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MONTENEGROAGENCY FOR ELECTRONIC COMMUNICATIONSAND POSTAL SERVICESGodišnji

izvještaj2015

Annual Report

2015CRNA GORA

AGENCIJA ZA ELEKTRONSKE KOMUNIKACIJEI POŠTANSKU DJELATNOST

AGENCY FOR ELECTRONIC COMMUNICATIONS ANDPOSTAL SERVICES

ANNUAL REPORT 2015

Podgorica, April 2016

5Annual report 2015

CONTENTS

INTRODUCTION ............................................................................................................................................................................................................................................... 5

1. DEVELOPMENT OF ELECTRONIC COMMUNICATIONS SECTOR .................................................................................................................................................... 91.1. An overview of registered operators of electronic communications in 2015 .................................................................................................................................................. 91.2. Fixed telephony markets ........................................................................................................................................................................................................................................................... 91.3. Mobile telephony market .........................................................................................................................................................................................................................................................161.4. Internet and broadband access market ............................................................................................................................................................................................................................30

1.4.1. Fixed broadband Internet access ................................................................................................................................................................................................................................301.4.2. Mobile broadband Internet access ........................................................................................................................................................................................................................... 361.4.3. Internet penetration ..........................................................................................................................................................................................................................................................371.4.4. Prices of broadband Internet access in Montenegro and comparison with the neighbouring countries ............................................................................ 38

1.4.4.1. Prices of broadband access by Crnogorski Telekom ........................................................................................................................................................................... 381.4.4.2. Prices of broadband access by M:tel ......................................................................................................................................................................................................... 391.4.4.3. Prices of broadband access by Telemach ...............................................................................................................................................................................................401.4.4.4. Prices of broadband Internet access compared to the Region ....................................................................................................................................................41

1.4.5. Measuring Internet access speed ............................................................................................................................................................................................................................. 421.4.6. Establishing the National Exchange Point of the Internet traffic in Montenegro ............................................................................................................................ 43

1.5. Market of VoIP service .................................................................................................................................................................................................................................................................441.6. Market of leased lines ................................................................................................................................................................................................................................................................ 45

1.6.1 Prices of the service of leased lines ..........................................................................................................................................................................................................................461.6.2 Market structure ................................................................................................................................................................................................................................................................. 47

1.7. Market of distribution of AVM content (radio and TV programs) to end-users ..........................................................................................................................................481.8. Interconnection and operator access ................................................................................................................................................................................................................................50

1.8.1. Prices of interconnection services ............................................................................................................................................................................................................................501.8.1.1. Prices of call termination on fixed networks ...........................................................................................................................................................................................501.8.1.2. Prices of call termination on mobile networks ..................................................................................................................................................................................... 52

1.8.2. Market of call termination............................................................................................................................................................................................................................................ 541.8.2.1. Market of call termination on fixed networks ....................................................................................................................................................................................... 541.8.2.2. Market of call termination on mobile networks ................................................................................................................................................................................. 55

1.9. Service of number portability ................................................................................................................................................................................................................................................561.10. Joint use of electronic communications infrastructure ........................................................................................................................................................................................... 571.11. Monitoring of the quality of electronic communications services .....................................................................................................................................................................601.12 Degree of development of electronic communications networks ......................................................................................................................................................................61

1.12.1. Degree of development of fixed electronic communications networks................................................................................................................................................611.12.2. Degree of development of mobile electronic communications networks ......................................................................................................................................... 62

2. IMPOSED REGULATORY MEASURES ..................................................................................................................................................................................................... 632.1. Analysis of relevant markets in order to assess the degree of market competitiveness .......................................................................................................................... 63

2.1.1. The European Union regulatory framework for electronic communications ....................................................................................................................................... 632.1.2. Legal basis for the implementation of the procedures of definition and analysis of relevant markets .................................................................................642.1.3. Implementation of the second round of analyses of 5 (five) relevant markets .................................................................................................................................64

2.1.3.1. Chronological sequence of the activities of the Agency during the second round of the analyses of 5 (five) relevant markets conducted in 2015 with an overview of the introduced regulatory measures ...................................................................................................65

2.1.4. Supervision over the implementation of regulatory obligations of operators with significant market power prescribed by the Agency’s decisions, resulting from the conducted second round of analysis of seven relevant markets in 2013 ......................................................692.1.5. Supervision over the implementation of regulatory obligations of operators with significant market power in the retail market of broadband access to Internet with fulfilled criteria of the Three Criteria Test in 2013 with an overview of the introduced regulatory obligations ............................................................................................................................................................................................................. 73

2.2. Project of accounting separation and cost accounting ............................................................................................................................................................................................ 742.2.1. Legal basis for the implementation of the obligation of accounting separation and cost accounting ................................................................................. 742.2.2. The purpose of the introduction of accounting separation and cost accounting ......................................................................................................................... 752.2.3. Chronology of the Agency’s activities on the implementation of the Project of accounting separation and cost accounting in 2015 ............................................................................................................................................................................................................................................................ 762.2.4. Activities of the Agency on the implementation of the Project of accounting separation and cost accounting in fixed telephony ........................................................................................................................................................................................................................................................... 792.2.5. Activities of the Agency on the implementation of the Project of accounting separation and cost accounting in mobile telephony ............................................................................................................................................................................................................................................................................ 79

3. DEVELOPMENT AND QUALITY OF uNIVERSAL SERVICE IN ELECTRONIC COMMUNICATIONS SECTOR ........................................................................803.1. Regulatory framework for the provision of Universal Service ..............................................................................................................................................................................80

3.1.1. Regulatory framework of the European Union.....................................................................................................................................................................................................803.1.2. Regulatory framework in Montenegro ....................................................................................................................................................................................................................80

3.2. Activities of the implementation of Universal Service ..............................................................................................................................................................................................803.2.1. Provision of the service of Universal Telephone Directory and Universal Enquiry Service ...........................................................................................................813.2.2. Provision of the service of access to electronic communications network, telephone calls and Internet access ..........................................................82

3.3. Quality of Universal Service in electronic communications sector ..................................................................................................................................................................... 833.4 Selection of new operators of Universal Service in the sector of electronic communications ............................................................................................................84

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4. ASSIGNED LIMITED RESOURCES ............................................................................................................................................................................................................864.1. Assigned radio-frequencies and assessment of their rational use .........................................................................................................................................................................86

4.1.1. Assigned radio-frequencies ............................................................................................................................................................................................................................................864.1.2. Analysis of occupancy of the most significant radio-frequency bands ..................................................................................................................................................87

4.1.2.1. Fixed and mobile services ...............................................................................................................................................................................................................................874.1.2.2. Maritime and aeronautical services ...........................................................................................................................................................................................................894.1.2.3. Radio amateur service .......................................................................................................................................................................................................................................904.1.2.4. Satellite service ....................................................................................................................................................................................................................................................904.1.2.5. Broadcasting service ..........................................................................................................................................................................................................................................90

4.1.3. Inefficient use of radio-frequencies ..........................................................................................................................................................................................................................914.1.4. International coordination of radio-frequencies ................................................................................................................................................................................................91

4.2. Assigned numbering/addresses and assessment of their efficient use .............................................................................................................................................................924.3. Use of the Single European Emergency Number nnn“112” .......................................................................................................................................................................................95

5. DEVELOPMENT OF THE POSTAL SERVICE MARKET .........................................................................................................................................................................975.1. Regulatory framework .................................................................................................................................................................................................................................................................975.2. Development of secondary legislation .............................................................................................................................................................................................................................975.3. The analysis of the postal services market .......................................................................................................................................................................................................................97

5.3.1. Montenegro Post ..............................................................................................................................................................................................................................................................975.3.2. Other operators ...............................................................................................................................................................................................................................................................995.3.3. A comparative analysis of the postal services markets ................................................................................................................................................................................100

5.4. Financial indicators ...................................................................................................................................................................................................................................................................... 1015.4.1. Financial indicators of Montenegro Post a.d. ...................................................................................................................................................................................................... 1015.4.2. Financial indicators of other operators ............................................................................................................................................................................................................... 1025.4.3. Comparative financial indicators of Montenegro Post a.d. and other operators ............................................................................................................................ 103

5.5. Methodology of keeping accounting separation of the Universal Postal Service operators ............................................................................................................... 103

6. DEVELOPMENT AND QUALITY OF UNIVERSAL POSTAL SERVICE .............................................................................................................................................. 1046.1. Availability of postal services ............................................................................................................................................................................................................................................... 1046.2. Speed and reliability of transfer and delivery of postal items ............................................................................................................................................................................ 1046.3. Security of postal items .......................................................................................................................................................................................................................................................... 106

7. EXERCISE OF RIGHTS AND PROTECTION OF INTERESTS OF USERS OF ELECTRONIC COMMUNICATIONS AND POSTAL SERVICES ........................................................................................................................................................................................................................... 107

7.1. Exercise of rights and protection of interests of users of electronic communications and postal services.................................................................................. 1077.2. Exercise of rights and protection of interests of postal services users ........................................................................................................................................................... 1097.3. Administrative procedures upon the requests of entities in the markets of electronic communications, and resolving disputes between such entities .............................................................................................................................................................................................................. 110

7.3.1. Administrative proceedings initiated in 2015 on the basis of market analysis .................................................................................................................................... 1107.3.2. Administrative proceedings initiated in 2015 on the basis of annual regulatory fees Telenor d.o.o. ...................................................................................... 1117.3.3. Administrative proceedings initiated in 2015 regarding the compensation of net costs for Universal Service in electronic communications ..................................................................................................................................................................................................................................... 1117.3.4. Proceedings initiated in 2015 in relation with user protection in electronic communications ................................................................................................. 1117.3.5. Proceedings initiated in 2015 on the basis of misdemeanour orders issued by supervisors .......................................................................................................1127.3.6. Proceedings initiated in 2015 before the Commercial Court ......................................................................................................................................................................1127.3.7. Administrative proceedings initiated in 2015 under the Law on Postal Services ...............................................................................................................................112

8. COMPLETED TASKS BY THE AGENCY SCHEDULED BY WORK PLAN .......................................................................................................................................... 1138.1. Development of regulations in the area of electronic communications ...........................................................................................................................................................1138.2. Participation in the work of the World Radiocommunication Conference ....................................................................................................................................................1138.3. Control and monitoring of radio-frequency spectrum ............................................................................................................................................................................................. 1148.4. Monitoring of parameters of digital radio emissions of mobile operators ................................................................................................................................................... 1188.5. Activities of further implementation of the RF spectrum control and monitoring system.....................................................................................................................1218.6. Switchover from analogue to digital broadcasting systems ..................................................................................................................................................................................1258.7. Study on the possibilities of introduction of digital radio in Montenegro .................................................................................................................................................... 1268.8. Public bidding for issuing the approval for the use of radio-frequencies in the bands 800 MHz, 900 MHz, 1800 MHz, 2 GHz and 2,6 GHz for the implementation of public mobile electronic communications networks ......................................................................................................... 1268.9. Expert supervision in the area of electronic communications ............................................................................................................................................................................ 1288.10. Data submission and giving opinion for spatial planning documents ............................................................................................................................................................ 1298.11. The issuance of technical requirements for the construction of residential and office buildings ................................................................................................... 1308.12. Postal services customer satisfaction survey ................................................................................................................................................................................................................1318.13. Development of human resources .................................................................................................................................................................................................................................... 1328.14. International activities ............................................................................................................................................................................................................................................................. 133

8.14.1. Activities of the regulation of roaming prices in the Region .................................................................................................................................................................... 1338.14.2. Membership in European Telecommunications Standards Institute (ETSI) .......................................................................................................................................1348.14.3. Organization of the meeting of the International Project Team for Technical and Regulatory Issues (BEREC)...............................................................134

8.15. Organization of the International Conference “Regulatory activities in the electronic communications sector” ....................................................................1358.16. European integration – Chapter 10: Information society and media ...............................................................................................................................................................1368.17. European integration – Chapter 8: Competition and state aid ............................................................................................................................................................................ 1378.18. European integration - Chapter 3: Right of establishment and freedom to provide services ..............................................................................................................1388.19. European integration – Chapter 1: Free movement of goods ...............................................................................................................................................................................1388.20. European integration – Chapter 28: Consumer and health protection ..........................................................................................................................................................138

ANNEX 1: CONTENTS OF THE AGENCY 2015 WORK PLAN ................................................................................................................................................................139

INTRODUCTION

The Agency for Electronic Communications and Postal Services (hereinafter referred to as: “the Agency”) started its work on 8 March 2001, as an independent regulatory authority for the field of electronic communications and postal services, functionally independent of all entities which exploit telecommunication networks, provide equipment or provide services. The basic principles that the Agency has applied in the activities related to sector regulation have been the following: to provide secure and predictable environment for business operations of the operators and their significant investments; to create conditions for the implementation and development of new technologies in the whole territory of Montenegro, with the promotion of rational utilization of limited resources (radio-frequencies and numbering/addresses); to promote competition and prevent the distortion of market competition among operators; to resolve disputes between operators, and to constantly improve the protection of the interests of customers.

Managing bodies of the Agency under the Law on Electronic Communications are the Council of the Agency and the Executive Director of the Agency. The Agency’s Council has the President and four members of which one member of the Agency’s Coun-cil performs his/her function on part-time basis. In 2015, the Agency’s Council held 12 regular and 85 extraordinary meetings. At the Agency on 31 December 2015 there were 69 employees employed by the Agency, including the President, the Council members and the Executive Director.

The Agency carries out its activities in accordance with its respon-sibilities stipulated by the Law on Electronic Communications (Official Gazette of Montenegro, 40/13, 56/13) and the Law on Postal Services (Official Gazette of Montenegro, 57/11). The Law on Electronic Communications has been aligned with the appli-cable regulatory framework of the European Union from 2009.

The 2015 Annual Report of the Agency has been prepared in line with the Law on Electronic Communications (Article 26), and it consists of eight chapters as follows:

- Development of electronic communications sector;- Introduced regulatory measures;- Achievement and quality of the Universal Service in

the electronic communications sector;- Assigned limited resources;- Development of the postal services market;- Achievement and quality of the universal postal service;- Exercise of rights and protection of interests of the users

of electronic communications and postal services, and- Performed Agency’s tasks established by the Work Plan.

The electronic communications networks and electronic communications infrastructure in Montenegro enable the ap-plication of the most modern technology for the provision of electronic communications services. Through such networks and infrastructure users in Montenegro are now offered almost all existing electronic communications services provided in the world which currently meet the needs of users of these services. All major operators have conducted migration of their networks to All-IP environment, and over a single IP based network voice transmission services, data transmission and distribution of the AVM content can be provided.

Given the number of users, degree of competition, variety of services and applied technologies, it can be considered that mobile communication networks and services represent the most developed segment of the electronic communications market in Montenegro. Montenegro can compare with the most developed countries of Europe when it comes to the coverage of the population by the mobile networks signal. Actually, all three operators point out that 99% of the population is covered by GSM signal (data obtained through the software prediction), which places Montenegro among the countries with extremely good coverage of the population. The coverage of the territory by GSM signal includes all populated areas, main roads (including tunnels) and tourist centres and accounts for over 90% of the total territory of Montenegro(data obtained through the software prediction). The signal coverage by UMTS networks is also at a high level and includes all urban settlements and a significant part of suburban and rural areas. By implementation of the UMTS technology in the 900 MHz band, the population coverage by 3G signal has significantly been improved and accounts for about 97% in the Telenor network, about 94% in the Crnogorski Telekom network, and about 90% in the M:tel network (data obtained through the software prediction). The LTE technology is currently available in urban areas of all municipalities, with the exception of the newly-established municipalities of Gusinje and Petnji-ca, primarily through the LTE network of Crnogorski Telekom. Telenor has covered by the LTE network signal urban parts of all towns in the central and southern regions and major towns in the northern region (services are not available in Andrijevica, Gusinje, Kolašin, Mojkovac, Petnjica, Plužine, Šavnik and Žabljak). The degree of coverage of the population by the LTE network signal of Crnogorski Telekom is over 65%, and of Telenor about 45% (data obtained through the software prediction). In 2015 Crnogorski Telekom and Telenor have improved the capacity and accessibility of the LTE network, while M:tel was focused on the development of the UMTS network, particularly in rural areas. Major progress in availability of mobile broadband services of data transfer, particularly in rural and poorly populated areas is expected through the valorisation of the 800 MHz bands (data obtained through the software prediction).

The Agency shall allocate the funds in the total amount of € 311,091.00 for the Budget of Montenegro in line with Articled 27 of the Law on Electronic Communications which prescribes that “If the financial statement indicates that the total revenues generated by the Agency exceed the total expenses, the excess revenue shall be paid to the budget of Montenegro.”

In 2015 the Agency carried out a second round of the analyses of five relevant markets in line with the Decision on initiation of the second round of the analysis of relevant markets of services which are subject of verification of the fulfilment of the Three Criteria Test (Official Gazette of Montenegro, 09/15). Also, in 2015 the Agency conducted supervision of the implementation of regulatory obligations of the operators with a significant market power prescribed by the decisions of the Agency which are a result of the conducted second round of analyses of 7 (seven) relevant markets and supervision of implementation of regulatory obligations of the operators with a significant market power in the retail market of the broadband access to the Internet in

7Annual report 2015

which the fulfilment of the conditions from the Three Criteria Test has been proven.

In 2015, the Agency continued its activities on the Project of accounting separation and cost accounting based on the current cost accounting and the Agency issued a decision on accepting the conducted activities of Crnogorski Telekom within the Project of accounting separation and cost accounting for fixed network. In line with the results of the cost accounting model for the fixed network, the Agency imposed to Crnogorski Telekom the obligation to reduce the prices of national long distance calls by 10%, prices of calls to mobile networks by 30% and prices of international calls to all zones and types of networks by 10%. Also, the prices of access to the Internet via ADSL are reduced by 15% for all ADSL packages intended for residential and business users. In addition to the above mentioned reduction of prices of retail services, Crnogorski Telekom reduced in line with the Decision of the Agency wholesale prices of access to the Internet by 30%, which will create more favourable conditions for the entrance of other operators which would provide the Internet access services in the market of Montenegro. In the market of terminating or trunk segments of leased lines, irrespective of the technology used to provide leased or awarded capacity – wholesale level, Crnogorski Telekom, in line with the Decision of the Agency on designation of the operator with significant market power in the relevant market reduced the prices of connections for Ethernet leased lines (transmission capacities of 10 Mb/s, 100 Mb/s, 500 Mb/s and 100 Mb/s) (one-off fees) to the level of retail prices of the connection of the leased line with the transmission capacity of 100Mb/s i.e. they were reduced by 20%.

Also in 2015 the Agency issued decisions on accepting the con-ducted activities of the mobile operators within the Project of accounting separation and cost accounting based on the current cost accounting (CCA) as a cost basis and long-term incremental costs (LRIC) as the accounting methodology for mobile networks, Accordingly, the Agency obliged the mobile operators with its decisions to harmonize prices of relevant services with the re-sults of the cost accounting model, i.e. to reduce the prices of wholesale services of termination and origination of calls by 38%.

In 2015, the provision of the Universal Service was continued in Montenegro according to applicable regulation. The business company of Teleinfo.me d.o.o. provided services of Universal Telephone Directory and Universal Directory Enquiry Service via number 1180, which is accessible from all public electronic communications networks in Montenegro. In 2015, there were 131,743 calls to 1180 which makes an increase of 10.53% compared to 2014. The business company Telenor d.o.o. Podgorica provided the following services: fulfilment of any reasonable user’s request for the connection to the public telephone network at the fixed location; making all kinds of telephone calls; data transmission via telefax and data transmission at the rates suitable for a functional Internet access, as well as providing benefits for the disabled users and users with low income. In October 2015, Telenor put into op-eration a new 2G/3G radio base station at a location of Nudo in the municipality of Nikšić, which provides to the local population from the municipal district (MD) of “Nudo” access to electronic communications network through the Universal Service. In 2015 requests were submitted for the Universal Service connections in the villages of Barice and Bliškovo (municipality of Bijelo Polje). The Agency approved building of radio base stations to cover these areas. In 2015 the Agency conducted a public competition for the designation of the Universal Service operator for the

period of five years. Crnogorski Telekom was designates as the Universal Service operator (provision of the connection to the network, telephone calls and access to the Internet) and M:tel (Universal Telephone Directory and Universal Directory Enquiry Service). The selected operators of the Universal Service started providing the Universal Service services on 26 January 2016.

The Agency has rationally managed the radio-frequencies spec-trum as a limited resource. In 2015 the Agency issued 863 and re-voked 139 decisions on the approval for the use radio-frequencies. In 2015 Agency conducted regular and extraordinary controls and monitoring of the radio-frequency spectrum in the 10 kHz to 3 GHz bands from the Main control-measuring centre in Dajbabska gora in the area of the capital of Podgorica; from the Regional control-measuring centre at Crni rt in the municipality of Bar; from the Remote-controlled control-measuring station at Crljenice in the municipality of Pljevlja and from the Remote-controlled control-measuring station in Bijela crkva in the municipality of Rožaje and from the Remote-controlled control-measuring station in Trojica in the municipality of Kotor. In other municipalities, control and monitoring of the radio-frequency spectrum was performed by using a mobile control-measuring station and a digital mobile control-measuring station for the monitoring of the parameters of quality and GSM/UMTS networks coverage. Considerable efforts have been made in terms of planning the use of radio-frequency resources in the form of the adoption of appropriate allotment plans for different radio-communication services and different radio-frequency bands, in accordance with the Radio-Frequency Spectrum Allocation Plan. Great attention was paid to the international coordination of radio-frequencies, and we would like to highlight the signing of a trilateral Tech-nical Agreement on border coordination of the GSM systems in the frequency band 880-915 / 925-960 MHz and 1710-1785 / 1805-1880 MHz between Montenegro, Croatia and Bosnia and Herzegovina as a great success.

According to the Law on Electronic Communications, the super-vision of the work of operators registered with the Agency for Electronic Communications and Postal Services is carried out by the Agency through its supervisors for electronic communications. In 2015, the total of 196 visits was carried out of which 162 were planned supervisions, and 34 were extraordinary supervisions.

The service of number portability in 2015 was used by 6,832 sub-scribers, which is by 44% more than in 2014. As in the previous years, in 2015 this service was mostly used by the subscribers of mobile telephony – 5,776 of them, while in the fixed telephony a total of 1056 numbers was ported. The service of number portability has been used since 1 December 2011 and by 31 De-cember 2015, a total of 20,020 numbers were ported, of which 2,318 numbers in the fixed and 17,702 numbers in the mobile networks were ported.

In 2015 four new operators were entered into the Registry of Operators which is kept by the Agency for Electronic Commu-nications and Postal Services and at the end of the year a total of 55 operators were registered at the Registry of Operators.

The total volume of realized postal services by all postal op-erators in 2015 amounted to 21,840.887 and compared to 2014 it increased by 5.9% or 1,210.092 realized postal services. Mon-tenegro Post rendered a total of 21,493.420 postal services in 2015, of which 14,502.760 related to the universal postal services, and 6,990.660 to commercial postal services. The total physical volume of postal services realized by other postal operators in

INTRODUCTION

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2015 amounted to 347,467 which is by 53.3% more than in 2014.

The activities aimed at the improvement of rights and protection of users’ rights continued in line with provisions of the Law on Electronic Communications. In 2015, the users of public commu-nications services submitted 317 complaints against the operators’ decisions following users’ complaints, of which 305 were resolved in 2015, while 12 complaints were transferred to 2016 for further processing. Out of the total number of resolved complaints in 2015, 82 were accepted, 57 rejected and to 38 users’ complaints the Agency replied with instructions for further actions with references to relevant provisions of the Law or simply with some references, while in relation with 86 complaints the conclusion was made about the dismissal of the action, and in relation to 42 complaints a conclusion on the dismissal due to the lack of jurisdiction or complaints that were not submitted in a timely manner the conclusion was issued. The protection of the postal service users is regulated by the Law on Postal Services (Official Gazette of Montenegro, 57/11). In 2015, the Agency was filed one complaint by the postal service users which referred to non-de-livery of the postal items by Montenegro Post. In 2015 the Agency resolved disputes between the entities in the market of electronic communications while cooperating with institutions responsible for the protection of competition and users’ protection.

According to Article 38 of the Law on Spatial Planning and Con-struction of Structures, the Agency, in the capacity of the legal entity responsible for telecommunications, shall at the request of the contractor of preparatory works, submit available data and its proposals and opinions necessary for the development of a planning document. In this regard, the Agency submitted 42 letters in 2015 containing appropriate data and recommendations for the development of spatial-planning documents. Also, in accordance with Article 39 of the Law on Spatial Planning and Construction of Structures, the contractor of preparatory works shall submit along with the draft planning document the opinions of competent authorities, institutions and public enterprises of the local self-government. Accordingly, the contractors of preparatory works (bodies of the local self-government and the Ministry of Sustainable Development and Tourism) shall seek the Agency’s opinion on the submitted draft spatial-planning documents. For this purpose the Agency issued its opinions on 81 draft spatial-planning documents in 2015.

Until November 2015 the Agency issued technical requirements for the construction of facilities. In 2015 the Agency issued technical requirements for the construction of 245 structures.

At the international level, collaboration with the International Telecommunication Union (ITU) was continues as well as with the European Conference of Postal and Telecommunications Administrations (CEPT), the Body of European Regulators for Electronic Communications (BEREC), the Universal Posta Union (UPU), the European Committee for Postal Regulation (CERP), and other institutions, organizations and regulatory authorities from the neighbouring countries. In cooperation with the International Telecommunications Union (ITU) the International Conference of Regulatory Agencies of the Central and South-Eastern Europe was successfully organized. Over 100 registered participants from 14 national regulatory bodies and international institutions took part at the conference.

In 2015 the Agency completed all the activities that were planned by the 2015 Work Plan adopted by the Parliament of Montenegro at the eighth session of the second regular (autumn) meeting in

2014, i.e. by the Operational Plan for implementation of the 2015 Work Plan and the Work Programme of the Council for 2015.

The text below shows the most important statistical data related to the electronic communications sector at the end of 2015:

- The total number of installed connections with optical fibre - FTTx (FTTH, FTTB, FTTC) at the end of 2015 was 50,149, which is by 31.7% more than at the end of 2014. The total number of the connected FTTx connections at the end of 2015 was 19,532, which is by 82.3% more than at the end of 2014.

- At the end of 2015 a number of fixed subscriber lines amounted to 154,448 which corresponds to penetration of 24.91%. Compared to the previous year the number of fixed subscriber lines reduced by 2.58%.

- Digitalization of fixed connections in Montenegro was completed nine years ago, and in 2015 migration of Crnogorski Telekom network to IMS was conducted, which places our country according to this criterion among the developed European countries.

- The total number of ISDN connections at the end of December 2015 was 3,904 which is 704 connections more than at the end of 2014, of which 3686 were ISDN–BA connections, and 218 ISDN-PRA connections. Of the total number of ISDN connections, 48.03% referred to physical persons and 51.97% to legal persons.

- At the end of 2015 the number of mobile telephone users in Montenegro was 1,007.890, which corresponds to penetration of 162.55%. Of this number 607,741 or 60.30% were prepaid users and the remaining 400,149 or 39.70% were post-paid users.

- Based on the Study on the use of ICT in Montenegro, 68.1% of the population used the Internet in the past three months, which is by 4.2% more compared to the information from the 2014 Study.

- Crnogorski Telekom , which is the only company pro-viding ADSL service in Montenegro, at the end of 2015 had 66,545 ADSL users, of which 59,469 were physical persons and 7,076 were legal persons. The number of ADSL users recreased by 3.8% compared to 2014.

- At the end of 2015 a total of 5,645 users had Internet access via WiMAX. This number of users reduced by 20.5% compared to 2014.

- At the end of 2015, M-cable was the only operator which provides the Internet service via cable distribution systems (CDS) and it had 6,434 users, out of which 6,230 were physical persons and 204 legal persons. In 2015 the number of this type of users reduced by 32.6%, but mainly because other operators switched their users to the connections with optical fibre.

- The number of Internet access users via connection with optical fibre increased in 2015 by 38.6% compared to 2014, and at the end of 2015 there was a total of 17,466 users.

- The number of wireless access points (WiFi increased from 238 in 2014 to 272 in 2015.

- In 2015 the number of users with satellite Internet access reduced from 79 to 77, out of which 13 connections referred to physical persons and 64 to legal persons.

- The number of mobile broadband users with Internet access via data SIM cards in 2015 reduced by 17% com-pared to 2014and it encompassed 53,671 (Crnogorski Telekom: 21.439, Telenor: 32.232) . Operator M:tel does

9Annual report 2015

not have in its offer data SIM cards that are used for data transmission only, but in 2015 only data transmission traffic was realized with the total of 14.643 M:tel SIM cards. In 2014 this number was 10.708.

- Penetration of fixed broadband Internet access (users of ADSL, WiMAX, cable distribution systems, leased lines, FTTx and so on) at the end of 2015 was 18.1% of the total number of the population of the country, which makes an increase of 1.3% compared to 2014. When penetration is viewed in relation to the number of households, it accounts for 57.7 %, which makes an increase of 4.4% compared to penetration relating to the number of households in 2014.

- Penetration of mobile broadband access at the end of 2015 was 8.7%, which is a decrease of 1.7% compared to 2014. As it has already been mentioned, in line with the methodology, when calculating the penetration of mobile broadband Internet access, only users of data SIM cards were taken into account. If M:tel SIM cards are taken into account, from which only data traffic was conducted, then penetration of mobile broadband Internet access would be 11.0%.

- At the end of 2015, the number of connections for the AVM contents distribution service via CDS/MMDS/IPTV/DTH platforms was 168,226. It was increased by 14,324 or 9.31% compared to the end of 2014. Of the total number of connections 164,158 refer to physical persons, or 97.5%. Penetration of connections for the AVM contents distribution service in relation to the number of households in Montenegro was 84.27%.

- The total number of leased lines at the end of 2015 was 473. In comparison to 2014, the number of leased lines decreased by 4.8%.

- The total volume of traffic conducted in fixed networks in Montenegro in 2015 was 42,485,225 minutes which represents a decrease of 19.33% compared to 2014.

- The total volume of traffic conducted in mobile net-works in Montenegro in 2015 was 377,134,214 minutes which represents a decrease of 0.15% compared to 2014.

- Operators-owners of antenna masts leased space on antenna masts at 219 locations, which makes about 41% of the total number of antenna masts.

- Joint utilization is executed in facilities/buildings on a total of 174 locations, which accounts for about 27% of the total number of facilities/buildings.

- At the end of 2015, the joint use of telecommunication cable ducts was conducted in 11 Montenegrin munici-palities, with a total length of 350 km, which is by 35% more compared to the previous year.

The most important information related to the sector of postal activities is as follows:

- Postal operators provided in 2015 the total of 21,840.887 postal services, which was by 5.9 % more than in the previous year.

- Montenegro Post provided 21,493,420 postal services, which makes 98.9% of the total volume of services rendered, while other postal operators, eight of them, provided 347,467 postal services or 1.6% of the total volume of services rendered.

- In domestic postal traffic 21,075,793 postal services were realized or 96.5%, while in international postal traffic 765,094 postal services were realized or 3.5%.

- In 2015 Montenegro Post rendered 21,493,420 postal ser-vices, which is by 5.34% more compared to the previous year. Of the total number of rendered postal services, 14,502,760 were universal postal services and 6,999,660 were commercial postal services or in percentages 67.5% of the provided postal services refer to universal and 32.5 % refers to commercial postal services.

- In the structure of the volume of services in 2015, letter-post services had the largest share with 68.3%, being followed by cash transactions 28.9%. The volume of provided letter-post services in 2015 was higher by 5.3% compared to the previous year.

- The volume of cash operations increased by 5.2% compared to the previous year. The total cash payment transactions (pay in – pay out) make 51.6%, and paying bills at the post office counters makes 48.4%.

- There was a significant increase in parcel services, money order and express services compared to 2014.

- Montenegro Post rendered 76,933 parcel services in 2015, which in comparison to the previous year, when 75,920 services were rendered, makes an increase of 1.3%.

- Montenegro Post processed 217,629 money order services in 2015, which in comparison to the previous year when 143,081 money orders were processed which makes an increase of 52.1%.

- In 2015 Montenegro Post delivered 69,832 express services, which in comparison with the previous year when 51,890 express services were delivered makes an increase of 34.6%.

- The total physical volume of postal services realized by other postal operators in 2015 is 347,467 provided postal services, which was by 53.3% more compared to 2014 when the physical volume of provided postal services was 226,713.

- In the structure of express services rendered by other postal operators, Montenomaks Control & Logistics occupies a leading position with 37.21% of the market of express services provided by other operators in 2015. It is followed by City Express with 35.33% and DHL with 18.91%.

- In the structure of packet services provided by other operators, City Express occupies a leading position, covering 34.23% of the market of parcel services provided by other operators in 2015. It is followed by Montenomaks Control & Logistics with 33.1%, Junior 15.66% and DHAL with 11.41%.

- The leading position in the provision of express services in 2015 is occupied by Montenegro Post with 32.29% of the market share, and it is followed by Montenomaks Control & Logistics with 25.2%, City Express with 23.92%, Kingscliff Distribution Montenegro - DHL with 12.8%, Express courier - UPS with 2.43%, Junior with 1.49%, NTC with 0.75%, Tim Kop - TNT with 0.63% and Alo Kurir Express with 0.49%.

- The dominant position in the provision of parcel services in 2015 is occupied by the Montenegro Post with 27.67% market share, and it is followed by the City Express with 24.76%, Montenomaks Control & Logistics with 23.94%, Junior with 11.33%, Kingscliff Distribution Montenegro - DHL with 25.8%, Express courier - UPS with 2.51%, NTC with 1.07%, Alo Express Kurir with 0.27% and Tim Kop-TNT with 0.20%.

