Ina Patjanko Head of Authorization Division of Electronic Communications and post department 2010

1. Public Utilities Commission of Republic of Latvia General authorization regime and supervision of electronic communications market players in Latvia Ina Patjanko Head of Authorization Division of Electronic Communications and post department 2010

2. Ina Patjanko Head of Authorization Division, Electronic Communications and Post department,Public Utilities Commission Introduction: • Work at Public Utilities Commission since 2002 • Work at Ministry of transportationDepartment of Communications 1999 - 2001 • Education - M.sc.ing. Telecomunications • Hobbies – music & travel ;-) Email:Ina.Patjanko@sprk.gov.lv Phone: +371 67097282 Fax: +371 67097277 Web: www.sprk.gov.lv

3. Content • Latvia - Basic facts • Regulation bodies • Electronic communications market of Latvia - History • Legislation of electronic communications market - History • Evolution of the licensing regime in Latvia • General authorization regime to in Latvia • Supervision • Current problems • Solution

4. Basic facts • Latvia • Land: 64 559 km2 • Population: 2,24 mio • Language: Latvian • Nationality • Latvians: 59% • Russians: 28% • Others: 13% • Joining EU in 2004

5. Basic facts • Electronic communications service and network providers • ~ 420 merchants • Main players • Lattelecom ~ 0.6 mio cust. • LMT ~ 1.2 mio cust. • TELE2 ~ 1.2 mio cust.

6. Regulation bodies

7. Regulation bodies • Ministry of transportation (Department of Communications) • designate the policy of electronic communications sector • Public Utilities Commission (Regulatory authority in Latvia) • implement the policy and supervise the electronic communications market • Electronic communications office • maintain radiofrequency management, number portability and caller location database, the network installation care, and other technical regulation issues • Data security inspection • maintain the defense of personal data. • Competition board • maintain the competition low in all sectors • Centre of customer rights care • practice with the customer complaints in all sectors

8. Public Utilities Commission - Responsibilities (electronic communications sector) • Facilitation market development • Promotion of competition in the sector • Protection of consumer rights • Authorization the entrance to the electronic communications market • Supervision the allowance of the legislation in the electronic communication sector • Proceeding disputes between electronic communication network or service providers in cases of interconnection, access areas • Control quality of service • Market analysis and adjustment of obligations to the electronic communications networks or service providers with significant market power • Different technical and economical regulations designation

9. Electronic communications office - Responsibilities • Management of radio frequency spectrum and numbering • Technical planning of radio frequency spectrum usage • Provision of electromagnetic compatibility and numbering services • Assigning of radio frequencies • Assigning call-signs (identification) to radio stations • Supervision of the electronic communications networks installations

10. Electronic communications market of Latvia - History

11. Development of the electronic communications market of Latvia • 1989 – first cable TV operators • 1991 – first Internet providers • 1991 – first mobile operator (NMT, GSM) • 1996 – second mobile operator (beauty contest, GSM) • 2002 – first UMTS tender • 2003 – liberalization of the fixed telecommunications market • 2003 – license for the CDMA operator • 2005 – second UMTS tender and third mobile operator

12. Legislation of electronic communications market - History

13. Overview on changing legislation of electronic communications market • 2001 – Low on telecommunications • transposition of EC directives of 1998 • 2001 – Regulatory low • 2001 – Establishment of the Public utilities commission • 2004 – Low on electronic communications • transposition of ЕС directives of 2002 • 2011 – “next task” amendments of the Low on electronic communications • transposition of EC directives of 2009

14. Evolution of the licensing regime in Latvia

15. Evolution of the licensing regime in Latvia • 1991 – 2001 Ministry of Transportation • Licensing in telecommunications • Permissions types • License for mobile or tranking telecommunication services* • Permission to provide other telecommunication services (excluding fixed telephony and leased lines)** * Licenses were signed by minister of transportation * Permissions were signed by director of communications department of ministry

16. Evolution of the licensing regime in Latvia • 2001 - 2004 Public Utilities Commission • Licensing in telecommunications • Individual licenses • General authorizations • Permissions types* • Individual license – in case of own network infrastructure or usage of scarce resources (numbering or frequencies). State fee for the issuance of the license (approx.200 USD) • General authorization – in other cases (re-sellers, service providers without own network etc.). No fees for the registration * Individual license was terminated (average 5 years), general authorization was term less

17. Evolution of the licensing regime in Latvia • 2004 - …Public Utilities commission • Registration of merchants • list of authorized electronic communication service providers • General authorization regime

18. General authorization regime in Latvia

19. General authorization regime to entrance electronic communications market in Latvia Since 2004 The provision of all public electronic communications services or networks is under the general authorization • General authorization rules are adopted by the Public Utilities Commission and are public available • Merchant should submit the registration application to the Public Utilities Commission and has the right to provide public electronic communications networks or provide electronic communications services • Registration is free of charge and authorization is term less • The list of authorized merchants is publicly available (published on the PUC website)

20. Electronic communications services in Latvia (according to the rules of cabinet of ministers) Regulated types of electronic communications services Voice telephony Pay-phones Data transmission and electronic massages (SMS) Leased lines Internet access TV and radio transmission in the public networks Access to the network and infrastructure Interconnection services

21. General authorization and rights of use • “License free” frequency spectrum (2,4 GHz un 5,2 GHz) • Right to use without any other permission • Other types of frequency resources • Shall apply for them to the Public Utilities Commission • FIFO (First in, First Out) • Beauty contest • Auction • Rights are terminated • Decision is made by the PUC board • Additional permission for installations of radio equipment required

22. General authorization and rights of use • All types of numbering resources • Shall apply for them to the Public Utilities Commission • FIFO (First in, First Out) • Rights of use numbering are term less • Decision is made by the PUC board

23. The results of market openning • Due to the legislative changes according the EC directives of 2002, barriers to entrance the electronic communications market decreased • It became easier and faster to start business in electronic communications sector and competition has grown • Additionally those changes came with major load to the Regulatory authority according the supervision of market players

24. Supervision

25. Supervision of market players • The major steps of supervision • Data analyses (on regular basis) • Service quality control (on regular basis) • according the approved methodology • Inspection of merchants (on irregular basis) • depending on the customer complaints • depending on data analyses results

26. Supervision of market players • The tools of Public Utilities commission in case of merchant doesn’t meet the general authorization conditions • The admonishment • Penalties (approx.700Euro-14000 Euro) • The decision to interpose the provision of electronic communications services or networks (till the period of 5 years)

27. Current problems

28. Current problems • Merchants are “lazy” submitting regular data to the Public utilities commission • Data gethering process are very heavy • There are no possibilities to compare different data • Data processing takes a long time

29. Solution

30. Solution • Merchants “self care” system • Merchant’s profile creation • Proactive alert messages • Report submiting and validation • Report templates • Interactive communication with PUC • Current activities – specification validation • Planned launch – 2011 • Main risks – economic crisis

31. Thank you for your attention!Phone: +371 67097282Fax: +371 67097277E-mail: Ina.Patjanko@sprk.gov.lv