FINAL REPORT ON AVMS AND AEC PERFORMANCE FINAL REPORT ON AVMS AND AEC PERFORMANCE

Publisher: Eurothink – Centre for European Strategies NGO Info-Centre Transparency Macedonia Helsinki Committee for Human Rights of the Republic of Macedonia

Translation and proofreading:: Abakus

Graphic design: Brigada Design

This product is prepared within the programme “Monitoring the performance, effectiveness, transparency and accountability of the media regulatory bodies – PROformance Watch” funded by the UK Government with the support of the British Embassy Skopje. The content of this publication does not necessarily reflect the position or the opinions of the British Embassy/UK Government. Content

1. Executive Summary 5 1.1 About the Project 7 2. Agency for Audio and Audiovisual Media Services (AVMS) 9* 2.1 Transparency and Accountability 9 2.1.1 Websites, YouTube, Facebook 9 2.1.2 Sessions of AVMS Council 10

2.1.3 Public Meetings 10

2.1.4 Press Releases 11 2.2 Independence and Effectiveness 11 2.2.1 Proposed Law Amendments 12 2.2.2 AVMS Council 14 2.2.3 Interim Commission on Monitoring Media Coverage of 2016 Elections 15 2.2.4 Effects from Inactivity of Courts, BPP and CPD on AVMS’s Effectiveness 16 2.2.5 Government is Late in Disbursing Funds to AVMS 17 2.3 Performance and Law Enforcement 17 2.3.1 Monitoring, Analyses, Open Calls, International Cooperation 17 2.3.2 Annual Operation Plans, Budget, Public Procurements 18 2.4 Public Interest 19 2.4.1 Strategy on Broadcasting Activity Development 20 2.4.2 Media Literacy 20 2.4.3. Hate Speech and Discrimination in the Media 21 2.4.4 Threats and Attacks on the Media and Journalists 22 3. Agency for Electronic Communications 23 3.1 Transparency and Accountability 23 3.1.1 Websites and Social Media 23 3.1.2 Meetings of AEC Commission 24 3.1.3 Public Consultations 24 3.1.4 Public Meetings 25 3.1.5 Press Releases and Events 26 3.2 Independence and Effectiveness 26 3.2.1 Donations from AEC’s Budget 26 3.2.2. Vodno Antenna Tower 27 3.3 Performance and Law Enforcement 28 3.3.1 Annual Operation Plans and Annual Financial Plans 28 3.3.2 Staff Members and Labour Inspection Supervision 29 3.3.3 International Regulatory Conference 30 3.4 Public Interest 30 3.4.1 Care for End-Users 30 3.4.2 Promotion Campaigns and Useful Mobile Apps 31 3.4.2.1 AEC’s Promotional Ads 31 3.4.2.2 Mobile Apps 31 Third Mobile Operator: Offer Presented to 3.4.3 32 100 Biggest Companies Abolishment of Roaming Charges and 3.4.4 33 Memoranda of Understanding

3.4.5 AEC’s Communication Methods with Citizens 33 3.4.5.1 Questions and Answers 33 3.4.5.2 Complaints by End-Users 34 3.4.5.3 Calls and Messages to Toll-Free Line 190 34 3.4.6 AEC in the Role of Citizens’ Protector 34 3.4.6.1 AEC and the Ombudsman 34 3.4.6.2 WannaCry Ransomware 35 3.4.6.3 AEC’s Action upon Complaints for TV Channels Cancelled by Operators 35 AEC’s Activities Related to Introduction of 5G 3.4.7 35 Mobile Technology in the Republic of Macedonia South European Digital Dividend 3.4.7.1 35 Implementation Forum (SEDDIF)

3.4.7.2 National Broadband Plan 36 Analytic Report from the Public Opinion Survey 4. 37 on AVMS and AEC 4.1 Survey Methodology 37 Public Opinion Survey on the Agency for 4.2 37 Electronic Communications (AEC) PART II: Public Opinion Survey on the Agency for 4.3 43 Audio and Audiovisual Media Services (AVMS) . Annex 1: Survey Sample Demographics 48 1. Executive Summary

Transparency and Accountability Throughout this monitoring project, AVMS and AEC demonstrated solid level of transparency and accountability in their respective operation. Documents made available on the official websites of both regulatory authorities give the impression of satisfactory transparency and accountability; however, in-depth analysis thereof shows there is still room for improvements, in particular by applying broader, proactive and more systematic approach to publication and quality of information, and better management of communication tools (websites, YouTube channels, social media etc.). Independence and Effectiveness AVMS’s and AEC’s effectiveness and independence from political and party power centres remain a key and essential challenge for future operation of these regulatory authorities, and in general for development of broadcasting activity and electronic communications in the state. Amendments to the Law on Audio and Audiovisual Media Services, which are already in parliamentary procedure, and cancellation of the public broadcasting fee in late 2017 were both deemed necessary by the executive branch of government and the expert public as they are aimed to strengthen AVMS’s independence and professionalism. Nevertheless, AVMS remarked the legislation changes, especially those related to nomination and appointment of AVMS Council Members and AVMS Director, underlying at the same time that the financing model which implies disbursement of funds from the state budget opens additional space for political influence on the Media Agency and the public service broadcaster. In the case of AEC, for several years in continuity the European Commission (EC) reiterated that the Agency continues to transfer surplus funds for purposes beyond its competences, thus undermining its credibility of autonomous and independent regulatory body. For example, in 2016 AEC – without clearly defined criteria - awarded the Public Transport Enterprise – Skopje (PTE) a donation of several millions intended for construction of the Ferris Wheel. Such practices on awarding donations were abandoned in 2017 with AEC’s budget adjustment, which resulted in reduction of funds allocated under the budget item on donations. In 2018, AEC’s budget does not anticipate any funds for donations and sponsorships. Performance and Law Enforcement Throughout the monitoring project, AVMS and AEC - in continuity - performed their law-stipulated obligations and implemented activities from their annual operation plans to great extent. In particular, both regulatory authorities developed, published and adopted their annual operation plans and budgets within law-stipulated deadlines, while their budget adjustments and public procurement budgets were made publicly available. In August 2017, acting upon an oral complaint made to the Ministry of Labour and Social Policy (MLSP), State Labour Inspectorate performed an inspection supervision related to labour relations at AEC, which resulted in establishment of irregularities with three staff members. According to AEC, these irregularities have been corrected within the deadline set by the state inspectorate. Public Interest Throughout the monitoring project, the Agency for Audio and Audiovisual Media Services demonstrated increased proactive engagement in topics and issues of public interest, and showed greater openness to representatives of civil society and media community. Large portion of AVMS’s activities were focused on media literacy, gender mainstreaming, hate speech and discrimination in the media, threats and attacks on journalists, compliance with professional standards in media coverage, and treatment of LGBTI population in media contents. Furthermore, AVMS organized a number of informal meetings and consultations with representatives from civil society organizations and media organizations. As regards the public interest, it should be noted that AVMS was late in drafting the five-year strategy on broadcasting activity development. Entry of third mobile operator on the market in the state is a major challenge and obligation for both AEC and the government. According to AEC, contacts have been established with potential operators, i.e. those interested to enter the telecommunications market in Macedonia, but the political situation and the fact that in the last few years Macedonia has been entering one after another election process negatively affected final decision of potential investors to enter the market. Abolishment of roaming surcharges is another issue of great public interest. Hence, the draft-agreement signed among electronic communications regulatory authorities of Macedonia, Serbia, Bosnia and Herzegovina and Montenegro to align roaming prices to in-country rates is of exceptional importance for citizens and should be adopted by relevant line ministries in these countries as soon as possible. Citizens’ Perception Vast portion of citizens in the Republic of Macedonia have not heard of AVMS and AEC, while most of those who are aware about their existence fail to distinguish between functions performed by these two regulatory bodies, i.e. are unaware of competences entrusted to each of them. This situation further reiterates the need for AVMS and AEC to pay special attention to promotion of their work and their competences. At the same time, citizens should be encouraged to lodge complaints to these regulatory agencies, but in doing so, they should be well-informed about the manner in which complaints are lodged and, of course, about issues that can be covered in their complaints. Particularly worrying is the fact that majority of citizens do not perceive these agencies as independent and professional regulatory authorities and believe that their management staff is appointed to these offices mainly due to close ties with political parties. Results from the public survey and findings from this monitoring project undoubtedly indicate the need for strengthened independence, professionalism and transparency of AVMS and of AEC, as well as the need for enhanced promotion of these regulatory bodies in the public. 1.1 About the Project

The project “Monitoring Efficiency, Effectiveness, Transparency and Accountability of Media Regulatory Authorities – PROformance Watch” is implemented by Eurothink - Centre for European Strategies, in cooperation with NGO Info-Centre, Transparency Macedonia and Helsinki Committee for Human Rights of the Republic of Macedonia. This monitoring project was conducted in the period September 2016 - March 2018, with the support from the British Embassy in the Republic of Macedonia. In particular, the project aimed to monitor performance track records of the Agency for Audio and Audiovisual Media Services (hereinafter: AVMS) and the Agency for Electronic Communications (hereinafter: AEC), by identifying their strengths and weaknesses, assessing their resistance to external influence and pressure, and by determining the extent to which their work is dedicated to protection of the public interest. For that purpose, in January 2017, the project team developed and published “PROformance Watch Baseline Report”1 and “AVMS and AEC Performance Monitoring Matrix”2, which served as basis for development of five quarterly reports, as follows: First Quarterly Report3 (October – December 2016), promoted on 2nd March 2017; Second Quarterly Report4 (January – March 2017), promoted on 28th June 2017 Third Quarterly Report5 (April – June 2017), promoted on 28th September 2017 Fourth Quarterly Report6 (July – September 2017), promoted on 13th December 2017 Fifth Quarterly Report7 (October – December 2017), promoted on 22nd February 2018