INTRODUCTION

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11Annual Report 2015

11. DEVELOPMENT OF ELECTRONIC

COMMUNICATIONS SECTOR

1.1. An overview of registered operators of electronic communications in 2015

The operator of electronic communications in terms of the Law on Electronic Communications is a natural or legal person, or an entrepreneur who provides or has a right to provide a public electronic communications service or provide the use of a pub-lic electronic communications network or a public electronic communications infrastructure and associated facilities.

A natural or legal person shall, before using, or an operator shall, prior to the termination or modification of the regime of the use of public electronic communications networks or the provision of public electronic communications services, submit an application to the Agency in writing at least 15 days prior to the beginning of the use of, or termination of or changes to the regime of the use of public electronic communications networks or the provision of electronic communications services.

The Agency shall, within seven days of the receipt of the complete application, enter the operator in the Registry of Operators or make a modification in or remove the operator from the Registry, and issue a certificate of registration, modification, or removal from the Registry.

At the end of 2015 there were 55 operators entered into the Agency’s Registry, which acquired the right to conduct the following activities:

- implement public fixed electronic communications networks based on fixed wireless access and provide public fixed electronic communications services;

- provide the services of public service of voice trans-mission via IP-based networks;

- provide the public service of Internet access;- provide the public service of leased lines;- implement public cable electronic communications

networks and provide public electronic communica-tions service of distribution of radio and television programs to end-users;

- provide public electronic communications services through its own functional network/system;

- implement public fixed electronic communications networks based on fixed wireless access (FWA) and provide public fixed electronic communications services;

- implement a public electronic communications network based on a wireless broadband access (BWA) and im-plement public electronic communications networks;

- provide the services of IP telephony, a call-back service and the service of information centre;

- provide the service of Internet access via wireless access systems in radio-frequency bands of 2.4 GHz and 5 GHz, intended for these systems;

- provide the services of leasing digital ducts for national and international lines;

- provide the service of leasing dark fibre;- provide the service of Internet access, VoIP, video

streaming, fax, voice service and ethernet connections (point-to-point) and IP transit.

In 2015, the following undertakings entered into the Registry of Operators:

1. “FIBRENET TELECOM” Ltd. Podgorica, registered as the operator of public fixed electronic communications network for the services of publicly available telephone services in fixed electronic communications network, service of access to the Internet and service of transfer and distribution of audio-visual media contents (except for terrestrial radio-broadcasting).

2. “ANTARES - MNE” Ltd. Bar, registered for the provision of public fixed electronic communications networks (fixed wireless access to 5GHz) for the services of access to Internet.

3. “SITEX IT-SOLUTIONS” Ltd. Podgorica, registered as the operator of public electronic communications services of the access to Internet and data transmission.

In 2015 the following operators were removed from the Registry of Operators:

1. “W-NET” Ltd. Ulcinj,2. “VIP BROADBAND MONTENEGRO” Ltd. Nikšić3. “VOX” Ltd. Podgorica,4. “ZIREX” Ltd. Kotor,5. “Red Line Corp” Ltd. Podgorica.

1.2. Fixed telephony markets

In 2015 the services of fixed telephony in the territory of Monte-negro were provided by Crnogorski Telekom A.D., whose majority owner is Magyar Telecom, and M:tel D.o.o.., owned by Serbian Telekom and Telekom of the Republic of Srpska.

At the end of 2015, the number of fixed subscriber lines was 154,448 which corresponded with the penetration of 24.91%. In comparison with the previous year, the number of fixed subscriber lines decreased by 6.21%.

Trends in the number of fixed subscriber lines in Montenegro along with the overview of penetration is given in the Figure below.

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1. DEVELOPMENT OF ELECTRONIC COMMUNICATIONS SECTOR

Number of fixed lines Penetration

The fact that the number of fixed subscriber lines slightly decreased shows that regardless of the existence of the so-called fixed-to-mobile substitution, fixed telephony still has customers opting for this type of services.

Out of the total number of fixed telephony connections, Crnogorski Telekom had 148,559 connections and M:tel 5,889 connections, or in percentages 96.19% goes to Crnogorski Telekom and 3.81% goes to M:tel. M:tel provides services of fixed telephony via fixed wireless access - WiMax network (assigned numbering 078), rendered in the radio-frequency band of 3.4 – 3.6 GHz.

The participation of fixed telephony operators per number of connections is shown in the Figure below:

The degree of digitalization of fixed connections in Montenegro has been 100% for nine consecutive years, which places our country according to this criterion in the group of developed European countries.


1Digitalization

The total number of ISDN connections at the end of December 2015 was 3,904 (by 704 connections more than at the end of 2014), of which 3,686 connections were ISDN–BA and 218 were ISDN-PRA connections. Out of the total number of ISDN connections 48.03% referred to natural persons and 51.97% to legal persons. The total number of ISDN voice channels at the end of 2015 was 13,912 (calculated according to the formula 2×ISDN-BA + 30×ISDN-PRA). Trends regarding the number of ISDN lines in the period 2006-2015 are shown in the following Figure.

The number of ADSL connections at the end of 2015 was 69,545, which means that second year in a row the decline in the number of connections is recorded. Out of this number of ADSL connections, 59,469 connections or 89.37% referred to natural persons and 7,076 or 10.63 % to legal persons.

Trends in the number of ADSL connections in the period 2010 to 2015 showing the ratio of connections by categories of natural and legal persons is given in the following Figure.

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Natural persons

Legal persons

Total

Migration to IMS platform

In November 2015, Crnogorski Telecom completed the process of migration of the users of fixed telephony to the IMS system (IP Multimedia SubSystem).

As of 2011 to November 2015 around 150,000 users of Crnogorski Telekom migrated to the IMS platform where 2/3 of users apart from the voice service also have the BB (Broadband- Internet or IPTV) service. The new technology allows the shorter time of activation of service and gives basis for new, innovative services in the future.

Comparison of prices of the fixed telephony of the operators operating in the market of Montenegro

For the sake of comparison of the prices of fixed telephony between Crnogorski Telecom a.d. and M:tel d.o.o. one package of each of the operators with the highest number of users in the given package were taken as follows: Standard package of Crnogorski Telecom a.d. and Tel package of M:tel a.d.

Operator Crnogorski Telekom a.d. M:tel d.o.o.

Package Standard package(billing is at 60+1 seconds)

Tel package(billing is at 15 seconds)

Monthly fee for network access 6.07 0

Monthly subscription 0 5.085

Calls within network, local0.0149 = at peak time

0.0107= at off peak time0.015

Calls within network, intercity 0.0268 = at peak time

0.0188= at off peak time

MN mobile networks 0.117 = at peak time

0.079 = at off peak time0.125=Mobile M:tel0.192= Mobile CG

International calls to fixed networks in Serbia

0.131 0.295

International calls to mobile networks in Serbia

0.2035 0.295

International calls to fixed networks in the Region

0.1178 0.203-0.254

International calls to mobile networks in the Region

0.2678 0.203-0.254

International calls to fixed networks in Europe

0.1607 0.254

International calls to mobile networks in Europe

0.2999 0.254


1Connection charges in fixed network

The connection charge related to the fixed network in Montenegro at the end of 2015 was EUR 20.34 VAT included. This price refers to both categories of users (natural and legal persons). The following Figure shows the comparison with the neighbouring countries with VAT included.

As for comparisons with charges in the Region, it can be concluded on the basis of the previous Figure that the connection charge to the fixed network in Montenegro is around the average of this charge in the countries of the region (EUR 19.02). The average charge of connections in the EU countries is EUR 47.24, meaning that the charge of Crnogorski Telecom is by 56.94% lower than the mentioned average.

Monthly subscription fee

Monthly subscription fee for the fixed telephony users of Crnogorski Telekom is EUR 6.07. The Figure below illustrates the com-parison with neighbouring countries:

EU average: 15.00 €

Based on the Figure it can be concluded that monthly subscription fee in Montenegro of EUR 6.07 is slightly above the average compared to the countries in the region (EUR 5.95). Average monthly subscription fee in the EU countries is EUR 14.03, meaning that the monthly subscription fee in Montenegro is by 56.72% lower than the average monthly subscription fee in the EU countries.

Prices of local calls

The Figure below shows the prices of 10-minute local calls in the countries of the region. Prices are expressed in EUR with VAT included.

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EU average: 41.00 € cens

Based on the Figure, it can be concluded that the prices of a 10-minute local call on the network of the incumbent operator in Montenegro (14.90 €cents, with VAT included) are under the average of these price in the countries of the region (22.54 €cents, with VAT included).

The average 10-minute local call in the EU countries is 0.62€, while the price of 10-minute local call offered by Crnogorski Telecom is 0.149€ that is 75.79% less than the average price of a 10-min local call in the EU countries.

Prices of intercity (national) calls

The Figure below presents the prices of 10-minute national (intercity) calls on the network of the incumbent operator and an alternative operator in the countries of the region. Prices are expressed in EUR, with VAT included.

Based on the Figure it can be concluded that prices of a 10-minute intercity call on the network of the incumbent operator in Montenegro (26.80 €cents, with VAT included) are under the respective average price in the countries of the region (30.60 €cents, with VAT included).

The average price of a 10-minute national call in the EU countries is 0.79€, while the price of a 10-minute national call offered by Crnogorski Telecom is 0.268€, which is 66.16% lower than the average price of the national call in the EU countries.

Price of calls to mobile networks in Montenegro

The following Figure shows the prices of a 10-minute call from the network of the incumbent operator to mobile networks in countries of the region. The prices are expressed in EUR with VAT included.

EU average: 72.00 €cents


1

Based on the Figure it can be concluded that the price of a 10-minute call from the network of the incumbent operator in Montene-gro to mobile networks in Montenegro is 1.17€, which is below the average of these prices in the countries of the region (1.32€ with VAT). The average price of a 10-minute call from fixed mobile networks in the EU countries is 1.54€, while the price of a 10-minute call to mobile networks offered by Crnogorski Telecom is 1.17€, which is 24.13% lower than the average price of a 10-minute call from fixed to mobile networks in the EU countries.

Prices of international calls

Considering the prices of international calls, the text below shows the prices of calls from fixed networks to fixed networks in Great Britain and the USA as a representative sample for the analysis of these prices. The Figure below shows the price of a 10-minute international call from the fixed network of Crnogorski Telekom (incumbent operator) to Great Britain expressed in EUR, with comparative prices of the same service in the countries of the Region.

It can be concluded that the cost of a 10-minute international call from the fixed network in Montenegro to Great Britain (1.607€ with VAT included) is below the average of these prices in the countries of the Region (2.33€).

The average price of 10-minute calls to the fixed networks in the UK in the EU countries is 1.85€, while the price of a 10-minute call to fixed networks in the UK offered by Crnogorski Telekom is 1.607€ which is 13.25% lower than the average price of a 10-minute call to fixed networks in UK in the EU countries.

The Figure below shows the price of a 10-minute international call from the fixed network to the USA, with comparative prices of this service in the countries of the Region.


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The price of a 10-minute international call from the fixed network of the incumbent operator (Crnogorski Telekom) to the USA is below the average price in the countries of the Region (2.94€) and below the average price in the EU Member States (3.53€), which means that the price of Crnogorski Telecom is by 70.12% lower than the mentioned average in EU.

1.3. Mobile telephony market

There are three mobile telephony telecommunications operators in the Montenegrin market: Telenor d.o.o, Crnogorski Telekom a.d. and M:tel d.o.o.

At the end of 2015, the number of mobile telephone users in Montenegro amounted to 1,007,890, which corresponded to the pen-etration of 162.55%. Out of this number 607,741 (60.30) were prepaid users while the remaining 400,149 (39.70) were post-paid users.

Compared to the end of 2014, the number of users is lower by 0.53%.

The biggest penetration in 2015 at the mobile telephony market of Montenegro was recorded in September, when it reached 180.23%, and the lowest was in March when it reached 154.92%.

The Figure below shows the trend of penetration in mobile telephony including 2015.

Number of fixed lines Penetration

Out of the total number of 1,007,890 mobile telephony users in Montenegro at the end of 2015, mobile operator Telenor had 390,573 users, Crnogorski Telekom 329,844 users and M:tel 287,473 users, or in percentages: Telenor 38.75%, Crnogorski Telekom 32.73% and M:tel 28.52%.


1The shares of prepaid and post-paid users, as well as the shares of individual mobile operators in the total number of users are shown in the Figure below.

Out of the total number of prepaid users amounting to 607,741, Telenor had 246,878, M:tel 186,083 and Crnogorski Telekom 174,780 users. Out of the total number of post-paid users amounting to 400,149, Crnogorski Telekom had 155,064, Telenor 143,695 and M:tel 101,390 users.

The respective shares of participation according to the number of prepaid and post-paid users of mobile operators in percentages are given in the following Figures.

Traffic volume and structure

In 2015 a total of 760,039,532 SMS messages were sent, of which the shares in the sent SMS messages by operators were as follows: Crnogorski Telekom 37.35%, M:tel 31.91%,and Telenor 30,74%. The market share of operators in the number of sent SMS messages in 2015 is shown in the Figure below.

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In 2015 all three mobile operators in Montenegro generated 1,809,750,604 minutes of outgoing traffic. The total outgoing traffic generated on the networks of Telenor was 38.46%, outgoing traffic generated on the Telekom network was 37.84% while the share of outgoing calls on M:tel network was 23.70%. The market share of operators according to the number of minutes of outgoing traffic is given in the following Figure.

Prices of mobile telephony services (Montenegro, Region and EU)

OECD basket of services of mobile telephony are not available in any of the countries in the Region given that the study conducted in the previous several years by Cullen International for the needs of the European Commission is not relevant any longer since Cullen International is ended.

In line with the above mentioned, the Economic Department prepared the analysis which contains an overview of tariff packages of mobile operators from the countries in the Region (Albania, Kosovo, Slovenia, Serbia, B^H, Croatia, Macedonia, Turkey and Montenegro), while for the needs of the comparison two user packages were taken for physical persons, particularly post-paid and prepaid.

A comparative overview of monthly subscriptions for the selected post-paid packages for physical persons of mobile operators in the countries of the Region is presented in the following Figure which clearly shows that under the criterion of monthly sub-scription the packages of Montenegrin mobile operators M:tel and Telenor is below the average of the observed countries (12.93€) and part of the package of Crnogorski Telekom.

A comparative overview of monthly subscription prices to post-paid packages for physical entities of mobile opera-tors of the countries in the Region

The comparative overview of monthly subscriptions for the selected post-paid packages for physical persons of mobile operators in the countries in Europe is presented in the following Figure which clearly shows that under the criterion of the monthly sub-scription packages of all Montenegrin mobile operators are below the average of the observed countries (18,32 €).


1A comparative overview of prices of monthly subscriptions to post-paid packages for physical entities of mobile operators of the countries in Europe

The average monthly subscription in the countries of the Region (13.25€) is lower compared to the average of the countries in Europe (18.32€), even though there is a significant number of operators which operate both in the Region and the EU countries (e.g. Vodafone, T-Mobile, Telenor), which means that there is a different pricing policy, which is obviously adjusted to different standards of the citizens of the countries in the Region and citizens of the developed European countries.

A comparative overview of the prices of SMS messages sent to the national mobile operators is given in the following Figure which clearly shows that under this criterion packages of all three Montenegrin mobile operators are below the average of the observed countries (0.070 € per message).

Excluding the packages which do not charge SMS messages to the national mobile operators (which is included in the monthly subscription price), which is the case with individual packages in Slovenia, packages of the Montenegrin mobile operators are among the most favourable is observed in line with this criterion.

A comparative overview of the prices of SMS messages of post-paid packages for physical persons of mobile operators of the countries in the Region

A comparative overview of the prices of SMS messages for the selected post-paid packages for physical persons of mobile op-erators in the countries of Europe is given in the following Figure which clearly shows that under this criterion all three mobile operators are below the average of European countries (0.085 € per message). Under this criterion, prices of mobile operators in Montenegro are more favourable than the prices offered by the operators in the Region, but also in majority of European countries.

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A comparative overview of the prices of SMS messages of post-paid packages for natural persons of mobile operators of the countries in Europe

The price average of SMS messages in the countries of the Region (0.070 €) is lower than the average of the countries in Europe (0.085 €), even though there is a significant number of operators which operate both in the Region and the EU countries (e.g. Voda-fone, T-Mobile, Telenor), which means that there is a different pricing policy which is obviously adjusted to different standards of the citizens of the countries in the Region and citizens of more developed European countries.

A comparative overview of the price of a 10-minute call to the national fixed networks is given in the following Figure which clearly shows that under this criterion packages of Crnogorski Telekom are below the average of the observed countries (1.249 € per 10-min call), while packages of Telenor and M:tel are around the average.

Under this criterion, prices of mobile operators in Montenegro are more favourable than the prices of operators in Slovenia (Slo-venia is the EU member country and is characterized by generally higher prices of all products and services), Turkey and Albania which are approximately on the same level as the prices in Croatia and Macedonia, but above the prices of operators in Bosnia and Herzegovina, Serbia and Kosovo.

A comparative overview of the price of 10-min calls to the national fixed networks

A comparative overview of the price of 10-min calls to the national fixed networks in relation to the European countries is given in the following Figure which clearly shows that under this criterion packages of all three Montenegrin operators are below the average of the observed countries in Europe (1.580 € for a 10-min call). Under this criterion, prices of mobile operators in Monte-negro are more favourable than most prices offered by the operators in Europe.


1A comparative overview of the prices of 10-min calls to the national fixed networks of post-paid packages for physical entities of mobile operators of the countries in Europe

A comparative overview of the price of 10-min calls on mobile network (on-net) is given in the following Figure which shows that under this criterion packages of all three Montenegrin mobile operators are below the average of the observed countries (1.242€ for a 10-min call).

Under this criterion, prices of mobile operators in Montenegro are more favourable compared to all observed countries excluding Serbia. It should be pointed out that individual operators offer packages with free calls within the network, which impacts the average value of this criterion for the observed countries.

A comparative overview of the price of 10-min calls on network (on-net) of the post-paid package for physical per-sons of mobile operators in the countries of the Region

A comparative overview of the price of 10-min calls on the mobile network (on-net) in relation to the European countries is given in the following Figure which shows that under this criterion packages of all three mobile operators are under the average of the observed countries in Europe (1.545 € for a 10-min call). It should be pointed out that majority of mobile operators in Europe and in Montenegro offer packages with free calls within the network, which impacts the average value of this criterion for the observed countries.

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A comparative overview of the price of 10-min calls on network (on-net) of post-paid packages for physical persons of mobile operators in the European countries

A comparative overview of the price of 10-min calls to other national mobile networks (off-net) is given in the following Figure, which shows that under this criterion packages offered by Crnogorski Telekom are below the average of the observed countries (1.298 € for a 10-min call), while packages of Telenor and M:tel are around the average.

Under this criterion, prices of mobile operators in Montenegro are more favourable compared to all observed countries except for Serbia and Kosovo. It should be pointed out that individual operators in Slovenia and Macedonia offer packages with free calls to other national mobile networks, which impacts the average value of this criterion for the observed countries.

A comparative overview of the price of 10-min calls to other national mobile networks (off-net) post-paid packages for physical persons of mobile operators of the countries in the Region


1A comparative overview of the price of 10-min calls to other national mobile networks (off-net) in relation to European countries is given in the following Figure which clearly shows that under this criterion packages of all three Montenegrin mobile operators are under the average of the observed countries in Europe (1.585 € for a 10-min call).

A comparative overview of the price of 10-min calls to other national mobile networks (off-net) post-paid packages of physical persons of mobile operators of the countries in Europe

Under this criterion the prices of mobile operators in Montenegro are less favourable than in the majority of the observed countries in Europe even though they are below the European average. It should be pointed out that individual operators in Europe have packages with free calls to other national mobile networks, which impacts the average value of this criterion for the observed European countries.

The following Figures present a comparative overview of the price of 10-min international calls to Great Britain and the USA which clearly show that in Montenegro the prices of 10-min calls to Great Britain are around the average of the observed countries (6.602 € for 10-min calls, where Telenor’s price is below the above mentioned average and Crnogorski Telekom and M:tel prices are above the average.

A comparative overview of the price of 10-min international calls to Great Britain of mobile operators in the Region (post-paid, physical persons)

As for the price of 10-min calls to the USA, Crnogorski Telekom, M:tel and Telenor are below the average of the observed countries

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(7.669€ for a 10-min call). Individually observed, Crnogorski Telekom has the most favourable prices of calls to the USA of all the observed countries in the Region.

A comparative overview of the price of 10-min international calls to the USA of mobile operators in the Region (post-paid, physical persons)

A comparative overview of the prices of SMS messages sent to the national mobile operators is given in the following Figure which clearly shows that under this criterion packages of all three Montenegrin mobile operators are below the average of the observed countries (0.073 € per message). Just like with the post-paid packages for physical persons, packages of the Montenegrin mobile operators are among the most favourable under this criterion.

A comparative overview of the price of SMS messages of pre-paid packages for physical persons of mobile operators of the countries in the Region

A comparative overview of the prices of SMS messages for the selected post-paid packages for physical persons of mobile opera-tors in the countries in Europe is given in the following Figure which clearly shows that under this criterion all three Montenegrin mobile operators are below the average of the European countries (0.093 € per message). Under this criterion, prices of mobile operators in Montenegro are more favourable than the prices of operators in the Region, but also in most European countries.


1A comparative overview of the price of SMS messages of pre-paid packages for physical persons of mobile operators of the countries in Europe

It should be noted here that average price of SMS messages in the countries of the Region (0.073 €) is below the average of the countries in Europe (0.093 €), even though there is a significant number of operators operating in the Region and the EU countries (e.g. Vodafone, T-Mobile, Telenor), which means that there is a different pricing policy which is obviously adjusted to different standards of citizens of the countries in the Region and citizens of the developed European countries.

A comparative overview of the price of 10-min calls to the national fixed networks is given in the following Figure which clearly shows that under this criterion packages of all Montenegrin operators are below the average of the observed countries (1.316 € for 10-min calls).

A comparative overview of the price of 10-min calls to the national fixed networks of prepaid packages for physical persons of mobile operators of the countries in the Region

A comparative overview of the price of 10-min calls to national fixed networks compared to the European countries is given in the Figure below which clearly shows that under this criterion packages of all three Montenegrin operators are below the average of the observed countries in Europe (1.875 € for 10-min calls).

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A comparative overview of the price of 10-min calls to the national fixed networks pre-paid packages for physical persons of mobile operators of the countries in Europe

The following two Figures show a comparative overview of the price of 10-min calls on mobile network (on-net), and the com-parative overview of the price of 10-min calls to other national mobile networks (off-net).

The Figure shows that under the criterion which refers to on-net traffic, packages of the Montenegrin operators are below the average of the observed countries in the Region (1.155 € for a 10-min call) when it comes to the Telenor packages, while in case of Crnogorski Telekom and M:tel one package is above and another one is below the observed average of the Region. When it comes to the average in relation to the EU countries (1.696 € for a 10-min call), all packages of the Montenegrin operators are below this average.

A comparative overview of the price of 10-min calls on network (on-net) for packages of mobile operators (pre-paid, physical persons) in the Region


1A comparative overview of the price of 10-min calls on network (on-net) for packages of mobile operators (pre-paid, physical persons) in Europe

Under the criterion which refers to off-net traffic, packages of the Montenegrin operators are below the observed countries in the Region (1.354 € for a 10-min call), and below the average of the EU countries (1.882 € for a 10-min call).

A comparative overview of the price of 10-min calls to the national mobile networks (off-net) for packages of the mobile operators (pre-paid, physical persons) in the Region

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A comparative overview of the price of 10-min calls to the national mobile networks (off-net) for packages of mobile operators (pre-paid, physical persons) in Europe

The following Figure gives a comparative overview of the price of 10-min international calls to Great Britain which clearly show that in Montenegro prices of 10-min calls to Great Britain are above the average of the observed countries of the Region (7.356€ for a 10-min call) when it comes to Crnogorski Telekom and M:tel, while the prices of Telenor are below the average. The Figure 31 shows that prices of Montenegrin operators (10-min calls to the USA) vary in relation to the average of the observed countries of the Region (7.618 € for a 10-min call): M:tel above the average, Telenor and Crnogorski Telekom below the average. Crnogorski Tele-kom has the most favourable prices of calls to the USA of all the observed countries, excluding the mobile operator Mt:s in Serbia.

A comparative overview of the price of 10-min international calls to Great Britain of mobile operators in the Region (pre-paid, physical persons)


1A comparative overview of the price of 10-min international calls to the USA of mobile operators in the Region (pre-paid, physical persons)

The following Figures give a comparative overview of the price of 10-min international calls to Great Britain and the USA which clearly show that prices of 10-min calls made in Montenegro to Great Britain are below the average of the observed countries in Europe (5.138 € for a 10-min call). As for 10-min calls to the USA, prices of all Montenegrin operators are below the average of the observed countries of the Region (5.764 € for a 10-min call). Observed individually, Crnogorski Telekom has the most favourable prices of calls to the USA of all the observed countries, excluding the mobile operator Mt:s in Serbia.

A comparative overview of the price of 10-min international calls with Great Britain of the mobile operators in Eu-rope (pre-paid, physical persons)

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A comparative overview of the prices of 10-min international calls to the USA of the mobile operators in Europe (pre-paid, physical persons)

1.4. Internet and broadband access market

In 2015 the number of users of fixed broadband access rose by 8.2%. The number of users of mobile broadband access via data SIM cards declined in 2015 by 17% compared to 2014. The number of users who accessed the Internet via mobile networks in December 2015 increased by 9.2% compared to December 2014. Penetration of the fixed broadband access at the end of 2015 was 18.1%, and the majority of users were ADSL users with 59.2%. Penetration of mobile broadband access (data SIM cards) at the end of 2015 was 8.7%. Similar to the previous years, the decline in the number of users continued as well as the traffic via dial-up access to the Internet and it is obvious that this type of access cannot meet the current needs of users.

At the end of 2015 Crnogorski Telekom established the connection with subproviders of the access to the Internet via two links of 20921 Mb/s and 7.930 Mb/s, one towards Magyar Telekom, and the other towards Hrvatski Telekom, M:tel via two links of 5 Gb/s and 500 Mb/s, one towards Telekom Srbija, and the other one towards BeotelNet, Telenor had one link whose capacity was 2048 mb/s towards Telenor Srbija, M-kabl had a link of 4 Gb/s towards Telenor Srbija, Telemach had one link of the capacity of 1024 Mb/s towards SBB, while Dast Montel had the Internet link of the capacity of 150 Mb/s. Compared to 2014 capacities of international links increased by 43%.

1.4.1. Fixed broadband Internet access

Internet access via ADSL

Crnogorski Telekom provides the service of access to the Internet via ADSL1. For the first time after the introduction of ADSL in 2005, the decline of 3.8% of the number of ADSL users was recorded compared to 2014. At the end of 2015 Crnogorski Telekom had 66,545 ADSL users of which 59,469 were physical persons and 7,076 were legal persons. The following Figure shows a comparative overview of the number of ADSL users in the period 2005 – 2015.

1 ADSL (Asymmetric digital subscriber line)


1

The Table below presents the number of ADSL users by municipalities for the period 2009 - 2015.

Municipality 2009 2010 2011 2012 2013 2014 2015

Andrijevica 44 92 106 120 130 145 155

Bar 3,981 5,042 5,699 6,157 6,411 6,474 6,488

Berane 825 1,315 1,524 1,565 1,571 1,614 1,503

Bijelo Polje 1,320 2,259 2,322 2,405 2,393 2,336 2,251

Budva 3,232 4,137 4,114 4,415 4,844 4,952 4,800

Cetinje 985 1,150 1,471 1,527 1,598 1,586 1,547

Danilovgrad 837 977 1,242 1,270 1,360 1,390 1,379

Herceg Novi 3,899 5,058 5,163 5,446 5,715 5,861 5,972

Kolašin 315 352 413 387 406 422 412

Kotor 3,086 3,709 4,310 4,440 4,513 4,762 5,076

Mojkovac 244 302 430 454 493 521 523

Nikšić 2,352 3,753 5,131 5,539 5,968 5,933 5,561

Plav 797 857 1,162 1,225 1,289 1,319 1,365

Plužine 85 152 127 122 121 123 953

Pljevlja 857 1,359 1,215 1,191 1,132 1,015 120

Podgorica 15,978 20,833 23,814 23,290 22,728 22,620 20,235

Rožaje 806 1,074 1,252 1,327 1,394 1,419 1,471

Šavnik 25 32 45 55 54 52 63

Tivat 1,464 2,028 2,190 2,409 2,708 2,847 2,805

Ulcinj 2,176 2,687 2,740 2,965 3,245 3,470 3,551

Žabljak 165 202 247 253 276 292 315

Total 43,473 57,370 64,717 66,562 68,349 69,153 66,545

Natural persons preferred flat package Extra trio start with maximum download speed of 4Mb/s, which was used by 32% users, and ADSL Fl@t2 with maximum download speed of 2Mb/s, which was used by 269% users. As for business users, 60% users used Fl@tB4 package with maximum download speed of 4Mb/s.

The availability of ADSL service amounts to 99.82%, i.e. 99.82% users who have a fixed telephone connection may introduce ADSL service. In 2015 Crnogorski Telekom reduced the number of ADSL nodes from 204 to 203.

Internet access via WiMAX

In 2015, the service of Internet access via WiMAX2 was provided by M:tel and WiMAX Montenegro. The number of users who had WIMAX Internet access reduced by 20.5% in 2015 compared to 2014 and at the end of 2015 the number of users reached 5,645.

2 WiMAX – Worldwide Interoperability for Microwave Access

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The Table below shows an overview of the number of WiMAX users in the period since the issuance of the first licenses (mid 2007) up to the end of 2015.

WiMAX users

2007 2008 2009 2010 2011 2012 2013 2014 2015

1,707 5,520 6,271 6,789 7,296 5,769 6,049 7,097 5,645

The number of M:tel users that had WiMAX Internet access fell by 21.1% compared to 2014, so that at the end of 2015 there were 3,713 users, of which 3,187 were physical persons and 526 were legal persons. The users preferred a flat package Net 0.5M (512/256 kb/s), which was used by 73% of natural persons and 14.8% of legal persons. The Table below contains an overview of M:tel WiMAX users by municipalities for the period 2008 - 2015.

Municipality 2008 2009 2010 2011 2012 2013 2014 2015

Bar 192 233 204 226 213 198 188 144Berane 224 332 320 315 247 207 204 149Bijelo Polje 235 382 254 178 107 88 84 73Budva 156 10 912 1,225 200 28 28 83Cetinje 507 484 442 421 364 288 280 192Danilograd 1 0 13 23 31 40 48 48Herceg Novi 27 49 65 78 85 103 108 90Kolašin 0 3 6 10 12 14 15 15Kotor 33 37 23 25 30 38 46 43Mojkovac 0 0 1 2 4 3 2 2Nikšić 827 1,036 928 938 807 719 694 506Pljevlja 2 13 9 10 10 9 10 10Podgorica 3,287 3,611 3,551 3,777 3,378 2,972 2,939 2,306Rožaje 15 30 29 27 20 19 19 18Tivat 14 35 23 23 23 25 27 24Ulcinj 0 0 4 13 12 14 13 10Total 5,520 6,255 6,784 7,291 5,543 4,765 4,705 3,713

WiMax Montenegro launched the service of Internet access via WiMAX in 2012 and now it provides it in nine municipalities. The number of users reduced by 19.2% compared to 2014, so that at the end of 2015 WiMAX Montenegro had 1,932 users, of which 1,859 were natural persons and 73 legal persons. As much as 66.6 % of natural persons have Normal package (2/1 Mb/s), while the same package is used by 46.8% of business users. The Table below shows the number of WiMAX Montenegro users by municipalities.

Municipality 2012 2013 2014 2015

Bar 19 151 319 328Budva - 47 136 168Cetinje 33 123 185 110Danilovgrad - 39 80 74Herceg Novi - 22 50 57Kotor - 1 28 10Nikšić - 124 258 221Podgorica 156 731 1,264 914Tivat - 11 35 50Ulcinj 13 31 37 0Total 221 1,280 2,392 1,932

Internet access via cable distribution systems (CDS)

M:tel and M-kabl provide the service of Internet access via cable distribution systems (CDS). In 2015 M:tel bought three CDS op-erators as follows: Cabling d.o.o. from Budva, EltaMont d.o.o. from Nikšić and MediaNet d.o.o. from Berane. M:tel improved the existing CDS network so that their users now access the Internet via optical fibre (FTTXT3).

3 FTTx (Fiber to the x)


1CDS operator M-kabl started providing the services of Internet access via its cable distribution network in Nikšić as well and ser-vices are now provided in 8 municipalities in total. The number of Internet users of the operator M-kabl rose by 21.2% compared to 2014. At the end of 2015, M-kabl had 6,434 users of which 6,230 were natural persons and 204 legal persons. The most popular package among natural persons is flat package NET 2 (2048/256 kb/s) which is used by 55% of natural persons, while businesses (legal persons) prefer flat NET 8 package (8192/786 kb/s) and it is used by 44% legal persons. The Table below gives a breakdown of M-kabl users by municipalities for the period 2010-2015.

Municipality 2010 2011 2012 2013 2014 2015

Bar - 209 372 619 651 756 Bijelo Polje - 229 439 548 598 652 Herceg Novi 26 213 464 696 749 830 Kotor 53 112 119 139 Nikšić 55 Pljevlja 229 681 988 1,137 1,176 1,226 Podgorica 420 755 1,095 1,570 1,763 2,404 Tivat - 85 163 233 252 372 Total 675 2,172 3,574 4,915 5,308 6,434

Internet access via optical fibre networks (FTTx)

In 2015, the process of development of access optical fibre networks and installation of optical fibre up to end-users continued. This type of Internet access was provided by Crnogorski Telekom a.d, M:tel, Telemach and M-kabl.

The number of users who had Internet access via the optical fibres in 2015 increased by 38.6% compared to 2014, so that at the end of 2015 there was a total of 17,466 users. The following Table shows an overview of FTTx users for the period 2011-2015.

