INSTITUCIONET E PËRKOHSHME VETËQEVERISËSE
PRIVREMENE INSTITUCIJE SAMOUPRAVLJANJA
PROVISIONAL INSTITUTIONS OF SELF - GOVERNMENT
Autoriteti Rregullator i Telekomunikacionit
Telecommunication Regulatory Authority
Regulativni Autoritet Telekomunikacije
TRA Guide for Potential Entrants to Telecommunications
Sector
(Regulation, Policy and Licensing)
Prishtina
May 2006
TRA Guide on Regulation, Policy and Licensing
TRA GUIDE FOR POTENTIAL ENTRANTS TO TELECOMMUNICATIONS SECTOR
INTRODUCTION
ESTABLISHMENT, FUNCTIONS, POWERS AND STRUCTURE OF TRA
ESTABLISHMENT
DUTIES
STRUCTURE
POWERS
LICENSING OF ENTRANTS TO KOSOVO TELECOMMUNICATIONS SECTOR
QUALIFICATIONS
NATURE OF LICENSING
SPECIFIC LICENSES TO BE OFFERED
CHARGES TO LICENSEES BY THE TRA
EXISTING LICENSED OPERATORS
LICENSES ISSUED TO PTK
CERTAIN RIGHTS AND OBLIGATIONS OF PTK AS A LICENSEE
TIMING OF PROVISION OF SERVICES UNDER OBLIGATIONS PLACED ON PTK
LICENSES ISSUED TO IPKONET LLC
LICENSES ISSUED TO KUJTESA LLC
LICENSING OF SERVICES BASED ON NEW TECHNOLOGIES
VOIP SERVICES
CABLE SERVICES
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TRA Guide on Regulation, Policy and Licensing
TRA Guide for Potential Entrants to Telecommunications
Sector
Introduction
This guide is published for the information of those that contemplate entry to the
Telecommunications sector of the Kosovo.
The Telecommunications Regulatory Authority (TRA) welcomes interest from potential
entrants.
The guide seeks to inform in straightforward terms. It makes reference to the
Telecommunications Law (Law on Telecommunication UNMIK/REG 2003/16). Nothing
in the guide shall be construed to conflict with, or amend, the Telecommunications Law
and the guide remains subject, in all respect to the Telecommunications Law. The TRA is
not bound by the guide and may update, refine and amend this guide from time to time.
Potential entrants should separately familiarize themselves with the Telecommunications
Law, which came into effect on 12 May 2003.
The Telecommunications Regulatory Authority recognizes that certain issues are of
prime importance in making decisions regarding entry to a market that is in the process of
liberalization:
 The strength and degree of independence of market regulation
 The policies applied in the award of licenses and the nature of the licensing
regime that is applied to entrants and Post and Telecommunications of Kosovo
(PTK).
 The timing of liberalization measures
These matters are explained in this guide.
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Establishment, functions, powers and structure of TRA
Establishment
The Telecommunications Regulatory Authority (TRA) is created by the
Telecommunications Law. The Telecommunications Law came into effect on 12
May 2003.
The Telecommunications Law enables the liberalization of the telecommunications
sector, notably by providing for the progressive ending of the de facto monopoly of
supply that was held by Post and Telecommunications of Kosovo (PTK) until the
Telecommunications Law came into effect.
The Telecommunications Law requires the TRA to regulate telecommunications services
in Kosovo, by fairly exercising its powers within the Telecommunications Law, and to
this end requires that the TRA be financially and administratively independent.
Duties
The Telecommunications Law requires the TRA to carry out its duties and exercise its
powers in order to:
 protect the interests of subscribers and users in respect of tariffs charged for
services, availability and quality of services and protection of privacy;
 promote effective and fair competition among new and existing licensed
operators; and
 ensure, when assessing applications involving provision of public
telecommunications services, that any applicant or any person to whom any such
service is licensed to be provided, shall be able to provide those services.
In addition, the TRA is required to consult with the Ministry of Transport and
Telecommunications in the development of ongoing policy for the telecommunications
sector.
Structure
The TRA is structured in manner that ensures its independence:
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The TRA is managed by a Board, which has a supervisory role.
The powers of the TRA are primarily exercised by a Chairman.
The Chairman has the final authority in the exercise of the powers of the TRA,
except where the Telecommunications Law specifically states otherwise.
