Communications Regulatory Authority
COMMUNICATIONS REGULATORY AUTHORITY OF THE REPUBLIC OF LITHUANIA
ANNUAL REPORT 2012
RRT ANNUAL REPORT 2012
FOREWORD BY THE DIRECTOR OF THE COMMUNICATIONS REGULATORY AUTHORITY OF THE REPUBLIC OF LITHUANIA
As it has been done every year, the Communications Regulatory Authority of the Republic of Lithuania (hereinafter referred to as RRT) evaluates and summarizes the implemented work, reached objectives in electronic communication and postal sectors and presents the annual report of 2012 to the Parliament of the Republic of Lithuania, the Government of the Republic of Lithuania and to the general public. The role of the national communications regulator in all countries of the European Union (hereinafter referred to as the EU) is very important when regulating relations between communications market participants, trying to create efficient competition conditions for undertakings, protecting service user interests, promoting arrival of the new and modern technologies and consumption of services on a national level. In 2012 RRT continued the activities and projects started in previous years by implementing a system set out in both Lithuanian and EU legislation for promoting competition in electronic communications sector, and by implementing public policies in sectors of information and communication technologies (hereinafter referred to as the ICT) and postal services. In 2012, responding to the fast changes in modern technologies, RRT priorities were assuring competition on the broadband communication services market by creating favourable conditions for access to the physical network infrastructure and efficient management of radio frequencies by creating the conditions for development of modern technologies and services: evident changes were observed in wireless Internet access networks, the new Long Term Evolution (LTE) data transmission technologies were installed and launched in Lithuania. Infrastructure competition in ICT sector strengthened, the roll-out of high-speed networks proceeded. We should be proud that a consistent investment trend of Lithuanian electronic communications market participants determined the fact that FTTx remains the main technology used for provision of broadband communications services in Lithuania. Lithuania continuously remains the leader in terms of broadband Internet penetration over fibre lines: according to the data of the association FTTH Council Europe and iDate, published in April 2012, Lithuania reached 30.1 % penetration over fibre lines and has been Europe‘s leader in terms of this factor and globally has risen from 6 to 5 place. FTTx technologies are considered among the most important drivers of economic growth: the new technologies allow development of new services and new jobs, efficient management of companies’ resources and saving time. Without any doubt these technologies open a path for innovations, which, in turn result in more efficient competition in the country. Operators invested most in new generation networks, mobile 3G, 3.5G and 4G networks, broadband WiMAX networks and development of public mobile network infrastructure, used for data transmission services. In 2012, when performing surveillance of implementation of the legal acts, regulating the electronic communications activities, RRT devoted much attention to the implementation of obligations imposed on the RRT | 2
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undertakings having significant power in relevant markets, applied in order to limit the market power of such undertakings. The observance of the imposed obligations is important, since these obligations help to reduce the market entrance barriers, to increase freedom of business initiatives, to ensure equal competition conditions for undertakings in electronic communications markets and larger competition. All these factors govern lower prices for consumers of electronic communications services, a greater diversity, higher quality of services, and the possibility to choose the service supplier corresponding its needs. The fact that regulation of international roaming in the EU, determined by the European Commission, entered into force from 1 July, 2012 could be considered as the major achievement for users. t Due to it, the prices of wholesale and retail international roaming, retail data transmission services have decreased continuously, and application of structural measures, in a long term perspective, would provide a possibility to withdraw the regulation of prices. The structural measures shall allow the users in the future to choose the provider of services, i.e., the user, while keeping the same subscriber number, will be able to receive these services not only from the national service provider. In 2012 RRT finished the analysis of wholesale broadband access market. After this analysis, the applied regulation shall not only protect the current users of wholesale broadband access services from possible anti-competitive practices by the undertakings having significant market power, but shall also reduce the market entrance barriers to the wholesale broadband access and eetail broadband and/or telephone connection (provided over the Internet Protocol) markets and shall expand the possibility for end users of services to select retail services. RRT, responding to the changing situation in electronic communications and postal sectors, designed and implemented the measures improving consumer information, their education and provision of quality services. Therefore, one of the main RRT priorities in 2012 was consumer protection, increase of consumer awareness and provision of quality services to customers. In 2012, the Plan of Measures for Improvement of Consumer Information and Customer Service quality in RRT was confirmed; the plan included the implementation measures for improvement of consumer education, service, protection of their interests, increase of responsibilities of the service providers. Preparations for launching the customer helpline 8 800 200 302012 were also carried out in RRT in 2012. Consumers and providers of telephone, television, post or Internet services are able to call the indicated telephone number and to receive a consultation of RRT specialist regarding the relevant issue, to make comments or to get other necessary information. It is anticipated that all these measures shall allow the consumers and industry to obtain detailed, useful information on relevant issues. RRT consistently continued the activities started in 2011 regarding supervision of electronic signature and in 2012 implemented the project “Modernization of a remote training system for electronic signatures and electronic documents”. After the project was implemented, the users were able to use the training system www.elektroninisparasas.lt remotely, to receive all relevant information regarding electronic signatures, to check knowledge by tests and to receive an electronic certificate attesting to a successful completion of the tests. Recognition of Lithuanian experience in the sphere of electronic signature on the national level is proven by the fact that RRT representative was elected to take the position of chairman of Forum of European Supervisory Authorities for Electronic Signatures (hereinafter referred to as FESA) in 2012: the meetings shall be chaired by RRT | 3
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him in 2013 and 2014. The purpose of FESA is to promote cooperation between institutions supervising electronic signature and to prepare common positions with political and technical organizations. With the rapid growth of the ICT sector and development of the e. business, e. health, e. learning and other ICT services, network and information security becomes increasingly relevant on the level of not only an individual country, but also the whole world. According to the agreement, signed by and between the European Commission and RRT, an 18-month project “Safer Internet LT SIC” was continued and finished in Lithuania in 2012. In October RRT joined the agreement regarding implementation of anew “Safer Internet” project for additional 28 months. The main objective of RRT when participating in this project is to ensure functionality of an Internet hotline, the objective of which is to provide the possibility for the society to report any illegal or harmful content on the Internet. In 2012 a social survey of residents of the Republic of Lithuania was commissioned by RRT for the purpose of evaluation of the influence of the “Safer Internet” project on public awareness. It may be stated, that the project “Safer Internet” was evaluated favourably by more than half of the surveyed respondents. It shows that RRT efforts to draw public attention to illegal information on the Internet produces positive results. The year 2012 in Lithuanian radiocommunications history is the year when analogue terrestrial television was switched-off. Analogue terrestrial television, which operated in Lithuania for 55 years, was switched-off on 29 October, 2012. Lithuania was the 21st EU State to do so. The switching-off analogue terrestrial television was possible only after intensive work of RRT employees in the sphere of radio frequencies. One of the main initiatives organized by RRT in 2012 – resident consultation regarding adjustment issues of digital television receiving equipment. In case of failure to solve the problem by phone, RRT specialists went to the residents premises, checked the installed equipment on site, performed necessary measurements if necessary, provided advice regarding improvement of the equipment possessed in order to ensure quality reception of digital TV programs. Radio frequencies in Lithuania are managed taking into account decisions and strategies adopted by the EU. On 14 March, 2012 the European Parliament and the Council approved Decision No. 243/2012/EU which establishes a long-term Radio Spectrum Policy Programme (hereinafter referred to as the RSPP). This Decision became the main document of strategic planning of radio frequency management in Lithuania and other EU Member States. In RSPP it was determined that Member States are to licence the usage of radio frequencies (channels) in the 900–1800 MHz, 2.5–2.69 GHz and 3.4–3.8 GHz radio frequency bands for installation of electronic communication networks (by which electronic communication services would be provided), including wireless broadband services by 31 December, 2012. The technologies utilisingradio spectrum are developing at a very high rate in the entire world and the demand for radio spectrum is continuously growing: new technologies emerge every day, allowing for the provision of innovative services in new radio frequency bands, therefore the technological convergence as well as the change of business models require flexible management of radio spectrum, adapted to the modern market. As a highlight of the year 2012, the World Radiocommunication Conference WRC-12 held in Geneva may be pointed out, which considered issues directly related with the Lithuanian communication market as well. During the Conference, RRT representatives took a firm stance, coordinated when preparing for the Conference, regarding each issue of the agenda and actively tried to protect the interests of Lithuanian RRT | 4
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radiocommunication users; the aforementioned interests do not always coincide with interests of other neighbouring countries. A significant event in 2012 was approval of the Law amending the Postal Law of the Republic of Lithuania (hereinafter referred to as the Postal Law), aimed at complete liberalization of the postal market from 1 January, 2013 in order to implement the postal strategy and politics in the directions determined by the EU. Reserved postal services were abolished by the Postal Law, terms and functions of postal regulatory institutions were specified, conditions for postal network access were determined. The complete opening of the postal market in Lithuania aims at creation of the internal market of postal services, together with other EU member States, assuring delivery of universal postal services of the same level to all users, and determination of coordinated principles of postal service regulation at the Community level. Progressively liberalising the postal market, and aiming at ensuring efficient competition between providers of postal services, it is necessary to improve regulation of postal service market. Against a background of intensifying globalisation, it is necessary to ensure standards of postal service quality and safety of postal items. Therefore, as international trade and EU State integration increases, it is necessary to ensure free and reliable exchange of international postal items; and the main objective in the future – the increase of postal network integrity, quality and efficiency. In 2012, the 25th Congress of the Universal Postal Union (UPU) was held in Doha, during which UPU documents that are subject to ratification were signed, Amendments of agreement regarding financial postal services were made, Postal strategy of 2013-2016 was confirmed, members of management organs were elected. New challenges faced in postal sector were discussed and evaluated in the Congress, especially impact of recession. It was discussed how to promote the development of postal sector while increasing efficiency and quality, implementing new services and innovations. The decisions made in the Congress, where a Lithuanian interinstitutional delegation also participated, shall have direct impact on the postal sector of Lithuania. In 2012 RRT devoted much attention to integration into international regulatory arena and actively participated in international cooperation activities. Successful cooperation in international arena enables to make conditions for more rapid development of the communication sector and information society in Lithuania. Two RRT representatives were elected to be chairman in international cooperation organizations, other representatives also took the positions of deputy chairman in several international working groups. In 2012, when Lithuania coordinated co-operation agendas of eight Nordic and Baltic countries, RRT devoted more attention and integrated more into the Nordic and Baltic co-operation, organized two events on electronic communication regulation in Lithuania in which experience was exchanged, relevant issues regarding electronic communication sector and electronic signature regulation were discussed. The objectives of RRT would have not been reached without the competence, initiative and friendly team of employees. In 2012 a lot of attention was devoted to training and knowledge development of RRT employees. Internal trainings for RRT employees were organized in order to develop professional and common competence in the area of information and communication technologies, sectors of regulation and supervision of communications. In 2012, while preparing for Lithuanian EU Council Presidency, RRT staff actively participated in trainings organized by the Ministry of Foreign Affairs and partners.
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Everyday work, ideas, openness to innovations of each member of RRT team, influenced the successful activity results and helped to overcome the difficulties. Obstacles and difficulties faced, the need for knowledge, constant improvement should act as an inscentive for change and adaptation to constant developmentsin the market. The development of electronic communications is an integral part of evolution of economy and information society. I sincerely believe, that the experience gained while facing challenges, shall serve us in future when implementing the objectives and tasks; we shall be able to represent the consumers more efficiently, to improve business conditions, to promote the development of information and knowledge-based society in Lithuania and abroad.
Sincerely yours
Feliksas Dobrovolskis
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RRT ANNUAL REPORT 2012
MEMBERS OF RRT COUNCIL
The Chairman of the Council Feliksas DOBROVOLSKIS
Director of RRT
Member, Deputy Chairman of the Council Algirdas BLOZNELIS Head of the Communication and Information Supply Board of the State Security Department of the Republic of Lithuania
Member Eduardas BAREIŠA Dean of the Faculty of Informatics of Kaunas University of Technology
Member Vytautas BUTRIMAS Senior Advisor on the Issues of Cyber Security of the Ministry of National Defence of the Republic of Lithuania
Member Gintaras ČIURLIONIS Director of Information and Communications Department under the Ministry of Interior of the Republic of Lithuania
Member Ieva ŽILIONIENĖ
Deputy Director of Information Society Development Committee under the Ministry of Transport and Communications of the Republic of Lithuania
Member Lina ŽONGOLAVIČIŪTĖ Adviser of Economic Progress Unit of Policy Analysis and Reforms Department of the Office of the Prime Minister
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TABLE OF CONTENTS
MISSION, OBJECTIVES, TASKS ...... 10 FUNCTIONAL AREAS OF RRT ACTIVITIES ...... 10 ACTIVITY CHARACTERISTICS OF RRT ...... 12 Management of RRT ...... 12 Planning and organization of RRT activities...... 13 The RRT human resources and organization structure ...... 14 RRT activity guidelines for 2013 m...... 15 BRIEF OVERVIEW OF DEVELOPMENT OF THE COMMUNICATION SECTOR ………………………………..20 SUPERVISION OF ACTIVITIES OF UNDERTAKINGS ...... 27 Common market supervision principles ...... 27 Supervision of undertakings, engaged in electronic communications activities ...... 27 Supervision of the postal and courier services market ...... 29 Surveillance of radiocommunication equipment and telecommunications equipment market ...... 31 Surveillance of the market of electromagnetic compatibility of equipment and devices ...... 33 Supervision of electronic signature ...... 35 PROTECTION OF CONSUMER RIGHTS AND LEGITIMATE INTERESTS ...... 37 Measures for improvement of quality of user information and servicing ...... 37 Protection of consumer rights and ligitimate interests in the electronic communications sector ...... 40 Supervision of the universal electronic communications services ...... 40 The quality of wireless Internet access services ...... 42 The quality of public mobile telephone communication services ...... 44 Public fixed telephone communication services ...... 45 Cable television networks ...... 45 Investigation of consumers’ complaints ...... 46 The activities of RRT in the area of ensuring network and information security ...... 47 Activities of the national CERT-LT team ...... 47 Reliability study of the Internet network infrastructure ...... 50 Implementation of the Safer Internet Project ...... 51 Protection of consumer rights and legitimate interests in the postal sector ...... 55 Supervision of universal postal services ...... 55 Provision of information on universal postal services to consumers ...... 56 Establishment of service points for provision of universal postal services ...... 58 Quality control of universal postal services ...... 60 Investigation of user complaints ...... 61 Protection of consumer rights and legitimate interests in the equipment sector ...... 63 The activities of RRT in ensuring free movement and provision of equipemnt to the EU market ...... 63 Elimination of radio interferences ...... 65 Supervision of electronic communications infrastructure ...... 68 Encouragement of usage of electronic signatures and infrastructure development ...... 68 PROMOTION OF COMPETITION IN ELECTRIC COMMUNICATIONS AND POSTAL SECTOR ...... 70 Competition in electronic communication sector ...... 70 Market tendencies and participants ...... 70 Market analysis ...... 72 Supervision of execution of the obligations imposed on the undertakings having significant market power ...... 73 Supervision of wholesale and retail fixed telecommunication services ...... 74 Supervision of wholesale mobile telecommunication services ...... 77 Supervision of broadcasting transmission services ...... 78 Supervision of roaming services ...... 79 Encouragement of competition based on infrastructure ...... 80 Number portability service ...... 81 Selection of the service provider ...... 82 Resolution of disputes between undertakings ...... 82 Competition in the postal and courier services sector ...... 84 RRT | 8
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Participants and tendencies of postal and courier services market ...... 84 Tariffs and cost accounting of universal postal services ...... 86 CREATING PRECONDITIONS FOR TECHNOLOGICAL DEVELOPMENT OF ELECTRONIC COMMUNICATIONS MARKET ...... 89 Promotion of investments and development of advanced ICT technologies ...... 89 Radio frequency management and installation of modern technologies ...... 90 Digital TV and radio ...... 92 Mobile service ...... 95 Satellite and fixed service ...... 98 Radio amateur activities ...... 101 Radio spectrum monitoring...... 103 Inspection of radiocommunication networks and stations ...... 104 Radiocommunication equipment ...... 106 Management of other resources ...... 107 Management of telephone numbers ...... 107 Management of networks identifiers ...... 107 Internet addresses ...... 108 INTEGRATION INTO THE DECISION MAKING SYSTEM IN THE EU AND INTERNATIONAL REGULATORY SPACE ...... 109 Activities in the EU institutions...... 109 Body of European Regulators of Electronic Communications (BEREC) ...... 111 European Regulators Group for Post (ERGP) ...... 112 Cooperation with national regulatory authorities ...... 113 European Conference of Postal and Telecommunications Administrations (CEPT) ...... 117 International Telecommunication Union (ITU) ...... 118 Universal Postal Union (UPU) ...... 120 Forum of European Supervisory Authorities for Electronic Signatures (FESA) ...... 121 International Association of Internet Hotlines INHOPE ...... 121 Internet Corporation for Assigned Names and Numbers (ICANN) and Governmental Advisory Committee (GAC) ...... 122 Negotiations with communication administrations of neighbouring countries ...... 122 FINANCIAL STATEMENT ...... 125
Annex 1. The results of market analysis, performed by RRT Annex 2. The orders of the Director of RRT Annex 3. The report on strategic activity plan
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MISSION, OBJECTIVES, TASKS
MISSION
To ensure a wide range of technologically advanced, high-quality, secure and affordable ICT and postal services (products) for each and every resident of the Republic of Lithuania; create the possibilities for development of information and communications technologies and postal business, thus accelerating the development of information society.
THE MAIN OBJECTIVE To ensure a wide range of technologically advanced, high-quality, secure and affordable ICT and postal services (products) for each and every resident of the Republic of Lithuania create the possibilities for development of information and communications technologies and postal business on the basis of a flexible regulatory framework, harmoniously functioning in the common EU market, influencing the supply of the services on the market.
1 OBJECTIVE 2 OBJECTIVE 3 OBJECTIVE 4 OBJECTIVE 5 OBJECTIVE
Ensured efficient Ensuring the Creation of conditions Integration into the EU Assurance of and transparent protection of rights for long-term and international implementation of competition on the and legitimate investments and regulatory space and obligations what can be ICT and postal interests of the efficient activities of determined for development of services/products users of the ICT RRT operators and electronic markets and postal innovative ICT connection service services/products providers regarding according to the State Defence and competence of RRT Public Order and cases of extraordinary circumstances
TASKS 1.1. To ensure that there are 2.1. To reinforce security of 3.1. To perform radio 4.1. Efficient integration in the 5.1. To ensure, that operators and no distortions and limitations electronic communication frequency (channel) EU decision making process providers of electronic of competition in postal and networks and information, management, supervision of communications services perform communication sectors and reliability and strength their usage, including their obligations, relating to of electronic communication monitoring, management of supervision and monitoring of networks other electronic electronic communications communication resources streams, which may be established in the interests of national defence, national security and keeping the public order, as well as in emergency cases 1.2. To perform surveillance 2.2. Supervision of 4.2. Efficient organization, of electronic communication provision of the ICT and publicity and control of activities and postal activities postal services, including of RRT performed by undertakings, the universal services while ensuring the efficiency 2.3. Ensuring and of the activities. supervision of compliance of radiocommunication equipment and telecommunications terminal equipment, existing on the market of the Republic of Lithuania to the obligatory requirements of the Regulation and to the electromagnetic compatibility requirements 2.4. To perform functions of electronic signature supervision institution
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FUNCTIONAL AREAS OF ACTIVITIES
Regulation of the electronic communications sector
Regulation of the postal and courier sector
Management and supervision of the radio spectrum
Network and information security
Supervision of equipment and devices
Management and supervision of electronic communications resources
Electronic signature
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ACTIVITY CHARACTERISTICS OF RRT
Management of RRT
RRT is an independent state institution, acting according to the Law on Electronic Communications and the Postal Law, other laws and its own Regulations. From the perspective of the EU legislation, regulating social relations, pertaining to electronic communications and activities, RRT is a national regulatory institution of the Republic of Lithuania. The Director Feliksas Dobrovolskis1 manages RRT since 2011. The director of RRT is appointed by the President of the Republic of Lithuania, by submission of the Prime Minister for a term of 5 years. The Director of RRT represents RRT in the Republic of Lithuania and abroad, confirms strategic activity plan, issues orders, approves legal acts by orders, performs other obligations of legal acts and orders appointed to him (Article 7 (6) of the Law on Electronic Communications). The Council of RRT (hereinafter referred to as the Council) is a collegial body of RRT, comprised of seven members, who are also appointed for the time period of five years by the President of the Republic of Lithuania following the submission of the Prime Minister. The working procedure of the Council and the procedure of holding the meetings and adoption of resolutions is established by the rules of procedure, approved by the Council. The Council members are representatives of public administration institutions and academic society and their activities are performed free of charge. In 2012 the composition of the Council members was renewed. The composition of the Council was the following in 2012: . The Director of RRT Feliksas Dobrovolskis; . Eduardas Bareiša, Dean of the Faculty of Informatics of Kaunas University of Technology; . Algirdas Bloznelis, Head of the Communication and Information Supply Board of the State Security Department of the Republic of Lithuania; . Vytautas Butrimas, Senior Advisor on the Issues of Cyber Security of the Ministry of National Defense of the Republic of Lithuania; . Gintaras Čiurlionis, Director of Information and Communications Department under the Ministry of Interior of the Republic of Lithuania; . Valdas Kišonas, Director of Information Society Development Committee under the Ministry of Transport and Communications of the Republic of Lithuania – until 7 November, 20122; . Ieva Žilionienė, Deputy Director of Information Society Development Committee under the Ministry of Transport and Communications of the Republic of Lithuania – since 8 November, 20123; . Lina Žongolavičiūtė, Adviser of Economic Progress Unit of Policy Analysis and Reforms Department of the Office of the Prime Minister.
1 Decree No. 1K-751 of the President of the Republic of Lithuania of July 8, 2011 On appointment of the Director of RRT (Official Gazette Valstybės žinios, 2011, No. 84-4090) 2 Decree No. 1K-1255 of the President of the Republic of Lithuania of November 7, 2012 On dismissal of members of RRT Council (Official Gazette Valstybės žinios, 2012, No. 130-6541) 3 Decree No. 1K-1263 of the President of the Republic of Lithuania of 8 November. 2012 On the Appointment of Members of RRT Council (Official Gazette Valstybės žinios, 2012, No. 130-6543) RRT | 12
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The Council coordinates draft legal acts, prepared by RRT (in cases determined in the Law on Electronic Communications), coordinates the estimate of revenues and expenditure, internal RRT working regulations, hears the report of the Director of RRT on the activities of RRT and plans on projects of strategic activity, discusses the issues of imposition of economic sanctions on undertakings, which fail to observe the Law on Electronic Communications and sanctions on Providers4 of postal and/or courier services which fail to follow requirements of the Postal Law etc. All the functions of the Council are defined in Article 7 (8) of the Law on Electronic Communications. In 2012, 9 Council meetings were held in which the annual programme estimate of the RRT budget and its amendment was approved, RRT structure and provisions of organizational units were amended, internal RRT regulations amended and drafts of the Orders5 of the Director of RRT approved. Amendments of the strategic activity plan 2012-2014 of RRT, Digital Terrestrial Television Development Plan were discussed and approved, draft strategic activity plan 2013-2015 of RRT approved, RRT annual report of 2011 heard and its submission to the Parliament of the Republic of Lithuania and the Government of the Republic of Lithuania was approved. In 2012, after the Council discussed the issues of imposition of economic sanctions on 2 undertakings, which failed to observe the Law on Electronic Communication and the requirements of its implementing legal acts, and imposition of economic sanction on 1 postal service provider which failed to observe the Postal Law and its implementing legal acts, the Council adopted decisions on the suggested size of the imposed economic sanctions.
Planning and organization of RRT activities
RRT implements its mission in observance of the strategic activity plans, approved by order of the Director of RRT, establishing the main activity targets for three years, as well as tasks and measures for implementation of the targets. The strategic activity plans of RRT are prepared referring to the programme and priorities of the Government, the State Long-Term Development Strategy, the strategy for development of the corresponding management area, the Strategy for Assignment of Radio Frequencies for Radio and Television Programme Broadcasting, other strategic planning documents, which are implemented with participation of RRT and the functions, performed by RRT. For the purpose of implementation of strategic targets, in 2012 RRT executed a special continuing Telecommunications Management and Control Programme (code 01 81), financed from the income of RRT, received for the provided services and performed works, paid according to the tariffs, agreed upon with the Council of RRT and contributed into the state budget. The Telecommunications Management and Control Programme complies with Section III “Development of the Information Society” of Part IV “The Main Provisions of the Government’s Activity Strategy 2008-2012” of
4 After order of 1 January, 2013 On the Amendment of the Postal Law of the Republic of Lithuania came into force (Official Gazette Valstybės žinios, 2012, No. 135-6867) – for postal service providers. 5 On the determination of tariffs for supervision of radio frequency (channel) usage, including radio monitoring, On amendment of approval of payment description of revenues for the services provided and the works performed by RRT, On the Amendment of the Conditions and Specification of the Procedure for Ensuring the Right „of the Subscriber to Keep the Subscriber Number when Changing the Provider of Public Telecommunication Services or Location or the Way of Provision of Services, etc. RRT | 13
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the Programme of the Government of the Republic of Lithuania 2008– 2012, in particular with the provisions of Paragraphs 31, 41 and 45 of the Section and the the main provision of the Section, i. e. that application of a successful telecommunications market liberalization experience, corresponding to the requirements of the period, liberating the incentives of the private initiative and creating a progressive legal environment for the activities, will create the preconditions, in other adjacent ICT business areas, to each and every resident to use the advantages, provided by the ICT for the purpose of improving the quality of life and the business will be provided the possibility to increase the competitive abilities. Every quarter the activities of RRT divisions are controlled by analysing the execution of the division activity plans. The summarized information on the performance of the activity plans is provided to the management of RRT. Each year RRT submits the annual RRT activity and financial report for the previous calendar year to the Parliament and the Government of the Republic of Lithuania and announces the report publicly. In detail information regarding implementation of measures of the programme of strategic activity plan and the results of evaluation factors is presented in annex 3 “The report on strategic activity plan”.
The RRT human resources and organizational structure
On 31 December 2012, RRT approved 159 staff positions. 147 employees have university degree, 38 of them have engineering – technical education, 22 per cent – education in economics and public administration, 16 per cent have education in physics, 9 per cent in law, 5 per cent – in mathematics and informatics, 10 per cent – in other areas. By Order No. 1V-798 of the Director of RRT of 21 April, 2012, the following RRT structure was approved: the Director, 3 Deputy Directors, Advisor of the Director, Administrative Department, Electronic Communications Department, and Device Control Department, Postal Department, Radiocommunication Department, Radio Monitoring and Market Surveillance Department (which has monitoring divisions in Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), Strategy Department, Legal Department, Network and Information Security Department, Finance and Accounting Division and EU Project Administration Division. Table 1 shows the changes in the number of positions of RRT civil servants and employees, working under employment contracts from 2007 until 2012. In order to improve the competence of the RRT employees, relating to professional and efficient implementation of their obligations, development of personal experience related with implementation of the strategic objectives and development of special knowledge of RRT regulation sphere, 53 training events were arranged in 2012. A good deal of attention was dedicated to the improvement of the employee’s professional knowledge – in 2012, 3 special internal professional training sessions were held, in which 40 RRT employees participated. To improve the employees’ ICT capacities, three training courses, introducing the ICT innovations and future trends were arranged: Evaluation of electromagnetic compatibility when using software ICS Telecom” and “Broadband radiocommunication network technologies – TETRA, NXDV (parts I and II)”. In order to improve the employees’ general competence in the areas of regulation and supervision of the communications sector market, the following seminars were organised: “The process of activity planning and control”. “Financial management of RRT | 14
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investments”, “Efficient cooperation when servicing users”, “MS Excell 2010” trainings and “Management of conflict and stressful situations”. In 2012, while preparing for the Lithuanian EU Council Presidency, RRT actively participated in trainings, arranged by the Ministry of Foreign Affairs together with the Office of the Prime Minister, Lithuanian Institute of Public Administration and State and Municipal Servants Training Centre Dainava in order to implement the project “Improvement of qualification of Lithuania’s civil servants, representing the interests of Lithuania in the European Union“ (No. VP1–4.1–VRM–02–V–01–002): 6 seminars were attended by 6 RRT employees. In 2012, 9 employees attended an introductory training programme for civil servants, 19 employees participated in the training in the area of improvement of capacities and leadership and strengthening of state and management competences, 69 employees deepened their knowledge of EU official languages, in total 122 employees participated in the arranged trainings. In 2012, all employees willing to be trained according to the internal RRT programme “RRT Employees – to RRT Employees” heard 5 trainings: “RRT internal trainings for new employees”, “Usage and supervision of electronic signature”, “Supervision of EMS requirement implementation”, “Supervision of implementation of technical regulation of radio equipment and telecommunications terminal equipment”, “Written administration language”, “Aspects of public procurement procedures”.
Table 1. The change in the number of job positions of civil servants and employees, working under employment contracts in RRT in 2007-2012 2007 2008 2009 2010 2011 2012
160 160/165* 165/156** 156 155*** 159****
Source: RRT
* According to Resolution No. 515 of 16 May 2008 (Official Gazette Valstybės Žinios, 2008, No. 64-2411) the number of job positions of civil servants and employees, working under employment contracts in the Communications Regulatory Authority, was increased to 165.
**According to Resolution No. 394 of the Government of the Republic of Lithuania of 6 May 2009 "On the Approval of the Highest Permissible Number of Positions of Civil Servants and Employees, Working under Employment Contracts and Receiving Work Remuneration from the State Budget and State Funds" (Official Gazette Valstybės Žinios, 2009, No. 57-2237) the number of positions in the Communications Regulatory Authority was reduced to 156.
***According to Resolution No. 226 of 23 February, 2011 of the Government of the Republic of Lithuania (Official Gazette Valstybės Žinios, No. 24-1176) 155 positions of civil servants and employees, working under employment contracts were approved for the Communications Regulatory Authority. ****According to Resolution No. 209 of the Government of the Republic of Lithuania of 29 February, 2012 Amending the Resolution No. 1283 of the Government of the Republic of Lithuania of 2 November, 2011 “On the Approval of the Highest Permissible Number of Positions of Civil Servants and Employees, Working under Employment Contracts and Receiving Work Remuneration from the State Budget and State Funds (Official Gazette Valstybės Žinios, 2012, No. 27-1225) the number of positions in RRT was increased to 158 and 1state official
RRT activity guidelines for 2013
RRT priorities for 2013 are as follows: . ensuring competition on the broadband services market by creating favourable conditions for access to the physical network infrastructure;
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. efficient management of radio frequencies by creating the conditions for investment to new generation wireless networks and development of modern technologies and services; . protection and enforcement of consumers’ rights.
