Standard Dummary Project Fiche for Transition Facility

DETAILED TWINNING LIGHT PROJECT FICHE

Title: Monitoring and stimulating the development of the telecommunication market

Sector: Internal market – Telecommunication sector

Location: Poland

CRIS number: 2005/017-488.02.05

Twinning number: PL2005/IB/TE/01/TL

I. Background

The acquis in the field of telecommunications consists mainly of the new regulatory framework on electronic communications adopted in 2002 and that was to be implemented by Member States by not later than 25 July 2003 (or in case of new Member States – 1 May 2004). Due to fulfill the obligation of implementation acquis communautaire in the area of telecommunication Poland has adopted new Telecommunication Act, which has been in force since 3rd September 2004.

The new law imposes on the President of Office of Electronic Communications (OEC) several fundamental tasks in particular as follows:  Conducting analysis of the relevant markets  Examining competitiveness on existing markets  Designation operators with Significant Market Power (SMP)  Imposition and withdrawal of obligations  Taking care of development of competition on telecommunication services market

The regulatory authority (OEC) has a stronger position and new competencies assigned.

The President of the Office of Electronic Communications performs two basic functions with regard to the telecommunication services market:

1. Regulatory function comprising designation of operators with SMP on the markets as defined by the Ministry,

2. Monitoring function - control of activities by operators providing telecommunication services and agreements between operators, revision of regulatory obligations imposed on the entities with SMP, results of obligations imposed so far.

The regulatory authority in Poland has a good position to fulfill regulatory tasks.

1 Currently Poland is accomplishing the process of liberalization of the telecommunication market which will enable an easier access to the market for new entrants and to wider the range of services offered by them. The next step is efficient and pro-competitive regulation of that sector.

Currently OEC is conducting analyses of 18 relevant markets, that are to be finished before the end of 2006. Such an analysis includes definition of individual market and examination if there is an effective competition on the market. When there is no effective competition on the market, the regulatory authority designates an operator (or operators in case of collective power) with SMP and imposes regulatory obligations on it.

Taking into consideration that according to article no 21 paragraph 5 of Polish Telecommunications Act, at least every two years President of OEC conducts analyses of relevant market in order to maintain, change or cancel regulatory obligations or to designate entity (entities) with SMP and to impose for them obligations, provided for in the Act. If a relevant market does not posses or has lost characteristics of market with effective competition or an entity with SMP has changed and taking into consideration the European Commission’s guidelines, in the nearest future (after finishing above mentioned analyses) the next analyses will be essential

II. DESCRIPTION OF THE ASSIGNEMENT

 Beneficiary

Beneficiary is the Office of Electronic Communications – Department of Retail Electronic Communications Market

This programme would be a continuation of one of the components of Phare’99 – twinning project PL 99/IB-OT-03.

Participation of OEC employees in training courses organized in the framework of Transition Facility programme gives an unique chance to learn about standards applied by other regulators in EU Member States. This knowledge based on experience of other more advanced in the liberalization process countries would assist OEC to improve its effectiveness. It also enables the OEC staff to improve their qualifications and quality of their performance.

Project leader: Małgorzata Stachowiak – Chief Expert, Significant Market Power Division, Department of Retail Electronic Communications Market, tel. +48 22 53 49 265, fax: +48 22 53 49 195, e- mail: [email protected]

Contact persons: Marta Mętrak – Head of Foreign Assistance Programmes Division, President’s Bureau, tel. +48 22 53 49 367, fax: +48 22 53 49 253, e-mail:[email protected]

 Objectives

2 Global objectives

Strengthening Office of Electronic Communications (OEC) in monitoring and stimulating development of telecommunication market (relevant markets) - compliance of methods used by OEC with standards applicable in the EU countries.

Project purpose: To improve OEC’s activity in compliance with standards applicable in the EU countries with regard to the development of the effective competition on Polish fixed, broadband, leased lines and mobile telecommunication market.

