Update to the contribution to the progress report on the process of accession of the republic of macedonia to the european union

3.10INFORMATION SOCIETY AND MEDIA

1.1. ELECTRONIC COMMUNICATIONS AND INFORMATION TECHNOLOGIES
COMPETITION AND LIBERALISATION OF THE ELECTRONIC COMMUNICATIONS MARKET IN THE REPUBLIC OF MACEDONIA

1. 
   Amendments to the Law on Electronic Communications have been adopted (Official Gazette of RM 98/2008 from 04.08.2008). These amendments provide termination of the current Concession Agreements, additional regulation of the legislation related to the number portability, and abolition of the right given to the Commission of Electronic Communications to decide in secondary appeal procedure, i.e. introduction of the right of legal protection against the decision of the Director of the Agency for Electronic Communications. In addition, before reaching a decision, the Director will send warning notice to the operator to remove a violation. Thus, the appeal procedure is harmonized with Article 4 of the Framework Directive 2002/21/EC.
   

2. 
   Amendments to the Broadcasting Law have been adopted. These amendments envisage 37% decrease of the broadcasting fee that is expected to result in increase of payment rate. An option is introduced to the Law related to regulation of the case of eventual bankruptcy or liquidation of the public broadcasting entity which represents alignment with the Law on Trade Associations regarding the conditions and procedure for liquidation. In addition, an option has been introduced for additional financing of the public service from the Budget of the Republic of Macedonia for creation of efficient and functional public broadcasting service. Considering the remarks about the bankruptcy possibility of the Public Service Broadcaster, the Government reiterated that the existence of a PSB in undisputable. The Government established an inter-ministerial working group to address options for consolidation of the existing PSB.
   

3. 
   After termination of the Concession agreements, Agency for Electronic Communications started the procedure for regulation of the retail prices of public electronic communications services according to the Article 43 of the Law on Electronic Communications towards implementation of mandatory measures for protection of the competition that are to be applied to the operators with significant market power as envisaged in the Article 146 of the Law on Electronic Communications.
   

4. 
   Set of amendments are made to the Law on Construction, Law on Building Land and Law on Spatial and Urban Planning that provide minimising administrative barriers related to construction of telecommunication infrastructure as well as regulation of construction of this type of infrastructure.
   

5. 
   In July 2008, the Parliament of the Republic of Macedonia adopted the National Strategy for Electronic Communications and Information Technologies. The Government of the Republic of Macedonia adopted Action Plan for implementation of the National Strategy for Electronic Communications and Information Technologies and the institutions have already started the implementations the measures provided in the Action Plan.
   

6. 
   Currently, Broadband Strategy is being drafted and it would provide implementation of set of measures towards faster broadband penetration in the country. A conference with the stakeholders, universities and all the relevant institutions is organised introducing inclusive and interactive web-based platform this strategy will be drafted on.
   

7. 
   Referent Interconnection Offer by Makedonski Telekomunikacii JSC as operator with significant market power on markets for fixed voice telephone networks and services, envisaged by the Article 146 Paragraph 1 of the Law on Electronic Communications, was approved by the Agency in January 2006.
   

In July 2007, Agency obliged Makedonski Telekomunikacii JSC to alter the Referent Interconnection Offer. Amendments provide minimizing conditions by Makedonski Telekomunikacii JSC related to the partner-operators about obligation to design their electronic communication networks according to the network of Makedonski Telekomunikacii JSC. The amendments provide, from the technical aspect, freedom to other operators to design their electronic communication networks according to their business plans, and not according the design of the network of Makedonski Telekomunikacii JSC that requires big and long-term investments and is based on the old transfer technology with circuit commutation. The amendments, from economic aspect, abolished proportion of interconnection prices between Makedonski Telekomunikacii JSC and other operators, thus decreasing the influence of the Makedonski Telekomunikacii JSC on pricing policy (to use the wholesale services prices to dictate retail service prices) of the other operators.

Regarding the control of the interconnection prices and control of the unbundled access to local loop, in June 2007, the Agency prepared and published Manual for preparation of cost based model in LRIC methodology for Makedonski Telekomunikacii JSC as operator with significant market power. According to this Manual, Makedonski Telekomunikacii JSC submitted to the Agency prices for services included in the Referent Interconnection Offer and Referent Unbundling Offer calculated by cost based model according to the LRIC methodology.

