RESTRICTED
GENERAL AGREEMENT S/NGBT/W/3/Add.20/Rev.1
21December 1994
ONTRADE INSERVICES
(94-2871)
Negotiating Group onBasic Telecommunications Original: English
COMMUNICATION FROM THE SLOVAK REPUBLIC
Response toQuestionnaire onBasic Telecommunications
Revision
Theattached communication iscirculated attherequest oftheSlovak Republic toMembers
oftheNegotiating Group onBasic Telecommunications.S/NGBT/W/3/Add.20/Rev.1
Page2
TheSlovak Republic aswellastheother countries oftheCentral andEastern Europe, isat
thestageofthetransition fromtheplanned economy tothemarket oriented economy under democratic
government.
Telecommunications aregenerally regarded asoneofthemost dynamic spheres ofthe
infrastructure whatexpressively influences theeconomic development withtheincreasing share ofthe
private sector. Thatiswhyitisinevitable toaccelerate theincreasing ofthescope andthequality
ofthetelecommunication services toensure alldemands ofmodern economics.
Former federal authorities andaftersplitting oftheCzech andSlovak Federal Republic from
1January 1993authorities oftheSlovak Republic, stated thebasictasksofthetelecommunication sector
inaneweconomic andsocial situation:
- toincrease atelephone penetration tothelevelappropriated fortheSlovak economics;
- bythemeans ofmodernization ofthetelecommunication network toimprove thequality
ofbasic network services toapproach tolevelofadvanced countries; and
- toexpand thetelecommunication sector andtoexpand thescope ofservices.
Thefirststeps created theconditions fortheachieving ofthese objectives comprised:
- toseparate thestateadministration from economical activities;
- toseparate Posts andTelecommunications;
- toseparate regulatory andoperator functions;
- tostartwiththelegaladaptations forTelecommunications; and
- demonopolization andliberalization.
Theintroduction ofcompetition canbeastrategy forachieving many oftheobjectives.
Butitmaynotbeappropriate tointroduce immediate competition intheprovision ofpublic
telephone services. Thisisbecause oftheoverwhelming needforinvestment inmodernizing ofthe
network, andthemassive funding required tocarry outthis.
Itisnecessary totakeintoconsideration, thatopening upofvoice telephony tocompetition
could obstruct thetaskofdeveloping oftheuniversal network.
Thisisinaccordance withtheEuropean Commission Directive, whorecognized, thatthe
particulartaskassignedtotelecommunicationsoperators,wastheprovisionandexploitationofauniversal
network, forwhich therevenue isderived mainly from thevoice telephony.
Thetransition tothenewfreemarket environment brings many newissues, onwhich there
isdifficult togivethecomplete respond.
Therefore oncertain questions wecannot giveanappropriated answer atthemoment.
Wehopethatyouunderstand thissituation andtakeitintoconsideration.S/NGBT/W/3/Add.20/Rev.1
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PART I
Definition andMarket Structure
Definition
1. Under regulatory regime intheSlovak Republic, thetermbasic telecommunications isnot
defined. Weconsider thatbasic telecommunications involves tobuild upandprovide transmission
paths fortransmitting ofallkinds ofinformation ontelecommunication equipment, besides distribution
ofradio andTVsignals through cables andproviding thepublic telecommunication services except
value added services.
2. Inthevalid lawthere isnodistinction, however thenewdraftsubmitted tothelegal Board
oftheGovernment distinguishes between network provider andservices supplier asfollows:
- operator oftelecommunication network -physical orlegalperson thathasbeengranted
alicence orapermission toconstitute operation andinstallation oftelecommunication
network bythecorresponding regulatory authority.
- supplier ofservice -physical orlegalperson thathasbeengranted bythecorresponding
regulatory authority alicence orapermission toprovide telecommunication services.
3. Notapplicable.
Market structure
4. Public voice services
Telegraph services
Local/long distance/international
Resale basis
Outside pay-phones operation
Mobile networks -temporary
Packet switched datatransmission services -temporary
Paging -temporary
5. Inthelawthere isnorestriction, however theSlovak Telecom, stateenterprise, isatpresent
theonlyprovider ofthepublic telecom network andsupplier ofthepublic services.
6. Atpresent itisnotpossible. After transformation theSlovak Telecom tojoint-stock company,
itwillbepossible, butnotbefore 1998.
7. (a) terminal equipments -freemarket
facsimile -notreserved
telex-notreserved
datatransmission -notreserved
mobile -temporary reserved (1996)
(b) Notapplicable.
8. Notapplicable.S/NGBT/W/3/Add.20/Rev.1
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PartII
Competition
A. Sub-sectors
(a) Voice telephone services -exclusive rights forSlovak Telecom (ST)forpublic network.
(b) Packet-switched datatransmission services -temporary exclusive rights -EUROTEL
(till1996 -afterthisterm-free).
(c) Circuit switched datatransmission services liberalized.
(d) Teleservices -liberalized, traffic ofthetelexservices decrease.