The Telecommunications Law contains provisions that ensure the independence
of Board members and the Chairman and his staff.
The TRA will endeavor to act in a manner that determined by the Law, provided
that this does not derogate from the independence of the TRA.
Except in emergency cases, the TRA shall, when determining to take measures
that will have a material effect on a particular telecommunications market, give
interested parties the opportunity to give their opinions as to such measures.
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TRA will be financially independent. Except in its formation period, the activities
of the TRA will be financed by fees, charged to licensees and others.
Powers
The remit of the TRA extends to the issuing of regulations, orders and determinations
necessary for the implementation of the provisions of the Telecommunications Law
relating to:
 Technical standards and rules,
 licenses and payment of license fees,
 licensing,
 frequency migration,
 accounting separation,
 interconnection,
 access to any network and its facilities,
 services tariffs,
 numbering,
 ‘universal service’,
 the promotion of competition,
 equipment type approvals,
 compliance with license conditions and all other matters covered by the
Telecommunications Law.
and specifically the TRA will:
- Monitor and investigate compliance with the telecommunications law
On its own initiative, and at the request of any person, and will make orders and
determinations to ensure compliance, including ordering a licensee to be reconstituted
into two or more entities;
- Grants licenses and gives final decisions as to applications for licenses
- Monitor and enforce compliance with license terms by licensees
- Propose and effect modifications to licenses where appropriate
- Set and collect license fees, fines and payment for services provided by the
Authority
- Administer radio frequencies used in telecommunications
Encompassing:
 preparation of the national frequency plan as it applies to telecommunications
frequencies;
 co-coordinating telecommunications frequency assignments with the competent
authorities of other countries;
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publication of a national register of telecommunications frequency allocations and
regulations related to telecommunications frequencies;
licensing telecommunications frequencies to licensed operators in accordance
with the national frequency plan;
enforcing the use of telecommunications frequency in the Kosovo to ensure
efficient use;
- Prepare the national numbering plan and assign numbers to licensed operators
- Encourage, regulate and facilitate adequate access, interconnection and
interoperability:
Including, where necessary, enforcing the sharing by certain public telecommunications
operators of the benefit of facilities and property;
- Monitor, and, where required, set tariffs
Encompassing:
 The review of tariffs to ensure that they are fair and reasonable,
 The development of formulae, tariff rebalancing plans and other measures for
tariff controls for inclusion in telecommunications licenses where appropriate and,
 The determination of tariffs, if necessary, including, without limitation, by
benchmarking tariffs charged by a licensee against tariffs in comparable
telecommunications markets and determining the future incremental costs of
providing a telecommunications service;
- Approve equipment for connection
Encompassing:
 The adoption and publication of technical specifications and standards for the
import and use of telecommunications equipment and for connecting
telecommunications equipment to telecommunications networks and for
interconnection;
 The issue of approvals or to entrust approvals to others, for the use of
telecommunications equipment for which no relevant technical specifications or
standards have been issued by the TRA;
- Intervene in disputes
Encompassing:
 The examination of complaints and resolution of disputes arising between
licensees, subscribers and any other person involved in the telecommunications
industry, and the taking of any necessary and proportionate measures in relation
to the matters;
- Take any necessary further actions to fulfill its duties
Including:
 The exercise of all other powers granted by the Telecommunications Law and
asking all other actions as may be reasonably necessary to give effect to the
powers and activities described above.
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Licensing of entrants to Kosovo telecommunications sector
The TRA recognizes that potential entrants to the Kosovo telecommunications market
must be concerned
with, amongst other matters:
 Qualifications of licensees
 The nature of licensing to be applied to entrants
 The nature and level of fees to be charged by the TRA
Qualifications
All licensees must be Kosovo domiciled or appropriately registered branches of foreign
entities. Kosovo domiciled entities may be, however, foreign owned.
A licensee must locate substantially all infrastructure associated with the provision of
services in Kosovo, within Kosovo. It shall further maintain all operational activities
associated with the provision of services within Kosovo, in Kosovo. The licensee shall be
free to outsource or sub-contract to third parties any of the above elements, provided that
such elements are provided or carried out, within Kosovo. The TRA shall have the power
to waive the requirements only in the event that direct benefit to users of service can be
evidenced and assured.