In April 2008, the Agency finished analysis of the cost model for price calculation in Referent Offers to determine whether the prices are based on real costs. With the analysis of the prices in Referent Interconnection Offer, the Agency determined that Makedonski Telekomunikacii JSC should decrease the prices as following:

Basic traffic services	Cost per one minute traffic
	Normal tariff (MKD den)	Cheap tariff (MKD den)
Local call origination	0,43	0,29
Regional call origination	0,63	0,42
Local call termination	0,43	0,29
Regional call termination	0,63	0,42
National call termination	0,88	0,58

According to the Article 48 Paragraph 6 of the Law on Electronic Communications, Makedonski Telekomunikacii JSC requested authorised auditor to determine the accuracy of the cost calculating system. The final audit report of the authorized auditor confirmed the prices determined by the Agency for Electronic Communications. In addition, the prices for one-time fees were decreased. Makedonski Telekomunikacii JSC submitted the Referent Interconnection Offer for approval on 23.05.2008. Because price amendments according to the audit report were implemented into the Referent Interconnection Offer, the Agency passed the Approval Nr. 02-102/3 on 23.05.2008 that approves the alteration of the Referent Interconnection Offer.

Acting upon this approval, Makedonski Telekomunikacii JSC on the corporate website has published the new interconnection prices. New interconnection prices were implemented from 01.06.2008.

Amendments of the Referent Interconnection Offer approved by the Agency on 26.05.2008, enable interconnection partner of Makedonski Telekomunikacii JSC to provide local calls for the Makedonski Telekomunikacii JSC subscribes through the operator choice service, thus providing greater competition and implementing new and more attractive and diverse services on the public fixed telephony service market.
Regarding the protection of competition and providing better advantages for end users, on 11.06.2008 the Agency passed Decision obliging Makedonski Telekomunikacii JSC to make amendments to the Referent Interconnection Offer. With these amendments, Makedonski Telekomunikacii JSC is obliged to give all its subscribers regardless the tariff model they have a choice for operator selection and operator pre-selection to use the alternative operator’s services for outgoing, local, national, international calls and calls to mobile phones. This is not applied only to those subscribers that will use minimal set included in the universal services and approved by the Agency.
Upon the Referent Interconnection Offer nine interconnection agreements have been concluded so far between Makedonski Telekomunikacii JSC and: On-Net, Akton, Nexcom, Matel MK, Neotel, VIP operator, Infel Netplus – Ohrid, Cosmofon fixed telephony and Aicall – Shtip. Very important thing is conclusion of the Interconnection Agreements for providing fixed and mobile services between Cosmofon JSC with Makedonski Telekomunikacii JSC, with T-Mobile and VIP Operator thus opening possibility Cosmofon and Ontel to start offering fixed telephony services (local and national calls) and their prices are cheaper than the prices of Makedonski Telekomunikacii JSC.
The Rulebook on level of details for information to be published in the referent interconnection offers and the manner of their publishing in order to provide greater protection of the competition and creating better working condition for the alternative operators was revised. All the relevant remarks by the operators have been considered and it is submitted to the Commission for electronic communications for adoption.

8. 
   Due to effective fulfilment of the obligation for separate accounting for activities related to interconnection or access that is obligatory for operators with significant market power as prescribed in Article 47 of the Law on Electronic Communications, the Agency has drafted new Rulebook on separate accounting for activities related to interconnection and/or access. This Rulebook was drafted based on “Commission recommendation of 8 April 1998 on interconnection in a liberalised telecommunications market ( Part 2 – Accounting separation and cost accounting) OJ L141 13.05.1998” and “Commission recommendation of 19 September 2005 on accounting separation and cost accounting systems under the regulatory framework for electronic communications OJ L266 11.10.2005” was published at the website of the Agency enabling all interested parties to submit comments which were taken into consideration by the Agency. The Rulebook was adopted and published in the Official Gazette of RM 112/08.
   