FTTx users

2011 2012 2013 2014 2015

1,029 4,745 8,610 12,605 17,466

The number of Crnogorski Telekom users with FTTx connection increased by 14.6% compared to 2014. At the end of 2015 Crnogorski Telekom had 9,851 users, out of which 8,568 were natural persons and 1,265 legal persons. The most popular package among natural persons was flat package Extra trio optika start (20/2 Mb/s), which was used by 46% natural persons, while 64% of legal persons used the package Optika 25 (25/2 Mb/s).

At the end of 2015 M:tel had 7,372 users of which 7,015 were physical persons and 357 were legal persons. The most popular package among the physical persons was a flat package Flash M (8192/768 kb/s), which was used by 50% of physical persons, while 20% were business users.

Telemach at the end of 2015 had 200, M-kabl 43 users which have a FTTX connection.

The Table below shows the overview of the number of users by operators in those municipalities where Internet access via optical fibres is available.

Municipality Crnogorski Telekom M:tel Telemach M-kabl

Andrijevica - 4 - -

Bar 531 7 - 2

Berane 70 471 - -

Bijelo Polje 250 1 - 1

Budva 604 3,981 -- -

Cetinje 100 284 -

Danilovgrad 11 - - -

Herceg Novi 344 12 - 6

Kolašin - - - -

Kotor 785 - 1

Mojkovac - - - -

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Nikšić 222 1,496 - 1

Plav - - - -

Pljevlja 1 1 - 1

Podgorica 6,620 864 200 31

Rožaje - 1 - -

Šavnik - - - -

Tivat 310 26 - -

Ulcinj 1 224 - -

Žabljak 2 - - -

Total by operators 9,851 7,372 200 43

Total 17,466

Internet leased lines

In 2015 six operators provided Internet leased lines as follows: Crnogorski Telekom, IPMONT, MN News, M:tel, Telenor and Telemach. The number of Internet leased lines decreased with Crnogorski Telekom compared to 2014 from 132 to 116, with MN News decreased from 99 to 92, and with Telenor increased from 20 to 26, and with M:tel from 4 to 5. IPMONT had 11 and Telemach 1 leased line at the end of 2015.

Internet access via MPLS4

The service of Internet access in 2015 via MPLS with Crnogorski Telekom was used by 11 users at 113 locations while M:tel had 1 user.

Internet access via wireless access points (2.4 GHz and 5 GHz)

The total number of wireless access points increased from 238 in 2014 to 272 in 2015. At the end of 2015 Crnogorski Telekom had 63, MNnews 101, Dasto Montel 25, Wireless Montenegro 47, WiMax Montenergo 18, Antares 8, M-online 14, S&T Tehnica 2 and M-kabl 2 access points.

The following Table shows the number of wireless access points by municipalities at the end of 2015.

Municipality Crnogorski

TelekomMNnews

Wireless Montenegro

Dasto Montel

M-KablWimax Mon-

tenegroAntares M-online

S&T tehnica

Andrijevica 1 - - - - - - - -

Bar 3 4 4 - - 3 8 - 2

Berane - 7 1 - - - - - -

Bijelo Polje - 7 2 - - - - -

Budva 5 15 6 - - 3 - - -

Cetinje - 12 - - - 1 - - -

Danilovgrad 3 2 - - - - - - -

Herceg Novi 4 2 - - - 2 - - -

Kolašin - 1 1 - - - - - -

Kotor 2 2 2 - - 1 - - -

Mojkovac 1 - - - - - - -

Nikšić - 2 4 - - - - - -

Plav 2 1 - - - - - - -

Plužine - 1 - - - - - - -

Pljevlja 2 3 2 25 - - - - -

Podgorica 31 13 21 - 2 7 - 14

Rožaje - 1 1 - - - - - -

4 MPLS (Multiprotocol Label Switching)


1Šavnik - 1 - - - - - - -

Tivat 2 20 1 - - - - - -

Ulcinj 5 4 - - - 1 - - -

Žabljak 2 3 2 - - - - - -

Total 63 101 47 25 2 18 8 14 2

In 2015 9,952 users had Internet access via wireless access points of Crnogorski Telekom, which was an increase of 106% compared to 2014.Crnogorski Telekom did not charge for this service.

The users of Wireless Montenegro who had Internet access via wireless access points realized 43,804,364 connections in 2015 which is by 61% more than in 2014. This service is free of charge.

At the end of 2015 MNnews had 3,800 users with Internet access via wireless access points, which was an increase of 5.6% com-pared to 2014. Operator MNnews does not charge for this service.

The number of Dasto Montela’s users rose from 699 to 736 compared to the end of 2014.

At the end of 2015 WiMax Montenegro had 712, Antres 16, M-online 638 and S&T Tehnica 33 users.

Satellite internet

In 2012, operator SBS Net Montenegro d.o.o. launched the service of satellite Internet access, and in 2015 the number of users decreased from 79 to 77, of which 13 users were natural persons and 64 legal persons.

The following Table shows the number of users of satellite Internet access per municipality and package.

Municipality TW2

5/1Mb/s2GB

TW1022/6Mb/s

10GB

TW2522/6Mb/s

25GB

TW4022/6Mb/s

40GB

TW810/2 Mb/s

8GB

TW1610/2Mb/s

16GB

TW Extra22/6Mb/s

100GB

TW Infinity22/6Mb/s

100GB

Andrijevica - - - - 1 - - -

Bar - - - - 2 - 1 -

Berane - - - 10 - - -

Bijelo Polje - - - - 6 - - -

Budva - - - - - - - 1

Cetinje - - - - 2 - - -

Danilovgrad - - - - 1 - - 1

Gusinje 1 - - - - - - -

Herceg Novi 1 - - 1 1 1 - -

Kolašin - - - - 4 - - -

Kotor - - - - 1 - - -

Mojkovac - - - - 2 - - -

Nikšić - - - - 8 - - -

Petnjica 1 - - - - - - -

Plav - - - - - - - -

Pljevlja - - - - 9 - - -

Plužine - - - - 1 - - -

Podgorica - 1 - - 9 - - 1

Rožaje - - 1 - 3 - -

Šavnik - - - - - - - -

Tivat - - 1 1 - - 2

Ulcinj - - - - - - - 1

Žabljak - - - - 1 - - -

Total 3 1 2 2 61 1 1 6

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Structure of users of fixed broadband Internet access

The Figure below illustrates the structure of users of fixed broadband Internet access per type of access, expressed in percentages.

In addition to the increased number of users of fixed broadband Internet access, there was a change in the user structure according to access technology, which is shown in the following Table:

Access technology 2011 2012 2013 2014 2015

ADSL 78% 75.8% 71.4% 66.6% 59.2%

WiMAX 7% 6.6% 6.3% 6.8% 5.0%

KDS 4% 4.1% 5.3% 5.3% 5.7%

Hot spots (2,4GHz i 5GHz) 8% 7.4% 7.6% 8.8% 14.1%

FTTx 1% 5.4% 9.0% 12.1% 15.5%

Leased lines, MPLS, satelite 1% 0.6% 0.4% 0.3% 0.4%

1.4.2. Mobile broadband Internet access

The number of users of mobile broadband Internet access via data SIM cards in 2015 decreased by 17% compared to 2014. The number of Crnogorski Telekom users decreased by 11.2%, while the number of Telenor users decreased by 20.4%. The Table below shows the structure of data SIM card in 2015.

2015 Postpaid Prepaid Total

Crnogorski Telekom 10,710 10,729 21,439

Telenor 10,403 21,829 32,232

Total 21,113 32,558 53,671

The following Table presents the number of data SIM card users by operators in the period 2008 - 2015.

Data SIM card users

2008 2009 2010 2011 2012 2013 2014 2015

Crnogorski Telekom 3,143 9,172 18,856 27,450 24,593 25,595 24,154 21,439

Telenor 4,954 11,183 15,149 36,966 38,897 53,965 40,483 32,232

Total 8,097 20,355 34,005 64,416 63,490 79,560 64,637 53,671

Users of data SIM cards of Crnogorski Telekom generated the traffic of 635,432,750 MB, which was an increase of 61.8% compared to 2014. The respective users of Telenor generated the traffic of 864,318,581 MB, which represents an increase of 6.8% compared to 2014.

Operator M:tel does not have in its offer data SIM cards used for data transmission only, but in 2015 with the total of 14,643 M:tel SIM cards only data transmission traffic was carried out (in 2014, this number was 10,708).

The total number of prepaid and post-paid users of mobile operators who accessed the Internet (via mobile phones and modems)


1in December 2015 was 326,006 (an increase of 9.2% compared to December 2014) of which 271,333 used exclusively 3G access technology.

1.4.3. Internet penetration

Based on survey on the use of ICT5 in Montenegro that the Statistical Office of Montenegro - Montstat conducted in the pe-riod from 1 April - 15 April 2015, 68.1% of the population used the Internet in the past three months, which was a rise of 4.2% in comparison with the survey in 2014. The following Figure shows a graphic presentation of the Internet penetration trends in the period 2001 - 2015.

The penetration of fixed broadband access (users of ADSL, WiMAX, cable distributive systems leased lines, FTTx, etc.) amounted to 18.1% at the end of 2015, which was an increase of 1.3% compared to 2014. When the penetration is considered in relation with the number of households, it reaches 57.7 % which is a rise of 4.4% compared to the penetration related to the number of house-holds in 2014.

Penetration of mobile broadband access at the end of 2015 was 8.7%, which is a fall of 1.7% compared to 2014. As stated before, in accordance with the methodology, only the users of data SIM cards were taken into account in calculations of penetration of mobile broadband access. If M:tel SIM cards from which only data traffic was generated were taken into consideration, penetration of mobile broadband access would reach 11.0%,

The following Figure shows a graphic display of the broadband access penetration trends (fixed and mobile) in relation to the population in the period 2007 - 2015.

Based on the above mentioned it can be concluded that 2015 saw a continued trend of increasing the number of citizens of Mon-tenegro who access the Internet as well as the increase in the penetration of fixed broadband access.

5 ICT (Information and communications technologies)

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1.4.4. Prices of broadband Internet access in Montenegro and comparison with the neighbouring countries

1.4.4.1. Prices of broadband access by Crnogorski Telekom

In 2015 prices of broadband Internet access with Crnogorski Telekom did not change until December when after the implementation of regulatory measures imposed by the Agency for Electronic Communications and Postal Services, Crnogorski Telecom corrected the prices of retail broadband access for ADSL access while the FTTH prices remained the same.

In its offer for natural persons Crnogorski Telekom has the following ADSL packages (we particularly point out so-called Fl@T packages, with unlimited data traffic), which are offered with a minimum duration of the subscriber contract of 18 months at the following prices (with VAT included), starting from 1 November, 2015:

Package name Speed Data traffic volume Price

Basic Up to 1 Mbps / 128 kbps 1 GB 11.73€ (previous price 13.80 €)

Fl@T 2 Up to 2 Mbps / 256 kbps Flat 14.16€ (previous price: 16.66 €)

Fl@T 5 Up to 5 Mbps / 512 kbps Flat 18.61€ (previous price: 21.90 €)

Fl@T 7 Up to 7 Mbps / 768 kbps Flat 21.75€ ( previous price: 25.59 €)

In addition to the standard ADSL packages, FTTH broadband packages are also offered (the service is provided over an optical cable, which is brought to the user’s premises), and currently they are provided in 14 municipalities in Montenegro at the following prices:


Optika 20 Up to 20 Mbps / 1 Mbps Flat 20.33 €



In its offer for legal persons, Crnogorski Telekom has ADSL packages with unlimited data traffic, which are offered with a min-imum period of the subscriber contract validity of 12 months, at the following prices (VAT included):


Fl@T B4 Up to 4 Mbps / 512 kbps Flat 17.10€ (previous price 20.11 €)

Fl@T B6 Up to 6 Mbps / 1 Mbps Flat 20.23€ (previous price 23.80€)

Fl@T B8 Up to 8 Mbps / 1 Mbps Flat 23.37€ (previous price 27.49 €)

Fl@T B10 Up to 10 Mbps / 1 Mbps Flat 26.58€ (previous price 31.27 €)

In addition to standard ADSL packages, FTTH broadband packages are also in offer (the service is provided over an optical cable, which is brought to the user’s premises), and currently they are provided at specific locations in Podgorica and in the coastal area, at the following prices:





The establishment of the subscription relationship for broadband access with Crnogorski Telekom includes the price of the se-lected modem and the price of the ADSL modem installation in the amount of 49.50 EUR, but at the moment the costs of FTTH connections are not charged (promotional action). The prices of the modems used for implementation of broadband access included in the offer of Crnogorski Telekom do not depend on whether they are offered to natural or legal persons. These prices (with VAT included) are presented in the Table below:

Modem type Price

ADSL modem Type 1 (Bridge mode connection, npr, D-link 360R) 17.50 €

ADSL modem Type 2 (4-portni switch, e.g., D-link DSL-2543B) 37.50 €

ADSL modem Type 3 (4-portni switch + WiFi,e.g. D-link DSL-2641B) 52.50 €

ADSL modem Type 4 (home gateway) 45.00 €

Crnogorski Telekom also offers the so-called triple-play packages to its users (for natural and legal persons), i.e. the packages offering simultaneously the service of television, internet and fixed telephone line at affordable prices. All these packages are on


1post-paid basis, but a considerable benefit for users is the fact that at the end of the calculation period, they receive a single bill with the consumption indicated separately for each of these items.

The new Extra Trio packages of Crnogorski Telekom include the services of Extra TV, broadband access (ADSL or optical) and fixed telephony:

Package TV Internet Telephone Price

Extra TrioMini

39 channels from the Region

ADSL basic (1Mbps, data traffic vol. 1GB)

Comfort evening (unlimited calls within T-Com network from 19-07 hours, 100 min

towards T-Mobile free of charge)20.29 €

Extra TrioStart

64 channels ADSL 4Mbps, flat (unlimited

data traffic vol.)Comfort package (unlimited calls within T-Com network)

38.59 €

Extra TrioMaxi

64 channels + extra packages

ADSL 8Mbps, flat (unlimited data traffic vol.)

Comfort package (unlimited calls within T-Com network)

45.90 €

Extra Trio Optika Mini

39 channels from the Region

Fibre 20 (20/1 Mbps, unlimited data traffic vol.)

Comfort evening (unlimited calls within T-Com network from 19-07 hours, 100 min towards T-Mobile free of charge)

20.29 €

Extra Trio Optika Start

64 channels Fibre 30 (30/2 Mbps,

unlimited data traffic vol.)Comfort package (unlimited calls within T-Com network)

38.59 €

Extra Trio Optika Start

64 channels + extra packages

Fibre 40 (40/4 Mbps, unlimited data traffic vol.)

Comfort package (unlimited calls within T-Com network)

45.90 €

Note: Currently, Extra Trio packages providing users with Internet service via FTTH connection are offered at the same price as the packages in which Internet is provided over a standard POTS connection, as it is a promotional offer provided to a number of users and it depends on the location. For the time being optical cable is offered in 14 municipalities in Montenegro, but it is likely that in the time to come Telecom will begin to offer this service in other parts in Montenegro.

1.4.4.2. Prices of broadband access by M:tel

In Montenegrin market, M:tel also offers the service of broadband access with unlimited data volume by using WiMax technology through the so-called NET package, at the following prices:

Package name NET 512 NET 1024 NET 2048

Connection speed 512kbps / 256kbps 1024kbps / 512kbps 2048kbps / 512kbps

Monthly subscription fee for 12 months 22.376 € 35.598 € 43.735 €

Monthly subscription fee for 24 months 20.342 € 33.564 € 41.701 €

The amounts presented in the table above are with VAT included. The installation charge is 50€, which may be payable in 5 monthly instalments by signing a 12 – month contract. In case of signing a 24-month contract, the installation fee is not charged.

In addition to those packages, the offer also includes the so-called NET High packages, for which a 40 € installation charge is paid (it is a one-time fee paid with the first monthly bill) in case of signing a 12-month contract. In case of signing a 24-month contract, provided that along with the NET High package a fixed connection is taken as well (TEL or TEL One package), the installation fee is not charged or the fixed line in the first 12 months of the contract validity with an additional 25% discount to the Internet subscription and a free WiFi modem.

The Internet services through the NET High package are provided at the following prices (VAT included):

Package nameNet High

1MbNet High

2MbNet High

4MbNet High

6MbNet High

8MbNet High

15MbNet High

25Mb

Connection speed1024kbps / 256kbps

2048kbps / 512kbps

4096kbps / 512kbps

6144kbps / 768kbps

8192kbps / 768kbps

15Mbps / 1Mbps

25Mbps / 2Mbps

Monthly subscription fee for 12 months

17.291 € 22.376 € 30.513 € 42.718€ 52.889 € 63.060 € 73.231€

Monthly subscription fee for 24 months

15.256 € 20.342 € 28.479 € 40.684 € 50.855 € 61.026 € 71.197€

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This operator also provides the Internet services through its cable network via the so-called FLASH packages and at the following prices (VAT included):

Package name Flash 4M Flash 8M Flash 15M Flash 25M

Connection speed4096kbps /

512kbps8192kbps /

768kbps15360kbps /

1024 kbps25600kbps /

2048 kbps

Monthly subscription fee for 12 months 15.900 € 19.900 € 23.900€ 26.900€

Monthly subscription fee for 24 months 13.900 € 17.900 € 21.900€ 24.900€

M:tel also offers to users (legal and natural entities) the so-called quadruple-play packages i.e. packages in which the services of television, Internet, fixed and mobile telephone at favourable prices. All these packages are post-paid, and the undisputable ad-vantage for the users is the fact that at the end of the billing period a unique bill is produced with separately presented spending for each of these services.

M:tel BOX packages include services of television, broadband access, fixed and mobile telephony that is their combination and are offered at the following prices:

Package TV InternetFixed

telephoneMobile

telephonePrice

(12 months)Price

(24 months)

BOX duo 1 Basic TV package Flash 4M - - 22.900 € 20.900 €

BOX duo 2 Basic TV package Flash 15M - - 27.900 € 25.900 €

BOX duo 3 Basic TV package + HD package Flash 25M - - 31.900 € 29.900 €

BOX trio 1 Mini Basic TV package Internet 2M Tel Box1 - 21.990 € 19.990 €

BOX trio 2 Basic TV package Flash 8M Tel Box1 - 26.990 € 24.990 €

BOX trio 3 Basic TV package Flash 15M Tel Box2 - 33.990 € 31.990 €

BOX all 4 Basic TV package Flash 8M Tel Box1 Odaberi plus 10.8 36.990 € 34.990 €

1.4.4.3. Prices of broadband access by Telemach

Cable operator Telemach offers to its subscribers broadband Internet access at lower prices and higher speed compared to the prices of Crnogorski Telekom, which is illustrated in the Table below.

Package name Speed Data transmission Price

S 10 Mbps / 1 Mbps Flat 11.50 €

M 20 Mbps / 2 Mbps Flat 14.90 €

L 40 Mbps / 4 Mbps Flat 19.90 €

XL 60 Mbps / 6 Mbps Flat 32.90 €

XXL 100 Mbps / 10 Mbps Flat 45.90 €

In addition to these packages, offered are also the so-called DUO and TRIO packages which are highly competitive with other operators by prices and other options:

Package TV Internet Telephone Price

SILVER 6 HD channels + 88 channels D3GO service

10/1 Mbps - 22.90 €

GOLD 17 HD channels + 117 channels D3GO services

20/2 Mbps - 26.90 €

GOLD EXTRA 29 HD channels + 142 channelsD3GO, Klubzona and Minimax Plus

40/4 Mbps - 31.90 €

GOLD PREMIUM

33 HD channels + 150 channelsD3GO, Klubzona, Minimax Plus and D3 houses

60/6 Mbps - 43.90 €

SILVER 6 HD channels + 88 channelsD3GO services

10/1 MbpsFree in network

100 min to other networks 24.90 €

GOLD 17 HD channels + 117 channelsD3GO services




1GOLD EXTRA 29 HD channels + 142 channelsD3GO, Klubzona and Minimax Plus



GOLD PREMIUM

33 HD channels + 150 channelsD3GO, Klubzona, Minimax Plus and D3 kuća



1.4.4.4. Prices of broadband Internet access compared to the Region

The comparison of prices of broadband Internet access at the retail level in Montenegro and the respective prices in the Region cannot be accurately made. This is because different operators in different countries offer different packages, which do not corre-spond to the packages that are offered by Montenegrin operators. Some packages cannot be compared at all (e.g. Telekom Serbia does not offer packages that are charged per actual data traffic volume, but only flat-rate packages, and ADSL Basic package of Crnogorski Telekom cannot compare).

In order to make at least some kind of comparison, the following text provides an overview of broadband packages offered mainly by the (incumbent) operators in the region, where the official web sites of individual operators in the region were used as sources. All prices refer to retail and include VAT at the rate applicable in the country to which the rates apply. Where necessary, the prices are converted in EURO, with the specified exchange rate prevailing at the date of conversion.

The comparison of the price of broadband Internet access at the retail level with incumbent operators in Montenegro with prices applied by incumbent operators in the countries of the region is difficult because the operators in different countries offer differ-ent packages, in terms of speed of access to the Internet, the amount of data that is included in the monthly price use, as well as the procedures applied after the transfer of the included amount of data (speed reduction or temporary suspension of service).

An overview of broadband packages offered by the incumbent operators in the countries of the region are given in the following text: Bosnia and Herzegovina (BH Telekom), Macedonia (Macedonian Telekom), Albania (AlbTelecom), Turkey (TurkTelecom), Ser-bia (Telekom Serbia), Kosovo (PTK Vala ), Croatian (Croatian Telekom), Slovenia (Telekom Slovenia) and Montenegro (Crnogorski Telekom). It also provides an overview of broadband packages offered by incumbent operators in the countries of Europe, and the official web sites of those operators were used as sources of data. All prices are retail and include VAT at the rate applicable in the country to which the prices refer.

Comparison of the prices of broadband packages with unlimited data traffic volume (the so-called “flat”) offered by the operators in the countries of the region

Incumbent operators in the region offer broadband access through packages with different download speeds offered, which range from packages with speed 1 Mbps (Croatian Telecom) to packages with speeds up to 100 Mbps (AlbTelecom, Turk Telecom, Tele-kom Serbia). For the purposes of comparative analysis of broadband access at retail level were selected packages with a minimum download speed (in Mbps) in offers of the operators from the neighbouring countries, which are also shown on the following Figure.

A comparative overview of the prices of broadband packages with the minimum offered speed in the countries of the Region

Crnogorski Telekom offers ADSL FL @ T 2 at a price of € 14.16, which is more favourable than the prices of reference packages offered by the operators in Slovenia (Telekom Slovenia), Turkey (Turk Telecom) and Albania (AlbTelecom), while it is the more expensive compared to other operators from the region.

The analysis of the available broadband “flat” packages is carried out by two criteria – comparison of the prices of packages with “lower” download speeds, i.e., speeds up to 50 Mbps and comparison of the prices of packages with “higher” Download speeds, i.e., speeds up to 100 Mbps. For the purposes of these analyses two packages with lower speeds were taken from each of the

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operators (usually two packages from the offer that have the lowest rates), and two packages with higher speeds (usually two packages from the offer with the highest price).

The analysis under the above criteria are given in the corresponding Figures.

A comparative overview of the prices of broadband FLAT packages with “lower speeds”, i.e. speeds up to 50 Mbps (in the countries of the Region)

In this category of packages, the offer of Crnogorski Telekom is the most favourable compared to the incumbent operators in the region.

A comparative overview of the prices of broadband FLAT packages with “higher speeds” i.e. speeds of up to 100 Mbps (in the countries of the Region)

In the category of the so-called ADSL FLAT packages with “higher speeds” i.e. speeds of up to 100 Mbps, Crnogorski Telekom offers packages with the lowest speeds of 5 and 7 Mbps. The only packages close to the package Flat 5 Plus of Crnogorski Telekom which offers 5 Mbps at the rate of 20.33 € is the package MAXadsl 2-4 of Hrvatski Telekom which offers 4 Mbps at the rate of 18.44 €.

1.4.5. Measuring Internet access speed

The Agency for Electronic Communications and Postal Services has enabled its users to make their own measuring of the quality of broadband internet connection. Measurement platform is available at http://izmjeribrzinu.ekip.me. When measuring the exist-ence of a firewall on the computer is verified from which the measurement is performed, delay and delay variations are measured (parameters important for time-sensitive applications – “real-time”), as well as loss of data and the speed of data uploading and downloading. The number of measurements that can be made from the same IP address is not limited.


1

Five measurements can be carried out at the same time. Before the measurements users inserts their addresses, the name of the operator which provides the services and package used. All the results obtained, which can be used for various analyses, are recorded.

The platform for measuring the speed of the Internet connec-tion, which was installed by the Agency, was improved in 2015 and is based on the product “NetGauge”of Ookla company. This product is also used for measuring via the popular website www.speedtest.net.

The exchange point of the Internet traffic in Montenegro (MIXP) was established in July 2015. The Agency plans to connect test server of the measurement platform which is now installed in the Crnogorski Telekom network in 2016 to the exchange point of the Internet traffic in Montenegro. In that way all operators will have equal conditions during the measurement.

In

2015, users conducted 3,729 measurements. In 2014 5,893 meas-urements were performed through the measurement platform. The measurement results show that 77.1% of performed measure-ments have met the criterion that the measured speed of data uploading and downloading is above the half of corresponding maximum speeds of data uploading and downloading for the package which the user indicated when entering data before the measurement started. This percentage in 2014 was 71.4%, which means that the operators in 2015 increased the speed of the Internet access and the quality of service of the Internet access.

1.4.6. Establishing the National Exchange Point of the Internet traffic in Montenegro

The Agency for Electronic Communications and Postal Services in 2013 prepared a Study on the establishment of the IXP - In-ternet Exchange Point in Montenegro. The Study has considered the possibility of organizing a national exchange point of Inter-net traffic in Montenegro and it has been concluded that its establishment would foster the development of the Internet in Montenegro, lowered the price of Internet access, relieve the links to the global Internet access, improve the quality of the Internet access services and the security of communications. The Study suggests a preliminary design of the organization of IXP in Montenegro and the initial cost of its establishment were estimated.In order to continue the activities of the IXP establishment in Montenegro, the Agency for Electronic Communications and Postal Services hired the Centre for Information System of the University of Montenegro (CIS UCG) to prepare a Montenegro IXP Feasibility Study. CIS UCG the Montenegro IXP Feasibility Study prepared in April 2014. Recommendations for the estab-lishment of the Internet exchange points in Montenegro are given in this Study, of which the following are most important:

- The job of the first IXP in Montenegro is supposed to be performed by a legal entity registered in Montenegro to work in the field of ICT. It should work on non-profit basis, with the initial help of the relevant Ministry or the Agency for the establishment of the respective functionality;

- According to the analysis of the location of operators which provide Internet access services and content providers, it was recommended that the first IXP was established in Podgorica with appropriate spatial and technical preconditions;

- The initial specifications and characteristics of ICT equipment were proposed, which would guarantee the establishment of the full IXP functionality, the proposed services, the development of new services and connection of all existing and the a certain number of future providers - operators;

- IXP services could be used by all legal entities which meet the technical and commercial terms and in ac-cordance with the principle of voluntariness.

- As the best solution is proposed that the first IXP in Montenegro is established in the academic environ-ment-CIS UCG, with the investment of the relevant Ministry or the Agency in the initial ICT equipment with the legal regulation of the obligations and rights of the selected entity.

Within the 21st Infofest, which took place in the period 28 Sep-tember – 4 October 2014, a workshop entitled “The establishment

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of the national Internet exchange point - Opportunities and Challenges”. The workshop was jointly organized by the Interna-tional Telecommunication Union (ITU), an association of Internet Society (ISOC), the Ministry for Information Society and Tele-communications and the Agency for Electronic Communications and Postal Services. During the workshop, there was a meeting of the project team for the implementation of IXP in Montenegro. Project team meeting was attended by representatives of the International Telecommunication Union (ITU), the association of Internet Society (ISOC), the Ministry for Information Society and Telecommunications, the Agency for Electronic Communications and Postal Services of CIS and the University of Montenegro. On that occasion, he expressed willingness Association Internet Society and the International Telecommunications Union that through donations, which would include the provision of equip-ment and additional workshops, help establish a point for the exchange of Internet traffic in Montenegro. It was agreed that the competent institutions in Montenegro preparing a detailed specification of the equipment required to on the basis that provided equipment for IXP Montenegro.

Within the continued activities on the establishment of the Internet exchange point in Montenegro, in October 2014, a study visit to SOX was organized (the Internet exchange point in Serbia). The representatives of the Agency and CIS UCG went to the study visit. During the visit, representatives and founders of SOX presented the SOX development, primarily from a technical point of view since 2009 when it was established.

In October 2014, the Ministry for Information Society and Telecommunications established a Working Group which will deal with further activities aimed at the establishment of IXP in Montenegro. The Working Group consists of representatives of the Ministry, the Agency and the University of Montenegro. The Rector of the University of Montenegro gave consent to CIS UCG to be a national Internet exchange point. The Govern-ment of Montenegro, at its session held on 6 November 2014 adopted the Information on the establishment of a national Internet exchange point and gave consent to CIS UCG to be the national operator of the Internet exchange point in Montenegro. In December 2014 CIS UCG prepared a detailed specification of the equipment needed to establish the Internet exchange point in Montenegro, which was delivered to representatives of the Internet Society and the International Telecommunication Union, so that the aforementioned institutions would consider it before the implementation of the donation of the equipment.

At the 20th IT Conference Žabljak 2015 several sessions were devoted to the establishment of IXP Montenegro. In addition to the representatives of the local Internet community, represent-atives of the International Telecommunication Union and the Internet Society-ISOC also took part in the conference. At the conference the final IXP Montenegro equipment specifications were agreed at the Conference.

Based on the Feasibility Study which passed the validation of relevant Internet associations and experts (ICANN, ISOC, RIPE, ITU, SOX ...) at the Infofest 2014 and the IT Conference Žabljak 2015 with the support of the Agency for Electronic Communi-cations and Postal Activities and the Ministry for information society and Telecommunications CIS UCG did the complete design, installation and configuration of the first Montenegro Internet Exchange Point (MIXP). A complete understanding of this activity was shown by two Internet Service Providers in Montenegro: Crnogorski Telekom and Telenor, which helped

in the purchase of necessary equipment and among the first undertook the activities of linking to MIXP. MIXP started its test work on July 10 by linking doMEn and academic network of the University of Montenegro to MIXP. The tests have shown that MIXP works according to plan and that other entities can be connected. After the successfully conducted tests, Crnogorski Telekom and Telenor were connected to MIXP.

In addition to the Internet service providers educational institu-tions, government bodies, companies, etc. can connect to MIXP if they meet the technical requirements published on the web page www.mixp.me. One of the technically unavoidable prereq-uisites for connecting to MIXP is that the interested legal entity, registered in Montenegro, has a computer network registered as an autonomous system (AS) with a unique AS number (ASN). The AS registration is conducted according to the valid registration procedures with the relevant international institution.

After the successfully conducted tests, the Ministry for Infor-mation Society and Telecommunications has established the MIXP Council composed of the representatives of the Ministry, the Agency, the University of Montenegro, Crnogorski Telekom and Telenor. The Council has prepared proposals of the MIXP prices and forms of contracts with the MIXP service users that the Administrative Board of the University of Montenegro adopted in December 2015.

At the moment the following entities are connected to MIXP (100 Mbps links): Crnogorski Telekom, Telenor, M:tel, the University of Montenegro and doMEn and they exchange traffic. The network of the Government of Montenegro is also linked to MIXP, but still does not exchange traffic with other networks. The statistics for the last few months of 2015 show the following traffic with the following entities:

- Crnogorski Telekom: average 22-Mbps, maximum-45 Mbps;

- Telenor: average of 10 Mbps, maximum of 36 Mbps;- M:tel: average of 10 Mbps, maximum-20 Mbps;- The University of Montenegro: average 4-Mbps,

maximum-22 Mbps;- Domain: average-12 Kbps, maximum 50 Kbps.

In order to promote advantages and benefits of connecting to MIXP until 31 December 2015 no monthly fee was paid fee using MIXP.

Following the initiative of the Agency and the engagement of the international and the local Internet community, the first Internet exchange point in Montenegro-MIXP was successful established and put into operation at the University of Montenegro that the International Telecommunication Union mentions as an example of good practice of establishing a national IXP.

1.5. Market of VoIP service

In 2015 VoIP services were provided by the following operators:- IPMont d.o.o,- Montenegro Post d.o.o,- VoIP d.o.o,- ProntoTel d.o.o., and- MN News d.o.o.

IPMont d.o.o. provides VoIP services via CS (Carrier-Selection)


1facility. The number of IPMont users in 2015 fell by 4.2%, while the number of activated vouchers dropped by 30.4% compared to 2014. At the end of 2015 IPMont had 850 users, and 988 vouchers were activated in 2015. 143,716 minutes of traffic were generated through IPMont, which was a drop of 15% compared to 2014. Out of the total traffic generated, 22% referred to the traffic to the Republic of Serbia, 48% to other international destinations, and 30 % referred to the national traffic. The capacity of IPMont Internet link was increased from 4Mb/s to 20 Mb/s.

In 2015 the Montenegro Post increased the number of public pay-phones through which it provided its VoIP services from 70 to 78. In 2015 Montenegro Post had 24 VoIP pay-phones in the territory of Herceg Novi municipality, 11 in the territory of municipality of Bar, 9 in the territory of Budva municipality, 9 in the territory of municipality of Podgorica, 7 in the territory of municipality of Kotor, 7 in the territory of Tivat municipality, 4 in the territory of Ulcinj municipality, 3 in the territory of Žabljak municipality, 2 in the territory of municipality of Cetinje and 2 in the territory of Nikšić municipality. The traffic generated via VoIP service with Montenegro Post in 2015 dropped by 25% compared to 2014 and amounted to 155,139 minutes. Out of the total traffic generated, 44% referred to destinations in the Republic of Serbia, 49% to other international destinations and 7% to the national traffic.