In order to ensure the possibility for electronic communication end users, including consumers, and users of postal services to use different electronic communication and postal services under favourable conditions taking in consideration technological developments in the market and change of needs of users and business, the priority of RRT in 2013 is protection and enforcement of rights of consumers of electronic communication services and users of postal services. The protection of the rights and legitimate interests of the ICT service users, including consumers, is one of the essential tasks of RRT, relating to investigation of service users’ complaints, supervision of provision of universal services, etc. In order to ensure the right to receive services of the appropriate quality to service users, including consumers, RRT also performs quality control of public ICT services. In 2013, in order to evaluate the influence of the RRT implemented measures on improvement of quality of user information and servicing, it is planned to perform the survey on administration and public service quality and to calculate the factor of user satisfaction. In 2012 the World Radiocommunication Conference WRC-12 was held in Geneva, during which the issues, directly concerning Lithuania’s communications market and which are going to directly influence the plans of RRT for the time period until 2015, were discussed. Discussions were held regarding development of terrestrial and satellite radiocommunication, the existing provisions of the Radio Regulations were amended and new provisions as well as resolutions and recommendations were adopted, certain provisions of the radio frequency allocation table were amended. As it was already mentioned, the European Parliament and the Council approved the RSPP on 14 March, 2012. One of the main objectives of RSPP is to make available more radio spectrum for wireless broadband services. Taking in consideration the fast changes in technologies, decisions made during the World Radiocommunication Conference WRC-12 and Decision No. 243/2012/EU of the European Parliament and of the Council, the second priority of RRT in 2013 is the management of radio frequencies (channels) by creating the conditions for investment to new generation wireless networks and development of modern technologies and services. When drafting legal acts jn 2013–2015, attention will be focused on efficient use and management of electronic communications resources, creation of favourable technological conditions and harmonisation of legal acts with the EU regulatory framework. In order to achieve efficient and harmonized management and use of radio frequencies (channels) on international and EU level, and implementing Decision No. 243/2012/EU approved by the European Parliament and the Council on 14 March, 2012, which establishes a long-term Radio Spectrum Policy Programme, RRT shall prepare the following in 2013-2015: – The draft for amending the Plan of Radio Frequency Use; – The draft for amending the Requirements for Radio Frequencies (Channels) Allocation and Use. In order to improve the existing legal regulation in the area of supervision of electronic signature, RRT is planning to prepare the following in 2013-2015:
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– The drafts of the amendments of Resolution No. 2108 of the Government of the Republic of Lithuania of 31 December, 2002 approving the Requirements for the Providers of Certification Services, Issuing Qualified Certificates, Requirements for the Electronic Signature Equipment, the Procedure for Registration of Certification Services Providers Issuing Qualified Certificates, and the Electronic Signatures Supervision Regulations – The draft of the amendment of the Description of the Procedure for Registering Persons for Obtaining Certificates and Provision of Consultation Services approved by the Order of the Director of RRT; – The draft of the amendment of the Establishment of the Minimum Amount of Insurance for the Providers of Certification Services Issuing Qualified Certificates approved by the Order of the Director of RRT; – The draft of the amendment of the Requirements for the Inspection Procedure of Electronic Signature approved by the Order of the Director of RRT; – The draft of the amendment of the Description of the Procedure of Provision of Time Labelling Services approved by the Order of the Director of RRT. During the the Lithuanian Presidency of the Council of the European Union in 2013, RRT experts shall further participate (on the EU level) in decision making regarding the proposal of the European Parliament and of the Council on electronic identification and trust services for electronic transactions in the internal market. The aforementioned proposal aims at a comprehensive system covering electronic identification, authentication and electronic signatures. One of the main objectives of RRT when implementing provisions of the Law on Electronic Communications (Official Gazette Valstybės Žinios, 2004, No. 69–2382) is to ensure conditions necessary for efficient competition in electronic communications market. Ensuring of competition on the broadband communication services market by creating favourable conditions for access to the physical network infrastructure is one of the main objectives of RRT in 2013. In 2012, RRT performed analysis of the Wholesale broadband communication access market and determined adequate obligations for the undertaking having significant market power. Cooperation with municipalities was also further developed in order to ensure maximum accessibility to maps of the digital electronic communication infrastructure for undertakings developing connection infrastructure. This activity is anticipated to be further developed in 2013. During the Lithuanian Presidency of the EU Council in 2013, RRT is ready to participate in discussions regarding the initiatives of the European Commission in area of development of the broadband communications infrastructure and to provide expert opinion. RRT, referring to EC Recommendation 2007/879/EC of 17 December, 2007 on relevant product and service markets within the sector of electronic communications, which could be subject to the ex-ante regulation according to Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communications networks and services (the Framework Directive), is planning to finish the analysis of the following markets started in 2012: – Analysis of publicly available local and/or national telephone services at a fixed location for residential customers; – Market analysis of publicly available local and/or national telephone services at a fixed location for residential customers; RRT | 17
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– Market analysis of publicly available local and/or national telephone services at a fixed location for non- residential customers; – Market analysis of publicly available international telephone services at a fixed location for non- residential customers; – Market analysis of broadcasting transmission services to deliver broadcast content to end users. In 2013 it is also planned to start 3 market analysis. The Digital Agenda for Europe is one of seven main initiatives implemented under the Europe 2020 strategy for smart, sustainable and inclusive growth. EU economic growth would be promoted significantly after the Digital Agenda for Europe established by the European Commission is implemented; advantages of the digital era could be used by all the society. The Initiative is intended to receive efficient economic and social benefits from the common digital market, to reach the objective to provide the possibility to all residents to use broadband Internet by 2013 and to allow even faster Internet (the speed rate over 30 Mbps) by 2020 and to reach the objective that 50 per cent or more of European households use the Internet connection of a speed rate higher than 100 Mbps. The Government of the Republic of Lithuania, by its Resolution No. 301 of 16 March, 2011 approved the Programme of Development of the Information Society in Lithuania for 2011–2019 (Official Gazette Valstybės Žinios, 2011, No. 33-1547) with the aim to identify the priorities, objectives and tasks for development of the information society in order to ensure the widest use of the social and economic possibilities, provided by the information and communication technologies, and, first and foremost, the Internet, which is a very important tool for economic and social activities whereby one can provide and receive services, work, entertain oneself, socialize and freely express one’s opinion. When implementing Lithuanian Information Society Development 2011-2019 Programme, the Government of the Republic of Lithuania approved by Decision No. 1281 of 24 October, 2012, Interinstitutional Activity Plan of Lithuanian Information Society Development 2011-2019 Programme Implementation (Official Gazette Valstybės Žinios, 2012, No. 125–6272); RRT also implements the measures of the aforementioned programme. Another important area of RRT activities is ensuring competition on the postal and courier services markets. One of the essential objectives of the EU postal policy is the coordination of a gradual and controlled liberalization of the postal services market and ensuring the provision of universal postal services at least once per day and five days per week on the same conditions to all users. In order to fully shape the internal EU postal services market (OL 2008 L52, p. 3), on 20 February, 2008 the European Parliament and the Council adopted the new Directive 2008/6/EC (hereinafter referred to as the Directive 2008/6/EC), partly amending Directive 97/67/EC. According to the said Directive the postal market is liberalized since 1 January, 2011, though eleven EU Member States, including Lithuania, were granted an exemption to postpone the opening of the postal market until 01 January, 2013. Taking in consideration the amendments made to the Postal Law (Official Gazette Valstybės Žinios, 2012, No. 135–6867), transposing the third Postal Directive into the system of Lithuanian National Law, the following drafts of the Postal Law and its implementing legal acts shall be prepared: – Draft of the Decision of the Government of the Republic of Lithuania On the Approval of Rules for Compensation of Loss-Making Universal Postal Services; RRT | 18
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– Draft of the Order of the Director of RRT On the Approval of Rules for Cost Accounting of the Universal Postal Services Provider; – Draft of the Order of the Director of RRT On the Approval of the Rules for Resolution of Disputes between the End Users and Undertakings, Providing Electronic Communications Networks and/or Services and between theEnd Users and Providers of Postal and/or Courier Services”; – Draft of the Order of the Director of RRT On the Approval of the Rules for Resolution of Disputes between Undertakings, Providing Electronic Communications Networks and/or Services and Disputes between Providers of Postal Services and/or Courier Services; – Draft of the Order of the Director of RRT On the Approval of the Rules for the Provision of Postal Services; – Draft of the Order of the Director of RRT On Amendment of the Rules for Publishingof Information related to the Implementation of the Law on Electronic Communications of the Republic of Lithuania and of the Postal Law of the Republic of Lithuania”. The result of liberalization of the postal market – increased competition encouraging the participants of the market to operate in a more efficient manner, to keep the existing and to attract new users, to improve the quality of the provided services and to provide new services corresponding to the new market demands. However, even after the liberalization of the postal market there, an obligation to ensure the provision of universal postal services on the entire territory of the country on the same conditions to all the users of universal postal services at least once per day and five days per week, established with regard to the Member States, will undoubtedly be retained. The challenge of the liberal postal market is to ensure uninterrupted provision of universal postal services upon refusal of the reserved postal services. With the rapid growth of the ICT sector and development of the e. business, e. health, e. learning and other ICT services, network and information security becomes increasingly relevant on the level of not only an individual country, but also the whole world. Electronic services may be developed only after the security of networks and information is ensured. In 2013, RRT shall devote much attention to the cyber-cecurity srategy established by the European Commission and to the proposal of directive of the Commission on networks and information security, and shall also participate in analysing the aforementioned documents and preparing Lithuania’s position. The cyber-cecurity strategy “Open, Safe and Secure Cyberspace” is a comprehensive EU vision how to prevent threats in cyberspace and what counter-measures to take. The concrete actions are aimed at the increase of information systems resistance to electronic crimes and at ensuring of the development of the secure digital economics. The goal of all RRT activities is to ensure a variety of technologically progressive, top quality, safe and affordable information and communications technologies (ICT) and postal services/products to every citizen of Lithuania. The measures, foreseen in the RRT Strategic activity plan 2013, will follw up the activities, started in the previous years for the purpose of continuous implementation of the system for encouraging of competition in the electronic communications sector, regulated by both Lithuanian and EU legal acts as well as the state's policies in the ICT and postal and courier services' sectors.
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BRIEF OVERVIEW OF DEVELOPMENT OF THE COMMUNICATIONS SECTOR
Electronic communications market. In 2012, total revenues from electronic communication market amounted to LTL 2.271 billion. The largest part of these revenues (44.33 per cent) was revenues from mobile telephone communication sector. The Internet access sector in terms of revenues was the second in the market (17.91 per cent). Network connection revenues amounted to 15.39 per cent of all market revenues, followed by fixed telephone communication sector (10.81 per cent), pay TV sector (8.31 per cent), data transmission services (3.8 per cent), leased lines services and radio and television transmission services (1.19 per cent each), optic lease line services (1.04 per cent) and line radio services (0.03 per cent) sectors. In 2012, the trend of reduction of revenues in the electronic communications market remained but, compared with 2011, the rate of reduction of the electronic communications revenues slowed down by 1.3 percentage point (during 2012 the total revenues of the sector reduced by 5.2 per cent, during 2011 – by 6.5 per cent) (see Figure 1). During 2012, compared with 2011, networks connection services decreased the most (LTL 78 million), mobile telephone communication revenues (LTL 28 million), fixed telephone communication revenues (LTL 25 million). Revenues from network connection services decreased due to the decrease (determined by RRT) of prices for network connection services. Revenues from mobile telephone communication and fixed telephone communication services decreased due to the existing competition between service providers and due to change of usage trends. The usage of public telephone communication varied differently: the usage of mobile telephone communication, in terms of the duration of calls, increased by 3.8 per cent, and the usage of fixed telephone communication services decreased by 10.5 per cent. In 2012, compared with 2011, the number of the Internet access subscribers increased by 6.6 per cent, the number of mobile communication subscribers – by 8.7 per cent and audio-visual services – by 4.9 per cent.
16 10.3 12 11.9 7.1 9.8 5.1 8 7.30 7.80 7.80 5.9 4 3.5 5.3 2.9 1.3 0 -4 -7.7 -6.5 -10.7 -8 -5.2 -12 -16 -15 2004 2005 2006 2007 2008 2009 2010 2011 2012
Change of GDP Change of the sector
Figure1. The changes of Lithuania's GDP and electronic communications sector, 2004–2012, per cent. Source: Statistics Lithuania, RRT
The revenues of the mobile communication segment, which still remains the largest in the electronic communications sector, have been reducing since 2009. In 2012, compared with 2011, the revenues from
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provision of public mobile communications networks and services reduced almost by 3 per cent. The reduction of the mobile communication revenues mostly resulted from the prices of calls, which reduced by LTL 66 million or by 19.3 per cent per year. In 2012, the revenues in public fixed telephone communication market from the provided fixed communication services decreased by 9.4 per cent, and the number of lines of fixed telephone communication decreased by 5.2 per cent (see Figure 2). Despite the decrease in revenues and number of lines, revenues for one line remain stable and almost the same during the year: in 2011 it amounted LTL 11.31 for a month, in 2012 – LTL 11.57 for a month. It shows that the providers of fixed and mobile communication services, by competing with each other, adjusted the pricing of the retail services, shaped different service offers, tailored to suit different consumers’ needs and reduced the prices of services.
1500 1389 1355 200 1236 1174 1126.4 167.7 149.9 149 984 150.7 154.3 150 139.4 146.2 967 916 1000 127.9 100 443.7 424.6 500 412.7 399.7 354.9 302.6 270.9 245.6 50
0 23.5 23.4 23.7 23.4 22.5 22.6 22.6 22.1 0 2005 2006 2007 2008 2009 2010 2011 2012 Revenues from provision of public mobile telephone communication networks and services Revenues from provision of public fixed telephone communication networks and services The Number of public fixed telephone communication lines per 100 residents Number of active public mobile telecommunications subscribers per 100 residents Figure 2. The revenues from provision of public fixed and mobile telecommunications networks and services (LTL million) and the number of fixed and mobile telecommunications lines per 100 residents in 2005-2012 Source: RRT
One of the segments, which, to a certain extent, slowed down the rates of reduction of the electronic communications sector in 2012, was the Internet access services (including other data communication services) segment. The number of subscribers, using the Internet access services, has been continuously growing since 2005. In 2012 the number of subscribers, who used Internet access, grew by 65.4 thousand, or 6.6 per cent (see Figure 3).
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1000 45 35.4 40 800 30.9 35 27.1 30 600 23.9 21.2 25 17.3 20 400 12.3 15 7.6 200 10 257 418 582 710 796 880 989 1054 5 0 0 2005 2006 2007 2008 2009 2010 2011 2012
The number of Internet access service subscribers The number of Internet access subscribers per 100 residents
Figure 3. The number of Internet access service subscribers in 2006–2012, thousand Source: RRT
By the end of 2011 the penetration of Internet access services, provided over broadband (including the subscribers, connected over public fixed and/or mobile communication networks) reached 35.4 per cent of residents (see Figure 4). Despite the fact that the number of subscribers of the Internet access services increased by 6.6 per cent, revenues in 2012, compared with 2011, decreased by 1.81 per cent. Revenues for retail Internet access services in 2012, compared with 2011, increased by 0.25 per cent and revenues from wholesale Internet access services in 2012, compared with 2011, decreased by 18.6 per cent.
500 35.4 40 30.9 35 400 27.1 30 23.8 300 21.1 25 17.1 20 200 12.0 15 6.0 10 100 5 213 265 313 384 413 406 414 407 0 0 2005 2006 2007 2008 2009 2010 2011 2012
Revenues from provision of Internet access services Number of subscribers of broadband communication per 100 residents
Figure 4. Revenues from provision of Internet access services, million, LTL, and the number of subscribers using broadband communications technologies (connected over mobile and fixed communication networks), per 100 residents in 2005–2012 Source: RRT
In 2012 the electronic communications market participants invested less into the electronic communication networks infrastructure when in 2011. Compared to previous years, the investment decreased by 94 million LTL or by 26.2 per cent. (see Figure 5).
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700 3125 3500 671 2974 2884 3000 600 2695 2574 2516 2402 2271 2500 500 2029 2137 2000 400 461 1500 300 387 375 350 360 1000 310 299 311 200 273 277 266 500 100 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Total revenues from electronic communication market Investments to electronic communications networks infrastructure
Figure 5. The dynamics of value of the electronic communications sector and investment into the electronic communications infrastructure in 2001–2012, LTL million Source: RRT
Already for several years in a row the Internet access service providers dedicate the larger part of their investment to the electronic communications network infrastructure based on Next Generation Networks (NGN). It is also reflected in distribution of Internet access services subscribers: more than one third (38.2 per cent) of the entire Internet access service subscribers received the service over fibre lines. The second most popular way of connecting to the Internet was mobile communication (26.7 per cent) in 2012, pushing xDSL technology to the third place (17.4 per cent.). Wireless communication technologies retained a steady growth rate – in 2012, 12.2 per cent of subscribers connected to the Internet over wireless communication. The subscribers’ choice to receive Internet access services over mobile and wireless means of communication was determined by both the functionality of such services, which provides additional advantages, and the increasing penetration of the Internet services into more remote areas, where it is not economically feasible to provide Internet access services over fixed communication lines. The FTTx lines have been the main technology used for provision of broadband communication services in Lithuania for already for years in a row (see Figure 6). According to the data of 2012, there were 402.7 thousand fibre lines in Lithuania, provided by 57 undertakings. From 2005 to 2012 the number of FTTx lines grew 31.2 times, during 2012 the number of lines grew by 11.72 per cent.
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252 705 232 479 216 653 202 847
148 013 149 952 126 823 94 700 91 037 52 664 51 703 12 937 15 126
2005 2006 2007 2008 2009 2010 2011 2012 FTTH FTTB FTTH ir FTTB
Figure 6. The dynamics of the number of local fibre lines in 2005–2012, units. Source: RRT
In 2012, 40.2 per cent of all the subscribers, connected to the Internet over fibre lines, were subscribers of TEO LT, AB (see Figure 7). During the period of 2005–2012 the trend of reduction of the market share of the Internet access service providers was observed. However, the market share of other Internet access service providers grew by 1.7 per cent in 2012, while the market share of TEO LT, AB decreased by the same percentage. During the period of 2007–2012, when TEO LT, AB commenced the provision of fibre network, the number of TEO LT, AB subscribers who connected to the Internet over fibre lines, grew by 160.2 thousand, while the number of subscribers of other service providers grew by 147.7 thousand during the same period.
100% 420 359.9 402.6 360 305,7 300 254.5 99.4% 99.9% 98.1% 85.2% 66.1% 61.0% 59.8% 240 159.5 75.4% 180 94.7 120 52.6 33.9% 39.0% 40.2% 12.9 24.6% 60 1.9% 14.8% 0% 0.6% 0.1% 0 2005 2006 2007 2008 2009 2010 2011 2012 m.
TEO LT, AB Other providers Number of subscribers
Figure 7. The market shares of TEO LT, AB and other Internet access service providers against the dynamics of the number of subscribers, connected to the Internet over fibre lines, per cent and the total number of subscribers in 2005–2012, thousand Source: RRT
In the global context Lithuania is noticed as one of the leading states in terms of development of next generation access (NGA) networks. According to the data of the research, performed by the association FTTH Council Europe and iDate, Lithuania is Europe’s leader in terms of broadband Internet penetration over fibre lines (Lithuania ranks 5 in the world after South Korea, Japan, Hong Kong, UAE). During the research the fibre communication penetration per 100 households was evaluated and the countries having no less than 200.000
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households were rated. The information is presented only with regard to the European countries, in which the penetration is greater than 1 per cent. The study of fibre technologies development trends, published by FTTH Council Europe, stresses that the FTTx technologies are considered among the most important drivers of economic growth: the new technologies allow for developing new services and new jobs, efficient management of companies’ resources and saving time. Without any doubt the technologies open a path for innovations, which, in turn results in more efficient competition in the country. On 29 October, 2012 analogue terrestrial television was switched-off and replaced by digital terrestrial television. All the consumers, who until then viewed free-of-charge analogue terrestrial television and wished to retain the possibility to view television programmes, had to make a decision regarding several alternatives, i. e. purchase a digital television set top box (and antenna), purchase a television set with an integrated digital signal coding box or become a subscriber of pay TV service providers. At the end of 2012 approximately 57.2 per cent of all the households used pay TV services. It is likely that the number of pay TV subscribers will grow in 2013. Almost 56.2 per cent of pay TV subscribers received the television signal digitally. Compared to 2011, the number of subscribers of digital pay TV grew by approximately 17.27 per cent in 2012. The next generation broadband communication networks, which have been successfully developed in Lithuania, determine the uptake of rebroadcasting of the television programmes in the IPTV format. At the end of 2012 the IPTV services were provided by 9 companies, 101.8 thousand subscribers viewed television programmes in the said way and, compared to the data of 2011, the number of subscribers grew by 41.6 per cent.
Postal and courier services market. During 2012 the total postal and courier services market, in terms of revenues, grew by 13.9 per cent and reached LTL 309.9 million (see Figure 8). When analysing the dynamics of the postal and courier services market revenues, it can be seen that in 2009 the postal and courier services markets underwent a significant drop in revenues (-12.6 per cent), in 2010 the growth amounted to 5.5 per cent and the result of 2011 exceeded the level of revenues on the postal and courier services market before the recession period and in 2012 the revenues compared with 2011 grew by 13.9 per cent. The increase of revenues was observed both on the postal and the courier services market – the postal market grew by 18.1 per cent and amounted to LTL 188.9 million and the courier services market grew by 7.9 per cent, totalling to LTL 121 million.
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121 98.4 112.2 90.2 97.7 103 91.6 69.8 188.9 160.2 159.9 129.9 128.4 134.8 104,6 78.3
2005 2006 2007 2008 2009 2010 2011 2012
Revenues from courier services Revenues from postal services
Figure 8. The revenues from postal and courier activities in 2005–2012, LTL million Source: RRT
The amount of domestic items of correspondence, including direct mail, sent on the total postal and courier service market in 2012, compared with 2011, increased by 2.2 per cent; the amount of received domestic items of correspondence, including direct mail, reduced by 14.7 per cent; the amount of sent domestic postal parcels grew by 20.9 per cent and the amount of domestic received postal parcels grew by 67.8 per cent.
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SUPERVISION OF ACTIVITIES OF UNDERTAKINGS
Common market supervision principles
In 2012 RRT focused on the provision of methodological assistance to undertakings, however RRT still imposed two economic sanctions on electronic communication services providers and 1 sanction on a postal service provider. Plans for inspecting undertakings were approved in 2012 by RRT. Notifications and questions regarding the inspection were sent to the undertakings 10 days before the inspection. Essential structure changes are planned by RRT in 2013, the aforementioned changes shall ensure easer inspection coordination and qualitative and equal consultation. In as much as the number of electronic communication and postal service providers stabilized and the number of violations was steady for several years now, it is planned to reduce the number of inspections of undertakings.
Supervision of undertakings, engaged in electronic communications activities
RRT consults market players (and arranges meetings, if necessary) on the issues of provision of wholesale and retail electronic communications services, interconnection of electronic communications networks and provision of access in order to ensure that the legal acts, regulating electronic communications activities, are not violated and that the undertakings, having a significant market power, perform their obligations. In 2012 RRT provided replies to 28 inquiries regarding electronic communications activities. When providing replies to undertakings’ enquiries, RRT most frequently had to explain the general conditions for engaging in electronic communications activities, the prices for the provided electronic communication services and the main provisions for interconnection of electronic communications networks. The existing and potential providers and customers of electronic communications services, wishing to receive answers to questions of their concern, may provide an enquiry at the “Questions” section of the website of RRT. The website columns, describing individual areas of activities of RRT contain sections, providing the summarized consultations on the most frequently asked questions (hereinafter referred to as FAQ) (for instance, about common use of the infrastructure, access, including networks interconnection, etc.). According to the Law on Public Administration of the Republic of Lithuania, all the replies by RRT are provided the status of a public consultation. In 2012, according to the plan, approved by the Director of RRT, 27 undertakings providing electronic communications services were inspected (see Figure 9). 9 service sales points – customer service centres were inspected in different cities of Lithuania. Violations were determined in 16 undertakings while performing the planned inspections. The most frequent deficiencies observed – failure to observe the conditions of typical contracts with the users, non-compliance of the information, published on the enterprises’ websites with the requirements, provided by legal acts. After the admonitions, all notices of officers authorized by RRT were taken in
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consideration and all violations were eliminated by the end of the inspection. During the inspections, 15 companies were consulted regarding harmonizing of contract conditions with the requirements of legal acts and regarding the information published on the website. During the inspections, service providers were asked to provide proposals regarding market supervision and legal regulation of activities. The market participants asked to take in consideration that some of the provisions of the legal acts are lagging behind the technology development. In 2012, 6 complaints of service providers or interested persons regarding dangerously, illegally or of poor quality installed electronic communication infrastructure and possible illegal fund transfer from calling card were examined. None of the complaints during the inspection proved to be true. 97 undertakings were admonished for the failure to provide activity reports in due time. After verbal warning by phone, 70 reports were delivered. Regarding other 27 undelivered reports, companies possibly performing the activities were searched for, but RRT was not able to find them under the contacts known. Some of these companies were withdrawn from the list of service providers after declaration that such company declared the intention to perform electronic communication activities but failed to do so or stopped its activity (see Figure 10). RRT, for the purpose of easing the undertakings’ burden as regards the provision of periodical reports on the executed electronic communications activities, cooperates with Lithuanian Department of Statistics and provides it with the available market information. One company, who failed to deliver the form on market report intentionally, was warned regarding a possible economic sanction. After a notification in writing, the form was delivered. Two economic sanctions for failure to transfer the telephone number of subscriber were initiated (see Figure 11.) In 2012 it was also inspected how the telecommunication operators or public telecommunication service providers approve and publish technical specifications of interfaces used for provision of their services. New interfaces were not published.
Numbet of the planned inspections Number of inspections not planned
27
20
15 15
9
3 4 0
2009 2010 2011 2012
Figure 9. Number of inspections of electronic communication providers in 2010–2012 Source: RRT
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155
117 97 76 57
2008 2009 2010 2011 2012
Figure10. The change of the number of notifications to providers of electronic communications services as regards failure to provide reports in 2008−2012 Source: RRT
3
2 2 2
0
2008 2009 2010 2011 2012
Figure11. The number of sanctions, imposed with regard to electronic communications activity violations in 2008−2012 Source: RRT
Supervision on the postal and courier services market
Upon performing the supervision of the postal and courier service markets, in 2012 RRT performed 44 (44 also in 2011) planned inspections of undertakings’ activities (see Figure 12). 44 inspections of universal service provision points of the state enterprise Lietuvos Paštas AB were also performed. As in 2011, during the planned inspections the utmost attention was drawn to preventive inspections of the activities of new market participants, the companies, which had not been inspected by RRT before or the companies, which allegedly provided courier services (i. e., advertise such activities without informing RRT on the commencement of provision of activities). During the inspections the undertakings were provided comprehensive consultations, stressing the main requirements of the legal acts for operation on the postal and courier service market. To have precise information on the providers of courier services, during the planned inspections of RRT were inspected the companies which were included into the list of courier services providers published by RRT
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and which, however, periodically notified RRT that they did not perform courier services provision activities or provided no information on the performed activities. The main problems faced when supervising postal and courier market are the following: failure to provide obligatory quarter and annual activity reports in due time, failure to announce the start or the end of postal and courier service activities, the changed point of service providing, avoiding cooperating or to associate with officers performing the inspections. One of the main problems is that documents confirming the personal acceptance of parcels in writing are not stored. Ambiguous and uncertain contracts are also a problem; it is hard to determine the nature of the services provided. Unplanned inspection of one undertaking was initiated on the basis of customer complaints and other received information.
44 2012 1
44 2011 7
51 2010 5
Number of the planned inspections Number of inspections not planned
Figure 12. Number of inspections of postal and courier service providers in 2010–2012 Source: RRT
During the planned inspections, performed in 2012, 7 violations were identified; violations were eliminated by the service providers or the activity was stopped immediately. There was also one determined violation not eliminated in the term determined in the legal acts, an economic sanction was imposed due to that (see Figure 13). 84 undertakings were admonished for the failure to provide quarter or annual activity reports in due time, and 26 undertakings providing postal and courier services could not be found by any contacts known (see Figure 14). 65 reports were delivered by the admonished undertakings. During inspections, undertakings made proposals how to supervise and regulate the market more efficiently. In their opinion, it is necessary to change the periodicity and content of the report on activity performed, to improve analysis of information stored by RRT and to regulate service quality. It is important to set out the requirement to indicate on the parcel the sender or/and telephone, address of service provider, to separate mail and cargo transportation services (in as much as the same service provider provides both postal delivery and courier cargo transportation services), also to supervise market participants, acting without notification of RRT, more strictly.
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10 101 105 93 90 84 7
2 0 1 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
Figure13. Number of measures applied for violations of Figure 14. Change of number of notifications delivered postal and courier activities in 2008–2012 to postal and/or courier service providers regarding Source: RRT undelivered activity reports in 2008−2012 Source: RRT
Surveillance of radiocommunication equipment and telecommunications terminal equipment market
When performing the surveillance of the market of radio equipment and telecommunications terminal equipment, RRT6 cooperates with the Customs Department. In 2012, according to the data, received from the Customs Department, 4 731 (see Figure 15) types of radiocommunication equipment and telecommunications terminal equipment, brought into the country, were analysed. Compared to 2011, in 2012 the number of brought equipment remained almost unchanged. During the market surveillance in 2010-2012, it was noticed that the number of radiocommunication equipment and telecommunications terminal equipment imported from EU countries was increasing.
6 For the purpose of ensuring of availability of high-quality and safe radio equipment and telecommunications terminal equipment, compliant with the EU requirements, on the market of the Republic of Lithuania, RRT performs surveillance of the market of such equipment referring to the Technical Regulation of RadioEquipment and Telecommunications Terminal Equipment (hereinafter referred to as the Regulations), establishing the conditions for free movement, provision to the market and use of radio equipment and telecommunications terminal equipment as well as the essential requirements and obligations, relating to the information on the interface specifications, etc. The Regulation implements Directive 1999/5/EC of the European Parliament and the Council of 9 March, 1999 On radio equipment and telecommunications terminal equipment and the mutual recognition of their conformity (OL 2004 special edition, section13, 23 volume, p. 254).
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8000 7000 6700 6000 4752 4731 5000 4585 4085 4000 3000 2000 1000 0 2008 2009 2010 2011 2012
Figure 15. The number of types of equipment brought from other countries in 2008–2012, units Source: RRT
Table 2 shows the results of surveillance of radio equipment and telecommunications terminal equipment market in 2010–2012. 125 types of radio equipment and telecommunications terminal equipment were examined for compliance with the administrative requirements of the Technical Regulation of Radio Equipment and Telecommunications Terminal Equipment (hereinafter referred to as the Regulation) in 2012: 46 of them were examined in Vilnius, 37 in Kaunas and 42 in other cities. 49 types of equipment failed to comply with the administrative requirements of the Regulation, 6 of them did not have the CE marking and declarations of conformity. The supply of such equipment to the market of Lithuania was suspended by importers themselves. The number of equipment, which did not have the CE marking and declarations of conformity remained almost unchanged. 19 types of the equipment did not have declarations of conformity during the inspection. Importers delivered all declarations of conformity of all equipment. It is very important that cases when CE declaration of conformity is not provided together with the equipment, as it is required by the Regulation, decreased twice; it should be noted that manufacturers have the declarations of conformity and present them promptly on demand. Putting of 26 types of equipment on the market without a prior notification to RRT in due time, as prescribed by the Regulation, was established. All the importers provided their notifications after the requirement to do so.
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Table 2. The results of surveillance of radiocommunication equipment and telecommunications terminal equipment market in 2010–2012 The The The The results of inspections number number number in 2010 in 2011 in 2012 Total number of the examined equipment units 169 136 125 Incompliant with the requirements 68 47 49 The CE marking and declaration missing 7 5 6 The declaration of conformity absent 61 42 19 The putting on the market suspended 14 12 13 The notification is obligatory 62 50 44 Notifications presented 29 19 18 Notifications not presented 33 31 26 Source: RRT
In 2012 RRT continued monitoring and inspection of trade of equipment on the Internet. In case any incompliance of the declared parameters of the equipment, advertised and offered to consumers with the technical and/or administrative requirements provided by the Regulations is established during the monitoring, RRT contacts the shop with the requirement to discontinue advertising such equipment. After such notifications, advertising of 2 types of jammers was stopped. 27 units of equipment of 18 types were taken from the market for laboratory testing. Incompliance of 7 types of equipment with the essential requirements of the Regulations was detected. 2 types of them were PMR (Personal Mobile Radio) stations and 5 of them were short-range devices (wireless calls, wireless sensors for security of premises, wireless systems for childcare). The main parameter of incompliance incompliance of the spurious emission of the transmitter with the requirements, provided by the standards. 3 types of equipment were suspended from the market by importers themselves. A dialogue with importers and/or manufacturers takes place regarding 4 types of equipment. The provision of these equipment to the market is suspended until the determined incompliances are eliminated. In case the unconformities are not eliminated, the putting of the equipment on the market shall be banned and the European Commission shall be notified.
Surveillance of the market of electromagnetic compatibility of equipment and devices
When performing the surveillance of the market with regard to compliance of equipment and devices with the Technical Regulation of Electromagnetic Compatibility (implementing the Electromagnetic Compatibility Directive 2004/108/EB7), 61 type of equipment was examined (see Figure 16), 14 of them were taken for laboratory testing.
7 Directive 2004/108/EC of the European Parliament and of the Council of 15 December 2004 on the approximation of the laws of the Member States relating to electromagnetic compatibility and repealing Directive 89/336/EEC (OL 2004 L 390, p. 24)
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61
44 44 44
2009 2010 2011 2012
Figure 16. The number of types of devices, examined against the administrative requirements of Regulations of Electromagnetic Compatibility in 2009–2012 Source: RRT
In 2012 RRT participated in a joint inspection by the Police Force Criminal Investigation Department, State Non Food Products Inspectorate and RRT regarding possible illegal provision of conditional access performed. During the investigation, 2 satellite receivers without CE labelling were identified. Their provision to the market was prohibited. In 2012, RRT participated in the 5th Market surveillance campaign of the EU regarding the compliance of power supply sources of portable computers with requirements of the Regulation of Electromagnetic Compatibility. When carrying out the campaign, 8 types of power supply sources were taken from the market for laboratory testing. Incompliance of 4 types of equipment with the essential requirements of the Regulation of Electromagnetic Compatibility was identified. The main reason for incompliance of power supply sources – conducted disturbances in power supply access and disturbance radiation. The putting of such equipment on the market was suspended. 1 type of LED lamps was eliminated from the market with regard to incompliance with requirements of the Regulation of Electromagnetic Compatibility. After inspection of a batch of the new type LED lamps for testing, it was determined that they do not comply with the requirements of the Regulation of Electromagnetic Compatibility and the supplier refrained from putting them on the market. The European Commission was notified about all the equipment eliminated from the market.
