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Irena-Malloli

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  • pg 1
									E-Commerce, E- Commerce Centers
         Workshop 14-17 May 2002
           Bucharest, Romania



              ALBANIA
                  Presented by :

                 Irena Malolli

General Directorate of Post and Telecommunications
  Ministry of Transports and Telecommunications


                                                     1
           Current telecommunications regulation structure
                            in Albania
            Council of                                     Parliament
             Ministers


             Minister of Transports
            and Telecommunications                    Telecommunications
                                                        Regulatory Entity

    General
Directorate of PT

         Policy and                                           Regulation and
         Legislation                                          Licencing
                              Telecommunications Market

                       ALBTELECOM                  AMC




                                                VODAFONE
                                      OTHERS
                                                                               2
         Telecommunications situation in 1999

- A fully state monopoly in telephony. Only 2 companies,
100% state owned, in the market: Albtelecom in fixed
telephony and AMC in mobile telephony;

- A very low telephone penetration, due to historical reasons;

- Lack of governmental funds to overcome this situation;

- Other services, except telephony, liberalised since in the
beginning of 1998, but still no results.



                                                                 3
       Telecommunications Sector Reform
                    (1999-2001)

The main focus of the reform was to open the market
to and to encourage private investments:



      Privatisation of state owned telecommunications
       companies

      Gradually market liberalisation, and

      Improvement of regulatory framework

                                                      4
             Telecommunications Sector Reform
              (Improvement of regulatory framework)

The Programme “Development of Albanian Telecommunications Administrative
and Regulatory Framework” started in the beginning of 1999 year.
      Objectives
         To draft the telecommunications policy paper;
         To draft the new telecommunications act;
         To draft the licenses to be issued to AMC and Albtelecom;
         To establish the regulation mechanisms on tariff control, interconnection, and fairness
          competition.
                               Telecommunications policy paper was approved by
                                decision of the Council of Ministers No. 288, date
                                16.6.1999
                               Licenses were awarded to AMC and Albtelecom
                               On 14.06.2000 the Parliament adopted the act no.
                                8618 “On Telecommunications in Republic of
                                Albania”                                      5
  Telecommunications Sector Reform
  (Improvement of regulatory framework)


KEY PROVISIONS OF THE POLICY AND TELECOM ACT
(long term goals)
The long-term aim of the Albanian Government in relation to the
telecommunications sector is the harmonised development of the
telecommunications infrastructure of Albania and its gradual
extension throughout the country, so as to ensure:

  •   access to basic telephone services at affordable prices
  •   the full range of modern services is accessible by all the
      population of Albania
  •   competition and choice for users
  •   improved protection of consumers

                                                                   6
                                                POLICY IMPLEMENTATION
                                                         Adopted initiatives


Initiative 1 A general licence for telephone service providers will be issued

Initiative 2 A second terrestrial mobile telephony operator will be licensed in
             the same time with privatisation of AMC. A decision on licensing
             of subsequent cellular operators will be taken at a later date by
             Council of Ministers, when the market has had time to develop.

Initiative 3 Urban, long distance and international telephony services provided
             over fixed networks will be open to competition by 2003.




                                                                                7
                                    KEY PROVISIONS OF THE POLICY
                                                    Long term goals

•   In order to implement its long term objectives, the government has
    chosen to:
     – introduce competition and liberalisation in the sector
     – implement EU telecom Directives in Albania
     – allow/attract foreign investments to support faster deployment of a
       high quality infrastructure
•   … But also to allow for a transition period, in order to:
     – reduce the negative short term impact of tariff re-allignment on the
       Albanian public
     – allow sufficient time for operators to accomplish the heavy
       investment requested upfront
•   In practice, (fairly) short term implementation of the policy will
    include:
     – privatisation of AMC and Albtelecom
     – granting of an exclusive right to Albtelecom to exploit the local, long
       distance and international voice telephony services in urban areas
       over its fixed network until 31 December 2002
                                                                          8
PRIVATISATION OF STATE OWNED COMPANIES



 On July 2000, 85% of AMC shares were sold to
  Cosmote/Telenor Consortium, through an international opened
  tender.