VoIP d.o.o. provided services over pay phones and the total traffic generated amounted to 30,188 minutes, which is by 23% less compared to 2014. Out of the total traffic generated, 63% referred to the traffic towards destinations in the Republic of Serbia, 35% to other international destinations and 2% referred to the national traffic. The capacity of VoIP d.o.o. Internet link remained unchanged - 2Mb/s.

Operator Pronto Tel d.o.o. had 11 users in 2015 and they generated 21,110 minutes of traffic in 2015. Out of the total traffic generated 3% was to destinations in the Republic of Serbia, 84% to other international destinations and 3% referred to the national traffic. The capacity of ProntoTel Internet link remained unchanged - 4Mb/s.

MNNews d.o.o. provided VoIP services at the wholesale level only to Montenegro Post, and the total traffic generated amounted to 155,139 minutes.

The Figure below gives an overview of generated VoIP traffic by years in the period 2008 - 2015.

In 2015, users generated 350,153 minutes of traffic through VoIP operators, which was a drop of 16.1% compared to 2014.

1.6. Market of leased lines

Leased lines are an important public electronic communication service, particularly for business users. They are used to connect the locations of business customers in one country or in several countries by leased lines of permanent capacity. In addition, leased lines are a basis for the development of alternative operators that compete, directly or indirectly, with the dominant (in-cumbent) operator.

The services of leased lines in Montenegrin market in 2015 were provided by the following operators of public electronic com-munication services:

- Crnogorski Telekom a.d,- M:tel d.o.o,- Broadcasting Center d.o.o,

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- Telenor d.o.o,- MNnews d.o.o.- IPMont d.o.o.

In addition to the Radio Broadcasting Centre which provides a leased lines service through the microwave links, other operators predominantly use optical fibres for the provision of leased lines as a physical medium for the transmission. This fact allows the operators to respond to the demands for high capacity leased lines, both on national and international levels.

In most European countries, operators that have developed within the framework of power supply and railway companies repre-sent strong competitors to the dominant operator. In Montenegro, Montenegrin Power Transmission System has been registered as the provider of leased lines; it has completed the laying of fibre optic cables and installation of portable devices, but it has not started to provide leased lines yet.

1.6.1 Prices of the service of leased lines

In 2015, there was no change in the retail price of the service of leased lines of Crnogorski Telekom, which has the biggest number of leased lines and gains the highest income from this kind of service in the market. New retail prices of leased lines applied at the Agency’s request by Crnogorski Telekom starting from 2012, which was a leader in the provision of this service according to the number of leased lines and their total capacities, continued to apply during 2015.

With regard to leased lines at the wholesale level, it should be noted that in October 2015, after the second round of the analysis of relevant markets, the Agency issued a decision designating Crnogorski Telekom a.d. as the operator with significant market power in the relevant market of terminating or trunk segments of leased lines – wholesale level. By that decision, the Agency imposed a broader set of obligations on the operator with significant market power compared to the obligations imposed after the first round of relevant market analysis that was conducted in 2013. Considering the wholesale prices of leased lines, the Agency imposed an obligation on Crnogorski Telekom to continue to apply the current rates for specific categories of terminating or trunk segments of leased lines, which were in compliance with the Commission Recommendation of 29 March 2005 on the provision of leased lines in the European Union — Part 2 — pricing aspects of wholesale leased lines part circuits).

For the comparison of prices of leased line services in neighbouring countries, the data was used from Report 4: - Supply of services in monitoring regulatory and market developments for electronic communications and information society services in Enlargement Countries, February 2014. This Report was prepared by the consulting company Cullen International for the needs of the European Commission. The comparative data shows annual fees for leased lines at the retail level, no VAT and one-off fees included.

The following Figure shows comparative prices of leased lines of the capacity of 2Mb/s, 2 km long.

Source: Report 4 - Supply of services in monitoring regulatory and market developments for electronic communications and information society services in Enlargement Countries - February 2014;

Based on this Figure it can be concluded that retail prices of the 2Mb/s, 2km long leased lines in Montenegro are lower compared to the costs of the same service with the majority of operators in neighbouring countries. The price of the above-mentioned


1service in Montenegro is € 2,472 and is significantly lower than the average price of this type of leased lines reviewed in the Report (3,754€).

The Figure below shows comparative prices of 34Mb/s, 2 km long leased lines.

Source: Report 4 - Supply of services in monitoring regulatory and market developments for electronic communications and information society services in Enlargement Countries - February 2014

It can be concluded from this Figure that retail prices of the service of a 34Mb/s, 2km long leased line in Montenegro are lower than the prices of the same service with the majority of operators in neighbouring countries. The price of the mentioned service in Montenegro is 13,680 € and is significantly lower than the average price of this type of leased lines in the countries covered by this Report, which reaches € 22,355.

1.6.2 Market structure

The total number of leased lines in 2015 amounted to 473 and included national and international leased lines of all capacities. This number also referred to leased lines at both retail and wholesale levels.

The structure of leased lines by capacities in 2015 is shown in the Figure below:

Compared to 2014, the number of leased lines reduced by 4.8%. In 2014 the total number of leased lines amounted to 497. However, it should be noted that the big rise has been noticed in relation with leased lines of other capacities (41.40%), which primarily refers to Ethernet leased lines. The number of leased lines of lower capacities reduced to a smaller extent.

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The total income generated from the provision of the service of leased lines in 2015 was €1,989,861.4. This income includes income from the services of national and international leased lines of all capacities, and income from leased lines at retail and wholesale levels. Compared to 2014, the total income from the service of leased lines dropped by 3.4%. In 2014 the total income from the service of leased lines reached 2,039,425.7€.

The structure of revenues in 2015 by capacities of leased lines is shown in the following Figure

In 2015 the number of leased lines dropped by 4.8%, which lead to the decrease of income of the operators in the market of leased lines by 3.4%.

1.7. Market of distribution of AVM content (radio and TV programs) to end-users

There were 8 operators registered for the provision of the service of distribution of audio and visual media content (hereinafter referred to as AVM) up to end-users in Montenegro in 2015. M:tel d.o.o. started providing services of distribution of AVM contents after buying the following operators: Cabling d.o.o., Eltamont d.o.o. and MediaNet d.o.o. which is why these three operators stopped providing services. At the end of 2015 operators in Montenegro provided their services over the following platforms:

- CDS (cable distribution networks, which include both analogue and digital CDS) over which the service is provided by M-Kabl d.o.o. and M:tel d.o.o.;

- MMDS (wireless networks for distribution of ATM content), over which the service was provided by Telemach d.o.o.;- IPTV (public fixed electronic communications networks), over which the service was provided by Crnogorski Telekom a.d.;- DTH (satellite distribution networks), used by Total TV Montenegro d.o.o. for the service provision.

Crnogorski Telekom a.d. and Total TV Montenegro d.o.o. provide this service in the whole territory of Montenegro, while other operators are of local or regional nature, that is, they are developing their systems in the territory of one or several municipalities, such as:

- Telemach d.o.o. in the territory of the municipalities of Bar, Berane, Bijelo Polje, Budva, Cetinje, Danilovgrad, Herceg Novi, Kotor, Nikšić, Podgorica, Tivat and Ulcinj;

- M:tel d.o.o. in the territory of the municipalities of Bar, Berane, Budva, Cetinje, Herceg Novi, Nikšić, Podgorica, Tivat and Ulcinj;

- M-kabl d.o.o. in the territory of the municipalities of Bar, Bijelo Polje, Herceg Novi, Kotor, Nikšić, Pljevlja, Podgorica and Tivat.

The number of connections for the distribution of AVM content at the end of 2015 amounted to 168,226.

The Figure below shows an overview of connections for the period 2008-2015:


1Number of connections of AVM contents distribution for the period 2008-2015

Compared to the end of 2014, the number of connections for the distribution of AVM content via various platforms (CDS/MMDS/IPTV/DTH) at the end of 2015 rose for 12,324 which is a rise of 9.31%.

Out of the total number of connections (168,226), 164,158 (97.58%) referred to natural persons. According to the data from the Statistical Office of Montenegro (2011 Census – Source: Monstat “Census of Population, Households and Dwellings in 2011“), the number of households in Montenegro amounted to 194,795. The penetration in relation to the number of households is 84.27%.

Operators providing the service of distribution of AVM content have recorded a steady increase in the number of connections, where the level of penetration and dynamics has varied in relation to individual platforms. The Figure below shows the shares of some platforms in the period 2008-2015.

Penetration by platforms for the period2008-2015

The structure of connections for AVM distribution of content up to end users via a variety of platforms shows that the overall structure is dominated by IPTV and DTH users with a market share of 75%, while the number of MMDS platform users is constantly reducing.

In their offer, operators usually have a basic package and a variety of additional packages. The number of TV channels in the basic package is on average 96 (minimum 58 and maximum 180 TV channels). As for the price of the monthly subscription, customers paid on average € 11.00 for a basic package (€ 10.12 minimum and € 11.90 maximum) in 2014.

The AVM content distribution market has not become saturated yet, and is likely to go on developing. Since the Agency started to monitor and analyse the development of the electronic communications market, the AVM distribution market in Montenegro has been steadily increasing. In addition to the growing number of users, the improvement of the quality and expansion of the range of services are also noticeable.

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1.8. Interconnection and operator access

In 2015 the Agency did not have any significant activities in the field of the adoption of the regulation in the area of interconnection and access since the Agency implemented the obligations required by the Law regarding the creation of an adequate regulatory framework. In fact, the most important activities of the Agency in the field of interconnection and access in 2015 were realized by implementing the Rulebook on Access and Interconnection (Official Gazette of Montenegro, 24/14). The mentioned Rulebook was adopted pursuant to Article 57, paragraph 3 of the Law on Electronic Communications, which specifies that the Agency shall establish by a regulation more detailed procedures for obtaining access and/or interconnection, as well as the conditions under which the operator can limit access and/or interconnection. Given the fact that the issues of access and interconnection are very important for the development of competition and the interests of end-users, and keeping in mind that the law does not fully define the procedures for obtaining access and interconnection, the Agency has adopted, in accordance with its responsibilities prescribed in Article 11 of the Law, the Rulebook that precisely defines the procedures relating to these matters. The Rulebook on access and interconnection is in part that be applied in accordance with the relevant EC Directives (Directive 2002/19/EC and Directive 2009/140/EC). In addition to the above-mentioned, in the development of this Rulebook, the Agency largely relied on the Rulebook on operator access and interconnection (Official Gazette of Montenegro, 79/09) which was proved to be very good during the implementation.

The Rulebook prescribes in detail the main objectives and re-quirements for obtaining interconnection and access. In addition, the Rulebook prescribes the procedure for submitting requests and responses to the request, their content, time limits for acting in certain stages of the procedure of implementation of access and interconnection, as well as the conditions when access and interconnection can be limited. The Rulebook also defines the way in which the Agency will handle operators’ requests, as well as the principles on which its decisions will be based.

In accordance with the analysis of relevant markets and as a result of cost models of operators with significant market power, the Agency also prescribed the price reduction of some wholesale services during 2014. In this context, we should emphasize the

reduction of prices of call termination services on fixed and mobile networks and the service of call origination on fixed networks. The undertaken regulatory measures will further im-prove the conditions for enhancing the effective and sustainable competition in the market, both by strengthening the position of existing alternative operators and the entry of new operators into the market of Montenegro. The above-mentioned enhancing of effective and sustainable competition in the market should create benefits for end-users through the reduction of retail prices of services and better quality of service provision. The implemen-tation of the signed contracts on the access and interconnection between the operators in Montenegro in 2015 was conducted in line with provisions of these contracts and the Law on Electronic Communications and the Agency did not receive the requests for the resolution of disputes between eh operators.

1.8.1. Prices of interconnection services

1.8.1.1. Prices of call termination on fixed networks

In 2015, in line with the cost model, there was no change in the price of call termination services on the fixed line of the incum-bent operator - Crnogorski Telekom. These prices are as follows:

• the price of national calls terminating on the fixed network of Crnogorski Telekom - 0.94 €cent/min;

• the price of calls terminating within the network code of access point on the fixed network of Crnogorski Telekom - 0.74 €cent/min.

In accordance with the Analysis of the relevant market of calls termination on individual public telephone networks, which are provided at a fixed location - wholesale level from November 2013, and in accordance with the Decision of the Agency of 1 August 2014, the price of call termination on the fixed network of M:tel is identical to the price of the national call termination services on the fixed network of Crnogorski Telekom (symmetry was applied to the price of call termination) and amounts to 0.94 € cents/minute.

The Figure below shows the trend in the prices of call termina-tion on the fixed network of Crnogorski Telekom in the period 2005 - 2015.


1This Figure shows that the prices of call termination on the fixed network were considerably reduced in the reporting period. The total reduction of the prices of call termination on the fixed network of Crnogorski Telekom for single transit level from 2005 to the end of 2015 amounted to 84.6%. Besides, the Reference Interconnection Offer from 2008 included call termination on the local level, which had not been in the offer of Crnogorski Telekom before.

The Figure below shows the movement of average prices of call termination on fixed networks of incumbent operators in Europe:

Source: Digital Agenda Scoreboard 2011 - Electronic communications market indicators, May 2011; BoR (15) 211 Termination Rates at European level – July 2015

The previous Figure shows that, based on the available data from July 2015, the average prices of all categories of call termination on the fixed line of incumbent operator in the observed European countries, which used to be fairly stable, significantly went down over the last year, according to the data from January 2014. Also, a comparison of different categories of call termination implies that the average price of double transit call termination in July 2015 was by approximately 45% higher than the price of local call termination in European countries.

To compare the price of the service of call termination on the fixed network with the prices in neighbouring countries the data from the BEREC Report on termination rates at European level (BoR (15) 211 Termination rates at European level - July 2015) which was published in December 2015. This report contains the termination rates on the fixed networks which were valid on 1 July 2015.

The following Figures show the prices of the service of call termination on the fixed network for the categories of local and single transit call termination on the network of incumbent operators in neighbouring countries (cost per minute, which is the average price of the first three minutes of the call at an interval of expensive traffic, so-called, peak -time). In most countries all three types of termination rates are applied, depending on the category of termination (local, single transit and double transit)6, because of network architecture, which is not the case in Montenegro. The Figures below show the weighted average price value for local and single transit of call termination for EU countries which is 0.31 € cents/minute, or 0.49 €cents /min respectively. (Source: Body of European Regulators for Electronic Communications (BEREC) ‘BoR (15) 211 Termination rates at European level – July 2015 – 7 December 2015.

6 There are three typical categories of services of call termination provided at fixed electronic communications networks:: Local call termination: when calls are transmitted over an interconnection link to the local exchange to which the end-user is directly connected. Single Transit call termination: when calls are transmitted over an interconnection link to a transit exchange, which has a direct link with a local

exchange to which the end-user is directly connected. Double Transit call termination: when calls are transmitted over an interconnection link to a transit exchange, which has no direct link with the local

exchange to which the end-user is directly connected, i.e. the call is transmitted via two transit exchanges.

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SOURCE: Body of European Regulators for Electronic Communications (BEREC) ‘BoR (15)211 Termination rates at European level – July 2015 – 7 December 2015

SOURCE: Body of European Regulators for Electronic Communications (BEREC) ‘BoR (15)211 Termination rates at European level – July 2015 – 7 December 2015

Based on the above Figure, it appears that despite the large decrease in the last few years, the price level of call termination services on the network of Crnogorski Telekom is above the average price of these services in neighbouring countries. Also, the

prices of these services in Montenegro are significantly higher than the average price of these services in EU Member States.

1.8.1.2. Prices of call termination on mobile networks

In November 2015 as a result of cost models of mobile operators the Agency reduced the price of the service of call termination on mobile networks. Based on the Decisions of the Agency of 24 November 2015 the Agency imposed on operators with signifi-cant market power in the market of call termination on mobile networks the obligation to apply the price that was the result of a cost model. The Decision of the Agency applies as of 1 January 2016 and the price of call termination into mobile networks was 1,18€cents/min which is a reduction of 38% compared to the previously valid price. In 2015 termination prices of SMS and MMS did not change. At the end of 2015, these prices were 2.2 €cents for SMS and 6.6 €cents for MMS.

The following Figure gives an overview of the price movements related to call termination on mobile networks in Montenegro in the period 2005 - 2015.


1

As the Figure shows, the price of call termination on mobile networks in Montenegro varied depending on whether the call originated on the fixed or mobile networks. This practice, which was discriminatory, was removed in 2007, when the same price started to be applied for calls terminating on mobile networks in Montenegro regardless of which Montenegrin network the call originated on. It should also be mentioned that the price of call termination in Montenegro of 2012 is reduced by 83.3%.

In the EU Member States the falling trend in the prices of call termination on mobile networks continues, as illustrated by the following Figure.

Source: Digital Agenda Scoreboard 2011 - Electronic communications market indicators, May 2011; Body of European Regulators for Elec-tronic Communications (BEREC) ‘Termination Rates Benchmark Snapshot (July 2012, July 2013)’; BoR (14) 173 Termination Rates Benchmark

Snapshot (as of July 2014); BoR (15)211 Termination rates at European level – July 2015

As the Figure above shows, the average price of call termination on the networks of mobile operators in the EU countries decreased by 33% compared to the previous year. However, there are still big differences in prices of this service among Member States, from 0.405 € cents/min in Malta to 7.14 €cents/ min in Lichtenstein. Although the prices of call termination on mobile networks have had a steady downward trend, they are still significantly higher than the prices of call termination on the fixed networks.

To compare the price of call termination on mobile networks with prices in neighbouring countries, the data from the BEREC Re-port on the termination rates at European level (‘BoR (15)211 Termination rates at European level – July 2015’) which was published in December 2015. This report contains the termination prices on fixed networks valid as of 1 July 2015.

The Figure below shows comparative data for the prices of call termination on mobile networks in neighbouring countries, based on the first three minutes in the peak-time. In case that a country applies asymmetric prices, the given price is the price of a call

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termination on the network of the major mobile operator (in terms of income and number of subscribers). In Montenegro, sym-metric prices of this service are applied, while in 1 neighbouring country only (Turkey) asymmetric prices of call termination on mobile networks are applied.

Source: Report 4 - Supply of services in monitoring regulatory and market developments for electronic communications and in-formation society services in Enlargement Countries - February 2014; BoR (14) 173 Termination Rates Benchmark Snapshot (as of

July 2014); BoR (15)211 Termination rates at European level – July 2015

As the Figure shows, the price level of this service charged by operators in Montenegro in 2015 was above the average price of the service in the EU Member States, which amounted to 1.13 €cent/min (Source: Body of European Regulators for Electronic Commu-nications (BEREC) BoR (15) 211 Termination rates at European level – July 2015’).

1.8.2. Market of call termination

1.8.2.1. Market of call termination on fixed networks

The total volume of traffic terminating on fixed networks in Montenegro in 2015 was 42,485,225 minutes, which made a fall of 19.33% compared to 2014. However, the category of national call termination recorded a decrease of the volume of traffic of 1 compared to 2014, while the category of international call termination recorded a drop of 23.8% compared to 2014. The structure of call termination is presented in the Figure below.

Structure of the volumen of terminated calls on fixed network in Montenegro in 2015

The income from calls terminating on fixed networks in Montenegro in 2015 amounted to 2,525,784€, which was an 19.8% drop compared to 2014. The structure of income from call termination on fixed networks is shown in the Figure below.


1Structure of revenues from terminated calls on fixed networks in 2015

The income from termination of national calls declined by 7.5% compared to 2014. The income from termination of international calls recorded a drop of 20.2% compared to 2014.

1.8.2.2. Market of call termination on mobile networks

The total volume of traffic terminating on mobile networks in Montenegro in 2014 amounted to 377,689,627 minutes, which is a decrease of 0.15% compared to 2014. The decrease in the category of national call termination was 4.5% compared to 2014 and in the category of international call termination an increase of traffic volume of 8.24% compared to 2014 was recorded. The structure of call termination is shown in the following Figure:

Structure of volume of terminated calls on mobile networks in 2015

The income from call termination on mobile networks of Montenegrin operators in 2015 amounted to 24,470,444€, which is an increase of 16.6% compared to 2014. The structure of income from call termination on mobile networks is shown in the Figure below:

Structure of revenues from terminated calls on mobile networks in 2015

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The drop in the income from national call termination was 23.3% compared to 2014 (mainly as a result of implementation of lower prices of call termination on mobile networks), while the income from international call termination rose by 32.2% compared to2014.

1.9. Service of number portability

Number portability is a service which allows each subscriber to keep his/her number when changing the operator. A number can be ported from fixed to fixed network, and from mobile to mobile network. The procedure for the provision of this service is prescribed by the Law on Electronic Communications and the Rulebook on Number Portability (Official Gazette of Montenegro, 28/14).

The Rulebook on number portability, adopted in accordance with the Law on Electronic Communications and Directive 2009/136/EC, prescribes a shorter time for number porting than the previous Rulebook. Maximum time for number porting is now 3 working days, whereas previously it was 5 working days. A subscriber who wants to port his/her number submits an application for number porting to the operator receiving the number (the operator to which the subscriber wants to port his/her number), and it is considered as a request for termination of the contract with the donor operator (the operator with which a subscriber has a contract). If all the conditions for number porting are met, a subscriber is determined the date of number porting, which may not be longer than 3 working days since the submission of the application. A subscriber will not be able to use the service on the date of number porting only in the period from 13.00 to16.00 hours. The subscriber can port again his/her number 3 months following the latest porting. If the application for porting is denied, the subscriber may file a complaint with the Agency.

Pursuant to the Law on Electronic Communications and the Rulebook on number portability, the Agency has issued a de-cision on setting a one-off fee for number portability service and the way of its distribution. The prescribed fee amounts to €3.50 and is distributed between the operator donor and the operator recipient of the telephone number in ratio 80:20, i.e. the operator from whose network the number is ported gets €2.80, and the operator to whose network the number is ported € 0.70 per ported number. Telecommunications operators: Crnogorski Telekom a.d, Telenor d.o.o. and M:tel and Telemach d.o.o. which are currently providing the service of number porting have decided to provide this service free of charge for the time being. Subscribers do not pay any fee for the service of number porting, but according to the Agency’s decision, the operator recipient shall pay to the operator donor the amount of € 2.8 per ported number.

In 2015, the facility of number portability was used by 6,832 sub-scribers, which is an increase of 44% compared to the previous year. Like in previous years, in 2015 this service was mainly used by mobile subscribers (5,776), while the total of 1056 numbers was ported in the fixed telephony. With regard to fixed net-works, 509 numbers were ported from the fixed network of Crnogorski Telekom to the fixed network of M:tel, 510 numbers were ported from the fixed network of Crnogorski Telekom to the fixed network of Telenor and 37 numbers was ported from the fixed network of Crnogorski Telekom to the fixed network

of Telemach. The Figure below illustrates the shares of numbers ported to the fixed networks of Crnogorski Telekom.

With regard to number porting to mobile networks in 2015, the majority of numbers were ported to the network of M:tel (2,382), then to the mobile network of Crnogorski Telekom (1,977), while 1,417 numbers were ported to the Telenor’s network. The Figure below shows the shares of ported numbers by operators in 2015 expressed in percentages.

The percentage of numbers ported to the mobile network of M:tel significantly increased compared to the previous calendar years. Actually, after 33% of numbers ported to M:tel network in 2012, there was a drop of ported number to 27% in 2013, while 34.90% of numbers were ported to M:tel’s network in 2014, and in 2015 the percentage of ported numbers to the M:tel network increased to 41.2% of the total of the ported numbers to mo-bile networks. There is an obvious downward trend in the total number of ported numbers to the mobile network of Crnogorski Telekom from 53% in 2012 to 47% in 2013, 40.86% in 2014 and 34.2% in 2015. As for Telenor, 24.5% of the total ported numbers were ported to Telenor network. Expressed in percentages, 14% of ported numbers to were ported to Telenor network in 2012, 26% in 2013 and 24.24% in 2014.

In 2015 most numbers were ported from the mobile network of Crnogorski Telekom (2,602), which is followed by Telenor (2,332) and least from the M:tel network (842 numbers).

The Figure below presents the percentages of ported numbers from each of the three networks.


1The comparison of these data with the data from previous years shows that in 2015 most numbers were ported from the mobile network of Crnogorski Telenor (45%) of the total of ported numbers, and this percentage significantly increased compared to the previous years, because in 2012 this percentage was 16%, 29% in 2013 and 35.38% in 2014.

In 2015, the system of the central database of ported numbers (CBPB) was functioning at a satisfactory level, with full availability and without any malfunction. According to monthly reports of CBPB administrator, the average duration of number porting procedure has been shorter than 3 working days.

The service of number portability has been used from 1 December 2011, and until 31 December 2015 a total of 20,020 numbers were ported, of which 2,318 numbers within fixed and 17,702 numbers within mobile networks. In fixed networks, out of the total of 2,318 ported numbers, 511 numbers were ported from the Crnogorski Telekom network to the fixed network of Telenor, 1,768 from fixed network of Crnogorski Telecom to the fixed network of M:tel, 37 numbers from the fixed network of Crnogorski Telekom to the Telemach network and 2 numbers were ported from the fixed network of M:tel to the fixed network of Crnogorski Telekom. In mobile networks most numbers were ported to the mobile network of Crnogorski Telekom: 7,519 numbers or 43%, then to the network of M: Tel: the total 6,156 numbers or 34%, while 4,027 numbers or 23% of all ported numbers were ported to the Telenor network in the period since this service started to be provided to customers.

The service of number portability has been successfully imple-mented and there are ongoing activities on its improvement. This service is used by a growing number of users, and through promoting competition, it provides end-users the possibility to change customer packages according to their needs (affordable prices, better quality of services) while keeping their telephone number.

1.10. Joint use of electronic communications infrastructure

The joint use of electronic communications infrastructure in Montenegro is regulated by the following acts:

- The Law on Electronic Communications (Official Gazette of Montenegro, 40/13);

- The Rulebook on joint use of electronic communica-tions infrastructure and associated facilities (Official Gazette of Montenegro, 52/14);

- Rulebook on the type, mode of delivery and disclosure of data on electronic communications infrastructure and associated facilities, which may be of interest for joint use (Official Gazette of the Montenegro, 23/14).

Pursuant to the Agency’s competencies defined in Article 11 paragraph 9 of the Law to promote efficient use of electronic communications infrastructure, the Agency carries it out according to relevant data that it obtains from the operators.

According to Article 53 of the Law, for the purposes of rational use of space, environmental protection and public health, national security, spatial planning and protection of cultural heritage, construction and use of electronic communications network, electronic communications infrastructure and associ-ated facilities, the operators shall perform their activities in the manner which enables a shared use of elements of electronic communications infrastructure and associated facilities, in ac-cordance with available capacities. Mutual rights and obligations of the operators in the joint use of electronic communications infrastructure and associated facilities shall be regulated by the contract, while more detailed conditions and manner of the shared use of electronic communications infrastructure and associated facilities, and the measures for increasing availability of free capacities in such infrastructure, shall be determined by the regulation of the Agency.

Based on the information that the Agency has obtained from the operators, an overview has been made of the joint use of electronic communications infrastructure (cable ducts, antenna masts and facilities - buildings).

Cable ducts

Lease of space in electronic communications cable ducts is provided by:

- Crnogorski Telekom, and - Public Utility Enterprise, d.o.o. Podgorica.

The possibility to lease space in cable ducts led to faster building of access networks and development of new services, which is confirmed by the fact that cable ducts of Crnogorski Telecom a.d. are hired by 8 operators (Public Utility Enterprise Podgorica, M-Kabl d.o.o, FibreNet d.o.o, IPMont d.o.o, MNNEWS, Monte-negrin Power Transmission System, Telenor, M:tel and Telemach) while cable ducts of the Public Utility Enterprise Podgorica are hired by 6 operators (Crnogorski Telekom, M-Kabl, M:tel, MN-NEWS, Montenegrin Power Transmission System and Telemach).

Joint use of cable ducts can be found in 11 Montenegrin munici-palities in the total length of about 350 km (which is by 35% more than in 2014). A detailed overview of the joint use of electronic communications cable ducts is given in the following Table.

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Municipality Length of EC ducts

f40 mm (m)Length of EC ducts

f20 mm (m)Length of EC ducts

3xf40 mm (m)Total ducts (m)

Podgorica 91183 141746 2749 240973

Herceg Novi 7811 11643,4 0 19454

Tivat 12809 11719 0 24528

Kotor 5450 4507 0 9957

Pljevlja 1962 5781 0 7743

Bijelo Polje 3841 9690,5 0 13532

Budvu 0 6533 0 6533

Bar 416 7887,5 0 8304

Nikšić 0 10558,5 0 10559

Cetinje 0 2991 0 2991

Berane 0 2404 0 2404

Total 123472 215461 2749 346977

Source: Contracts on the lease of cable ducts submitted by Crnogorski Telekom and Public Utility Company d.o.o. Podgorica

The Figure below shows the trends of the lease of cable ducts (m) for the period from July 2011 till the end 2015. The Figure illus-trates a constant growth of leased capacity of cable ducts.

Overview of leased cable ducts (m) for the period July 2011-February 2015

Source: Contracts on the lease of cable ducts submitted by Crnogorski Telekom and Public Utility Company d.o.o. Podgorica

Relations with undertakings leasing cable ducts are regulated by individual contracts. The current prices of the space lease in cable ducts of Crnogorski Telekom and the Public Utility Enterprise Podgorica are 0.0811 € for a cable of 40 mm cross-section, and 0.0304 € for a cable of 20 mm cross-section.

Antenna masts

Crnogorski Telekom, Telenor, M:tel, Radio Broadcasting Centre and Telemach in Montenegro have the total of 537 antenna masts. Individual shares of these operators in the total number of antenna masts are given in the following Figure.


1

Source: Data submitted by operators on the prescribed forms

Operators - owners of antenna masts lease space on 219 masts, which accounts for about 41% of the total number of antenna masts. The following Figure shows the shares of some operators in the total number of masts where the right to use the space is given to other operators.

Source: Data submitted by operators on the prescribed forms

Mobile operators (Crnogorski Telekom, Telenor and M:tel) use almost equally their own masts and the masts of other operators, where the share of antenna masts owned by the Radio Broadcasting Centre on the networks of Crnogorski Telekom, Telenor and M:tel is about 30%. These three mobile operators are present on 49 antenna masts.

Facilities - buildings

The joint use of space in the facilities - buildings of Crnogorski Telekom, Telenor, M:tel and the Radio Broadcasting Centre can be found at the total 124 locations such as:

- in 22 facilities of Crnogorski Telekom,- in 9 facilities of M:tel,- in 32 facilities of Telenor,- in 110 facilities of the Radio Broadcasting Centre and- in 1 facility of Telemach.

By giving opinions on the documents on space planning, issuing the Rulebook on the conditions for the planning, construction, maintenance and the use of electronic communications networks, electronic communications infrastructure and associated fa-cilities, as well as keeping the favourable prices of the lease of cable ducts according to the results of the analysis of the relevant market of physical access to infrastructure, the Agency has largely contributed to making the joint use of electronic communica-tions infrastructure in Montenegro more frequent and becoming a model on which the operators base the construction of their electronic communications networks and the launch of their services.

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1.11. Monitoring of the quality of electronic communications services

Pursuant to Article 155 of the Law on Electronic Communications, the operators shall submit to the Agency for Electronic Com-munications and Postal Services measured quality parameters in fixed and mobile networks. In 2014 the Agency adopted a new Rulebook on the quality of public electronic communication services (hereinafter referred to as the Rulebook), which was published in the Official Gazette of Montenegro, 33/14. This Rulebook prescribes the quality parameters of public electronic communication services in fixed and mobile networks, as well as measurement methods, the method of publication of the results of measurement and the time periods in which measurements are made.

In order to make publicly available the information about the quality of services that are provided by operators in Montenegro, following the provisions of Article 155 of the Law, the Agency shall publish on its website comparative overviews of measured values of quality parameters for the public electronic communication services in fixed and mobile electronic communication networks. According to the same Article of the Law, the operators shall make publicly available the measured parameters of quality in their networks in order to inform the users about the levels of quality of the services they offer.

The operators which provide services on the public mobile electronic communications network (Crnogorski Telekom a.d., Telenor d.o.o.and M:tel d.o.o.) delivered in 2015 regular reports about measured values of the quality of the electronic commu-nications services parameters. With regard to the fixed network operators, the mentioned reports were regularly submitted by Crnogorski Telekom a.d. M:tel d.o.o., Telemach d.o.o. Cabling d.o.o, Eltamont d.o.o, MediaNetd.o.o, M-Kabl d.o.o, Total TV Montenegro d.o.o. and IPMont d.o.o.

On the basis of the delivered reports, the Agency made compar-ative overviews of the measured values of the quality parameters for public electronic communication services on fixed and mo-bile electronic communications networks, and published them on its website address: http://www.ekip.me/zastita/kvalitet.php. The comparative overviews of these parameters of quality gave the users needed information about the quality of services and helped them select electronic communication services of better quality and a more reliable operator. The operators used these overviews to compare the parameters of their network with the ones of their competitors, and to take measures for the improvement of certain parameters of quality on fixed and mobile networks in order to offer their users the services of as good quality as possible.

The analysis of parameters of the service quality shows that the quality of services is not uniform and that some parameters of quality on fixed and mobile networks considerably vary from operator to operator. Being aware of the fact that the values of certain parameters of quality are not satisfactory, the Agency has repeatedly contacted the operators, indicating that the value of some parameters diverts from the expected one and that they should take measures to improve it. When the parameter of the quality of service on the public telephone network at a fixed location is concerned, in 2015 the Agency drew the operators’

attention to the parameter of “Time of service setting at a fixed location” and “Failure repair time for access lines” particularly on the network of Crnogorski Telekom. Also, the Agency reminded the operators of public electronic communication services on the fixed network providing the service of distribution of AVM content of the obligation under the Rulebook to publish the measured values of the parameters of quality on their websites, and in 2015 all operators acted accordingly.

