TELECOMMUNICATION SECTOR
IN THE REPUBLIC OF SERBIA
- REGULATORY DEVELOPMENTS
MARKET OVERVIEW –
AND
Milan Janković, Ph.D.EE
Director
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
1
Facts about RATEL (1)
• The Republic Agency for Electronic Communications
(RATEL) is an independent regulatory authority
established in line with the Law on Electronic
Communications which came into effect in July 2010,
replacing the former Republic Telecommunication Agency,
established
in
accordance
with
the
2003
Telecommunications Law.
Aim:
• to ensure optimal and realistic conditions for further
development and application of electronic communications
(information and communication systems - ICS) and
services and therefore accelerate the realization of all
benefits and advantages of the Information Society, in
accordance with the Digital Agenda of the Republic of
Serbia and the European Union.
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
2
Facts about RATEL (2)
• The Law on Electronic Communication is in compliance
with the EU 2002 Regulatory Framework and enables:
 an increased transparency within the sector of electronic communications and
ensures legal predictability with the aim of increasing investments in the sector;
 the continuation of the operation of the national regulatory authority;
 the implementation of the concept of ‘general authorization’ with the aim of
further liberalization of the electronic communications sector;
 parameters for the identification of relevant markets susceptible to ex ante
regulation, the criteria for the designation of operators with significant market
power (SMP operators) as well as imposing the so-called ‘regulatory obligations’
on such operators;
 the protection of rights of users of electronic communications networks and
services;
 non-discrimination in the process of allocation of addresses, numbers and radio
frequencies as scarce resources; and
 the implementation of the principle of technological neutrality with the aim of
ensuring further development of the electronic communications in the Republic
of Serbia.
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
3
Facts about RATEL … mission
• to create the conditions for further development of electronic
communications through cutting-edge ICSs, as well as the
balanced development within the whole territory of the
Republic of Serbia
• to create the conditions for the equal and non-discriminatory
operation of all market participants in both technological
(network neutrality) and economic (market economy) terms
• to ensure further development of electronic communications
through mechanisms for enhancing competition (ex ante) and
where necessary, market regulation as well (ex post)
• to ensure overall protection of rights of all market participants,
end-users especially, with the aim of providing modern, highquality and cost-based services.
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
4
Facts about RATEL … competencies
• adopting bylaws which govern the issues falling within RATEL’s
competencies;
• keeping record of public communications network and service operators;
• issuance of certificates confirming that operators are registered with the
Agency’s database of electronic communications operators;
• issuance of individual permits for the use of radio frequencies and
numbering;
• identification and the analysis of relevant markets, as well as imposing
obligations on SMP operators;
• price control and the application of cost-accounting principle
• control of leased lines and usage of infrastructure;
• interconnection, LLU
• universal service,
• radio frequency spectrum management;
• monitoring the compliance of operators with the imposed regulatory
obligations
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
5
Facts about RATEL … organization
• The Republic Telecommunication Agency became operational and began
working on 19 December 2005 and following the enforcement of the
Electronic Communications Law on 8 July 2010, continued to work as the
Republic Agency for Electronic Communications
• 3 Depatments (Regulatory Affairs, Economic Affairs and Market Analysis,
Logistics),
• At the moment, RATEL has 102 employees + 6 trainee
• Having the regulation of the electronic communications market as its aim,
RATEL adopted and published most of the required bylaws adopted in
accordance with the Telecommunication Law:
 planning, usage, control and monitoring of frequencies
 technical inspections
 standards and certificates
 service provision (Internet + data, CATV + DTH, VoIP…)
 bylaws on numbering
 Rules on Interconnection
• RATEL adopted set of 20 Bylaws under the Electronic Communications
Law.