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Supervision of electronic signatures
Supervision of electronic signatures – procedures applied for controlling how certification service providers follow the determined requirements. It also aims at compatibility of electronic signature equipment in Lithuania and on an international level and at recognition at an international level of certification service providers accredited in Lithuania. In order to ensure smooth performance of the electronic signature supervision functions, in 2012 RRT examined documents provided by certification service providers issuing qualified certificates relating to the certification activities (rules for certification, provisions of certification activities, civil liability insurance policies etc.), and violations were not detected. Referring to Article 14(2)(11) of the Law on Electronic Signature of the Government of the Republic of Lithuania (Official Gazette Valstybės Žinios, 2000, No. 61–1827; 2002, No. 64– 2572) (hereinafter referred to as the Law on Electronic Signature), RRT prepared the annual report of 2011 on implementation of the Law on Electronic Signature of the Republic of Lithuania and delivered it to the Information Society Development Committee of the Parliament of the Republic of Lithuania. RRT provided certification service providers wth the information and methodological guidance (explanations regarding activities of certification service providers related to answers to inquiries of electronic signature users, procedures of surveillance of electronic signature, possibilities to use personal code as a special attribute in the qualified certificate etc.). During the two meetings of certification service providers and market participants organized by RRT, opinions, observations were shared regarding the existing and the proposed (by the European Commission) legal regulation of electronic signature and related services. RRT was a mediator when collecting information regarding certification services provided by the State Enterprise Centre of Registers on the basis of cooperation with the Estonian Electronic Signature Supervision. In order to ensure the possibility for users of electronic signatures in Lithuania and other EU countries to receive reliable information regarding trust services provided by certification service providers accredited and supervised in Lithuania, RRT prepares, manages and publishes the trusted list (hereinafter reffered to as the Trusted List) of certification service providers accredited and/or supervised by the Republic of Lithuania. RRT is in a process of developing software for managing the List of the trust certification services; this software shall be used for creating, managing and signing of the Trusted List. It is anticipated that this measure shall allow updating of the Trusted List more quickly and shall reduce the possibility of human errors. In 2012 the first stage of implementation of this investment project was performed. During this stage software for an RRT employee responsible for management of the Trusted List was installed in his working place; the software includes functions for creating and managing of the Trusted List in a computer readable form (XML format) and in a human readable form (PDF viewer) and management functions in a human readable form (PDF viewer) and functions for signing by electronic signature. It is planned to finish the project in 2013. In 2012 RRT prepared 4 legal acts regarding provision of certification services and inspection of electronic signatures. RRT completed coordination of the draft of the Government of the Republic of Lithuania Resolution No. 2108 of 31 December, 2002 “On the Approval of the Requirements for the Providers of Certification Services, Developing Qualified Certificates, the Requirements for the Electronic Signature Equipment, the Procedure for Registration of Certification Services Providers Developing Qualified Certificates,
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and the Electronic Signature Supervision Regulations” in 2012. This draft of the legal act was prepared by RRT in implementing the Protocol Decision of the Meeting of the Government of the Republic of Lithuania of 3 October 2011 regarding report No. VA-P-900-1-27 of 31 December 2010 of the Public Audit of the State Control of the Republic of Lithuania (“The usage of Civil Servant Certificates in Electronic Space (Protocol Decision No. 66, issue 7). The requirement for certification service providers issuing qualified certificates to approve documents regulating data protection policy was determined under this draft.
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PROTECTION OF CONSUMER RIGHTS AND LEGITIMATE INTERESTS
Measures for improvement of quality of consumer information and service
Taking in consideration the National Consumer Protection Strategy for 2011-2014 approved by Resolution No. 848 of the Government of the Republic of Lithuania on 7 July, 2011, RRT further devotes much attention to the following: strengthening of consumer rights protection system and measures promoting business self-regulation, dialogue with business subjects regarding protection of consumer rights, increase of consumer information and provision of quality service. In order to ensure more efficient organization of RRT work with consumers, the Plan of Measures for Improvement of Consumer Information and Customer Service in RRT was approved by the Order of the Director of the RRT No. 1V-652 of 22 May, 2012. In the plan of measures RRT activities in priority areas were distinguished, and measures for implementation of consumer awareness raising, improvement of customer service and protection of legal interests, cooperation, increasing of resposibility of service providers were determined. One of the most relevant initiatives organized by RRT in 2012 – resident consultation regarding compatibility issues of digital television receiving equipment. From 17 September, 2012 until 30 November, 2012, residents were consulted by phone: how to connect the digital television set-top box, in which direction the antenna should be set and what channels to select in order to see the main digital television programme broadcasted by network I of Lietuvos radijo ir televizijos centras, AB (hereinafter reffered to as Telecentras). In case of failure to solve the problem by phone, RRT specialists went to the residents, checked the installed equipment, performed necessary measurements if necessary, adviced regarding improvement of the equipment possessed (to change the type of antenna or the hight of its positioning, to purchase antenna amplifier, etc.) in order to ensure reception of the digital terrestrial television programmes of high quality. The service was provided in working days, consultation and visitation at home was free of charge. Consultations were provided by divisions of Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys of RRT Department of Radio Spectrum Control and Market Supervision. In this period RRT made about 1500 consultations, in 169 cases specialists of RRT went to the residents and helped them to receive digital terrestrial terrestrial signals. RRT, when implementing the provision of Resolution No. 480 of the Government of the Republic of Lithuania of 18 April, 2003 “On the Approval of the Description of the General Requirements to Websites of State and Municipal Institutions and Authorities” and applying the principle of publication, publishes relevant, constantly renewed information on the website www.rrt.lt. In order to improve user information quality, in 2012 RRT website information was constantly updated, renewed, press releases and news were published. Separate information blocks for issues relevant to the public were created, FAQ section was rearranged and supplemented (functionality of FAQ section was supplemented, administration of FAQ module was improved, sections of Business FAQ and Consumer FAQ were singled-out and supplemented by new categories). The Internet users may also use a version of RRT website especially created for mobile devices.
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RRT, in order to ensure user information, better quality of electronic communication services and better competition in the market (ipso facto indirectly promoting business self-regulation) created and administers the following websites: www.skaičiuok.lt The website of price comparison, helping consumers to choose the service providers’ offers which suit their needs the most in terms of the price of the electronic communications services. RRT constantly updates the changed tariffs of the services and supplements the database with new plans of service providers for consumers. Taking in consideration the change in electronic communication market, when the service providers are more frequently offering new payment plans to consumers, in 2012 RRT supplemented the price spreadsheet database with new plans offered by service providers and with the reduced tariffs for international roaming services which changed as of 1 July, 2012. Approximately 30 thousand users visited the website in 2012. www.epaslaugos.rrt.lt/matavimai This website was created in order to evaluate and to improve the quality of services provided over the new modern technologies and to inform the end users about the aforementioned and hereby to promote transparent competition. Here it is possible to get familiarized with the results of measurements, performed by the Internet access monitoring system (IPSS). The residents, visiting the website, can themselves evaluate the quality of the wireless Internet access services, provided over the networks of Lietuvos Radijo ir Televizijos Centras AB, Bitė Lietuva UAB, Omnitel UAB and TELE2 UAB in different regions of Lithuania. In 2012 the website was visited by approximately 3.4 thousand users. www.matuok.lt The website administered by RRT where the users may measure the speed of Internet access services and to evaluate if the provided service complies with the contract conditions. In 2012 the updated measuring system may be used by many users of smart phones having Flash sofware environment by using the main system address or address www.matuok.lt/matuok.swf. In both cases, measurement results will be stored in the system database and will be available for users in the Archive. RRT anticipates that this updated tool for Internet speed measuring will be useful to the users and will help to evaluate the quality of the services provided to them and to make appropriate decisions when choosing services satisfying their needs. In 2012 more than 71 thousand Internet users performed the measurements over this Internet speed measuring system.
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www.esaugumas.lt A specialized RRT website renewed in 2012 where detailed information regarding security in cyberspace is provided. Residents visiting this website are able to find information regarding computer and mobile viruses, spam, fraudulent activities on the Internet and other potential threats to security. Recommendations and advice how to avoid these incidents are provided in the website. A separate webpage is also dedicated to e-banking users. The webpage includes the main rules how to avoid threats when using e-banking services, advices how to choose passwords etc. E-commerce became very popular; therefore, even more fraud cases are recorded. For this reason, persons visiting this website are able to give inquiries regarding the security in cyberspace; answers are provided by RRT specialists. www.draugiskasinternetas.lt A website of the programme “Safer Internet” administered by RRT and Centre of Information Technologies in Education (hereinafter referred to as the ITC) with information relevant to children and parents relating online safety. In 2012 recommendations and advice regarding the usage of measures for filtering harmful content on the Internet, having negative influence on the young people, were given. Links for downloading content filtering programmes were indicated and installation and administration instructions provided. www.cert.lt This website advises the Internet users how to behave in case of an incident, provides the relevant information and legal acts pertaining to network and information security as well as the incidents' statistics. In addition, a user, by filling in a special form at www.cert.lt/pranesti.html, can report illegal content, harmful software, spam, counterfeit electronic documents, unauthorized connections and manipulation with electronic data etc. The remote training system for electronic signatures and electronic documents use www.elektroninisparasas.lt. was modernized in 2012. An electronic signature may be considered as a confirmation of the will of person in cyberspace. After the project has been implemented, the users are able to use the training system remotely, to receive all relevant information regarding electronic signatures, to check knowledge by tests and to receive an electronic certificate attesting to a successful completion of the tests. In order to promote self-regulation mechanisms of information and communication technology markets, RRT created and administers a website www.e-infrastruktura.lt. E-infrastructure is a common project of RRT and Lithuanian municipalities. In this website undertakings designing, providing and/or planning to provide electronic communication networks and/or services may access a system of spatial data of infrastructure administered by the municipalities. Information regarding engineering communications (communication cable ducts) is stored in this website; it is constantly supplemented by new data on designed and installed communications. Currently, the map of the infrastructure of terrestrial netwoks in Vilnius city are available in this RRT | 39
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website. RRT anticipates that this project will allow electronic communications service providers to use relevant information necessary for development of electronic communications promoting efficient long-term investment into development of electronic communications and efficient planning and development of broadband communications networks in cities of Lithuania. The RRT website also has electronic document system e-rrt, used for provision of information on commencement of activities, different requests, complaints, etc. In 2013 RRT will start a project for developing a website of electronic access to information regarding the broadband communications services provided in the territory of the Republic of Lithuania. Such information will help service providers to make decisions regarding the development of the existing access networks, to compete more efficiently in certain territories, and shall create better conditions for the users to choose offers which suit their needs the most. For RRT employees working with consumers and managing user complaints and claims, a seminar on the topic “Efficient cooperation when serving custormers, conflict solving and management of stressful situations” was organised. In 2012 RRT prepared a conception of a helpline for customer assistance installation and usage, installation of the free of charge helpline 8 800 20030 was commenced. The objective of the free helpline is to make a possibility for persons to address and make confidential comments regarding execution of functions of RRT employees, to directly contact adequate RRT departments, to receive the necessary information more efficiently. The aforementioned shall make a possibility to receive (during the survey) more detailed information on RRT customer service quality. After installation of the helpline there will be a possibility to perform statistical analysis and evaluation of the collected verbal inquiries of persons. Suggestions regarding further efficient organization of customer service will be made according to the results of the analysis and evaluation. In order to improve customer service quality in RRT, meetings, round-table discussions with electronic communications and postal and courier services providers, public institutions protecting user rights, state organizations regarding improvement of protection of consumer rights, were organised.
Protection of consumer rights and legitimate interests in the electronic communications sector
Supervision of the universal electronic communications services
Referring to the Rules for Provision of Universal Electronic Communications Services (hereinafter referred to as the Rules8), provision of universal services must be ensured to all the electronic communications service (hereinafter referred to as Services) users on the entire territory of the Republic of Lithuania. TEO LT, AB, the undertaking having significant power on the public fixed telecommunication networks and services market, is obliged to provide the following universal services: . connection to a public telecommunications network provided at a fixed location and public telecommunication services;
8 The Rules for Provision of Universal Electronic Communications Services were approved by the Order No. 1V-889 of the Director of RRT of 20 September, 2011 (Official Gazette Valstybės Žinios No. 116-5495) RRT | 40
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. public telecommunication services provided by public payphones; . Services of information provision about the subscribers to public telecommunication services; . possibility for the persons with disability or special needs to use electronic communication services. The provider of universal services must ensure that one is able to send and receive local, national long- distance and international telephone calls, fax messages and data over a public telecommunications network, provided at a fixed location at the capacity, able to ensure an efficient Internet access taking into consideration the technologies, used by the majority of subscribers, and the technological possibilities and ensure no less than 144 kbps upstream and downstream speed rate. In observance of the Rules, in 2012 RRT announced the proposal for the Providers to express their wish to provide universal services, however, no undertakings wishing to provide universal services without any compensation were present. In 2012, there were no breaches of the requirements set in the Rules (including the requirements for the price cap set for the universal electronic communications services) by TEO LT, AB the provider of universal services. In 2012 RRT announced a Report on the Provision of Universal Electronic Communications Services and the Price Changes Observed in 2011. The changes which occurred in 2012 are to be published by 1 May, 2013. By commission of RRT, in 2012 a representative survey of residents of the Republic of Lithuania was performed for the purpose of establishing the needs of the users of universal electronic communications services. The main results of the survey are the following: . 36 per cent of the residents stated that they used the public fixed telecommunication services, provided by TEO LT AB, (in 2010 – 42.5 per cent). Residents of retirement age are more frequent users of these services. 80 percent users stated that the services were satisfactory and 17 per cent of users stated that the services were too expensive. . 53 per cent of residents, who had a fixed telephone line, stated that they used it to connect to the Internet (in 2010 – 49.1 per cent). 50 per cent of users stated that the speed rate was 2 Mbps and more. . 2 per cent (12 respondents), who did not have a fixed telephone line at home at the beginning of 2011, stated that they applied to TEO LT, AB regarding installation of the line (in 2010 there was 3.5 per cent (23 respondents)). Majority of residents stated that the line was installed within the time period shorter than one month. . 62 per cent of respondents, who did not have a fixed telephone at home at the beginning of 2011, stated that they did not apply regarding installation of the line, since they used a mobile telephone at home (in 2010 - 65.5 per cent).32 per cent of respondents stated that they did not need a telephone at home (in 2010 – 28.9 per cent). . At the end of 2012 there was a possibility to use 1267 public payphones in cities and towns and 202 public payphones in other dwelling areas. In 2011, 1.5 per cent of respondents used public payphones at least several times per year (in 2010 – 2.5 per cent). 98.5 per cent of respondents did not use public payphones during 2011 (in 2010 – 96.7 per cent). Number of respondents that used public payphones at least several times per year since 2005 until 2012 decreased from 11 to 1.5 per cent (see Figure 17). RRT | 41
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. 71 per cent of the respondents, who used public payphones, were of the opinion that the number of payphones was completely sufficient (in 2010 – 49.2 per cent), 21 per cent expressed their wish to have a larger number of public payphones (in 2010 – 14 per cent). . If the functional potential of public payphones were expanded (if there was a possibility to write e-mails, have internet access), 3 per cent of respondents would use them more often (especially among the studying youth). . 48 per cent of respondents stated that they searched for information on telephone numbers (in 2010 – 48.3 per cent), including 1 per cent – quite frequently (several times per week), 17 per cent – sometimes (several times per month), 30 per cent – rarely (several times per year) (in 2010 – 25.3 per cent).
2011 1.5 2010 2.5 2009 5 2008 8 2007 9 2006 6.8 2005 11
Figure 17. Respondents that use public payphones at least several times per year, per cent
To summarize the results of the survey, the conclusion can be made that in 2011 universal electronic communications services were accessible to consumers and satisfied their needs, and public telecommunication services, provided at a fixed location, are provided on entire territory of the Republic of Lithuania.
The quality of wireless Internet access services
In 2012 major alterations in wireless Internet access monitoring system were noticeable – new LTE data transferring technologies were established and started operating in Lithuania. RRT with the aim to make appropriate technological assessment of quality of the provided services, performed the monitoring of wireless Internet services quality on the territory of the Republic of Lithuania in 2012 (see Figure 18). In 2012 more than 84 thousand data transmission attempts were executed in various cities and towns of Lithuania. The measurement data are collected in a data base administered by RRT, which can be analysed and compared by the consumers. The users can themselves assess and compare the quality of Internet access services provided by different operators according to the selected criteria on the RRT administered website at http://epaslaugos.rrt.lt/matavimai.
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Figure18. Monitoring places on the territory of the Republic of Lithuania in 2012
Figures 19 and 20 show the values of the Internet access quality indicator - the average data receipt speed rate and the average browsing speed rate – collected through wireless Internet access monitoring system in 2011 and 2012.
Omnitel 3813 6282
LRTC 6075 6071
Tele2 2520 4515
Bitė 4228 Lietuva 3758
0 1000 2000 3000 4000 5000 6000 7000 2011 2012
Figure 19. The average data receipt speed rate, kbps, in 2011 and 2012, kbps
Omnitel 208 425
LRTC 309 314
Bitė 296 Lietuva 285
Tele2 173 238
0 100 200 300 400 500 2011 2012
Figure 20. The average browsing speed rate, kbps, in 2011 and 2012, kbps RRT | 43
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The quality of public mobile telephone communication services
During 2012, measurements of the Internet services quality, voice telephony and SMS services quality indicators were assessed in the networks of public mobile telephone communication operators, operating in the Republic of Lithuania. In 2012, more than 2,500 voice telephony calls were made and more than 2,600 SMS text messages were sent by using mobile telephone communication services provided by Bitė Lietuva UAB, Omnitel UAB and Tele2 UAB. Figures 21, 22, and 23 show the comparison of the quality indicators (voice telephony call setup time, voice transmission quality of voice telephony, and SMS delivery time) with the results registered last year.
Bitė Lietuva Omnitel Tele2
11 10 9 8 7 6 5 4 2006 2008 2009 2011 2012
Figure 21. The comparison of the average values of voice telephony call setup time, s
Bitė Lietuva Omnitel Tele2
3,6
3,4
3,2
3
2,8
2,6
2,4 2006 2008 2009 2011 2012
Figure 22. Comparison of the average values of voice transmission quality of voice telephony, MOS-LQO score Note: the higher the MOS-LQO score, the better the voice transmission quality. The highest value of voice transmission quality, registered during a test call in 2011 was 3.83 MOS-LQO
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Bitė Lietuva Omnitel Tele2
13 12 11 10 9 8 7 6 5 4 2006 2008 2009 2011 2012
Figure 23. Comparison of the average values of SMS delivery time, s
Public fixed telephone communication services
RRT, executing the monitoring of providing universal electronic communications services and obligations to obey the rules of providing universal electronic communications services performed control measurements of call quality in the networks of the providers of universal services in the fourth quarter of 2012. During this period RRT performed 11 514 test calls in the fixed telephone communication network of TEO LT, AB. The unsuccessful national call ratio (0.39 per cent) and the average national setup time (0.68 s), did not exceed the threshold values of service quality indicators (no more than 5 per cent and no more than 10 s). Other services quality indicators declared by TEO LT, AB, also, do not exceed the threshold values of service quality indicators imposed on providers of universal services. Evaluation of service quality indicators is performed referring to the methodology, provided in the annex to the Rules for Assessment of Quality Indicators of Public Telephone Communication Services Provided at a Fixed location and Provision of Data, approved by Order No. 1V-261 of the Director of the Communications Regulatory Authority of the Republic of Lithuania of 24 February, 2006 (Official Gazette Valstybės Žinios, 2006, No. 27-926).
Cable television networks
In order to ensure that the users of the services, provided over cable television networks, receive high quality services, RRT performs planned examinations of the technical parameters of the cable television networks, which show whether the main technical parameters of cable television networks, determining the quality of radio and television signal transmission, are compliant with the mandatory requirements, provided in the Specification of the Requirements for Technical Parameters of Radio and Television Signals in Wire Distribution Networks. In 2012 RRT performed 19 examinations of technical parameters of cable television networks (CTN). One of the examined CTN failed to satisfy the mandatory requirements, provided in the Specification of the Requirements for Technical Parameters of Radio and Television Signals in Wire Distribution Networks. In
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addition, the main technical parameters of 6 CTN were examined when investigating the complaints received from consumers of cable television network services. The investigation showed that the technical parameters of one of CTN did not satisfy the mandatory requirements, provided in the Specification of the Requirements for Technical Parameters of Radio and Television Signals in Wire Distribution Networks. In 2012 RRT acquired the equipment to measure technical parameters of digital CTN and IPTV networks and evaluate the quality of services provided.
Investigation of consumers’ complaints
In 2012 RRT received 427 requests, relating to electronic communications services, from consumers: 39 consumers‘ requests concerning the quality of services, 29 – concerning the pricing and tariffs, 92 – concerning the issuance of VAT invoices and billing, 84 - concerning agreement conditions, 183 – concerning other issues (discrimination, etc.). (See Table 3).
Table 3. The reasons for complaints of electronic communications service users in 2011 and 2012. 2011 2012 Users’ requests
Received in total*: 215* 427 Enquiries 20 178 Complaints, requests to solve the dispute 195 249 The reasons for requests: 262 427 With regard to quality of services 37 39 With regard to prices and tariffs 22 29 With regard to issuance of VAT invoices and billing 65 92 With regard to agreements 74 84 With regard to changing the service provider 8 0 With regard to other issues 56 183 Decisions: 227 310 In favour of the consumer 67 98 In favour of the service provider 27 38 RRT reconciled the parties during the investigation of the dispute 47 63 Answered according to the procedure, established by the legal acts, or 86 105 forwarded to other institutions for investigation within their competence Other - 6 Source: RRT
* Quite frequently requests state several reasons for enquiry or complaint; therefore, the data on the total number of requests and reasons for requests do not coincide.
98 decisions were made in favour of consumers (in most cases concerning the pricing for line radio precarious services), 38 – in favour of the service provider, in 63 cases RRT reconciled the parties during the resolution of the dispute, in 105 cases an answer was given to the consumers according to the procedure prescribed by legal acts, providing explanations regarding the consumers’ enquiries. In 2012 the number of complaints and requests increased regarding the line radio services and cable television services.
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In 2012 consumers also applied to RRT by email or telephone with the request to provide explanations, assist in resolution of a conflict situation or provide methodological assistance. In 2012 more than 300 consumers applied to RRT by e-mail, more than 400 – by telephone. In 2012 complaints with regard to provided invoices for line radio services concerning which consumers have not had an agreement and were not using them were dominating. Consumers complained with regard to the quality of internet, free exchange of equipment, also, the conditions of agreements, provided invoices and billing, credit limit, and forfeit for the early termination of terminal agreements.
The activities of RRT in the area of ensuring network and information security Activities of the national CERT-LT team
The mission of the CERT-LT team of RRT is to ensure the investigation of incidents of electronic communications networks and information security incidents, coordinate the actions for the purpose of stopping the spread of incidents and prevent incidents. CERT-LT coordinates activities of networks and security of information solving the incidents of security of information and networks, performs the preventive activities by providing the information on new threats to computer users. The information is published on special websites www.cert.lt and www.esaugumas.lt, which also provide the users with recommendations and advice on how to avoid larger dangers and eliminate the consequences of the incidents. Main tasks of CERT-LT: . to register and investigate incidents in public electronic communication networks and (or) information systems in the Republic of Lithuania; . to coordinate the activities of CERT units and service providers in Lithuania reacting to the incidents, stopping further spreading or establishing the activities of public electronic communication networking and (or) informational systems after the incident; . to help other CERT units and service providers in extreme situations concerning electronic communication networks and information, in order to stop further spreading of the incident and diminishing its negative consequences; . to convey the material of the investigation of the incident to the institutions according to their competence, if CERT establishes the elements of possible criminal or administrative offences, regarding the security of electronic communications networks and information; . to encourage establishment of new CERT units in the Republic of Lithuania.; . to monitor the state of security of electronic communications networks and information in the Republic of Lithuania; . to cooperate with the CERT units and the incident investigation institutions in foreign countries, and act as a contact CERT unit in the Republic of Lithuania; also, investigate international incidents.
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When resolving the international incidents CERT-LT cooperates with the CERT units and incident investigation institutions operating in other states. To strengthen international cooperation, in 2012 CERT-LT signed the cooperation memorandum with the CERT unit of the Republic of Kazakhstan and other international partners (according to the agreements their names are not public) that investigate international incidents, in order to receive the information, regarding the offences associated with network and information security, captured in public electronic communication networks and information systems in the Republic of Lithuania. In 2012 CERT-LT investigated 21,416 notifications of incidents in the electronic space, received from providers of electronic communications services, foreign CERT teams, which perform international incident investigations and from the Internet users. Comparing with 2011 (21 860 investigated cases), the number of incidents decreased by 2 per cent (see Figure 24).
2012 21416
2011 21860
2010 10050
2009 12588
0 5000 10000 15000 20000 25000
Figure 24. The number of incidents investigated by the national CERT-LT team in 2009–2012 Source: RRT
The data of CERT-LT shows that the problem, most frequently faced by Lithuanian Internet users in 2012, was malicious software – it was the subject of 54.9 per cent of all the notifications. The majority of incidents were related to the malicious software, which is able to take over the control of the infected computer and involve it into a botnet (the so-called zombie computer network). Malicious software actively spread through the communication software Skype and social networks: it sent messages to users of Skype and Facebook and offered to visit malicious websites, where computers were infected by viruses (see Figure 25).
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Manipulations DoS 0.3 Other; 1.1 Phishing 0.9 0.1
Compromise 42.7 Viruses 50
Figure 25. The statistics of the notifications of network and information security incidents, investigated by CERT-LT in 2012, per cent Source: RRT
In 2012 the number of incidents, relating to system compromise, increased. CERT-LT investigated 9.148 incidents of such type, i.e. 8 per cent more than in 2011 (8 507 cases). The data of the investigations, performed by CERT-LT, showed that in most cases the detected computer system compromise was performed by automated tools, including botnets and computers affected by malicious software, inserting a malicious code into the public websites that were poorly secured. In 2012 the number of reported phising cases increased. The majority of this type of incidents reported were related to fake websites of financial companies, including financial companies and banks operating in Lithuania. Evil-minded persons used spam or other means of deceit offering to visit phishing Internet websites in order to get login passwords and/or other confidential data. CERT- LT made a public announcement to Lithuanian and foreign Internet service providers and administrators of servers that supervise such websites on the said issues. Considering the country of location of servers hosting such websites, usually the threat is successfully eliminated within a few hours. In 2012 CERT-LT investigated 61 DoS attacks. Comparing with 2011 (103 cases), number of incidents decreased by 41 per cent, however the scale of DoS attacks and technological complexity increased. According to CERT-LT data, these attacks were performed by automatic means, using botnet resources. Botnets, used for dissemination of malicious codes and spam, DoS attacks and other criminal activities, remain among the largest network and information security threats both in Lithuania and throughout the world in 2012 (a similar trend is foreseen to be present in 2013). According to the data of investigation performed by CERT-LT, approximately 7,000 active zombie computers were registered in Lithuania each day. All statistical reports of CERT-LT incidents are available at https://www.cert.lt/statistika.html. CERT-LT registers and announces the information on the operation of the computers detected in botnets (https://www.cert.lt/botnet.html) and the amount of spam that is registered by CERT-Lt sensors in email servers (https://www.cert.lt/spam_kiekis.html). The user, who suspects that his/her computed might be involved into botnet activities, can check it on the website of CERT-LT at https://www.cert.lt/tikrinti whether his/her computer IP address is not registered in the database of CERT-LT as one participating in harmful activities. The system of identification of malicious public websites created and improved by CERT-LT enables to detect malicious websites. In 2012 this system enabled to detect and solve more incidents associated with RRT | 49
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phishing of informational systems than in 2011. During further investigations, providers of internet services and persons responsible for website administration are informed about the causes identified. CERT-LT has an early warning system, which analyses the available information and, if necessary, notifies the corresponding groups of the IT security threats, also, the laboratory, which is frequently improved, that investigates and analyses malicious code, creates measures and recommendations for the users.
Reliability study of the Internet network infrastructure
Since 2008 RRT has been performing periodical assessments of reliability of Lithuania’s Internet infrastructure. The main aim of such assessments is to analyse the reliability of the national Internet network infrastructure of Lithuania and identify the potential risks. In 2012 RRT, together with academic community, as a part of a research, created new monitoring methods for defining, evaluating and establishing the reliability of critical objects of Lithuania’s Internet infrastructure, also, an instrumental model for monitoring implementation. According to these new methods, the critical objects of Lithuania’s Internet infrastructure were identified as the part of internet infrastructure (internet names, addresses, internet address spaces, etc.) that has essential functionality in providing critical electronic services to the society in these spheres: . banking and finances; . central Government and governmental services; . telecommunication, information and network technologies; . emergency and rescue services; . energy, electricity, health care services; . food, agriculture ( production, storage, distribution); . transportation, logistics, distribution; . water-supply. In 2012 analysis of threats for Lithuania‘s public internet network infrastructure and maximum impact on internet infrastructure was performed. During the research there was established that there is no possibility to close down internet infrastructure, due to the size and variety of internet infrastructure. Only partial functional disruptions of services provided are possible. During the analysis these threats to Lithuania‘s internet infrastructure were established: 1. Human mistakes that would cause disturbance of internet infrastructure. They are possible in the equipment systems of internet service providers – physical error (cutting of cable, incorrect equipment connection) and logical (wrong configurations) error. 2. Cyber-attacks, associated with motivated disruption of Lithuania‘s internet infrastructure or disruption of accessibility of services provided through internet infrastructure. This threat can be caused both by DDoS, which has a side effect of overloading infrastructure and by DNS, BGP attacks. 3. Adversities, including natural disasters, electricity cuts, unintended physical disruption of infrastructure and similar. RRT is going to continue the studies and analysis of the reliability of the critical Internet infrastructure nodes of Lithuania in greater detail, implementing new methods, as well as implementing a real-time monitoring system, which would enable to monitor actual BGP tracks, their accuracy and changes, collect data about the RRT | 50
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accessibilty of the objects of significant internet infrastructure and register the traffic generated during cyber- attacks and similar.