 The process of Albtelecom privatization is underway and it will
  be finalized by the end of this year.

               • 51-76% of shares will be transfered to strategic investor;
               • Also a GSM licence will be issued to strategic investor.




                                                                       9
                   Licencing of the 2nd GSM operator




In conformity with provisions in telecommunications
policy paper, the tender procedures for licencing of the
2nd GSM operator started in September 2000. Tender
was closed in February 2001 and the winner was
Vodafone company.
In April 2001 the licence was issued to Vodafone,
which lauched the services in August 2001.




                                                           10
    Current telecommunications market structure
                       (1)

 Voice telephony:
•    fixed telephony operators
     - Albtelecom, 100% state owned;
     - rural telecommunications operators ( liberalized market;
       up to now 31 licenses issued)
•    2 cellular operators:
     - AMC (Albanian Mobile Communications);
     - Vodafone Albania



                                                             11
 Current telecommunications market structure
                    (2)


• Liberalized services:
  – 15 Internet Service Providers
     •   3 POP
     •   4 Local ISP
     •   7 Regional ISP
     •   1 National ISP

  – 1 National Backbone Operator
  – 13 Other Service Providers
     • Shared Revenue Services, Prepaid card service, Free-phone
                                                                   12
                  Fixed Penetration
                         (per hundred habitants)

                             7.00%
                             6.00%
                             5.00%
                             4.00%
                             3.00%
• Low penetration
  (particular in rural       2.00%
  areas)                     1.00%
• High demand
                             0.00%
• High waiting list                  1998   1999   2000   2001


                                                                 13
                Mobile penetration
                                      Rapid growth of mobile
12.00%
                                      users in 2001 is related with:
10.00%                                • privatization of the first
                                      operator (AMC);
8.00%
                                      • introduction of prepaid
6.00%
                                      service;
                                      • very low fix penetration &
4.00%                                 high demand;

2.00%                                 • entrance of second mobile
                                      operator, Vodafone in the
0.00%                                 market (1 August 2001).
         1998    1999   2000   2001



                                                              14
     Rural telecommunications
• The smallest unit area for the purpose of
  licencing is commune.
• “First in, first served” licensing regime.
• Since 1999, 31 licenses issued for rural
  operators.
• Rural operators in 59 communes
           » 19.1% of total number of communes
           » 28.9% of total rural area population

                                                    15
            Conclusions on reform undertaken



Penetration figures given in previous slides, show that
“privatisation and liberalisation” approach followed by
Albanian Government was the right way for fostering
telecommunications development.
The contrast between mobile segment, where reform was
implemented, and fixed segment, where reform was not
implemented, make it more clear.




                                                          16
                                     Next challenges




• Privatisation of Albtelecom;

• Law enforcement, and regulatory strengthening,

• Information society




                                                   17
                                        Information society

Telecommunications are very dynamic. One gap is narrowed,
another one appears.
While in mobile telephony a lot of progress was done, the
Internet usage in very law. There are only 10 thousand Internet
users, mostly in Tirana.
Some of the identified obstacle factors in Albania are:

       - high price of a PC comparing to GDP;
       - lack of Albanian content and services in Internet;
       - low knowledge of population on PC, etc.

                                                              18
19
                                      Information society

Overcoming of these factors needs engagement of the
Government through stimulating policies. Albanian
Government is fully confident that building an information
society will impact and give positive results in economic,
social and cultural life of Albania.
With the support of ITU and UNDP, it has already started
the project for drafting National ICT strategy, which is
supposed to be finalised by the end of this year.
This document will also identify necessary regulatory acts to
be drafted.



                                                           20
                                         Information society
                                  (Participation in regional projects)



Albania is participating in these regional projects:
- Stability Pact eSEEurope-initiative;
- Italian initiative “E-governance for development” for
Mediterian region;
- “E-Governance project” between countries: Albania, Cyprus,
FYROM, Greece, Rumania, and Yugoslavia.




                                                                  21
THANK YOU


            22

								
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