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
6
Overview of Bylaws (1)
Title of the bylaw
Electronic
Communications Law
(hereinafter: the Law)
Status
Rulebook on radio-frequency usage fees (Official Gazette of RS,
no. 93/10)
Article 29 of the Law
Adopted
Rulebook on fees for the performance of electronic
communications activities (Official Gazette of RS, no. 93/10)
Article 29 of the Law
Adopted
Rulebook on application forms for the issuance of individual
licences for the use of radio frequencies (Official Gazette of RS,
no. 8/11)
Article 86 paragraph
5 of the Law
Adopted
Rulebook on general terms and conditions for performing
electronic communication activities under general authorization
regime
Article 37 paragraph
3 of the Law
Adopted
Numbering Plan
Article 72 paragraph
3 of the Law
Adopted
Rulebook on the form of the request for address and number
assignment
Article 73 paragraph
3 of the Law
Adopted
Rulebook on the amount of annual fee for the use of numbering
Article 29 of the Law
Adopted
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
7
Overview of Bylaws (2)
Title of the bylaw
Electronic Communications
Law (hereinafter: the Law)
Status
Rulebook on the amount of fees for the provision of services within the
competencies of the Agency
Article 29 of the Law
Adopted
Rulebook on the application of cost-accounting principle, separate accounts
and reporting of an operator with significant market power in the electronic
communications sector
Article 68 paragraph 7 of the Law
Article 71 paragraph 4 of the Law
Adopted
Rulebook on number portability on public telephone networks at a fixed
location
Article 79 of the Law
Adopted
Decision on designating relevant markets susceptible to ex ante regulation
Article 59 paragraph 2 of the Law
Adopted
Decision on the scope and manner of publication of information pertaining to
the Universal Service offer by the operator
Article 56 paragraph 3 and 4 of
the Law
Upon adoption of the Rulebook
on the Universal Service by the
Ministry – in preparation
Rulebook on the method for determining the amount of cost compensation for
the universal service provision
Article 57 paragraph 3 of the Law
Upon adoption of the Rulebook
on the Universal Service by the
Ministry – in preparation
Rulebook on the minimum content, level of detail and manner of publication of
standard offers
Article 64 paragraph 6 of the Law
Adopted
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
8
Overview of Bylaws (3)
Title of the bylaw
Rulebook on the scope and contents of the minimum set of leased lines
Electronic Communications
Law (hereinafter: the Law)
Status
Article 69 paragraph 2 of the Law
Adopted
Rulebook on manner of amateur radio station usage
Article 85 paragraph 2 of the Law
Adopted
Rulebook on the manner of radio stations usage on the national and foreign
aircrafts, locomotives, ships and other vessels
Article 85 paragraph 2 of the Law
Adopted
Upon the adoption of the new
Allocation
Plan
by
the
Government
Rulebook on the manner of radio frequency usage according to the general
authorization regime
Article 96 paragraph 3 of the Law
Rulebook on the manner of monitoring the radio frequency spectrum usage,
technical inspection procedure and protection from harmful interference
Article 98 paragraph 7 of the Law
Adopted
Rulebook on the contents of notification on the terms and conditions for
unilateral modification of terms and conditions and termination of agreement
Article 107 paragraph 3 of the
Law
In preparation
Rulebook on obligations of value added services provider
Article 108 paragraph 2 of the
Law
Adopted
Rulebook on quality parameters for publicly available electronic communication
services and monitoring of electronic communication activity
Article 109 of the Law
Adopted
Rulebook on the terms and conditions for access to and usage of the data from
a public directory
Article 121 paragraph 4 of the
Law
Adopted
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
9
Overview of Bylaws (4)
Adopted by the relevant Ministry at the proposal of RATEL
Title of the bylaw
Electronic
Communications Law
(hereinafter :the Law)
Status
Rulebook on analogue to digital switchover in TV broadcasting and
access to multiplex in terrestrial digital broadcasting
(Official Gazette of RS, no. 12/11, 55/12)
Article 104 paragraph 1 of the
Law
Adopted
Draft Rulebook on technical requirements for electronic
communications equipment of office and residential buildings **
Article 44 paragraph 1of the
Law
Adopted (in force as of 1
June 2012)
Draft Rulebook on the manner and conditions for the determination of
the zone of the electronic communications infrastructure and associated