Nature of licensing
There will be two types of operating licenses to provide services and to establish and
operate telecommunications networks:
 Individual licenses for networks and services which require access to scarce
resources, (such as radio frequency spectrum or numbers) or which fall into one
of the license categories specified in section 22 of the Telecommunications Law.
In general, the TRA must be satisfied that an applicant for an individual license
has sufficient resources, skills and expertise to put the scarce resources underlying
an individual license to efficient use. Individual licenses must also be awarded in
manner that will facilitate the promotion of competition among licensed operators
and serve the interests of subscribers and users in Kosovo.
 Class licenses for all other licensees, such as an Internet Service Provider license
and a Value Added Service license. In general, the application process in relation
to these fully liberalized services, which do not involve scarce resources, will be
simple and facilitate ease of entry into the market.
A telecommunications license is personal and may not be assigned to a third party
without the prior written consent of the TRA.
Specific Licenses to be offered
The TRA will offer and, if appropriate applicants are found, award licenses in the
following areas, to the timetable indicated in each case. If suitable applicants for licenses
are not found then the TRA may vary the timetable for award and again offer licenses:
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1. Mobile telecommunications license
Additional GSM license. The license, if issued, will be accompanied by a separate
frequency license to use necessary radio access frequencies.
The licensee must compete with PTK by means of its own radio access
infrastructure. The licensee may, however, for a period, supply services by roaming
onto the PTK network, and, may share certain elements of infrastructure with
PTK.
The licensee may provide its own fixed backhaul network elements, associated with the
provision of mobile telecommunications. For this purpose the licensee may use radio
(separately licensed), utilize the ducts and facilities of PTK, or, purchase services
from other licensed operators.
Under the mobile telecommunications license, the licensee may provide both domestic
and international services to customers that connect approved mobile equipment to its
network. It may connect its network to networks outside Kosovo by means of circuit
based services purchased from appropriately licensed operators, for the purpose of
facilitating the provision of international services to its mobile customers in Kosovo.
The TRA retains the right to offer further mobile telecommunications licenses, for the
provision of mobile telecommunication services, including third generation (3G) mobile
services, pursuant to national telecom sector policy objectives and availability of
appropriate frequency spectrum.
2. Mobile virtual network operator (MVNO) license
One or more Individual licenses may be granted, at the discretion of the TRA, pursuant to
national telecom sector policy objectives.
Individual licenses will permit the provision of mobile services to end users through
technical interconnection with, and access to, the radio-communications facilities of
Mobile licensees under which the MVNO creates a separate network identity, takes a
significant measure of control over the supply of service, and enters into contracts with
users of the services in its own name.
3. VSAT License
One or more Individual licenses may be granted at the discretion of the TRA.
The only restriction on the number of licenses shall be the availability of appropriate
radio frequency spectrum and co-ordination arrangements with neighboring states.
4. Paging license
One or more Individual licenses may be granted.
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The only restriction on the number of licenses shall be the availability of appropriate
Radio frequency spectrum.
5. Public access mobile radio service license
One or more Individual licenses may be granted.
The only restriction on the number of licenses shall be the availability of appropriate
radio frequency spectrum.
6. National fixed service license
One or more Individual licenses may be granted.
Individual licenses will be issued to provide for the provision of any ‘fixed’ service
within Kosovo by means of a network constructed by the licensee. Recipients of licenses
must have provided details, prior to award, of network construction and technology use
intentions.
In addition, licensees may deploy alternative technologies to gain access to customers.
Radio frequencies may be allocated, if available and considered appropriate by the
TRA, to facilitate any radio based access or point-to-point link deployment.
Licensees shall have the right of connection to other licensed networks that are licensed
in Kosovo, and shall not be given exemption from zoning or planning requirements.
7. International facilities license
One or more Individual licenses may be granted.
Individual licenses will be issued to provide for termination/landing/establishment in
Kosovo, by the licensee, of physical means of provision of international connectivity.
Activities such as the landing of fiber optic cables and international radio links are to be
covered by such a license.
Licensees shall have the right of connection to other licensed networks that are licensed
in Kosovo, but the provision of services by means of the established facilities shall be
by means of the International Services License.
8. International Services License
One or more Individual licenses may be granted.