1 PROformance Watch Baseline Report available at: http://eurothink.mk/documents/dPXFgGKabc2CNQxzq 2 AVMS and AEC Performance Monitoring Matrix, available at: http://eurothink.mk/documents/sHGS5RQrpszZA2TfG 3 First Quarterly Report on AVMS and AEC Performance, available at: http://eurothink.mk/documents/fdwYpMpMBoyzEZdpq 4 Second Quarterly Report on AVMS and AEC Performance, available at: http://eurothink.mk/documents/6EHxraeNeLfC9pko5 5 Third Quarterly Report on AVMS and AEC Performance, available at: http://eurothink.mk/documents/GPjeTYkDJsnTajNpE 6 Fourth Quarterly Report on AVMS and AEC Performance, available at: http://eurothink.mk/documents/tmGiw4kSNmzua3w5z 7 Fifth Quarterly Report on AVMS and AEC Performance, available at: http://eurothink.mk/documents/wJZ4i6eByJ3j7iqW3 All quarterly reports were accompanied with publication of infographics containing the most important information gathered as part of monitoring activities. This final report provides summary of information presented in all previous five quarterly reports and attempts to present comprehensive image about performance track record of AVMS and AEC throughout the monitoring project. From the project’s onset the team established cooperation with both regulatory agencies, which continued throughout project implementation in the form of regular consultations. In order to increase the agencies’ trust in this process, i.e. in order to demonstrate that monitoring projects like this can only contribute to improved quality and transparency in their work, the project team made efforts to involve representatives of both agencies in all important processes taking place as part of this project. Prior to their official publication, all quarterly reports were reconsidered together with representatives from both agencies and they were consulted in regard to selection of topics for the animated videos produced, the design of questionnaires used in focus group discussions with citizens, the design of questionnaires used in public surveys, etc. Main goals of this project implied familiarization of citizens with the scope of work and competences of these regulatory agencies. Hence, the promotion event for the first quarterly report included presentation of two animated videos titled: “AVMS Watch: What does AVMS work?”8 and “AEC Watch: What does AEC work?”,9 attempting to explain work performed by and competences of the two regulatory agencies in audience-friendly, easily understandable and straightforward manner. In that, the project team is particularly proud of the fact that the video “AVMS Watch: What does AVMS work?” is featured on AVMS-founded Media Literacy Network’s DVD materials, intended to be used in formal education on media literacy.10 With financial assistance from AVMS and the Ministry of Education and Science, this DVD was printed in circulation of 900 copies and was distributed to primary schools across the state. This final report also includes results from the survey research conducted to inquire about citizens’ awareness about existence of AVMS and AEC, their competences, i.e. the manner in which they operate (see Section 4). Survey data show that only 35.5% of citizens are aware of AEC’s existence, whereas only 19.8% of them have heard of AVMS. The promotion event for this final report included presentation of additional two animated videos by means of which the project team attempts to further familiarize the citizens with certain competences of these regulatory agencies by providing simple and understandable explanation of the procedure to lodge complaints before these two regulatory bodies.

8 AVMS Watch: What does AVMS work?, available at: https://www.youtube.com/watch?v=p-CSz9gDPqg&t=74s 9 AEC Watch: What does AEC work?, available at: https://www.youtube.com/watch?v=XqVGQAdZut4&t=43s 10 Media Literacy Network, available at: http://mediumskapismenost.mk/%D0%BF%D0%BE%D1%87%D0%B5%D1%82%D0%BD%D0%B0/ 2. Agency for Audio and Audiovisual Media Services (AVMS)

2.1 Transparency and Accountability

Throughout the period October 2016 - March 2018, AVMS in continuity demonstrated solid level of transparency and accountability. At the same time, it has taken several specific steps to improve its transparency. For example, AVMS redesigned its official website, thus improving website functionality, launched its official profile on the social platform Facebook and designed the new website designated to media literacy. Moreover, when reviving its official website, AVMS consulted this monitoring team and even integrated some proposals in the final design, aimed at improved functionality and visibility of website contents.

2.1.1 Websites, YouTube, Facebook AVMS’s redesigned website allows better organized and streamlined browsing experience and use of website contents related to its work. Moreover, AVMS made an effort to facilitate access to information for fully or partially visually impaired persons and for colour-blind persons. In particular, by integrating a special software, these categories of persons are now able to listen to entire website contents in three languages: Macedonian, English and Albanian, as well as to “zoom in” contents. Colour-blind persons now have the possibility to view website contents in black and white contrast and adequate colours. In addition to its redesign and improved functionality, AVMS’s website is also enriched with additional contents that are of interest for citizens. For example, website section complaints, in addition to basic information and template for submission of complaints, now includes more detailed information about complaints lodged by citizens and legal entities, as well as responses thereto and actions taken by AVMs upon lodged complaints. Throughout the entire monitoring project, AVMS continuously and timely published contents and documents related to its work, while sessions of AVMS Council and public consultations were steamed live on the Agency’s YouTube channel. In the last quarter of 2017, AVMS promoted its Facebook page and its trilingual (Macedonian, Albanian and English) website designated to media literacy. This media literacy website provides an excellent opportunity for the Agency and for members of its Media Literacy Network to regularly upload information and other audiovisual materials on this exceptionally important topic. At the same time, having in mind the fact that citizens are not sufficiently knowledgeable of AVMS’s competences and work, this website should also serve as platform for greater promotion and visibility in the public of the Media Agency. Launch of AVMS’s Facebook page is another important step towards greater transparency and establishment of direct two-way communication with citizens. At the moment, this page features information on media literacy and materials from the campaign against gender stereotypes in the media, as well as information about the procedure on lodging complaints to AVMS. Given that, for the time being, page visits and content views are low, AVMS is faced with the challenge of enhanced promotion of its Facebook page and regular uploads of new contents.

2.1.2 Sessions of AVMS Council In the period covered by this monitoring project, AVMS Council held a total of 70 sessions or an average of more than 11 sessions per quarter. All sessions were public and streamed live on its YouTube channel.

Table no. 1: Number of sessions held by AVMS Council, per quarter

October – December 2016 8 January - March 2017 10 April - June 2017 10 July - September 2017 9 October - December 2017 15 January - March 2018 19 Total 71

All session agendas, chronicles, detailed minutes (with accuracy of shorthand notes) and decisions taken by AVMS Council were regularly published on the official website.

2.1.3 Public Meetings In compliance with its law-stipulated obligation, AVMS organized one public meeting per quarter or a total of 6 public meetings during the monitoring project. Public meetings were also streamed live on the Agency’s YouTube channel and its website was regularly updated with all presentations, discussions and lists of participants in public meetings. In addition to regular overview of AVMS’s activities in the relevant quarter, discussions at public meetings included other topics of public interest, such as: monitoring media election coverage (2016 parliamentary elections and 2017 local elections), professional journalist standards and compliance thereto, treatment of LGBTI population in media contents, gender equality, etc. 2.1.4 Press Releases Throughout this monitoring project, AVMS issued a total of 77 press releases or an average of 12 press releases per quarter.

Table no. 2: Number of press releases issued by AVMS, per quarter

October - December 2016 18 January - March 2017 7 April - June 2017 9 July - September 2017 19 October - December 2017 14 January - March 2018 10 Total 77

All press releases were regularly uploaded on AVMS’s website and were published in the media. In the course of monitoring quarters when elections were held, vast portion of press releases issued by AVMS concerned media election coverage, work performed by the Interim Commission (during 2016 parliamentary elections) and registered irregularities in the media. In addition to information on regular operation, AVMS’s press releases included reactions to attacks and threats on journalists and the media, and warnings about non-compliance with professional journalist standards.

2.2 Independence and Effectiveness

AVMS’s independence from political power centres remains a key and essential challenge not only in terms of its performance in the future, but also in terms of development of the broadcasting activity in the state. In July 2017, the new Government of the Republic of Macedonia adopted its Reform Plan 3-6-9,11 largely based on the Przino Accord and recommendations from the Priebe Report. As part of this document, the executive branch of government committed to free the media space from any institutional or personal influence, including financial independence, and to draft “amendments to the legislation that will ensure merit-based election of AVMS Council Members” in the following months.

11 Government of the Republic of Macedonia, Plan 3-6-9, available at: http://vlada.mk/sites/default/files/Plan3-6-9MKD.pdf 2.2.1 Proposed Law Amendments In this regard, on 19th September 2017 the Parliament, acting in fast-tracked procedure, revoked collection of the public broadcasting fee, whereby funding for MRT (public service broadcaster) and AVMS was transferred to the state budget. 12 Furthermore, in the third quarter of 2017, the Ministry of Information Society and Administration (MISA) opened public consultations for proposed amendments to the Law on Audio and Audiovisual Media Services,13 which ended on 26th December 2017. At that time, MISA announced that proposed law amendments will enter government procedure and that “they are a result of joint work between the government and media representatives in Macedonia”. 14. In its rationale for proposed law amendments, the government concluded that “Agency for Audio and Audiovisual Media Services and the public service broadcaster are not independent and professional institutions, as stipulated by the law” and therefore it anticipated changes to the method of appointment and the term of office of AVMS Council Members, the method of and the terms and conditions for appointment of AVMS Director, as well as competences of AVMS Council and AVMS Director. AVMS joined the public consultations on proposed law amendments and presented MISA with two opinions (dated from 28th July15 and 29th November16 2017) wherein it expressed dissatisfaction with many amendments proposed. In particular, the Media Agency remarked: 1) proposed staff changes at this regulatory body and the public service broadcaster; 2) introduction of the model of financing from the state budget; 3) establishment of quotas for own production of programmes, music programmes and production of documentary and feature programmes; and 4) need for further clarification of the law provision governing advertising by state institutions. Moreover, AVMS believes that cancellation of the public broadcasting fee is inadequate solution, as it threatens independence of the Media Agency and the public service broadcaster, i.e. allocation of state budget funds to finance these entities opens space for political influence on the regulatory body. At the same time, AVMS reacted to assessments presented in support of the draft law whereby this regulatory body is depicted as non-independent and non-professional institution and that it has acted as silent witness to emergence of negative phenomena in the society, such as hate speech and lack of political pluralism.. AVMS’s remarks were not taken into consideration by the government. Among other changes, the executive government proposes the term of office for AVMS Council