9. 
   Referent Unbundling Offer of Makedonski Telekomunikacii JSC was approved by the Agency in April 2006. In 2007, the Agency requested Makedonski Telekomunikacii JSC to alter Referent Unbundling Offer and to decrease monthly fees for renting local loop – completely unbundled access from 703 denars to 582.92 denars and for shared access from 351.50 denars to 270.65 denars. The prices were determined with benchmarking methodology by using benchmarks from other European countries.
   

Another alteration in Referent Unbundling Offer was done in August 2007. The alteration was decrease of monthly fee for renting local loop with shared access from 270.65 denars to 142.85 denars.

With the analysis of the prices in Referent Unbundling Offer, the Agency concluded that Makedonski Telekomunikacii JSC should decrease the monthly fees for renting local loop with completely unbundled access from 582.92 denars to 478 denars.
According to the Article 48 Paragraph 6 of the Law on Electronic Communications, Makedonski Telekomunikacii JSC requested authorized auditor to determine the accuracy of the cost calculating system. The final audit report of the authorized auditor confirmed the prices determined by the Agency for Electronic Communications. In addition, the prices for one-time fees were decreased. Makedonski Telekomunikacii JSC submitted the Referent Unbundling Offer for approval on 23.05.2008. Because price amendments according to the audit report were implemented into the Referent Unbundling Offer, the Agency passed the Approval Nr. 02-102/3-a on 23.05.2008 that approves the alteration of the Referent Unbundling Offer.
Acting upon this approval, Makedonski Telekomunikacii JSC on the corporate website has published the new unbundling prices. New interconnection prices were implemented from 01.06.2008.
Upon the Referent Unbundling Offer, one general agreement for unbundling access to local loop has been concluded so far between Makedonski Telekomunikacii JSC and On-Net, while procedure for general agreement for unbundling access to local loop between Makedonski Telekomunikacii JSC and Cosmofon JSC is in the process.
In June/July 2008, the Agency following the recommendations by the EC, made revision of the Rulebook on level of details for information that will be published in the referent unbundling offers and the manner of their publishing, resulting in abolishing of the condition for subscriber agreement between operator with significant market power and subscriber in case of realization of completely unbundled access to local loop, regulation of so called naked ADSL as well as service level agreement (SLA) that would provide better conditions for development of competition. The Rulebook was published at the website of the Agency to enable all interested parties to submit comments, which were taken into consideration by the Agency. The Rulebook was adopted and published in the Official Gazette of RM 112/08.

.

10. 
    The Agency commenced activities towards regulation of Market Nr. 12 – Broadband access with drafting Rulebook on bit-stream access, published at the regulator’s website open to public debate. Upon the received comments by the stakeholders, this Rulebook on Bitstream access and resale of
    

Bitstream service is submitted to the Commission for electronic communications for its adoption.

11. 
    Regarding the provision of minimal set of leased lines, in June/July 2008 the Agency drafted new Rulebook on providing minimal set of leased lines by the operator with significant market power of the relevant market for retail sale of products and services number 7 that determines more strictly obligations of the SMP operator for providing minimal set of leased lines. In addition, control of prices for separate types of leased lines has been determined, mandatory elements of contracts for providing minimal set of leased lines towards greater user protection has been prescribed, and even more important thing is determination of concrete deadlines for producing minimal set of leased lines. The Rulebook was published at the website of the Agency enabling all interested parties to submit comments. Upon the received comments, this Rulebook was adopted and published in the Official gazette of RM 112/08. It is based on Annex 7 of the Directive 2002/22/ЕC on universal service and user rights related to electronic communication networks and services.
    

The Agency for electronic communications has already rendered a Decision containing remedies for the SMP operator (AD Mak Tel) based on this Rulebook.