(e) Telegraph services -exclusive right-ST.
(f) Facsimile services -liberalized.
(g) Private leased circuit services -liberalized without connection tothepublic network.
(o). Other.
- satellite services -VSAT
(i) fullyliberalized
(iii) limitation -notallowed toconnect tothepublic network
(iv) equal todomestic suppliers, buteachsupplier mustberegistered intheSlovak
Republic
(v) Licence procedure
- cellular mobile networks andservices analogue: EUROTEL exclusive rights for20
years (2011) for450MHz
- digital:
(i) 1995 tender forGSM (900MHz)
(iii) tender for2suppliers
(iv) equal treatment eachoperator must beregistered intheSlovak Republic
(v) 1995 -1996 issue licences
- paging -exclusive rights (1995) -joint-venture between former Administration of
Radiocommunication Bratislava andTeleDiffusion deFrance
(i) 1995 -tender -lookforthesecond operator forpublic paging.S/NGBT/W/3/Add.20/Rev.1
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(iv) equal treatment.
(v) 1995issuing licence eachoperator mustberegistered intheSlovak Republic.
- audiotex, videotext -liberalized
B. Categories
Local/long distance/international ST-exclusive rights.
1. Notapplicable.
2. Notapplicable.
Radio-based
Re-sale basis
3. Notapplicable.
4. Notapplicable.
Facilities-based
5. Basictelecommunicationssupplier:STconstructsandoperatesitsownnetworks.Itispermitted
forauthorized organizations toconstruct basic telecommunications network infrastructures.
Public/non-public supply
6. Notapplicable.
7. Public voice telephone services, telegraphic services.
8. Notapplicable.
9. Cover allcountry withbasic telecommunication services, increase thedensity ofmain lines
(under licence forST).
10. Norestrictions (permission).
11. SThastheexclusiverightsforoperationofoutsidepublicpay-phones.Operationinsidebuilding
isliberalized (permission).
PART III
Regulatory issues
Relationship between regulatory andoperational functions
1. No.S/NGBT/W/3/Add.20/Rev.1
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2. Yes.
3. MinistryofTransport,CommunicationsandPublicWorksisresponsibleforregulationaffecting
basic telecommunications.
Frequency allotment orassignment
4. Frequency allotment orassignment iscontrolled byradio communications regulations,
international recommendations ofCEPT andinterdepartmental agreements.
5. Notapplicable.
Numbering andidentification codes
6. International Country code(telephone, telex) isdetermined andapproved byITU. Numbering
scheme fortelecommunications services intheSRarecovered byaregulation andaredetermined by
thetechnology used.
7. Notapplicable.
Standards, typeapproval andequipment attachment
8. Notapplicable.
9. Notapplicable.
10. Only approved equipment canbeconnected (directly orindirectly) totheterminal point of
telecommunication network. There isaspecial legalregulation defining conditions andtheprocess
ofverifying, approval andconnection ofthisequipment. Self-certification isnotallowed. Equipment
from abroad must beinvolved intheprocess ofthecertification, aswellaseachhome equipment
connected withthetelecom network.
Mutual recognition agreements fortelecommunications equipment -notyet.
11. Notapplicable.
12. Only ST.
13. Yes.
Interconnection
14. Under valid law,theinterconnection isnotspecifically regulated. Private networks canbe
builtupbytheform ofleased circuits, orbyuseofownnetwork. Interconnection withthepublic
network isallowed.
15. Theregulatory authority upon granting thelicences andpermission foroperation oftelecom
networks ortelecom services, isobliged totakeintoaccount theability oftheapplicant tocreate
conditions forobserving theaspects ofgeneral interest.
16. Notapplicable.S/NGBT/W/3/Add.20/Rev.1
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17. Regulation regarding thepricing ofinterconnection willbeaddressed during nextyear.
Competitive safeguards
18. Nocompetition inbasic telecommunications.
19. Thefirmhasadominant position onthemarket when itcontrols andsupplies 40andmore
percent ofamarket. These firms arechecked bytheAntimonopoly Office ofSRtodetermine whether
theynotmisuse theirmarket position.
20. Notapplicable.
21. Notapplicable.
Pricing-related measures
22. According toexisting legislation, tariff policy fordomestic telecommunication operation is
determined bytheMinistry ofFinance. Tariffs ofthebasicpublic telecom services havebeenprepared
bytheoperator. After discussion attheMinistry oftransport, Communications andPublic Works,
theproposal oftariffs hasbeensubmitted totheMinistry ofFinance. Having reached theagreement
between theministries, theMinistry ofFinance willissue afinaldecision.
26. Atpresent thereisaprepared proposal frominternational consulting companies recommending
theformula (taking intoaccount inflation) foruseasthebasic regulatory method forprice regulation.
27. Notapplicable.
Rights ofwayforconstruction ofinfrastructure
28. ST-Yes.
29. Notapplicable.
Newtelecommunications services
30. There isnotyet.
31. Regulatory body (Ministry ofTransport, Communications andPublic works).