Specific objectives - To identify and analyse of existing problems concerning competitiveness on all relevant markets in chosen (by OEC) EU countries and in Poland, indicating problems that may occur in the nearest time (2 years), - To indicate activities that should be undertaken after analysing of competitiveness mentioned above (maintenance, change or withdraw of regulatory obligations). In case of withdraw or change of obligations – presentation of evidences that those obligations have reached or not their goal, - To indicate necessity of designating the entity with SMP and imposing obligations in case if the market has not possessed or has lost characteristics of market with effective competition, - To analyse of the proposed regulatory measures in the light of conformity to the whole regulatory framework, - To analyse of the proposed solutions influence on the market, - To indicate difficulties with implementation of the above mentioned solutions by the telecommunications entities, - To extend practical knowledge on procedures, standards and methods applied by telecommunications regulators in EU countries especially in the field of competitiveness examination and designation of operators with SMP in UE countries - To improve regulatory and control methods used by OEC

The main objective of the contract is to obtain and use in national regulatory practice the experience based on the achievements and results of the others EU telecommunications regulatory authorities in the scope mentioned above

 Expected results

The project is designed to achieve: . An appropriate methodology, knowledge and solutions with regard to revision of regulatory obligations imposed on entities with SMP on all relevant markets, practical guidelines for OEC . Recommendations on remedial measures that OEC should undertake in order to increase the competitiveness level (in Poland and UE countries) . Identification of problems concerning competitiveness on relevant market and proposal of regulatory measures in chosen EU countries and Poland . Training of the OEC employees, responsible for SMP designations matters in the above mentioned scope

3 . Improvement of the trained employees knowledge and abilities in the field mentioned above

 Requested services

Trainings, workshops, study visits, preparation of content related materials, consultations, translations of trainings materials and other documents concerning the project subject, interpretation during trainings, recommendations concerning the content related publications, analysis (in printed or CD version), guidelines for further activities that should be taken by the Beneficiary, in the areas as follows:

Task 1

Report concerning telecommunications market analysis in the aspect of competitiveness on all telecommunications relevant market. Recommendations on remedial measures that OEC should undertake in order to increase the competitiveness level on the electronic communications market. Benchmark: Report concerning telecommunications market analysis in the aspect of competitiveness on all relevant market prepared.

Task 2

Practical experience from the other European Union members in the field of revision of competition problems on telecommunications relevant markets, regulatory obligations imposed on entities with SMP on all those markets, practical guidelines for OEC

2 study visits each for 8 OEC’s employees (the overall costs of OEC’s participation in study visits will be financed by Polish co-financing) for 3-4 days Benchmark: Two study visits each for 8 OEC’s employees conducted.

Task 3

Report concerning: - competitiveness on telecommunication relevant market in Poland and EU countries, - indication and analysis of existing competitive problems and problems that may occur in the nearest time (2 years) in all relevant telecommunication markets in Poland, market trends in EU countries - indication of activities that should be undertaken, by President of OEC after above mentioned analyses/problems (maintenance, change or withdraw of regulatory obligations). In case of withdraw or change of obligations – presentation of evidences that those obligations have reached or not their goal. Indication the necessity of designating the entity with SMP on those markets and imposing obligations in case if the relevant market has not possessed or has lost characteristics of market with effective competition - an analysis of suggested regulatory measures in the light of conformity to regulatory framework as a whole and their impact on the market,

4 - indication of difficulties with implementation the above mentioned measures and analysis and results of so far applied regulatory obligations Benchmark: Report concerning competitiveness on relevant market in Poland and EU countries prepared.

Task 4

Workshops and trainings on practical aspects on telecommunication relevant market analysis, examining competitiveness, identifying SMP and all aspect mentioned above (in task 3).

3 training/workshops for 4 days and 1 day of consultation after every training session. 15 –20 participants in every training session Benchmark: 3 training/workshops for 4 days and 1 day of consultation for 15 –20 participants in every training session conducted.

General requirements with respect to reports

All reports should be prepared by the Twinning Partner in English and Polish, both in printed and electronic form. The reports should consider all aspect mentioned in tasks above, the Polish law in force, a practice established on the Polish telecommunication market, and suggest any necessary changes in it. The reports should be consulted with competent OEC representative before the final result will be presented.