12. 
    Regarding wholesale of leased lines, in June/July 2008 the Agency drafted Rulebook for providing of terminal and/or trunk segments defining obligations, manner and procedure for provision of terminal and/or trunk segments of the operator with significant market power on relevant markets for wholesale of products and services number 13 and 14. The application of the principles for:
    

• 
  Access to terminated and transferable leased lines segments,
  
• 
  Nondiscrimination
  
• 
  Transparency
  
• 
  Price control and obligation for cost accounting
  
• 
  Separate accounting
  

will enable the use from other operators and/or service providers of electronic communication services.
Rulebook is based on the Recommendation of the European Union C(2005) 951/2 final and C(2005) 103/1 final (Commission Recommendation on the provision of leased lines in the European Union, Part 2 - Pricing aspects of wholesale leased line part circuits, Part 1 - Major supply conditions for wholesale leased lines).
The Rulebook was published at the website of the Agency enabling all interested parties to submit comments. Upon the received comments, this Rulebook was adopted and published in the Official Gazette of RM 112/08.

The Agency for electronic communications has already rendered a Decision containing remedies for the SMP operator (AD Mak Tel) based on this Rulebook.

According to the information in the Agency until 31.12.2007 leased lines service on the market apart from Makedonski Telekomunikacii JSC is also provided by 7 other companies: On-net, Neotel, Balkantel, Cosmofon, Sonet, Ultranet ULTRA and MEPSO.

13. 
    Regarding the Access and usage of specific network resources, in July the Agency adopted Rulebook on access and usage of specific network resources. According to the Rulebook, Makedonski Telekomunikacii JSC as operator with significant market power has concluded 90 agreements with operators of public electronic communication networks for access and usage of its specific network resources. In June/July 2008 amendments to the Rulebook on Access and usage of specific network resources have been adopted and these amendments additionally define conditions for access and usage of specific network resources.
    

The revised Rulebook was published at the website of the Agency enabling all interested parties to submit comments which were taken into consideration by the Agency. The Rulebook was adopted and published in the Official gazette of RM 112/08.

.

14. 
    In December 2006, the Agency adopted Rulebook on number portability. The Rulebook determines manner, time, and technical conditions for number portability, as well as rules for implementation, functioning and maintenance of Central referent information portability database and provides opportunity organization and management of that Agency to be entrusted to other legal entity. Therefore, the Agency announced public tender for purchasing: Software for implementation of number portability with source code, maintenance of the system and Central database of portable numbers and functional requirements of the system for realization of number portability. Following two unsuccessful procedures for election of best provider, the Agency conducted public procurement procedure with negotiation without public announcement and conclude contract with SEAVUS LTD Skopje. According to the terms of the Contract, number portability software has been developed in July 2008 and test phase for harmonization of transactions and communication interface of the operators with Central database started.
    

On 11.07.2008, Rulebook on alteration and amending Rulebook on number portability that according to the Article 85 Paragraph 2,d prescribes testing phase of the number portability system that is to end on 31.08.2008.

Operators were obliged to start to commercially offer number portability service from 01.09.2008, so this service is in place now.

15. 
    Regarding liberalisation of the mobile telephony market, the effects are best visible from the price decrease in the OECD user baskets that are used internationally and are defined as follows:
    

Category	Outgoing calls per month	SMS per month
Low user	25	30
Medium user	75	35
High user	150	42

Before third mobile operator entered the market in Republic of Macedonia, user baskets for mobile operators T-Mobile and Cosmofon were:

OECD user baskets
Low				Medium				High
T-Mobile		Cosmofon		T-Mobile		Cosmofon		T-mobile		Cosmofon
2006	2007	2006	2007	2006	2007	2006	2007	2006	2007	2006	2007
453,2 MKD	453,2 MKD	458,33 MKD	548,33* MKD	1.121,10 MKD	1.061,50 MKD	1.673,36 MKD	1.668,82 MKD	2.268,10 MKD	2.264,00 MKD	2.949,48 MKD	2.849,3 MKD

In April 2008, after VIP Operator entered the market as third mobile operator, user baskets for each of the three mobile operators were:

OECD user baskets
Low			Medium			High
T-Mobile	Cosmofon	VIP Operator	T-mobile	Cosmofon	VIP Operator	T-Mobile	Cosmofon	VIP Operator
250,00 MKD	244,68 MKD	300,00 MKD	893,85 MKD	964,71 MKD	872,61 MKD	1.989,61 MKD	2.151,26 MKD	1.856,73 MKD

It can be concluded that by entering third mobile operator, user baskets (low, medium and high) are decreased approximately for 50%.

