Interconnection Charges Reduced � Liberalization of Telecommunications Market

27 November 2006

The On.Net Internet provider and several cable operators may become the first companies to enter the landline telephone services market and compete with �Macedonian Telecommunications� Co. at the start of next year. The potential operators complain of the high interconnection charges as the main obstacle to their entry in the market.

The citizens expect from the competition to bring about lower telephone bills. Today, they are charged with a monthly subscription fee of 399 Denars + VAT (app. 6.7 Euro), regardless of whether they made any phone-calls or not.

On.net broke the ice on November 17, when it signed the first interconnection agreement with the Telecom, thus opening the way to become landline operator. According to the Law, no tender competition is required for landline operator, but the market is open for any company that meets the set requirements.

�The state needs to lower the prices of interconnection, if it wants true and real liberalization�, said Predrag Cemerikic, General Manager of On.net ISP.

He added that On.net is prepared to start offering telephone services at prices lower than what �Makedonski telekomunikacii� charges, but only of the interconnection charges are lower.

Mile Janakieski, Minister of Transport and Telecommunications, said that the liberalization in landline telephony is slowly turning into reality. He also pointed at the interconnection agreement with the Telecom as the most significant obstacle and announced that it will undergo major review.

�The new interconnection agreement should be ready by December 31, and then we will need an additional period of three to four months for the companies to enter the market�, said Janakieski.

On.net has already established its network of wireless links all over Macedonia, through the Macedonia connects project, financed by USAID, designed to secure free broadband (wireless) internet for 550 elementary and secondary schools, primarily in rural areas.