General requirements with respect to trainings and workshops

The training can be held in English, but interpretations and training materials translations into Polish will be provided by the Twinning Partner. All necessary OEC documents concerning the telecommunications market situation in Poland should be provided by the beneficiary, translation of these documents should be provided by the Twinning Partner. The Twinning Partner is responsible for translation into Polish of all other documents strictly related to the subject matters of the training or workshop especially the Twinning Partner law, studies, analysis, guidelines etc. Number of copies should correspond to number of participant of the training or the workshop.

Each training/workshop max 6 hours a day. A representative of OEC should have the possibility to ask experts respective questions before a training or a workshop takes place, and the detailed scope of every training or workshop should be consulted with competent OEC representative in advance (7 days minimum). After completion of the workshops and training the Twinning Partner will provide consultations – during the one following day after training/workshop session in Poland. After every training or workshop the Twinning Partner should provide one - two week of additional e-mail consultations with respects to subject matters covered during the training or workshop. The questions asked by e-mail should be answered as soon as possible, but not later than within one week. Contacts for such consultation should be clearly specified in training materials. The quality of training should be a subject to evaluation (e.g. in a form of a questionnaire).

Interpretation into Polish during workshops/ trainings should be provided by the Twinning Partner.

5 Project management

The responsible body for the project is Office of Electronic Communications (OEC) represented by the project SPO. The Twinning Partner is finally responsible to the Contracting Authority (the Project Manager) for financial and organizational settlement of the contract (finances, expenses, formal fulfilment of the contract obligations). The Target Institutions involved in the project is OEC – Department of Retail Electronic Communications Market.

Management structure

Implementing agency: PAO: Tadeusz Kozek, Under-secretary of State at the Office of the Committee for European Integration, Al. J.Ch. Szucha 23, 00-580 Warszawa; tel. (+4822) 455 52 41., fax (+4822) 455 52 43 CFCU: Izabella Nowakowska , Director, Foundation “Cooperation Fund”, ul. Górnośląska 4A, 00-444 Warszawa, tel. (+4822) 450 99 00, fax (+4822) 622 75 65. The CFCU is responsible for handling tendering, contracting and payments of contracts on behalf of the Office of Electronic Communications which itself shall be responsible for preparing projects and managing their technical implementation.

Beneficiary: Senior Programme Officer (SPO) – Michał Reutt, Director of Department of Wholesale Electronic Communications Market, OEC, phone: (48) 22 5349 282, Fax: (48) 22 5349 195, e-mail: [email protected], ul. Kasprzaka 18/20 01-211 Warsaw Deputy SPO – Monika Podpłońska, Deputy Director of Department of Retail Electronic Communications Market, OEC, phone: (48) 22 5349 231, Fax: (48) 22 5349 195, e-mail: [email protected], ul. Kasprzaka 18/20 01-211 Warsaw Project Leader – Małgorzata Stachowiak, Chief Expert, Significant Market Power Division, Department of Retail Electronic Communications Market, OEC, phone: (48) 22 5349 265, Fax: (48) 22 5349 195, e-mail: [email protected], ul. Kasprzaka 18/20 01-211 Warsaw.

There will be created the Steering Committee (SC) consisted of Deputy SPO, Team Leader of the Twinning Partner, Project Leader of the Beneficiary, representatives of the Office of the Committee of European Integration (OCEI) and Central Finance and Contracting Unit (CFCU). The SC will be responsible for monitoring the project progress and reacting if any problems appear. The SC meetings will have place once a quarter.

Facilities to be provided by the Contracting Authority and/or other parties

OEC provides the Twinning Partner with an access to the office equipment and the Internet for the purposes of performing tasks described above. OEC provides lecture halls for workshops/trainings. Within the frame of the co-financing OEC covers the costs of study visits.

Other resources necessary to perform tasks described in this contract shall be provided by the Twinning Partner, including interpretation during Steering Committee Meetings and experts’ visits.