12 Broadcasting Fee Revoked, TV Telma, 19.9.2017, available at: http://telma.com.mk/vesti/sobranieto-ja-ukina-radiodifuznata-taksa 13 Draft-Law on Amending the Law on Audio and Audiovisual Media Services, available at:https://ener.gov.mk/default.aspx?item=pub_regulation&subitem=view_ann_ detail&itemid=KNDpcXvO3NdR8vnXIc7Xxw== 14 MISA press release, 26.12.2017, available at: http://www.mio.gov.mk/?q=node/4539 15 AVMS’s position and remarks about the media reforms, 28.7.2017, available at: http://avmu. mk/wp-content/uploads/2017/08/Stavovi_i_mislenja_na_Agencijata_za_predlozenite_ mediumski_reformi.pdf 16 AVMS’s position and remarks about the media reforms, 29.11.2017, available at: http://avmu. mk/wp-content/uploads/2018/02/Dostavuvanje-mislenje-na-Agencijata-za-Pregdlog- Zakonot-za-imenuvanje-i-dopolnuvanje-na-Zakonot-od-oktomvri-2017-do-MIOA.pdf Members in duration of seven years to be replaced by professional engagement in duration of five years. At the same time, appointment criteria related to work experience in the relevant field are expanded (to eight instead of five years of experience), the concept whereby Council Members are nominated by authorized proposing parties is abandoned, and new requirement is introduced for appointment of AVMS Director, according to which the candidate should not have served in political party bodies or committees and should not have served as elected or appointed public official in the last 10 years. According to the proposed amendments, current members of AVMS Council and AVMS Director are entitled to apply as candidates on the open call for appointment that will be published after the law enters into effect. According to the proposing party, the main purpose of these law amendments is “departisation and professionalization of the public service broadcaster and the regulatory body, i.e. the Agency for Audio and Audiovisual Media Services”. On the contrary, AVMS believes that true reforms necessitate “the focus to be on increasing professionalism of the media, improving conditions for performance of this activity and strengthening labour and professional rights of journalists and other media workers”, as well as that “practices on using law amendments to change the composition of the regulatory body should be abandoned once and for all”. On 20th February 2018, the government adopted the Proposed Law Amending the Law on Audio and Audiovisual Media Services, which was later submitted to the Parliament of the Republic of Macedonia. On 19th March, proposed law amendments passed the first reading within the Parliamentary Committee on Transport and Communications,17 and on 26th March the Committee on European Issues organized public debate at the Parliament to discuss these legislative changes.18 By the cut-off date for this report, law amendments are still in parliamentary procedure.

In the meantime, i.e. in early March 2018, the Government and AVMS publicly exchanged their opposing positions and views about the previous performance track record of this regulatory body. While the executive branch of government believes that “AVMS is directly responsible for failing to prevent years of political and financial dictate on the media, unclear and non-regulated relations between operators and the media, and for violation of copyrights”,19 AVMS claims that in continuity it has enforced its law-stipulated obligations, is always open to cooperation and that it is unpleasantly surprised by “unsubstantiated and discretionary statements aimed to discredit AVMS’s work”. 20

17 Proposed Law on Amending the Law on Audio and Audiovisual Media Service, available at: https://www.sobranie.mk/materialdetails.nspx?materialId=e71f01ff-4bd8-428a-b45e- ccf4687b774a 18 Public debate at the Parliament of the Republic of Macedonia, 26.3.2018, available at: http:// www.sobranie.mk/2016-2020-srm-ns_article-javna-rasprava-za-predlog-zakonot-za- izmenuvanje-i-dopolnuvanje-na-zakonot-za-audio-i-audiovizuelni-.nspx 19 Government to AVMS: Your Silence is the Reason Behind the Media Darkness, Plusinfo, 3.3.2018, available at: https://plusinfo.mk/%D0%B2%D0%BB%D0%B0%D0%B4%D0%B 0%D1%82%D0%B0-%D0%B4%D0%BE-%D0%B0%D0%B2%D0%BC%D1%83-%D0%B 2%D0%B0%D1%88%D0%B8%D0%BE%D1%82-%D0%BC%D0%BE%D0%BB%D0%BA- -%D0%B5-%D0%BF%D1%80%D0%B8%D1%87%D0%B8%D0%BD%D0%B0-%D0%B7/ 20 AVMS disclaimer, 4.3.2018, available at: http://avmu.mk/%D0%B4%D0%B5%D0%BC%D0 %B0%D0%BD%D1%82-%D0%BD%D0%B0-%D0%BD%D0%B0%D0%B2%D0%BE%D 0%B4%D0%B8-%D0%B8%D0%B7%D0%BD%D0%B5%D1%81%D0%B5%D0%BD%D0 2.2.2 AVMS Council As regards work of AVMS Council, which held regular sessions throughout this monitoring project, below we analyse several decisions that have sparked different reactions and discussions in the public.

Decision on adoption of AVMS’s 2016 annual report In its decision on approving AVMS’s 2016 annual report,21 AVMS Council negatively assessed the work performed by the Interim Commission on Monitoring Media Election Coverage and Representation, assuming the position that during 2016 early elections “channels TV Sitel, TV Alfa, TV Nova, TV Kanal 5, TV 24Vesti, TV Telma and TV Senja demonstrated bias towards certain political options”.

This position assumed by AVMS Council triggered fierce reaction in the public. Asso- ciation of Journalists of Macedonia (AJM) organized a press conference, at which the association’s president Naser Selmani stated that AVMS Council’s conclusion is “unbefitting and unprofessional, which confirms the position upheld by this associa- tion that the media regulator is politicized and partisan”. Zoran Fidanovski, member of AVMS Council, spoke at this press conference stressing that “this position is politi- cally motivated and serves the purpose of making an equation between media outlets for which media monitoring activities have not established violation of professional journalist standards and media outlets against which several dozen charges on viola- tion of standards are motioned and for which media monitoring activities have estab- lished use of hate speech”. Moreover, Fidanovski assessed that adoption of such con- clusion devaluates work performed by expert services at AVMS and creates non-ob- jective image about operation of television channels with national concessions. He expressed doubts that AVMS Council’s conclusion was adopted upon political dictate and that it is in full breach of AVMS’s mission.

Decision not to announce the open call to award TV broadcasting license In the second trimester of 2017, AVMS Council adopted a decision not to announce an open call to award broadcasting licence for national television carried on digital ter- restrial multiplex. All four broadcasting entities (Kompani 21-M, TV 24Vesti, TV Senja, and GBC Communications) which have submitted requests for award of broadcasting licence for national television were informed that AVMS would not announce the open call on the account of its breach of deadlines related to development and publication of feasibility study that justifies announcement of open call to award licence for tele- vision broadcasting. According to AVMS, the reason behind delayed development of this study is identified in the early parliamentary elections held in December 2016.

%B8-%D0%BE%D0%B4-%D0%BC%D0%B8%D0%BD%D0%B8%D1%81%D1%82%D0%B5 %D1%80/ 21 2016 Annual Operation Report of the Agency for Audio and Audiovisual Media, AVMS, 28.3.2017, available at: http://avmu.mk/images/1._Godishen_izveshtaj_za_rabotata_na_AVMU_ za_2016_godina.pdf According to the Media Development Centre22, AVMS and its Council breached the law by taking the decision not to announce an open call and that the breach of deadlines should not deprive entities submitting this initiative of their right to apply for broadcasting licence.

Illegal media concentration at TV 24Vesti? In the last quarter of 2017, AVMS Council prohibited change of ownership structure at TV 24Vesti because, according to AVMS, that could lead to illegal media concentration,23 while AVMS Council Members discussed the motion submitted by Radio Kanal 77 to revoke the broadcasting license of TV 24Vesti on the grounds that the owner of this television outlet is registered in the Central Register of the Republic of Austria as owner of company that serves as public electronic communications network operator. AVMS Council unanimously voted to reject this motion with the explanation that, in order to establish illegal media concentration, the operator in question needs to carry programme services on the territory of the Republic of Macedonia, which is not the case at this moment.24 In the first quarter of 2018, Radio Kanal 77 submitted a new motion to revoke the broadcasting license of TV 24Vesti on the grounds of illegal media concentration. In that, the petitioner claimed existence of ownership links between TV 24Vesti and the public telecommunications network operator Telekabel, and supported its claim with evidence comprised of interview given by the owner of TV 24Vesti for the news portal Maktel.

At its session held on 22nd February 2018,25 with 4 “yes” and 3 “abstention” votes, AVMS Council decided to initiate procedure on establishing illegal media concentration and tasked TV 24Vesti to provide all necessary documents within a deadline of 45 days.

2.2.3 Interim Commission on Monitoring Media Coverage of 2016 Elections The Interim Commission on Monitoring Media Coverage of 2016 Early Parliamentary Elections was established as political solution to then existing mistrust in AVMS’s objectivity and independence. Hence, for the first time since AVMS was established, assessments on balanced presentation in the media during elections were made by political body.

22 Monitoring Performance of AVMS and MRT, page 15, available at: http://mdc.org.mk/wp- content/uploads/2018/02/Vtor-monitoring-izvestaj-2017.pdf 23 AVMS Decision, available at: http://avmu.mk/wp-content/uploads/2017/12/Odluka-so-koja- se-zabaranuva-promena-na-sopstvenicka-struktura-na-24-VESTI.pdf 24 Minutes from AVMS Council 40th session, available at: http://avmu.mk/wp-content/ uploads/2017/12/Записник-од-40та-седница.pdf 25 Minutes from AVMS Council 11th sessions, available at: http://avmu.mk/wp-content/ uploads/2018/02/Zapisnik-od-11-veb.pdf The decision to establish this Interim Commission was taken on 21st July 2016 by political parties involved in negotiations to find a solution to end the protracted political crisis in the state. During its tenure, from 1st September to 28th December 2016, this commission held a total of 22 sessions and, in spite of deep divisions among its members concerning media monitoring goals and benchmarks, still managed to submit 68 motions for misdemeanour procedures against 25 broadcasting entities.