16. 
    In order to provide and to protect competition among operators of public mobile telecommunication networks, the Agency undertook the following activities:
    

According to the Article 45 Paragraph 2 of the Law on Electronic Communications and according to the Decision of the Agency from 26.11.2007 that determines T-Mobile MK and Cosmofon JSC Skopje operators with significant market power on the relevant market for wholesale of products and services number 16 – Service for call ending in public mobile communication networks on geographic area of the Republic of Macedonia, T-Mobile MK and Cosmofon JSC submitted draft Referent Interconnection Offer to the Agency for electronic communications.
Acting upon Article 45 Paragraph 4 of the Law on electronic communications, Agency analyzed the submitted Referent Interconnection Offers both from technical and calculation methodology for interconnection prices.

Upon the Analysis of the prices for termination of voice traffic in the T-Mobile MK network and Cosmofon JSC network, the Agency concluded that they do not provide promotion of efficient and sustainable competition and do not provide increasing of the advantages for the users. Thus, the Agency determined the price for termination of voice traffic in the T-Mobile MK network and Cosmofon JSC network from 3.8 MKD/min regardless the periods of intensive traffic or periods of low traffic.

The Agency determined the price for the service according to the performed benchmarking of the prices for call termination of comparable operators in the countries that are similar to the operators in the Republic of Macedonia that is according to the Article 48 Paragraph 4 of the Law on Electronic Communications.
Cosmofon JSC Skopje and T-Mobile Skopje lodged complaints to the Commission as secondary body in the Agency against the decisions of the acting director that determined the prices for the services. On 16.06.2008, the Commission rejected complaints from Cosmofon JSC Skopje and T-Mobile as spurious and confirmed the decision of the acting director.

17. 
    Regarding the provision of universal service, in December 2007 the Agency has announced Public tender with prequalification for electing a universal service provider. Makedonski Telekomunikacii JSC and Cosmofon JSC were elected as candidates for universal service provider in the first phase of the public tender. They will be invited to submit offers for participation in the Second phase for election of the Universal service provider. The Agency announced international tender for selecting a consultant that will prepare tender dossier that will define terms and obligations of the elected bidder for providing services included in the universal service.
    

18. 
    For providing more effective and more efficient regulation of the electronic communications market, the Agency adopted Rulebook for providing transparency of the work of the Agency for Electronic Communications and for publishing information related to the work of operators of public communication networks and public communication service providers.
    

19. 
    In order to determine procedure for dispute resolution as one of the important competences of the Agency, the Agency has adopted Rulebook on dispute resolution. The procedure can be instigated by each one of the parties, by both parties in the dispute or the Agency is, ex officio, refers the parties when it finds that the mediation will contribute for resolution of the dispute on time. The rulebook is setting the deadlines for resolving the dispute, the manner in which the procedure can be instigated as well as the conduct of the arbitrary procedure.
    

20. 
    Regarding the capacity and independence in the work of the Agency for electronic communications:
    

• 
  The director of the Agency for Electronic Communications has been appointed in a transparent and competitive manner (Zoran Janevski, electrical engineer and MA in economic sciences).
  
  
  
• 
  Parliament of the Republic of Macedonia has adopted amendments to the Law on Budget Execution and the Agency does not need consent by the Ministry of Finance for employments in AEC.
  
• 
  For strengthening institutional and staff capacities of the Agency, the Agency in 2008 is planning final teaming of the Market analysis sector, Telecommunications sector, Radio-communications sector, Legal affairs sector and IT sector by employing 15 persons: economists, IT engineers (telecommunication department) and legal experts, as well as persons with suitable secondary education. The call for employees is ongoing.
  

Training of the employees in 2008 is planned to be conducted by participation of the employees in conferences, seminars and workshops from competent sphere, participation in distance learning courses, participation in foreign language courses and participation in courses and seminars on IT usage and application.

Due to effective and efficient performance of the tasks, the Agency has planned and provided finances for purchasing facility, purchasing software for radio-frequency planning and purchasing measuring equipment in 2008 Annual finance plan.