Individual licenses will be issued to provide for the provision by the licensee of
international services, both voice and data, employing physical traffic-aggregation plant
deployed in Kosovo by the licensee. Such plant may be connected to other
telecommunications networks for the provision of service.
Licenses will be withdrawn if the licensee does not continue to meet physical traffic
aggregation plant criteria. For the avoidance of doubt, simple international re-sale is not
permitted.
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9. Internet Service Provider (ISP) licenses and Value Added Service (VAS) licenses
Class licenses for these services and other services that require a class license will be
granted as soon as practicable.
Licenses will be issued to any qualified entity that intends to provide services to third
parties. The ISP license will contain a provision that prohibits the offer by the ISP or any
other party of the supply of international voice services unless an International
Service License is also taken. Voice calls over the Internet that are originated by ISP
customers cannot presently be policed and no obligation to prevent its use will be
imposed on ISPs.
Charges to licensees by the TRA
Except in its formation period, the TRA shall be financially independent.
The TRA will charge license application, initial and renewal fees. The level of
application and initial fees will be notified within any documentation related to
invitations to apply for licensees. This has been also presented in the table below.
Types of licenses issued by the Telecommunications Regulatory Authority
license
Availability
Initial Fee
Renewal Fee
Mobile Telecommunications
Two operating licenses have granted (to Vala 900 and to
license
Mobikos) Additional licenses may be granted in the future,
This license allows provision of
including third generation (3G) services, pursuant to
mobile Telecommunications service national telecom sector policy objectives
by its own network
Paging Service license
Available since
This license allows the commercial September 2005
used of paging services to
subscribers
No restriction on
number of licenses
available
VSAT license
Available since
This license grants the use of Very September 2005
Small Aperture Terminal, a digital
satellite data network with small
No restriction on
antenna diameter, for private use number of licenses
only
available
€ 12, 500 1% of gross annual
turnover attributable to
licensed activity
€ 12, 500
1% of gross annual
turnover attributable to
licensed activity
Public Access Mobile Radio
Service license
This license allows the use of
Public Access Mobile Radio in
dispatch applications (e.g. by truck
and taxi fleets.)
€ 12, 500
1% of gross annual
turnover attributable to
licensed activity
€ 50, 000
1% of gross annual
turnover attributable to
licensed activity
Available since
September 2005
No restriction on
number of licenses
available
Available since
September 2005
International
Telecommunications Facilities
license
This license authorizes the
No restriction on
termination/ landing/ establishment number of licenses
of international connectivity and
available
obligation and right to connect to
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other Kosovo licensed networks
International
Telecommunications Service
license
This license allows the provision of
international voice and data
services with requirement to deploy
physical traffic aggregation
structure
National Fixed Services license
This license allows the provision of
national fixed voice and data
services by its own network.
Available since
September 2005
€ 35, 000
1% of gross annual
turnover attributable to
licensed activity
€ 87, 500
1% of gross annual
turnover attributable to
licensed activity
€ 5, 000
1% of gross annual
turnover attributable to
licensed activity
€ 2, 500
1% of gross annual
turnover attributable to
licensed activity
No restriction on
number of licenses
available
Available since
September 2005
No restriction on
number of licenses
available
Internet Service Provider license Available since
This license allows the provision of September 2005
internet services but not including
voice.
No restriction on
number of licenses
available
Value Added Services license
Available since
This license allows the provision of September 2005
services over an exiting network
No restriction on
(e.g. card services)
number of licenses
available
The TRA will charge annual license fees based in the case of an individual license on
the gross annual turnover of the licensee resulting from the license, provided that the
fees do not exceed one percent (1%) of such gross annual turnover.
The TRA will charge fees for class licenses at levels specified in the license.
The TRA will charge for any specific services that it provides and will advise the basis of
charge before the provision of the services.
In circumstances of defaults or other acts or omissions specified by the
Telecommunications Law or a license, the TRA will, amongst or associated with other
remedies, impose fines on licensees. Such fines shall not be considered to be a normal
source of revenue.
The TRA will establish fees at levels that are reasonable in relation to
 the cost of administration and regulation of the licensed service, and
 the value of the licenses in the market, with due regard to the fact that scarce
resources must be used efficiently.