By analyzing the report on the parameters of quality of publicly available electronic communications services in 2015 it could be noticed that during that year the values of the parameters of the quality of services on mobile electronic communications network varied from quarter to quarter.

Taking into account that the users of public electronic commu-nication services, have the right, if technically feasible, of access to public electronic communications network within 8 days from the date of application, the Agency notified Crnogorski Telecom of an unreasonably long period it took this operator to establish the service at a fixed location and warned this operator to comply with the legally defined term. In the first quarter of 2015, Crnogorski Telekom managed to reduce the time needed for the establishment of the service to 8.91 days, while in the third quarter of 2015 that period was 15.42 days. On annual basis, this time amounted to 12.01 days.

The situation is similar with the parameter of “Failure repair time for access line - for 80% of failures on the access line in the observed period”. In 2015 Crnogorski Telekom significantly reduced the value of this parameter compared to the previous year, from 48.05 hours at the end of 2014 to 37.83 hours in 2015.

As far as the values of the parameters of quality of the service of AVM distribution are concerned, there are major differences among operators in particular for the parameters “Time of set-ting up a service at a fixed location”, which ranges from 2 days to 12.69 days; “Failure repair time for access lines”, which ranges from 8 hours to 43.04 hours and “Response time of the customer service” which ranges from 1.7 seconds to 30 seconds.

The value of the parameter “Response time of the customer service” on the mobile network of Crnogorski Telecom is 18 seconds, in the mobile network of M:tel 33 seconds, and in the Telenor mobile network it was 32 seconds. Telenor significantly reduced the value of this parameter compared to 2015.

Compared to the reports from the previous period, the oper-ators made progress in 2015 and improved the value of certain parameters of the quality of services they offered to users, but in spite of these improvements and the efforts of operators to achieve the best possible values of parameters, the values of some parameters remained quite high. This primarily refers to the parameters to which the Agency has already drawn the attention of the operators, i.e. the “Time of setting up the service at a fixed location” and “Failure repair time for access lines” on the network of Crnogorski Telekom, as well as the parameter of “Response time of the customer service”, concerning all operators.

In order to keep the users of electronic communications services informed about the quality of services offered by operators so that they could select electronic communications services that meet their needs, the Agency will continue to monitor the quality of electronic communications services, publish on its website the comparative values of the parameters of the quality of ser-


1vices on fixed and mobile electronic communications networks, perform a detailed analysis of the values of the parameters of the quality of service, and require from operators to improve the parameters that are not at a satisfactory level.

1.12 Degree of development of electronic communications networks

Electronic communications networks and electronic communi-cations infrastructure in Montenegro allow the use of the latest technologies in the provision of electronic communication services. Such networks and infrastructure allow the users in Montenegro to have almost all existing electronic communica-tions services that are provided in the world, which currently meet the needs of the users of these services. Major operators are conducting or have conducted migration of their networks to All-IP environment, so that over a single IP network they can provide the services of voice and data transmission, and distri-bution of AVM content.

1.12.1. Degree of development of fixed electronic communications networks

The backbone is based on SDH and MPLS transmission systems and implemented over the fibre optic cables and radio relay systems as physical media for signal transmission.

SDH operators’ backbones have been implemented by the latest SDH equipment of well-known international manufacturers (Siemens, ECI, Huavei). The maximum network capacity is 10Gb/s (STM64) and is used for the transmission of SDH and EoS (Eth-ernet over SDH) traffic. Main SDH network is mainly realized by a ring topology in order to protect services. A smaller part of the main SDH network has a chain topology in places where it was not physically possible to implement a ring topology. There are also local SDH rings and chains to receive SDH and Ethernet traffic of a local transport level.

MPLS backbone is transport infrastructure that enables the trans-mission of IP traffic at high speeds in the territory of Montenegro. Using MPLS network, all business customers are provided with basic IP communication service for connecting remote sites to the central location, and with the possibility of implementing a set of additional services over MPLS networks, which are based on advanced technologies that enable automation of system configuration on demand, high security of transport of end-to-end network traffic, mapping of priority business processes through the backbone, as well as advanced functions of monitoring and network management. MPLS network is used as a backbone for broadband services that are provided to the users of those services (broadband internet IPTV service, etc.).

DWDM technology enables the increase in the capacity of ex-isting fibre optic cables by multiplexing wavelength. This type of technology provides a transparent transmission of national and international transit traffic of a large capacity.

IMS (IP Multimedia Subsystem) is a network architecture that is used to provide multimedia services to end-users. It has been

standardized in accordance with 3GPP/TISPAN specifications and is intended to provide various multimedia services to end users (VoIP, video streaming, chat, messaging). In addition to M:tel, which has used this platform from its inception, and Telenor and Crnogorski Telekom began to implement the IMS platform. Crnogorski Telekom started implementing it in 2012 and the implementation was finished in November 2015.

Due to the progress of technology and the development of new services, the existing copper access networks are exposed to growing demands for providing communication and support services from IP platform. Therefore, in planning new and in mod-ernization of the existing access network, Crnogorski Telekom has decided to use MSAN (Multi Service Access Node) concept of access network elements, i.e. to use the equipment that allows the provision of voice services (Voice, ISDN BRI, ISDN PRI and Broadband) and broadband services over xDSL networks copper pairs. MSAN allows PSTN users to switch to IMS-based system without the use of additional equipment, i.e. without ADSL or FTTH connection, but the phone remains connected directly to the copper network towards the MSAN POTS or ISDN port. The equipment is fully integrated with the IMS system. MSAN active equipment is incorporated in accordance with the de-veloped network of routers and switches in MIPNET network (MPLS network of Crnogorski Telekom) and fully follows MIPNET network topology. The implementation of xDSL technology enables end-users to obtain over the existing infrastructure (copper pairs) not only the access to the fixed telephony and its service, but also high speed Internet access (theoretically up to 24 Mb/s - ADSL2 +) and the service of distribution of AVM content. The availability of ADSL service was 99.82%, i.e. 99.82% of users who have a fixed telephone connection can introduce ADSL service. In 2015, Crnogorski Telekom had 203 ADSL nodes.

In addition, the development of access networks based on fibre optic cables (FTTx) has been intensified. Crnogorski Telekom has its access network developed using the GPON technology, which provides Internet access at considerably higher speeds, which results in a better quality of service for end-users. M:tel, M:Kabl, Telemach and MNNEWS are also developing their access networks based on fibre optic cables. In 2015 the optical fibres became available to the end-users in 16 municipalities in Montenegro. Compared to the previous year the number of users with FTTx connection increased by about 40%. The operators continue to expand their networks. During the installation of the cables with optical fibres telecommunications cable ducts were majorly jointly used and the joint use of cable ducts was implemented in 11 Montenegrin municipalities in the total length of 347km which is about 35% more than in December 2014.

Compared to the previous year, there was an evident trend of modernization and development of networks noticeable with operators involved in the distribution of AVM content to end-us-ers. All four platforms for the distribution of AVM content to end-users can be found in 10 municipalities in Montenegro (IPTV, DTH, KDS and MMDS). Two mostly used platforms are the IPTV platform of Crnogorski Telekom currently used by 37.40% and DTH Total TV Montenegro currently used by 37.28% of the total number of users of the service of distribution of AVM contents.

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1.12.2. Degree of development of mobile electronic communications networks

A wide range of mobile communication services are provided via three terrestrial mobile communications networks operated by three mobile operators: Telenor, Crnogorski Telekom (T-Mobile) and M:tel. All three networks are based on harmonized standards of the second generation (GSM/DCS1800, including a package segment GPRS or EDGE) and third generation (UMTS, including HSPA+ and DC-HSDPA). Telenor as of 2012 and Crnogorski Tele-kom as of 2013 have implemented LTE technology. In commercial terms this technology is considered 4G technology of mobile communication networks. Radio access part GSM/DCS1800 of networks has been implemented in the 900 MHz and 1800 MHz bands, while the access part of UMTS networks has been implemented in the 900 MHz and 2 GHz band. Telenor and Crnogorski Telekom have implemented the LTE technology in the 1800MHz band. By the assignment of additional radio frequency resources in the mentioned bands in the beginning of 2012 and by authorising unconditional re-farming, following the principle of technological neutrality by the Agency UMTS technology was implemented in the band 900 MHz and LTE technology in 1800 MHz. GSM/DCS1800, UMTS and LTE networks operate integrally with all three mobile operators, with integrated core and shared backbone. The so-called vertical handover is available in the networks of all three operators. The transmission part of Telenor and M:tel networks are mainly based on microwave radio relay links, and to a lesser extent, predominantly in a backhoul segment, over optical fibre. Crnogorski Telekom uses fibre optic capacities in its backbone, while in backhaul it significantly relies on microwave radio-relay links. It is important to note that all three operators have migrated to All IP transmission.

According to the degree of population coverage by a mobile network signal, Montenegro ranks among the most developed European countries. In fact, all three operators point out that coverage of the population by GSM signal reaches about 99% (data obtained through software prediction), which places Montenegro among the countries with very good coverage of the population. The coverage of the territory by GSM signal includes all populated areas, main roads (including tunnels ) and tourist centres, and reaches over 90% of the all territory of Montenegro (data obtained through software prediction) . Signal coverage by UMTS networks is also high, and includes all urban settlements and a considerable part of suburban and rural areas. By implementation of the UMTS technology in the 900 MHz band, the coverage of population by 3G signal has been considerably improved, reaching about 97% in Telenor network, about 94% in the network of Crnogorski Telekom, and about 90% in the M:tel network (data obtained through software prediction). The LTE technology is currently available in urban areas of all municipalities with the exception of the newly formed municipalities of Gusinje and Petnjica, primarily through

the LTE network of Crnogorski Telekom. Telenor covered by LTE network signal urban parts of all towns in central and southern regions and major towns in the northern region (services are not available in the municipalities of Andrijevica, Gusinje, Kolašin, Mojkovac, Petnjica, Plužine, Šavnik and Žabljak). The levels of population coverage by LTE network signals of Crnogorski Tel-ekom is about 65%, Telenor about 45% (data obtained through a software prediction). In 2015 Crnogorski Telecom and Telenor improved the capacity and availability of the LTE network while M:tel focused on the further development of the UMTS network, particularly in rural areas. The main progress in availability of mobile broadband services of data services, especially in rural and sparsely populated areas, is expected by valorisation of the 800 MHz band (part of the digital dividend spectrum) for the implementation of the LTE networks.

The level of technological development of modern mobile communications network is reflected in the capabilities of the network to support broadband data services in the first place. When it comes to data service support, GPRS / EDGE is imple-mented in all GSM/DCS1800 radio base stations of all operators. As a reminder, GPRS provides downlink data rate of 53 kb/s, and EDGE of about 230 kb/s (theoretical maximum of 115 kb/s for GPRS, and 384 kb/s for EDGE is limited by processing speed of the terminal). Theoretically, on UMTS networks without HSxPA upgrades the maximum data rate of 384 kb/s can be achieved, and depending on the implemented version of HSDPA/HSUPA technology it is possible to achieve a downlink data rate of 14.4 Mb/s, or uplink data rate of 5.76 Mb/s. In the access part of the 3G network (regardless of the band) all three mobile operators in Montenegro have implemented HSPA + technology. All 3G radio base stations of all three mobile operators theoretically allow maximum downlink rate of 21.1 Mb/s. According to the needs for capacity at some locations in urban parts of major towns, a dual-carrier concept is implemented that allows a downlink data rate of 42.2 Mb/s, which is currently the latest commercially available version of the UMTS standards globally. DC-HSDPA is currently the latest commercially available version of the IMT-2000/UMTS standard globally. LTE technology implemented on the networks of Telenor provides a maximum downlink data rate of 100 Mb/s and uplink data rate of 48 Mb/s, while these values on the network of Crnogorski Telekom are 150 Mb/s for downlink and 50 Mb/s for uplink. The specified values are theoretical maximums, which cannot be reached under real conditions. Actual data rates at the application level depend on many parameters, and some of them are not related to network performance.

Given the number of users, degree of competition, diversity of services and applied technology it can be considered that mobile communications networks and services represent the most developed segment of the electronic communications market in Montenegro.

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2.1. Analysis of relevant markets in order to assess the degree of market competitiveness

The Agency for Electronic Communications and Postal Services is conducting the process of the analysis of relevant markets in order to assess market efficiency. The basic objective of the analysis of relevant markets is to determine the presence of the operator with individual or collective market power in the relevant market. The Agency imposes regulatory remedies on operators with significant market power if the method of analysis and/or the Three- Criteria Test reveals that competition in the relevant market is not efficient, or the Agency withdraws the remedies if it is otherwise determined. In addition, the Agency monitors the implementation of the prescribed regulatory obligations by the operators with significant market power.

2.1.1. The European Union regulatory framework for electronic communications

The EU regulatory framework for electronic communications aims to remove obstacles to the efficient functioning of the European single market of electronic communications networks and services. This framework today is a regulatory model which is accepted as the best-known model in many countries that are not the European Union Member States. The 2002 Regulatory Framework consisted of five directives, including:

Directive 2002/19/EC on access to, and interconnection of, electronic communications networks and associated facilities (“Access Directive”)7,

Directive2002/20/EC on the authorization of electronic communications networks and services (“Authorization Directive”)8,

Directive 2002/21/EC on a common regulatory frame-work for electronic communications networks and services (“Framework Directive”)9,

Directive 2002/22/EC on universal service and users’ rights relating to electronic communications networks and services (“Universal Service Directive”)10,

Directive 2002/58/EC on the protection of privacy and secrecy of communications in the electronic com-munications sector (“Directive on privacy in electronic communications”)11.

The European Commission published in 2002 Commission guide-

7 Directive 2002/19/EC Access directive (OJ of the ECL 108/7 from 24.02.2002)

8 Directive 2002/20/EC Authorisation directive (OJ of the ECL 108/21 from 24.02.2002)

9 Directive 2002/21/EC Framework directive (OJ of the ECL 108/33 from 24.02.2002)

10 Directive 2002/22/EC Universal service directive (OJ of the ECL 108/51 from 24.02.2002)

11 Directive 2002/58/EC Directive on privacy and electronic communications (OJ of the ECL 201/37 from 31.07.2002)

lines on market analysis and the assessment of significant market power under the Community regulatory framework for electronic communications networks and services12. The basic purpose of the Guidelines was to help harmonize the implementation of regulatory principles and consistency of regulation. The use of a consistent methodology for market definition and analyses would ensure that the majority of markets defined for the needs of sector-specific regulation comply with the definitions which would be applied according to the rules for the protection of competition.

According to Article 15 of the Framework Directive (Directive 2002/21/EC), the European Commission adopted the following recommendations on relevant markets in the area of electronic communications:

Recommendation (2003/311/EC)13 of 11 February 2003 on relevant markets within the electronic communi-cations sector, which contains 18 markets susceptible to ex-ante regulation,

Recommendation (2007/879/EC)14 of 17 December 2007 on relevant markets in the area of electronic communications, which contains 7 markets susceptible to ex-ante regulation

Following the initiative of the European Commission, the Euro-pean Parliament and the Council of Ministers of the European Union adopted in December 2009 a new Regulatory Framework, which consists of two directives and one regulation:

Regulation 1211/2009 of the European Parliament and of the Council, establishing the Body of European Regulators for Electronic Communications (BEREC)15;

Directive 2009/136/EC of the European Parliament, and of the Council16, amending Directive 2002/22/EC on Universal Service, Directive 2002/58/EC concerning the processing of personal data and the Regulation No 2006/2004 on cooperation between national au-

12 Commission Guidelines on market analysis and the assessment of sig-nificant market power under the Community regulatory framework for electronic communications networks and services (OJ of the ECC 165/6 from 11.07.2002)

13 Commission recommendation on relevant product and service markets within the electronic communications sector susceptible to ex ante regulation in accordance with Directive 2002/21/EC of the European parliament and of the Council on a common regulatory framework for electronic communication networks and services (OJ of the EC L 114/456 from 08.05.2003.

14 Commission recommendation of 17 December 2007 on relevant product and service markets within the electronic communications sector sus-ceptible to ex ante regulation in accordance with Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communications networks and services.

15 Regulation (EC) No 1211/2009 of the European Parliament and of the Council of 25 November 2009, establishing the Body of European Regulators for Electronic Communications (BEREC) and the Office

16 Directive 2009/136/EC of the European Parliament and of the Council of 25 November 2009, amending Directive 2002/22/EC on universal service and users’ rights relating to electronic communications networks and ser-vices, Directive 2002/58/EC concerning the processing of personal data and the protection of privacy in the electronic communications sector and Regulation (EC) No 2006/2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws

2. IMPOSED REGULATORY MEASURES


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thorities responsible for the enforcement of consumer protection laws;

• Directive 2009/140/EC of the European Parliament, and of the Council17, amending Directive 2002/21/EC on a common regulatory framework, Directive 2002/19/EC on access and interconnection , and Directive 2002/20/ EC on the authorization of electronic communications networks and services.

2.1.2. Legal basis for the implementation of the procedures of definition and analysis of relevant markets

The Law on Electronic Communications (Official Gazette of Mon-tenegro, 50/08) defines in Article 8, inter alia, the competencies of the Agency to carry out market control, designate operators with significant market power and undertake necessary action to prevent negative effects of operators’ significant market power.According to Article 41 of the Law, the Agency adopted the Decision on relevant service markets and relevant geographic market (Official Gazette of Montenegro, 29/09), by which the following relevant markets were identified:

1. The market of access to public telephone network at a fixed location for residential and non-residential customers – retail level;

2. The market of call origination on public telephone network, provided at a fixed location – wholesale level;

3. The market of call termination on public individual telephone networks, provided at a fixed location – wholesale level;

4. The market of access to network infrastructure (including shared or fully-unbundled access at a fixed location) – wholesale level;

5. The market of broadband access – wholesale level;6. The market of terminating or trunk segments of leased

lines, regardless of technology used to provide the leased or dedicated capacity – wholesale level;

7. The market of call termination on individual mobile networks – wholesale level.

During 2011, in accordance with Article 41 of the Law, the Agency adopted the Decision on relevant service markets subject to verification by the fulfilment of the Three Criteria Test (Official Gazette of Montenegro, 19/11). That Decision defines the following relevant service markets:

(1) Retail market of publicly available services of local and long-distance calls for non-residential and residential customers, provided at a fixed location;

(2) Retail market of publicly available service of internation-al calls for non-residential and residential customers, provided at a fixed location;

(3) Wholesale market of trunk segments of leased lines;(4) Wholesale market of access and call origination on

public mobile telephone networks;(5) Wholesale market of transmission and emission of

broadcasting signals.

17 Directive 2009/140/EC of the European Parliament and of the Council of 25 November 2009, amending Directives 2002/21/EC on a common regulatory framework for electronic communications networks and services, 2002/19/EC on access to, and interconnection of, electronic communications networks and associated facilities, and 2002/20/EC on the authorisation of electronic communications networks and services

At the end of 2012, the Agency adopted the Decision on rel-evant service markets which are subject to verification by the fulfilment of the Three Criteria Test (Official Gazette of Montenegro, 50/12). This Decision defines the following relevant service markets:

(1) Market of the services of broadband Internet access - retail level;

(2) Market of publicly available telephone services on the networks of mobile operators – retail level.

At its meeting held on 5 February 2013 the Agency’s Council adopt-ed the Decision on launching the second round of the analysis of relevant markets (Official Gazette of Montenegro, 09/13). Guidelines of the European Commission for national regulatory authorities on the definition and analysis of the relevant markets envisage that the process of the analysis of relevant markets should be performed periodically to monitor technological and structural changes in the sector. Also, Article 43, paragraph 3 of the Law on Electronic Communications defines that in case of re-designation of certain operators as operators with significant market power, the Agency may, based on the analysis performed in accordance with Article 42, paragraph 1 of the Law, change the scope of the remedies ordered. The Agency’s Decision on launching the second round of the analysis of relevant markets defines the relevant service market in which the second round of market analysis is conducted for the purpose of re-designation of operators with significant market power.

The Agency has implemented the process of the analysis of relevant markets in accordance with the Law on Electronic Communications (Official Gazette of Montenegro, 50/08), which transposed the provisions of the earlier, 2002 European Regulatory Framework. The new Law on Electronic Communications (Official Gazette of Montenegro, 40/13) in Chapter VI - Protection of competition in electronic communications also stipulates the criteria and methods for determining the presence of operators with significant market power in the relevant market, the process of market analysis, identification and definition of relevant mar-kets and imposition of appropriate regulatory measures on the operator with significant market power in the relevant market.

An important novelty in this Chapter of the Law refers to new regulatory obligation of functional separation of activities related to the provision of certain wholesale access services into separate business units (Article 79), which the Agency may impose on a vertically integrated operator if it considers that the application of regulatory remedies has not resulted in effective market competition and that there are significant and persistent barriers to market competition or gaps in the market in relation with the provision of certain wholesale access services in the relevant access market. Also, the new Law defines the obligation to notify the Agency in the event of voluntary separation of vertically integrated operators (Article 80).

2.1.3. Implementation of the second round of analyses of 5 (five) relevant markets

The Agency conducts the analysis of relevant markets and de-termines the significant market power, in accordance with the Law on Electronic Communications, while taking into account recommendations, opinions and guidelines of relevant bodies and organizations of the European Union.

With regard to Article 64, paragraph 4 of the Law which mandates

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that the Agency conducts market analysis procedure at least once every three years, the Agency in 2015 conducted a second round of analysis of five relevant markets, according to the Decision on launching the second round of the analysis of the relevant market services subject to verification by the fulfilment of Three Criteria Test (Official Gazette of Montenegro, 09/15), which had proved in the previously conducted analysis of relevant markets in 2012 the justification of ex ante regulation.

The relevant market service is determined by the said Decision of the Agency are as follows:

(1) Retail market of publicly available local and national long distance calls for legal and natural persons that are provided at a fixed location,

(1) Retail market of publicly available services of interna-tional calls for legal entities and individuals provided at a fixed location,

(1) Wholesale trunk segments of leased lines,(1) Wholesale access and initiation (origination) of calls

from the public mobile telephone networks,(1) Wholesale transmission and emission of radio and

TV signals

2.1.3.1. Chronological sequence of the activities of the Agency during the second round of the analyses of 5 (five) relevant markets conducted in 2015 with an overview of the introduced regulatory measures

At the session of 17 February 2015 the Council adopted the Decision on launching the second round of the analysis of the relevant market services subject to verification by the fulfillment of Three Criteria Test.

Draft documents on the conducted Three Criteria Tests in the relevant markets were the subject of discussion at the meeting of the Council of the Agency of 5 May 2015. The Agency carried out a public consultation process in the period 5 May 2015 – 5 June 2015 on the occasion of the Draft document on the conducted Three Test Criteria in the markets defined by the Decision on launching the second round of the analysis of the relevant market services subject to verification by the fulfillment of the Three Criteria Test (Official Gazette of Montenegro, 09/15).

The Agency, after receiving complaints, comments and suggestions of the operators in the public consultation procedure, compiled An Overview of Answers to the aforementioned complaints, comments and suggestions which were discussed at the meeting of the Council of the Agency on 23 June 2015.

In the case of wholesale markets transmission and emission of radio and TV signals, the Agency proved via the conducted Three Criteria Test that conditions from the Test had not been cumulatively fulfilled and that the market was not susceptible to ex ante regulation.

In the case of other markets (Retail market of publicly availa-ble services of international calls for legal and natural persons that are provided at a fixed location, Retail market of publicly available services of international calls for legal entities and individuals provided at a fixed location, Wholesale market of trunk segments of leased lines and Wholesale market of access and origination of calls on public mobile telephone networks), the Agency proved that at the same time the conditions of the

Three Criteria Test were met which created the prerequisites for conducting the analysis of relevant markets in order to designate the operator with significant market power and prescribe the appropriate regulatory obligations.

After deliberations at the Council session, the Agency launched a public consultation procedure regarding the Draft Analysis and Draft Decision and invited all interested parties to submit their comments, opinions and suggestions no later than 1 September 2015. Upon the receipt of the comments, remarks and sugges-tions of operators, an Overview of Answers to the comments of operators to the Draft Analysis of relevant markets and they were submitted to the Council members for consideration.

The Agency Council at its session of 20 October 2015 adopted the final texts of the Analysis of relevant markets and the Decision on designating the operator with significant market power after obtaining the opinion of the Agency for Protection of Compe-tition, and after taking into account comments and suggestions of the operators in the public consultation procedure.

Market 1: Retail market of publicly available services of local and national long-distance calls for legal and natural persons provided at a fixed location

Upon the completion of the second round of the analysis of the relevant market, based on its Decision of 20 October 2015 the Agency imposed on Crnogorski Telekom a.d. Podgorica the obligations at the wholesale level: the obligation to provide a facility of carrier selection/pre-selection and the obligation of wholesale line rental. It also prescribed the regulatory obligations at the retail level, such as follows:

Obligation of accounting separation, Obligation of the regulation of retail prices prescribing:

prohibition of excessive prices calculation; prohibition of competition constraints by excessive or predatory pricing; the prohibition of undue preferences for a specified end-user and the prohibition of unjustified tying of some services,

Obligation of non-discrimination, and Obligation of transparency.

According to the obligations of transparency and non-discrimi-nation, Crnogorski Telekom (CT) published the Reference Inter-connection Offer and Wholesale Line Rental Offer. CT applied the regulatory requirements, both in terms of conditions and the quality of service and in terms of price, where in the case of a wholesale line rental it applied “retail minus” methodology. Also, CT has applied the adopted Methodology of accounting separation and cost accounting on the retail services in this relevant market (local, long-distance calls and calls to mobile networks) as well as on the wholesale line rental, and according to the requirements of regulatory reporting, CT prepared and published a separate regulatory financial statements by segments/services for 2012, 2013 and 2014.

Regulation of tariffs for local, national long distance calls and calls to mobile networks in accordance with the results of cost accounting is carried out in the following steps:

1) The Agency obliged Crnogorski Telekom to align the existing prices with the results of the cost model for 2012, and to reduce the cost of services of local, national long distance and calls to mobile networks


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in two steps (1 April 2014 and 1 December 2014), while maintaining a monthly subscription for access to the network at the current level. As a result of the prescribed requirements Crnogorski Telekom in 2014 on the basis of the cost model reduced the prices of local calls by 34.21%, national calls services by 50%, and calls to mobile networks by 26.32%.

2) After verification of the 2014 Crnogorski Telekom model results, the Agency’s Decision obliged Crnogorski Telekom to align the prices of relevant services as of 15 December 2015 with the results of the cost model by reducing the prices of services of voice telephony as follows: the services of national long distance calls by 10%, the services of calls to mobile networks by 30% and international calls services to all zones and types of networks by 10%.

Trends in prices of the national calls in € cent/min from the fixed network of Crnogorski Telekom In the period 2013-2015

Based on the Figure it was concluded that in the analyzed three-year period the most pronounced decline in prices was recorded for the service of calls to mobile national networks.

Market 2: Retail market of publicly available services of international calls for legal and natural persosn provided at a fixed location

Upon the completion of the second round of the analysis of the relevant market, based on its Decision of 20 October 2015 the Agency imposed on Crnogorski Telekom a.d. Podgorica, as the operator with significant market power, the obligations at the wholesale level: the obligation to provide a facility of carrier selection/pre-selection and the obligation of wholesale line rental. It also prescribed the regulatory obligations at the retail level, such as follows:

Obligation of accounting separation, Obligation of the regulation of retail prices prescribing: prohibition of excessive prices calculation; prohibition of com-

petition constraints by excessive or predatory pricing; the prohibition of undue preferences for a specified end-user and the prohibition of unjustified tying of some services,

Obligation of non-discrimination, and Obligation of transparency.

Regulation of tariffs for international calls in accordance with the results of cost accounting was carried out in the following steps:

1) The Agency obliged Crnogorski Telekom to align the existing prices with the results of the cost model for 2012, and to reduce the prices of services of international calls in two steps (1 April 2014 and 1 December 2014), which resulted in the reduction of prices of international calls to mobile networks in the region by 7.41%, services of international calls to mobile networks in Europe 26.32%, services of international calls to fixed networks of the rest of the world by 16.67% and services of international calls to mobile networks of the rest of the world by 11.76%.

2) After verification of the 2014 Crnogorski Telekom model results, the Agency’s Decision obliged Crnogorski Telekom to align the prices of relevant services as of 15 December 2015 with the results of the cost model by reducing the prices of services of international calls to all zones and types of networks by 10%

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Trends in prices of international calls to mobile networks in €cent/minFrom fixed networks of Crnogorski Telekom in the period 2013-2015

The Figure illustrates the moderate price drop of services of calls terminating on mobile networks by international zones in the observed three-year period. The mildest decline in prices applies in the case of calls to international zone III (US and Canada), which is normally well below the average of the region and the EU average.

Market 3: Wholesale market of trunk segments of leased lines

Based on its Decision of 20 October 2015 the Agency imposed on Crnogorski Telekom a.d. Podgorica, as the operator with signif-icant market power, the obligations at follows:

Obligation to allow access to network elements and their usage, Obligation to provide equal treatment - non-discrimination, Obligation of transparency - reference interconnection offer, Obligation of accounting separation, and Obligation of price control and cost accounting.

Following the obligation of transparency, Crnogorski Telekom published the reference interconnection offer for terminating and trunk segments of leased lines at the wholesale level in October 2012. Concerning the obligation of price control and cost accounting, Crnogorski Telekom set the prices of leased lines, based on their capacity and length, in accordance with maximum prices of leased lines prescribed by the European Commission Recommendation 2005/268/EC on pricing aspects of wholesale leased lines. Consequently, Crnogorski Telekom fulfilled the imposed obligation of accounting separation and the obligations of price control and cost accounting concerning this relevant market, and following the requirement for regulatory reporting, CT published separate regulatory financial statements by segments/services for 2012, 2013 and 2014.

1) The Agency determined the prices of relevant markets according to the Recommendation of the European Commission on the provision of leased lines, which defines the maximum value of the prices of leased lines.

2) After verification of the results of the cost model for the fixed network in 2013, the Agency prescribed the obligation of Crnogorski Telekom to keep the current prices of trunk segments of leased lines at the wholesale level in accordance with the limit values of the European Commission’s recommendations relating to the traditional digital leased lines and prices of monthly lease of the Ethernet leased lines and to reduce the price of the connection for Ethernet leased lines (transmission capacity of 10 Mb/s, 100 Mb/s, 500 Mb/s and 1000 Mb/s) (one-time fee) to the retail prices of connections of the leased line of the transmission capacity of 100 Mb/s reduced by 20%. Furthermore, after the verification of the results of model of Crnogorski Telekom for 2014 the Agency found acceptable for them to keep the current prices of trunk segments of leased lines at the wholesale level.


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Market 4: Wholesale market of access and call origination on public mobile telephone networks

Based on its Decision of 20 October 2015 the Agency imposed on Crnogorski Telekom a.d. Podgorica, as the operator with signif-icant market power, the obligations at follows:

Obligation to allow access to network elements and their usage, Obligation to provide equal treatment - non-discrimination, Obligation of transparency - reference interconnection offer, Obligation of accounting separation, and Obligation of price control and cost accounting.

Crnogorski Telekom, Telenor and M:tel have innovated the reference offers for the access to mobile networks in line with the obligation of transparency.

Regulation of prices of the service of calls origination from mobile networks was conducted in the following steps:1) After verification of cost models for mobile networks for 2012 based on its Decision the Agency imposed on mobile

operators the obligation to align the prices with the result of a cost model of the operator with the highest unit price for the provision of these services. In other words, all operators were obliged to apply in their Reference Offers for Access the price of mobile call origination in the amount of € 0.022/min.

2) Following the adoption of the regulatory financial statements of the operators for 2013, the Agency imposed on all mobile operators the obligation of align prices of relevant wholesale services with the results of cost model, i.e. to reduce the price of the wholesale service of call origination from mobile networks by 13.64%

3) After verification of the results of the model for mobile networks of Crnogorski Telekom, Telenor and M:tel in 2014, the Agency obliged the mobile operators to reduce the price of wholesale call origination service by 38% starting on 1 January 2016.

Trends in prices of calls origination on mobile networks in the period 2013-2015

Market 5: Wholesale market of transmission and emission of broadcasting signals

The Agency carried out a Three Criteria Test on the Wholesale market of transmission and emission of radio and TV signals as one of the markets defined by the Decision on launching the second round of the analysis of the relevant market services subject to verification by the fulfillment of the Three Criteria Test (Official Gazette of Montenegro, 09/15).Based on verification of the criteria of the Three Criteria Test the Agency concluded that at the wholesale markets of transmission and emission of radio and TV signals all three criteria were not simultaneously fulfilled for the following reasons:

- As for the first criterion relating to the presence of high and durable barriers to entry to the market, the Agency consid-ered the existing wholesale offers of the operators of public electronic communications networks (Telenor and M:tel) which rent their capacities to other operators for the purpose of transmission of the AVM content, which resulted in mitigation or a complete removal of the existence of high barriers to entry to the relevant market. Based on the above, the Agency concluded that the first criterion of the Test was not met.

- With regard to the second criterion, which relates to the assessment of whether the market in the period up to the next analysis tended to an effective competition, the Agency concluded that the use of the capacities of other public opera-tors providing electronic communications services undermined the competitive advantage that the Radio Broadcasting system had in the previous period , which suggests that there is a certain dynamics of market events that could lead to the increased level of efficiency of competition without prior regulatory intervention. Also, the introduction of digital terrestrial radio-broadcasting systems will make this platform in the future development more competitive to other dis-

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tribution platforms of the AVM contents to end users.

Based on the above, the Agency concluded that the second criterion was not met.

As for the Wholesale market of transmission and emission of radio and TV signals, the Agency proved through the conducted Three Criteria Test that Test criteria were not cumulatively met and that the market was not susceptible to ex-ante regulation. Consequently, prerequisites for conducting the analysis of this relevant market were not met and consequently the determination of the regulatory obligations for the operator with significant market power.