facilities, protected areas and radio corridors and obligations of
construction and buildings investors **
Article 45paragraph 2 and
Article 46 paragraph 4 of the
Law
Adopted
Draft Rulebook on the Universal Service **
Article 55 paragraph 3 of the
Law
Adopted
Draft Rulebook on electromagnetic compatibility of an electronic
communications
network,
associated
facilities,
electronic
communications equipment and terminal equipment**
Article 47 paragraph 3 of the
Law
Draft submitted to
relevant
Ministry
adoption
the
for
Draft Rulebook on the issuance of authorizations for measuring and
testing the operation of electronic communications networks, associated
facilities, electronic communications equipment and terminal
equipment**
Article 136 paragraph 2 of the
Law
Draft submitted to
relevant
Ministry
adoption
the
for
**In line with the Law, the relevant Ministry adopts the bylaws drafted at the proposal of RATEL
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
10
INVESTMENTS IN
THE SECTOR
1000
900
800
700
600
500
400
300
200
100
0
Investments (millions of EUR)
2005
350
2006
190
2007
899
2008
362
2009
284
2010
274
2011
243
Source: RATEL
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
11
SECTOR REVENUES
1800
1600
1400
1200
1000
800
600
400
200
0
Revenues (millions of EUR)
7,2 %
2005
5,6 %
4,7 %
2006
2007
4,87 % 4,76 % 5,29 % 5,66 %
2008
2009
2010
2011
- GDP share of the telecom sector
Source: RATEL
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
12
Telecom Networks and Services (1)
Creating the conditions for competition in
fixed telephony (BB): no more monopoly !
•
License issued to: TELENOR
(February 2010)
TELENOR began operating in February 2011
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
13
Telecom Networks and Services (2)
Mobile:
• All necessary regulations in place
• Conditions fulfilled for introducing 3G mobile telephony, which
enables high-rate Internet transmission and TV signal
transmission,
• Significant cut down in prices for mobile services, plus new
services for end-users – direct consequence of competition
• Result of the open market: Vip – Vodafone exclusive strategic
partnership
• Rules on number portability in public mobile telecommunication
networks adopted (start 1 January, 2011),
• Number portability service is in operation from 1 July, 2011.
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
14
Telecom Networks and Services (3)
Opening of fixed and mobile telecoms markets
Following regulations were adopted:
•
•
•
Numbering Plan for Telecommunications Networks,
Rules on the Amount of the Annual Fee For Usage of the
Assigned Numbers and Addresses from the Numbering
Plan,
Rules on General Terms and Conditions for Interconnection of
Public Telecom Networks,

Pursuant to these Rules, SMP operators Telekom Srbija and SBB

published the Standard Interconnection Offer (SIO),
Full tariff rebalancing in done (local call and
interconnection) performed on the cost-accounting principle.
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
15
Telecom Networks and Services (4)
Stimulate competition through regulation and by launching the procedures for
introducing new technologies and services :
1. Universal service (public voice service and low-quality Internet)
 Adopted Frequency Allotment Plan for CDMA – PAMR and FWA radio
stations in the frequency bands 411-416/421-426MHz,
 registration of those interested in providing services in these bands completed,
 Rules on the number of licenses, period for which the license is issued,
minimum conditions and minimum amount of one-off license fee payable at the
issuance of the license for public telecommunications network in the frequency
band 411.875-418.125/421.875-428.125 MHz (Official Gazette of RS, no. 15/2009),
 2 Licences issued to: Telekom Srbija & Media Works (May 2009)
Telekom Srbija, TELENOR and VIP have agreed on the distribution of the
localities covered with the mobile signal, with the aim of the Universal Service
provision:
• In the first phase the US will be provided to 712 localities (1Q 2012)
• In the second phase the building costs for each of the 43 localities lacking the
appropriate infrastructure will be calculated and distributed among the
operators according to their respective market shares
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
16
Telecom Networks and Services (5)
2. Possibility of free provision of telecom services of
non-guaranteed quality
 Rules on types of radio stations for which license is not
required (Official Gazette of RS 26/07), in frequency bands
2.4 and 5.5 GHz,
 more than 130 providers registered for this type of
Internet service provision.