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Existing licensed operators
Entrants should acquaint themselves with the terms of the existing licensed operators,
which have been issued with licenses prior to adoption of the new licensing regime in
September 2005. This includes three licenses issued to PTK JSC (Fixed, mobile and ISP),
as well as ISP licenses issued to IPKONet LLC, and Kujtesa LLC.
This guide seeks only to inform as to the nature and extent of the rights and obligations of
PTK and other licensed operators. The guide must not be construed as in any way being
in conflict with or altering license terms. Nor must the guide be construed as limiting any
right of action that properly lies with the TRA under the Telecommunications Law.
Licenses issued to PTK
PTK is required to organize its business operations into units that specifically address
lines of activity that require to be separately licensed. Those units must account
separately for their activities, using generally accepted accounting principles, and conduct
business with each other on the same terms as apply to other licensed operators. Within
this context, PTK has been issued following licenses:
 National fixed services license (30 July 2004);
 Mobile telecommunications services license (30 July 2004);
 Internet service provision license (18 May 2005).
These three licenses, although not explicitly issued, cover also International
Telecommunications Services License and International Facilities License, which can be
issued to potential entrants under new licensing regime.
All licenses are personal to PTK.
Certain rights and obligations of PTK as a licensee
1. Interconnection and access
PTK will provide interconnection services to other public telecommunications
operators (a licensed operator authorized to provide public telecommunications services
or to operate a public telecommunications network under an individual license), which
shall permit them to connect telecommunications networks to that of PTK. Such
public telecommunications operators shall have a reciprocal obligation to permit
connection by PTK.
Following a determination of their dominance in any defined market, operators are
required by the TRA to publish a reference interconnect offer (RIO). This document
governs the way in which interconnect is offered, priced and managed. PTK is
adjudged to be dominant in the fixed and mobile markets, and therefore, it is obliged to
issue a RIO to be approved and, from time to time, reviewed by the TRA.
A similar regime applies in relation to access and unbundling of local loops (as defined in
the Telecommunications Law). In this instance, the TRA may prescribe regulations
requiring access to be provided pursuant to a reference access offer (RAO) and Reference
Unbundling Offer (RUO).
The main elements of interconnect and access arrangements, applicable to PTK, are:
 it will provide ‘unbundled local-loop’ services to licensees, and provide
equipment co-location and connection facilities for other licensees at switching or
other appropriate points in its network.
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it will provide access to its duct systems to other public telecommunications
operators, within which those licensees may install cables, wires and directly
associated equipment, for the purpose of providing communications or
entertainment services to third parties. PTK shall provide such access only in the
event that the TRA is satisfied that substantive demand exists for such a service.
The needs of entrant mobile telecommunications licensees shall be taken to
represent substantive demand.
it will provide services, whereby its customers may pre-select the licensees that
shall provide further services to the customer.
2. Other rights and obligations
Other rights and obligations are:
 PTK will be permitted to change tariffs for its services with prior approval by the
TRA. The TRA may seek additional information from PTK and request that
tariffs are based on the cost of providing the service.
 PTK to provide ‘domestic roaming’ rights to other licensed mobile operators for a
period of approximately one year to permit entrants to become active in the
mobile market whilst their own networks are built and developed.
 PTK will facilitate ‘Number Portability’ with other licensed operators, in the
event that the TRA is satisfied that substantive demand exists for such a service.
In accord with Government policy the TRA requires that all public telecommunications
operators that enjoy significant market strength (power) (as that term is defined in the
Telecommunications Law) should assume a universal service obligation. Under this
obligation all citizens will be afforded access to basic public telephone services, which
enable any person in Kosovo requesting such service to make and receive local and
international calls that support
 speech,
 facsimile and
 data.
The services are to be provided at the prevailing standard rates of the operator. Telecom
Law specifies that SMP status is determined if an operator has more than 25% of the
market share for a telecommunication service. Under this provision PTK is determined to
have SMP status, and universal service obligations apply to PTK.
Timing of provision of services under obligations placed on PTK
PTK, as a licensee with significant market power would introduce services as
follows:
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Carrier pre-selection: To be determined in consultation with PTK. No later than
June 2007.