This Interim Commission and its performance track record were negatively assessed by AVMS Council, while the expert public made early warnings that establishment of ad-hoc bodies like this commission would not only fail in improving state-of-affairs in the media sphere, but would further politicize the media system, which is completely opposite to expected changes in the media landscape, including AVMS as well. OSCE/ ODIHR Final Report on Early Parliamentary Elections Report from December 201626 negatively assess the performance of this ad-hoc commission, indicating that its conclusions have been inconsistent and at times failed to reflect gravity of violations on the part of the media.

During the parliamentary elections held in December 2016, AVMS was exposed to high number of attacks, pressures and discredits, especially by certain members of the Interim Commission, but also by certain media outlets.

2.2.4 Effects from Inactivity of Courts, BPP and CPD on AVMS’s Effectiveness AVMS’s experiences with court actions show non-compliance with law-stipulated deadlines and postponement of court proceedings. For example, during the 2016 parliamentary elections, first instance courts have taken their decision on initiation of misdemeanour procedures within period that ranges from 2 to (as many) 104 days from the day when AVMS’s submitted its motions. Moreover, first instance judges have applied different interpretation of legal regulations in effect, especially in relation to initiation of fast mediation procedures. In the opinion of some judges, mediation is mandatory procedure, while in the opinion of others, it is merely optional. On one hand, such non-uniform and late initiation of actions on the part of judges goes in favour of media outlets that are subject of misdemeanour procedures, but on the other hand, it seriously undermines, i.e. threatens effectiveness of AVMS.

AVMS’s effectiveness is sometimes affected by differences among the Agency, the Basic Public Prosecution (BPP) and the Commission for Protection against Discrimination (CPD) in terms of recognition, prevention and sanctioning hate speech and incitement of discrimination, intolerance and violence featured in media contents. In the first quarter of 2017, such example was identified in AVMS’s motion27 to initiate procedure against TV Sitel. In its motion, AVMS provided detailed arguments that, as part of central news programme aired in early December 2016, this television channel

26 OSCE/ODIHR Report, available at: https://www.osce.org/mk/odihr/elections/fyrom/302261?download=true 27 Report from programme supervision performed at TV Sitel, in the period 2-5 December, AVMS, 30.12.2016, available at: http://www.avmu.mk/images/TV_Sitel_vonreden_nadzor_po_sluzbena_dolznost.pdf included 4 journalist reports focused on bilingualism in the Republic of Macedonia, abounding in messages that incite and spread discrimination, intolerance and hatred. Two months after this motion was submitted, BPP28 briefly notified the Media Agency that it has not found any grounds for initiation of criminal procedure, because contested news articles have been broadcasted during election campaign “and were intended to serve particular political goal, not to incite national, racial and religious hatred, discord and intolerance…” In the case of CPD29, this commission has requested AVMS to provide additional clarification, after which it issued an opinion wherein it failed to establish discrimination on the grounds of ethnic background and/or age.

2.2.5 Government is Late in Disbursing Funds to AVMS Late disbursement of funds intended to finance AVMS’s activities during the parliamentary elections could be perceived as form of pressure or an attempt by the government, i.e. the Ministry of Finance, to influence the Media Agency. Similar late disbursement was also observed in the course of 2017 local elections and, according to AVMS, the government is late in disbursing monthly funds intended for this agency throughout the entire period after the public broadcasting fee was cancelled.

2.3 Performance and Law Enforcement

Throughout this monitoring project, in general, AVMS continuously performed its obli- gations stipulated by law and integrated in its annual operation plans.

2.3.1 Monitoring, Analyses, Open Calls, International Cooperation AVMS performed regular administrative and programme monitoring of broadcasting entities, public electronic communications network operators and printed media publishers. At the same time, it conducted series of extraordinary monitoring activities related to several legal provisions, including the principles that govern performance of broadcasting activity, prohibition of hate speech and respect for obligation on airing music programmes, publication of the impressum, change of ownership structure, etc. Moreover, AVMS issued adequate sanctions for violations made by broadcasting entities, cable operators and printed media.

In compliance with its annual operation plans, AVMS regularly conducted research, analyses and studies, monitored media election coverage and announced open calls to award broadcasting licenses.

As regards international activities, in the last period and continuing in 2018 AVMS participated and will participate in regular meetings of the European Platform of

28 Notification, Basic Public Prosecution, 27.2.2017, available at: http://avmu.mk/images/ Izvestuvanje_od_Osnovno_javno_obvinitelstvo.pdf 29 Opinion of the Commission for Protection against Discrimination, available at: http://avmu. mk/images/Mislenje_od_Komisija_za_zastita_od_diskriminacija.pdf Regulatory Authorities (EPRA), European Regulators Group for Audiovisual Media Services (ERGA), Mediterranean Network of Regulatory Authorities (MNRA), and will engage in bilateral cooperation with regulatory authorities from the region and Europe. At the same time, AVMS will cooperate with OSCE Spillover Mission; will participate in the Universal Periodic Review of the UN Human Rights Council and in development of Macedonia’s Annual Program on NATO Membership. To celebrate the 20th anniversary from establishment of media regulatory body in the Republic of Macedonia, in the third quarter of 2017 AVMS organized the Regional Conference of Media Regulatory Bodies. This international event was attended by representatives of media regulatory bodies from Slovenia, Croatia, Montenegro, Serbia, Kosovo and Bulgaria, as well as representatives of civil society organizations profiled in the field of media, institutions and media professionals. 2.3.2 Annual Operation Plans, Budget, Public Procurements AVMS Council adopts the annual operation plans and submits them to the Parliament of the Republic of Macedonia, after their publication on AVMS’s website and discussion as part of public consultations. All changes made to AVMS’s budget and all public procurements are uploaded on its official website. Furthermore, this regulatory authority undergoes annual external financial audit of its operations. Findings from the financial audit are integrated in AVMS’s annual operation reports.

According to its 2018 financial plan, AVMS anticipates revenue in the amount of 115,079,000 MKD, which is by 9,840,000 MKD lower compared to 2017 figures. Such decrease under anticipated revenue is due to the uncertainty whether the state budget deficit of 3% would be reflected on funds allocated to AVMS from the state budget.30 New law amendments from September 2017 have replaced AVMS’s financing model from collection of the public broadcasting fee with financing from the state budget.

Chart no. 1: AVMS’s planned revenue in the period 2015-2018

30 Minutes from AVMS Council 42nd session, page 2, available at: http://avmu.mk/wp-content/ uploads/2018/01/Zapisnik-od-42-sednica.pdf In that, highest revenue collection in 2018 is expected from AVMS’s licensing activity, in the amount of 53,934,000 MKD or 46.87% of total revenue, and from state budget allocations, in the amount of 52,695,000 MKD (46%), followed by supervision of programme services transmission, in the amount of 8,100,000 MKD (7%) and transit invoices, in the amount of 350,000 MKD (0.3%).

Chart no. 2: Breakdown of AVMS’s planned revenue in 2018

In the context of government initiative to disclose expenses of public office holders, on 26th March 2018, AVMS published expenses of its director Zoran Trajcevski incurred in the period 1st June – 31st December 2017. According to this report,31 Trajcevski has spent a total of 345,896 MKD on following expense categories: 1. Travel abroad, in total amount of 172,779 MKD, of which 96,943 MKD were spent on airplane tickets and 75,836 MKD were spent on hotel accommodation; 1. Representation costs in the Republic of Macedonia, in total amount of 152,620 MKD, of which 76,000 MKD were spent on catering services for the Regional Conference of Media Regulatory Bodies and 76,620 MKD were spent on other catering services; 3. Business mobile charges, in total of 20,497 MKD, of which 17,346 MKD con- cerned mobile services in country and 3,151 MKD were roaming surcharges.

2.4 Public Interest

In this monitoring period, the Media Agency demonstrated increased proactive engagement in topics and issues of public interest, as well as greater openness to representatives of civil society and media community.

31 Expenses of AVMS Director in the second half of 2017, available at: http://avmu.mk/%D1% 82%D1%80%D0%BE%D1%88%D0%BE%D1%86%D0%B8-%D0%BD%D0%B0-%D0% B4%D0%B8%D1%80%D0%B5%D0%BA%D1%82%D0%BE%D1%80%D0%BE%D1%82- %D0%BD%D0%B0-%D0%B0%D0%B3%D0%B5%D0%BD%D1%86%D0%B8%D1%98%D0 %B0%D1%82%D0%B0-%D0%B7/ AVMS’s activities were mainly focused on media literacy, hate speech and discrimination in the media, threats and attacks on journalists, compliance with professional standards on media reporting, and treatment of LGBTI population in media contents. In this period, AVMS organized several informal meetings and consultations with representatives of civil society organizations and media organizations. As regards the public interest, it should be noted that AVMS was late in drafting the five-year strategy on broadcasting activity development.

2.4.1 Strategy on Broadcasting Activity Development AVMS initially planned to draft the new five-year Strategy on Broadcasting Activity Development by the end of 2017, but that did not happen. According to AVMS, reasons behind this delay are identified in its increased scope of work related to the local elections. Second deadline for drafting the strategy’s final text, set by AVMS, is the first half of 2018. In particular, the strategy will map current state-of-affairs in terms of the broadcasting activity in the country and will provide future directions and development goals. This strategic document will also include results and recommendations from the analysis of new media, whose development is underway. Moreover, AVMS plans to involve all relevant organizations and institutions in the field of media and broadcasting in its process on strategy drafting..