Implementation of the Safer Internet Project
Thinking of potential online threats to the children, need for public awareness raising in this area and control for illegal and harmful content, since 2007 RRT implements the EU Safer Internet programme and, in cooperation with the Centre of Information Technologies in Education (ITC) and other partners, executes the Safer Internet project. According to the agreement, signed by and between the European Commission and RRT, an 18-month project Safer Internet LT SIC was continued and finished in Lithuania in 2012. The main tasks of the project are public awareness raising on the issues of safe use of the Internet, fighting illegal and harmful content and behaviour, especially images of sexual abuse of children, cyber bullying, sexual harassment and grooming on the Internet. When implementing the aforementioned project, in 2012 educational events and series of classes to school students were arranged throughout Lithuania, educational information on safe use of the Internet was disseminated on the Internet and in the mass media, the Internet hotline activities were carried on and the Safer Internet helpline, which was established in 2011, continued its activities. Its aim is to provide emotional help to the parents and to the children over the phone and internet when encountered with an intimidating contact, behaviour, harmful content and other unpleasant or intimidating experience using internet technologies. RRT coordinated activities of Safer Internet helpline, Public Enterprise Vaikų Linija provided help for children over the phone and internet. One can call the helpline by dialling the harmonized European child helpline number 116 111. In 2012 RRT together with ITC continued to administer the website www.draugiskasinternetas.lt created for the Safer Internet Project, where children and their parents can find relevant information about the safety on the internet, Safer Internet Project, Safer Internet Day events, activities of international organizations Insafe and INHOPE. The website also informs about the hotline, which accepts the messages of internet users about the harmful and fraudulent content on the internet, also, provides the information abotut the helpline. In 2012, for the purpose of awareness raising, a social campaign intended to celebrate the international Safer Internet Day (hereinafter referred to as the SID 2012) was commenced, which was celebrated throughout the world on 7 February, 2012. The slogan of SID 2012 was “Let‘s unite the generations – let‘s open the digital world safely together!“. The day was intended to encourage the society to pay attention to the connection of generations, learning from each other and helping one another. The main highlight of SID 2012 – a national Safer internet conference entitled “Let‘s Open and Explore the Digital World Safely Together! “for children, young people and adults organised in the Lithuanian exhibition and congress centre Litexpo. The conference saw participation of about 300 school students from all regions of Lithuania, as well as teachers, parents. The organisers of the conference – RRT, ITC, the Ministry of Education and Science, Lithuanian Human Rights League, Child line Vaikų Linija, association Langas į ateitį, Microsoft Lietuva, TEO LT, Omnitel, and others. The conference was opened and the welcome seech was delivered by the minister of Transport and Communications of the Republic of Lithuania Mr. Eligijus Masiulis and RRT RRT | 51
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director Mr. Feliksas Dobrovolskis. The conference included games, tests, quizzes. Schoolchildren received various prizes. There were other very important events to mark this day: Safer Internet academy tour of Lithuania organized by Teo, RRT and ITC, drawing and comic strip contests in schools, lectures in schools given by Microsoft Lithuania, broadcast of Insafe video clip on the Lithuanian TV and other. When performing the hotline functions, in 2012 RRT received and investigated 607 reports on illegal or harmful content on the Internet, including 114 cases, where according to the coordinated criteria the hotline identified that the Lithuanian laws might have been violated due to illegal or harmful Internet content. All the collected materials were transferred to the competent institutions in Lithuania and abroad for further investigation and removed from the Internet: . 21 messages were forwarded to the Police Department; . 13 messages were forwarded to the Office of the Inspector of Journalist Ethics; . 33 messages concerning possible sexual abuse of children were forwarded to the hotlines of other countries, the members of international hotline association INHOPE; . 47 messages were forwarded to Internet service providers in Lithuania and abroad informing them about illegal and harmful internet content present in their networks and encouraging them to remove it; . no action was taken with regard to the remaining 493 messages, since the information was either legal or placed in other countries' servers, where such content is not considered illegal according to the laws of the country (for instance, pornography in most of the countries is legal). One can report to the hotline by filling in a special form available on the website of the Safer Internet project at http://www.draugiskasinternetas.lt/lt/main/report. In order to provide the Internet users with the possibility to exercise their rights more actively and fight the harmful online content more efficiently, RRT paid attention to awareness raising about the hotline and the provided possibilities. On the occasion of the SID 2012 the hotline was widely publicized on radio and television, in press releases and e-mail messages. Up to 30 June 2012 while performing helpline coordinators’ functions, RRT participated in a regional meeting of helpline representatives in Stockholm, Insafe training in Cyprus, organized trainings for helpline consultants and teachers. Concluding the Safer Internet LT SIC Project, the hotline and helpline were given publicity in the portal DELFI, RRT completed the public opinion survey in order to evaluate the influence that the Project had on public awareness, also, RRT held a meeting with Facebook representative on children safety in social networks. The European Commission and independent experts were presented with annual finalized Project reports. The Project was evaluated as advanced and successfully completed. In October, 2012 RRT joined the European Commission and ITC agreement concerning the implementation of a new Safer Internet 28-month project “SIC LT II”. ITC is a coordinator of this Project and RRT is responsible for operation of the internet hotline. New cooperation agreements were signed with Police Department and the Office of the Inspector of Journalist Ethics concerning the implementation of hotline functions. Consortium agreement was signed between ITC, RRT, association Langas į ateitį and Child line Vaikų Linija concerning the implementation of the Project, a detailed action plan for the Project was formulated. RRT | 52
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In 2012 a public opinion survey was completed in order to evaluate the influence that the Safer Internet project had on public awareness of Lithuania‘s residents. The target group – internet users that have children aged 5 to 18. 805 respondents were surveyed. The Safer Internet project (website www.draugiskasinternetas.lt) was positively rated by 55 per cent of the respondents: 17 per cent rated it very good, 38 per cent – good. 3 per cent of respondents rated negatively. Other 8 per cent rated this Project as average. 34 per cent of respondents did not give any evaluation, because they had not heard about such a project (see Figure 26).
Satisfactory Bad 0.4% 2.6%
Good 38% Heard nothing about it 34%
An average 8% Very Good 17%
Figue 26. Evaluation of the Project “Safer Internet” (website www.draugiskasinternetas.lt), per cent. Source: RRT
50 per cent of respondents have heard about the hotline (website www.draugiskasinternetas.lt), where there is a possibility to report about illegal and harmful content on the internet anonymously, however, 37 per cent have not encountered such content, 10 per cent have not reported about harmful content on the internet and only 3 per cent have admitted that they have reported about illegal and harmful content. Though half of the respondents (50 per cent) admitted that they had not heard about the hotline (see Figure 27).
No, I have not heard about that 50%
Yes, I have reported about illegal or harmful content 3% Yes, I have heard about that, Yes, but I did not but have not report collide with such 10% content 37%
27 pav. Replies to the question “Have you heard about the hotline?” (website www.draugiskasinternetas.lt), per cent Source: RRT
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76 per cent of respondents answered that they would inform the hotline about illegal, harmful content anonymously, 9 per cent – would not inform. Other 15 per cent of respondents did not have an opinion concerning this question (see Figure 28).
No 9% N/O 15%
Yes 76%
Figure 28. Replies to the question “Would you inform hotline about illegal, harmful content anonymously if encountered?”, per cent Source: RRT
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Protection of consumer rights and legitimate interests in the postal sector
Supervision of universal services
On the 8th of November, 2012 the Postal Law was adopted in order to fully shape the internal EU market of postal services, implement postal strategy and EU politics in appropriate directions, also, to implement Directive 2008/6/EC. This law liberalises the postal market completely since 1 January, 2013. Complete opening of the postal market is a way to create the internal market of postal services in Lithuania and other EU members, which would warrant all the users a universal level of postal services9 and would set common principles of postal service regulation on EU scale. The Postal law abolishes the reserved postal service, specifies the definitions and the functions of the postal regulatory institutions, sets the terms of accessing the postal network. In order to ensure uninterrupted provision of universal postal services, the postal service provider is obligated to provide universal postal services for a 7-year period. In order to ensure that the obligatory period would be sufficient for the postal service provider to recover its investments the Government of the Republic of Lithuania can extend the obligatory period up to 2 years. The universal postal service provider must ensure that the universal postal services are provided in an uninterrupted manner on the entire territory of the country, on the same conditions to all universal postal service users, not less than five days per week, also, to ensure that items of correspondence would be collected and delivered at least one time per work day to the place of residence or business of the postal service receiver. Government, obliging the postal service provider to provide universal postal services on the entire territory of Lithuania, has to ensure that postal service provider would fulfil its obligations uninterruptedly. Therefore the person that could be obliged to provide universal postal services has to be included in the list of postal service providers and have a postal network corresponding to the requirements set in characteristics for the postal network of the universal postal service provider. According to the Postal Law, Lietuvos paštas, AB is obligated to provide the universal postal service until 31 December, 2019 and is responsible for a quality universal postal service according to the Postal Law. The Postal Law alters the scope of the universal postal service. Postal services would not be considered universal postal services when the universal postal service provider sends items of correspondence in volumes and has an agreement with the sender regarding the place of collection of the items, periods of delivery and other conditions (volume would be considered, when one sender presents the postal service provider 1000 or more items of correspondence, or 250 or more postal parcels in a month). The universal postal service does not include the service that has added value, this is: delivery and collection of postal parcels at the time and/or place preferred by the user, confirmation of delivery of a postal parcel, change of course of delivery, an ability to access the information about the location of the postal parcel
9 It is set down in the Article 14 of the Postal Law that universal postal service include: collection, sorting, transport and delivery of the postal items weighing up to 2 kg; collection, sorting, transport and delivery of the postal parcels up to 10 kg; collection, sorting, transport and delivery of the registered and insured postal items or parcels (the universal postal service indicated includes domestic and international postal service); delivery of parcels weighing up to 20 kg, received from other Member States.
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at any time and other. The universal postal service does not include delivery of periodicals to the subscribers residing in rural areas, however, the universal postal service provider obliged by the Governmet to provide universal postal services shall deliver periodicals to the subscribers residing in rural areas. In order to protect the consumer rights and encourage effective competition, the postal service provider is obliged to negotiate access to the postal network. The service provider that operates the postal network is obliged to negotiate, when the other postal service provider requires that, and sign an agreement for the use of the postal network, including the system of postal codes, address data base, postal office boxes, and information on change of address, redirection service and return to sender service. The service provider operating the postal network is obligated to warrant such an agreement concerning the usage of postal network would be composed in such a manner that ensures non-discriminatory, proportional and transparent conditions. RRT has a competence to approve the rules of calculating losses of universal postal service. If the provision of the universal postal service constitutes an unreasonable financial burden for the universal postal service provider, the losses incurred while providing the services shall be compensated from the national budget according to the procedure set by the Government. The Government of the Republic of Lithuania approves the criteria of unreasonable financial burden. According to the amendments of the Postal Law, RRT prepared implementing legal acts that regulate the provision of universal postal services, cost accounting for universal postal service providers, presented comments and suggestions to the Ministry of Transport and Communications of the Republic of Lithuania regarding the legal acts regulating the quality requirements for universal postal services and determining characteristics of universal postal service network. It is anticipated that the opening of postal market will attract new postal market participants, strengthen the competition and it would encourage the universal postal service provider to maintain its position on the market and continue to provide quality universal postal services for all Lithuanian residents.
Provision of information on universal postal services to consumers
Referring to the Postal Law, the universal postal service provider must make the following information publicly available at the points of access to universal postal services and on the website: comprehensive and periodically updated information on the universal postal services and their usage possibilities, prices of universal postal services, the quality requirements (standards) and other publications, also, publish the annual report about the provided universal postal service, including the number of investigated complaints and their outcomes on its website. RRT developed and presented to the Ministry of Transport and Communications of the Republic of Lithuania the draft of Rules For Provision of the Universal Postal Service, where it is set that the universal postal service provider must, at the points of public access to universal postal services, with the exception of the letter boxes intended for public use, display the following: the Postal Law of the Republic of Lithuania, the Rules for Provision of the Universal Postal Service, examples of filling in the documents (blank forms, etc.) related to postal items and entering the address on a postal item, the list of postal codes. The Rules describe the procedure of addressing the postal items, rights and obligations of the universal service provider, the sender and the receiver. RRT | 56
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In October, 2012 a public survey on user satisfaction with postal and courier services was completed in order to learn the opinion of Lithuania‘s residents about the activities of courier and post offices and satisfaction with the services they provide. According to the survey (volume of the survey – 1009 respondents), 96 per cent of city dwellers and 95 per cent of rural area residents give positive evaluation of postal services provided by Lietuvos paštas, AB, 95 per cent of city dwellers and 92 per cent of rural area residents give positive evaluation of the clarity of information on postal services provided by Lietuvos paštas, AB. 91 per cent of city dwellers and 93 per cent of rural areas residents that use postal services provided by Lietuvos paštas, AB give positive evaluation of customer service. (see Fig. 29).
5 - Very satisfied 4 3 2 1 - Very unsatisfied Quality Total 37 44 14 4 1 Cities 35 46 15 4 1 Rural areas 42 40 13 3 1 Price In total 26 38 24 9 3 Cities 25 40 24 9 3 Rural areas 29 34 25 10 3
Clarity of the Total 35 39 20 5 1 information Cities 34 40 21 4 1 regarding the Rural areas 37 38 17 7 1 provided services Total 38 39 15 5 3 Customer Cities 36 39 16 7 2 servicing Rural areas 41 39 13 3 4 Figure 29 . Satisfaction with the Lietuvos paštas, AB services, per cent. Source: RRT
The section “Post - For Consumers” on RRT website www.rrt.lt contains information about the rights and obligations of the consumers, rights of the senders and receivers of postal parcels, the obligations of the provider of universal postal services, requirements for providing universal postal services and other information. The website contains references to legal acts regulating conditions for location of points of access to universal postal services, quality and tariffs of universal postal service. The sender of postal parcels can find all the necessary information about the customs‘ procedures and FAQ. The website also contains the information about the procedures for investigation of complaints and the results of the inspection of service quality. Postal service users receive the answers in writing, by e-mail and telephone regarding the issues of concern, also, they are consulted regarding the postal services if complaints arise. In 2012 RRT organized a meeting – discussion “Changes in the Postal Market“. The meeting addressed the amendments of the Postal Law and implementing legal acts, also, practical aspects of postal market regulation. The postal market patricipants were informed about the grounds of the complaints, the dynamics of their volume.
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Establishment of service points for provision of universal postal services
Obligatory characteristics10 of public postal network are determined to providers of universal postal services, the latter characteristics determine the conditions for distribution of service points of universal postal services and requirements for installation of such points. Referring to the aforementioned characteristics, the universal postal service provider is obliged to install a sufficient number of service points. The purpose of these public postal network characteristics is to ensure convenience to use postal services to each resident of Lithuania. The following service points for provision of universal postal services are distinguished: . stationary service points for provision of universal postal services; . mobile service points for provision of universal postal services; . service points of postal agencies; . post boxes for public use. The following is determined in the characteristics: – the distance in urban housing areas from place of residents of service user and stationary, mobile service points of universal postal services or service points of postal agencies shall be not greater than 3 kilometres (by the most direct way), and the distance to post boxes for public use – not greater than 2 kilometres by the most direct way; – there has to be at least one place, where universal postal service would be rendered or there has to be a workplace for the agents of universal service provider in rural residential areas on the territory of one subdistrict; – a mobile universal postal service establishment can be established in rural residential areas remote from the sub-district centres, additionally; – rural residential areas that have more than 200 receipt mail boxes (addresses) should be equipped with one postal box for public use. According to the data of 31 December, 2012, Lietuvos Paštas AB provided its services at 836 (853 at the end of 2011) points of access to universal postal services: 689 stationary points of access to universal postal services (202 in cities and towns, 487 in rural areas), 14 post offices (12 in cities and towns, 2 in rural areas) and 27 mobile post offices, serving 133 points of access to universal postal services in rural areas. During 2012, 17 points of access to universal postal services were closed: 2 points were closed in cities and towns and 15 points – rural areas: in Kaunas (9), in Šiauliai (3), and Panevėžys (5) regions. During 2012, 3 points of access to postal services were reformed in Vilnius region, 2 post offices were translocated to the shopping centres (in Vilnius and in Kaunas). For the purpose of optimization of the results of activities, the provider of universal postal services, during the time period of 2008-2012, reduced the number of stationary points of access to postal services,
10 These characteristics are determined by the Order No. 3-504 of the Minister for Transport and Communications of the Republic of Lithuania of 20 October, 2004 „On the Approval of the Characteristics of the Public Postal Network of the Provider of the Universal Postal Services“ (Official Gazette Valstybės Žinios, 2004, No. 159-5813)
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which operated with a loss. However at the same time new mobile points of access to postal services were launched, i. e. modern vehicles, specially equipped for conveyance of items of correspondence and postal parcels and provision of other services, which come to the residential areas at the set time. In 2012, 27 mobile post offices provided universal postal services in 133 rural residential areas (see Figure 30).
1000 862 736 737 800 715 703
600
400
134 135 138 133 200 80
0 2008 2009 2010 2011 2012
Number of stationary points of access to universal postal services Number of mobile points of access to universal postal services
Figure 30. Alteration of the number of stationary points of access to universal postal services provided by Lietuvos paštas, AB in 2008-2012, units. Source: RRT
Lietuvos paštas, AB computerized 253 post offices during 2012. At present there are 622 computerized points of access to universal postal services, which amounts to 85 per cent of the entire network. 99 per cent of points of access to universal postal services in cities and towns are computerized. In 2012 Lietuvos Paštas AB continued the project of sending and delivery of postal items by using the self-service terminals Siuntos24, which was renamed LP EXPRESS 24. According to the data of public survey representing the opinion of Lithuania‘s residents about the activities of courier and post offices and satisfaction with the services they provide, completed in October, 2012 (ordered by RRT), majority of respondents (91 per cent of city dwellers and 76 per cent of rural residents) give positive evaluation of the distance to the nearest Lietuvos paštas, AB post office. 44 per cent of rural residents think that the distance to the mobile post office stands is very near, near or appropriate. 45 per cent of city dwellers think that the distance to self-service terminals is very near, near or appropriate. 90 per cent of city dwellers and 74 per cent of rural residents evaluated the distance to public postal boxes as very near, near or appropriate (see Fig. 31 and 32).
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Very near Near Appropriate distance Far Very far N / N
Total 7 30 49 14 1
Post offices Cities 9 30 52 9 1 Rural areas 3 30 43 24 1
Mobile post office stands Total 3 6 16 11 2 62 Cities 1 3 11 6 1 78 Rural areas 7 12 25 19 5 32
11 Self-service Total 2 23 13 4 48 terminals Cities 3 16 26 8 2 44 Rural areas 2 15 21 8 54
Figure 31. Evaluation of the distance to the nearest place of access to postal service, per cent. Source: RRT
Very near Near Appropriate distance Far Very far I do not know where it is
Total 15 34 36 14 12
0,3 City dwellers 18 39 33 9 2
Rural dwellers 9 24 41 23 12
Figure 32. Evaluation of the distance to the nearest public postal boxes, per cent. Source: RRT
Quality control of universal postal services
In 2012 RRT continued an independent examination of the quality of the universal postal services provided by Lietuvos Paštas AB with the aim of establishing whether the universal postal services comply with the requirements for quality of universal postal services, established with regard to the sent items of correspondence. According to the requirements to quality of universal postal services, established by the Ministry of Transport and Communications, 85 per cent of priority items of correspondence must be delivered on the business day following the dispatch (D+1) and 97 per cent of priority items of correspondence must be delivered on the third business day following the dispatch (D+3) (see Table 4). In the 2nd quarter of 2012 Lietuvos Paštas AB delivered 76.88 per cent of priority items of correspondence on the business day following the dispatch and 98.94 per cent – on the third business day following the dispatch, in the 4th quarter – 77.44 per cent and 98.89 per cent correspondingly. RRT | 60
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In 2012, 3600 test letters on the territory of the Republic of Lithuania were sent. The annual results of the test showed that 77.16 per cent of letters were delivered on the business day following the dispatch and 98.92 per cent of all the sent letters were delivered on the third business day following the dispatch (D+3). RRT publishes the results of the independent examination of the quality of postal services once per year.
Table 4. The universal postal services quality examination results in 2005-2012 Delivery Established quality Quality examination results quality indicators standards*** (the time period 2007 2008 2009 2010 2011 2012 D*+n**)
On the same day 0.81 % 0.59 % 1.04 % 1.48 % 0.91 % 0.29 % (D+0) 1st day following 75.56 % 74.30 % 77.16 % 75.57 % 85 per cent the dispatch (D+1) 57.85 % 74.61 % 2nd day following 95.01 % 95.52 % 96.64 % 96.10 % the dispatch ( (D+2) 86.60 % 96.14 % 3rd day following 98.92 % 98.92 % 98.92 % 99.18 % 97 per cent the dispatch (D+3) 95.66 % 99.08 % 4th day following the 99.63 % 99.49 % 99.94 % 99.53 % dispatch (D+4) 98.17 % 99.50 % 5th day following the 99.72 % 99.69 % 99.94 % 99.82 % dispatch (D+5) 99.22 % 99.58 % 6th day following the 99.83 % 99.94 % 99.88 % dispatch (D+6) 99.63 % 99.78 % 99.64 % 7th day following the 99.91 % 99.94 % 99.88 % dispatch (D+7) 99.79 % 99.91 % 99.70 % 8th day following the 99.91 % 99.94 % 99.91 % dispatch ( (D+8) 99.91 % 99.94 % 99.82 % 9th day following the 99.91 % 100.0 % 99.91 % dispatch (D+9) 99.94 % 100.0 % 100.0 % 10th day following 100.0 % 100.0 % 100.0 % the dispatch (D+10) 100.0 % 100.0 % 100.0 % * D is the day of sending the item ** n is the number of business days from the moment of sending of the item till the delivery of the item to the addressee
Lietuvos Paštas AB, the provider of universal postal services, is obliged to implement Standard LST EN 13850 Postal Service. Quality of Service. Determination of Total Duration of Dispatch of Priority Items”. In 2012, Europos tyrimai, UAB performed internal inspection of duration of dispatch of priority items and determined that 85.9 per cent of items were delivered on the business day following the dispatch (D+1) and on the third business day following the dispatch (D+3) - 99.7 per cent of items.
Investigation of user complaints
In 2012, RRT received 51 complaints consumers of postal and courier services, 24 of them with regard to the provision of universal postal services and 27 complaints with regard to the provision of other postal and RRT | 61
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courier services. The number of complaints of postal service users investigated by RRT was 56, 26 of them with regard to universal postal services and 30 with regard to postal and courier services (see Figure 33 and Table 5). The majority of users of postal and courier services applied to RRT regarding disappearance, damaging or inappropriate delivery of postal items.
30 2012 26
28 2011 48 Complaints regarding other 2010 17 postal and courier 31 services 24 2009 24 Complaints 31 regarding universal 2008 38 postal services
23 2007 14
0 20 40 60
Figure 33. The dynamics of complaints of users of postal and courier services inspected by RRT in 2007–2012, units Source: RRT
Table 5. Complaints of users of postal and courier services and the decisions of RRT in 2007–2012 Complaints and decisions 2007 2008 2009 2010 2011 2012
Complaints with regard to postal and courier services: 23 31 24 17 28 30
Decisions in favour of service users or a 10 6 1 3 6 6 good-will way for resolution of the dispute Rejected according to the procedure, prescribed by legal acts, presenting the 9 20 23 13 19 22 explanations for rejection Unsubstantiated 4 5 0 1 3 2 Complaints with regard to provision of 14 38 24 31 48 26 universal postal services: Decisions in favour of service users or a 1 6 2 4 4 2 good-will way for resolution of the dispute Rejected according to the procedure, prescribed by legal acts, presenting the 13 32 20 23 36 7 explanations for rejection Unsubstantiated 0 0 2 4 8 17 Source: RRT
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Lietuvos Paštas AB, the provider of universal postal services, is obliged to implement Standard LST EN 14012 “Postal Service. Quality of Service. Complaints and Procedures of Compensation of Damages”11. In 2012, Lietuvos Paštas AB investigated complaints according to standard LST EN 14012. Lietuvos Paštas, AB in total received and investigated 3303 complaints i.e., 1913 complaints less compared to 2011, including 2659 complaints with regard to universal postal service provision: 1043 with regard to domestic postal items and 1616 - regarding international postal items. Compared to 2011, the number of complaints regarding provision of universal postal services decreased 1.7 times. In 2012 Lietuvos Paštas, AB was provided by 928 substantiated complaints, i.e. 378 complaints less than in 2011, including 654 with regards to universal postal service (in 294 cases the consumers were paid compensations). Most frequently the users of universal postal services complained about lost or delayed postal items: 1425 received complaints, including 1313 – with regard to universal postal service. The users of universal postal services complained also with regards to damaged items (249 complaints), clearance or delivery of postal items (463 complaints), behaviour and competence of postal employees (47 complaints), erroneous delivery (82 complaints). 99.8 per cent of complaints were inspected during the standard period - the average time period for provision of the final answer to the consumer is 14.7 days, which is almost 2.4 days quicker than in 2011.
Protection of consumer rights and legitimate interests in the equipment sector
The activities of RRT in ensuring free movement and provision of equipment to the EU market
According to Directive 2004/108/EC regulating the requirements to electromagnetic compatibility in the European Economic Area, electric and electronic equipment placed on the market should comply with the essential requirements to electromagnetic compatibility. It means that equipment should be designed and manufactured in a manner that: a) their electromagnetic interference should not exceed the determined level; b) their level of resistance to electromagnetic disturbance should be sufficient so that they could operate in their intended use without unacceptable degradation. Compliance of devices with the essential requirements is proved by electromagnetic compatibility tests, during which compliance of the tested device with standards is determined. Manufacturers and importers may check if equipement complies with the essential requirements to electromagnetic compatibility prior putting them on the market. In 2012 in the accredited Equipment and Devices EMC Control Division of RRT, 1187 electromagnetic compatibility tests were performed. Compared to the data of 2011, their number increased 1.5 times. 577 tests of electromagnetic disturbance radiation were performed (the disturbance, propagated over wires to the power supply network, the disturbance, radiated by the equipment case, collateral radiation, etc) and 610 disturbance resistance tests (electrostatic discharge resistance, radio frequency field resistance, resistance to impulse
10 Referring to Order No. 3-495 of the Minister of Transport and Communications of the Republic of Lithuania of 12 October, 2004 “On the Approval of the Description of the Requirements for Quality of Universal Postal Services (Official Gazette Lietuvos Žinios., 2004, No. 157-5742)
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disturbance in the power supply network, magnetic fields resistance, voltage interruptions and drops resistance, etc.) (see Figure 34).
Radiation tests Resistance tests
2012 577 610
2011 391 421
2010 368 308 2009 339 286
2008 542 463
Figure 34. The number of tests of electromagnetic compatibility of electric and electronic devices performed by RRT in 2008–2012 Source: RRT
In 2012, the accredited Equipment and Devices EMC Control Division of RRT performing evaluation of electromagnetic compatibility of electric and electronic devices in the market expanded its scope of accreditation which now includes 173 standards. It is the largest accreditation scope among all accreditation institutions evaluating compatibility in the country (accredited testing laboratories or product certification companies). The scope includes: 55 disturbance radiations, 63 standard of resistance to disturbances, 51 standard, regulating efficient usage of radio spectrum, and 4 standard documents, regulating electromagnetic compatibility of vehicles. Accreditation scope includes the latest European, Lithuanian and international standards regulating requirements and test methods. Such wide accreditation scope is necessary for RRT to be able to completely control electric and electronic devices placed on the market and to inspect if they comply with the essential requirements to electromagnetic compatibility, also to be able to protect both electronic communication networks and users from products of poor quality. The surveillance is performed when participating in common market surveillance campaigns of EU states and when performing control tests of electric and electronic products in the market. Close cooperation is maintained with manufacturers of electric and electronic devices and other compatibility evaluation institutions. In 2012 experts of the National Accreditation Bureau performed audits of this division of RRT in order to evaluate compatibility with LST EN ISO/IEC 17025 standard and evaluated activities of this division in the accredited sphere as very good. No incompliances or defects were determined in the activities of the division. After the State Road Transport Inspectorate granted the right to RRT to perform electromagnetic compatibility tests on vehicles and their parts and after RRT was notified on the European Commission website as a technical institution having the right to perform tests on vehicles under Directive 72/245/EEC12, relating to
12 Council Directive 72/245/EEC relating to the radio interference (electromagnetic compatibility) of vehicles of 20 April, 1972 (OL L 152, 6.7.1972, p.15)
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the radio interference (electromagnetic compatibility) of vehicles, 8 electromagnetic compatibility tests on vehicles were performed. According to the concluded long-term cooperation agreements with electrotechnical products certification center Sertika, compatibility evaluation of medical devices was performed, together with Vilniaus metrologijos centras – evaluation of equipment for measuring power, with EGSC – evaluation of compatibility of electrotechnical equipment. In total in 2012, 220 (196 types) electromagnetic compatibility tests of devices were performed. In order to raise awareness of the importance of electromagnetic compatibility, its requirements to the market participants, in 2012 presentation were delivered on relevant issues of electromagnetic compatibility in international seminars in Vilnius and Kaunas. Electric and electronic device providers, manufacturers, importers and distributors in the market of Lithuania, economic operators acting in the chain of provision and distribution are constantly consulted on the issues of electromagnetic compatibility, preparation of declarations of conformity, placing of equipment on the market and CE marking issues.
Elimination of radio interference
Elimination of radio interference is a very important factor ensuring electromagnetic compatibility of various types of equipment emitting and receiving radio waves. The probability of interoperation of such equipment is increasing with the growth of their concentration and may manifest itself in the form of radio interference. There is no doubt that the presence or absence of radio interference between different radiocommunication equipment determines both the quality of the services, provided to consumers, and such important factors as reliability of communication and the related potential economic losses, personal safety and even, in certain cases, life. Therefore, as in the previous years, in 2012 RRT dedicated exceptional attention to identification of reasons of radio interference and initiation of their elimination. During 2012, 254 notifications of radio interference were received from natural and legal persons, 251 notifications were investigated regarding radio interferences i.e., 98.4 per cent of all the received notifications. In 36 cases radio interference was successfully investigated and the reasons were eliminated. In the remaining cases the radio interference disappeared prior to finding its source (24 per cent) or complaints were unsubstantiated (40 per cent). Distribution of the results of radio interference analysis in 2012 is shown in Figure 35.
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IV quarter
Successful researches III quarter
Radio interferences II quarter disappeared prior finding its source
Research of I quarter unsubstantiated complaints
0% 50% 100%
Figure 35. The change of number of notifications investigated in order to eliminate radio interference in 2012, per cent. Source: RRT
The growth of unsubstantiated complaints in quarter 4 of 2012 determined the total annual result (see Figure 36). This was due to switching-off of terrestrial analogue television transmitters. It emerged that a significant part of digital terrestrial television viewers could not properly set their TV’s or digital terrestrial television programme receiving equipment. During this period the number of real interference for receiving of terrestrial digital television was less than expected. About 10 per cent of all unsubstantiated complaints received by RRT were usually repeated complaints of the same persons.
251 244 238
227
2009 2010 2011 2012
Figure 36. The change of number of notifications investigated in order to eliminate radio interference in 2009-2012, units. Source: RRT
The distribution of the received requests is shown in Figure 37: the largest share was complaints regarding interference for ICT services such as terrestrial radio and television reception, public mobile communication services, etc. Operators complained regarding mobile communication problems (interferences for base stations). A smaller share was constituted by requests to eliminate interference for internal radio communication networks and short-range devices.
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13.8% 13.4%
ICT services 2.4%
Internal radio communication networks Short-range remote devices
Other
70.5%
Figure 37. Spectrum of the received notifications in 2012, per cent. Source: RRT
The reasons of the radio interference identified in 2012 varied a lot (see Figure 38). As in 2011, a significant part of them (19.3 per cent) – interference due to active antennas (intended for receipt of television programme) with integrated improper or faulty amplifiers of high frequency range; the aforementioned raised many problems to the owners and their neighbours. There were also cases when forgotten or faulty public mobile communications rebroadcasters or other equipment of the same applicants caused problems to base stations of public mobile communication.
14.5% 8.4% Public mobile communication equipment 8.4% Active TV antennas
Short-range remote devices 19.3% 8.4% Internal radio communication networks Illegal frequency users 6.0% RTV broadcasting stations
IT equipment and computers
21.7% 13.3% Other
Figure 38. Sources of successfully determined radio interference in 2012, per cent Source: RRT
The duration of investigation into radio interference according to the notifications received, depending on their complexity was from one day to several weeks. In all the cases, the investigation was performed by using mobile radio spectrum monitoring stations. As a rule, 2 highly qualified experts participated in each investigation. Request regarding investigation of radio interference may be provided by any legal or natural entity. In RRT website www.rrt.lt detailed information regarding the possibilities of filing a request is published and constantly updated.
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Supervision of electronic communications infrastructure
In 2012 RRT, when implementing the functions, ascribed to it by the legal acts of the Government of the Republic of Lithuania, continued the activities on state supervision and control of installation and use of electronic communications infrastructure. In 2012 RRT performed 7 investigations of consumer complaints regarding allegedly incorrect installation of electronic communication infrastructure, replied to 14 notifications regarding installation of electronic communication infrastructure and to 8 electronic requests regarding installation of electronic communication infrastructure. The majority of complaints (alleged violations) were regarding electronic communications cables located in residential lots, cable elevation and/or transferring procedure and payment, also regarding installation of electronic communication equipment and lines into in the premises of shared use of an apartment building, determination of payment for infrastructure usage.
Encouragement of usage of electronic signatures and infrastructure development
When promoting the development of electronic signature infrastructure and the usage of electronic signature, RRT raises public competence and consults persons regarding the issues of electronic signature usage; RRT also tries to increase confidence of electronic signature users in certification service providers. One of RRT functions is to perform surveillance of electronic signature following Resolution No. 32 of the Government of the Republic of Lithuania of 17 January, 2011 On the Electronic Signatures Supervisory Authority (Official Gazette Valstybės Žinios, 2011, No. 8-316). In order to implement these functions appropriately, RRT has to promote the development of electronic signature infrastructure while ensuring education of users of electronic signature and improving their competences. In 2012 the remote training system for the use of electronic signatures and electronic documents (hereinafter referred to as the training system) was renewed. Hereby, users are able to use the training system remotely, to receive all relevant information regarding the electronic signature, to check knowledge by tests and to receive an electronic certificate attesting to a successful completion of tests. The training system is available on the website www.elektroninisparasas.lt. RRT 97 times provided methodological guidance (by e-mail, telephone and during meetings) to persons not providing certification services on the issues of electronic signature. RRT employees provided answers to various questions on electronic signature usage and application of legal acts: regarding signing on sensitive screen tablets, formats of electronic signature, means necessary to sign with electronic signature, reasons for termination of certificate validity, time labelling usage, a possibility to foreigners to obtain means for electronic signature in Lithuania etc. In 2012 RRT representatives participated in various working groups and meetings regarding possibilities of electronic signature application and legal regulation: – cooperated with the Office of the Chief Archivist of Lithuania regarding legalisation of electronic documents specifications, requirements for electronic document specifications and the need of electronic document specification in PDF format;
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– participated in the meeting arranged by the Ministry of Justice of the Republic of Lithuania regarding application of electronic signature in the judicial system; – RRT representatives participated in the meeting organised by the Ministry of Internal Affairs of the Republic of Lithuania regarding creating legal possibilities to open a bank account remotely, etc.
