DECISION OF COUNCIL OF HEADS OF GOVERNMENT OF COMMONWEALTH OF INDEPENDENT STATES

of November 19, 2010

About competitive situation in the market of telecommunications of the State Parties of the CIS

The Council of Heads of Government of the Commonwealth of Independent States solved:

1. Take into consideration Information on competitive situation in the market of telecommunications of the State Parties of the CIS it (is applied). Note that antimonopoly authorities of the State Parties of the CIS within Interstate council on the antimonopoly policy do the considerable joint operation directed to reduction of tariffs for communication services in the international roaming.

2. Recommend to antimonopoly authorities of the State Parties of the CIS to complete procedures of investigations of antitrust violations in the market of communication services in the international roaming in the I quarter 2011.

3. To the authorized bodies of the State Parties of the CIS performing state regulation in the field of communication to consider question of reduction of tariffs for regulated services of completion of challenge on the networks of operators of the international telecommunication influencing communication services in the international roaming no later than the I quarter 2011.

4. To interstate council on the antimonopoly policy to continue the organization of joint operation of antimonopoly authorities in the socially important markets and the markets influencing strengthening of economic interaction of the State Parties of the CIS.

Information on competitive situation in the market of telecommunications of the State Parties of the CIS

Introduction

The telecommunication industry plays one of key roles in stable development of economy of any state. It provides to citizens possibility of bystry receipt of the most various information, including data on activities of authorities, expands bonds in business environment, promotes inflow of direct foreign investments. At the same time the legal base providing necessary conditions for the fair competition, and also possibility of implementation of advanced technologies has significant effect on development of the most telecommunication industry.

By estimates of International union of telecommunication, the amount of the world market of telecommunication services in 2007 made more than 1700 billion US dollars, in 2010 2300 billion US dollars are expected, at the same time the market of telecommunications keeps strong growth of 6-8% a year.

In recent years technology development of telecommunications has significant effect on substitution of traditional services by new: at the end of 2009 the number of Internet users through networks of mobile communication exceeded number of users on the fixed networks and constituted 600 million people, or world's population % 9,5.

As well as in other high-tech industries, development of the competition in the market of telecommunications has "technological" nature. Therefore one of the major factors determining successful innovative development of industry of communication, forming of favorable conditions for use of services of telecommunications is the condition of competitive environment in the corresponding markets.

The analysis of competitive situation in the market of telecommunications is carried out as of 2009. The majority of the State Parties of the CIS, representatives of the Regional commonwealth in the field of communication, representatives of business community participated in carrying out the analysis.

Since the beginning of the 90th years of the 20th century new economic conditions promoted growth of bank and commercial activity, there took place privatization of telecommunications agencies that to some extent promoted demonopolization of the market of communication services.

When reforming industry of communication much attention was paid to ensuring preserving common information space of the states of members of the CIS. In December, 1991 heads of administrations of communication of the State Parties of the CIS made the decision on creation of the regional organization which received the name "The Regional Commonwealth in the field of Communication" (RSS). Assistance of communication of the new independent states to administrations was the first task of RSS to organize the decentralized management of communication networks without decrease in efficiency of their work.

Process of reforming of industry led to emergence in the territory of the former USSR of more than 11000 telecom operators. The greatest number of operators provide services in Russia - 6182. At the same time in Azerbaijan 30 telecom operators, in Turkmenistan - 21, in Uzbekistan 19 work.

Practically in all State Parties of the CIS telecommunication industry - one of the most dynamic industries of economy. So, in Kyrgyzstan growth rates of industry of communication exceed growth rates of GDP and annually make 20-25%, in Russia the industry contribution to GDP approached 5%, the specific weight of industry of communication of Ukraine in GDP of the country makes 7%.

For years of reforms in the market several tens of types of new communication services appeared: cellular, paging, trunking communication, data transmission services, documentary telecommunication, multimedia, cable television, direct broadcasting via the satellite, etc. Most successfully the competition in these markets as services of public electric communication, as a rule, belong to naturally exclusive fields of activity develops. Also the range of the provided services extends.

Promptly the market of services of cellular communication develops. The number of operators of mobile radiotelephone communication in the CIS exceeded 2100. The greatest number of operators in Ukraine - 1701 and Russia - 357, the smallest in Armenia - 3, Turkmenistan - 2.

Penetration of mobile radiotelephone communication into the CIS averages % 95,3. At the same time it should be noted essential disproportions in number of subscribers in the State Parties of the CIS. If in Russia and Ukraine cellular density significantly exceeds 100%, in Turkmenistan it less than 10%.

Extent of long-distance and international communication channels in the State Parties of the CIS more than 43 billion kanalo-km.

Annually residents of the State Parties of the CIS make more than 4 billion outgoing international telephone conversations. At the same time more than 75% of telephone conversations are made between gosudarstvamiuchastnik of the CIS.