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
17
Telecom Networks and Services (6)
Introducing competition in wholesale services:
1. Principles on cable ducts sharing - adopted and published
2. Adopted bylaws (December 2008):
 Rules on conditions and procedure for the issuance of
authorization to a public telecom operator to
interconnect national telecom network with a telecom
network in another country (51 authorizations)
 Rules on conditions for the issuance of authorization for
public telecom networks and the contents of the
authorization (75 authorizations)
 Rules on conditions for VoIP service provision –
defining the conditions for VoIP communication
without using the numbers from the Numbering Plan
(48 authorizations)
 Article 38 of the Law: 301 authorizations
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
18
Telecom Networks and Services (7)
With the purpose of adopting necessary regulations for the
application of new technologies in cable distribution systems,
(applying satellite telecommunications for TV signal
transmission):
-DTH
(Direct-To-Home television), (3 authorizations)
-MMDS (Multichannel Multipoint Distribution Service),
-LMDS (Local Multipoint Distribution System)
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
19
Telecom Networks and Services (8)
1. In 2007 RATEL became a full member of the European
Telecommunications Standards Institute (ETSI) – direct
implementation of ETSI standards in RATEL’s work enabled
2. Standardization:
 Design instructions and the set of technical requirements
for fixed and mobile telecom systems and facilities
were adopted
 Over 9540 technical permits – certificates were issued
(cca. 5374 issued in 2010)
3. Radiation protection:
 over 1729 approvals for import of goods granted, following
the verification, mostly mobile phones, radio stations,
broadcasting transmitters, receiving antennas and
GPS devices (cca. 1692 approvals for import of
goods granted in 2010).
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
20
Broadcasting (1)
point 3, subpoint 3.1, question 2
1. Objectives:
 Resolving the issue of the limited number of broadcasters
 Significant increase of broadcasters
2. Initiative: joint work of the following institutions:
 Ministry of Culture
 Ministry of Telecommunications and Information Society
 Republic Broadcasting Agency
 Republic Telecommunication Agency.
3. Activity:
• Prepared and adopted Strategy for ASO (4 April, 2012 )
• New date ? (16 June, 2015)
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
21
Broadcasting (2)
Following the Public Tender carried out by the Republic
Broadcasting Agency (RBA) licences were issued to:
• 5 TV and 5 radio networks (257 transmitters) with national
coverage,
• 6 TV and 18 radio stations for the area of the city of Belgrade,
• 1 TV and 1 radio station for area of Vojvodina,
• 27 TV and 29 radio stations with regional coverage,
• 115 TV and 296 radio stations with local coverage.
As of 1 September 2008, RBA and RATEL have been in the
process of switching off all TV and radio stations operating
without licence
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
22
Spectrum Monitoring (1)
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
23
Spectrum Monitoring (2)
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
24
Spectrum Monitoring (3)
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
25
KEY SPECTRUM MANAGEMENT
CHALLENGES
AND
ACTIVITIES IN THE COMMING FEW
YEARS
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
26
Graphic Of The Measured Level Of Signal
For LTE 1800 Base Station
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
27
Graphic Of The Measured Level Of Signal
For LTE 2600 Base Station
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
28
Market Analysis (1)
After July 2010
RATEL submitted the following for public
consultations :
• Decision on relevant markets susceptible to
ex ante regulation
• Market analyses.
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
29
Market Analysis (2)
 The following markets have been analyzed:
•
•
•
•
•
•
•
•
•
Market 1 - Access to the public telephone network
Market 2 - Call origination on the public fixed network at a fixed location
Market 3 - Call termination on the public fixed network at a fixed location
Market 4 - Wholesale unbundled access (including shared or fully unbundled
access) to the local loop at a fixed location
Market 5 - Wholesale broadband access
Market 6 - Wholesale terminating segments of leased lines
Market 7 - Call termination on public mobile telephone network
Market 8 - Media content distribution
Market 9 - Publicly available telephone services provided at a fixed location
Decisions on designating SMP operators in all relevant markets
were adopted on 30 November 2011, SO for all markets in place
from June 1st 2012.
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
30
SERBIA OVERVIEW
• Population: 7.12 million inhabitants
(excluding Kosovo and Metohija)
• Total area: 88,361 km²
• GDP for year 2011: ca. RSD 2,883 bn.
(ca. RSD 2,837 bn. in 2010)
• Average monthly net salary in
December 2011: RSD 43,887 (ca. € 430)
(ca. €383 in 2010)
• Total income in telecommunication
market in year 2011: ca. € 1.6 bn.