6 1. EXPERTS PROFILE

The project will require one Project Leader and approximately 3-4 short-term experts (MS can offer more experts if it is justified) to perform trainings and prepare reports and an analysis. The experts required should be civil servants/ public officials of the relevant MS administration or permanent staff of its authorised mandated bodies. All experts who have a crucial role in implementing the contract are referred to as key experts.

General requirements for all experts (including Project Leader): . an advanced university degree (law, economy or telecommunications technology) . minimum 2 years of practice in telecommunications NRA. . good command in both written and spoken English.

Specific requirements for Project Leader: . good theoretical and practical knowledge of telecommunications relevant market, . experience in management of projects and strategic planning

Specific requirements for short-term experts:

. persons with good theoretical and practical knowledge of telecommunications market, . persons with practical experience in field of telecommunications relevant market analysis, identifying SMP on those markets, methodology of examining competitiveness of those markets, . persons with a background in technology, science, information and communication policy or business studies,

2. LOCATION AND DURATIONS

 Starting date: From the beginning of the 3rdquarter of 2007

The duration of the project – 6 months

 Finishing date of the assignment:

The end of the 4th quarter of 2007

 Location of assignment:  The project shall be carried out in Warsaw (OEC 18/20, Kasprzaka St.). The experts will be provided with the office space and communication lines.

During the Project Leader’s first visit a timetable of the contract’s performance and detailed programme based on the given tasks will be assigned.

7 3. REPORTING

 Content, language, format and number of reports

Reports shall be prepared during the period of execution of the project as follows:

1. There will be a start-up (inception) report covering the first two months of the contract (submitted during the third month) - template as for standard Twinning. .

The report may also include suggestions, modifications to the submitted issues to be proposed by the Twinning partner, subject to final confirmation.

2. Final report - A final report should contain assessment of activities, evaluation of the Twinning light project, summary of the project, conclusions, recommendations and the strategy for future. Final report is subject to approval by the Beneficiary.

The reports mentioned above must be prepared in English and Polish in 3 hard copies and computer version too. They have to be endorsed by the beneficiary and than submitted to the Office of the Committee for European Integration and the CFCU for acceptance. The Beneficiary may submit its comments and remarks to the reports. Remarks shall be taken into consideration and after consultation included in the final version of the reports.

 Date of submission

Inception report will be required within 7 days after reporting period. Final report will be required within 21 days after reporting period. Time for preparing reports as well as for briefing and debriefing is included in number of days assigned for the Project Leader.

4. SCHEDULE NUMBER OF DAYS FOR THE ASSIGNMENT PER EXPERT:

Field of Experts Number of Man/days Experts Number Team leader Preparation of the detailed trainings/workshops/ study visits programme and training/ workshops/ 1 12 study visits schedule, negotiations concerning trainings/workshops/study visits arrangements, organization of OEC and experts co-operation Task 1 (expert I and expert II) 2 16 Task 2 Task 3 (expert I, expert III and expert IV) 3 40 Task 4: (expert I, expert II, expert III, expert IV) 2 30

Approximate schedule of experts’ visits: Team leader – 4 visits of 3 days each Task 1: 2 visits of expert I and II, 4 days each Task 3:

8 2 visits of expert I, III, IV, 4 days each 1 visit of expert III and IV, 8 days Task 4: 3 visits of 2 experts, 5 days each: 1st visit – expert I and II 2nd visit – expert I and III 3rd visit – expert I and IV

5. BUDGET

€M Transition Facility support Co-financing Total cost (TF plus co- financing) Invest- Institu- Total National Other total co- ment tion Transition Public Sources financing Funds Support Building Facility (**) of the (=I+IB) (*) project CONTRACT 1 0.15 0.15 0,025 0,025 0.175

(*) contributions form National, Regional, Local, Municipal authorities, FIs loans to public entities, funds from public enterprises (**) private funds, FIs loans to private entities

The amount for co-financing for Contract 1 (Twinning Light) is entirely parallel co-financing. All costs for study visits outside Poland as part of the Twinning will be borne by the beneficiary country.