2.4.2 Media Literacy In the second quarter of 2017, the Agency of Audio and Audiovisual Media Services launched the Media Literacy Network of the Republic of Macedonia, whose goal is to promote cooperation among various societal actors engaged in policy creation and adoption and implementation of media literacy activities and projects. The Media Literacy Network has 35 founders: education institutions, civil society organizations, media outlets and public institutions, including two line ministries, i.e. the Ministry of Education and Sciences and the Ministry of Labour and Social Policy. It is open for new members and will make efforts to actively engage in international activities. First activity of this network implied development of DVD featuring media literacy materials and information, intended to be used at primary schools. Materials for the DVD were secured by several network members and include the animated feature titled “AVMS Watch: What does AVMS work?” which was produced as part of this monitoring project. At the fourth public meeting in 2017, in addition to promotion of the new trilingual website (Macedonian, English and Albanian) designated to media literacy, AVMS presented the third video instalment in the series “Jove’s Journey to Media Literacy” titled “Privacy and Tracking“32.

32 The video is available on the following link: https://www.youtube.com/watch?v=U_VY6zjPoQA 2.4.3. Hate Speech and Discrimination in the Media In the period when this final report was drafted AVMS33 performed extraordinary programme supervision at TV Alfa and established that “Milenko Nedelkovski Show” broadcasted on 27th and 28th January 2018, author of this show and his guest Mirka Velinovska presented positions and views that incite and disseminate discrimination, intolerance and hatred based on ethnicity. Hence, AVMS requested BPP and CPD to initiate procedures on this matter because it is an obvious example of disseminating hatred and discrimination against the Albanian community in the Republic of Macedonia. In early November 2017, AVMS issued a reaction about radio commercials aired as part of the joint campaign implemented by City Radio, Club FM and Metropolis Radio Network and targeting “all excessively emancipated women”. In that, the Media Agency established that this campaign discriminates on the basis of gender, disseminates misogyny and sexism, and lodged a complaint in front of the Commission for Protection against Discrimination (CPD). On 8th February 2018, CPD34 delivered an opinion wherein it established harassment on the basis of gender. Throughout the monitoring project, AVMS paid special attention to the issue of gender equality in the media and media contents. In addition to regular analysis of gender representation in television programmes and the structure of employees in the audio and audiovisual industry, the Agency launched and promoted a new tool on gender equality in the media, i.e. the Council of Europe’s Recommendation on Gender Equality in the Audiovisual Sector adopted by the Committee of Ministers on 27th September 2017. Moreover, in early March 2018, AVMS promoted several TV and radio commercials against sexism in the media,35 and its last public meeting featured the promotion of three publications with summary results from annual research on gender representation in programme aired by TV channels with national concessions, in the period 2012 - 2016. As part of efforts related to professional media coverage on LGBTI population, on 20th March 2018 AVMS promoted the Declaration on Ethical and Professional Media Coverage on Topics Related to LGBTI Community. Adoption of this document was initiated by the Coalition Margins, Council of Media Ethics, Association of Journalists of the Republic of Macedonia and Agency for Audio and Audiovisual Media Services. Principles enlisted in this declaration concern refrain from use and condemnation of hate speech based on sexual orientation, gender identity or any affiliation with historically and socially marginalized groups. This activity is yet another exceptionally important step for AVMS in its efforts to prevent hate speech and discrimination in media contents.

33 Report from programme supervision, AVMS, 13.3.2018, available at:http://avmu.mk/wp- content/uploads/2018/03/Pismen-izvestaj-za-izvrsen-programski-nadzor-vonreden-na- Alfa-TV-Skopje.pdf 34 Opinion of the Commission for Protection against Discrimination, 15.2.2018, available at: http://avmu.mk/wp-content/uploads/2018/02/Mislenje-za-Siti-Radio-od-Komisija-za- zastita-od-diskriminacija.pdf 35 Videos are available of AVMS’s Facebook page and YouTube channel: https://www.youtube. com/channel/UCEYyMdFonG29RzsAjeRt-rQ/featured. 2.4.4 Threats and Attacks on the Media and Journalists Throughout this monitoring project, AVMS frequently reacted to attacks and threats on journalists and media workers while performing their duties and tasks. Most recent example of such practices is identified in threats targeting Naser Selmani, president of AJM, on the part of brother of Bekir Asani, high official from governing party DUI. In that, the Agency36 strongly condemned threats directed at Selmani and stressed that attacks on journalists are absolutely unacceptable and undermine the democracy and the public’s right to free and professional information. According to AVMS, such occurrences contribute to weakened media freedoms and their ability to perform free and independent coverage of current affairs.

36 Reaction to threats addressed at AJM’;s president, AVMS, 8.3.2018, available at: http://avmu.mk/%D1%80%D0%B5%D0%B0%D0%BA%D1%86%D0%B8%D1%98%D0 %B0-%D0%B7%D0%B0-%D0%B7%D0%B0%D0%BA%D0%B0%D0%BD%D0%B8% D1%82%D0%B5-%D1%83%D0%BF%D0%B0%D1%82%D0%B5%D0%BD%D0%B8- %D0%BA%D0%BE%D0%BD-%D0%BF%D1%80%D0%B5%D1%82/ 3. Agency for Electronic Communications

3.1 Transparency and Accountability

In the period October 2016 – March 2018, AEC’s transparency and accountability were monitored in terms of several aspects of its performance: information and documents available on its websites and social network profiles, meetings of AEC Commission and information therefrom, public consultations, public meetings, press releases, etc. Regular publication of information on AEC’s websites gives the impression of satisfactory transparency and accountability, but in-depth analysis shows there is still room for improvements, in particular by applying broader, proactive and more systematic approach to publication of information and management of communication tools in place. The project team welcomes the fact that in February 2018 AEC published the complete list of staff members37 and its organogram,38 which can be viewed as serous steps towards greater transparency.

3.1.1 Websites and Social Media Basic indicator for monitoring AEC’s transparency and accountability are its three official websites.39 As regards contents available on AEC’s websites, the project team observed certain improvements in terms of timely publication of data and documents on AEC’s main website. At the same time, this website does not host CVs and other information about AEC Director and Commission Members.

37 List of staff members at the Agency for Electronic Communications, available at: http://www.aek.mk/index.php?option=com_k2&view=item&id=2234:spisok-na- vraboteni&Itemid=448&lang=mk 38 Organogram of the Agency for Electronic Communications, available at: http://www.aek.mk/ index.php?option=com_k2&view=item&id=2235:organogram&Itemid=448&lang=mk 39 In addition to the main website (http://www.aek.mk/), AEC hosts two other websites (http:// www.komuniciraj.mk and https://e-agencija.aek.mk). As regards AEC’s presence in the social media, the project team established dispersion of information on the two YouTube channels hosted by the Agency and the need to merge them into one official channel. Monitoring activities undoubtedly indicated the need for AEC to pursue more regular and more organized activity on social networks, in particular because throughout this monitoring project the Agency made around two dozen posts on its Facebook profile. On the other hand, AEC uploaded 25 videos from the International Regulatory Conference in Ohrid and three promotional videos on its YouTube channels.

3.1.2 Meetings of AEC Commission Throughout this monitoring project, AEC Commission held a total of 24 meetings, all of which were closed for the public, hence the only way for the public to obtain information about AEC’s work implied minutes from these meetings that were, in general, regularly published on AEC’s website. Key remark in this regard concerns insufficient details presented in minutes from AEC Commission meetings which, except for basic information, do not include more specific details about course and contents of discussions. . Table no. 3: Number of meetings held by AEC Commission, per quarter

October - December 2016 3 January – March 2017 7 April – June 2017 4 July - September 2017 2 October - December 2017 4 January - March 2018 4 Total 24

3.1.3 Public Consultations AEC regularly organized public consultations, i.e. it held a total of 19 public consultations in the period covered by this monitoring project. In general, all documents related to public consultations were timely uploaded on AEC’s website, including timely announcement of dates and venues for these events. In that, minutes from public consultations were not uploaded on AEC’s website with the explanation that AEC does not keep minutes at these meetings and that sometimes it is impossible to follow overall dynamics of discussions taking place at public consultations. Table no. 4: Number of public consultations organized by AEC, per quarter

October - December 2016 6 January - March 2017 4 April - June 2017 0 July - September 2017 3 October - December 2017 3 January - March 2018 4 Total 20

Positive example in terms of greater transparency is seen in publication of comments made by interested parties after public consultations, including AEC’s responses thereto.40

3.1.4 Public Meetings AEC complied with its law-stipulated obligation to organize at least two public meetings per year. These meetings represent a forum for all interested parties to express their positions and views in terms of development of electronic communications in the state. Some of more important topics discussed on public meetings include radio spectrum management in the Republic of Macedonia, state-of-affairs on the market of electronic communications, continuous and quality protection of the rights of end- users, as well as competences, procedure and results of the committee at AEC tasked with decision-making in misdemeanour cases.

40 Comments and responses thereto, AEC, available at: http://www.aek.mk/index.php?option=com_ k2&view=itemlist&layout=category&task=category&id=95&Itemid=469&lang=mk 3.1.5 Press Releases and Events Throughout the entire monitoring project, AEC issued a total of 29 press releases, i.e. an average of 5 press releases per quarter.

Table no. 5: Number of press releases issued by AEC, per quarter

October - December 2016 4 January - March 2017 8 April - June 2017 5 July - September 2017 5 October - December 2017 3 January - March 2018 4 Total 29

In addition to standard press releases related to details about the amateur radio exam, AEC also informed the public about memoranda of cooperation and of understanding it has signed with other international authorities in this field, as well as about other activities pertaining to international cooperation (International Regulatory Conference held in Ohrid, Conference on Cyber Safety held in Sofia, official visit by the President of the Bulgarian Regulatory Commission and AEC’s participation in the meeting of the Body of European Regulators for Electronic Communications – BEREC held in Brussels). Moreover, AEC issued press releases related to analyses and research conducted, such as the Final Document on Market Analysis Concerning Local and Central Access to Infrastructure, Analysis of Application of National and EU Legislation on OTT Service Providers, etc.