(ca. €1.45 bn 2010)
• Share in GDP: 5.66% in 2011 (5.29% in 2010)
• Average EUR exchange rate: RSD 102.127 in
2011
(RSD 103.47 in 2010)
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
31
Serbian Telecom Market Overview
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
32
Fixed Telephone Network
2007
Number of
subscribers
2008
2009
2010
2011
2.854.550
3.084.872
3.105.700
3.110.339
3.030.432
Penetration (%)
38,00
41,14
41,42
41,48
42,56
Digitization rate (%)
93,31
95,52
96,95
97,85
98,54
Revenues from
telephone services
(EUR million)
414,10
413,00
360,07
421,00
446,00
Investments (EUR
million)
165,90
64,70
98,64
75,29
56,71
Source: RATEL, on December 31, 2011
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
33
Mobile Networks
2007
2008
2009
8.452.642
9.618.767
9.912.339
112,73
128,27
132,20
132,24
142,99
Number of postpaid
subscribers
1.689.193
/
2.609.526
2.983.153
3.358.912
Number of prepaid
subscribers
6.763.449
/
7.302.813
6.932.195
6.823.111
Number of 3G network
subscribers
257.379
750.026
862.935
1.291.887
2.550.038
Revenues (EUR million)
839,60
913,43
826,74
769,15
846,74
Investments (EUR
million)
210,00
240,27
148,68
132,99
138,67
Number of subscribers
Penetration (%)
2010
2011
9.915.348 10.182.023
Source: RATEL, on December 31, 2011
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
34
Cable Distribution Systems
2007
2008
694.600
922.300
Penetration (%)
9,32
12
14,42
16,63
18,7
Number of cable
operators
72
74
78
80
82
20,30
60,70
72,37
86,01
96,4
Number of
subscribers
Revenues from cable
distribution services
(EUR million)
2009
2010
2011
1.080.900 1.247.192
1.331.279
Source: RATEL, on December 31, 2011
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
35
INTERNET (1)
2007
Number of
subscribers
1.201.201
(3G subscribers
included)
2008
2009
2010
2011
1.629.387
1.705.716
2.407.390
3.828.721
Penetration (%)
16,92
21,6
22,75
32,11
52,92
Number of ISPs
159
197
199
192
232
Revenues from
Internet
services (EUR
million)
59,3
107,58
117,56
130,66
145,93
Source: RATEL, on December 31, 2011
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
36
INTERNET (2)
Source: RATEL (Annual reports submitted by the operators on 31 December for each of the respective years)
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
37
Electronic Communications
Sector
ALLOCATION OF REVENUES in 2011
Total revenues amounted to ca. €1.60 bn.
Source: RATEL (Annual reports submitted by operators on 31 December, 2010)
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
38
ICT DEVELOPMENT INDEX – IDI
•
•
•
This Index combines 11 indicators
divided into three sub-indices:
ICT infrastructure and access
ICT use (primarily by individuals,
but also households and
undertakings) and the intensity of
use
ICT skills (or human capacity
necessary for the effective use of
ICTs)
Year
IDI Index value for Serbia
Rank (total of 159
countries)
2008
4.23
53
2010
5.11
50
Source: RATEL
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
39
Future work
The Republic of Serbia has signed:
•
Declaration on Principles and Plan of Action, World Summit
on the Information Society (WSIS), Geneva 2003 – Tunis 2005,
•
Stability Pact Electronic South Eastern Europe Initiative,
Based on that, the Goverment of the Republic of Serbia adopted:
•
The National Strategy for Economic Development of the
Republic of Serbia 2006-2012.
•
The Strategy for the Development of the Information Society
in the Republic of Serbia till 2020,
•
Strategy for the Development of Electronic Communications
in the Republic of Serbia from 2010 to 2020 (new Action Plan
is yet to be prepared)
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
40
Thank you
Republic Agency for Electronic Communications
Višnjićeva 8
11 000 Belgrade
Republic of Serbia
Phone: +381 11 3229 970
Fax: +381 11 3232 537
www.ratel.rs
[email protected]
EU - RATEL Workshop, Belgrade, 12-13 June, 2012
41