On total amount of outgoing international telephone traffic of the CIS yields only the USA (by 16 times), Germany (in time 2,5), Great Britain and France (slightly).

Thus, for ensuring high-quality integration of the State Parties of the CIS into the international information community which is necessary for realization of innovative development of economy of the states the sufficient attention shall be paid to questions of forming and development of cross-border information exchange.

I. State regulation of the market of telecommunications in the State Parties of the CIS

The international experience of legal regulation of telecommunications demonstrates that practically in all countries elements of impact of the state on activities of business entities in a varying degree remain. Governmental bodies determine policy of development of the telecommunication sphere, create regulatory framework in the field, directly supervise questions of licensing of operator activities, certification of the equipment and services, distributions and uses of range of frequencies, resources of numbering, interface of networks and internetwork interaction, control and regulation of costs.

At the same time the main attention of the state regulating authorities is paid to ensuring availability of universal services which list is regulated depending on the level of development of telecommunications and territorial differentiation, solvency of consumers, general economic condition of the state and its policy in the field of informatization.

The special part in system of state regulation of telecommunication industry is assigned to pricing mechanisms. In most cases in case of establishment of rates the methods close to methods of competitive pricing stimulating reducing production costs by operators and promoting on this basis to reduction of tariffs are used.

In general management processes and state regulation are based on liberalization of the national markets of communication, expansions of range of the provided services and improvement of their quality for the benefit of all subjects of the market relations are directed to creating favorable conditions for the competition for the purpose of dynamic development of public networks.

1.1. Legal regulation in the State Parties of the CIS

The system of legal regulation of the relations in the field of telecommunications which includes regulations of general and special nature acts on the territories of the State Parties of the CIS. These regulatory legal acts regulate activities of state bodies, organizations and citizens in the field of communication, processes of forming and market development of telecommunication services, and also establish powers of state bodies concerning regulation of the market of telecommunication services.

Forming of system of regulatory legal acts in the field of communication of the State Parties of the CIS began approximately at the same time, generally in 1995 based on regulatory legal acts of the USSR. In the states members of the CIS the fundamental laws determining activities in the field of communication are adopted: "About communication" - Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Turkmenistan; "About electronic communication" - Armenia, Uzbekistan, Ukraine; "About telecommunication" - Moldova. Except fundamental laws are also accepted or there are in development stage other laws supporting and developing the fundamental law in the field of communication: "About informatization" - Kyrgyzstan, Tajikistan, Uzbekistan; "About radio-frequency range" - Turkmenistan, Uzbekistan, Ukraine; "About information, informatization and information security" - Azerbaijan, Belarus, Russia.

In 2010 the Government of the Republic of Belarus within the carried-out work on liberalization of economy and stimulation of development of the competition in the field of telecommunication accepts number of the legal acts directed to enhancement of use of national segment of the Internet and development of data transmission network (Presidential decrees of the Republic of Belarus of February 1, 2010 No. 60 and of September 30, 2010 No. 515 respectively).

The majority of the specified laws are changed or issued in the new edition after 1999, in the period of modern system of state regulation of economy, and in this regard (is at least declarative) in them the competition development purpose is set.

1.1.1. Licensing

Provision of services of communication is possible only based on the corresponding license. The regulations devoted to licensing of telecom operators and certification of the equipment used by them determine possibilities of development of the competition by creation of barriers of entrance to potential competitors. The and clear rules of licensing and certification are more accurate, the probability of development of fair competition is higher. At the same time the regulations devoted to licensing and certification determine possibilities for extraction of rent and development of corruption in the industry control system and supervision. Possibilities of the last depend in no small measure on what body - industry or independent - is responsible for licensing and certification of the equipment and in what degree its activities are regulated by rules, external in relation to this body.

As a rule, lists of the licensed types of activity in the field of communication are determined or the governments of the states (for example, in the Russian Federation), or the industry ministries.

Licensing authorities are the industry ministries or state supervision bodies behind communication.

The term of consideration of the request for receipt of the license constitutes, as a rule, from 20 to 60 days.

At the same time there are essential distinctions as in lists of the licensed types of activity which in the different states contain from 3 to 20 types of activity, license effective period (from 2 to 25 years depending on license type), and in the procedure of issue of licenses.

In the territory of the Republic of Armenia the following types of activity in the field of communication are subject to licensing: rendering voice services, rendering mobile services, rendering services in data transmission and Internet access, and also public network of electronic communications (this license type also includes rendering services in all types of rendering services in the field of the telecommunications which are subject to licensing except services of broadcasting of radio-telecasts).

In the Republic of Belarus since 2010 according to the Law "About Licensing of Separate Types of Activity" are licensed for a period of 5 years (in some cases, established by the legislation, - for 10 years) 12 types of activity in the field of communication, including: provision of the international, local telephone connection; radio broadcast of television programs; services of the satellite fixed and mobile telecommunication; services of cellular mobile telecommunication, etc.

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