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PROMOTION OF COMPETITION IN ELECTRONIC COMMUNICATIONS AND POSTAL SECTORS
Competition in electronic communications sector
In 2012, as in 2011, the sector of electronic signature decreased in terms of revenues from the sector. In 2012 compared to 2011, investments also decreased. However, decrease in investments should not be related with decrease in revenues. Operators invested mostly in development of new generation access networks, 3G, 3.5G and 4G mobile networks, WiMAX broadband communication networks and in infrastructure of public mobile networks (for provision of data transmission services). Penetration of the Internet access and television services retains a trend of fast growth: number of mobile telephone subscribers increased by 1.2 per cent, penetration of fixed telephone increased and exceeded 22 per cent. The largest variety of technologies competes in markets of broadband communication and audio- visual services. The main Internet access services provision technology for the past few years remain FTTx lines (38.2 of all connections). The second most popular way of connecting to the Internet in 2012 was mobile communication (26.7 per cent). Number of wireless Internet access subscribers retained a steady growth rate. In 2012, 12.2 per cent of subscribers connected to the Internet over wireless communications. The subscribers’ choice to receive Internet access services over these means of communication was governed by both the functionality of such services and the increasing penetration of the Internet services into more remote areas, where it is not economically viable to provide Internet access services over fixed communication lines. Recovery of audio-visual services should be related with switched-off analogue terrestrial television in 2012. A part of subscribers, who previously viewed television programmes free of charge, exchanged the services into paid television programmes of digital terrestrial television transmitted by IP or satellite.
Market tendencies and participants
At the end of 2012 about 150 operators and service providers were engaged in the provision of electronic communications services (public fixed telecommunications network and services, mobile telecommunications network and services, leased line services, Internet access and other data transmission services, dark fibre access services, television (cable TV, MMDS, IPTV, terrestrial DVB-TV, satellite TV) services, broadcasting transmission services, wire radio activities) (see figure 39).
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Provision of broadcasting transmission services 2 2 2 2 2 Satellite television 1 1 1 1 1 Digital terrestrial television (DVB-T) 2 2 2 2 2 Provision of dark fibre access services 8 9 11 13 16 Provision of data transmission services, with the exception of the Internet 15 14 15 15 20 Provision of IPTV services 3 5 8 7 8 Provision of cable TV and MMTV services 52 48 49 44 41 Provision of the Internet services 113 108 108 103 100 Provision of leased lines services 13 13 12 11 11 Provision of public mobile telecommunications services 13 11 13 14 15 Provision of public fixed telecommunications network and/or services 46 48 51 52 49
2008 2009 2010 2011 2012
Figure 39. The dynamics of the number of undertakings engaged in different electronic communications activities in 2009–2012 Source: RRT
In 2012, 6 undertakings submitted their notifications on the intent to engage in the provision of public fixed telecommunication network and/or services (the number of undertakings, actually engaged in the activities, reduced from 52 (in 2011) down to 49. 2 undertakings submitted notifications of their intent to engage in public mobile telecommunication network and/or service provision (the number of undertakings executing the activities grew from 14 (in 2011) up to15) . According to the Specification of General Terms and Conditions for Engaging in Electronic Communications Activities, an undertaking shall be deleted from the list of providers of electronic communications services and/or networks, in case the undertaking, upon providing its notification on the commencement of activities, fails to commence the electronic communications activities, specified in the notification, for the time period longer than one year. Referring to the said provision, 11 undertakings were deleted from the list in 2012: 8 undertakings were deleted from the list of undertakings engaged in the provision of public fixed telecommunications networks used for provision of public fixed telephone communication services and/or public fixed telephone communication services, 2 undertakings were deleted from the list of undertakings engaged in the provision of public mobile telecommunication services, 1 undertaking was deleted from the list of undertakings engaged in the provision of leased line services. 3 undertakings were deleted from the list of providers of electronic communications networks and services at their own request: all of them engaged in the provision of public fixed telecommunication networks used for provision public fixed telephone communication services and/or public fixed telephone communication services. The largest participants of electronic communications sector are the following: Bitė Lietuva UAB, Omnitel UAB, TEO LT, AB, and Tele2 UAB, however, added value in sectors such as the Internet access provision, is created by many small market participants.
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Market analysis
In order to ensure efficient competition in electronic communication sector, and to prevent the undertakings having significant market power to abuse their power, RRT performs electronic communication market analysis. During the analysis the main aim is to evaluate if competition in the determined markets is efficient and to determine undertakings having significant power in relevant markets. If competition is not efficient, certain obligations for undertakings having significant power in relevant markets are determined. The aforementioned obligations may be subsequently (if situation changes after market analysis) changed or withdrawn if competition becomes efficient. In 2012 RRT identified 12 undertakings having significant power in relevant markets (see Annex 1 of the Report). TEO LT, AB, was identified as an undertaking having significant power in 16 markets, Telecentras – in 7 markets, Bitė Lietuva UAB, Omnitel UAB, Tele2 UAB, Lietuvos geležinkeliai AB, Cubio UAB (from 26-06-2012 the name of the company changed to Digitela UAB), CSC Telecom UAB, Linkotelus UAB, Mediafon UAB, Nacionalinis telekomunikacijų tinklas UAB, Telekomunikaciju grupa – in one market. The following obligations were imposed on TEO LT AB: - Cost accounting, accounting separation and price control obligations when providing retail services in the market of access (provided to consumers) to public telephone communications networks and in the market of access (provided to service users except consumers) to public telephone communication in fixed location and in the market, when providing retail services. In the aforementioned markets TEO LT, AB is obliged to provide its subscribers the possibility to choose public telephone communication provider and is also obliged to provide wholesale local line. - TEO LT AB, while providing wholesale local line service, has to follow transparency, non- discrimination, cost accounting, accounting separation and price control obligations. - TEO LT AB, while providing public local and/or national telephone communication services for consumers and service users, except consumers in fixed location, has to follow cost accounting, accounting
separation and price control obligations and an obligation of non-application of discriminative pricing. - TEO LT AB, while providing public international telephone communications services for consumers and service users, except consumers in fixed locations, has to follow cost accounting, accounting separation and price control obligations. - TEO LT AB, while providing retail leased lines services, has to follow transparency, non- discrimination, cost accounting, accounting separation and price control obligations. - While providing wholesale services of call origination, national and international call transit, wholesale call termination, broadband communication access and physical network infrastructure at a fixed location, leased lines terminating segments and national leased lines trunk segments, the following obligations are imposed on TEO LT AB: an obligation to provide access, non-discrimination and transparency obligation, price control obligation, cost accounting and accounting separation obligation. In the beginning of 2012 RRT initiated analysis of the following markets: 1. Public local and/or national telecommunication provided to consumers at a fixed location;
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2. Public local and/or national telecommunication provided to service users except consumers at a fixed location; 3. Public international telecommunication services provided to consumers at a fixed location; 4. Public international telecommunication services provided to service users except consumers at a fixed location. 5. The objective of the analysis of these markets is to evaluate if problems restricting competition still exist when providing local and/or national telecommunications at a fixed location and international telecommunication at fixed location services. In 2006 and 2008, after execution of researches of the aforementioned markets, TEO LT, AB, as an undertaking having significant power in the aforementioned markets, was obliged to follow cost accounting, accounting separation and price control obligations and an obligation of non-application of discriminative pricing. In the end of 2012 RRT initiated analysis of market of broadcasting transmission services dedicated to deliver broadcast content to end users. The objective of this analysis is to define this market, to analyse if competition in this market is efficient and if it is not efficient, to name undertakings having significant power in this market and if necessary, to determine measures for solving the existing problems. RRT in 2011 initiated and in 2012 finished the analysis of the wholesale broadband communication access market. The results of this analysis are approved by Orders No. 1V–1719 and No. 1V–1718 of the Director of RRT of 21 November, 2012. Wholesale broadband communication access service is a share of the value chain of retail Internet access service, therefore, identification and solution of competition problems in this market should promote competition in retail Internet access services market.
Supervision of execution of the obligations imposed on the undertakings having significant market power
In 2012 RRT, when performing the supervision of implementation of the legal acts, regulating electronic communications activities, devoted much attention to supervision of the implementation of the obligations imposed on the undertakings recognized as having significant power on relevant markets, applied in order to limit the market power of such undertakings. The observance of the imposed obligations help to reduce entrance barriers in certain markets and to increase freedom of business initiatives, to ensure equal competition conditions for undertakings in electronic communications markets and greater competition level in them. This results in lower prices, greater diversity and higher quality of services for consumers of electronic communications, it also ensures the possibility to choose the service supplier corresponding its needs the most. In 2012 RRT performed supervision of obligations of transparency, non-discrimination, price control, cost accounting and accounting separation, provision of access and the obligations, pertaining to the provision of services to end users, imposed on the undertakings having significant power on the relevant markets. The obligations are established referring to the EU legal acts regulating electronic communications activities, according to which, for the purpose of reaching a single EU market, market analyses are performed in all the Member States and the obligations are imposed on the undertakings having significant market power, the results of such analyses are coordinated with the European Commission. RRT | 73
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RRT performs inspections of implementation of obligations imposed on undertakings having significant market power by its own initiative or after reception of request of undertaking or/and consumer to perform inspection of implementation of the obligations imposed; or after reception of complaint or undertaking and/or consumer regarding non-implementation of the obligations imposed. When supervising the ways how the undertakings having significant power on the relevant market follow the requirement to provide the agreements on provision of access (network interconnection, transit, unbundled access, lease of infrastructure, wholesale broadband access provision agreements), as well as wholesale leased lines, broadcasting transmission services and conditional access agreements, concluded with other undertakings, imposed by the transparency obligations, RRT registers the provided agreements and their amendments, analyses the said documents and makes the corresponding decisions with regard to compliance of the provisions of the said agreements with the requirements, established by the legal acts. In 2012, 28 agreements and their amendments (additional agreements) were registered: 11 network interconnection agreements and their amendments; 6 regarding broadcasting services; 6 regarding lease of infrastructure; 2 agreements regarding wholesale leased lines and 3 agreements regarding unbundled access. All the provided agreements, apart from the confidential information, are available on the RRT website at www.rrt.lt in the section “Electronic Communications – For Business – Promotion of Competition – Obligations on Undertakings – Agreements”. RRT also analyses reference offers from undertaking having significant market power regarding wholesale network infrastructure access, local line, broadband communication access services, leased lines, lease of infrastructure, networks interconnection and broadcasting transmission services. In 2012 the reference offers regarding wholesale network infrastructure access, lease of infrastructure, networks interconnection and broadcasting transmission services were revised and published on the website of RRT www.rrt.lt. In the reference offers of broadcasting services of TEO LT, AB, and Telecentras violations were identified as regards the provision of services for a fixed period of time. The said violations were eliminated upon notifying the said undertakings and the reference offers were correspondingly updated. All the delivered reference offers are published in RRT website at www.rrt.lt in the section “Electronic Communications – Promotion of Competition – Obligations on Undertakings – Reference Offers” and on the websites of the corresponding undertakings.
Supervision of wholesale and retail fixed telecommunication services
In 2012 RRT performed supervision of the obligations of transparency, non-discrimination, provision of access and price control obligations. In 2012 the prices of call termination services on corresponding public fixed telecommunication networks and network interconnection services were further reduced. The dynamics of the prices of call termination services is presented in Table 5.
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Table 5. The changes of prices of call termination on public fixed telecommunication networks, set by RRT in 2010– 2012
No. Service Price since Price since Price since 01-01-2010 01-01-2011 01*-01-2012
TEO LT, AB 1. National call termination during peak time, ct per minute 5.42 4.84 4.26 2. National call termination during non-peak time, ct per minute 2.79 1.98 1.16 3. Call setup, ct 2.63 1.66 0.69 4. National call termination, not differentiating according to the time of 5.42 4.35 3.28 provision of the service, ct per minute Nacionalinis Telekomunikacijų Tinklas UAB, CSC Telecom UAB, Telecentras Telekominikaciju grupa UAB, Mediafon UAB, Eurocom SIP UAB, Lietuvos Geležinkeliai AB, Linkotelus UAB, Cubio UAB 1. National call termination during peak time, ct per minute Not bigger than that for TEO LT, AB 2. National call termination during non-peak time, ct per minute 3. Call setup, ct 4. National call termination, not differentiating according to the time of provision of the service, ct per minute Explanations of the table:
the prices were set by Order No. 1V-101 of the Director of RRT of 31 January, 2008 and show the costs, incurred by an operator, efficiently operating on the market, however, they do not show the precise costs, calculated according to the requirements, provided by the Recommendation**.
** Commission Recommendation No. 2009/396/EC of 7 May, 2009 on the Regulatory Treatment of Fixed and Mobile Termination Rates in the EU. Source: RRT
For the purpose of creating the conditions to TEO LT, AB to execute the set obligations and implementing the requirements of European Commission, on 15 February, 2012 RRT started creating (updating) accounting module for the fixed telecommunications operator BU-LRAIC. Following the requirements of European Commission, the highest price limit of call termination from 1 January, 2013 over public telecommunications network at a fixed location of TEO LT, AB was approved by the Order of the Director of RRT No. 1V–1900 of 18 December, 2012. Prices of 2012 shall be valid for TEO LT, AB from 1 January, 2013 until 31 March, 2013; the price for call termination from 1 April, 2013 shall be not higher that 0.0211 LTL per minute (without VAT) at any time, by connecting networks at any network connection point. From 1 January, 2012, the prices for call origination and national origination services, not at peak time, provided over public telecommunication network at a fixed location of TEO LT, AB were reduced. Table 6 shows the comparison of the prices of call origination and transit services, provided by TEO LT, AB in 2012 and the prices to be reached.
Table 6. The prices of call origination and transit services provided by TEO LT, AB in 2011–2013 Since 01-01 The target price, Service Since 01-01-2011 Since 01-01-2012 2013 set by RRT Origination: Call setup, ct (w/o VAT) 1.30 0.78 0.69 0.69 Local origination: During peak time, ct per minute (w/o VAT) 2.28 2.28 2.28 During non-peak time, ct per minute (w/o VAT) 0.62 0.62 0.62
National origination:
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During peak time, ct per minute (w/o VAT) 4.26 4.26 4.26 During non-peak time, ct per minute (w/o VAT) 1.30 1.16 1.16
Transit: Transit of Type I: During peak time, ct per minute (w/o VAT) 2.00 2.00 2.00 During non-peak time, ct per minute (w/o VAT) 0.54 0.54 0.54 Transit of Type II: During peak time, ct per minute (w/o VAT) 1.98 1.98 1.98 During non-peak time, ct per minute (w/o VAT) 0.54 0.54 0.54 Transit of Type III: During peak time, ct per minute (w/o VAT) 1.59 1.59 1.59 During non-peak time, ct per minute (w/o VAT) 0.43 0.43 0.43 Transit of Type IV: During peak time, ct per minute (w/o VAT) 1.13 1.13 1.13 During non-peak time, ct per minute (w/o VAT) 0.31 0.31 0.31 Transit of Type V: During peak time, ct per minute (w/o VAT) 2.35 2.35 2.35 During non-peak time, ct per minute (w/o VAT) 0.64 0.64 0.64 Source: RRT
The reduction of wholesale services’ prices shall ensure the conditions for efficient long-term competition, which, in turn, will be useful to end users. In 2012, RRT verified whether prices, applied by fixed telecommunications operators for the service of call termination on the corresponding networks, comply with the imposed price control obligations. No violations were observed. In 2012, RRT initiated inspection whether TEO LT, AB costs acounting and accounting separation systems in 2011 complyed with the set requirements.The aim of the inspection (audit) was to verify if TEO LT, AB accounted the costs of the provided services and separated the accounting during the reporting year in observance of the requirements, established by RRT. The aforementioned audit procedure differs from the audit of a set of financial statements of companies and the substantiating data, since the subject of audit is not the financial data or a set of financial reports of the company, but rather the regulatory accounting (cost and revenue accounting, management accounting) and reports for the purpose of verification of reliability of the cost accounting information, intended for price regulation purposes. The audit is an additional tool for RRT to execute its functions. The inspection initiated by RRT should also show if TEO LT, AB performs the price control obligation imposed when providing the regulated retail and wholesale services. It is planned to finish the research in 2013.
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Supervision of wholesale mobile telecommunication services
The reduction13 of the prices of call termination on public mobile telecommunication networks, which was commenced at the end of 2009, was also continued in 2012. The information on the prices of call termination services is provided in Table 7.
Table 7. Prices of call termination on the networks of Bitė Lietuva UAB, Omnitel UAB and Tele2 UAB in 2010–2012
Price from 01-01-2010 Price from 01-01-2011 Price from 01-01-2012 Service till 31-10-1210 till 31-12-2011 till 31-12 2012
Voice call termination, when the prices are not differentiated according to the time of provision of services Voice call termination, ct per minute, w/o 14.43 10.01 5.60 VAT Voice call termination, when the prices are differentiated according to the time of provision of services Voice call termination during peak time*, 18.04 12.51 6.99 ct per minute, w/o VAT Voice call termination during peak time*, 9.02 6.26 3.50 ct per minute, w/o the VAT * The peak time is considered the time from 8 a. m. to 8 p. m. business days and the non-peak time - from 8 p. m. to 8 a. m. business days and round the clock on rest-days and holidays.
Source: RRT
The orders of the Director of RRT of 2009, imposing certain obligations on Bitė Lietuva UAB, Omnitel UAB and Tele2 UAB when providing call termination services on their own networks, provided for the regulation of call termination prices starting from 1 January, 2013. For the purpose of creating the conditions to public mobile telecommunication operators to execute the imposed obligations and to implement requirements of European Commission, on 15 February, 2012, RRT started the work of creating (updating) the costs accounting module for the mobile telecommunications network BU-LRAIC, beside the commenced work of creating (updating) the costs accounting module for the fixed telecommunications operator network. Considering the fact that the works of module creation were not finished in 2012 and following the requirements of the recommendation by European Commission, the highest price limit for call termination from 1 January, 2013 over public mobile telecommunications networks of Bitė Lietuva UAB, Omnitel UAB, and Tele2 UAB was approved by the Order of the Director of RRT No. 1V–1899 of 18 December, 2012. From 1 January 2013 until 31 March, 2013 (inclusive) and from 1 April, 2013 (inclusive) the undertakings Bitė Lietuva UAB, Omnitel UAB, and Tele2 UAB shall have to apply call termination prices not higher than indicated in Table 8.
13 The reduction of prices was set down in the Order No. 1V-1515 of the Director of the Communications Regulatory Authority of the Republic of Lithuania of 24 December, 2009 “On the undertaking Bitė Lietuva UAB, having significant power on the market of call termination in the public mobile telecommunication network of Bitė Lietuva UAB“, Order No. 1V-1516 of 24 December, 2009 “On the undertaking Omnitel UAB, having significant power on the market of call termination in the public mobile telecommunication network of Omnitel UAB” and Order No. 1V-1517 of 24 December, 2009 “On the undertaking Tele2 UAB, having significant power on the market of call termination in the public mobile telecommunication network of Tele2 UAB” RRT | 77
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Table 8. Call termination prices over networks of Bitė Lietuva UAB, Omnitel UAB, and Tele2 UAB from 1 January 2013
Price from Price from No. Service 01-01-01 2013 till 31-03- 01-04-2013 2013
1. Voice call termination price, when prices are not differentiated under service provision time, without VAT 1.1. Voice call termination, LTL per minute 0.0560 0.036 2. Voice call termination price, when prices are differentiated under service provision time, without VAT 2.1. Voice call termination during peak time, LTL per minute* 0.0699 0.036 2.2. Voice call termination during non-peak time, LTL per minute** 0.0350 Notices: * Peak time: from 8 a. m. to 8 p. m. on business days ** Non-peak time: from 8 p.m. to 8 a.m. on business days, all the time on weekends and on holidays Source: RRT
The prices indicated above shall be valid until prices of call termination over public mobile communications networks are determined and approved using the data of BU-LRAIC accounting module, however not longer than until 30 September, 2013. In 2012, no violations were observed by RRT when analysing the provision of wholesale mobile telecommunication services.
Supervision of broadcasting transmission services
RRT, exercising the supervision, in 2012 initiated the inspection of how the systems of cost accounting and accounting separation of Telecentras (operated in 2011), complied with the set requirements. The aim of the inspection (audit) was to inspect if Telecentras, during the reporting year, performed accounting of their costs and separated their accounting in observance of the requirements layed down by RRT. This procedure, as mentioned above, differs from the audit of a set of financial statements of companies and the substantiating data. The audit is an additional tool for RRT to execute its functions. RRT plans to finish the initiated research of how Telecentras performs the imposed price control obligation when providing retail and wholesale services in 2013. According to the data of the inspection (audit) performed, it was determined that the prices of digital terrestrial television broadcasting transmission services provided by Telecentras and TEO LT, AB were higher than the costs for them, therefore, the companies were obligated to reduce the price of digital terrestrial television broadcasting transmission services. Information on price changes is presented in Table 9.
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Table 9. Changes of prices of digital terrestrial television broadcasting transmission services
Price from 01-01-2011 Price from 01-09-2011, Price in 2012, LTL per Digital terrestrial till 30-08-2011, LTL per Undertaking LTL per month, for one month, for one television network month, for one programme programme * programme First 53 670 48 570 48 570
Telecentras Second 49 470 45 540 45 540
First 36 380 56 000 40 384 TEO LT, AB Second 30 820 45 000 34 820
Notices: *TEO LT, AB reduced prices from 05-11-2012
Source: RRT
On 31 October, 2012, Telecentras sent to RRT the updated reference offer for provision of digital terrestrial television broadcasting transmission services and the higher prices entering into force from 1 January, 2013. RRT, taking into consideration the price control obligation when providing digital terrestrial television broadcasting transmission services, imposed to Telecentras, determined that the provided information cannot be considered as basis for increase of prices for provision of digital terrestrial television broadcasting transmission services from 1 January, 2013. Telecentras may change the price for provision of digital terrestrial television broadcasting transmission services only having information on costs of these services calculated according to the rules layed down by RRT.
Supervision of roaming services
Upon comparing the publicly announced prices of the retail international roaming services with the requirements, established in Regulation (EC) No. 544/2009 and Regulation (EC) No 717/200714 of the European Parliament and of the Council, no violations have been established. Upon collecting the information on the revenues and scopes of wholesale roaming services and upon calculating the average service revenues and comparing them with the provisions of the said Regulations, no violations have been established by RRT. Inspections of retail service prices are performed each quarter, inspections of wholesale prices - each half-year. The information on supervision of roaming services is made publicly available on the website of RRT at www.rrt.lt. Regulation of roaming within EU introduced by European Commission entered into force from 1 July, 2012. The aforementioned regulation was the basis for further decrease of prices for wholesale and retail roaming services, retail data transmission services and application of structural measures which, in long term perspective, would provide the possibility to refuse the regulation of prices (see Table 10).
14 Regulation (EC) No. 717/2007 of the European Parliament and of the Council of 27 June 2007 “On roaming on public mobile telephone networks within Community and amending Directive 2002/21/EC (Official Journal L 171, 29.06.2007, p. 0032–0040), Regulation (EC) No 544/2009 of the European Parliament and of the Council of 18 June 2009 amending Regulation (EC) No 717/2007 on roaming on public mobile telephone networks within the Community and Directive 2002/21/EC on a common regulatory framework for electronic communications networks and services (Official Journal L 167, 29.06.2009, p. 0012–0023)
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The structural measures include the following: provision of access to wholesale roaming services; separation of retail national and international roaming services, in order for the consumer to be able to select not the national but another international roaming service provider. In the end of 2012, mobile communication operators published reference offers regarding provision of roaming services access; in 2013 issues regarding implementation of access to the measures, allowing other service providers to provide international roaming services together with national service provider, shall be coordinated.
Table 10. The changes in prices for international roaming services determined by European Commission The highest price The highest price limit from The highest price limit The highest price limit Services limit from 01-07- 01-07- 2011 from 01-07-2012 from 01-07-2013 2014
Retail services
Tariff of voice call transmission in Europe, LTL for minute (with 1.4623 1.2116 1.0027 0.7938 VAT of 21 per cent) Tariff of voice call reception in Europe, LTL for minute (with 0.4596 0.3342 0.2925 0.2089 VAT of 21 per cent) SMS transmission in Europe, LTL for SMS 0.4596 0.3760 0.3342 0.2507 (with VAT of 21 per cent) SMS reception in Europe free of charge free of charge free of charge free of charge Europe data tariff, LTL for Not regulated 2.9245 1.8800 0.8356 Mb (with VAT of 21 per cent)
Wholesale services
Wholesale voice service (origination, transit, 0.6215 0.4834 0.3453 0.1726 termination), LTL for minute (without VAT) Wholesale SMS transmission services LTL for SMS 0.1381 0.1036 0.0691 0.0691 (without VAT) Wholesale data transmission services, LTL for Mb (without 1.7264 0.8632 0.5179 0.1726 VAT) Notices: * The prices calculated using the official currency exchange rate of LTL and EUR; calculations were rounded to the fourth decimal place, in order that the determined price limit could not be exceeded when recalculating the price in EUR. Source: RRT
Promotion of competition based on infrastructure
In order to create better conditions for electronic communications providers to develop broadband communication networks using the existing infrastructure, RRT in cooperation with Vilnius City Municipality and Municipality Enterprise Vilniaus Planas created electronic access to the system of infrastructures spatial data administered by the Municipality (infrastructure maps). Information regarding distribution of engineering communications (communication cable channels) is stored in this website; it is constantly supplemented with
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new data on designed and installed communications in Vilnius City. The access to electronic data base is available to all interested undertakings designing, providing and/or planning to provide electronic communications networks and/or services. More information regarding the project is available on the website www.e-infrastruktura.lt. In 2012, RRT and Klaipeda City Municipality signed the cooperation agreement regarding development of electronic access to digital special data systems of underground infrastructure. Such electronic access would facilitate designing and development of broadband communication networks in Klaipėda City. It is anticipated in the agreement to prepare and install electronic access and to provide it to all the interested undertakings. It is planned to create interfaces with data bases of Klaipėda and Druskininkai Municipalities in 2013.
Number portability service
The number portability service was commenced to be provided in Lithuania starting from 1 January, 2004. The number portability service gives the user a greater freedom to choose a service provider according to the most important criteria: quality and variety of services, prices, loyalty systems, attractiveness of servicing, etc. Due to active competition even the regular consumers get more attractive offers. In 2012, taking into consideration the constant growth of technologies, development of new generation technologies and in order to ensure the possibility for subscribers to use the right of number portability, even in cases when providers of public telecommunications networks and/or public telecommunication services install broadband mobile radiocommunication system or IP telephone network, the Order of the Director of RRT “On the Approval of the Conditions and Specification of the Procedure for Ensuring the Right of the Subscriber to Keep the Subscriber Number when Changing the Provider of Public Telecommunication Services or Location or the Way of Provision of Services”, was amended. Possibility to use the right of number portability (even in cases when providers of public telecommunications networks and/or public telecommunication services install new technologies for provision of public telecommunication services) was ensured in the amendment. According to the data of RRT, until 1 January, 2013 consumers used the number portability service (i.e. migrated) 834 529 times, 806 402 of them were subscribers of mobile communications, 27 940 – fixed communication subscribers (geographic numbers) and 187 fixed communication subscribers (not geographic numbers, i.e. service numbers). Number portability service has been used by 15 per cent of all the active service users (see Figure 40).
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900000 806402 800000 700000 668582 600000 552913 Mobile communication 500000 428233 numbers 400000 300824 300000 Fixed 200000 communication numbers 100000 12540 14043 16759 22302 28127 0 2008 2009 2010 2011 2012
Figure 40. Distribution of number portability amongst fixed and mobile telephone numbers in 2008−2012 Source: RRT Selection of a service provider
The possibility to select a service provider is aimed at encouraging competition in the electronic communications sector when ensuring the right for subscribers of public telecommunication networks and/or public telecommunication services, which are offered by providers having significant power on the market of connection to public telecommunication network and using the network at a fixed location, to choose any provider of public telecommunications services and to use the public fixed telecommunication services offered by that provider. In 2012, there were 15 service providers, whose public telecommunication services could be selected by dialling an operator selection code. There was one operator selection code assigned in 2012. Since 2003, 21 operator codes from the short telephone number series of 10XX were allocated to operators in total.
Resolution of disputes between undertakings
A significant tool for encouraging self-regulatory mechanisms in electronic communications market is ensuring simple, clear and efficient procedures for resolution of disputes between the operating undertakings. For the said purpose RRT has established a permanent Commission for Resolution of Disputes between the Undertakings Providing Electronic Communications Networks and/or Services (hereinafter referred to as the Dispute Resolution Commission), which, according to the mandatory preliminary out-of-court procedure, resolves the disputes arising between the undertakings engaged in electronic communications activities in the area of social relations, regulated by the Law on Electronic Communications. The undertakings in dispute, prior to applying to the court for resolution of a dispute, must apply to the Dispute Resolution Commission, whose resolutions, approved by the Director of RRT, are public to the extent that does not infringe the provisions on protection of state, service or commercial secrets or private life of a natural person and are obligatory to be executed by the parties to the dispute as of the moment of their entering into effect. The disputes are resolved according to the Rules for Resolution of Disputes between the Undertakings Providing Electronic Communications Networks and/or Services and between the Providers or Postal and/or Courier Services (hereinafter referred to the Dispute Resolution Rules). When making its decisions, the Dispute Resolution RRT | 82
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Commission refers to the Law on Electronic Communications, the Civil Code and other legal acts, takes into consideration regulatory restrictions and obligations applicable to any of the parties to the dispute, the relative status of the parties to the dispute on the market and the need to encourage competition. In 2012, the Dispute Resolution Commission received 5 requests to settle a dispute. Bitė Lietuva UAB requested to solve the dispute with Omnitel UAB and Tele2 UAB regarding transfer of prepayment services’ subscribers. Omnitel UAB and Tele2 UAB were obligated to transfer prepayment subscriber numbers to Bitė Lietuva UAB network without any identification, when respondents fail to ensure subscribers the possibility to identify (publicly online) themselves under provision of legal acts and free of charge. Mediafon UAB applied in order to solve the dispute with Tele2 UAB regarding the calls on service numbers of series 800. RRT ordered the respondent to apply the same price for each call minute originated in Tele2 UAB network and transferred to 800-series numbers that belong to Mediafon UAB, as respondent Tele2 UAB applied for call termination service over Tele 2 UAB mobile communication network – i.e. 6.99 ct for 1 minute during peak time and 3.50 ct for 1 minute during non-peak time The Committee refused to satisfy the following: – The request of Mediafon UAB to admit that the price for calls from mobile communication operators’ network to 800-series numbers wich belong to other operators was equal to the price for call termination in an adequate mobile communication network; – The request of Mediafon UAB to admit that the price of the respondent Tele2 UAB, applied for transfer of conversation flow originated in Tele2 UAB networks to numbers of 800 series, could not depend on the size of conversation flow and could not be higher to the operators if their flow is less, compared with other operators; – The request of Mediafon UAB to admit that the service of transferring the calls, originated in Tele2 UAB networks, to numbers of 800 series of Mediafon UAB was irreplaceable in terms of offer, as no other operator could provide access to Tele 2 UAB subscribers. The dispute between TEO LT, AB and Public Body Teleradijo kompanija Hansa was solved partially satisfying the requirements of TEO LT, AB. Public Body Teleradijo kompanija Hansa was obligated to conclude an agreement on lease of infrastructure with TEO LT, AB for it was determined that the request of TEO LT, AB to Public Body Teleradijo kompanija Hansa to conclude an agreement on sharing of communication cable channel system (hereinafter referred to as RKKS) with TEO LT, AB is reasonable and legal, and Public Body Teleradijo kompanija Hansa had an obligation to conclude such agreement with TEO LT, AB. However, the following part of the request of TEO LT, AB was not satisfied: an agreement should be concluded under the same conditions as indicated in lease agreement No. 2012/LN-55 delivered to Public Body Teleradijo kompanija Hansa by written notice No. 04-02-194 on 12 April 2012 and to consider the agreement of 16 April, 2012 concluded. The request of TEO LT, AB to obligate Public Body Teleradijo kompanija Hansa to perform inventory of laid and installed communication cables of RKKS and to deliver the data of aforementioned inventory to TEO LT, AB (together with supporting documents) until the date of entering into force of Dispute Resolution Commission Decision was also satisfied partially, for it was determined that TEO LT, AB had the right to request the aforementioned. However, the Commission did not satisfy the following part of TEO LT, AB request: RRT | 83
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inventory should be performed in 6 months from the date of entering into force of Dispute Resolution Commission Decision. RRT accepted 2 disputes of TEO LT, UAB with Telecentras regarding installation of digital terrestrial television transmitters and prices for services of transmission over digital terrestrial television networks. The final decision regarding these disputes shall be made in 2013. Detailed information regarding disputes is available on website www.rrt.lt in the section “Electronic communications – For business – Dispute solving”. Relevant information regarding resolution of disputes, activities of Dispute Resolution Commission, accepted requests, decision and etc. is available herein.
