Official translation REPUBLIC OF LITHUANIA LAW AMENDING THE LAW ON TELECOMMUNICATIONS 9 June 1998 No. VIII-774 Vilnius (new edition by 5 July 2002 No. IX-1053) (Official Gazette, 1998, No. 56-1548; 2000, No. 32-892, No. 61-1830) Article 1. New Version of the Law of the Republic of Lithuania on Telecommunications The Law on Telecommunications of the Republic of Lithuania shall be amended and set forth to read as follows: "REPUBLIC OF LITHUANIA L A W ON TELECOMMUNICATIONS 1 CHAPTER ONE GENERAL PROVISIONS Article 1. Purpose and Application of the Law 1. This Law shall establish the telecommunications regulatory framework of the Republic of Lithuania, with due regard to the requirements of the European Union law and the Convention of the International Telecommunication Union, regulate relations between the telecommunications operators and the users of their services, the management, use and control of radio communication, as well as the import, manufacturing, use and maintenance of equipment radiating electromagnetic waves, ensure an effective use of radio frequencies and telephone numbers, and set forth conditions for promoting competition in the telecommunications sector. 2. This Law shall not regulate the licensing of the activities of radio and television programme broadcasters, with the exception that the basic technical conditions for the radio and television station frequencies/channels of co- ordinated activity and telecommunications networks for broadcasting and/or re- broadcasting of radio and television programmes must be submitted to the Lithuanian Radio and Television Commission. Article 2. Principles of the Regulation of Telecommunications Activities Regulation of telecommunications activities shall be based on the principles of effective management of limited resources, technological neutrality, functional equivalence, minimum of necessary regulation, legal certainty in co-ordination with the dynamic market, economic development, securing effective competition, protection of consumer rights, objectivity of the criteria, transparency, equality and non-discrimination. Article 3. Main Definitions Used in the Law 1. Subscriber – any person who is a party to a contract of supply of public telecommunications services with the provider of those services. 2 2. Equipment and devices - radio electronic equipment and electric devices that radiate or can radiate radio waves when in operation. 3. Protected service – radio and/or television broadcasting services, information services which are based on conditional access and provided against remuneration. 4. Persons - natural persons and legal entities. 5. Unbundled access to the local loop – fully unbundled access to the local loop and shared access to the local loop. Provision of unbundled access does not mean transfer of the rights of ownership to the local loop. 6. Local sub-loop – a part of the local loop connecting the network termination point located on the subscriber’s property with a concentration point or a designated closest access point of the fixed public telephone network. 7. Actual service user – natural person using public telecommunications services for private or business purposes. 8. Terminal equipment - equipment of telecommunications service users intended for the connection to the termination points of the corresponding telecommunications network. 9. Shared access to a local loop - access to the local loop or partial local loop of the designated local loop operator provided to a local loop beneficiary granting him the right to use the non-voice band frequency spectrum of the physical line. 10. Cross subsidising - use of the revenue received for services provided at an end price higher than the overall costs of providing the services, to compensate for the revenue received for other services provided at an end price lower than the overall costs of providing the services. 11. National Radio Frequency Allocation Table – a document approved by the Government establishing allocation of radio frequencies for radio communication, including broadcasting, industrial, scientific, and medical and other needs. 12. Designated local loop operator – an operator of a fixed public telephone network designated by a decision of the Communications Regulatory 3 Authority, enjoying significant market power in providing fixed public telephone networks and services. 13. Access – a facility granted by a telecommunications operator to another telecommunications operator and/or telecommunications service provider to use, under contractual terms, the infrastructure of the telecommunications operator and/or services to provide telecommunications services under the terms and conditions set forth in this Law and other legal acts. 14. Collocation – granting physical space and technical infrastructure necessary for placing and connecting relevant equipment. 15. Radio waves – electromagnetic waves of frequencies from 9 kHz to 3,000 GHz, propagated in space without artificial guide. 16. Radio frequency/channel assignment – authorisation issued by the Communications Regulatory Authority to use radio frequency or channel under the established terms and conditions. 17. Radio amateur – a natural person involved in radio communication activities for personal purposes or purposes unrelated to business and not seeking profit. 18. Radio equipment - equipment used for transmitting, sending and/or receiving radio signals 19. Radio channels - a band of radio frequencies for the designated whole of technical facilities and radio waves propagation environment intended for the transmission and receiving of certain information. 20. Radio Regulations - an official publication of the International Telecommunication Union establishing radio communication management. 21. Radio communication - transmission, sending and/or receiving of information by means of radio waves. 22. Radio monitoring - a permanent control of parameters of the radio waves environment. 23. Radio disturbance - the unwanted electromagnetic oscillations of various origin (electromagnetic noise, unwanted signal, change in the spread environment) obstructing the reception of the wanted radio signal and reproduction of the information. 4 24. Radio interference – degradation of the operation of equipment or a device, a communications channel or system due to the influence of radio disturbance. 25. Conditional access – any technical and/or other measure providing access to the protected service subject to a prior individual authorisation from the provider of such service. 26. Leased line – a non-switched telecommunications line connecting the telecommunications network termination points. 27. Leased line service – a telecommunications service enabling transmission between network termination points without the switching controlled by a telecommunications service user. 28. Transmission – encoded or non-encoded emission of radio and/or television signals to the public via telecommunications networks. 29. Related facilities – facilities relating to the provision of unbundled access to the local loop including collocation, cable connections, relevant IT systems necessary for the beneficiary of the local loop to provide services under the conditions of fair competition. 30. Telecommunications - transmitting, sending, receiving of information (signs, signals, written texts, images and sounds or other information) by wire, radio, optical, and other electromagnetic systems. 31. Telecommunications infrastructure - entirety of telecommunications networks, equipment, devices, lines, conduits, cables, cable ducts, collectors, towers, masts and other facilities intended for the pursuit of telecommunications activities. 32. Telecommunications line - a physical link connecting any points of a telecommunications network. 33. Telecommunications operator - an undertaking operating his own or another person’s telecommunications network (maintaining, developing, managing its functioning and interconnecting it with other networks). 34. Telecommunications services - services wholly or partly related to the transmission and switching of signals, including transmission of radio and 5 television programmes via telecommunications networks, with the exception of radio and television broadcasting and/or re-broadcasting activities. 35. Telecommunications service user – a person to whom public telecommunications services are provided or who has applied for their provision. 36. Telecommunications service provider - an undertaking providing telecommunications services via his own or another person’s telecommunications network. 37. Telecommunications network – an information transmission system and/or switching and other equipment which ensure the conveyance of signals by wire, radio, optical and by other electromagnetic means. 38. Telecommunications network provision - establishment, management, control of the telecommunications network and/or providing access to it. 39. Interconnection of telecommunications networks – the physical and logical linking of telecommunications networks used by the same and/or different operator and/or service provider, enabling the users of services of one operator and/or service provider to intercommunicate and/or communicate with the users of services of another operator and/or service provider, or to use the telecommunications services provided by another operator and/or service provider. 40. Telecommunications activities – activities involving the provision of telecommunications services and telecommunications networks. 41. Network termination