Kosovo GSM Services to Liberalize in February 2007

Luan Ibraj

13 December 2006

To get an insight of Kosovo telecommunications situation, owpsee interviewed Anton K. Berisha, Chairman of Kosovo�s Telecommunications Regulatory Authority.

owpsee: How much is telecommunications dependant on Kosovo�s unresolved legal status?
Anton Berisha: The unresolved status has a negative impact on the development of telecommunications in Kosovo. As a result of this unresolved status, Kosovo is in a situation in which it doesn�t have a dedicated international telephone code (Country Code) which enables rerouting of international traffic to and from Kosovo, and its own international internet code (Country Coded Top Level Domain � ccTLD) which is directly responsible for the decrease in internet use in Kosovo.
Due to the lack of CC code, international telephone traffic uses two codes of other countries (381 � Serbia, and 377 � Monaco), which results in loss of hundreds of millions of euros from the budgets of companies and Kosovo institutions over the past years.

owpsee: Which are the greatest challenges in terms of telecommunications in the country?
Anton Berisha: I think that the main challenges are:

to reinstate the Law in the sector through complete elimination of illegal operators� activities
Liberalization of all telecommunicating services
Development and empowering of the Regulator as a guarantor and promoter of implementation of Law on Telecommunications
Fast and efficient development of telecommunications infrastructure, which would enable offering of advanced, higher-quality services for all segments of Kosovo�s society which would be a major step forward towards development of an authentic information society in Kosovo.

owpsee: How much have illegal operators contributed to this situation? Is there legal justification for their operations?
Anton Berisha: There no legal justification or grounds for operation of illegal operators, the mobile ones in particular, which abuse the limited frequency resources of Kosovo. As an outcome of their illegal operations, Kosovo has been deprived from shelling in a considerable amount of means in Kosovo�s budget, both in the form of tax evasion as well as the damage that is caused to other licensed operators. That, on the other hand, has negative effect on the quality of services on offer.

owpsee: What is the level of monopole and what are the chances for a fast liberalization?
Anton Berisha: If the different telecommunication segments are analyzed, situation is as follows:

In the internet services segment, we have a complete liberalization since 2004, through licensing of Dardanet, IPKO and Kujtesa
In the landline services, we have a practical liberalization since the end of 2006, when apart from Post and Telecommunications of Kosovo (PTK) we have licensed IPKOnet for provision of landline services. Practically, it is expected that IPKOnet starts fixed telephony operations in the beginning of 2007.
In mobile services, liberalization is expected to take place in February 2007, when we expect to license the second operator for mobile GSM services.

owpsee: How much has TRA achieved to remain independent from the political influences?
Anton Berisha: TRA has made constant effort to exercise functional independence, financial and organizational, as prescribed in the Law on Telecommunications and EU Directives and Recommendations. In this case, it is worth mentioning that in terms of budgeting, TRA 2006 budget has been approved separately, and not as part of Kosovo�s budget.
Nonetheless, there are existing problems in the area of financial independence and in terms of its functioning. At this point, TRA cooperates with European Commission bodies, but also with UNMIK and PISG�s (Provisional Institutions of Self-Governance) to achieve a satisfactory condition that guarantees an efficient and functional performance of TRA.

owpsee: How reasonable are ISP�s in providing their services?
Anton Berisha: Internet is one segment that has experienced vigorous growth compared to the other sectors, thanks primarily to authentic and true competition among existing operators and it is a practical example for the positive impacts that competition brings to market and sector liberalization.