Competition in the postal and courier services sector
Participants and tendencies of postal and courier services market
In 2012, essential changes took place in postal market. Under the Third Postal Directive adopted in 2008 by the European Parliament and the Council, Lithuania obligated to open the postal services market completely from 31 December, 2012. On 8 November, 2012, the Postal Law was adopted in Lithuania, according to which the postal market was completely opened for free competition from 1 January 2013. The changing market tendencies force service providers to search for new niches, to improve postal delivery systems, to satisfy the needs of postal service users. In 2012, the postal and courier service providers15 further installed postal item self-service terminal for faster, more efficient and safer delivery of different postal items. Postal self-service terminals provide the possibility to the users to send and to take postal items at any time of the day and at any convenient place – next to supermarkets, gas stations, post offices. In Lithuania postal items can be delivered to the terminal of the same kind or delivered personally, in foreign countries postal items are delivered personally to the receiver. The level of competition in 2012 in postal service market remained quite low because until 31 December, 2012 a 50 gram weight limit of reserved postal items was applied for domestic items of correspondence, direct mail and received international items of correspondence. The share of the marker of postal services covered by Lietuvos Paštas AB, in terms of the received and sent correspondence, was 87 per cent. The total postal correspondence market (including direct mail items) in 2012 decreased by 0.1 per cent. The decrease in quantity of postal correspondence is observed from 2008. A significant effect on decrease of market of postal correspondence was made by the competitive effect of electronic communications services. Although the number of sent and received letters decreased evenly, in several past years the parcels become larger and larger part of correspondence. In 2012, positive tendencies remained in liberalized postal parcels market: the number of sent and received parcels, compared to 2011, grew by 26.2 per cent. The growth of number of parcels is related with emigration of residents and growth of electronic commerce. The activity results of companies transporting express parcels in Lithuania show that volume of deliveries, evaluating in terms of
15 Until 31 December, 2012 , postal service providers were distributed in postal service providers and postal courier services providers. According to the Postal Law, which entered into force on 1 January, 2013, all postal services providers are now named postal services providers. RRT | 84
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revenues, increased by 21.8 per cent. This growth was 3.7 per cent faster than the total growth of revenues from courier service delivery in 2012. Compared to 2011, in terms of revenues the overall postal and courier services market grew by 13.9 per cent in 2012 and reached LTL 310 million. The postal services market grew by 7.9 per cent and reached LTL 121 million. In postal services market, in terms of revenues, the major part of market is covered by Lietuvos Paštas AB – 93.3 per cent. The courier services market, in terms of revenues and compared to 2011, grew by 18.1 per cent and reached LTL 189 million in 2012. The dominating operators remained the same as in 2011: DPD Litetuva UAB, DHL Lietuva UAB and Venipak LT UAB, they occupied the following market shares correspondingly: 29.8 per cent and two shares of 12.6 per cent. In 2012, RRT received 12 applications of undertakings to be included into the list of postal and/or courier services providers, 5 undertakings were included only in the list of courier services providers and 7 undertakings were included either only in postal services providers or in both postal and courier services providers. During 2012, 9 undertakings providing postal and/or courier services were deleted from the list of postal and/or courier services providers. In the end of 2012, 73 undertakings operated in postal and/or courier service market, 17 of them provided postal and courier services and 56 – only courier services (see Figure 41). Compared to 2011, the total number of the market participants slightly decreased, however, the number of undertakings providing postal services, increased by 30.8 per cent (from 13 services providers in 2011 to 17 in 2012). Such increase of number of postal service providers is related with complete liberalization of the market from 1 January 2013 and new services in the market such as postal self-service terminals. Observing the dynamics of the number of postal and courier services providers in Lithuania during 2008-2012, their number in past few years is about 70.
Postal services providers Courier services providers
2012 17 73
2011 13 74
2010 12 71
2009 15 84
2008 15 78
Figure 41. Dynamics of providers of postal and courier services in Lithuania in 2008–2012 Source: RRT
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Tariffs and cost accounting of universal postal services
Lietuvos Paštas AB is obligated to provide universal postal service on the entire territory of the country, the said undertaking must ensure uninterrupted provision of universal postal services to all the users of postal services on the same conditions, at the same tariffs applicable both to urban and rural residents. The price caps for universal postal services were approved by the Government of the Republic of Lithuania until validation of the new edition of Postal Law. The postal service market was liberalised and Directive 2008/6/EC was implemented by the Law No. XI-2379 (which entered into force on 1 January, 2013) amending the Postal Law of the Republic of Lithuania approved in the Parliament of the Republic of Lithuania on 8 November 2012. According to the new edition of the Postal Law, the approval of tariffs of universal postal services is a function of RRT, therefore, the draft of the Order of the Director of RRT On Approval of Price Caps of Universal Postal Services is prepared and published for public consultation. RRT supervises if the tariffs of universal postal services are transparent, non-discriminating, cost-based and affordable to all the consumers of postal services. In 2012, the price caps of universal postal services, approved by Decision No. 745 of the Government of the Republic of Lithuania on 1 September, 2007, were in effect. In 2012, sending of a domestic non-priority letter, weighing less than 20 grams, cost LTL 1.35, sending of a priority letter - LTL 1.55. The aforementioned universal postal services tariffs are applicable to both residents and enterprises, which send letters in small volumes. The provider of universal postal services applied the specific universal postal services tariffs in 2012. The provider of universal postal services must apply the principles of transparency and non-discrimination to the specific tariffs and the related conditions. By commission of RRT, in October, 2012, survey on satisfaction with postal and courier services was performed; according to data of the aforementioned survey (the scope of the survey – 1009 respondents), the majority (70-80 per cent) of Lietuvos Paštas users thought that sending letters over this company was very cheap, cheap or quite cheap. 53 per cent of clients of Lietuvos Paštas evaluated the price of parcel sending in Lithuania in the aforementioned way and 36 of sending abroad (see Figures 42 and 43).
Very cheap Cheap Quite cheap Expensive Very expensive N/O Sending of non- In total 3 20 57 17 21 priority letters in City 4 21 57 16 21 Lithuania (1.35 LTL) Village 2 19 58 19 21
Sending of priority In total 5 21 53 19 10 letters abroad (2.45 City 6 20 52 19 21 LTL to EU) Village 3 24 54 18 1 Sending of non- In total 3 16 priority letters abroad 51 22 5 3 (2.15 LTL to EU) City 4 16 52 23 3 3 Village 3 16 50 21 8 2
Sending of non- In total 3 16 52 23 4 3 priority letters City abroad (2.15 LTL to 3 16 53 22 3 3 2 14 52 26 4 2 EU) Village Figure 42. Evaluation of prices for sending letters over Lietuvos Paštas AB, per cent. Source: RRT
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Very cheap Cheap Quite cheap Expensive Very expensive N/O
0,2 Sending of parcel In total 8 45 19 6 22 in Lithuania 0,3 City 10 44 14 5 26
Village 4 48 26 7 14
0,2 Sending of parcel In total 4 32 26 11 26 abroad 0,3 City 4 33 23 10 30
Village 6 30 32 14 18
Figure 43. Evaluation of prices for sending parcels over Lietuvos Paštas AB, per cent. Source: RRT
RRT supervises that the cost accounting system of Lietuvos Paštas AB, the provider of universal postal services, is transparent, justified and compliant with the requirements for cost accounting of universal postal services, established by RRT and the main cost accounting principles (causality, cumulation, objectivity, consistency, transparency, publicity and usefulness). In 2012, RRT performed the analysis of the Annual Report on Costs of Universal Postal Services and Reserved Postal Services of 2011, provided by Lietuvos Paštas AB, and determined that Lietuvos Paštas AB calculated its costs in observance of the requirements established by RRT. In 2012, an independent audit of Lietuvos Paštas AB was performed with the aim of establishing whether the cost accounting system, used by the provider of universal postal services in 2011, complied with the principles and requirements for handling of cost accounting, established in the Rules on Cost Accounting of the Provider of Universal Postal Services. In addition, an analysis of the structure of self-cost of the services provided by the company was performed, the verification of correctness of the annual report on cost accounting was prepared, as well as other works and procedures were executed for the purpose of verification of the cost accounting system. The conclusions of the independent audit showed that the information and data, provided in the annual cost accounting report, was correct. The cost accounting report of 2011 was prepared in observance of the requirements provided by legal acts. According to the requirements of the new edition of Postal Law and Directive 2008/6/EC, the Order No. 1V-625 of the Director of RRT of 1 July 2005 On the Approval of the Rules on Cost Accounting of the Provider of Universal Postal Services was amended by the order of the RRT.
Service of delivery of periodical publication to subscribers in rural territory
The Law for amending and supplementing of Articles 2, 3 and 8 of the Postal Law was approved on 20 December 2011 by the Parliament of the Republic of Lithuania. According to the aforementioned Law, the new function of supervision of delivery of periodical publication to subscribers in rural territory was delegated to RRT. Referring to the Postal Law, RRT amended and prepared two legal acts – the Order No. 1V-98 of the Director of RRT of 20 January 2012 On the Amendment of the Order No. 1V-625 of the Director of RRT of 1 July 2005 On the Approval of the Rules on Cost Accounting of the Provider of Universal Postal Services (coordinated with RRT | 87
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interested institutions) and Decision No. 835 of the Government of the Republic of Lithuania approved on 11 July 2012 On the Approval of Rules on Compensation of Services of Delivery of Periodical Publications to Rural Subscribers Operating with Loss. On 17 September, 2012, referring to the aforementioned Decision, Lietuvos Paštas AB provided application regarding compensation of loss services of delivery of periodical publications to rural subscribers for the first half of 2012. RRT analysed the documents, data and evaluations provided by Lietuvos Paštas AB and on 31 October, 2012 delivered to Ministry of Transport and Communication of the Republic of Lithuania the conclusion regarding the compensation of loss services of delivery of periodical publications to rural subscribers for the first half of 2012, where it was indicated that data and calculations corresponded to the requirements set down in the Rules of Cost Accounting.
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CREATING PRECONDITIONS FOR TECHNOLOGICAL DEVELOPMENT OF ELECTRONIC COMMUNICATIONS MARKET
Promotion of investments and development of advanced ICT technologies
The demand and significance of radio frequency spectrum continues to grow each year. The radiocommunication resources are the basis for the innovative and dynamic wireless communication services of electronic communications sector. The regulation and management of the said natural resources is the basis for ICT development, therefore, the management of radio spectrum must be rational and efficient, flexible, corresponding to the needs of fastly changing technologies, especially transmitting and mobile communication; it should reflect business needs, promote investments in networks and services of new generation. In 2012, Lithuania successfully switched from analogue terrestrial television to digital terrestrial television. Still we have the possibility to transmit more than 10 television channels free of charge herewith making a large share of spectrum available for advanced ICT technologies. The increase of broadband radiocommunication penetration is still the priority in order to make services provided over new-generation networks available in all the territory. As regards long-term ICT development perspectives, it is necessary to consider convergation of electronic communications and audio-visual markets. In Europe it is more frequently addressed to the necessity to reduce the share of radio spectrum allocated for television broadcasting and to promote the development of advanced ICT technologies. RRT, when making decisions regarding the usage of radio spectrum, has to consider the changes in electronic communications market and to ensure acceptable conditions for all interested users of electronic communications services. Therefore, the most important role in the regulatory area is played by the principles of technological neutrality, proportionality, minimum regulation, legal certainty, economic development, assuring of efficient competition, protection of consumer rights, transparency, and non-discrimination. For the purpose of maximizing the efficient use of radio frequencies and avoiding harmful interferences and herewith promoting investments and assuring ICT development, it is important to harmonise the use of specific radio frequency bands on the widest level possible. In this sphere, Lithuania being EU border state has a special position. As the spread of radio frequency is not limited by any borders, we usually become a buffer zone accumulating incompatibilities arisising from usage of radio frequencies by two different radio frequency management systems – of EU Members and non-Member States. In order to ensure development of ICT in Lithuania, RRT is actively involved in the activities of ITU, closely cooperates with the working groups of the Electronic Communications Committee of the European Conference of Postal and Telecommunications Administrations (hereinafter referred to as CEPT) and Electronic Communications Committee (ECC), of the European Commission, as well as communications administrations of neighbour countries. More information regarding international cooperation – in the section “Integration into the decision making system of the EU and international regulatory space”.
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Radio frequency management and installation of modern technologies
Radio frequencies in Lithuania are managed in consideration with decisions made and strategies approved by EU. The main document for strategic planning of radio frequency management in Lithuania and other EU countries is RSPP (mentioned above); RRT representatives also contributed a lot when preparing this document. In RSPP it was determined, that Member States shall grant permits to use radio frequencies (channels) in 900 MHz, 1800 MHz 2.5–2.69 GHz and 3.4–3.8 GHz radio frequency bands for installation of electronic communications networks (over which electronic communications services should be provided, including wireless broadband communications services) not later than until 31 December, 2012. When implementing this provision, 3 permits, granting the right to install radiocommunication access networks and to provide electronic communication services over them, use radio frequencies (channels) in 2500-2560 MHZ and 2620-2680 MHz radio frequency bands, were prepared and granted; one of the permit – in 3650-3670 MHZ radio frequency band to be used in all territory of the Republic of Lithuania and one permit – in 3670-3735 MHz radio frequency band to be used in several districts of the Republic of Lithuania. It is also worth noting the problematic of granting of permits regarding 790–862 MHz radio frequency band: although RSPP determined that permits granting the right to use this radio frequency band should be granted not later than 1 January, 2013, there is also a possibility for the European Commission (having the request of the Member State) to apply special provisions, i.e. to extend the term for permit issuing until 31 December, 2015. Before dedicating radio frequency band 790-862 MHz to mobile radio communication service, it is necessary to “transfer” television stations operating over 61-65 channels from this radio frequency band. RRT performed calculations of influence of Latvia television stations operating in this diapason; influence to base stations of mobile communication service and users’ equipment were also evaluated. The results showed that influence on users’ equipment shall not be significant, though to base stations, the sectors of which are directed to Latvia, shall be influenced significantly – in major part of Lithuania the sensibility of base stations shall decrease by several tenths of decibels. A preliminary evaluation of Lithuanian LTE network influence on signal reception of television stations operating in radio frequency band lower than 790 MHz. The results showed that LTE base station may disturb television receivers located within distance of several kilometres from base station when television receiver is at the border of television channel zone. The major influence of base stations is made on television channel 60 (TV60) and several close channels. If television signal is stronger, influence of LTE base station on television signal reception is lower. Fixed service systems of the Russian Federation operating in Kaliningrad region interfere the installation of mobile communication in radio frequency band 790-862 MHz. In order to ascertain possible coordination problems of Lithuanian mobile communication service stations in this radio frequency band, calculations were made. The results showed the possible safe distances from 20 to 100 kilometres around Kaliningrad region where it is presumable that no base stations shall be able to be built. Taking in consideration the aforementioned problems of installation of mobile communication service in 790–862 MHz radio frequency band, RRT asked the European Commission to apply to Lithuania special
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provision allowing deviations and to postpone the issue of permits until the middle of 2013, and in case of further usage of such radio frequency band for television broadcasting in Latvia – until the middle of 2015. The European Commission shall make the decision regarding this request in 2013. In 2012, the research regarding compatibility of radars and LTE systems in 790-862 MHz radio frequency band, was ordered. The influence of radar RLS1 on LTE systems was evaluated experimentally. Inasmuch as there was no technical possibility to imitate radar operating in 790-862 MHz radio frequency band by interference generator, the measurements were performed in 1800 MHz radio frequency band, recalculating the used parameters. It was aimed at determination of how the interfering radar signal influence data transmission speed in LTE network. The results of measurements showed that there will be no influence of interfering signal of rotating radar on data transmission speed on commercial LTE network. In 2012, the research regarding influence of radio interferences of DECT (Digital European Cordless Telecommunications) system on LTE system was also ordered. The influence of DECT system operating in 1880-1900 MHz radio frequency band on LTE system operating in 1710-1785MHz/1805-1880 MHz radio frequency band was evaluated in the experiment. It was aimed at determination of the influence of DECT system interfering signal on data transmission speed on LTE network. The results showed that in case of usage of 0 dBi intensifying antenna in DECT system, the influence of interferences on data transmission speed on commercial LTE networks exist only when the distance between the systems is not more than 15 meters. In case 12 dBi intensifying antennas in DECT system are used, the distance is 20 meters. In 2012 requests to coordinate 898 station sectors of wireless broadband access (BPP) were sent to communications administrations of neighbour countries. Communications administrations of neighbour countries responded to previously sent requests to coordinate 95 new BPP station sectors. Requests of communications administrations of neighbour countries to coordinate133 BPP station sectors were analysed and responded. 513 BPP station sectors were forwarded to ITU for notification. According to the previously sent requests, ITU rejected 20 BPP entries. The analysis of conditions for use of radio frequencies was performed prior to granting the right to use 262 BPP stations (421 sectors). Compared to 2011, in 2012 the number of the received operator requests, increased 3 times. Registration of 56 BPP stations (161 sector) was eliminated, frequencies for 78 radio relay links were selected. For the first time, in 2012, RRT performed calculations of probable zone coverage of GSM and UMTS networks of the following undertakings: Bitė Lietuva UAB, Omnitel UAB and Tele2 UAB (see Figure 44 and 45). Calculations of GSM network coverage were performed using Okumura Hata Davids model and calculations of UMTS network coverage were performed using COST 231 model (ratios were corrected taking in consideration the results of the performed measurements). The results show probable signal levels in hight of 1.5 m over the earth. The objective of the calculation was not to show the exact mobile radio communication network coverage, but to compare networks of different operators. It is planned in future to perform calculations of probable coverage zones for LTE and mobile WiMAX radiocommunication stations.
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90,0 77.3 80,0 70,0 63.9 60,0 %50,0 42.2 40,0 31.7 30,0 16.4 20,0 13.9 12.6 6.4 6.1 4.8 10,0 2.9 1.3 0,0 -105 dBm -95 dBm -85 dBm -75 dBm Level of signal
Bitė Lietuva UAB Omnitel UAB Tele2 UAB
Figure 44. UMTS network coverage in Lithuania in 2012, per cent Source: RRT
98.6 86.1 % 98.6 58.1 85.9 56.6 98.3 85.5 56.0
-95 dBm -85 dBm -75 dBm Level of signal
Bitė Lietuva UAB Omnitel UAB Tele2 UAB
Figure 45. GSM network coverage in Lithuania in 2012, per cent Source: RRT
Cooperating with Vilnius University, research regarding influence of forests on GSM and UMTS signal was performed. Measurements of signal level of UMTS and GSM networks in forests were performed, neutralization of signal penetrating deep into the forest was examined. The received results were used for calculation of UMTS and GSM network coverage.
Digital TV and radio
The year 2012 in Lithuanian radiocommunication history is the year when analogue terrestrial television was switched-off. Analogue terrestrial television, which operated in Lithuania for 55 years, was switched-off on 29 October, 2012 (in total 121 station). Lithuania was the 21 EU State to do so. In the same 2012, analogue terrestrial television was switched-off in Portugal, Czech Republic, Italy, Ireland, United Kingdom and Slovakia, the rest EU Member States who still have analogue terrestrial television are planning to switch-off this television in 2013 (Poland, Bulgaria and Greece) and in 2015 (Hungary and Romania).
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In accordance with Geneva Agreement16 of 2006, analogue terrestrial television stations with a right to protection from electromagnetic interferences may operate until 17 July, 2015. Neighbour countries, not Members States, Russian Federation and Belarus are also planning switching-off analogue terrestrial television, therefore, it is anticipated that limitations for radiation parameters of some television channels used in Lithuania shall be applied; the aforementioned limitations shall ensure the protection of analogue terrestrial television stations in countries still using this television. 90 digital terrestrial television stations operated during switching-off analogue terrestrial television: 4 national coverage digital analogue terrestrial television networks, 4 local and regional digital analogue terrestrial television stations, 2 of which broadcasted 3 high definition programmes. On the first days after switching-off analogue terrestrial television, 7 digital analogue terrestrial television stations for broadcasting local and regional programmes were switched on, additionally 4 such stations were switched on until the end of the year. Switching-off analogue terrestrial television allowed usage of 3 new national digital terrestrial television networks (formed from released channels) which enabled broadcasting of about 30 programmes of standard definition television programmes (broadcasted over analogue terrestrial television networks) instead of 5. In as much as the permit to use radio television channels in one of the new digital terrestrial television network was granted (in 2011) to Public Enterprise Lietuvos Nacionalinis Radijas ir Televizija (hereinafter referred to as LRT) by following the Law adopted by the Parliament of the Republic of Lithuania amending Article 5 of the Law on the National Radio and Television of the Republic of Lithuania, the objective of RRT in 2012 was to grant permits allowing usage of television channels in the remaining 2 digital terrestrial television networks of national coverage. In order to grant the right to use radio frequencies/channels in digital terrestrial television networks, a public tender was announced by Order No. 1V-1358 of the Director of RRT of 30 December, 2011. In the description of conditions of this tender, by following the description of the Digital television installation model in Lithuania approved by the Resolution of the Government of the Republic of Lithuania No. 1492 (Official gazette Verslo Žinios, 2004, No. 171-6336; 2011, No. 155-7362), future users of radio frequencies were obligated to install digital terrestrial television stations in Vilnius, Kaunas, Šiauliai and Panevėžys no later than until 1 January, 2014 and in Utena, Druskininkai, Tauragė, Telšiai and Visaginas no later than until 1 January, 2015. Two of three undertakings who provided applications – Telecentras and TEO, LT AB were announced as winners of the tender by the Order No. 1V-942 of the Director of RRT of 24 July, 2012 “On approval of Winners of the Public Tender to Grant the Right to Use the Radio Frequencies /Channels in the Digital Terrestrial Television networks”. The plans of RRT to determine winners of the tender until the end of March 2012, were influenced by decisions of the World Radiocommunication Conference WRC-12. In the Conference the Resolution was adopted where it was determined to allocate the 694-790 MHz radio frequency band, currently used for television broadcasting, to be used by the mobile service on a primary basis in international mobile radiocommunication (ITM) systems after the World Radiocommunication Conference in 2015. Taking in consideration the anticipated change, after public consultations and discussions with market participants and interested institutions, Order No. 1V-446 of the Director of RRT of 10 April, 2012 “On Amending of the Order No. 1V-419 of the Director of RRT of 28 April, 2005 “On Approval of Development Plan of Digital Terrestrial
16 Regional agreement regarding digital terrestrial television planning in the first region of ITU (in the part of the first region located west from 170° E longitude and north from 40° S latitude, except territory of Mongolia) and in 174-230 MHz and 470-862 MHz radio frequency bands of the Islamic Republic of Iran, Geneva, 2006. RRT | 93
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Television”” (by which validation term of the anticipated permits was reduced to 10 years) was adopted. After this order was adopted, one more public tender was announced on granting the right to use television channels in local and regional digital terrestrial television stations. The aim of this tender was to determine users of sixteen television channels who would provide local and regional broadcasting transmission services from 29 October, 2012. 15 winners out of 16 participants of the tender, willing to use 21 television channel, were approved by Order no. 1V-894 of the Director of the RRT of 12 July, 2012 “On Approval of Winners of the Public Tender to Grant the Right to Use the Radio Frequencies /Channels in Local and Regional Digital Terrestrial Television stations”. In as much as installation works of the new digital terrestrial television network used to ensure broadcasting of television programmes prepared by LRT in all territory of the Republic of Lithuania, were not started prior to switching-off analogue terrestrial television, significant attention was dedicated to increase of coverage of the first digital terrestrial television network used for broadcasting of many not-coded television programmes. Meetings were arranged (the majority by initiative of broadcasters) in which it was aimed at solution finding regarding the increase of coverage of the first digital terrestrial television network of at least the same level as the coverage of the switched-off analogue LRT network. The night before analogue terrestrial television was switched-off, a decision to change coding ratio in the first digital terrestrial television network was approved. This change governed effect corresponding the increase of power of all transmitters of the first digital terrestrial television network by 1.5 time, however, data flow transmission possibilities in this network decreased from 22.4 Mbps to 19.9 Mbps. Addition measures were also taken in order to improve the coverage of the first digital terrestrial television network in separate regions of Lithuania: permits to use digital terrestrial television stations (with increased transmitter power) in Druskininkai, Lazdijai, Varėna, and Šalčininkai were granted to Telecentras on 7 November, 2012 and permits to use the new digital terrestrial television stations in Nida and Švenčionys were also granted. The anticipated theoretic coverage territory of the first digital terrestrial television network, reach by implementing the aforementioned measures, is shown in Figure 46.
Figure 46. Coverage territory of the first digital terrestrial television network
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12 terrestrial radiocommunications networks of national coverage operated in the end of 2012 (LRT RADIJAS, LRT KLASIKA, LRT OPUS, Laisvoji banga, M–1, M–1 plius, Marijos radijas, ZIP FM, Pūkas, Radiocentras, Lietus, Žinių radijas), they included 179 UTB stations; local and regional radio programmes were broadcasted by additional 69 UTB stations. In 2012, new UTB station in Telšiai was launched in 95.4 MHz radio frequency (Pūkas-2 radio programme), conditions of coverage of station operating in 91.4 MHz radio frequency in Klaipėda and in 101.6 MHz radio frequency in Tauragė were improved. Taking in consideration that the analogue terrestrial television in the Republic of Lithuania is switched-off and installation principles of terrestrial television networks and stations and radio frequency (channels) assignment and usage in the digital terrestrial television networks and stations are determined by the Digital terrestrial television development plan, and in order to determine new radio frequencies for broadcasters and/or rebroadcasters, the draft of Order of the Director of RRT and Decision of the Radio and Television Commission of Lithuania „On approval of Amendment of the Order No. 1V-125 of the Director of RRT of 15 October, 2003 „On Approval of Strategic Plan of Radio Frequency Determination for Broadcasting Radio and Television Programmes“ and the Decision No, 89 of the Radio and Television Commission of Lithuania of 15 October, 2003 „On Approval of Strategic Plan of Radio Frequency Determination for Broadcasting Radio and Television programmes“ was prepared and started to be coordinated with interested institutions. After this draft is approved (by order determined in Article 49 of Electronic Communications Law), the basis for information delivery regarding coordinated radio frequencies to the Radio and Television Commission of Lithuania and their assignment to broadcasters and/or rebroadcasters (to whom licences or permits to establish and exploit their own electronic communication networks shall be granted by the Radio and Television Commission of Lithuania), also the basis for implementing procedures of radio frequency changing or assignment to broadcasters is created.
Mobile service
Mobile radiocommunication is widely used by both companies for satisfaction of their internal communication needs and by state institutions for the activities pertaining to national defence, guarding the state borders, national security, maintenance of public order and state rescue services. However, the largest share of the spectrum, allocated for the mobile service, is used by public network operators who are granted the right to launch public mobile radiocommunication system networks in Lithuania and provide electronic communications services over such networks, increased their share of spectrum in 2012. They there granted by 3 permits to use radio frequencies (channels) in 2500–2560 MHz and 2620–2680 MHz radio frequency bands and granted the right to establish LTE networks and to provide electronic communications services over these networks. One permit to use 3605-3670 MHz radio frequency band in all territory of the Republic of Lithuania and one permit to use 3670-3735 MHz radio frequency band in several regions of the Republic of Lithuania were granted. 45 permits to establish public radiocommunication network of narrow band core (magistral) systems were granted. They governed the installation (in 2012) of the public radio communication of new NEXEDGE technology in 400 MHz radio frequency band, covering almost the whole country and mostly used for more
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efficient provision of emergency ambulance services. In 2012 radio frequency users using mobile radiocommunication frequencies for their own use expanded their networks insignificantly. In 2012 RRT received 1385 requests and inquiries regarding the use of mobile radiocommuncation. Upon investigation of the said requests, 1083 replies were prepared, 766 radiocommunications stations were registered, 421 permits to use mobile service radio frequencies, 283 permits to use ship stations and 174 permits to use aircraft stations were issued. In 2012 RRT executed supervision of radio frequencies intended to mobile communication, through which 1483 internal radiocommunication networks, 125 terrestrial stations and 423 aircraft stations of the aeronautics mobile service, 40 shore stations and 677 ship stations of the marine mobile service operated. At the end of 2012 the operators of public mobile radiocommunication networks used 5856 base stations in the radio frequency bands, allocated to them (see figures 47 and 48.), i.e. 726 base stations more compared to 2011.
2012 5856
2011 5130
2010 4550
2009 4149
2008 3632
1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000
Figure 47. The growth of the number of base stations of public mobile radiocommunication networks in 2008–2012 Source: RRT
LTE, 133 WiMAX, 532 2012 GSM 1800, 605 UMTS, 1678 GSM 900, 2867 LTE, 21 WiMAX, 364 2011 GSM 1800, 565 UMTS, 1426 GSM 900, 2605 LTE, 0 WiMAX, 289 2010 GSM 1800, 527 UMTS, 1076 GSM 900, 2459 LTE, 0 WiMAX, 217 2009 GSM 1800, 490 UMTS, 903 GSM 900, 2347 LTE, 0 WiMAX, 8 2008 GSM 1800, 459 UMTS, 728 GSM 900, 2247
0 500 1000 1500 2000 2500 3000 Figure 48. Base stations of public mobile radiocommunication networks in 2008–2012 Source: RRT
During 2012 operators of public mobile radiocommunication system networks GSM (GSM 900 and GSM 1800), UMTS, LTE and WiMAX registered 955 base stations and at the end of the year used 5815 base RRT | 96
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stations. Compared to 2011, in 2012 the number of GSM 900 base stations grew by 10.05 per cent, the number of GSM-1800 base stations – by 7.07 per cent, the number of UMTS base stations – by 17.67 per cent, the number of WiMAX mobile stations – by 46.15 per cent. The number of LTE base stations increased 6.3 times. Such rapid increase in the number of LTE base stations was influenced by the fact that LTE networks were allowed to function in the 1800 MHz frequency bands together with the GSM networks, permits allowing establishment of LTE networks in 2600 MHz frequency bands were also issued. The operators used the said solutions. RRT registered 100 LTE base stations in 1800 MHz frequency band and 20 LTE base stations in 2600 MHz frequency band. The distribution of number of base stations of public radiocommunications systems in terms of systems is shown in Figure 49.
WiMAX 532 GSM 1800 9% 605 UMTS 11% 1678 29%
LTE GSM 900 133 2867 2% 49%
Figure 49. The number of base stations in 2012 Source: RRT
In 2012 operators also ceased a part of base stations – 10 UMTS stations, 39 GSM 900 stations, 8 GSM 1800 stations, 8 LTE stations and 56 WiMAX stations; mobile analogue cellular radiocommunication network NMT 450 was also ceased and all stations of this network switched off. In 2012, usage conditions of 1 base station were changed in the digital terrestrial mobile radiocommunication networks, intended for the activities pertaining to keeping the public order, state security services, guarding the state borders and the national security and 227 base stations were used at the end of the year. Lietuvos Geležinkeliai AB registered 1 new base station dedicated for usage in the railroad radiocommunication (GSM-R) network. In 2012 operator of public radiocommunication network of TETRA technology registered 2 new base stations and at the end of the year 10 base stations in total were used in this network. In 2012 public radio communication of new NEXEDGE technology in 400 MHz radio frequency band was started to be installed. 31 NEXEDGE base station was registered during the year. In total in 2012, 990 (71.5 per cent) more new base stations were registered compared to 2011. In 2012, when performing international coordination of radio frequencies for mobile service, 10 requests to coordinate radio frequencies (channels) were sent to radiocommunication administrations of neighbour countries. 13 requests received from communication administrations of neighbour countries to coordinate radio frequencies (channels) of mobile service were examined and replies were made.
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When implementing provisions of Regulation No. 677/2011 of the European Commission (EU), in 2012 RRT started to perform functions of national aeronautics mobile service radio frequencies management, representing interests of radio frequency users in Lithuania in the European Organisation for the Safety of Air Navigation EUROCONTROL. When cooperating with EUROCONTROL, revision of the aeronautical radionavigation service register of radio frequencies administered by this organization was performed in 2012. During the revision parameters of radio frequencies intended for Lithuania were corrected, unused radio frequencies (channels) were deleted form the register.
Satellite and fixed radiocommunication service
Fixed service The number of radio relay stations (hereinafter referred to as RRL) increased in 2012 (see Figure 50). This growth is related to the overall development of mobile communication networks. The demand for RRL of larger capacities also grew because of the increase of data transmission flows. The growth in the number of radio relay links of the fixed service has been observed for several years in a row. The growth results from the fact that operators faced the need to send larger flows of information over the internal networks. The volumes of provision of the mobile Internet services also increased. In 2012, 460 permits to use radio relay links were issued, which means that the radio frequency (channel) is used at 920 new radio relay link stations. In 2012 operators refused to use the frequencies (channels) in 32 radio relay links, due to which the total number of RRL increased only by 428 radio relay links. Compared to 2011, the growth of RRL was 6 per cent.
2012 7547
2011 7119
2010 6601
Figure 50. The growth in the number of radio relay links in 2010–2012 Source: RRT
At present radio frequencies up to 38.5 GHz are used for fixed radiocommunication in Lithuania. Percentages of number of RRT stations in terms of radio frequency bands are shown in Figure 51.