21. 
    Implementation of the Single European emergency call number E-112 is in the process of implementation.
    

A TAIEX expert mission was held on 23-24 June in the Ministry of Transport and Communications with expert from the British regulatory body Ofcom exchanging relevant information on the constitution, functioning and competences of Ofcom. The mission entailed visits and plenary sessions with both the Agency for electronic communications and the Broadcasting Council.

The Directorate for Personal Data Protection has conducted several supervisions based on complaints on the grounds of abuse of personal data and findings from the media. The control was conducted over a mobile operator. The abuse detected refers to transmission of personal data in another country without prior request to the Directorate for assessment of the appropriateness of the personal data protection in another country.

In the reporting period, there were several requests (7 June-August) submitted by natural persons that considered that their right on personal data protection in the area of electronic communications was violated. Based on this, two cases of stolen identity and 3 cases of undesired communication (spam) were detected. In the reporting period, the Directorate rendered 3 expert opinions and 4 guidance on the manner of publishing of privacy policies on the controller’s websites and on the gathering and data processing through the controller’s websites. Special attention and efficient cooperation is established for the purposes of fighting against personal data abuse on the portals for social interaction, whereby the provisions of Law on personal data protection are breached and the basic principles on data protection are violated. For the purposes of increasing the public awareness, the Directorate for personal data protection informed about its activities through published and electronic media.

1.2. INFORMATION SOCIETY SERVICES

In July a Ministry of Information Society was established. According to the Amendments to the Law on Organisation and Operation of the Public Institutions (“Official Gazette of the Republic of Macedonia” number 58/00, 44/02 and 82/08), The Secretariat for Information Society, from 08.07.2008 continues to function as Ministry of Information Society. Regarding this, amendments were made in the Rulebook for internal organization and the Rulebook for systematization of job positions of the Ministry of Information Society.

The Government adopted a Decision establishing a National Council for information Society (official Gazette of RM 97/08).

Other activities and projects:

• 
  Definition of the Budget for the Secretariat of information society for 2008, subsequent modification of the Budget according to the establishment of the Ministry of information society and preparation of the budget circular for the Ministry of information society for 2009.
  
• 
  Work group that will be involved in the realisation of the project for implementation of Document Management System in the Ministries was formed. The team has prepared the technical specification and the tender documentation for procurement. The announcement for public procurement contract award for Electronic Record and Document Management System was published in September.
  
• 
  Coordination meetings were held with the State Authority for geodetic works of the Republic of Macedonia, the Central Register of Republic of Macedonia and the Notary Chamber of the Republic of Macedonia regarding the Information for realization of the measure number 4: Electronic collaboration among the notaries, the Cadastre and the Central Register for cheaper and faster provision of pawned and mortgaged from the first section of measures: Starting business, in accordance with the recommendations from “Doing business” - report from the World Bank and the Program of the Government of the Republic of Macedonia
  
• 
  The network and computer installation is completed in all secondary schools as part of the project „Computer for every child“. Also, the network installation has finished in part of the primary schools and the team is working on the organization of the network and computer installation in the rest of the schools.
  
• 
  The process of localization of the 43 software tools in Macedonian and Albanian language and their adjustment to EduBuntu- the operative system that will be used by the computers that will be installed in the schools as part of the project “Computer for every child” is in progress. These are the tools that will be used in the educational process in the Macedonian schools. The localization process is being done by USAID as a donation for the Macedonian schools. This process will be finished until the end of November, 2008.
  
• 
  Coordination and monitoring of the work and technical help for maintenance of the free of charge Internet clubs, opened as part of the project “ The World on a hand”
  
• 
  Maintenance, continuously adding new content and back-up of MIO web site with new information for the activities and projects of the Ministry.
  
• 
  Maintenance, continuously adding new content and back-up of the web site of the Deputy President of the Government for economic issues
  
• 
  Finalizing, maintenance and back-up of the web site for Integrated - border management
  
• 
  Making the web site for the second - degree Commission for dealing with management issues from the area of measurement, cadastre and registration of real-estate.
  