3.2 Independence and Effectiveness

3.2.1 Donations from AEC’s Budget In its last five progress reports for the Republic of Macedonia, the European Commission (EC) regularly reiterated the fact that AEC continues to allocate surplus funds for purposes beyond its competences, which undermines its credibility as autonomous and independent regulatory body. In its 2016 Report, EC refers to audit findings according to which AEC uses 45% of its surplus funds for purposes other than development of electronic communications, which is contrary to its term of office. Monitoring performance of this regulatory body established that in 2016, without clearly defined criteria, AEC awarded donations in the amount of 185,906,745 MKD, accounting for as much as 33% of its total annual expenditure. Information provided in AEC’s 2016 annual operation report refer only to total amount of donations and legal subjects benefiting therefrom (Public Transport Enterprise [PTE] - Skopje, City Zoo - Skopje, MRT [public service broadcaster], Municipality of Gazi Baba and Cycling Federation). Through the instrument on free access to public information, the project team obtained documents from AEC according to which as much as 94% of total funds anticipated as donations (in the amount of 175,358,000 MKD) were disbursed to PTE Skopje for construction of the Ferris Wheel. On the information request inquiring about the criteria applied in decision-making about donation beneficiaries and amounts thereof, AEC’s response indicated that “all donations are made in compliance with the Law on Donations and Sponsorships in Public Activities and that the Agency does not have special bylaw that regulates these criteria”. Moreover, AEC informed the project team that to thus far it has addressed PTE Skopje on three occasions (20.10.2017, 20.11.2017 and 20.12.2017) with request to submit financial report on utilization of donated funds, and has been informed that PTE keeps these funds on separate bank account designated for construction of the Ferris Wheel, as well as that funds have not been spent in their entirety and will be used exclusively for that purpose. In the meantime, construction activities on the Ferris Wheel were discontinued. It is important to note that at the time when AEC disbursed its donation to the Cycling Federation of Macedonia, its executive director Saso Dimitrijoski also acted as president of the named donation beneficiary, which constitutes direct conflict of interests. In 2017, AEC awarded another donation to swimming club “Beta” from Skopje, but relevant minutes from the meeting of AEC Commission when this decision was made do not include information on selection criteria, amount of funds donated and purpose thereof. In the course of 2017, AEC adjusted its budget and reduced funds allocated under the budget item on donations from 75,385,000 MKD to 4,615,000 MKD, while its 2018 budget does not anticipate any funds to be awarded as donations and sponsorships.

3.2.2. Vodno Antenna Tower Under its 2017 financial plan, AEC initially allocated 102,646,248 MKD or 21% of its total annual budget for construction of antenna tower (Vodno Tower) for radio spectrum control and monitoring on the territory of the Republic of Macedonia, but in the course of the year this amount was increased by additional 90,000,000 MKD.41 Similar is the situation observed in regard to AEC’s 2018 budget. This year, AEC plans to spend high 32% of its annual budget, i.e. 152,532,282 MKD for construction of its antenna tower. On 8th January 2018, the Government of the Republic of Macedonia tasked AEC to submit detailed analysis on justifiability of construction of this antenna tower within a deadline of one month. According to information provided by AEC representatives, they have complied with this task and presented the government with the requested detailed analysis. By the cut-off date for this final report, AEC has not received any feedback on the analysis.

41 Proposed amendments to AEC’s 2017 financial plan, available at: http://www.aek.mk/index. php?option=com_k2&view=item&id=2212:predlog-izmeni-i-dopolnuvanja&Itemid=479&lang=mk 3.3 Performance and Law Enforcement

3.3.1 Annual Operation Plans and Annual Financial Plans AEC’s annual operation plans, including annual financial plans, are directly linked to fulfilment of law-stipulated goals and principles of this regulatory authority. Total revenue anticipated under AEC’s 2018 financial plan42 amounts to 475,555,000 MKD, of which more than 78% will be generated from collection of spectrum fees (372,295,000 MKD). Remaining funds will be secured from charges related to supervision of electronic communications market (50,810,000 MKD) and charges on use of designated numbers and series of numbers (50,250,000 MKD).

Chart no. 3: Breakdown of AEC’s planned revenue in 2018

Analysis of AEC’s 2018 planned revenue shows that this year the regulatory body ex- pects to collect less funds compared to the previous two years, i.e. by 12.8% compared to 2017 figures and by 20.2% compared to 2016 figures. Same difference is observed in terms of expenditure, because, year after year, the amount of planned expenditure is equal to the amount of planned revenue. .

42 AEC’s 2018 Operation Plan, available at: http://www.aek.mk/index.php?option=com_ k2&view=item&id=2221:godisna-programa-za-rabota-aek-2018&Itemid=479&lang=mk Chart no. 4: AEC’s planned revenue/expenditure, per year

3.3.2 Staff Members and Labour Inspection Supervision In August 2017, acting upon an oral complaint made to the Ministry of Labour and Social Policy (MLSP), State Labour Inspectorate performed an inspection supervision related to labour relations at AEC, which resulted in establishment of irregularities with three staff members. Based on insight in documents on salary calculations and payments, it was established that hours when two staff members were absent from work had been enlisted as hours of effective work and they were paid salaries based on hours worked, contrary to legal provisions in effect, whereas in the case of the third staff member, the inspection established non-payment of monthly salaries. At the same time, the labour inspection established that AEC, as employer, has failed to align electronic records on staff working hours with the Rulebook on Method and Keeping of Electronic Records on Working Hours and Overtime Work, which means there are no individual schedules on working hours, breaks during working hours, absences for private purposes and absences for official purposes, and has failed to appoint an authorized administrator that will have access to electronic system data on working hours. Through the instrument on free access to public information, the project team obtained information from AEC that above indicated irregularities have been corrected within the set deadline of 10 days. In the second half of 2017, AEC Commission approved the amendments to the Rule- book on AEC’s Internal Organization which, in compliance with government recom- mendations, introduce flexible working hours at this agency. Furthermore, AEC Com- mission approved adoption of the 2018 annual employment plan. Relevant minutes from this meeting do not include any information about contents of said employment plan and this document is not available on AEC’s website. . 3.3.3 International Regulatory Conference In May 2017, AEC organized its 5th International Regulatory Conference in Ohrid, attended by representatives of electronic communications regulatory authorities from the broader region, network operators, technical sectors, as well as experts coming from governmental and civil society sectors. Main topics discussed at this conference included telecommunications market, internet operation and management, challenges to broadband internet and new trends, role of media literacy, privacy and personal data protection, and introduction of 5G network. Throughout the monitoring project, AEC staff members participated in a number of national and international conferences, seminars, training, meetings, debates, etc. In terms of international cooperation and networking, AEC closely cooperates with the United Nations (UN) Agency on Information and Communication Technologies –International Telecommunication Union (ITU),43 European Conference of Postal and Telecommunications Administrations (CEPT),44 European Telecommunications Standards Institute (ETSI)45 and EU’s agency, i.e. Body of European Regulators for Electronic Communications (BEREC) 46.

3.4 Public Interest

3.4.1 Care for End-Users Care for end-users is covered by all three websites hosted by AEC.47 AEC’s main website (aek.mk) features a separate window titled care for end-users, which throughout this monitoring project was marked by significant progress, especially in regard to the section Q&A that allows citizens to post questions. At the start of this monitoring project, this section was under construction, thus depriving citizens of the possibility to post any questions. This was changed on the project’s suggestion and citizens are now able to complete “online” template and request information, i.e. post questions to AEC. Also, this section features a link to webpage containing answers to frequently asked questions. AEC’s second website (e-agencija.aek.mk) features the option for electronic submission of complaints by end-users, which is explained in great details in the animated video produced as part of this project and titled “How to lodge complaint to AEC?” AEC’s third website (komuniciraj.mk) features the template for submission of applications on dispute resolution between end-users and operators. Several quarterly reports prepared as part of this monitoring project duly noted that it would be more useful and more convenient for citizens if these options are integrated under one website, i.e. AEC’s main website.

43 https://www.itu.int/en/%20Pages/default.aspx 44 https://www.cept.org/ 45 http://www.etsi.org/ 46 http://berec.europa.eu/eng/berec_office/tasks_and_role/ 47 aek.mk; e-agencija.aek.mk; komuniciraj.mk 3.4.2 Promotion Campaigns and Useful Mobile Apps 3.4.2.1 AEC’s Promotional Ads In the course of February and March 2017, AEC uploaded three educational videos on its YouTube channel (AEKTV),48 all containing information about services provided by the regulatory body and intended for end-users, i.e. citizens. Notwithstanding the fact that production of these promotion videos is excellent idea, their effect is insignificant having in mind that they are promoted only on AEC’s YouTube channel and knowing that citizens have small or limited access thereto. Having in mind that protected citizens are those who know their rights and how to exercise them, in the forthcoming period AEC should make efforts to ensure that promotion materials reach out to as many citizens as possible.

Video 1: „No Stress“ AEC’s first video titled “No Stress” aims to promote the call centre and the toll-free line established by AEC as part of its care for end-users and the benefits of dispute resolution among end-users and operators. This video was uploaded on AEC’s YouTube channel on 10th February 2017 and has been viewed 176 times.49

Video 2: „No Mess“ AEC’s video titled “No Mess” aims to promote the Single Information Point at the Agency for Electronic Communications established for the purpose of reducing costs for construction of public electronic communications networks for fast data transfer. It was uploaded on AEC’s YouTube channel on 15th February 2017 and has been viewed 90 times.50

Video 3: „No Interruptions“ AEC’s third video titled “No Interruptions” aims to promote the Rulebook on the Meth- od of Constructing Public Electronic Communications Networks and Accompanying Assets. This video was uploaded on AEC’s YouTube channel on 15th February 2017 and has been viewed 126 times.51

3.4.2.2 Mobile Apps In order to facilitate use of mobile and landline services for citizens, AEC offers citizens two useful mobile applications: AEC Calculator and AEC Directory.

48 AEC’s official YouTube channel, available at: https://www.youtube.com/channel/UCH5h_ AIZADe-qUFT1ynkTqA 49 Last time accessed on 28.3.2018 50 Ibid 51 Ibid Mobile applications like these can protect citizens’ public interest to great extent and therefore AEC should make more efforts for enhanced and visible promotion thereof, as well as for development of new applications.