2.1.4. Supervision over the implementation of regulatory obligations of operators with significant market power prescribed by the Agency’s decisions, resulting from the conducted second round of analysis of seven relevant markets in 2013

In 2014 and 2015 the Agency conducted supervision over the implementation of regulatory obligations for the operators with significant market power in the following relevant markets:

Market 1: Market of access to public telephone network at a fixed location for natural and legal persons - retail level

The Agency imposed on Crnogorski Telekom appropriate regula-tory obligations at the wholesale and retail levels by its Decision of 19 November 2013 on determining operator with significant market power. The following regulatory obligations were imposed on the wholesale level:

Obligation to provide the facility of carrier selection/pre-selection, and

Obligation of subscriber line rental at the wholesale level.

The imposed regulatory obligations at the retail level are as follows:

Obligation of accounting separation,

Obligation of price regulation of retail service with the following requirements:- Prohibition of excessive price limitations,- Prohibition of competition constraint by setting

excessive or predatory prices,- Prohibition of granting undue preferences to a

specified end-user,- Obligation of non-discrimination,- Obligation of transparency,- Prohibition of unjustified tying of services.

Crnogorski Telekom applied the adopted Methodology of ac-counting separation and cost accounting on the retail services of this relevant market (services of PSTN and ISDN network access) and in accordance with the requirements of regulatory reporting prepared and published separate regulatory financial statements by segments/services for 2012, 2013 and 2014.

In 2014 and 2015 the Agency imposed on Crnogorski Telekom the obligation to adjust the existing retail prices of the prices of services of voice telephony with the results of the cost model, while maintaining at the current level a monthly subscription fee for access to the network.

Market 2: Market of call origination on public telephone network provided at a fixed location - wholesale level

The Agency imposed on Crnogorski Telekom, as the SMP operator in this relevant market, the following regulatory remedies under its Decision of 19 November 2013:

Obligation to allow the access to network elements and their usage,

Obligation of equal treatment - non-discrimination, Obligation of transparency - reference interconnection

offer, Obligation of accounting separation, Obligation of price control and cost accounting.

Upon verification of the results of the cost model for the fixed network of Crnogorski Telekom for 2013 the Agency obliged Crnogorski Telekom within the regulatory obligation of supervi-sion of prices and cost accountign the obligation of aligning the wholesale price of call origination with the results of cost models.

Trends in prices of services of local and single transit call origination in the period 2013-2015


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Crnogorski Telekom complied with the request of the Agency and aligned the prices of call origination on the fixed network with the results of the 2013 cost model, which it published on its website in the updated Reference Interconnection Offer. By application of the prescribed prices, the cost of services in this relevant market decreased on average by 5.41%.

Market 3: Market of call termination on individual public telephone network provided at a fixed location - wholesale level

The Agency imposed on Crnogorski Telekom, as the operator with significant market power in this relevant market, the following regulatory remedies by its Decision of 19 November 2013:

Obligation to allow access to network elements and their usage, Obligation of equal treatment - non-discrimination, Obligation of transparency - reference interconnection offer, Obligation of accounting separation, Obligation of price control and cost accounting.

The Agency imposed on M:tel, as the operator with significant market power in this relevant market, the following regulatory remedies by its Decision of 19 November 2013:

Obligation to allow access to network elements and their usage, Obligation of equal treatment - non-discrimination, Obligation of transparency - reference interconnection offer, Obligation of price control and cost accounting.

Following the adoption of the revised regulatory financial statements, the Agency obliged Crnogorski Telecom to align the prices of services in the market of call termination in individual public networks in the Reference Interconnection Offer with the results of the cost model for the fixed network.

Trends in the prices of services of local and single transit call termination in the period 2013-2015

Crnogorski Telekom complied with the request of the Agency and aligned the prices of call termination on the fixed network with results of the 2013 cost model, which was published on its website in the updated Reference Interconnection Offer. By application of the prescribed prices, the cost of services in this relevant market decreased on average by 5.41%.

M:tel as an operator with significant market power on the market of call termination on its network was obliged to implement the price of single transit call termination resulting from the cost model of Crnogorski Telekom. M:tel acted in accordance with the request of the Agency and published in its Reference Offer the wholesale prices of interconnection with M:tel’s fixed network.

Market 4: Market of access to network infrastructure (including shared or fully-unbundled access at a specific location) - wholesale level



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After the first round of the analysis of this relevant market, the Agency applied “Retail minus” methodology for determining the level of monthly subscription for the service of fully unbundled access to the local loop. the price of the full access to the local loop was determined by applying the “minus” of 24% to the price of monthly subscription at the level of 3.88€ and by applying the benchmarking the “minus” was determined in relation to the full access to the local loop from which the price of 1.16€/month was obtained for the assigned access to the local loop.

After the second round of the analysis of relevant markets, the Agency imposed on Crnogorski Telekom by the Decision of 19 November 2013 within the regulatory obligation of price and cost accounting supervision the obligation of aligning the prices of these relevant services with reference results of the cost model for 2012. Since the strict application of the results of the cost model in the case of prices of the service of full access implied the increase of prices by 34% as well as the services of shared access by 70% with unchanged level of prices of monthly fee would be highly discouraging for alternative operators, Crnogorski Telekom kept the existing prices of these relevant services in the Reference Offer for the access to unbundled local loop determined by the application of Retail minus in relation to the level of monthly fee for the access to network.

Market 5: Market of broadband access - wholesale level



The Agency, in accordance with the obligations of price control and cost accounting obliged Crnogorski Telekom to align the wholesale price of broadband Internet access with the results of the cost model.

1) Upon the adoption of the revised regulatory financial statements for 2013, the Agency obliged Crnogorski Telekom to align the prices of wholesale services of broadband Internet access market with the results of the cost model for the fixed network as of 1 December 2014, resulting in a reduction in prices by an average of 26.86%.

2) After verification of the results of the cost model for the fixed network of Crnogorski Telekom for 2014, the Agency im-posed the obligation of price alignment of relevant services with the results of the cost model so that as of 15 December 2015 to reduce the prices of bitstream access service in all ADSL packages by 30%.

Trends in prices of bitstream service for ADSL packages for natural persons in the period 2013-2015


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Trends in prices in bitstream services for ADSL packages for business users in the period 2013-2015

Market 6: Terminating or trunk segments of leased lines, regardless of technology used to provide the leased or dedicated capacity - wholesale level



Crnogorski Telekom established the prices of leased lines in line with the obligation of price and cost accounting supervision based on the capacity and length of leased lines in accordance with the prescribed maximum level of prices for leased lines from the European Commission Recommendation 2005/268/EC on the pricing aspects of the wholesale leased lines. Furthermore, Crnogorski Telekom conducted the prescribed obligation to separate accounting records and the obligation of price control and cost accounting also in the case of this relevant market and in line with regulatory reporting requirements accordingly prepared and published separate regulatory financial statements by segments/services for 2012, 2013 and 2014.

1) The Agency took into consideration in determining the prices in this relevant market by the European Commission Rec-ommendation on the provision of leased lines, which defines the maximum values of prices of leased lines.

2) Upon verification of the results of the cost model for the fixed network for 2013, the Agency prescribed the obligation of Crnogorski Telekom to maintain the current prices of services of terminating segments of leased lines at the whole-sale level in accordance with the limit values from the Recommendation of the European Commission which refer to traditional digital leased lines and the prices of a monthly rental of Ethernet leased lines, and to reduce the prices of the connection for Ethernet leased lines (transmission capacity of 10 Mb/s, 100 Mb/s, 500 Mb/s and 1000 Mb/s) (one-time fee) to the level of retail prices of connections for leased lines of the transmission capacity of 100 Mb/s, reduced by 20%. Furthermore, after verification of the results of the model of Crnogorski Telekom for 2014, the Agency evaluated eligible to retain the current wholesale prices of services of terminating segments of leased lines.

Market 7: T Market of call termination on individual mobile networks - wholesale level

The Agency imposed on Crnogorski Telekom, Telenor and Mtel, as operators with significant market power in this relevant market, the following regulatory remedies by its Decision of 19 November 2013:


In accordance with the obligations of price and cost accounting supervision, the Agency prescribed to Crnogorski Telekom, Telenor and M:tel in, as the operators with significant market power in this relevant market, an obligation to align wholesale call termination prices on mobile networks with the results of the cost model.

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1) After adopting the Decision on accepting the implemented activities of Crnogorski Telekom, Telenor and M:tel within the Project of accounting separation and cost accounting for mobile networks in 2013, the Agency obliged all mobile operators to align the prices relevant wholesale services with the results of the cost model, i.e., to reduce the price of call termination in individual mobile networks by 13.64%.

2) After verification of the results of cost models for mobile networks for 2014, the Agency obliged mobile operators to reduce the prices of wholesale services of call termination by 38% as of 1 January 2016.

Trends in prices of services of call termination on mobile networks in the period 2013-2015

2.1.5. Supervision over the implementation of regulatory obligations of operators with significant market power in the retail market of broadband access to Internet with fulfilled criteria of the Three Criteria Test in 2013 with an overview of the introduced regulatory obligations

The Council of the Agency for Electronic Communications and Postal Services, at its session of 30 January 2014, after obtaining the opinion of the Competition Authority No. 02-247 / 2-13 from 20 January 2014 adopted the Decision on designating the op-erator with SMP in the market of broadband Internet access at the retail level and adopted the final text of the Analysis of the broadband Internet access market at the retail level.

The Agency prescribed to Crnogorski Telekom as the operator with significant market power in this market the following regu-latory obligations:

Accounting separation The obligation of regulating the prices of retail services with the following requirements:

- The prohibition of charging excessive prices, - Prohibition of restricting competition by setting too high or too low prices, - Prohibition of giving undue advantage to an end user, - Prohibition of undue tying of certain services.

Regulation of prices of broadband Internet access at the retail level was carried out in the following steps:

1) After adopting the Decision on accepting the implemented activities of Crnogorski Telekom within the Project of accounting separation and cost accounting for the fixed network in 2013, the Agency obliged Crnogorski Telekom to align the existing prices of Internet access services with the results of the cost model, i.e. to reduce prices by an aver-age of 35.78% until 1 December 2014.

2) After verification of the results of the model of Crnogorski Telekom for 2014, the Agency obliged Crnogorski Telekom by its Decision to reduce the prices of Internet access services via ADSL by 15% with all ADSL packages aimed for resi-dential and business users as of 15 December 2015.


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Trends in prices of subscription for ADSL packages for residential users in €/month in the period 2013-2015

Trends in prices of subscriptions for ADSL packages for business users in €/month in the period 2013-2015

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2.2. Project of accounting separation and cost accounting

2.2.1. Legal basis for the implementation of the obligation of accounting separation and cost accounting

Accounting separation

Within the performance of activities in public electronic communications, Article 48 of the Law on Electronic Communications defines the obligation of operators with significant market power relating to the obligation of separate accounting.

If a legal entity whose main business activity is not the activity of electronic communications intends to lease its own electronic communications network and/or electronic communications infrastructure and associated facilities or to use it for the provision

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of publicly available electronic communications services, this legal entity shall establish a separate legal entity for carrying out the activities of public electronic communications or shall keep separate accounting by business activities, in the manner in which revenues and expenses in relation to the lease of electronic communications network and/or electronic communications infrastructure or to provision of publicly available electronic communications services are displayed separately from other business activities.

Keeping separate accounting records

According to Article 74 of the Law on Electronic Communications under the Decision on identification of operator with significant market power, the Agency may request the operator to keep separate accounting records on business activities related to providing services of access and/or interconnection, with the purpose to control the implementation of measures stipulated by the Law and prevent unfair cross-subsidy. In particular, the Agency may request from a vertically integrated operator to ensure transparency of its wholesale prices and internal price transfers relating to the transactions between business units, markets, market segments and services of vertically integrated operator. Also, the Agency shall define the manner of keeping and separation of accounting records.

At the request of the Agency, the operator shall submit accounting records, including the information on revenues generated from other persons.

In order to promote competition and open market, the Agency shall publish on its website the data it has collected from the operator, in accordance with the Law, provided that the confi-dential information is protected.

Price control and cost accounting

According to Article 76 of the Law on Electronic Communica-tions, the Agency may under the Decision on identification of operator with significant market power request taking measures in relation to cost recovery and price control of certain services that are provided for access and/or interconnection and cost accounting purposes. The Agency may request these measures if, based on market analysis, it deems that an operator with significant market power, due to lack of efficient competition or for the purpose of suppressing it, might keep either excessive prices or too small difference among wholesale and retail prices to the detriment of the end-users. The Agency shall take into account the risks, investments and ensuring of an acceptable rate of return on investments of the operator.

The operator that was ordered to take measures of cost orien-tation and cost accounting shall provide evidence that prices are calculated on the basis of expenses with an acceptable rate of return on investment.

Implementation control

Under Article 77 of the Law on Electronic Communications, in controlling the implementation of the above-mentioned meas-ures, the Agency may apply a different methodology of cost accounting from the one applied by the operator. The Agency may request from the operator, by way of Decision, to explain and correct its prices if necessary, where the burden of proof

relating to the justifiability of prices shall be upon the operator. The Agency may prescribe a cost covering mechanism or meth-odology of pricing and/or use the comparison with prices on comparable markets or markets with developed competition, bearing in mind the specifics of the local market, which shall be appropriate to the objectives of improving efficiency and sus-tainable competition and developing and improving the benefits for consumers. Under the Decision, the Agency may order the operator to keep a specific cost accounting system, including categorization and classification of costs and rules applied to the distribution of costs. Compliance of the cost accounting with the Decision shall be verified by an independent auditor, and the auditor’s Compliance Statement shall be published by the Agency annually, on its website.

2.2.2. The purpose of the introduction of accounting separation and cost accounting

The purpose of introducing accounting separation and control over prices and cost accounting is to provide equal and transparent criteria which the SMP operator in relevant market is to apply during cost allocation to services provided by that operator, as well as during attribution of costs, income, property, liabilities and capital to individual activities and services.

Accounting separation enables systemic sharing of costs, revenues and employed capital among business units of the regulated en-tity, markets, segments and the services of vertically-integrated operator. Accounting separation and cost accounting also ensure that each financial statement includes only costs, revenues and employed capital referring to regulatory entities, segments, markets and services.

The methodology of cost accounting allows for implementation of accounting separation and verification of cost-orientation in order to prevent cross-subsidies, excessive prices or inefficient behaviour of SMP operators in the relevant market. The model of accounting separation, which is applied by an operator with the SMP in the relevant market, shall fully meet regulatory ob-ligations by providing financial information in order to show full compliance with regulatory obligations.

The obligation of price control and cost accounting is introduced both for wholesale and retail markets, in order to ensure the implementation of the appropriate cost model, i.e. to ensure a reasonable rate of return on employed capital of the SMP op-erators in the relevant market, taking into account the included rate of investment risk, which means that capital cost is to be calculated as weighted average cost of capital (WACC).

The Agency, along with the selected consultant KPMG Croatia, defined the methodology of cost accounting based on the method of Fully Distributed Costs (FDC), switching later to the methodology of Long Run Incremental Costs (LRIC), i.e. using historical costs in the first phase of implementation, and switching later to the calculations based on current costs.


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2.2.3. Chronology of the Agency’s activities on the implementation of the Project of accounting separation and cost accounting in 2015

In 2015, the activities on implementation of the Project of account-ing separation and cost accounting continued, which ensures that financial statements include costs, revenues and employed capital related to regulatory entities, segments, markets or services. The adopted Methodology of cost accounting enables the implemen-tation of the obligation of cost accounting, as well as verification of cost-orientation of prices in order to prevent cross-subsidies, excessive prices or inefficient behaviour of SMP operators in the relevant market. Furthermore, accounting separation and cost accounting are intended to monitor the implementation of the obligations of transparency, in terms of monitoring the profitability of individual market segments, non-discrimination and transfer services between business segments.

By introducing the obligation of accounting separation, the operator with significant market power in the relevant market is also ordered the content and form of collecting accounting data for regulatory reporting. These models serve as a support in taking regulatory decisions and provide reliable information for the implementation of price control.

In the Methodology for accounting separation and cost account-ing for fixed and mobile networks the time-line of reporting has been changed on the basis of the current cost accounting (CCA) and long-run incremental costs (LRIC).

SMP operator shall prepare and submit to the Agency the drafts of the following documents:

- Regulatory accounting document (RD);- Documentation on methodology of allocation (DMA);- Plan for implementation of accounting separation and

cost accounting based on CCA cost base and LRIC accounting methodology (Plan CCA/LRIC).

Also, the SMP operator will implement the assigned project and the Agency will issue an approval on the DR, DMA and Plan CCA/LRIC if it is satisfied with the implementation of the project.

Through the acceptance of the activities of Crnogorski Telekom on the Project of accounting separation and cost accounting and verification of the results of the cost model, a reliable basis for the process of price regulation in the fixed network was provided. As a result of implementation of these activities and the fact that Crnogorski Telekom improved its business efficiency and quality of the network, and the fact that it will bring considerable benefits to end users since the decrease of the price of phone calls while keeping the monthly subscription price will lead to lower monthly bills for the same volume of telephone services of the fixed network of Crnogorski Telekom.

Crnogorski Telekom a.d. Podgorica, Telenor d.o.o. Podgorica and M:tel d.o.o. Podgorica, according to the Methodology of account-ing separation and cost accounting adopted by the Decision of the Agency No.0902-2327 / 1 of 30 May 2011 and Methodology of accounting separation for mobile phone networks adopted by the Decision of the Agency No. 0102- 5797/1 of 17 October 2012, implemented the prescribed system of cost accounting and preparation of the regulatory financial statements.

In January a conference call was made in the presence of the

members of the Working Group for Cost Accounting, KPMG rep-resentatives and CT representatives. There were some questions and answers for the purpose of reconciliation of the documen-tation regarding the valuation of assets and deficiencies of the submitted CVR’s. For the sake of supervision and continuing implementation of the Project of cost and separate accounting CT was paid a visit and conclusions were drawn which resulted in consideration of individual HCCs and CVRs.

Crnogorski Telekom is obliged to respond to the submitted comments of the Agency, which include specific details and is obliged to make appropriate changes in the revaluation and the definition of CVRs for certain HCCs.

In February M:tel was delivered a letter with comments on the DAR assets valuation and updated models.

Responses to comments related to the revaluation of assets and CVRs were submitted, as well as the explanation that the CT began working on correcting the documentation based on the suggestions from the meeting i.e. the visit of the Working Group members for monitoring the implementation of the Project of cost and separate accounting.

Telenor was delivered an urging request on 20 February 2015 to respond to the comments of the Agency, including to update the model, and representatives of Telenor acted in line with that and submitted the documentation i.e. the comments to CCA LRIC with answers, along with the supporting documents (relevant parts of contracts and invoices).

Representatives of the Agency paid a visit to Crnogorski Telekom regarding the implementation of the Project of cost and separate accounting and Crnogorski Telekom is obliged deliver calcula-tions, contracts, price lists, and excel tables with prices of work.

In the premises of the Agency a conference call was held in the presence of representatives of the Working Group for cost accounting, representatives of the operators (Crnogorski Tele-kom, Telenor and M: tel) and the KPMG consultants, in order to organize the meeting to define the deadlines and activities in the Project and consideration of outstanding issues related to the implementation of the Project.

The conclusions of the conference call with Crnogorski Telecom, M:tel and Telenor were the following:

1) Crnogorski Telecom, M:tel and Telenor are required to submit by mid-March to the Agency the innovated versions of their responses to the comments of the Agency and the innovated documentation under the CCA/LRIC methodology, which among other things includes the following:

• recapitulation of assets as of 31 December 2014 with the indicated valuation methods, and data on GBV, NBV, the date of activation, the amortization rates, GRC and NRC amounts.

• evaluation models with attached scan documents of the examples of price lists, orders, and contracts relevant for the evaluations under DAR or MEA methodology, and

• models of CVRs with reported calculations, descrip-tions of the method of calculating the minimum network and review of the sample based on which the ratio of the volume and costs shown in the form of curves would be calculated.

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2) Crnogorski Telekom, M:tel and Telenor are required to submit a draft LRIC model with data for 2014 and draft regulatory financial statements in order to meet the deadline under the Methodology for the submission of final regulatory financial statements.

In late February Telenor submitted a document which contains general comments relating to all CVRs and the projection of traffic, and for some CVRs an explanation was given stating that further information was expected.

In March Telenor submitted to the Agency contracts with a part of assets as well as excel table for the assessment of the value of assets in the contract documents.

M:tel d.o.o. addressed the Agency with an official letter asking for prolonging the deadlines for the submission of the valuation models for CCA/LRIC, and the Methodology and the adopted Implementation Plan allowed the deadline to be extended for 15 days and M:tel could submit the documentation partially until the expiration of the agreed deadline.

In April, the Agency prepared tender documents for the procure-ment of consultancy services for the execution of the Project of accounting separation and cost accounting, which includes supervision over the implementation of the methodology of CCA/LRIC, the calculation of weighted cost of capital for 2014, the control of cost models, as well as an overview of the revised regulatory financial statements (RFI) and the Report of the external auditor.

The consulting services will be provided for the fixed and mobile networks in:

- the relevant retail and wholesale markets in which Crnogorski Telekom a.d. was established to be the operator with significant market power;

- the relevant markets of calls completion (termination) and starting (origination) in their own mobile networks, for which Telenor d.o.o. Podgorica, Crnogorski Telekom a.d. Podgorica and M:tel Podgorica d.o.o. are identified as operators with significant market power;

In May bids opening regarding the tender for the procurement of consultancy services for the execution of the Project of accounting separation and cost accounting was scheduled and perfomed.

In accordance with the set deadlines regarding cost accounting the operators submitted the following:

• Telenor submitted to the Agency LRIC model for 2014.• CT submitted to the Agency CCA LRIC documentation.

Also, CT delivered revaluation and CVRs, draft CCA 2014, and draft regulatory financial statements of CT under the CCA LRIC methodology and the CCA LRIC models.

• M:tel submitted to the Agency LRIC model for 2014, as well as the Contract on providing the audit services.

The Working Group organized and held conference calls with fixed terms for the following operators: Crnogorski Telekom, Telenor and M:tel and noted for all three operators what was necessary to supplement the CCA models, determination of the unit cost, projections for the future, i.e. the change of the cost and volume, and the establishment of WACC. In late May, repre-sentatives of the KPMG consultants submitted to the Agency the document on Calculation of weighted cost of capital for 2014 as a consultative document which was the subject of public debate.

In June, the Agency launched a public consultation process on

the proposal of the calculation of weighted cost of capital for 2014 in accordance with the adopted Methodology of calcu-lation of weighted cost of capital so that all interested parties could submit their comments, opinions and suggestions by the end of June 2015.

Meetings were held with the operators on the implementation of the Project of cost accounting and accounting separation for mobile networks of the CCA/LRIC model and WACC discussions.

General comments to the models refer to the agreement between the Agency and the operators for the submission of amendments to the model, answers, and additional documents:

- Revaluation of assets - to show and explain the cal-culation of value, and explain the sample and indicate the effect of the new value of assets on the unit price of regulated services, i.e. the recommendation of the Agency is to start from the most important values to the less significant values.

- Amend all CVRs with the calculated values, description and explanation of the measurement samples, mark on the projections of CVRs points of capacity i.e. utilization of network.

- Submit explanations of changes between the models for the years 2013 and 2014 in terms of routing factors, factors of allocation and conversion factors and explain the impact of changes in the unit cost of regulated services.

- To explain the inconsistency of the model in terms of discrepancies in final value of the 2013 model and the initial values of the 2014 model (fixed assets).

- It is necessary to submit a complete projection of the volume of regulated services for the following 5 years.

- Incorporate the new WACC value in the models.- When submitting the data it is necessary to ensure

completeness i.e. the model, the accompanying doc-umentation and extra calculations including CVRs and revaluation of assets.

On the session of the Council the Agency adopted a Decision on the value of weighted cost of capital (WACC) for 2014 of 8.84% and contains the value of weighted cost of capital before taxation at the level of the calculation of costs for the provision of regulated retail and wholesale services.

The operators with significant market power under the obligation to take measures of cost orientation are required, pursuant to paragraph 4 of Article 76 of the Law on Electronic Communi-cations, to prove that the prices are calculated on the basis of cost with an acceptable rate of return on investment.

The methodology of calculating WACC is based on the Method-ology of accounting separation and cost accounting, which was adopted by the Decision of the Agency No. 0902-2327/1 of 30 May 2013 for the fixed networks, and the Agency Decision No. 0102-579/1 of 17 October 2012 for mobile telephone networks.

The average weighted cost of capital (WACC) is a measure of return on investment that the investor can expect, that is, a reasonable rate of return on invested capital, as it relates to the calculation of the financial return on capital engaged by the shareholders of telecommunications operators. Therefore, determining the cost of capital is a key element in the process of price regulation of electronic communications services in the relevant markets.


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The Agency calculates WACC according to the Methodology for the calculation of weighted cost of capital adopted in June 2012. The calculation of WACC is unique for all regulated services, and applies to all operators with significant market power in fixed and mobile phone networks, and it is implemented based on the adopted Methodology on the basis of the following values: the gearing ratio, tax rate profit, beta factor, market risk premiums, risk-free return, cost of equity, debt risk premium and the cost of debt.

In July Crnogorski Telekom, Telenor and M:tel submitted final models and CVRs with corrections in accordance with the re-quirements of the selected auditor.

The Working Group required CT to provide documentation regarding the defining of the routing matrix., the topology of the network after the full IMS implementation, the number of ADSL users so that the required data were mutually aligned.

The Agency was submitted a projection of traffic by M:tel and Telenor.

Telenor submitted to the Agency LRIC model corrected in terms of the comments of the Agency and the comments of the audi-tors Ernst & Young hired by Telenor. Also, regulatory financially reports were submitted.

M:tel submitted to the Agency the final version of the cost model.

At the end of July conference calls were scheduled with the operators, and the Agency sent a letter to Crnogorski Telekom, Telenor and M:tel on the status of the project of the Implemen-tation of cost accounting and accounting separation for mobile networks of the CCA/LRIC model.

At the end of July the Agency submitted a letter to Crnogor-ski Telekom, Telenor and M:tel and reminded them about the expired deadline for the submission of the agreed changes to the model.

Crnogorski Telekom submitted revised versions of the CT model for the fixed and mobile networks for 2014 as a letter with an explanation about the conducted changes. Also, additional documentation regarding the commentary for cable ducts was submitted. An additional sample shows a significantly higher cost per user which was not taken into account in the calculation.

In accordance with the agreement of the meeting held on July 31, Telenor submitted LRIC model and regulatory financial reports, approved by the auditors Ernst and Young.

In late August, the Agency, in cooperation with the KPMG con-sultants organized workshops related to the implementation of the CVRs in the models of operators and they were held in the premises of the Agency in the presence of the Working Group which works on the Project of accounting separation and cost accounting, and representatives of the operators.

In September, the Agency, in cooperation with the KPMG consultants and the Working Group organized a workshop for Crnogorski Telekom, Telenor and M:tel on the implementation of CVRs in the models of operators and the minutes of the workshop were made.

Crnogorski Telekom did not announce changes in accordance with the Methodology until the end of January and sought the approval from the Agency for the application of a different approach when calculating the routing factors. In this regard,

the Agency imposed on Crnogorski Telelom the obligation to submit a version of the model with routing factors that were implemented in the model for the fixed network in 2013, and to submit before the adoption of the model the auditor’s opinion about it.

The Agency submitted a letter to Crnogorski Telekom about the meeting with the aim of final alignments within the Project of accounting separation and cost accounting requiring the preparation of the following information:

- Detailed information about the CT systems from which data is provided about the number of users and the total volume of traffic in individual packages it provides to its clients.

- CT was to submit data on the number of ADSL users and users of all active optics packages/per package as well as the information about the average amount of transmitted data conducted by the users per package (per month).

In October Crnogorski Telekom submitted to the Agency the final model which contains all the agreed changes, the 2013 routing factor was applied in a manner required by the Agency and the information was delivered on the cost of outgoing international traffic by zones, including CVRs.

At the session of the Council the Decision on accepting the implemented activities of Crnogorski Telekom, Telenor and M:tel within the Project of accounting separation and cost accounting under the CCA/LRIC methodology for 2014 as follows:

1. The document on the allocation method (DMA) and regulatory accounting document (RD) for 2014

2. The cost allocation model

3. The 2014 Regulatory Financial Statements (RFI).

The Agency was delivered the following documentation by Crnogorski Telekom, Telenor and M:tel: RD and DMA for the fixed and mobile networks, and final CCA/LRIC models.

In November, the Agency submitted a Decision to Crnogorski Telekom on the reduction of prices based on the verification of the cost model under the Project of accounting separation and cost accounting on the basis of the current CCA accounting as a cost base and long-term incremental LRIC costs as an accounting methodology for the fixed 2014 network.

Since the regulatory financial statements for 2014 are the result of the applied cost accounting and they showed that the prices were not cost-oriented, the Agency decided that Crnogorski Telekom would reduce the prices of retail services, as well as the wholesale prices of the Internet access.

At the beginning of December there was a meeting of the Working Group for Cost Accounting with the representatives of Crnogorski Telekom. They talked about their future work and cooperation regarding the Project. Crnogorski Telekom will report a change in the model to the Agency latest by 31 January 2016, and will deliver the harmonized routing factors within 15 days.

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2.2.4. Activities of the Agency on the implementation of the Project of accounting separation and cost accounting in fixed telephony

In 2015 the activities on Project of accounting separation and cost accounting in fixed telephony continued according to the time-schedule defined in the Methodology of accounting sep-aration and cost accounting.

The revised regulatory reports for all relevant markets, market segments and services for 2011, 2012 and 2013 are based on the historical cost accounting (HCA) and the methodology fully allocated costs (FAC) and the calculation of unit cost of services is done by using historical cost accounting as a cost base and FAC as accounting methodology.

In 2014, SMP operator started to develop the cost model and to implement accounting separation and cost accounting based on CCA cost base and LRIC accounting methodology.

2.2.5. Activities of the Agency on the implementation of the Project of accounting separation and cost accounting in mobile telephony

In 2015 the Agency continued the activities in cooperation with the selected consultant, KPMG Croatia on the Project of accounting separation and cost accounting in the mobile telephony accord-ing to the dynamics defined by the Methodology of accounting

separation and cost accounting. Crnogorski Telekom, Telenor and M:tel were assigned with a task of developing and deliver-ing documents (RD and DMA) in accordance with the adopted Methodology of accounting separation and cost accounting for mobile phone networks.

It should be noted that the SMP operator has started devel-opment of a cost model and implementation of accounting separation and cost accounting based on CCA cost base and LRIC accounting methodology.

The Agency has proposed a gradual transition from the cost base based on historical costs (HCA) to cost base based on current costs (CCA), in the following way:

- Revised regulatory reports for all relevant markets, market segments and services for 2011, 2012 and 2013 are based on the historical cost accounting (HCA) and the methodology of fully allocated costs (FAC);

- Revised regulatory reports for all relevant markets, market segments and services in 2014 and for all years thereafter, are based on current costs (CCA) as a cost base and fully allocated costs (FAC) as an accounting methodology;

- Unit cost of retail services is calculated by using his-torical cost accounting and current cost accounting (HCA/CCA) as a cost base and fully allocated costs (FAC) as an accounting methodology;

- Unit cost of wholesale services is calculated by apply-ing the current cost accounting (CCA) as a cost base and long-term incremental costs as the accounting methodology (LRIC).

3. DEVELOPMENT AND QUALITY OF UNIVERSAL SERVICE IN ELECTRONIC COMMUNICATIONS SECTOR

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3.1. Regulatory framework for the provision of Universal Service

3.1.1. Regulatory framework of the European Union

Universal Service in electronic communications is defined in the following EU acquis:

- DIRECTIVE 2002/22/EC of European Parliament and Council of 7 March 2002, which refers to basic services and user rights in relation with electronic communica-tion networks and services (Universal Service Directive);

- DIRECTIVE 2002/58/EC of the European Parliament and Council of 12 July 2002 referring to private data processing and protection of privacy in electronic com-munications sector (Directive on privacy in electronic communications);

- DECREE (EC) No 2006/2004 of the European Parliament and Council of 27 October 2004 on cooperation among national regulatory authorities in the implementation of the user protection law (Rulebook on user protection, cooperation of NRAs);

- DIRECTIVE 2009/136/EC of the European Parliament and Council of 25 November 2009, amending the Directive 2002/22/EC, which refers to basic services and user rights in relation with electronic communi-cation networks and services, Directive 2002/58/EC which refers to personal data processing and privacy protection in electronic communications and Decree (EC) No 2006/2004 about cooperation among national regulatory authorities in the implementation of the user protection law.

3.1.2. Regulatory framework in Montenegro

Chapter VII (Articles 81 - 95) of the Law on Electronic Commu-nications (Official Gazette of Montenegro, 40/13) regulates in more detail the provision of the Universal Service in Montenegro. Article 81 of the Law on Electronic Communications defines Universal Service as a set of basic electronic communications services of specified quality which are available to all-end users in the territory of Montenegro at affordable prices, regardless of their geographical location.

In addition to the Law on Electronic Communications, the provision of Universal Service in Montenegro is regulated by secondary legislation adopted based on the Law on Electronic Communications by the Government of Montenegro, the Ministry for Information Society and Telecommunications, the Ministry of Labour and Social Welfare and the Agency for Electronic

Communications and Postal Services as follows:

- Decree on the minimum se of services included in Uni-versal Service (Official Gazette of Montenegro, 46/14)

- Rulebook on the quality of Universal Service (Official Gazette of Montenegro, 23/14);

- Rulebook on the types of benefits and special measures for access to public electronic communications services for persons with reduced mobility and persons with disabilities (Official Gazette of Montenegro, 43/14);

- Rulebook on determining the rate of data transmission for functional internet access via the Universal Service (Official Gazette of Montenegro, 46/14);

- Rulebook on establishing a list of categories of users eligible for special advantages in the use of Universal Service (Official Gazette of Montenegro, 52/14);

- Rulebook on the criteria for assessing the justification of requests for access to public electronic communi-cations network via Universal Service (Official Gazette of Montenegro, 56/13);

- Rulebook on the methodology of calculating the net cost of providing services within Universal Service (Official Gazette of Montenegro, 12/14);

- Rulebook on the assessment of affordability of ser-vices and special packages of Universal Service for disadvantaged persons, persons with reduced mobility and persons with disabilities (Official Gazette of Mon-tenegro, 33/14) and

- Rulebook on the implementation of public competition and conditions for designation of the Universal Service Operator (Official Gazette of Montenegro, 45/14)

Public consultations were conducted for all regulations adopted by the Agency in accordance with the Law on Electronic Com-munications, and reports were submitted to the subjects who participated in the public consultation process.