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Other bands 2.2-2.69 GHz 10% 11%
31-38.5 GHz 8% 5.7-7.8 GHz 15%
21.2-23.6 GHz 56%
Figure 51. Percentages of number of RRT stations in terms of radio frequency bands in 2012 Source: RRT
Electronic registration operates in radio frequency bands 64–64.5/65–65.5 GHz and 74.625– 75.875/84.625–85.875 GHz. It simplifies the procedure of registration of radio relay links for users of radio frequencies.
Satellite service
In 2012, RRT, in cooperation with communication administrations of Latvia and Russia, coordinated three satellite communication Earth stations, operated in 14 GHz band. At present there are some problems related with Earth stations desired to be used in neighbouring states receiving signals in 3-4 GHz frequency bands for broadband terrestrial communication systems installed in Lithuania may cause interferences. RRT sent negative responses to the requests received from communication administrations of Sweden and Russia regarding earth station coordination in this band. RRT informed ITU European Radiocommunications Office about Earth station in Kaliningrad notified by communication administration of Russia, the coordination procedure of which has not been finished with Lithuania. In 2012 where was one permit issued allowing usage of satellite Earth station for the radio frequency user in Lithuania. RRT issued six permits to use satellite news collection stations in Vilnius and Kaunas for broadcasting Euroleague Basketball's Games. Taking in consideration the fact that satellite communication operator attributes frequencies to Earth station only a few days before the beginning of the event and the permit to use Earth station for transmission of commentary by satellite networks should be issued in 1-2 days before the beginning of the event, suggestions to change legal acts regulating frequency assignment procedures were prepared. RRT analysed twenty-five international frequency information circulars, published by the ITU Radio Bureau each two weeks and intended for satellite services, which publish the advanced, coordination and notification statements of the states intending to implement satellite networks. In 2012 RRT delivered to ITU request of advanced information establishment regarding the new satellite communication network in position 9.3 W GSO (intended to Lithuania in fixed satellite communication plan). After establishment of notification delivered by Lithuania in ITU international frequency information circular, RRT | 99
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notifications and request regarding coordination procedures for communication administrations of USA, France, Malaysia, Kazakhstan, Saudi Arabia and Iran were received. In order to expand the planned territory of service provision in Lithuania, RRT signed a bilateral agreement with Israel Ministry of Communication regarding the possibility to include the territory of Israel in the service area of fixed satellite communication networks installed in 9.3 position in planned frequency bands. The proposal of parallel agreement to be signed by Kazakhstan is prepared. After analysing orbital resource management and assignment procedures in other countries, the draft of “Rules for management, assignment and usage of orbital resources, including position in geo-stationary orbit” was prepared. The aim of the aforementioned draft is to provide undertakings the possibility to use all planned and not planned orbital resources assigned by ITU to be used in Lithuania. Regarding the unplanned orbital resources, it is anticipated that RRT shall conclude an agreement with an operator and the permit to use orbital resources assigned to be used in Lithuania shall be issued by RRT. In 2012 RRT representative informed the European Commission about installation of satellite mobile communication (MSS) system in 2 GHz band in Lithuania. Although one of the two released satellites of operators selected throughout the EU covers the territory of Lithuania, yet according to the information obtained, services actually were not provided. Lithuania, together with Poland sustained the official letter prepared by Sweden regarding the existing situation and inactivity of operators. After this letter communication administration of Germany informed the European Commission that both Solaris and Inmarsat failed to perform obligations determined and accepted during the tender. Following the Decision made by European Commission, Lithuania, as well as other Member States shall perform research regarding implementation of obligations in Lithuania. RRT participates in working group FM44 of CEPT making decision regarding issues of satellite communication. In 2012, the group prepared report and decision on Earth stations on board moving platforms, (ESOMP) aiming at promotion of installation of the new systems in 17-20 GHz and 27.5–30 GHz bands. Such communication earth stations, operated in terrestrial vehicles, aircrafts or ships, are able to function in the Ka band without separate permissions. RRT already received a request from Eutelsat regarding the conditions of usage of these stations in Lithuania’s airspace. A significant issue analysed in FM44 working group is outside use of pseudolites. Many notices regarding pseudolites were delivered by USA during public consultations, the suggestion was to forbid their usage in GNSS frequencies. Germany is planning not to use pseudolites outside until 2016 until Galileo system will work at full capacity and there will be a possibility to perform actual measurement regarding interferences on other radiocommunication systems. Issues of WRC-15 agenda were also started to be discussed. The lack of radio spectrum for satellite communications services governed plans to allocate new radio frequency bands for the aforementioned. Additional 250 MHz bands in 10-17 GHz band and 100 MHz bands in 7-8 GHz bands are being sought for satellite fixed service in 1 and 3 regions of ITU. Terrestrial radiocommunication systems operate in these frequencies in Lithuania, therefore, RRT tries to find a solution ensuring interests of users of the existing frequencies and conditioning installation of the new satellite communication technologies.
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In 2012, a representative of RRT participated in the activities of the working group for resolution of the issues, relating to the implementation of the National Programme of Scientific Research and Development of Technologies and Innovation in the Area of Space in 2010-2015.
Radio amateur activities
According to Article 60 of the Law on Electronic Communications, RRT determines the procedure of granting the right to engage in radio amateur activities, the conditions of these activities, procedure and conditions of radio amateur permit issuing. RRT assigns call signs for individual and club radio amateur stations, filles, manages and protects the register of radio amateurs, referring to the Law on Personal Data Protection, continuously establishes information related with these activities. At present there are 832 individual amateur radio stations and 17 radio amateur clubs holding 918 valid permits in Lithuania. The radio amateur qualification examination commissions, formed by the order of the Director of RRT in operates in 5 major cities in Lithuania (Kaunas, Klaipėda, Panevėžys, Šiauliai and Vilnius) which, according to the prepared and approved questions of level B and A examine the persons, wishing to engage in radio amateur activities and radio amateurs, wishing to obtain higher class licenses for radio amateur activities (equivalents of the CEPT licence) and according to the Harmonised Amateur Radio Examinations Certificates (hereinafter referred to as HAREC), issued according to the CEPT Recommendation T/R 61-02. In 2012, 33 candidates provided their request to take the qualification examinations: 3 radio amateurs wishing to receive permit of higher (international) class and 30 wishing to become radio amateurs. 27 persons passed the examination successfully: 2 radio amateurs of higher A level and 25 candidates, wishing to become radio amateurs, including 6 persons, who took the examination of both levels, 3 candidates have not taken their examination yet. In 2012, 104 requests, received from radio amateurs, were examined, 50 official letters regarding examination or permit issuing were sent, 105 orders prepared: 83 regarding granting and/or withdrawal of permits for performing radio amateur activities, 1 regarding temporary permit for radio amateur activities, issued to a foreign citizen, 21 regarding granting and/or withdrawal of permit to use radio call sign. 111 permits were issued: 89 for the radio amateur activities (national permits of class B which were later changed, were issued until it was prepared for issuing of the new permit of class B of CEPT for performing radio amateur activities), 1 temporary licence for radio amateur activities, issued to a foreign citizen and 21 permit to use radio call signs. 24 HAREC were issued. 25 radio amateurs renewed their activities. 26 requests relating radio amateur activities were received and replies sent by e-mail. 33 new radio amateurs were registered (see Figure 52)
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70 60 59
50
40
Number of new RA
40
33
31
31
29 25
30
18
20 16 14 Number of renewed 10 RA 0
Figure 52. The dynamics of new and renewed radio amateurs (RA) in 2008–2012 Source: RRT
According to the data of 2012, there were 832 operating individual radio amateur stations in Lithuania. At present, in the radio amateur register there are 918 valid permits: 538 - for the radio amateur activities of Class A, 252 of class B and 20 new permits of CEPT for performing radio amateur activities, 108 licences to use radio call signs (see Figure 53).
1200
1088
889 918
1000
792
800
823
815
832 848 800 767 Number of call signs 600
400 Number of 200 radio amateurs 0
Figure 53. The change of number of radio amateurs and call signs assigned to them in 2008–2012 Source: RRT The Order No 1V-569 of the Director of RRT of 04 May, 2012 “On Amendment of the Order No. 1V-1070 of the Director of RRT of 2 December, 2005 “On Approval of the Description of Procedure for Granting the Right to Engage in a Radio Amateur Activities” (Official Gazette Valstybės Žinios 2012, No 54-2708) entered into force on 11 May, 2012. New licenses of B class were legalized by the aforementioned Order taking in consideration recommendation ECC/REC (05)06 of the Electronic Communications Committee of European Conference of Postal and Telecommunications Administrations “CEPT radio amateur licence” in Lithuania. Previously they were national licences, valid only in Lithuania. After approval of licence form and after preparation technically, CEPT radio amateur licences of new type were started to be issued, valid not only in Lithuania but also in other foreign countries implementing or accrediting CEPT recommendation ECC/REC
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(05)06 „CEPT radio amateur licence“, if this is compatible with legal acts of these foreign countries. Accordingly, holders of such licences, temporary staying in the Republic of Lithuania, have the right to engage in radio amateur activities under the requirements determined for holders of licences of class B and the description of procedure for granting the right to engage in radio amateur activities. This amendment ensured the possibility to radio amateurs of class B to work on ether even then they are abroad. RRT maintains close relations with the social organizations, uniting Lithuania’s radio amateurs – Lithuanian Radio Amateur Society and Lithuanian Radio Sports Federation try to consider individual needs of each radio amateur. All the necessary information regarding radio call signs assigned to radio amateurs, time period of validity of licences, the information on the new legal acts regulating radio amateur activities and the relevant legal acts and other relevant information is published by RRT on its website at www.rrt.lt in the section “Electronic communications – For consumers – For radio amateur”. In case of misunderstandings or non- standard situations, radio amateurs are consulted additionally. The increasing number of radio amateurs, large quantity of the received applications, interest in radio amateur activities suggests that RRT is capable to ensure beneficial conditions to perform such activities and services provided are efficient and of high quality.
Radio spectrum monitoring
Radio spectrum monitoring is performed in order to supervise how the legal acts regulating radio communication are followed. In 2012 RRT continued performing its functions in the area, i.e. measurements of occupation of radio frequencies, electromagnetic strength of the radiated signals and their parameters, searching for radio frequencies, used without authorization and their users, etc. In order to ensure the quality of the broadcasted programmes and to avoid potential radio interference from the frequency modulation radio programmes broadcasting stations, the parameters of the signals, radiated by such stations, were periodically measured throughout Lithuania in 2012. 1 004 measurements of one of the most important parameter, i.e. radio frequency deviation were performed. In 4.6 per cent of all the cases incompliance of the signal norms with the applicable technical requirements was established. The statistics of results of radio frequency deviation measurement in 2009-2012 is shown in Figure 54. When analysing and comparing rates of 2012 with 2011, a slight increase in number of violations in noticed. This is the result of continuous and focused work performed by RRT in this sphere. All the violations of radio frequency norms were eliminated. In one case economic sanction was imposed.
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2012 95.4% 4.6%
2011 95.9% 4.1%
2010 92.1% 7.9%
2009 90.0% 10.0%
0% 20% 40% 60% 80% 100%
No violations Determined violations
Figure 54. The statistics of results of radio frequency deviation measurement in 2009–2012, per cent Source: RRT
For the purpose of protecting the frequencies users’ interests, the search for radio frequencies used in an unauthorized manner and their users was continuously performed. 51 case of unauthorized use was identified in 2012 (see Figure 55). In 45 cases unauthorized usage was stopped after written notification. In one case unauthorized usage was stopped when it was failed to determine the user. In the remaining cases the investigation is continued. In majority, the unauthorized usage of relay stations of public mobile communication operators was determined in frequencies over 1000 MHz. All of this was performed using mobile RRT radio spectrum monitoring stations.
160
116 120
85 80 51
40 32
0 2009 m. 2010 m. 2011 m. 2012 m.
Figure 55. The statistics of the cases of unauthorized use of radio frequencies in 2009–2012, units Source: RRT
Inspection of radiocommunication networks and stations
The inspection of radiocommunication networks and stations is performed in order to ensure the electromagnetic compatibility and prevent radio interferences. During the inspection the observance of the conditions of use of radio frequencies, established in the project and the licence issued by RRT is verified.
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In 2012, 167 inspections of operating and 54 newly used internal radiocommunication networks as well as 24 planned and 22 inspections of new radio and television programmes broadcasting stations were performed. Figure 56 shows the relation of the internal radiocommunication networks (a) and radio and television (RTV) broadcasting stations (b), in which violations were noted, to all the inspected networks and stations.
2012 79.2% 20.8% 2012 89.1% 10.9%
2011 60.4% 39.6% 2011 84.2% 15.8%
2010 80.0% 20.0% 2010 65.0% 35.0%
2009 2009 81.7% 18.3% 96.4% 3,6% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Incompliances not established Incompliances not established Established incompliances Established incompliances a) Internal radiocommunication networks b) RTV broadcasting stations
Figure 56. The established cases of incompliance with the project and/or the conditions, stated in the licence in 2009–2012, per cent Source: RRT
When inspecting the internal radiocommunication networks, 46 violations were established, in cases of radio and television programmes broadcasting stations 5 violations were found. The most frequent violation in internal radiocommunication networks was the excessive ERP (45 per cent). Distribution of the determined violations in internal radiocommunication networks is shown in Figure 57. All the established incompliances were eliminated. When inspecting radio broadcasting stations, in one case it was determined that antenna is set inappropriately, in three cases stations were installed in forbidden locations.
Inappropriately installed antenna 10.0% Unauthorized ERP 45.0% Station installed in forbidden location 10.0%
Not all networks stations registered 7.5%
Forbidden radio frequencies used 27.5% Figure 57. The violations, established in internal radiocommunication networks in 2012, per cent Source: RRT
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Radiocommunication equipment
RRT, like other EU institutions, controlling radio frequency spectrum resources, evaluates the compliance of the radiocommunication interface of radiocommunication equipment and devices of Class 2, operated in the non-harmonised EU radio frequency bands with the conditions for use of radio frequencies/channels in the Republic of Lithuania prior to the provision of the equipment to the market. When evaluating the compliance of the radiocommunication equipment interface as it is determined in the Directive 1999/5/EC of the European Parliament and the Council of 9 March, 1999 on radio equipment and telecommunications terminal equipment and the mutual recognition of their conformity (hereinafter referred to as the Directive 1999/5/EC), the conditions of use of radiocomunication equipment, established by the manufacturer, are controlled for compliance with the radio frequencies/channels use plans in the Republic of Lithuania by evaluating the electromagnetic compatibility prospects as regards the use of the existing radiocommunication systems with the radiocommunication equipment to be used. The radiocommunication equipment is also controlled to see if it ensures efficient use of the frequency spectrum intended for terrestrial and/or spatial and satellite communication and the orbital resources as well as for the avoidance of harmful interference. The manufacturer of radiocommunication equipment or a telecommunications terminal equipment unit or its authorized representative must evaluate whether the unit complies with the essential requirements provided in the Directive 1999/5/EC prior to the provision of the unit to the market. In situations where RRT establishes that the radiocommunication equipment interfaces fail to comply or do not fully comply with the conditions for the use of radio frequencies in Lithuania, RRT notifies the relevant parties, who provided notifications of the issue, in writing and requires to include relevant information into the user manual of the radiocommunication unit in order to inform the user on the restrictions, if any, of the equipment use (certain technical parameters, geographical location etc. can be limited), provided limitations are established In 2012, 1007 notifications of the provision of equipment of Class 2 to the market were received (1032 in 2011). All the received notifications were investigated and the replies regarding the possibilities of equipment provision to the market and conditions for equipment usage in Lithuania were forwarded to the equipment providers: only in 9 cases (0.9 per cent of all the received notifications) the relevant parties were informed that the equipment was prohibited to use in Lithuania, in 240 cases (23.8 per cent) the providers were informed about the requirements for partial restriction of equipment use in Lithuania, in other cases (75.3 per cent) no restrictions on use were imposed. The verification, performed by RRT ensures that the consumers on the Lithuanian market purchase equipment, compliant with the EU requirements and obtain the relevant information on the specifics of use of the radiocommunication equipment in due time.
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Management of other resources
Management of telephone numbers
RRT performed supervision of the National Numbering Plan and assigned telephone numbers. Compared to 2011, the total number of assigned telephone numbers grew in 2012. The summary of the issued/revoked licences to use telephone numbers is presented in Table 11.
Table 11. The summary of the permits to use telephone numbers, issued/revoked in 2012 The right granted The right cancelled The total number of The purpose of numbers (numbers (numbers refused) numbers, assigned assigned)
The 10XX short numbers 1 1 21
The 18XX short numbers 3 8 52
The 19XXX short numbers 3 16 27
The 15XXX short numbers 1 0 3
The public fixed telephone service 109567 71092 1092575 numbers The public mobile telephone service 20078 544105 7093833 numbers
Service numbers 7XX XXXXX 12158 10150 19211
Service numbers 8XX XXXXX 2107 8 6992
Service numbers 9XX XXXXX 4306 397 27545 Source: RRT
RRT has assigned three numbers from the five numbers for harmonised services of social value: . In 2012, short telephone number 116000 assigned to the non-governmental organisation Missing Persons' Families Support Centre, intended for helpline messages regarding missing children; . Short telephone number 116111 to the State Child Rights Protection and Adoption Service under the Ministry of Social Security and Labour for launching a helpline, intended to provide assistance to the children lacking care and security; . Short telephone number 116123 (psychological help) to the Association of Telephone Psychological Help Services of Lithuania. In 2012 RRT announced tenders for the assignment of numbers 116006 and 116117; however, no applications were received. RRT repeatedly announces the tenders for assignment of the numbers for harmonised services of social value not later than after one year.
Management of network identifiers
In 2012, the following Rules for assignment and usage of numbers were amended: international signalling point codes, national signalling point codes, public mobile telecommunication codes, public data communication identifier codes, original network identifier codes, network identifier codes, service identifier
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codes and identifier numbers of payment cards issued by service providers. The aim of amendment of the aforementioned is to regulate the usage of identifier codes of Digital terrestrial television transmission networks and services and to coordinate provision of legal act with provisions of the Law on Electronic Communication. Codes used for identifying services provided over Digital terrestrial television transmission networks on national level are regulated by technical documents prepared by international standardizing bodies (European Telecommunications Standards Institute – ETSI), the European Committee for Electrotechnical Standardisation (CENELEC) together with the European Broadcasting Union (EBU). Identifier codes of Digital terrestrial television transmission networks and services provided over them are used in operated Digital terrestrial television transmission networks. The usage of codes should be coordinated also on international level, for the same codes (their blocks) would not be used in neighbour countries. Assignment and usage of identifier codes of Digital terrestrial television transmission networks and services provided over them are regulated by requirements in order to avoid usage of the same identifier code of Digital terrestrial television transmission networks and services by several broadcasters and in order to ensure qualitative provision of Digital terrestrial television programmes and additional information accompanying. In 2012 in total the following identifiers were assigned: . 29 international signalling point codes; . 6 public mobile telecommunication codes; . 2 public data communication identifier codes; . 33 number portability service identifiers; . 103 national signalling point codes; . 8 identifier codes of Digital terrestrial television transmission networks and services
Internet addresses
RRT is authorized to issue permissions regarding the use of the name of Lithuania before the top-level domain ".lt". The authorizations provided to RRT ensure that the name of Lithuania is used in an appropriate manner and encourages a proper representation of Lithuania on the Internet. The name of Lithuania is the official long or short name of the state of Lithuania, i.e. "the Republic of Lithuania" or "Lithuania" in all the official languages of the EU Member States and in all the grammatical forms of the said languages (for instance, manolietuva.lt, lietuvosrespublika.lt). Licences are issued for unlimited time and the procedure of issuing is very simple. Applicants should address RRT with application where besides other information, arguments for usage of the name of Lithuania in domain name should be included. If the application corresponds all the indicated requirements, RRT issues the licence in 5 working days. In 2012 RRT issued 27 licences (24 in 2011, 36 in 2010, 6 in 2009) granting the right to the persons, specified in the record, to use the name of Lithuania in the second level domain name before the top-level domain “lt” and revoked 2 licences that had been issued previously.
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INTEGRATION INTO DECISION MAKING SYSTEM IN THE EU AND INTERNATIONAL REGULATORY SPACE
Activities in EU institutions
On 14 March, 2012, the European Parliament and the Council adopted the Decision No. 243/2012/EU determining RSPP. Political trends and objectives indicated in the aforementioned decision are necessary in order to plan and coordinate the usage of radio spectrum strategically. One of the main objectives of RSPP is to make available more radio spectrum for wireless broadband communication services and to free up sufficient spectrum in cost-efficient bands. RRT participated in the process of considering the proposal for the decision and provided expert opinion. In October, 2012, the European Commission provided a proposal for a Directive of the European Parliament and of the Council on the harmonisation of the laws of the Member States relating to relating to the making available on the market of radio equipment. The aim of the proposal is to amend the existing system of telecommunication terminal equipment placing on the market, free movement and usage in the EU determined by Directive 1999/5/EC. Directive 1999/5/EC is amended after the following problems were identified by the European Commission: low compliance level of radio equipment and telecommunication terminal equipment in the market, different treatment of some provisions of the Directive, legal uncertainty due to the complexity of the Directive, unsuitable provisions of the Directive for the innovative equipment. It is anticipated that the suggested proposal shall eliminate the existing deficiencies of the Directive of 1999 and shall adjust the provisions with provisions of legal acts directly applicable in the EU. RRT prepared the position of Lithuania regarding this proposal. Consistent analysis of this proposal shall be performed in 2013. In 2012 RRT analysed and provided an opinion regarding the following documents discussed by the working party of the Council of the European Union on Telecommunications and Information Society: – Proposal of the European Parliament and of the Council for electronic identification and trust services for electronic transactions in the internal market. By the legal framework – the regulation of the European Parliament and of the Council on electronic identification and trust services for electronic transactions it is aimed to enable secure and seamless electronic transactions between businesses, citizens and administrations, thereby increasing the effectiveness of public and private electronic services, e-business and e-commerce in the EU. In 2012, a representative of RRT participated in the meeting of the working party of the Council of the European Union on Telecommunications and Information Society where the aforementioned proposal for the regulation was discussed. – Regulation (EU) No 531/2012 of the European Parliament and of the Council on roaming on public mobile communications networks within the Union which entered into force on 13 June, 2012. This Regulation introduces a common approach to ensuring that users of public mobile communications networks when travelling within the Community do not pay excessive prices for Community-wide roaming services in comparison with competitive national prices, when making calls and receiving calls, when sending and receiving SMS messages and when using packet switched data communication services, thereby contributing to the smooth functioning of the internal market. RRT | 109
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– Communication from the commission to the European Parliament, the Council, The European Economic and Social Committee and the Committee of the Regions “Promoting the shared use of radio spectrum resources in the internal market”. To foster the development of wireless innovations in the EU, it is necessary to continuously improve the opportunities for harmonised spectrum access in both licence-exempt bands and licensed spectrum and to establish new tools for more shared use of radio spectrum resources in the internal market. European Commission's communications are important thus the provisions determined and discussed during the aforementioned become the basis of the new legal acts. In 2012, in the meetings of Technical harmonization working groups of EU Council the proposal of European Parliament and the Council on the approximation of laws of the Member States relating to electromagnetic compatibility was discussed. RRT representatives participated in the discussions regarding this proposal which determines the requirements for equipment electromagnetic compatibility, evaluation of device correspondence and issues relating provision of technical equipment into the market. In 2012 RRT harmonized 53 positions prepared by institutions of the Republic of Lithuania regarding issues discussed in EU (for example regarding EU Standardisation, Cloud computing, radio spectrum, e. signature, data protection, representing of EU in WCIT conference etc.). In 2012 RRT actively participated in activities of Radio Spectrum Committee (RSCOM) and Radio Spectrum Policy Group (RSPG). Issues relating radio communication management harmonisation in EU were discussed. RSPG prepares the conclusions regarding the relevant issues relating to management and use of radio frequencies which, prior to their forwarding to the Commission, are broadly discussed with all the users of radio frequencies. In 2012 considerable attention was devoted to wireless broadband radiocommunication, radio spectrum of common usage, management of radio interferences and coordination of EU radio spectrum usage, In 2012 RSPG prepared and approved the following conclusions and reports regarding: – supervision of radio spectrum usage; – economic and social value of radio spectrum radio; – the assistance of the EU in bipartite negotiations with the third countries and between the EU Member States. The latter document is especially relevant to Lithuania as an EU borderline state, for the document consolidates the provision that the Member States must first of all execute bipartite negotiations with the third countries on the CEPT and ITU level, and only in case where it is impossible to reach the desired results, there is a possibility to apply to the European Commission regarding assistance on the political level. In Radio Spectrum Committee decisions regarding the following were approved: 169 MHz frequency band, harmonized usage of short-range devices, usage of 2 GHz coupled radio frequency band for technically neutral terrestrial systems; radio spectrum policy programme section regarding inventory of radio spectrum in EU and mandate CEPT regarding usage of 700 MHz for mobile service were also started to be analysed. In 2012 representative of RRT participated in the meetings of the Communications Committee of the European Commission (COCOM), during which the following was discussed: the draft “On implementation of separate sale of regulated retail roaming services”, Recommendations regarding non-discrimination obligations RRT | 110
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and cost accounting methods in order to promote competition and investments into broadband communication environment, Recommendation regarding notification procedures under Article 22(3) of the Universal Service Directive, initiatives of the European Commission regarding net neutrality, reduction of infrastructure laying costs and other issues relevant to electronic communication sector. In 2012 RRT representative continued participation in the meetings of the technical working group regarding the Directive 2006/123/EC of the European Parliament and the Council of 12 December, 2006 on implementation of services in the internal market, during which issues regarding adapting of Trusted lists when performing procedures determined in this directive by electronic measures were discussed. RRT representatives participated in the meeting of the Postal Directive Committee in Brussels, where the following issues were discussed: transposing of Postal Directive 2008/6/EC into the national legislation, definition of services of general economic interest, the main proposals of 25th Universal Postal Union (hereinafter referred to as UPU) Congress. It was stressed that the Member States are free to determine what services to attribute to services of general economic interest, only it is very important that they are defined in national legal act and their servicing territory, duration, loss compensation conditions and procedure of tender for provider appointment are defined. When UPU issues were discussed it was stressed that there is a necessity to make customs requirements for postal parcels more stringent and to revise customs procedure exceptions applied for postal parcels.
The body of European Regulators for Electronic Communications (BEREC)
RRT together with national institutions of other EU Member States regulating electronic communications participates in the Body of European Regulators for Electronic Communications (hereinafter referred to as BEREC) and the Independent Regulatory Group (hereinafter referred to as IRG) which includes also regulatory institutions of the European Free Trade Association and candidate countries for accession to the EU. The work of REREC is significant for regulatory institutions jointly solve issues of practical installation of EU directives, develop and disseminate regulatory best practices, common approaches, methodologies or guidelines on the implementation of the EU regulatory framework, provide opinion on the European Commission decisions, recommendation projects, share experience regarding competition promoting in the market, protection of consumers' interests and similar. BEREC analyses the issues regarding international roaming services, regulation of networks of new generation, methods of determination of costs of regulated electronic communication services, network neutrality, protection of consumers' interests and similar. In 2012 RRT representative actively participated in BEREC working group when solving issue of services quality and was the organizer of the project on guidelines for service quality in network neutrality context. Documents prepared in BEREC working groups regarding regulation aspects of electronic communication sector, after consultations are approved in plenary conference where heads of national regulatory institutions of electronic communications of EU countries participate. In 2012 BEREC approved the following documents:
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– Opinion on the European Commission guidelines relating the State aid project (BoR (12) 91). These European Commission guidelines explain and form legal basis for EU Member States to consult with EU national regulatory institutions when in EU countries State aid is appointed to the projects related with broadband communication development. – Overall BEREC opinions regarding wholesale local line access and wholesale broadband communication access and wholesale leased line (BoR (12) 126, 127,128). Overall BEREC positions make possibility to the EU national regulatory institutions to apply the most efficient measures when in national markets significant competition is not ensured (in accordance with the regulation objectives of electronic communication networks and services). – BEREC guidelines regarding application of Article 3 of the Roaming Regulation (BoR (12)100), which determine that EU national regulatory institutions should determine uniform conditions for mobile communication operators in order to negotiate regarding wholesale access to roaming products. – Head of BEREC regarding service quality (BoR (12) 131), the objective of which is to solve situations when Internet service providers fail to retain Internet communication quality (of all or certain services) regulated in the agreement as a result of an act or omission. It is determined that if the EU national regulatory institutions decides to apply service quality requirements under the determined conditions, both BEREC and the European Commission would be notified. – Position regarding proposals of the European Telecommunications Network Operators' Association (ETNO) relating taxation of connection of Internet networks in accordance with the “country broadcasting Internet flow over network pays“ principle to gain results from investment into broadband communication networks. By proposal of ETNO the aforementioned principle and the possibility to differentiate according to service quality should be determined in the International Telecommunications Regulations (hereinafter referred to as – ITR). On opinion of BEREC the Internet developed well without any interference, therefore, the nature of services provided over network and taxation modules applied for the Internet services should remain an object of commercial agreement; and proposals of ETNO could violate development principles of open, dynamic, global Internet and could interfere with access to content, increase digital exclusion. The existing Internet model made background for the essential Internet network connection investments, variety of content. BEREC position is established prior to the World Conference on International Telecommunications (WCIT-12) of ITU. RRT supported BEREC position.
European Regulators Group for Post (ERGP)
The objective of ERGP established by the European Commission Decision 2010/C217/07, is shaping the best practice of regulation of postal market in Europe and exchanging such practice. ERGP consists of representatives of national post regulatory authorities of 27 EU Member States and the European Free Trade Association. During the third Plenary Meeting of ERGP, held on 22 November, 2012 in Stockholm it was decided to establish four reports prepared by ERGP working groups: Service Quality and End Users Satisfaction, Complain Management, Market Indicators Methodology and Access to Postal Network and its Elements. It was decided to RRT | 112
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publicly establish two documents until 29 November, 2012: rules for application of VAT exemptions in postal sector and universal postal service net costs, and costs allocation. RRT representatives participated in preparation of the aforementioned documents, provided comments and suggestions during the meetings of workings groups. In 2012 the European Commission arranged 2 meetings of ERGP Contact Network in Brussels, during which the activities of five ERGP working groups were presented and it was prepared for plenary meeting. The ERGP Cost Accounting and Tariff Regulation Group, according to the information, provided by independent regulatory authorities of the Member States, prepared a comprehensive report for public consultation. The analysis performed by the working group showed that national regulatory institutions differ in their functions and resources, therefore, it is complicated to make summarizing for all EU countries and to agree on common positions. Due to different approach on an ambiguous concept it is complicated to compare indexes of countries. There are also problems regarding data confidentiality and level of their delivery detailness for cost accounting data is especially sensitive and many operators request complete confidentiality. Issues discussed in ERGP Universal Postal Service Net Cost / Vat Exemptions Group are relevant to all national regulatory institutions for when implementing provisions of the Directive 2008/6/EC, regulatory institutions become obligated to determine net cost calculation methodology and to install mechanism. Therefore, it is very important to share experience and practice between EU countries in order to ensure financing of universal services. In 2012 the working group prepared the draft on application of VAT Exemptions in postal sector and its influence on universal postal service net costs and presented for public consultation. In the draft of the report, different practice of countries applying VAT exemptions in postal sector and their influence on universal postal service net costs were analysed. RRT representative was one of the main organizers of the latter draft project. The ERGP End Users Satisfaction and Market Development Surveillance Group ERGP prepared a document regarding service quality and end user satisfaction and a document regarding complaint management procedures and evaluation of user protection. The ERGP Access Regulation Group prepared in detail report summarizing the practice of the EU Member States as regards legal, economic and technical access aspects of regulation and documents regarding access to postal network and postal infrastructure elements. It was decided that the regulation of access in the EU may not be a unified system, providing only one regulatory model. The ERGP International Postal Items Group prepared the report on postal item delivery. One of the tasks of this group is to identify the reasons of significant difference between the prices of domestic and international postal items within the EU.
Cooperation with national regulatory authorities
The Nordic-Baltic dimension of cooperation
In 2012, Lithuania coordinated cooperation agenda NB8, relating to that RRT organized two electronic communication regulation events of NB8 format in Lithuania.