Number portability in fixed services: To be determined in consultation with
existing operators, and when the TRA determines that sufficient demand exists for
such a service;
Number portability in mobile services: when the TRA is satisfied that sufficient
demand exists for such a service;
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Wholesale services: from 1st of January 2007
Unbundled local loop: from 1 of January 2007
Publishing and approval of PTK RIO: September 2006
Access to telecommunications facilities, - including, DSL collocation, fiber that
is not in service or only partially in service and, where the TRA so determines,
ducts: from 1st January 2007
Licenses issued to IPKONet LLC
IPKONet LLC has been issued a Tier-1 Internet Service Provider License on the 18th
May 2005.
Under the new licensing regime (September 2005), this license would be equivalent to
Internet Service Provider License and International Telecommunications Facility
License.
This means that if IPKONet decides to offer any new telecommunications service, which
is not covered by these two licenses, it has to go through an application process for new
licenses.
Licenses Issued to Kujtesa LLC
Kujtesa LLC has been issued a Tier-1 Internet Service Provider License on the 18th May
2005.
Under the new licensing regime (September 2005), this license would be equivalent to
Internet Service Provider License and International Telecommunications Facility
License.
This means that if Kujtesa decides to offer any new telecommunications service, which is
not covered by these two licenses, it has to go through an application process for new
licenses.
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Licensing of services based on new technologies
VOIP Services
TRA in line with best EU practices treats VoIP (Voice over IP) as a technology, rather
than as telecommunications service.
VOIP technology can enable provision of different services, between two different users,
and not always these services require specific regulation through authorization and
licensing regime.
VOIP technology can be used to enable following:
A. Free of charge, private peer-to-peer communications between two users in the
internet (PC-to-PC communications, including data, voice and video, example
include Skype Classic, Windows Messenger, Yahoo Messenger, etc);
B. Transmission of data and voice using IP in the carrier backbone networks;
C. Chargeable voice communications between an Internet user (IP phone or PC enduser device) and public PSTN end-device (IN and OUT)
D. Public telephone (part of PSTN) to public telephone (part of PSTN) (usually for
international traffic) via a VOIP gateway and private IP (or public Internet)
backbone.
E. IP phone-to-IP phone, in the context of provision of public and chargeable
telecommunications service by a VOIP telephony provider
In deciding, which services and how they should be regulated, TRA takes into
consideration following:
 Law on Telecommunication – section 21 and 22, which describe authorization
and licensing
 Principle of technological neutrality – in line with EU regulation and best
practices. This means regulating telecommunications services, irrespective of the
technology used to implement those services;
 Current licensing and authorization regime – authorizations and licenses approved
by TRA, to be issued to potential operators of telecommunication services and
networks.
In view of above considerations, only services falling under category A, are not regulated
and do not require authorization from the TRA.
Other category of services would require authorizations and licenses to be issued by
TRA.
For services under B, usually a telecom operator would hold some specific
authorization, such as authorization for the provision of national fixed telecom services,
or authorization for the provision of mobile telecom service. In that case telecom operator
(provider) doesn’t need any additional authorization or license.
For services under C and D, typical example would be the provision of international
voice telecommunication services via pre-paid cards, using access from PSTN phones to
a VOIP dialup gateway, using Internet access on the backend from a licensed ISP
provider. This would require an International Telecommunications Services License and
Value Added Services License.
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For services under E, typical example would be the case where users would have their
own PSTN numbers, and IP phones would have access to PSTN phones as well via a
interconnection with public telephone companies. In this case provider of such services
would require authorization for the provision of National Fixed Telecom Services and
International Telecommunications Services license, and / or Value Added Services
License.
A more detailed description of the VOIP technology and regulatory aspects of VOIP
under current primary and secondary legislation will be explained in more detail in a
separate TRA’s position paper on VOIP.
Cable TV Services
Authorization and licensing regime for Cable TV operators has not been completed as
yet.
There are three issues in terms of regulating Cable TV Operators:
 Authorization of content
 Authorization of building the network
 Authorization of telecommunications services through Cable TV network
There are provisions on the Telecom Law and Independent Media Commission Law
which pretend to regulate the same matter.
TRA and IMC are expected to reach and Memorandum of Understanding on coordinating
authorization and licensing activities, as far as broadcasting frequencies and Cable TV
operators.
According to EU legislation and best practices, which is a view adopted by TRA, on the
issue of Cable TV Operators, IMC should authorize content, while authorization for
building network (including rights of way) and authorization to offer telecommunications
services using Cable TV network should be issued by TRA.
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