The legislation in Montenegro that regulates the provision of the Universal Service is aligned with the EU acquis in the field of Universal Service and Privacy in Electronic Communications: Directive 2002/22/EC, Directive 2002/58/EC and Directive 2009/136/EC.

3.2. Activities of the implementation of Universal Service

According to the Decree on the minimum set of services included in Universal Service and the Law on Electronic Communications, Universal Service in Montenegro includes:

- the fulfilment of reasonable users’ requests for access to public electronic communications network and


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publicly available electronic communications services at a fixed location, which enables voice communication and data rates that allow functional Internet access;

- provision of universal telephone directory and universal enquiry service to provide information about the phone numbers of subscribers;

- special measures and benefits for persons with limited mobility, as well as for persons with disabilities, includ-ing access to emergency services, telephone enquiry service and telephone directory service, allowing equal opportunities for access to publicly available telephone services to the ones available to other end-users, as well as the appropriate choice of operator available to the majority of end-users.

Universal service/universal access to electronic communications is provided through three key elements:

- Geographic availability (Availability) – the service is available within the observed geographic area;

- Infrastructure accessibility (Accessibility) – the service is accessible to people with different abilities (mental and physical abilities), and

- Affordability – price of the service should be such that most users can afford it.

Geographic availability of services is the main feature of the Universal Service and it means the provision of basic set of services within the whole territory for which the Universal Service is planned. The principles of infrastructure accessibility and affordability in this case mean that users with disabilities would have necessary equipment available (specialized tools, devices ...), which is consistent with their needs/abilities, as well as the existence of special tariffs for disabled people, but also for people with low income.

The Agency for Electronic Communications and Postal Services

determined operators of Universal Service for the period of five years by the Decisions issued in 2011.

3.2.1. Provision of the service of Universal Telephone Directory and Universal Enquiry Service

By the Decision of the Agency’s Council of 25 January 2011, MCA Maribor, the Republic of Slovenia, was selected for the Universal Service Operator for the service of the Universal Telephone Directory and Universal Directory Enquiry Service. In order to perform the assigned tasks efficiently, the company MCA d.o.o. Maribor established a legal entity in Montenegro, Teleinfo.me d.o.o., based in Podgorica, which will be the main contractor for the period of 5 years. By the Agency’s Decision of 30 June 2011, the company Teleinfo.me d.o.o. was entered into the Registry of operators and it was authorized to use the numbering envisaged by the Numbering Plan for universal directory enquire service (1180). Teleinfo.me d.o.o. has started to provide the service of universal directory enquiry service on 5 December 2011.

Number 1180 is available from all public electronic communi-cations networks in Montenegro. By dialling 1180 it is possible to obtain information about fixed and mobile (post-paid and pre-paid) telephone numbers of all subscribers who have not demanded a ban on the publication of this data, by the subscriber’s number of by the subscriber. The price of 1180 call is the same for end-users of all networks in Montenegro and it was 20.468 €cents per call (VAT included).

In 2015 there were 131,743 calls to number 1180 for obtaining the information about the telephone number of a desired user or about a subscriber on the basis of the telephone number. The number of calls to 1180 during 2014 is shown by months in the following Figure.


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In 2014 the total number of calls to 1180 was 119,189 and in 2015 10.53% of more calls was made than in 2014.

Teleinfo.me submitted to the Agency a Request for reimbursement of the Universal Service net cost for business year 2014 in the total amount of €399,771. As the Law on Electronic Communications (Article 93, paragraph 4) prescribes that the Agency shall check and approve the accounting statements and data from paragraph 2 of this Article and that it may engage an independent auditor for verification of accounting statements, the Agency’s Council in its meeting of 2 July 2015 adopted a Conclusion on the en-gagement of MV Konsalt d.o.o. to audit the annual account of Teleinfo.me for 2014.

Acting in accordance with the Law on Electronic Communications, the Law on Free Access to Information and the Law on General Administrative Procedure, the Agency published on its website http://www.ekip.me/uservis/nt2014.php the Request for reimbursement of the net cost for business year 2014 of the operator of the Universal Enquiry Service and Universal Tele-phone Directory - Teleinfo.me and the Report on audit of net cost reimbursement of the Universal Service Operator -Teleinfo.me - for business year 2014, prepared by MV Konsalt d.o.o.

Upon the completion of the public debate, the Agency con-cluded that there were grounds to grant reimbursement of net cost to Teleinfo.me in the amount of € 244,507.00 and issued an appropriate decision for reimbursement of net costs of providing the universal service. This Decision was sent to all operators that participate in the compensation of net costs in proportion with their market share, then to the operator of the Universal Enquiry Service and Universal Telephone Directory - Teleinfo.me and it was also published on the website of the Agency, as stipulated by the Law on Electronic Communications and the Law on Free Access to Information. All operators that are obliged to pay compensation effected payments according to the mentioned Decision.

Teleinfo.me released the first edition of the Universal Directory in electronic format CD/DVD in mid-May in 10,000 copies. The price of Universal Directory in electronic format CD/DVD is €7.14 and it was defined by the MCA Offer (€6.00 + VAT), while it is free of charge for persons with disabilities. The Universal Directory contains all the numbers of all subscribers of the fixed and mobile (post-paid and pre-paid) networks, except for those subscribers who demanded a ban on the entry and publication of their data. It should be noted that is this first edition of a comprehensive directory in electronic format CD/DVD in Montenegro.

3.2.2. Provision of the service of access to electronic communications network, telephone calls and Internet access

Universal Service is a safety mechanism which ensures that the set of minimum electronic communications services is available to all end users, in order to prevent their isolation from the society. This, in addition to socially vulnerable persons and persons with disabilities primarily refers to the people who live in rural areas and isolated areas where electronic communications network is poorly developed. Due to the low density of the population expansion of electronic communications networks to such areas involves the investments which are not economically viable to the operator.

After the adoption of the necessary legislation, the Agency for Electronic Communications and Postal Services under the public tender in January 2011 chose Telenor d.o.o. Podgorica for the Universal Service Operator for a period of five years for the whole territory of Montenegro for the provision of the following services:

- Fulfilling every reasonable user demand for the access to public electronic communications network and publicly available electronic communications services at a fixed location

- Providing voice and functional access to the Internet and- Benefits for persons with disabilities and socially vul-

nerable persons.

Telenor was obliged as the Universal Service Operator (USO) to provide a connection at a fixed location at a justifiable request of any citizen of Montenegro, regardless of the geographic location of the building in which the citizen resides, in accordance with the Rulebook on the criteria for evaluation of justification of the user requests for access to public electronic communications network via the Universal Service.

In 2015 Telenor provided the Universal Service services to the users in the territory of the following municipalities: Cetinje, Danilovgrad, Nikšić, Žabljak and Podgorica. In addition to the radio base stations “Trešnjevo” and “Gostilje”, which were built for the purpose of providing universal service in 2015, the radio base stations “Nudo” was also put into operation. The Agency, the Municipality of Nikšić and Telenor in the course of 2015 implemented activities to create conditions for the construc-tion of the radio base station “Nudo”, through which universal service would be provided in the area of the local community “Nudo”. After obtaining the necessary permits and construction, Telenor put into operation a new 3G radio base station on 21 October 2015 which will allow access through Universal Service to electronic communications network to the people of the local community “Nudo”. With this service, Telenor, as a Univer-sal Service Operator, made available to the residents from the administrative unit “Nudo” electronic communications services (telephone calls and Internet access) of the prescribed quality.

In 2015, Telenor and the Agency established contacts with representatives of the local communities Medun (Municipality of Podgorica), Barice and Bliškovo (municipality of Bijelo Polje) regarding the implementation of the requests for the provision of universal service. The Agency based on user requests for the connection via Universal Service allowed Telenor to build radio base stations in these local communities. Telenor defined technical solutions for these sites but they did not build them due to the problems with local self-governments with regard to the issue of property relations and proximity to the expiry of the term of office as an operator of Universal Service, which lasted until 25 January 2016. It remains that the newly elected Universal Service Operator Crnogorski Telekom a.d. Podgorica will build radio base stations in these local communities.

For the purpose of better implementation of Universal Service the Agency addressed local self-governments several times to determine the areas/locations within their municipalities for they knew that at that moment there were no possibilities of providing connection to the telecommunications network, and to see how much the citizens are interested in that. In those letters it was emphasized that in the case of need, at the invitation of the local self-government the representatives of the Agency and Telenor would have presentations of Universal Service.

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The prices of the universal service at which Telenor provided its services were €20.34 for the connection for standard users, while the connection for people with disabilities was €10.00, and for people with low income €20.00. People with disabilities were exempt from monthly subscription, while it is paid by standard users in the amount of €6.05, and by people with low incomes in the amount of €3.20. The Agency, according to the Law on Electronic Communications in order to reduce the prices of providing Universal Service provided by Telenor, issued a Rule-book on the method of assessment of affordability of prices of services and special packages of Universal Service for socially vulnerable persons, persons with reduced mobility and persons with disabilities, based on which Telenor established the offer on 4 November 2014 for these categories which foresees free connection at a fixed location with no monthly subscription and free 2GB Internet traffic. Other prices of calls services and data transmission are in the price list published by Telenor on its website. Conditions of the new Telenor offer for Universal Service are generally comparable to or better than the condi-tions of the most commonly used packages of public electronic communications services with all operators.

In order to make services available to persons with disabilities the Agency prepared professional grounds based on which the state authority responsible for telecommunications adopted the Rulebook on the types of benefits and special measures for access to public electronic communications services for persons with reduced mobility and persons with disabilities. This Rulebook stipulates that the benefits of providing access to electronic communications services for persons with disabilities, include the provision of physical and economic opportunity for access to publicly available electronic communications services which is equalized with the possibilities of other end users. It also stip-ulates that operators will make it available to the persons with disabilities the purchase or rental of appropriate termination equipment under favourable conditions, and Universal Service Operators will make it free of charge.

Telenor addressed to the Agency with a Request of 20 April 2015 for compensation of net cost for business year 2014, claiming a net cost in the amount of €116,766.76, which contained the submitted invoices of suppliers and service providers for all items of the claim, which related to the cost of building of the radio base station in the local community Gostilje Municipal-ity of Danilovgrad and current maintenance of the radio base station in the local community Trešnjevo Municipality Cetinje. The Agency made a Draft Decision for the compensation of net cost for the business year 2014 and delivered it to the Universal Service Operator and all operators of electronic communications whose share in the total annual income in the field of electronic communications is greater than 2% to give comments, opinions and suggestions latest by 19 May 2015. In accordance with Article 142 of the Law on General Administrative Procedure, the Agency held a public debate to discuss Draft Decision on 28 May 2015 about which the Record was made which was signed by representatives of all operators, whose comments on the Draft Decision were an integral part of the Record. All comments of the participants relating to the Draft Decision are stated in the Record.

Considering the request by Telenor to be compensated for the net cost for business year 2014, the Agency found that there were grounds to recognize net costs of Telenor for providing Universal Service in the amount of €116,766.76. All operators

obliged to pay the compensation of net cost made the payment in compliance with the Decision.

Information on Universal Service in Montenegro can be found on the Agency’s website www.ekip.me/uservis.

3.3. Quality of Universal Service in electronic communications sector

According to the Law on Electronic Communications selected operators are obliged to submit to the Agency on quarterly basis information about measured parameters of the quality of the Universal Service for the service they provide, and based on the decision on the designation of the Universal Service Operator they shall submit an annual report on the values of indicators of the quality of Universal services they provide, in accordance with the Rulebook on the quality of Universal Service. In this regard, and according to Article 3 of the Rulebook on the quality of services within Universal Service, the parameters of quality of US services are prescribed. Universal Service operators performed the measurement of parameters of quality of services within the Universal Service provided in accordance with the definitions and methods specified in technical instructions METI ETSI EG202 057-1, METI ETSI EG 201769-1 and METI ETSI EG 202057-4.

The Operator of Universal Telephone Directory and Universal Enquiry Service - Teleinfo.me d.o.o. submitted to the Agency the following information for 2014:

Average response time of the operator’s contact person (telephonist) was 7.41 seconds;

131,743 calls were made to Universal Enquiry Service number 1180, out of which:- to 90.90% calls, the response time of Universal

Enquiry Service was shorter than 20 seconds, - to 9.10% calls, the response time of Universal Enquiry

Service followed after 20 seconds, - 6.00% calls were interrupted after 20-second time.

The Rulebook on the quality of Universal Service defines that the average response time of Universal Enquiry Service shall not exceed 15 seconds in a year, and the percentage of calls to which Universal Enquiry Service responds within 20 seconds shall not be smaller than 80% in a year. Based on the above data it can be concluded that the Universal Enquiry Service and the selected operator Teleinfo.me d.o.o. met all the criteria defined in the Rulebook on the quality of Universal Service for the service they provide.

Telenor d.o.o. Podgorica has submitted to the Agency the follow-ing information on the parameters of quality of services within the Universal Service that this operator provides: the time of setting the service, the frequency of breakdowns in access line, the failure repair time, frequency of unsuccessful calls, call setup time, the frequency of complaints against the bill for services provided under the Universal Service, data transmission speed (exit “upload” speed and input “download” speed). All values of the measured parameters were within the values indicated in the Rulebook on the quality of services form the Universal Service. Some of them are as follows:

Frequency of unsuccessful calls related to:- national calls amounted to 1.03%,- international calls amounted to 2.23%,


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Call set-up time:- average time for all national calls amounted to

5.46 sec, Frequency of complaints against the bill for services

of the Universal Service:- % in one year is 0%,

Minimum data transmission speeds for Internet access:- Upload speed means maximum upload speed

achieved in 95% cases, expressed in kbit/s and it amounted to 1480kbit/s, and

- Download speed means maximum download speed achieved in 95% cases, expressed in kbit/s, and it amounted to 1602kbit/s.

Users of the part of Universal Service provided by Telenor ex-pressed satisfaction with the quality of Universal Service and telephone connection they have. They expressed the opinion that this system was very useful and actually the only one pos-sible for people living in remote and inaccessible areas where communication was difficult in every sense.

For the needs of the Agency for Electronic Communications and Postal Services, the Agency for conducting poll, “Damar” Podgorica has carried out a survey of the degree of customer satisfaction with electronic communication services in Monte-negro. The study was conducted in December 2014. The third part of the questionnaire referred to citizens’ awareness of number 1180, and Universal Enquiry Service, and to the degree of satisfaction with the service. According to the results about the service which allows the citizens to obtain information about the telephone number in fixed and mobile telephony (number 1180) 41.4% had heard of this service which was almost 10% more than in 2013. Of those who had heard of number 1180, 82.3% of respondents said they knew which information might be obtained by dialling the above number which was 10% more than in 2013 when that percentage was 72.1%. More than a half of the respondents who had heard of number 1180, requested information through this service and they were satisfied with the service provided in 94.2% of cases, which represents a slight decrease in the level of satisfaction compared to 2013 when the percentage of satisfied respondents was 97.1%. When it comes to individual services, respondents were most satisfied with the quality of response to calls (96.8%) and politeness in addressing customers (96.3%).

3.4 Selection of new operators of Universal Service in the sector of electronic communications

The Agency for Electronic Communications and Postal Services in accordance with Article 11, paragraph 1, item 16, Article 86 of the Law on Electronic Communications and the Rulebook on the implementation of the public tender and conditions for determining the Universal Service Operator conducted a public tender procedure for determining the Universal Service Operator in the field of electronic communications in the period 2 June 2015 - 27 July 2015. The public tender for the selection of the Universal Service Operator was launched for:

The Universal Service Operators to provide the fol-lowing services:

- Meeting the legitimate demands of users to ac-cess public electronic communications network and publicly available electronic communications services at a fixed location, which allows voice communication and data transmission speed which enables functional Internet access;

- Specific measures and benefits for persons with reduced mobility and persons with disabilities, including access to emergency services, service which provides information on the subscriber’s number and subscribers directory which provide equal opportunities for access to publicly available telephone services available to other end-users, as well as the appropriate choice of operators available to the majority of end users.

The Universal Service Operator to provide the fol-lowing services:- The provision of Universal Directory (hereinafter:

Universal Directory) and a universal service to provide information about the phone number of subscribers (hereinafter: Universal Enquiry Service); Specific measures and benefits for persons with reduced mobility, and for persons with disabilities, including access to emergency services, services which provide information on the subscriber’s number and subscriber’s directories which provide equal opportunities for access to publicly available telephone services available to other end-users, as well as the appropriate choice of operators available to the majority of end users.

After reviewing, assessing and evaluating the submitted bids the Agency in its Decision of 10 September 2015 designated Crnogorski Telekom a.d. Podgorica to be the Universal Service Operator in the entire territory of Montenegro, for the provision of access to electronic communications network, provision of services of phone calls and Internet access.

Crnogorski Telekom will provide Universal Service services based on the public tender bid under more favorable conditions compared to the currently valid. The price of connection at a fixed location for Universal Service will be in the amount of €8.04 (divided into twelve monthly installments) instead of the current €20.34. Monthly subscription will be in the amount of €3.99 instead of the current €6.05. That price will included 120 minutes for calls to fixed networks in Montenegro, 10 minutes to mobile networks in Montenegro and 15 minutes of calls to foreign countries. The price per minute for calls to fixed networks in Montenegro will be 1.5 cents, instead of the current 6 cents in the more expensive tariff or 3 cents at a cheaper rate. The price per minute for calls to the mobile network of Crnogorski Telekom will be 1.5 cents instead of the current 6 cents, and to other mobile networks in Montenegro 8.6 cents instead of the current 23 cents. The price for 1 MB of transmitted data will be 0.5 cents, instead of the current 1.5 cents.

Crnogorski Telekom will provide the Universal Service services to socially vulnerable persons and persons with disabilities under more favorable than the above. Persons with disabilities and socially vulnerable persons do not pay connection and monthly subscription for Universal Service. In addition to these benefits people with disabilities and socially vulnerable persons get free 120 minutes of calls to fixed networks in Montenegro, 10 min-utes to mobile networks in Montenegro, 15 minutes of calls to

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foreign countries and 2 GB of transmitted data. For the services exceeding free charges, the discount price of telephone calls and the price of transferred data for persons with disabilities will be 50% and for the socially vulnerable 33% compared to the rates of Universal Service for commercial users.

On 25 January 2016 a five-year period ends for which the Council of the Agency determined in its Decision No. 0402-4119/25 of 25 January 2011 determined Telenor d.o.o. from Podgorica to be the Universal Service Operator for the provision of the service of Universal Service. From that date, in order to maintain con-tinuity of the service of Universal Service, Crnogorski Telekom a.d. Podgorica should start providing the service.

After reviewing, assessing and evaluating the submitted bids the Agency in its Decision of 10 September 2015 designated Telecommunications Company M:tel d.o.o. Podgorica to be the Universal Service Operator for the provision of Universal Directory and Universal Enquiry services.

The M:tel bid foresees the following:

− the price of printed Universal Directory will be €2.00 without VAT, that is, €2.38 including VAT which will be

free of charge for the socially vulnerable and persons with disabilities;

− the price of electronic CD/DVD version of Universal Directory will be €0.10 without VAT, that is, €0,119 with VAT included, which will be free of charge for the socially vulnerable and persons with disabilities;

− the price of calls to Universal Enquiry will be €0.08 without VAT, that is, €0.095 with VAT included.

On 25 January 2016 the Decision of the Agency No. 0402-4119/26 of 25 January 2011 ceases to be valid by which the Council of the Agency determined Ltd. MCA Maribor, Slovenia to be the Universal Service Operator to provision of the services of Uni-versal Directory and Universal Enquiry Service, which was the main contractor in the period of 5 years. In accordance with the above M:tel will, in order to maintain continuity of service of Universal Service start providing services Universal Directory and Universal Enquiry Service as of 25 January 2016.

The prices of Universal Service offered in the second public tender for determining the Universal Service Operator are sig-nificantly lower than the prices at which Universal Service was provided before that.

4. ASSIGNED LIMITED RESOURCES

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4.1. Assigned radio-frequencies and assessment of their rational use

Radio frequency spectrum is limited natural resource which represents the property of general interest over which Monte-negro has ownership and exercises its authorities. Competent state authorities, in compliance with international regulations which are applied in Montenegro, provide efficient and unham-pered use of radio-frequency spectrum and ensure the rights of Montenegro in orbital positions. The Agency shall manage, supervise and control the use of radio-frequency spectrum in compliance with the Law on Electronic Communications the Radio Frequency Allocation Plan and radio-frequency assignment plans, and international agreements.

The Radio Frequency Spectrum Allocation Plan (Official Gazette of Montenegro, 28/14), which was adopted by the Government of Montenegro on 8 May 2014 shall define radio-frequency bands for individual radio communication services, in compliance with the ITU RR.

In addition to the RF Allocation Plan, the adoption of correspond-ing RF allotment plans is very important for the RFS management. Radio-frequency allotment plans define the division of a band into radio-frequency channels, more detailed conditions, man-ners of use and the manner of RF assignment to one or more radio-communication services, in compliance with the Radio Frequency Spectrum Allocation Plan.

In accordance with the Law on Electronic Communications the public consultations procedures were initiated in December 2015 and majority of them were completed as they precede the procedure of the final adoption of plans of allotment by the Agency and therefore the following allotment plans were published at the beginning of 2016:

1. The Allotment Plan for radio-frequencies in the band 10,700-11,700 GHz for fixed connections (Official Ga-zette of Montenegro, 05/16);

2. The Allotment Plan for radio-frequencies in the band 17,700-19,700 GHz for fixed connections (Official Gazette of Montenegro, 05/16);

3. The Allotment Plan for radio-frequencies in the band 22,000-23,600 GHz for fixed connections (Official Gazette of Montenegro, 7/16);

4. The Allotment Plan for radio-frequencies in the band 24,500-26,500 GHz for fixed connections (Official Gazette of Montenegro,7/16);

5. The Allotment Plan for radio-frequencies in the band 5925-6425 MHz for fixed connections (Official Gazette of Montenegro, 9/16);

6. The Allotment Plan for radio-frequencies in the band 6425-7125 MHz for fixed connections (Official Gazette of Montenegro, 9/16);

7. Decision on amending the Allotment Plan for ra-dio-broadcasting frequencies in Montenegro (Official Gazette of Montenegro, 9/16);

8. The Allotment Plan for radio-frequencies in the band 37,000-39,500 GHz for fixed connections (Official Ga-zette of Montenegro, 15/16) and

9. The Allotment Plan for radio-frequencies in the band 14,500-15,350 GHz for fixed connections (Official Gazette of Montenegro, 15/16).

In 2015, a total of 863 approvals were issued for the use of radio-frequencies and Decisions on establishing technical and operational conditions for the use of the approved radio-fre-quencies. In the same period 139 approvals for the use of ra-dio-frequencies were revoked.

At the end of 2015, LTE service was available in 21 municipalities of Montenegro. Telenor’s LTE network is the first commercial 4G network in the Region and so far LTE services were available in the municipalities of Podgorica, Cetinje, Bar, Nikšić, Budva, Her-ceg Novi, Tivat, Berane, Danilovgrad, Kotor, Pljevlja, Bijelo Polje, Rožaje and Ulcinj. Crnogorski Telekom had made LTE service available in all municipalities except for Petnjica and Gusinje.

4.1.1. Assigned radio-frequencies

Natural and legal persons can use radio-frequencies on the basis of the approvals for the use of radio- frequencies, which are issued by the Agency. The exception refers to the frequencies used in compliance with the Rulebook on radio-frequencies and conditions under which radio-frequencies can be used without the approval (Official Gazette of Montenegro, 47/2014 and 50/2014).

In 2014, 863 approvals for the use of radio-frequencies were issued as well as Decisions on establishing technical and operational requirements for the use of the approved radio-frequencies, while 139 approvals were revoked. The following table provides an overview of the number of issued and revoked approvals by radio-communication services.


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An overview of the number of issued and revoked approvals by radio-communication services

Radio-communication serviceNumber of

issued approvals Number of

revoked approvals

FIXED Radio-relay links 213 99

MOBILEFunctional systems 8 1

Technical conditions for GSM/DCS1800/UMTS/LTE radio base stations

439 14

MARITIME

Terrestrial radio stations for support to sailing vessels and radio stations on ships

90 10

Technical conditions for the stations for support of vessels and radio stations of vessels

22 0

AERONAUTICALRadio stations on aircraft 3 4

Technical conditions for radio stations on aircrafts 7 0

RADIO-AMATEUR Amateur radio stations 52 0

SATELLITE Fixed satellite, VSAT or SNG stations 2 0

BROADCASTINGTV and FM p transmitters and links for delivery of modulation signal

27 11

TOTAL 863 139

4.1.2. Analysis of occupancy of the most significant radio-frequency bands

4.1.2.1. Fixed and mobile services

In Montenegro, radio frequency resources were assigned on an exclusive basis in its entire territory in the following radio-fre-quency bands:

- 380-400 MHz for implementation of TETRA systems;- 880-915/925-960 MHz for E-GSM/GSM mobile public

electronic communication networks18;- 1710-1785/1805–1880 MHz for DCS1800 mobile public

electronic communication networks19;- 1900-1920/1920-1980/2110-2170 MHz for IMT-2000/

UMTS mobile public electronic communications networks;

- 3410 - 3600 MHz for FWA/BWA systems;- 11.7-12.5 GHz for distribution and emission of signals via

wireless distribution systems up to end-users.

The right to use radio - frequencies in the band 410-430MHz for the implementation of CDMA PAMR system ceased to be available to the operator BBMI d.o.o. in May 2015, after which this band became fully available for new assignments.

Radio-frequencies in the 380-400 MHz band for the imple-mentation of TETRA systems were assigned to business organ-ization Wireless Montenegro d.o.o., which was established by the Government of Montenegro and Austrian company GmbH EOSS Austria as a private-public partnership. The purpose of the implementation of the system was the provision of com-munication channels for the needs of public administration (police, army, security, fire department and other emergency services). The authorisation for radio frequencies was issued in May 2012 for the period of five years. The authorisation holder

18 Refarming is allowed in the 880-960 MHz band (IMT-2000/UMTS imple-mented).

19 Refarming is allowed in the 1710-1880 MHz band (implementiran IMT-2000/LTE)

is exempted from paying the annual regulatory fees for the use of radio frequencies and the annual fee for administration of the radio-frequency spectrum, in accordance with Article 125 of the Law on Electronic Communications. Two coupled radio-frequency blocks 2x2MHz wide were assigned. Each block consists of 80 two-way radio channels 2x25 kHz wide. The implementation of a duplex transmission is based on the separation of direct (downlink) and reverse (uplink) channels in the frequency (FDD) domain. So far the total of 33 TETRA radio base stations have been installed in two phases and the service is available in all municipalities of Montenegro.

Radio-frequencies in the band 880-915/925-960 MHz, 1710-1785/1805-1880 MHz and 1900-1920/1920-1980/2110-2170 MHz intended for mobile communication networks were as-signed to mobile operators Telenor d.o.o., Crnogorski Telekom a.d. and M:tel d.o.o. In the 880-915/925-960 MHz band Telenor was authorized to use the block 2x13.2 MHz, Crnogorski Telekom the block 2x11.4 MHz, and M:tel the block 2x9.8 MHz. Following the principle of technological neutrality re-farming was allowed in this band, so that all three operators, in addition to GSM, im-plemented UMTS technology in order to expand 3G coverage in rural areas. In the 1710-1785/1805-1880 MHz band Telenor has the block 2x29.6 MHz wide, Crnogorski Telekom the block 2x24.8 MHz wide, and M:tel the block 2x20 MHz wide. Following the principle of technological neutrality re-farming was allowed in this band, which Telenor and Crnogorski Telekom used for implementation of LTE technology. Telenor’s LTE network is the first commercial 4G network in the region and up to now LTE services have been available in the municipalities of Podgorica, Cetinje, Bar, Nikšić, Budva, Herceg Novi, Tivat, Berane, Danilovgrad, Kotor, Pljevlja, Bijelo Polje, Rožaje and Ulcinj. Crnogorski Telekom provided LTE service in all municipalities except for Petnjica and Gusinje. M:tel uses its block 2x20 MHz wide in the 1710-1785/1805-1880 MHz band only for DCS1800. All three mobile operators use the 1900-1920/1920-1980/2110-2170 MHz band for 3G (IMT-2000/UMTS). Telenor has a 2x25 +5 MHz wide block, the block of Crnogorski Telekom is 2x20 +5 MHz wide, and M:tel’s block is 2x15 +5 MHz wide.


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As for the bands of 3410-3600 MHz, the approval holders in 2015 were the operators M:tel and WiMAX Montenegro which provide FWA/BWA services for commercial purposes.

In the 11.7 - 12.5 GHz band, which was assigned for the transmission and broadcasting of signals to end-users via wireless distribution systems (MMDS - Multichannel Multipoint Distribution Service) only a part of the 11.9 to 12.3 GHz band was assigned to the business organization Telemach a.d. Podgorica (ex Broadband Montene-gro a.d. Podgorica), of which it has only used 320 MHz, which is sufficient for the number of TV programs they can currently offer. In 2015 Telemach company shut down the MMDS signal in several municipalities in the north of Montenegro.

Telenor and M: tel d.o.o. companies connect their base stations to the control-switching centres located in Podgorica through the system of two-way fixed connections implemented in the form of rings in the following bands:

- 6 GHz_L (In accordance with the Allotment Plan of radio-frequencies in the bands 5925-6425 MHz for fixed connections, Official Gazette of Montenegro, 09/16)

- 6 GHz_U (In accordance with the Allotment Plan of radio-frequencies in the bands 6425-7125 MHz for fixed connections, Official Gazette of Montenegro, 09/16)

- 8 GHz (7725-8275 MHz in accordance with the Recom-mendation ECC/REC/(02)06)

- 11 GHz (10.7 – 11.7 GHz in accordance with the Recom-mendation ERC/REC/12-06).

The Radio Broadcasting Centre d.o.o. implemented its transmis-sion system by the combination of two bands:

- 6 GHz_U (6425 - 7125 MHz in accordance with the Recommendation ERC/REC/14-02)

- 7 GHz_U (7425 – 7725 MHz in accordance with the Recommendation ITU-R F, 385-10 and ECC/REC/(02)06).

The common route of these transmission systems is the most important radio corridor in Montenegro Lovćen – Bjelasica (86.5 km as the crow flies).

Crnogorski Telekom has mainly based its transmission system on optical fibres.

Linking of base stations up to the most convenient connection point of the mentioned systems is implemented by two-way fixed connections in the following bands:

- 13 GHz (In accordance with the Allotment Plan of ra-dio-frequencies in the bands 12.75 – 13.25 GHz for fixed connections, Official Gazette of Montenegro, 70/15)

- 15 GHz (In accordance with the Allotment Plan of ra-dio-frequencies in the bands 14.5 - 15,35 GHz for fixed connections, Official Gazette of Montenegro,15/16)

- 18 GHz (In accordance with the Allotment Plan of ra-dio-frequencies in the bands 17.7 – 19.7 GHz for fixed connections, Official Gazette of Montenegro,05/16)

- 23 GHz (In accordance with the Allotment Plan of ra-dio-frequencies in the bands 21.2 – 23.6 GHz for fixed connections, Official Gazette of Montenegro,07/16)

- 26 GHz (In accordance with the Allotment Plan of ra-dio-frequencies in the bands 24.5 – 26.5 GHz for fixed connections, Official Gazette of Montenegro,07/16),

- 38 GHz (In accordance with the Allotment Plan of ra-dio-frequencies in the bands 37.000-39.500 GHz for fixed connections, Official Gazette of Montenegro,15/16).

The following Figure shows the shares of radio-frequency chan-nels per radio-frequency bands assigned mainly to the operators of public electronic communications, which, according to their needs, use these bands to implement fixed connections of small, medium and large capacities.

An overview of the allocated radio-frequency channels per radio-frequency bands

In the observed period the trend in using radio-frequency resources in higher bands continued, especially in the 22.000 - 23,600 GHz (23 GHz) bands, because operators have sufficiently developed its backbone transmission systems, while the space for fur-ther upgrading of transmission network opens up during the implementation of the connection links to the transmission system, which generally involves shorter distances. Therefore, for their successful implementation, particularly in terms of efficient use of radio-frequency spectrum, the most suitable way is to use the frequencies from so-called “higher” bands. In 2015 99 approvals

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were revoked on the request of the approval holders since they established connection to the end wanted locations by applying another technology (by developing their own network of optical fibres) or by using fixed connections on other routes in order to avoid using infrastructure of other operators.

In 2015 also continues the trend of the increase if the capacity of transmission systems as a support for the provision of services with LTE base stations. The following Figure shows a ratio of radio channels and the connection capacity assigned in 2015 mainly to the operators of public electronic communications.

An overview of the assigned radio-frequency channels in relation to the connection capacity assigned in 2015

Professional (Private) mobile radio (PMR) is a part of terrestrial mobile service based on the use of simplex, semi-duplex and if possible duplex operation at terminal level for the purpose of providing communication to a closed user group. PMR is usually used by business organizations, i.e. their functional systems of radio links for carrying out their operations. In Montenegro, PMR systems operate in VHF (146-174 MHz) and UHF (440-470 MHz) radio frequency bands, the percentages of their use being 62% and 38% respectively, which shows the percentage increase in use of the UHF band in 2014 compared to 2013. The Figure below shows the ratio between the uses of these two frequency bands.