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Issues of service quality of networks neutrality and the Internet access become more relevant in regard rapid development of modern electronic communication networks in the Nordic-Baltic countries and the increase of the number of the Internet users and data flow transmission over networks. In order to discuss these issues RRT organized the Conference of national regulatory institutions of the Nordic-Baltic countries in Vilnius on 29 September, 2012, during which issues regarding neutrality of networks, the Internet access quality and user protection were discussed. The aim of this conference is to exchange information, share the latest good practices, and discuss issues relevant in electronic communication sector when cooperating with the Nordic- Baltic national regulatory institution representatives. In the meeting statements and discussions on the aforementioned issues were made by committee members of Latvian public infrastructures, heads of communication regulatory institutions of Estonia, Lithuania, Sweden, Norway, Denmark, representatives of Lithuanian operators, General Director of FTTH Council, experts of CEPT European Communication Bureau ad IBM Lietuva. The participants stressed the relevancy of the open Internet, user awareness regarding the offered Internet access services and noted that data flow management may be a good measure for network operation optimization. Relevancy of competition and transparency when providing Internet access services was also stressed, experience relating measurement of service quality was shared. Continuing tradition of NB8 to organize meetings for the Nordic-Baltic countries on relevant issues, RRT organized a seminar cooperating with the Ministry of Foreign Affairs of the Republic of Lithuania and the Ministry of Transport of the Republic of Lithuania on the issue “Practical aspects of usage of electronic signature and electronic documents in digital united market” in September 2012, in Vilnius. About 50 representatives of public administration institutions of NB8 countries the activities of which relate to regulation and installation of electronic signature and electronic document area, participated in this seminar. This aim of this seminar was to discuss the following: the role of electronic signature and electronic document in digital internal market, cross- border interaction of electronic document in NB8 countries and to share experience on the usage of electronic signature and document. Information presented and discussions made in this seminar shall govern closer cooperation of NB8 countries in sphere of electronic signature and electronic document. In this seminar NB8 representatives presented legal, organizational and technical solutions for development of national electronic signature and electronic document technologies. The change as regard to regulation of electronic signature provisions is unavoidable, therefore, it is necessary to look for common ground of NB8 and to promote influence of NB8 region. In this meeting it was also stressed that functional electronic services create more efficient interaction between public sector and the society. Participation in activities of the working group of the Nordic-Baltic national regulatory institution representatives was started in 2012; the change of statistical indexes in electronic communication sector in separate countries was presented and discussed, issues on establishment and determination of indexes were analysed. Further participation of RRT representatives in activities of this working group are planned in 2013.
The Eastern Partnership Programme On May, 2009, in the summit of the EU and the Eastern countries in Prague, the European Union Partnership programme was established. The aim of this programme is to form clear strategy of relation development with Eastern neighbours (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine) and to
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create conditions necessary for improvement of political and economic partner countries' integration towards EU. In order to facilitate and strengthen cooperation in electronic communication sector it was decided to establish regulatory institution group of electronic communication networks and services of Eastern Partnership Member States (hereinafter referred to as EaP). On 11 September, 2012, in Chisinau (the Republic of Moldova) EaP group was officially established and Memorandum of Understanding was signed. The objective of EaP group establishment was to improve cooperation between Eastern Partnership Member States and regulatory institutions of EU Member States, to help Eastern Partnership Member States to assimilate regulatory principles of electronic communication market of the EU Member States and to improve regulatory efficiency. During this project information regarding market surveillance shall be constantly exchanged, aiming at application of EU standards, legal base and best regulatory practice in Eastern Partnership Member States. In the opening address of RRT Director Feliksas Dobrovolskis expressed support and preparation to help EaP group.
Cooperation of Baltic regulators
On 30 August, 2012 RRT arranged annual meeting of representatives of electronic communication and postal regulatory institutions of Baltic States. Representatives of Estonian Competition Authority, Latvian Public Infrastructures Committee shared their experience relating electronic communication and postal market regulation, discussed market development trends, regulatory peculiarities. Baltic regulators dedicated significant attention to relevant issues of broadband communication infrastructure access. Problems relating e-communication network installation in apartment blocks and newly build houses, access to information relating the existing electronic communication infrastructure were discussed, possibilities to unbundle access in fibre networks were analysed. The representative of Lithuania stated the main problems relating common usage of the existing infrastructure and the construction of the new infrastructure, provided information relating amendments of adequate legal acts made in order to solve these problems (including technical requirements for installation of electronic communication infrastructure). Representatives of Lithuanian and Estonian regulators presented information relating works performed in their country regarding creating of the maps of the infrastructure of access to digital electronic communication. In the meeting the following issues the discussed: topic issues of researches on of the regulated markets on European level, procedures and problems relating evaluation of researches performed and obligations imposed in European Commission and in BEREC expert working groups, planned actions by countries in order to implement Recommendation No. 2009/396/EC of European Commission of 7 May, 2009 “On the regulatory treatment of fixed and mobile termination rates in the EU”. Representatives of Lithuania presented currently implemented project BU-LRAIC for determination of accounting modules for mobile telecommunication operators’ networks. The Member States shared experiences on how and on what level they transposed the Recommendation No. 2010/572/EU of the European Commission of 20 September, 2010 “On regulated access to Next Generation Access Networks (NGA)”. In the meeting representatives of Estonia, Latvia and Lithuania discussed on the issues of postal market liberalization, preparation of legal acts transposing provisions of the Directive 2008/6/EC, stressing the importance of universal postal services financing. Representatives of Lithuania raised an issue relating loss RRT | 115
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financing from State Budget, the problems relating its practical implementation and legal regulation. Postal market development trends, stressing specifics of regulation of the new postal services under liberal market conditions, were also discussed in the meeting, advantages of public postal network optimization were introduced, observations relating issues on protection of user rights and market surveillance were shared.
Bilateral institutional cooperation
In order to develop bilateral institutional cooperation the Director of RRT Feliksas Dobrovolskis and the Director of National Regulatory Agency for Electronic Communications and Information Technology of the Republic of Moldova Sergiu Sitnic signed a Memorandum of Understanding on cooperation and information Exchange in scope of electronic communication on 11 September, 2012, in Chisinau. The main objective of this Memorandum of Understanding is to cooperate and Exchange information in scope of electronic communication regulation and surveillance. It is anticipated to promote competition and to ensure end user interests through the best EU and international practice. In 2012 RRT signed cooperation agreement with National Computer Emergency Response Team under the Transport Ministry of the Republic of Kazakhstan (KZ-CERT). The parties in order to strengthen protection of information systems and electronic communication networks from cyber-attacks and to increase the level of protection of internal and international information infrastructure of significant importance shall cooperate when analysing international cyber incidents and shall exchange experience relating the aforementioned. These agreement are not the first to be signed by RRT: in 2007 RRT signed an agreement with Agency of the Republic of Uzbekistan for Informatization and Communication, in 2011 – Memorandum of Cooperation with Georgia regulatory institution and State communication agency of the Republic Kirghizstan.
Administrative cooperation of EU supervision institutions
In the meeting of the working group relating the Directive of electromagnetic compatibility of EU countries which took place on 9-10 May, 2012 in Brussels it was determined to start a common surveillance company of electromagnetic compatibility of EU countries from 1 September, 2012. RRT actively participate in common companies of electromagnetic compatibility of EU countries. RRT representative was appointed to be the main coordinator of the aforementioned company, responsible for preparation of common report of EU countries. It is the fifth company commonly implemented by the EU countries under the Directive of electromagnetic compatibility. The objective of these companies is to control if electric of electronic devices provided in the EU market comply with the essential requirements of electromagnetic compatibility and to protect both electronic communication networks and users from products of poor quality, also to improve cooperation between the EU countries. During this company energy sources for laptops or tablets, e-book readers and similar equipment on market of European Economic Area were investigated.
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The European Conference of Postal and Telecommunications Administrations (CEPT)
CEPT is a regional organization joining 48 communications administrations of the European countries the objective of which is to develop dynamic European telecommunication and postal sector. CEPT strives to ensure compatibility and integrity of radiocommunication systems and telecommunications regulatory regime throughout Europe, to prepare common position on significant telecommunication and postal issues in international organizations, to create European positions when preparing for International Telecommunication Union conferences – World Radiocommunication Conference, World Conference on International Telecommunications, where amendments of Radio Communication Regulation and IRT having significant influence to telecommunication regulation etc., are made. When performing its activities CEPT cooperates with the European Commission regarding radiocommunication management, telecommunication and postal area, performs expert research and feasibility studies on the implementation of new technology. In 2012 RRT representatives participated in 3 meetings of the following CEPT committees – Electronic Communications Committee (hereinafter referred to as ECC), the European Committee for Postal Regulation (hereinafter referred to as CERP) and the Committee for the ITU Policy (hereinafter referred to as Com ITU), as well as the main working groups under the said committees. Representatives of RRT took positions of chairman and deputy chairman in 2 CEPT bodies: chaired in CEPT ECC Project Team of Technical Regulation and Interconnection Standards and was a deputy chairman in Com ITU committee. Com ITU committee prepared Europe’s position for ITU Council and working groups, major attention was devoted to ITR surveillance, World Conference on International Telecommunications of 2012, also prepared Europe‘s proposal regarding international roaming, avoidance of double taxation for roaming, taxation of roaming services and accounting, prevention of number abuse, determination of international call line, network resistance and other issues. In the Project Team of CEPT ECC Technical Regulation and Interconnection Standards major attention was devoted to the quality of the Internet access services. RRT representative was one of the main organizer of ECC draft report regarding the Internet access service quality surveillance. Planning of usage of radio frequency coordinated on European level and other various radio spectrum management problems were solved in CEPT ECC and its working groups. CEPT ECC meeting was arranged in 2012 in Vilnius. In this meeting the following was performed: WRC-12 results were evaluated, decision regarding usage of the coordinated radio spectrum in 1920-1980 MHz and 2110-2170 MHZ radio frequency bands in mobile and fixed radiocommunication networks were made. The decision regarding 1920-1980 MHz shall allow installation of 4G technologies in Europe under the coordinated conditions and to use radio spectrum resources, when providing electronic communication services, more efficiently. Decision regarding coordinated usage of 1610-1626.5 MHz and 2483.5-2500 MHz radio frequency bands in mobile satellite service systems was made. During the meeting the draft of CEPT report to European Commission regarding usage of mobile communication in aircrafts was adopted, other radio communication sector issues were also discussed. In 2012 in Radio Frequencies Management Working Group of CEPT ECC (RRT representative also participated) perspectives of long-term radio frequency usage in European countries were discussed - tables of radio frequency usage in Europe were prepared, drafts of ECC decisions regarding usage conditions of certain
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radio frequency bands (under which national usage conditions of radio frequency bands are arranged) were prepared, recommendation documents relating coordination of radio frequency assignment prepared. In 2012 in the meetings of this working group most frequently analysed issues were related with allocation of the new radio frequency bands to various radio frequency systems and technologies and other issues relating coordination of radio frequency usage in European countries, it was also actively sought for appropriate radio frequency bands for public security and accident warning, and direct radio communication between a plain and Earth system. Research on usage possibilities of 1452–1492 MHz radio frequency band was further performed, for this radio frequency band is not used for purposes determined in Radio Communication Regulation –digital radio programme broadcasting in major part of the European countries. Major interest and support of Lithuania was dedicated to WGFM decision to renew discussions regarding coordination of usage of 2300–2400 MHz radio frequency band in the CEPT countries: on the initiative of communication administrations of Ireland, Czech Republic, Denmark, Estonia, Lithuania, Sweden, Russian Federation and Ukraine, a separate ECC decision shall be prepared on the usage of this radio frequency band for mobile wireless technologies. In 2012, RRT representatives also participated in other CEPT ECC working groups. The objective of the Numbering and Networks Working Group is to ensure transparent and non-discriminating possibility to use numbering resources and to ensure its simple usage and efficient management. In order to ensure numbering resources for communication networks of the new technology, the following relevant issues relating regulation were analysed: voice transmission over data transmission network using the Internet protocol, usage of premium rate numbers and harmonized European short numbers, interconnection of telecommunication number with other electronic communication data of the person, assurance of number resources for number-to-number (M2M) etc.
The International Telecommunication Union (ITU)
ITU is one of the oldest international organizations within a membership of 193 countries, including Lithuania. ITU activities cover all aspect of telecommunication: from determination of standards regarding which efficient interaction between systems and equipment is ensured worldwide to fastly growing wireless communication network operation description and development of telecommunication infrastructure in the developing world. ITU organization determines distribution and usage of significant limited resource worldwide – radio frequency. In 2012 significant International event of radio sector – the World Radiocommunication Conference WRC-12 was held in Geneva in which RRT representatives also participated. In the World Radiocommunication Conference decisions regulating radio communication management are made, the main radiocommunication development trends and guidelines are determined, recommendations allowing more efficient usage of radio frequency are adopted, decisions on amendment and replacement of Articles regarding ITU Radiocommunication Regulation the provisions of which are obligated to be followed by ITU members, including Lithuania are made. WRC-12 decisions influence almost all terrestrial and satellite radiocommunication services: mobile communication, air navigation and communication systems, satellite and meteorological services, see navigation, digital broadcasting etc.
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During WRC-12 Lithuania gained the right to use 47-48.5 MHz and 56.5-68 radio frequency bands not only for broadcasting agency, but also to mobile radiocommunication agency by priority right. This has required a separate agreement with communication administration of Russian Federation and amendment of several clauses of the 5th Articles of the Radio Regulation, however, the result – a possibility to use all 47-68 MHz radio frequency band for mobile radiocommunication agency by priority right – was achieved. Discussions and decisions of WCR-12 of high importance to Lithuania were regarding of 790-862 MHz radio frequency band usage conditions (digital dividend). Lithuania, together with 6 other countries, prepared a document aiming at gaining the right to use the entire 790-862 MHz radio frequency band for mobile communication service by priority right, and also aiming at deleting the provision that in this radio frequency band “mobile radiocommunication stations of Poland and Lithuania cannot be used without agreement of Russian Federation and Belarus”. Both these objectives were reached. During the Conference significant pressure was sensed from representatives of Africa and Arabic countries regarding expanding of radio frequency band digital dividend – it was suggested to mobile communication service to allocate much wider (694-862 MHz) radio frequency band and also to reduce the quantity of radio frequency bands for transmission. In failure of CEPT countries to reject such suggestion, the issue of usage of 694-790 MHz radio frequency band by mobile communication service was relegated to the next World Radiocommunication Conference. 12 CEPT countries, including Lithuania, signed a separate declaration where it was stressed that this issue was not included in WRC-12 agenda on time and therefore, was not properly discussed and analysed and a compromise decision was adopted only due to respect of wish and input of interested parties. A document provided by Lithuania and other countries suggesting to discuss an issue regarding allocation of radio frequency band for nano and piko satellites during the World Radiocommunication Conference in 2015, should also be stressed. The characteristics of nano and piko satellites significantly vary from the usual well known satellites. Radio frequency bands necessary for the latter satellites are already determined. At present, many nano and piko satellites are created (more than 500). Radio frequencies allocated to satellite radio amateur and meteorological stations shall be used for operation of the latter satellites, however, because of fast growth of such satellites, the number of such satellites shall soon be not sufficient. This issue shall be included in the agenda of the World Radiocommunication Conference in 2015. An RRT employee representing the 2nd region in ITU Radiocommunication Management Board, participated in 3 meetings of the Management Board in 2012 and was elected to be responsible for presenting issues relating interferences caused by terrestrial networks. In the meeting of Radiocommunication Management Board issues relating disputes between countries regarding radio frequency distribution and usage were discussed. Disputes regarding arguable usage of satellite positions between Iran, France and Saudi Arabia were solved. Other issues regarding work procedures and amendment of the Radio Regulation determined for the World Radiocommunication Conference in 2015 were also discussed. In December, 2012 ITR was revised during ITU World Conference on International Telecommunications (WCIT-12) in Dubai. ITR adopted in 1988 promoted development of liberal, competitive telecommunication market and fast Internet development during the last decade. In the latter Conference European countries provided suggestions regarding ITR provisions promoting competitiveness in telecommunication market aiming RRT | 119
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at transparent roaming prices favourable to the customer and avoidance of double taxation for roaming etc; also regarding provisions promoting cooperation aiming at resistance of international telecommunication networks and respect of human rights. Lithuanian delegation, where RRT was also represented, together with associates from ITU countries, aimed at adaptation of ITR provisions corresponding challenges of today’s information technologies. Taking in consideration opinions of Lithuanian society, the Government of the Republic of Lithuania, the European Commission, the European Conference of Postal and Telecommunications Administrations and the decision of the Council of Europe, members of Lithuanian delegation reached at a compromise the aim of which was not to include Internet management and regulation issues in ITR. A part of European countries repeatedly provided suggestions regarding the Internet issue. In future it may have negative influence to neutral development of the Internet, human rights and freedom of speech. Lithuanian delegation together with other countries provided a document where it was suggested to repeatedly approve obligations of the Member States in scope of human rights. Lithuania, together with other EU Member States, USA, Canada, could not agree with the final ITR version that could violate balance of World Wide Web grounded on neutral and liberal management of the Internet when business and the Governments of the Member States cooperate on equal rights. Notwithstanding improvements in terms of decisions regarding other issues relating ITR telecommunications (access for disabled, roaming prices favourable to the customer etc.), Lithuania reserved its right to come back to process of ITR considering and approval. It should be noted, that ITR supervision results shall not influence the existing telecommunication activities in Lithuania, Internet neutrality and freedom of expression in the Internet.
The Universal Postal Union (UPU)
In September, 2012, in Doha the 25th UPU Congress was held. During the Congress documents regarding the reform of the UPU, postal regulation, development, economics, final settlement, the World postal strategy for 2013-2016 were approved, members of UPU management body were elected. During the Congress it was participated in forming positions, interests of the Republic of Lithuania were represented, documents and proposals of countries analysed, issues of RRT regarding postal safety, economics, finances and regulation were resolved. Countries of the world negotiated regarding final settlement for international postal services, discussed perspectives of the UPU reform. The Congress adopted the proposals to help Member States and their postal sectors to develop international sales while applying successful models and with regards the growth of e-sales in the market for parcels, to create new service of return of postal items, to ensure postal service work and development, to create favourable conditions for cooperation development in this area. It was also decided to continue works related with creation of draft of domain .post. Interinstitutional delegation of Lithuania also actively participated in the Congress. In 2012 RRT representative, together with experts from regulatory institution of Germany, participated in the 2nd expert mission to the Kingdom of Swaziland organized by UPU and CERP. The objective of this mission was to implement the tasks determined in Integrated plan of the postal reform and development of the Kingdom of Swaziland prepared by UPU. During the mission consultants provided representatives of the Ministry of Information, Communications and Technology and Postal and Telecommunication Corporation of Swaziland the RRT | 120
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prepared the draft policy of national postal sector of the Kingdom of Swaziland. The consultants also participated in policy forum of national postal sector, read reports and discussed on issues of implementation of postal sector policy. This mission is the first project arranged by UPU and CERP; experts of European regulatory agencies were invited in order to implement the tasks of the latter mission. In 2012 RRT representatives participated in the Plenary Session of the Postal Operator Service and Administration Service, in meetings of Commissions and working groups. During the UPU Administration Service Session issues on UPU reform, EU legal acts, universal postal service, settlement with end users were discussed. During the work of Parcel Committee of Postal Operator Service, the issue regarding inappropriate return of items of e-sale was raised; the Committee of Postal Correspondence discussed final accounting issues and relevant amendments of UPU Regulation and Convention, the Standard and Technology Committee stressed the significance of creating of addressing standards. During meetings of the Consultation Committee of Administration Service, innovations for making postal service activities more efficient when installing innovations and keeping up with electronic service development were discussed. The Development and Cooperation Committee stressed the significance of regional cooperation in 200-2012. Working group of UPU reform provided proposals regarding improvement of structure of the Administration Council and the Postal Operator Council.
The Forum of European Supervisory Authorities for Electronic Signatures (FESA)
FESA members are representatives of the institutions responsible for supervision of electronic signature, as indicated in the Directive 1999/93 EC of the Europe Parliament and the Council of 13 December, 1999 “On Regulation of Electronic Signature of the Community”. Currently FESA comprises of 25 EU States and Israel. The objective of FESA is to promote cooperation between institutions supervising electronic signature and to prepare common positions when cooperating with political and technical organizations. FESA members regularly meet twice a year, during these meetings information is shared and cooperation aspects discussed. On 17 October, 2012, RRT representative was elected to take position of FESA chairman. In 2012 it was participated in FESA meetings in Hungary and Albania where information regarding electronic signature supervision in Lithuania, implemented works related with FESA chairing was presented.
The International Association of Internet Hotlines INHOPE
INHOPE is the International Association of Internet Hotlines coordinating a network of Internet Hotlines all over the world. INHOPE was founded in 1999 and has grown to a network of 43 Hotlines in 37 countries across the globe. INHOPE supporting hotlines respond to reports of illegal content and aims at its elimination from the Internet as soon as possible. Major attention is devoted by INHOPE for prevention of sexual child abuse on the Internet.
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A hotline established by RRT is a member of the International Association INHOPE since May 2008. The membership in this association paves the way for closer cooperation with hotlines of other countries and facilitates information exchange in order to eliminate illegal or harmful content from cyberspace more efficiently. In 2012 RRT representatives participated in work of General Assemblies in April in London and in November in Amsterdam. It was also participated in the following: in Executive Board of INHOPE, in meeting of working groups of NetEx and Communications, hotline operator training in Amsterdam organized by INHOPE, in the meeting of INHOPE hotline representatives arranged in October, in Brussels a night before forum “Safer Internet”, Europe’s regional “Insafe” and INHOPE meeting in December in Brussels. In 2012 RRT representatives provided information for the organized INHOPE documents, statistics of hotline reports also were delivered.
The Internet Corporation for Assigned Names and Numbers (ICANN) and the Governmental Advisory Committee (GAC)
Internet Corporation for Assigned Names and Numbers (hereinafter referred to as – ICANN) is responsible for assurance of stability of the Internet activities, special attention is paid to promoting of competition in the Internet access. ICANN operates through cooperation between private and public sectors. One of the forms of cooperation between ICANN with the public sector is the Governmental Advisory Committee (hereinafter referred to as GAC), an advisory body to the Board of Directors. The main function of GAC is to advise public policy and individual governments on relevant issues. Within ICANN, GAC strives to represent the entire diversity of views and opinions and establish general principles for administration of existing domain names and assignment of the new ones. It also seeks to draw attention to the cultural differences and protection of copyright and consumers’ interests. GAC is open to government representatives of all countries. RRT representative represents Lithuania in the aforementioned. In June, 2012 a 44th meeting of ICANN took place in Prague where GAC representatives also participated. One of the most relevant issues analysed by ICANN in 2012 – appointment of the new gTLD. The process of gTLD allocation shall take place in 2013, therefore, it is important to supervise this process during which data allocation rules, procedures for inspecting complaints etc. are prepared. GAC also seeks to ensure that the receivers of gTLD do not use names of lower level which are protected by the Government.
Negotiations with communication administrations of neighbour countries
In 2012 RRT representatives participated in discussions relating the Memorandum regarding the decrease of tariffs for roaming between the Russian Federation and Lithuanian Administrations; the latter Memorandum was concluded by the Ministry of the Russian Federation for Communications and Information and the Ministry of Transport of the Republic of Lithuania and mobile communication operators of both countries on 15 May, 2012. The objective of this Memorandum is to ensure that users traveling in these countries do not pay excessive prices for Community-wide roaming services (when making calls and receiving calls, when sending and receiving SMS messages and when using packet switched data communication services).
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On June, 2012 RRT organized negotiations with representatives of Lithuania, Russian Federation, Belarus and Poland regarding international radio frequency coordination. Agreements with communication administrations of neighbour countries were signed regarding the criteria of common usage of specific radio frequency bands. The coordinated conditions of radio frequency use over broadband radiocommunication technologies, including radiocommunication technologies of the fourth generation (for instance LTE, WiMAX). Significant attention was dedicated to coordination of digital LTE radiocommunication stations, operating in 790- 862 MHz radio frequency band of digital dividend: several hundred radiocommunication stations were coordinated, specifications of radiocommunication station coordination procedures were determined, the next stage of LTE station coordination was agreed. These agreements shall make installation of radiocommunication systems of new technology in the allocated radio frequency bands more flexible and shall ensure more efficient issue of licence granting the right to use radio frequencies (channels) in 453–468 MHz, 790–862 MHz, 2300– 2400 MHz and 2500–2690 MHz radio frequency bands. During the negotiations the criteria of the following radio frequency bands were discussed: 790–862 MHz band. During the negotiations, discussion between representatives of communication administration of Lithuania and Russia took place. Lithuania presented the list of the planned stations in this band before the negotiations, and during the negotiations Russia presented its own calculation results which showed that about third part of stations do no comply with the conditions under the agreement signed in Moscow in 2011, therefore, the list of stations during the negotiations was revised ones more and the conformity was revalued under the conditions of the signed agreement. Stations which comply with criteria under the agreement were officially recognised as coordinated by communication administration of Russia. Annex to the agreement signed in Russia in 2011 with determined possibility to coordinated each station separately, was also prepared. In the Annex melodic and principles for calculations to be applied for all IMT stations in this band were determined in this Annex. This Annex to the agreement was not confirmed for the communication administration of the Russian Federation wanted to coordinate the calculation methods with various administrations prior to confirming them. 450–470 MHz band. Communication administration of Lithuania was aiming at agreement regarding conditions for usage of 452.100–457.475 MHz and 462.100–467.475 MHz radio frequency bands over broadband radiocommunication systems, including CDMA2000. Delegation of communication administration of the Russian Federation indicated that narrowband radiocommunication systems are used in 450–153 MHz and 460–463 MHz radio frequency bands and they are not planning to change them, therefore, during the negotiations with communication administration of the Russian Federation a compromise was reached and an agreement regarding the usage of 453.000–457.475 and 463.000–467.475 MHz radio frequency bands in the borders of terrestrial mobile radiocommunication services was signed. Under the agreement conditions for usage of these radio frequency bands when installing FDD broadband radiocommunication systems, including CDMA2000 systems, were determined. 2300–2400 MHz band. An agreement with communication administrations of Russia and Poland regarding common usage of 2300–2400 MHz radio frequency bands was signed. Delegations decided to apply technical principles described in Recommendation ECC/REC/(11)05 in these radio frequency bands. The decisions made herein shall in future simplify the procedures of international radio frequency coordination and RRT | 123
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shall ensure easer installation of radiocommunication systems of new technologies (including systems of the fourth generation) in this radio frequency band. 2500–2690 MHz band. Agreements signed with communication administrations of Russia, Poland and Belarus regarding common usage of 2500-2690 MHz radio frequency band by following technical principles described in the Recommendation ECC/REC/(11)05. The decisions made determine the procedures of coordination of international radio frequencies. 3400–3600 MHz band. Usage characteristics of 3400–3600 MHz radio frequency band in Lithuania and Russia were discussed. The usage and coordination of this band is complex regarding the usage of this radio frequency band by other services in Russia. It was decided to continue discuss the usage of this band in future. 5925–6425 MHz band. After discussions with representatives of communication administrations of Russia regarding the possibilities of use of this band for wireless access networks, potential texts of the agreement regarding the common use of this band. Delegation of communication administration of Lithuania hereby aims at implementation of equal access to 5925–6425 MHz radio frequency band for both countries. The approval of the final decision was complicated by the fact that this band is used by other services in Russia. During the negotiations relating international coordination with representatives of communication administration of Belarus on October, 2011 in Minsk, it was determined to perform revision of plan of priority channels in 3400–3800 MHz radio frequency band after an adequate decision of ECC regarding harmonization of this band (Decision ECC/DEC/(11)06 approved in December, 2011). Therefore, correspondence with communication administration of Belarus was renewed and bilateral agreement of new edition between communication administrations of Belarus and Lithuania was signed in 2012 regarding wireless broadband access stations usage in 3410–3800 MHz radio frequency band. This agreement shall simplify installation of radiocommunication systems of new technologies (described in the aforementioned decision) in frontier border.
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FINANCIAL STATEMENT
Table 12. RRT assets and liabilities Assets Funding amounts, liabilities, net assets
Indicator 31-12-2012(LTL thousand Indicator 31-12-2012 (LTL thousand)
Fixed assets 23 801.3 Funding amounts 399.8
Current assets 3 914.1 Liabilities 915.2
Net assets 26 400.4
Total: 27 715.4 Total: 27 715.4
Table 13. The revenues, received by RRT in 2012 for the services provided and works completed according to the Special Communications Management and Control Programme Revenues, 2012 RRT revenues groups No. LTL thousand Per cent Supervision of observance of the conditions for engaging 1. 98.00 0.58 in electronic communications activities Supervision of observance of the conditions for provision 2. of postal services and conditions for provision of courier 68.50 0.40 services Revenues from tenders and auctions for granting the 29.91 3. right to use radio frequencies/channels and telephone 0.18
numbers Issuance of licenses to use radio frequencies/channels, 9.18 4. telephone numbers, radio stations and issuance of 0.05
licenses for radio amateur activities Setting of conditions for use of radio 600.18 5. frequencies/channels and radio stations and the 3.52
conditions for engaging in radio amateur activities Supervision of radio frequencies/channels use, including 13 115.72 6. 77.04 monitoring
7. Supervision of telephone number use 2 859.68 16.80
Tests of radiocommunication equipment and telecommunications terminal equipment, tests of 8. 240.72 1.41 electromagnetic compatibility of apparatus and equipment 9. Other 3.25 0.02 10. TOTAL (1+2+3+4+5+6+7+8+9+10) 17 025.14 100
In 2012 RRT executed one Communications Management and Control Programme, code 01.81. The revenues, received for the services provided and the works performed by RRT are transferred into the budget and later returned from the budget for covering the activity costs. For funding the programme LTL 21 016.0 thousand of appropriations, including LTL 19 562.0 thousand – RRT revenue contributions, and LTL 1454.0 thousand – state budget funds were allocated according to the Law on the Approval of Financial Indicators of
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the State Budget in 2012 of the Republic of Lithuania (Official Gazette Valstybės Žinios, 2011, No. 163-7741). LTL 8000.0 thousand for work remuneration and LTL 7016.0 thousand for purchasing of assets were allocated in 2012. In 2012, from all funds of state budget (LTL 1454.0 thousand) dedicated to RRT Programme, LTL 1438.0 thousand are dedicated to cover RRT revenue contributions used for state budget needs in 2009 and LTL 16 thousand are foreseen for the investment project “Development of the Software Tool for Handling Lists of Certification Services”. Referring to the Law on the Structure of the Budget of the Republic of Lithuania (Official Gazette Valstybės Žinios, 1990, No. 24-596, 2004, No. 4-47), Resolution No 543 of the Government of the Republic of Lithuania of 14 May, 2001 "On the Approval of the Procedure of Formation and Execution of the State Budget of the Republic of Lithuania and Budgets of Municipalities" (Official Gazette Valstybės Žinios, 2001, No 42-1455, 2004, No 96-3531), the amount of LTL 3 993.3 thousand of non-used contributions into the state budget of the previous year was transferred into 2012 and used for funding of the Special Communications Management and Control Programme, executed by the Communications Regulatory Authority of the Republic of Lithuania by exceeding the amount of appropriations, approved by the Parliament of the Republic of Lithuania. Referring to the estimate, approved on 19 March, 2012, totally LTL 25 009 3 thousand was foreseen for funding of the Special Communications Management and Control Programme, executed by RRT in 2012 (21 016 0+3 993 3) (i. e. the amount, including the non-used contributions into the state budget of the previous year). RRT, in observance of the provisions of the Law on Electronic Communications of the Republic of Lithuania, must evaluate the conformity and legitimacy of the costs and collected charges. Upon evaluation of the revenues received and the funds not used in 2011 and in order to balance the costs and revenues of 2012, on 21 March, 2012, by Order No 1V-348 of the Director of the Communications Regulatory Authority (Official Gazette Valstybės Žinios, 2012, No 35-1760) RRT established the recalculation rate 0.7 for the tariffs of supervision of use of radio frequencies/channels, including radio monitoring, which was in effect from 1 April, 2012 to 30 November, 2012.
Table14. Utilization of funds, allocated for Communications Management and Control Programme, executed by RRT in 2012
For Communications Management and
Control Programme Expenses No. Pay-box expenses Pay-box expenses 2011 2012 (LTL thousand) (LTL thousand) 1. Total expenses 12 446.1 13 781.8 including: 1.1. Work remuneration 6 946.1 7 298.4 1.2. Social insurance contributions 2 165.4 2 276.7 1.3. Expenses for goods and services 3 238.1 3 868.6 1.4. Social allowances (income support) 94.3 87.9 1.5. Other expenses (for current purposes) 2.2 5.0 Transfer of EU, other international financial assistance 1.6. and co-financing funds - 245.2 2. Tangible and intangible property expenses 4477.1 7 164.4
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including: 2.1. For constructions (buildings and structures) 671.5 87.5 2.2. For purchasing of fixed assets 3 805.6 7 076.9 3. TOTAL (1+2) 16 923.3 20 946.2* * Notice: LTL 1449.4 thousand of them – Funds for State Budget, LTL 11.5 thousand of which are planned radiocomunifor purchasing, the rest – LTL 14379 thousand – for coverage of expenses.
The sets of RRT budget execution and financial statements are publically available at the website of RRT at www.rrt.lt in the section “RRT activities“.
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