• 
  Working on the new web site of the Government and arranging the data in accordance with the directions of new Government
  
• 
  Preparation of the answers for a few questionnaires for different international institutions ( EU, UNDP, Harvard University, eSEEU initiative etc.) from the area of development of information society in RM
  
• 
  Implementation of Business Management System in the Ministries (the system is developed and presented in front of the representatives of the Ministries, part of the users of the system attended a training program. Currently adjustments are being done to the functionalities of the system for the needs of the institutions that are going to use it and the team is working on activities for its installation in each Ministry.)
  
• 
  Mobile payment (m-payment) and electronic payment of the government services for the citizens (introduction of electronic revenue stamp). The system is developed and the testing is done (concretely for paying revenue stamps through cell phones). Changes have been made on the laws that should regulate the electronic payment and it MOI ( as institution that is most ready) has adjust its systems so that the usage of the application can start, in the beginning for mobile payment of revenue stamps for requests for issuing passports, personal identification cards and driving licenses. The mobile payment of revenue stamps for these three services will be possible from November.
  
• 
  A project for preparation of English- Macedonian dictionary of words from the information technology area is in its initial phase. The project is in coordination of the Department of Macedonian language and Institute of Macedonian language.
  
• 
  An ICT Conference of Macedonian and Estonian ICT companies was organized by the Minister of information society.
  
• 
  A visit of professors from America was organized by the Minister of information society and the Ministry of education and science. The purpose of the visit was collaboration of the Macedonian Government with the professors in order to develop better curriculum for the new University of information technologies.
  
• 
  Participation in the current activities for:
  

• 
  Preparation of the Law for establishment of Fund for information society
  
• 
  Preparation of National strategy for broadband Internet
  

1.3. AUDIOVISUAL POLICY

The Broadcasting Council continued with its activities in regard to implementation the Law on Broadcasting Activity and the Strategy for development of the broadcasting activity.

In June, the results from the monitoring of the media coverage of the campaign for the early parliamentary elections were summarized. By mid June, the Broadcasting Council pronounced a total of 44 misdemeanour sanctions on the grounds of breach of the Law on Broadcasting Activity and 133 notifications for disrespect of the Guidelines on media presentations of the early parliamentary elections in 2008. Most frequent breaches referred to: overcoming the permitted limit of 12 minutes for political advertisement per hour; giving more time than the prescribed 8 minutes per hour per organizer of the election campaign; abuse of juveniles for political advertising; etc. The monitoring results were presented by the Council on a public session held on 25 June 2008.
During July, the Broadcasting Council continued with conducting visits to the broadcasters in order to assess the fulfilment of the production-technical conditions envisaged in the license. A total number of 18 visits were completed, the results of which together with the analysis of fulfilment of the obligations in regard to programme formats and other conditions envisaged with the licence will be are being assessed.
Considering the Recommendations of the Council of Europe on the measures for promotion of media transparency, the Broadcasting Council demanded the broadcasting companies to publish the data on the ownership structure and financial resources in 2007 in one of the daily newspapers and on their own programme. The obligation on submitting documents of financing and ownership structure was completed by 73 out of 111 the broadcasting companies. For the ones who haven’t completed it fully or partially, the BC communicated last warnings.
In light of implementation of the Strategy on Broadcasting Activity regarding enrichment of the pluralism and diversity, following a public call, the Broadcasting Council adopted a Decision for granting 8 licenses for broadcasting TV programme services over satellite that can be distributed on the territory of Republic of Macedonia (on national level) out of which 3 for special format and 5 for a general programme format. Besides, in the area where no pluralism is provided, the Council granted 16 licences for analogue terrestrial broadcasting on local level (6 for radio and 10 for TV)..The decision was founded on the necessity of increasing the domestic and foreign investments, programme diversity, increasing the job positions, fostering competition and Diaspora’s accessibility to these programmes.
In regard to the call for applications for granting licences for programme services on local level in areas where there is no media, on 25 June the BC granted a total of 10 licences for TV broadcasting in Delcevo, Kratovo, Struga, Kocani, Berovo, Kavadarci, Kriva Palanka, Prilep, Gostivar, Dolenei and 6 for radio broadcasting in Berovo, Sveti Nikole, Negotino, Plasnica and Makedonski Brod.
The activities of the BC were determined by lack of finances from the broadcasting fee.