Information Society Perspectives in South - Eastern Europe BOSNIA and HERZEGOVINA.

1. Information Society Perspectives in South - Eastern EuropeBOSNIA and HERZEGOVINA. Mr. Siniša Petrović Information Infrastructure Manager Communications Regulatory Agency

2. Presentation Aims • Current situation in BiH; • Areas of Concern - The Needs; • The Elements in Place; • The Oportunity. 1

3. Current situation in BiH - The Reality. • Internal administrative organisation of BiH - Complex picture; • The war still affects peoples lives in BiH; • Telecom infrastructure, reconstruction and development; • Information access by population is low; • The economy is fragile; • Taxation high, wages low, alternative economy. 2

4. Internal administrative organisation of BiH - Complex BiH Territorial size of 51.209,2 km2 Brčко District Republika Srpska 2 Entities 1 District 10 Cantons (Federation BiH) Federation of BiH 150 Municipalities 3

5. The war still affects peoples lives in BiH • 2,2 million people have been displaced from their homes • 1,200,000 persons have requested for refugee protection in more than 100 countries worldwide • 328,900 persons have regulated their status in the recipient countries • 288,450 persons awaiting for permanent solution. source of data: Ministry for human rights and refugees Meeting the donor conference in Doha, 15. May 2001 4

6. Telecom infrastructure, reconstruction and development Damage assessment was estimated as follows: • subscriber lines had decrease almost 45 percent; • exchange capacity decreased 25 percent; • transmission routes destroyed 40 percent; • long-distance network destroyed 65 percent. • The cost of restoring the sector, USD 222 million. Source EBRD 5

7. Telecom infrastructure, reconstruction and development Source IMG 1999 6

8. Main actors and competitors in Telecom Market today • 3 Telecom Operators in Fixed Network - with app 850,000 main lines; • 2 Telecom Operators in Mobile Network - with app. 250,000 subscribers; • Tendering procedure for new mobile operator is on the way; • 17 Internet Providers with about 75,000 subscribers (density estimation 2%). 7

9. Telecommunication coverage, estimation • More than 95% population lives in marked areas • Estimated presence of telecom service in BiH - 55 % of settlements within technical coverage - 75% of inhabitants within technical coverage source of data: Communication Regulatory Agency 8

10. Total lines penetration rate in Bosnia and Herzegovina source of data: European Survey of Information Society Projects and Actions 9

11. Economy and Finance. Economy • GDP per capita US$ 1,126 • average net wage KM 305 (June 2000, growth 9%) • inflation 7.5% • unemployed (40%) (June 2000) Financial infrastructure • main payment procedure: cash afterwards • credit card usage and acceptance very low • central bank controls monetary policy source of data: Agency for Statistics BIH, Bureau of Statistics FB, Bureau of Statistics of RS 10

12. Areas of Concern - The Need : • Simple, cheap and reliable access to information - for Governance - institution building - for Commerce - building the economy - for Education / Training - for Science and Culture 11

13. Preconditions: Legal Framework • Implementation of a policy and law making bodies; • Implementation of equal treatment of incumbent and non-incumbent Internet Service Providers; • General legal provisions for privacy and data protection; • Updating contract law and obligations rights; • Updating the law on financial institutions; • Modernising the financial sector; • Improving law enforcement for the overall legal framework • Establishing legal and organisational provisions, promoting fair competition. 12

14. Preconditions: Technical base • The Information Infrastructure: • – efficient, competitive, affordable and accessible with high quality of service; • Base of knowledge: – Building a top level base of professional knowledge; – Providing a basic knowledge to the society; 13

15. The elements in Place : • Non-nationalist Governments in place; • Enabling Regulation now established and hence can encourage development; • Modern Telecommunication Infrastructure in place; • Change of attitude; from "unless it is specifically allowed you CANNOT” to "unless it is specifically prohibited - you CAN" 14

16. Policy making and implementing the rules making the policy Regulate: implementing the law Government (relevant ministry) • Reporting to Government • and parliament • Proposing policy orientations Draft bill Adopting the law Law adopted by parliament Regulatory Agency Parliament Senate Implementing rules and law 15

17. Policies for Enabling the Internet: Legal Framework • Limited need for NEW Internet regulation • Digital signature • Protection of intellectual property • Application of existing regulations (not Internet specific) • Protecting children • Consumer protection • Preventing fraud • Prosecute criminal behavior • Not traditional media regulation with thanks to FCC 16

18. Prijedor Bijeljina CRO Bihac Banja Luka YU Tuzla Jajce Zenica Livno Sarajevo Gorazde Posusje Srbinje Mostar Trebinje CRO Existing Overlay Transmission Network in BiH a.) · · 17

19. Action in BiH : Building Base of Knowledge source of data: European Survey of Information Society Projects and Actions WWW Indicators report on Bosnia 18

20. Action in BiH : Building Base of Knowledge source of data: European Survey of Information Society Projects and Actions WWW Indicators report on Bosnia 19

21. The Opportunity: • To BUILD on the NEW postwar infrastructure • To change culture by "Ownership" • To develop Internet Service Providers (deregulation) • To allow low cost rapid spread of wireless technologies to serve the rural population (WLL) • To reduce the costs of communication - liberalisation • To develop the regional applications from Within the Region • To involve/empower the local users and providers wherever they are in BiH 20

22. Conclusions • Significant opportunities are available for new services throughout Europe; • BiH is well-placed to exploit because of the opportunities of Infrastructure Development; • Decision to shift in market from equipment manufacture to service delivery; • BiH needs to find support for service provision opportunities; • Can use these opportunities to attract investment. 21