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Annual Report 2012

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Annual Report 2012 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 RRT ANNUAL REPORT 2012 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 RRT ANNUAL REPORT 2012 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
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