by another organisation. Services may be provided by the parties
involved or other parties who have access to the network.

It is clear that users of ERONET and BH Telecom cannot communicate with each other without usage of telephone
numbers (in case when the network is not IP oriented), which is included in logical interconnection. Also, when users of
BH Telecom are calling number from numbering that belongs to the illegally occupied blocks of numbers, then they are
also using those numbers in order to reach users from the other side, which clearly shows that each operator has the
responsibility to provide legal interconnection and that this is not about one-sided responsibility by ERONET as it was

BH Telecom raises the question if ERONET has the right for interconnection according to the Interconnection Rule.
ERONET does have the right for interconnection for every block of numbers for which it has a licence issued by the
Agency, or recognized by the Agency based on the previous licence. The same principle applies to any other telecom

IV.    Reasoning

7.   It is evident that by all established rules, and especially principles of the Article 8 of BiH Law on Communications,
each public telephony operator has been put in an active position regarding compliance with the BiH Law on
Communications and Agencys rules while providing public telecom services.

In the subject case, BH Telecom enabled not only ERONET subscribers but also its own subscribers, to use illegally
occupied block of numbers in mutual communication. From this fact exactly comes the obligation of BH Telecom to
conduct complete control over legality of telecom services provided by them.

Legality of provision of telecom services is not dividable concept, meaning that services can be provided legally or
illegally. BH Telecom is obliged by culpa specialis and it cannot rely on its conscience.

This makes BH Telecom, which in its practice requires from each small user to submit the licence for each one number
allocated by the Agency, even more obliged to apply the same principle towards big operators since legality of provision
of its own telecom services directly depends on it.

Services of incoming calls coming from the other network, BH Telecom provides commercially, calculating and collecting
payments for them from the other operator, concretely ERONET. In the subject case, BH Telecom realized profit coming
directly from illegal usage of the block of numbers by ERONET, and there is no possible way it can use to excuse its
failure to prevent access to this block of numbers.

In case that BH Telecom really technically analysed only the first three numbers of incoming call, then it is the failure of
BH Telecom to adjust the operational system to the legal provision of telecom services. The same way three-figure
destination codes were determined, which was used by BH Telecom as an argument, fourth figure defines block of
numbers that can be used only with obtained licence issued by the Agency, according to the Agencys rules. Therefore,
BH Telecom had to make technical system plan in such way that inclusion of traffic towards certain block of numbers
could have been done only after submission of the licence for usage of aforementioned block by the other operator, since
this is the only way to comply completely with Agencys rules.

In accordance with facts and circumstances of the case, stated in this Decision, BH Telecom shall be warned in written to
adjust its technical system to the requirements of legal provision o public telecom services.

BH Telecom shall pay financial fine in suggested amount of 5 000 KM.

V.    Conclusion

8.    BH Telecom is hereby ordered to conduct analysis of incoming telephone traffic at the level of the first four figures
of the call coming from the other operators network.

9.   BH Telecom is hereby ordered to pay financial fine in amount of 5 000 KM within 30 days from reception of this

10.   The payment of the fine shall be made in accordance with details stated in Annex 6.1.

11.   JP BH Telecom is hereby made aware that any future violation of similar nature will entail a more severe sanction.

VI.   Appeal

11. This decision may be appealed in accordance with Article 49 (2) of the Law on Communications 15 days after
receipt of the Decision by JP BH Telecom.

12.   An Appeal shall not postpone implementation of the sanction.

This Decision is made in accordance with Article 7.2 of the Procedure for Handling Cases.
Jakob Finci

                                                                                                    Gorana Ivkovic

[1] On 21 October 2002, the High Representative passed the Decision on Regulating various matters of a transitional
nature arising out of previous Decisions of the High Representative and Enacting the Law on Communications of Bosnia
and Herzegovina. The Law on Communications was published in the BiH Official Gazette (No 33/02) on 12 November
2002, and is in force as of 20 November 2002. The Law was later adopted by the BiH Parliament and published in the
BiH Official Gazette (No 31/03)

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