Mobile app: AEC Calculator The tool called AEC Calculator allows citizens to “roughly” calculate the cost of monthly landline and mobile services. This mobile application is available on Google Play Store, has been downloaded over 500 times and has an average user rate of 3.5 (from maximum 5).

Mobile app: AEC Directory AEC Directory is mobile application that displays information about mobile and landline operators as carriers of contact numbers stored on mobile phones. Having in mind the large number of telephone numbers migrated from one to another operator and different charges for calls ending in the network of another operator, this tool seems to be useful in terms of reducing phone bills. In addition, this application calculates monthly statistics on user’s outgoing and incoming calls. It is available on Google Play Store, has been downloaded more than 5,000 times and has an average user rate of 4.4 (from maximum 5).

3.4.3 Third Mobile Operator: Offer Presented to 100 Biggest Companies At the moment, mobile telephone market in the Republic of Macedonia is marked by duopoly,52 i.e. there are only two big operators offering services to end-users and one virtual operator, Lycamobile, which has very small market share. According to the Report on Electronic Communications Market Development, in the third quarter of 201753 relevant market shares of mobile participants were as follows: Macedonian Telecom - 48.46%, OneVIP - 48.4%, and Lycamobile - 3.14% Market entry of “actual” third mobile operator in Macedonia would break the present duopoly and would ensure greater competition, better quality and reduction of service prices. Therefore, market entry of third mobile operator remains major challenge and obligation for both AEC and the government. According to AEC representatives, this regulatory body has made all within its powers to ensure conditions for market entry of new operator in the Republic of Macedonia. AEC has secured 2 x10 MHz blocks in the most attractive frequency bands (900 MHz and 1800 MHz), which should be sufficient to attract new network operator. Furthermore, contacts have been established with potential operators interested to enter the telecommunications

52 Duopoly is the situation when two companies have dominant market position. 53 Report on Development of Electronic Communications Market in the Third Quarter of 2017, available at: http://www.aek.mk/index.php?option=com_k2&view=item&id=2250:izvestaj-za- tret-kvartal-2017&Itemid=520&lang=mk market in Macedonia, but the political situation in the country at that point in time and the fact that Macedonia has entered from one to another election cycles in the last few years has probably deferred potential investors from making a final decision. According to information disclosed to the project team, AEC has presented its offer for market entry to the 100 biggest mobile operators in the world.

3.4.4 Abolishment of Roaming Charges and Memoranda of Understanding In late November 2017, representatives of electronic communications regulatory bodies from four states (Macedonia, Serbia, Bosnia and Herzegovina, and Montenegro) held a joint meeting in Belgrade and agreed the draft text of the agreement on alignment of roaming prices to in-country rates (also known as RLAH).54 According to the draft text,55 roaming charges in these four states should be capped at the level of in-country charges, following the example of roaming charges in the EU. The draft agreement was presented to line ministries in all four states and is expected to be enforced very soon. Abolishment of roaming charges should be the final result of the 2014 agreement signed among these four states, according to which prices charged for roaming services will be gradually decreased year after year. In the period August 2016 – March 2018, AEC signed two memoranda of understanding. The first memorandum was signed with the Communications Regulatory Agency of Bosnia and Herzegovina (May 2017), while the second memorandum was signed in February 2018 between AEC’s National Centre for Computer Incidents Response (MKD-CIRT) and the National Cyber Safety Unit at the Regulatory Authority of Electronic and Postal Communications of the Republic of Kosovo (RAEPC).

3.4.5 AEC’s Communication Methods with Citizens 3.4.5.1 Questions and Answers Throughout this monitoring project, the team regularly tested the option to post questions on AEC’s website section Q&A and found that this regulatory agency responds to questions posted within 24 hours. In the course of 2017, this tool was used 397 times or an average of 33 times per month.

3.4.5.2 Complaints by End-Users In the course of 2017, AEC was presented with total of 930 complaints by end-users or an average of 77 complaints per month. Most complaints (94%) were lodged in written and the remaining complaints were lodged electronically. In that, citizens’ complaints mainly concerned mobile and internet services.

54 The EU “roam like at home” (RLAH) rule means that when you use your mobile phone while travelling outside your home country in any EU country you don’t have to pay any additional roaming charges. 55 Montenegro, Serbia, BiH and Macedonia to abolish roaming, available at: https:// europeanwesternbalkans.com/2017/12/01/montenegro-serbia-bih-macedonia-abolish- roaming/ Focus group discussions organized as part of this monitoring project,56 including the public opinion survey presented later in this report, showed that large share of citizens have not heard of AEC and that those who are aware of its existence are not fully aware of AEC’s competences. At the same time, large portion of citizens are not fully satisfied with services provided by their operators. Hence, AEC needs to make greater efforts to improve its approach to citizens and to promote its competences. Having in mind AEC’s large budget, the project team suggests, among other things, AEC to reconsider the possibility to increase budget funds for promotion materials and campaigns.

3.4.5.3 Calls and Messages to Toll-Free Line 190 AEC’s third method of communication concerns the toll-free line 190. In the course of 2017, this line received 5,246 calls and 1,272 messages, or an average of 437 calls and 106 messages per month.

3.4.6 AEC in the Role of Citizens’ Protector

3.4.6.1 AEC and the Ombudsman On 14th November 2016, the news portal Sakam da kazam (SDK) reported 57 that one year earlier a cable operator had signed contract with 27-year old customer without legal capacity. After the cable operator had informed the person’s legal guardian that unilateral termination of the contract implies payment of high penalties, the latter lodged a complaint to the Ombudsman Office. The Ombudsman requested AEC to conduct insight into this matter and establish whether the cable operator had acted in compliance with the law when signing the contract. On 22nd November 2016, this news portal published another article58 indicating that the contract had been terminated without penalties and without request for settlement of matured monthly bills for cable services. This action on the part of AEC is praise-worthy and the regulatory body is encouraged to continue proactive engagement in protection of citizens and the public interest. Information of this kind should be uploaded on AEC’s website and should become regular practice pursued with a view to protect interests of end-users.

56 Fourth Quarterly Report on AVMS and AEC Performance, page 21, available at: http:// nvoinfocentar.mk/wp-content/uploads/2017/12/Izvestaj_AVMU_AEK_4_03.pdf 57 SDK, 14.11.2016, available at: https://sdk.mk/index.php/neraskazhani-prikazni/kabelski- operator-ke-tuzhi-za-neplateni-smetki-litse-so-narushen-psihofizichki-razvoj/ 58 SDK, 22.11.2016, available at: https://sdk.mk/index.php/glasno-za-ombudsmanot/po- nalog-na-aek-kabelski-operator-nema-da-tuzhi-za-neplateni-smetki-litse-so-narushen- psihofizichki-razvoj/ 3.4.6.2 WannaCry Ransomware In 2017, the Agency for Electronic Communications promptly reacted in protection of public interest by issuing warnings about WannaCry, which is malicious software that encrypts user’s computer and demands ransom to decode it. In Europe, this cyberattack has affected more than 100,000 users. In Macedonia, AEC and other stakeholders issued warnings about this malware, including recommendations for users to protect themselves against it.

3.4.6.3 AEC’s Action upon Complaints for TV Channels Cancelled by Operators After two cable operators abruptly terminated their contracts with TV channels Discovery and Eurosport59 on 1st January 2018, number of their subscribers reacted by lodging requests to have their contracts terminated. Although AEC’s Rulebook on General Terms and Conditions stipulates that in cases when TV channels are cancelled users are entitled to request contract termination without being subject of penalty payment, some users reported that they were facing obstacles in terms of contract termination, which forced them to lodge complaints to AEC. AEC’s representatives informed that they have already initiated action upon complaints lodged i.e. have enabled citizens to terminate their contracts without penalty payment on the grounds that the cable operators failed to comply with terms and conditions in their respective contracts. Moreover, cable operators failed to comply with the obligation on notifying their users 30 days in advance about cancelation of certain TV channels. According to AEC, the regulatory body is not legally authorized to force cable operators to carry particular TV channels, but they are authorized to impose contract termination without penalty payment for citizens.

3.4.7 AEC’s Activities Related to Introduction of 5G Mobile Technology in the Republic of Macedonia

3.4.7.1 South European Digital Dividend Implementation Forum (SEDDIF) In the course of 2016 and 2017, AEC actively participated in the working group within the South European Digital Dividend Implementation Forum (SEDDIF), which included coordination of UHF ranges, i.e. the frequency range 470-790 MHz was divided into two subranges of 470-694 MHz (DVB-T2) and 649-790 MHz (5G).

59 Users of Telecom and One.Vip Are Left Without Discovery and Eurosport, available at: https:// www.24.mk/diskaveri-kje-se-emituva-na-telekabel-eurosport-kje-mozhe-da-se-sledi-na- internet 3.4.7.2 National Broadband Plan In January 2018, the Ministry of Information Society and Administration (MISA) started work on drafting the National Broadband Plan, with active involvement of AEC. AEC’s representatives chair the working group tasked to design measures and activities aimed at introduction of 5G mobile technology in the Republic of Macedonia. Activities taken by this working group are already in advanced phase and some of them are in the stage of proposed solutions.60 It is expected for this group to finalize its work in the course of May 2018.

60 Working group tasked to design measures and activities necessary to introduce 5G mobile technology in the Republic of Macedonia, available at: http://mioa.gov.mk/?q=node/4547 4. Analytic Report from the Public Opinion Survey on AVMS and AEC

4.1 Survey Methodology

In order to obtain complete image on citizens’ knowledge about existence, competences and performance of AVMS and AEC, their satisfaction with services provided by these two regulatory authorities and their perception about performance of these regulatory authorities, in March 2018 the project team conducted a public opinion survey. The survey questionnaire was previously tested with three focus groups and the analytic report from focus group discussions was integrated in the Fourth Quarterly Report.61 The public opinion survey was conducted by M-Prospekt from Skopje as computer- assisted telephone survey, in the period 2nd to 23rd March 2018, on representative sample of 1,043 respondents, with an error margin +/-3.03%. The survey sample covered all ethnic communities, urban/rural areas and regions. Additional demographic information about the survey sample is provided in Annex 1 to this report. The survey questionnaire was comprised of two parts, with almost identical questions, whereby the first part addressed AEC’s competences and performance, while the second part addressed AVMS’s competences and performance. As regards the survey methodology, it is important to note that the questionnaire was designed according to the “from-general-to-specific” principle, i.e. initially respondents were asked whether they have heard of AEC or AVMS respectively, and were asked to answer following questions about performance of these regulatory bodies only if they confirmed knowledge about the existence of these two agencies.

4.2 PART I: Public Opinion Survey on the Agency for Electronic Communications (AEC)

This survey starts with the general question “Have you heard of the Agency for Electronic Communications (AEC)?” According to answers provided cito this question (see Chart no. 5), only 35.5% of respondents are aware of AEC’s existence. As high as 62.2% of respondents provided negative answers, meaning they are unaware of AEC’s existence. Only 2.5% refused to answer this question.

61 Fourth Quarterly Report on AVMS and AEC Performance, available at: http://eurothink.mk/documents/tmGiw4kSNmzua3w5z Chart no. 5: Citizen’s awareness of AEC’s existence

Analysis of answers against respondent’s regional distribution shows major differences between certain regions in the country. Single region marked by 50% of respondents who have heard of AEC is Vardar region (51.4%), followed by Skopje region (46.6%). On the other hand, the lowest awareness of AEC’s existence was observed in Southwest and Polog regions (21.7%) (see Chart no. 6).

Chart no. 6:Citizens’ awareness of AEC’s existence, according to regions

Data analysis according to respondents’ area of residence shows that citizens from urban areas are more informed about AEC’s existence (40.5%) unlike those from rural areas (27.5%) (see Chart no. 7). Chart no. 7: Citizens’ awareness of AEC’s existence, according to area of residence

Significant difference in answers to this question was also visible when they were combined against respondents’ ethnicity. Macedonians are the most informed (41.1%), followed by Albanians with twice as lower share of affirmative answers (20.6%), while the least informed about AEC are Roma, whose affirmative answers accounted for only 13.6% (see Chart no. 8).

Chart no. 8: Citizens’ awareness of AEC’s existence, according to ethnicity

In terms of respondent’s education level, it could be said that their knowledge of AEC’s existence is directly proportional to their education level, i.e. the higher education lev- el, the higher share of respondents who have heard of AEC. As high as 66.7% of re- spondents holding master degrees and 54% of respondents with completed higher education provided affirmative answers to this question. Significantly smaller share of respondents with lower education levels are aware of AEC’s existence. Their share among respondents with completed secondary education accounts for 36.4%, while the share among respondents with completed primary education accounts for only 15.6 (see Chart no. 9). Chart no. 9: Citizens’ awareness of AEC’s existence, according to education level

Under the second question, respondents were given five different statements used to measure their knowledge about AEC’s competences. Analysis of their responses provides the conclusion that respondents believe all statements on AEC competences to be truthful, even the two statements which actually referred to law-stipulated competences of AVMS, as follows: “…to perform supervision of programme aired by the media”, indicated by 63.8% of respondents and “…to perform supervision of paid political advertising during the election campaign”, indicated by 50.3% of respondents (see Chart no. 10).

Chart no. 10: AEC’s competences

Вистинит исказ Погрешен исказ Next set of questions inquired about citizens’ perception concerning AEC’s transparency, professionalism and independence. In that, they were asked to rank three statements on the scale from 1 to 5 (where 1 means they fully disagree and 5 means they fully agree). As regards AEC’s transparency, 38.5% of respondents believe that this regulatory body is transparent in its operation (scores 4 or 5), while 23.2% believe AEC is not transparent (scores 1 or 2). As regards AEC’s independence, 40.3% of respondents perceive this regulatory body as independent, while 28.1% do not believe it is independent from partisan, government or business interests. Respondents indicated highest trust in AEC’s professionalism, with 44.3% of them indicating that this regulatory body is professional in its operation (see Chart no. 11).

Chart no. 11: AEC’s transparency, independence and professionalism

As regards AEC’s method of financing, majority of respondents believe this regulatory body is financed from the state budget and with own funds (40.8%), while 27.8% of them indicated that AEC is financed only from the state budget and 12.4% indicated that AEC is fully financed with own funds (see Chart no. 12). Chart no. 12: AEC’s method of financing

The last question addressing AEC’s performance concerns the method on appointment of management staff. As high as 44.6% of respondents believe that managers are appointed only because of their close ties with certain political party, while only 22% of them believe that management staff is appointed due to their expertise. Small share of respondents (18.4%) indicated that both statements are true (see Chart no. 13).

Chart no. 13: Statements about AEC’s performance 4.3 PART II: Public Opinion Survey on the Agency for Audio and Audiovisual Media Services (AVMS)

Second part of the questionnaire concerns AVMS’s performance and its structure is identical to the part related to AEC. On the first question: “Have you heard of the Agency for Audio and Audiovisual Media Services (AVMS)?” high 77.1% of respondents provided negative answers, while only 19.8% of them confirmed knowledge about the existence of this regulatory body (see Chart no. 14).

Chart no. 14: Citizens’ awareness of AVMS’s existence

As was the case with questionnaire answers about AEC, answers to this question about AVMS are also characterized by major differences among respondents from different regions. Again, respondents from Vardar region are the most informed (30%), followed by respondents from Northeast region (27.5%). Lowest share of respondents who are aware of AVMS is observed in East region (13%) and Southeast region (12.1%) (see Chart no. 15). Chart no. 15: Citizens’ awareness of AVMS’s existence, according to regions

As regards the area of residence, respondents from urban areas are more knowledgeable of AVMS’s existence (21.8%), unlike those from rural areas (16.8%) (see Chart no. 16).

Chart no. 16: Citizens’ awareness of AVMS’s existence, according to area of residence )

When cross-referenced against their ethnicity, the analysis of respondents’ answers shows that Macedonians indicated greater awareness of AVMS’s existence (23%) compared to Turks (14.3%), Albanians (11.2%) and Roma (4.5%) (see Chart no. 17). Chart no. 17: Citizens’ awareness of AVMS’s existence, according to their ethnicity

Analysis of respondents’ answers to this question against their education level shows identical trend with the one observed in the case of AEC, i.e. the higher education level of respondents, the higher share of those who have heard of AVMS. Almost 70% of respondents, i.e. 38.1% of those with master degrees and 31.2% of those with completed higher education, are knowledgeable of AVMS’s existence. Their share is dramatically lower among respondents with completed secondary education (21%) and among respondents with completed primary education (5.2%) (see Chart no. 18).

Chart no. 18: Citizens’ awareness of AVMS’s existence, according to education level

Under the second question, respondents were given four statements related to AVMS’s competences. As was the case with AEC, high share of respondents (50% to 70%) believe that all four statements are true and reflect AVMS’s competences, even the statements: “...to protect users of mobile and landline services, internet and television from the operators” (65.2%) and “…to provide conditions for market entry of mobile operators” (52.7%), which actually concern law-stipulated obligations of AEC (see Chart no. 19). Chart no. 19: AVMS’s competences

Вистинит исказ Погрешен исказ

The set of three questions to which respondents were asked to indicate their answers on the scale from 1 to 5 allowed us insight in their perception about AVMS’s transparency, professionalism and independence. Highest agreement (scores 5 and 4) was observed in terms of AVMS’s independence (34.8%), followed by its professionalism (23.7%) and finally its transparency (19.3%) (see Chart no. 20).

Chart no. 20: AVMS’s transparency, independence and professionalism When asked about AVMS’s method of financing, high share of respondents (43%) believe that this regulatory body is financed from the state budget and from own funds. 30% of respondents indicated that AVMS is financed only from the state budget, while only 12.1% of them believe that the agency is financed from own funds (see Chart no. 21).

Chart no. 21: AVMS’s method of financing

High 52.7% of respondents believe that management staff at AVMS is appointed to these offices solely on the account of their close ties with certain political party. Significantly lower share of citizens (21.7%) responded that management staff is appointed due to their expertise (see Chart no. 22).

Chart no. 22: Statements about AVMS’s performance Annex 1: Survey Sample Demographics

Age Frequency % 18 to 29 204 19,6 30 to 39 196 18,8 40 to 49 197 18,9 50 to 59 141 13,5 60 to 69 187 17,9 70 to 75 76 7,3 Above 75 42 4,0 Total 1.043 100,0

Region Frequency % Skopje 313 30,0 Northeast 80 7,7 Eastern 92 8,8 Southeast 91 8,7 Vardar 70 6,7 Pelagonia 112 10,7 Southwest 106 10,2 Polog 179 17,2 Total 1.043 100,0 Living area Frequency % Urban area 639 61,3 (city) Rural area 404 38,7 (village) Total 1 043 100,0

Ethnicity Frequency % Macedonians 742 71,1 Albanians 233 22,3 Serbs 11 1,1 Turks 21 2,0 Roma 22 2,1 Other 6 0,6 Bosniaks 4 0,4 Vlachs 2 0,2 Macedonian Muslims 2 0,2 Total 1.043 100,0

Education level Frequency %

Without primary education 32 3,1 Primary education 211 20,2 Secondary education 561 53,8 Higher education 215 20,6 Master degree 21 2,0 Ph.D. 3 0,3 Total 1.043 100,0 Occupation Frequency % Employed in public sector 153 14,7 Employed in private sector 239 22,9 Employed in civic sector 6 0,6 Self-employed 48 4,6 Unemployed, seeking job 124 11,9 Unemployed, 55 5,3 not seeking job Housewife/men 99 9,5 University student 105 10,1 Pensioner 182 17,4 Disabled person 6 0,6 Farmer 20 1,9 High school student 2 0,2 Redundant worker 4 0,4 Total 1.043 100,0