Ratio of distribution of VHF and UHF radio-frequency bands in which PMR systems operate in Montenegro

In both these bands there are sufficient resources available for potential future users. Radio-frequencies are assigned in compliance with ECC Recommendation T/R 25-08.

4.1.2.2. Maritime and aeronautical services

In 2015, the Agency issued in accordance with the Law on Electronic Communications, the Plan of Allocation of radio-frequency spectrum and the Decision on the plan of allotment of radio-frequencies in the VHF band (156.00 to 162.05 MHz) intended for maritime mobile radio service (Official Gazette of Montenegro, 67/10) regarding the use of radio-frequencies on vessels as fol-lows: 81 approval to use radio-frequencies on vessels, 1 approval to use radio-frequencies in the band 156.00-162.05 MHz for the implementation of functional network intended for port operations and support to the movement of vessels and 10 decisions


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on cessation of validity of the approval for the use of radio-fre-quencies on vessels. Also, in 2015 8 transfers of rights for the use of radio-frequencies were approved.

In accordance with the Rulebook on the manner, conditions and procedure for determining call sign and international maritime radio-communication identification number for radio equipment in maritime mobile radio communications (Official Gazette of Montenegro, 24/14), in 2015 the Agency adopted 22 decisions on determining call sign and/or MMSI number.

With the entry into force of the Law on Electronic Communi-cations in 2013, the period of validity of the approvals for use of radio-frequencies on vessels was changed, so that such ap-proval is not issued with a validity period until the cessation of the use of the vessel, but for a period of 5 years. Technical and operational conditions of the use of radio-frequencies that are an integral part of the approval are issued with a validity period of one year, from which arose the obligation of users to extend meeting the requirements annually. For these reasons 22 Decisions were issued in 2015 which determine technical and operational conditions for the use of radio-frequencies on vessels for the following one-year period.

In 2015 4 approvals were revoked for the use of radio-frequencies on aircrafts, and 3 approvals were issued. Also, with the entry into force of the Law on Electronic Communications, the same changes referring to the period of validity of the approval for the use of radio-frequencies on vessels apply to the period of validity of the approval for the use of radio-frequencies on aircrafts. For this reason, 7 Decisions were issued which determine technical and operational conditions for the use of radio-frequencies on aircraft for the following one-year period.

4.1.2.3. Radio amateur service

Radio-frequencies for radio amateur service are assigned in compliance with the Law on Electronic Communications, RF Spectrum Allocation Plan and, the Rulebook on radio amateur communications (Official Gazette of Montenegro, 23/14) and the Allotment Plan of radio-frequencies allocated to radio am-ateur service (Official Gazette of Montenegro, 25/12). In 2015 56 approvals were issued.

4.1.2.4. Satellite service

In 2015 one Approval was issued for the use of radio-frequencies for the needs of VSAT terminal station which is used to connect the user with the seat of the company abroad, while for the needs of delivery of multimedia signal of broadcasting of sport event via SNG station one approval was issued for the use of radio-frequencies.

4.1.2.5. Broadcasting service

In 2015 the Agency issued to electronic media approvals for the use of radio-frequencies based on their submitted requests or ex officio in accordance with provisions of the Law on Electronic Communications, the Law on Electronic Media and adequate allotment plans of broadcasting frequencies.

Acting upon the requests, the Agency issued Approvals for the use of radio-frequencies to business companies:

- “Neboelectronic“ d.o.o. Herceg Novi, (100.4 MHz at the

location Unač, 101.3 MHz at the location Bablja Greda, 93.2 MHz at the location Tvrdaš and 99.9 MHz at the location Durmitor-Štuoc),

- “M-Corona“ d.o.o. Bar (88.7 MHz at the location Velji grad),

- “M.D. Company“ d.o.o. Podgorica (103.8 MHz at the location Spas),

- “TDI Radio“ d.o.o. Podgorica (106.7 MHz at the location Tvrdaš, 99.0 MHz at the location Možura and 104.6 MHz at the location Bablja Greda),

- “Local Public Broadcaster Radio Bar“ d.o.o. Bar (105.6 MHz at the location Možura),

- “Ast“ d.o.o. Podgorica (87.9 MHz at the location Obrov), - NGO “Talas-Bihor“ Petnjica (90.7 MHz at the location

Petnjica), - “The Administration of the Islamic Community in Mon-

tenegro” (88.6 MHz at the location Bandžovo Brdo, 88.4 MHz at the location Gusinje, 98.2 MHz at the location Jejevica, 104.0 MHz at the location Možura, 96.6 MHz at the location Obrov, 106.0 MHz at the location Petnjica, 90.9 MHz at the location Kofiljača, 92.5 MHz at the location Sjenica, as well as the use of radio-frequencies in the band 1525-1535 MHz for the implementation of one-way fixed connection for the delivery pf modular signal from the studio to the location Sjenica),

- “Association for Equality and Tolerance” Podgorica (89.0 MHz at the location Katuničko Brdo, 100.3 MHz at the location Kurilo, 91.3 MHz at the location Tović and 99.8 MHz at the location Jejevica).

The Agency approved to the NGO “Stereotip“, with the seat in Podgorica the use of the 93.3 MHz radio-frequency for ex-amination, measurement and testing of radio-communication equipment for a limited area of coverage for the period of 90 days acting upon the request for the issuance of the temporary approval at the location Podgorica, in the Capital of Podgorica.

The Agency by acting ex officio issued a Decision which termi-nates validity of the approvals for the use of radio-frequencies in the band 87.5-108 MHz for the reasons of cancelling further broadcasting to the following business companies:

- “Radio Elmag“ d.o.o. Podgorica for the use of radio-fre-quencies 107.2 MHz at the location Kurilo Bijelo Polje, 98.5 at the location Katuničko brdo and 105.5 MHz at the location Tvrdaš,

- “M-Corona“ d.o.o. Bar for the use of radio-frequencies 103.8 MHz at the location Spas and 105.6 MHz at the location Možura, and radio-frequencies in the band 1452-1492 MHz for the implementation of the fixed connection Volujica - Spas,

- “Topolica“ d.o.o. Bar for the use of radio-frequencies 97.2 MHz at the location Obrov,

- “M.D. Company“ d.o.o. Podgorica for the use of radio-fre-quencies 105.0 MHz at the location Kurilo Danilovgrad,

- “Jumedia Mont“ d.o.o. Podgorica for the use of radio-fre-quency 104.0 MHz at the location Kurilo Danilovgrad and

- “Radio Televizija Panorama“ Pljevlja for the use of ra-dio-frequency 89.2 MHz at the location Tvrdaš.

In 2015 in accordance with the Law on Electronic Communica-tions, transfer of rights for the use of radio-frequencies from the business company “North Sky” d.o.o. Bijelo Polje to the NGO “Plus 103“ Bijelo Polje for the use of radio-frequency 103.0 MHz at the location Obrov.

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4.1.3. Inefficient use of radio-frequencies

In 2015 the Agency continued testing rationality and efficiency of the use of radio-frequency resources through the process of control and monitoring of radio-frequency spectrum by the means of fixed control-measuring stations in Podgorica, Sutomore, Pljevlja, Rožaje and Kotor, as well as mobile control-measuring stations in municipalities that are not in the zone of coverage of those fixed stations.

In line with the current practice, testing rationality of using limited resources primarily reflected in the determination of whether the users of the assigned radio frequencies using them, and if it is determined that the user of radio-frequencies did not use the assigned radio-frequencies , the user is then asked about the reasons for not using them and possible plans for the removal of shortcomings, which is then monitored in terms of the management of the radio-frequency spectrum, and su-pervision operations in the area of electronic communications. After the conducting control and monitoring, and supervision over the work of the entities, in the case of further non-use of radio-frequencies, the Agency continues to implement meas-ures relating to the cessation of the approval for the use of radio-frequencies in accordance with Article 121 of the Law on Electronic Communications.

Based on the control and monitoring of radio-frequencies im-plemented in 2014, it was noted that the business organization “Info-Kol” d.o.o. from Kolašin did not use radio-frequency 97.6 MHz at the site Bablja Greda in the municipality of Kolašin for a longer period of time approved by the Decision on the ap-proval for the use of radio-frequencies issued by the Agency in accordance with the Law. In this regard, the Agency sent letters to the business organization “Info-Kol” d.o.o. Kolašin asking for the explanation about the use of radio-frequencies at the above location. Since the aforementioned company did not submit any comments to the letters nor did they start using the radio-frequency at the location Bablja Greda, acting ex officio, in accordance with Article 121, paragraph 1, item 5 of the Law, the Agency adopted a Decision on the cancellation of the approval for the use of the aforementioned radio-frequency.

With regard to inefficiency of using some frequencies, in 2015 the Agency sent letters in the aforementioned context to the following entities:

- Business enterprise “Radio Television Atlas” d.o.o. Podgorica for not using radio-frequency 90.0 MHz at the site Spas in Municipality of Budva and the radio-frequen-cy 102.2 MHz at the location in Municipality of Cetinje,

- Business enterprise “Ponta”d.o.o. Herceg Novi for not using radio-frequency 106.8 MHz at the location Spas in Municipality of Budva, and

- Business enterprise “Radio Elmag” d.o.o. for not using radio-frequency 105.3 MHz at the location Spas in Municipality of Budva.

The Agency will take further measures in 2016 in accordance with Article 121 of the Law, if based on the control and monitoring, and supervision over the work of the above mentioned entities, it is determined that the listed companies still do not use the assigned radio-frequencies.

4.1.4. International coordination of radio-frequencies

One of the segments of managing radio-frequency spectrum is to coordinate the use of radio-frequencies in border areas. The Agency implements international coordination of radio-frequen-cies with competent administrations in neighbouring countries in line with the relevant international recommendation and documents in order to facilitate the use and provision of services in border areas.

In 2015, activities continued on the coordination of radio fre-quencies for mobile communication networks. In July 2015, a trilateral Technical Agreement on Border Co-ordination of GSM/DCS1800 systems in the frequency bands of 880-915/925-960 MHz and 1710-1785/1805-1880 MHz was signed between Monte-negro, the Republic of Croatia and Bosnia and Herzegovina. The Technical Agreement defines the framework for the unhindered deployment of GSM networks in the border area between the two countries. The most important elements of the Technical Agreement are the following:

the appropriate ECC Recommendation ECC/REC (05)08 was applied;

the use of radio-frequencies in border area between the two countries is based on the use of preferential channels;

the needs of operators in each country were taken into account so that 54 preferential channels have been allocated in the 900 MHz band and 124 in the 1800 MHz band for mobile operators;

all channels that are not defined as preferential shall be considered non-preferential;

notification of base stations is generally not required, but each party to the Agreement shall upon request of the other party submit data on base stations in the border area.

In 2015, the activities on the implementation of the said Agree-ment started and activities on the implementation of a similar agreement signed in early 2014 continued with the administration of the Republic of Albania. With representatives of the regula-tory agency of Albania joint measurements were conducted in both countries which were aimed at controlling the degree of implementation of the Technical Agreement and agreeing about further steps in its implementation.

Switching from analogue to digital broadcasting of radio-broad-casting signals (17 June 2015) part of the band 470-862 MHz was released and represents a digital dividend in a general sense. By the Decisions of the World Radiocommunication Conferences WRC 2012 and WRC 2015, bands 790-862 MHz (800 MHz) and 694-790 MHz (700 MHz) respectively, in addition to broadcasting and fixed services are intended for mobile services on a primary basis. The strategic commitment of all administrations of the EU Member States is granting the aforementioned bands to the mobile service, where the award procedure in some Member States is already completed. In 2015 the Agency started prepara-tory work which will in the future lead to similar outcomes - in the first step the awarding of the range 800 MHz to the mobile service, and later a range of 700 MHz. One of the initial steps is certainly re-planning of the Geneva GE06 Agreement according to the procedure defined by the Agreement itself implemented by the administrations of the members of the International Tel-ecommunication Union (ITU) which are the signatories of the


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Agreement, for the purpose of providing additional resources for the radio-broadcasting service. Taking into account the complexity of re-planning in the Region and considerations on the future use of the UHF band for the needs of electronic communications systems in general, several coordination groups have been established at the multilateral level in Europe, where new assignments for the needs of the radio-broadcasting systems were conducted in the band 470-694 MHz. One such group was formed by the administrations of Austria, Bulgaria, Croatian, Hungary, Montenegro, Serbia and Slovenia under the official name South East European Digital Dividend Implementation Forum - SEDDIF. The goal of administrations of SEDDIF is to carry out re-planning of the international Geneva Agreement (GE06) in order to achieve the optimal use of the band 470-694 MHz for radio-broadcasting service for all administrations. From the standpoint of equal access to radio-frequency resources this is a very complex issue and a big challenge especially when tak-ing into account different needs of individual administrations, representation of individual technologies, or platforms for the reception of audio-visual media signals and also a variety of resource efficiency within the DVB-T / DVB-T2 system.

At the first SEDDIF meeting, held in Budapest, organized by the Regulatory Agency for Electronic Communications of Hungary in October 2015, objectives were discussed and established, basic principles and methods of work, in the form of draft documents, elaborated further between the members administrations in the period until the end of 2015.

For the purpose of re-planning part of the band which remains allocated to the radio-broadcasting service, the Agency in the Allotment Plan of radio-frequencies for digital terrestrial broadcasting (Official Gazette of Montenegro, 55/14) in addition to the valid entries from the international plan GE06 Plan for Montenegro Negro gave new radio-frequency allotments for the radio-broadcasting service that the Agency will align with the administrations of the Region through the work of the SEDDIF group, while taking into account the fact that most of the ad-ministrations of the neighbouring countries have already become members of or have expressed interest to join this group in the forthcoming meeting. The Agency will take into account while taking part in the work of this group about the present and future national interests in the long term and for this purpose continue to carry out planning and harmonization of radio-frequencies allocated to the broadcasting service.

When it comes to the band 87.5-108 MHz the Agency conducted regular activities related to the coordination of radio-frequen-cies in this band awarded for broadcasting of radio signals. In accordance with the international Geneva Agreement 84 (GE84) with the Republic of coordination of additional 78 radio-fre-quencies in the above band was completed which are used at 22 locations in Montenegro. The consent by the administration of the Republic of Italy was signed on 22 January 2015 which is a formal confirmation to Montenegro regarding the use of radio-frequencies in accordance with the request of the Agency. Thus, all radio-frequencies in the bands 87.5-108 MHz which are used for broadcasting of radio-signal are compliant with the ad-ministration of Italy. In the present radio-frequency band, taking into account the approval received from the Administration of Italy, the Agency started with the administration of the Republic of Croatia and successfully completed the coordination of the 3 radio-frequencies of the Republic of Croatia and 8 radio-fre-quencies of Montenegro that Montenegro used at 4 locations

of importance for coordination with the Republic of Croatia.

In 2015, the Agency regularly carried out the analysis and prepared the views regarding the administrative circulars of ITU, which referred to the special section of publications of coordination requests of administrations, in all cases relevant to the analysis of compatibility with allocations of Montenegro contained in the international Agreement GE84 when it comes to the terres-trial radio-broadcasting systems for broadcasting of FM radio signal, or the GE06 Agreement when it comes to broadcasting of television signal. Also, the Agency in accordance with the pro-cedure presented in the Appendices 30, 30A and 30B of the ITU Rulebook on Radiocommunications and regulations that apply to all services and associated Plans and List for radio-broadcasting satellite service and fixed satellite service regularly conducted the analysis of obtained coordination requests and prepared documentation for the declaration of Montenegro.

4.2. Assigned numbering/addresses and assessment of their efficient use

The Law on Electronic Communications defines, inter alia, the responsibilities of the Agency in relation with addresses and numbers management as limited resources based on the Num-bering Plan and Addressing Plan issued by the Agency.

The Numbering Plan is based on the Recommendation E.164 of the International Telecommunication Union (ITU). The Numbering Plan contains definitions, structure and register of numbers and codes for the numbering area of Montenegro.

The Addressing Plan contains definitions and code structures of international signalling points, national signalling points and mobile networks, as well as identification code of the network for data communication and the way of its management.

The Agency manages the Numbering and Addressing Plans in order to meet the needs of operators which, according to the Law, have the right to be assigned numbers and addresses, making sure that this is done in a fair and non-discriminatory way. On the basis of the request for the approval for the use of numbering and/or addresses submitted by operators, the Agency issues the approvals for the use of these limited resources.

In 2015 the operators submitted 27 requests for the approvals for the use of numbers and addresses and 2 requests for the revocation of the right to use these resources. The requests for the approval to use numbers/addresses were submitted by the following operators:

- Crnogorski Telekom - 12 requests for the follow-ing: non-geographic numbers with access code 095, non-geographic numbers with access code 080 (free phone), for the allocation of mobile code (MNC) 66 for the provision of services by non-geographic numbers for mobile networks, short codes and the National signalling point codes. Based on these requirements 12 approvals were issued.

- Telenor - 4 requests for short codes. Based on these requests 12 approvals were issued.

- M: Tel - 5 requests for short codes and blocks of geo-graphic numbers. Based on these requests 5 approvals were issued.

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- Telemach - 2 requests for the following: geographic numbers and code of the National signalling point. Based on these requests 2 approvals were issued.

- M-cable - 1 request for the blocks of geographic numbers. On the basis of this request one approval was granted.- Wireless Montenegro - 1 request as follows: the mobile network code (MNC). On the basis of this request one approval

was granted.- ProntoTel - 1 request as follows: short codes. On the basis of this request one approval was granted.- Orion Telekom - 1 request as follows: for 3000 geographic numbers. On the basis of this request one approval was issued.

An overview of the types of numbers for the use of which an authorisation was issued in 2014 is given in the Table below:

Type of numeration Operator

Total numbers Crnogorski

TelekomTelenor M:Tel Telemach

OrionTelekom

M-Kabl Prontotel

Geographic numbers - - 28,000 5,000 3,000 8,000 - 44,000

Non-geographic numbers 078

- - - - - - - -


- - - - - - - 5


3 - 2 - - - - 2

Non-geographic numbers 094 and 095

2 - - - - - - -

Short codes – three-digit number

- - - - - - - -

Short codes – four-digit numbers

- - - - - - - -

Short codes – five-digit number

3 6 9 - - - - 18

Non-geographic numbers for mobile numbers

200,000 - - - - - - 200,000

An overview of the types of addresses for the use of which authorizations were issued in 2015 is presented in the Table below.

Type of signalling point /code

OperatorTotal codes Crnogorski

TelekomTelenor M:Tel Telemach

Wireless Montenegro

International signalling point - - - - - -

National signalling point 5 - - 1 6

Mobile network code (MNC) - - 1 1

Data network identification code (DNIC) - - - - - -

The following Table illustrates the type of numbers for which the right of use was revoked in 2015:

Type of numeration

Operator

Total numbers CrnogorskiTelekom

Telenor M:Tel

Short four-digit codes 2 - - 2

Short five-digit codes 8 - - 8

Non-geographic numbers 080 - - - -

Geographic codes - - - -

Non-geographic numbers 095 - - - -


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The Table below shows the types of addresses for which the right of use was revoked in 2015:

Type of signalling point / code

Operator

Total codes Crnogorski Telekom

Telenor M:Tel

International signalling point - - - -

National signalling point 1 - - 1

Mobile network code (MNC) - - - -

Data network identification code (DNIC) - - - -

An overview of total assigned and used numbers on 31 December 2015 is presented in the Table below:

Type of numeration

Operator

Total numbers

Crn

ogor

ski

Tele

kom

Tele

nor

M:T

el

IP M

ont

Wim

ax

Mon

tene

gro

Ori

on

Tele

kom

Pron

tote

l

Tele

mac

h

M-k

abl

Tele

info

Geographic numbers 819,000 10,000 28,000 3,000 5,000 8,000 873,000

Non-geographic codes 078

20,000 10,000 1,000 10,000 1,000 42,000


5,300 5,300


50 5 46

Non-geographic numbers 094 and 095

83 49

Short codes - three-digit number

2 2

Short codes - four-digit number

24 9 3 1 1 35

Short codes - five-digit number

254 51 61 362

Short codes - six-digit number

1 1

Non-geographic numbers for mobile networks (assigned)

1,570,000 1,100,000 1,100,000 3,770,000

An overview of approved addresses on 31 December 2015 is presented in the Table below:

Type of signalling point /code

Operator

Total codes

Crn

ogor

ski

Tele

kom

Tele

nor

M:T

el

Pron

tote

l

Wim

axM

onte

negr

o

Wir

eles

s M

onte

negr

o

Tele

mac

h

IP M

ont

International signalling point 6 2 2 - - - - - 10

National signalling point 59 25 16 1 1 - 1 1 104

Mobile network code (MNC) 2 2 2 - - 1 - - 6

Data network identification code (DNIC) 1 - - - - - - - 1

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An overview of the percentages of numbering resources used by operators on 31 December 2015 is shown in the Figure below.

The Figure below shows the percentages of the use of address resources on 31 December 2015.

Data on the assigned resources of numbers and addresses, as well as the procedure for obtaining the approval for the use of numbers and addresses and the request form are published on the Agency’s website. Operators have sufficient numbering and addressing resources for the provision of electronic communications services. In 2015, the Agency met all justified operators’ requests for the issuance of the approvals for the use of numbers and addresses.

4.3. Use of the Single European Emergency Number nnn“112”

The Single European Emergency Number “112” for emergency calls is not just a phone number, but also a synonym for modern integrated systems for receiving emergency calls and response to various emergency situations. The system “112” is primarily a technical-technological solution used by highly trained operators according to strictly defined operating procedures. The system is the integration of electronic communications and information systems which enable timely and rapid response of the operator to the calls of citizens and resources management needed to provide assistance. Modern technological solutions applied include automatic identification of the geographical location of the caller, software support for shortening the time for obtaining information from the caller, reliable forwarding of voice and/or non-voice information to the nearest service units responsible for re-sponding, geographic information system (GIS), support for scheduling and response of units, reporting

mechanisms and analysis of events, statistical tools and more.

The legal basis for the Single European Emergency Number “112” is contained in the Council Decision 91/396/EEC of 29 July 1991 on the introduction of a Single European Emergency Number. The number “112” is the only number for emergency calls available in all Member States of the European Union which has been introduced to enable citizens to have access to all services in the event of emergency such as fire department, police and health service.

Every country in Europe is organizing its emergency work in a different way. Also, among the emergency services themselves (police, fire, ambulance) there are often large differences in functioning. The introduction of new information-communication technology solutions to improve the operation of the service for emergency response changed the work of emergency services and their operating procedures to some extent in accordance with the proposed solutions, but essentially, the technical items


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is what needs to be adjusted to the procedures and methods of work of these services. Because of all this, there are no two “112” services operating in Europe in the same way, and often within one country there are several models of functioning in different regions. Therefore, there is no standard solution, but the tendency is to standardize certain components of the system.

The European Emergency Number Association - EENA defined the five basic models of functioning of emergency services, which apply with greater or lesser variations in European countries:

- Model 1: Calls to the number “112” is received and pro-cessed at the local level. The operator belongs to one of the emergency services. Such solutions are often a legacy of older times and are often a step on the way to changing the system. The downside of this model is that across the country very different technologies can be used.

- Model 2: Calls to the number “112” are filtered through a central point for receiving calls and then are forwarded to the regional centre of one of the emergency services. In this way the autonomy of calls to the national emer-gency numbers is preserved, i.e. the citizens are able to directly receive emergency service they are asking for. The advantage of this model is that greater centralization of the services for receiving calls is achieved, and thus savings in order to achieve the required functionality would be achieved (e.g. hiring interpreters for foreign languages, etc.).

- Model 3: In this model a Single Operational Centre was formed. All emergency services are concentrated in one location at the regional level. One of the services is usually responsible for receiving calls. This model in some countries works very well. The downside of this model can be a question of jurisdiction over more complex interventions.

- Model 4: Civil service operators and dispatchers. Highly trained civilians (the Agency) accept calls made to the number “112” and engage the necessary services units. This model requires highly skilled personnel and strong technical support. This may appears rivalry between professional emergency services and civilians who issue orders.

- Model 5: Public Safety Answering Points - PSAP. Points for the receipt of calls to the number “112” by using the same technology are mutually connected to the same network. Calls from one region can be accepted and processed in another region. This is a very efficient model since all PSAPs use the same technology and software. A strong technological support is important given that each centre serves as a backup to others. It is possible to use a single resource with interpreters for all centres. The model is decentralized and therefore easier to use, but requires strong central management with regard to the request for the same quality of service in each centre.

According to the Law on Electronic Communications, the operators of public telephone networks are obliged to ensure to all users of services free calls to the Single European Emer-gency Number “112”. The operator is obliged to forward to the Operational Communication Centre, without delay and without charge, all available information about the calls to the number “112” and other emergency numbers. The operator is also obliged to enable the user to make a call to the Single European Emer-gency Number “112” in another way, especially through short text messages (SMS).

In Montenegro, calls to the number “112” are received in the Op-erational Communication Centre 112 (OKC112), located within the Directorate for Emergency Situations of the Ministry of Interior. The forward the calls to the appropriate emergency services, i.e.: police, protection and rescue service, and emergency medical help. These services can still receive calls through the national emergency numbers 122, 123 and 124. This method of work cor-responds to the combination of the models 1 and 2. In order to better coordinate the work of emergency services and capacity utilization the Minister of Internal Affairs, in the Decision No.: 01- 113/13-60010 of 7 October 2013 formed a working group with the task to examine the possibilities of unifying the centres to use the numbers 112, 122, 123 and 124 within a single Operational Communication Centre 112.

According to the adopted plan OKC 112 should be located at the locations of the regional centres in Podgorica, Bijelo Polje and Bar. This kind of organization and the agreement between the Ministry of Interior of Montenegro and “Ericsson Nikola Tesla” d.d. in relation with the necessary equipment, the conditions were created to establish a new OKC 112 system, with the new equipment and the new software version CoordCom, which will cover the territory of Montenegro in line with regional affiliation.

In 2014 the preparation of the rooms of OKC 112 in Bijelo Polje and Bar and their connection through the network of the Ministry of Interior was conducted. The Protocol on cooperation with the Ministry of Finance to exchange data with the Real Estate Administration was signed and the use of their spatial data for geographic-information system of OKC 112. In April 2015 the application Coordcom 6.0 was checked by the factory in Zagreb and it was agreed that “Ericsson Nikola Tesla” should deliver the equipment for OKC 112 to the Ministry of Interior in June 2015. In May 2015, the first in a series of meetings with the operators of mobile and fixed telephony (Crnogorski Telekom, Telenor Mtel i) and the Agency for Electronic Communications and Postal Services was held. The meetings were subsequently held in accordance with the dynamics of works on the preparation of premises and installation of the equipment for the needs of OKC 112. The following was agreed at the meetings: to connect the operator to the OKC 112, territorial division, routing, mode of sending and receiving data and other technical issues.

After equipping the corresponding premises in Podgorica, OKC 112 started its trial work on 2 October 2015. Due to the lack of personnel OKC 112 operates at reduced capacity. Currently, calls to the number “112” are received in Podgorica and Bijelo Polje, while at the location in Bar calls will start to be received after the resolution of personnel issues and their education. Test work of OKC 112 will last one year until the system is put into operation.

The operators linked their network with all three OKC 112 locations and they are forwarding calls to the number “112”. In November 2015, OKC 112 received 20,039 calls and 24,284 calls in December. A significant part of these calls is generated from mobile phones without a SIM card and a noise from fixed lines for which no reaction of OKC 112 was requested. In 2015, Crnogorski Telekom started providing data about the location of users who calling “112” and Telenor and M:tel made preparations and they are also expected to begin submitting data about the location.

The Agency actively participated in the drafting of the plan of establishing and commissioning the OKC 112, coordination with the operators, resolving technical and regulatory issues, and informing the citizens about the existence and the use of the Single European Emergency Number “112”.

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5.1. Regulatory framework

The Law on Postal Services (Official Gazette of Montenegro, 57/11) regulates the conditions and ways of carrying out univer-sal and other postal services, and other issues relevant for the provision of postal services.

The Law on Postal Services somewhat reduced the competences of the Government of Montenegro and the relevant Ministry in relation with current legal provisions, and increased the Agency’s responsibilities as an independent regulatory authority in the postal service market, especially those related to the definition of the criteria for setting the prices of the universal postal ser-vices, of reserved postal services, verification of calculation of net costs of the universal postal service, professional supervision of postal operators, decision-making on users’ complaints and to international cooperation with the authorities and bodies of the Universal Postal Union and the European Union as well as with the regulatory authorities responsible for the area of regulation of postal services.

5.2. Development of secondary legislation

On the basis of competences arising from the Law on Postal Services, the Agency adopted within the legal timeframes in 2012 all by-laws from its scope of competencies, so during 2014 it monitored the development of by-laws, which are to be adopted by the relevant Ministry and the Government of Montenegro,

and for which the Agency prepared inputs in 2012, in accordance with Article 65, paragraph 1, sub-paragraph 2 of the Law on Postal Services. In 2015 the Agency also monitored the development of secondary legislation acts, which, according to the Law, are to be adopted by Montenegro Post as the Universal Service Operator.

Also, Montenegro Post has not adopted the Rulebook on general conditions for providing postal services and the Rulebook on the conditions and prices of access to the postal network of the Montenegro Post yet, which it was obliged to pass in the capacity of the Universal Postal Operator based on the competences defined in the Law on Postal Services.

5.3. The analysis of the postal services market

5.3.1. Montenegro Post

Montenegro Post, as the Universal Postal Operator, has a right and obligation to provide universal postal service in the whole territory of Montenegro.

In 2015 Montenegro Post provided a total of 21,493,420 postal services, which is by 5.34% more compared to the previous year. Out of the total delivered postal services 14,502,760 were uni-versal postal services, and 6,990,660 commercial postal services, or, in percentages 67.5% of delivered postal services refers to the universal postal services and 32.5% to commercial postal services.

5. DEVELOPMENT OF THE POSTAL SERVICE MARKET

The shares of universal and commercial postal services in the total postal services of Montenegro Post in 2015

In the structure of service volumes in 2015 the largest share, i.e. 68.37% referred to letter-post services, followed by cash operations with 28.9%. The volume of handled letter-post services in 2015 was by 5.3% higher compared to the previous year.

The volume of cash operations increased by 5.2% compared to the previous year. In total cash transactions, payments operations (credit-debit) made 51.6%, and bill collection 48.4%.

There is a significant increase in parcel services, money orders and express services compared to 2014.


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In 2015 Montenegro Post carried out 76,933 parcel services, which is an increase of 1.3 % in comparison with 2014, when the number of these services amounted to 75.920.

In 2015 Montenegro Post carried out 217.629 money order services, which compared to the previous year, when 143,081 money order services were delivered, makes an increase of 52.1%.

In 2015 Montenegro Post carried out 69.832 express services, which compared to the previous year, when 51,890 express services were delivered, makes an increase of 34.6%.

A downward trend in the physical volume of services was recorded in telephone services by 36.1% compared to 2014.

A Figure showing physical volume of individual postal services provided by Montenegro Post in 2015 compared to 2014 is given below.

Share of individual postal services in the total postal services rendered by Montenegro Post in 2015

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5.3.2. Other operators

In addition to Montenegro Post, other operators in the postal services market are:- “Kingscliffe Distribution Montenegro” - DHL;- “City Express Montenegro” d.o.o. Podgorica;- “Montenomaks Control&Logistics” d.o.o. Danilovgrad;- “Tim Kop” - TNT;- “Express Courier” - UPS;- “Alo Kurir Expres” Plav;- “Junior” d.o.o. Danilovgrad;- “NTC Logistics” d.o.o. Nikšić.

The Figure below shows the total physical volume of postal services provided by other postal operators in 2015.

The total physical volume of postal services provided by other operators in 2015 reached 347,467, which was a rise of 53.3% com-pared to 2014, when performed physical volume of postal services amounted to 226,713.

The biggest physical volume of postal services provided by other operators was achieved by City Express and Montenomaks Control&Logistics, whose volume of postal services accounted for 34.7% of the total postal services provided by other operators.

The Figure below presents express services provided by other operators in 2015.

In the structure of express services provided by other operators, the leading position was occupied by Montenomaks Control&L-ogistics, which covers 37.21% of the market of express services provided by other operators in 2015, being followed by City Express with 35.33% and DHL with 18.91%.

The Figure below shows an overview of parcel services provided by other operators in 2015.


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In the structure of parcel services provided by other operators, City Express which covers 34.23% of the parcel services market pro-vided by other operators in 2015, followed by Montenomaks Control&Logistics with 33.1 %, Junior with 15.66% and DHL with 11.41 %.

5.3.3. A comparative analysis of the postal services markets

In 2015, all postal operators provided a total of 21,840,887 postal services, which is a rise of 5.9% compared to the previous year.

Out of that number, Montenegro Post, as the universal service provider, provided 21,493,420 postal services, which accounted for 98.4% of the total volume of services provided, while other postal operators provided 2347.467 postal services or 1.6% of the total volume of services provided.

The overview of the total physical volume of postal services in 2015 is given in the following Figure:

Montenegro Post still played a dominant part in the market of postal services (98.9%), and the shares of other operators made 1.1%, which was a rise of 0.5% compared to the previous year.

Of the total number of postal services 21,840,887 which were provided by all operators, 21,075,793 or 96.5% referred to domestic postal traffic and 765,094 or 3.5 % to international postal traffic.

The Figure below shows the provided postal services in domestic and international traffic in 2015.

The following overview illustrates the shares of services of postal operators in the market of express services in 2015.

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Montenegro Post was a market leader in providing express services with 32.29% market share in 2015. It is followed by Montenomaks Control&Logistics with 25.2%, City Express with 23.92%, Kingscliffe Distribution Montenegro – DHL with 12.8%, Express courier – UPS with 2.43%, Junior with 1.49%, NTC with 0.75%, Tim Kop – TNT with 0.63% and Alo Kurir Expres with 0.49% market share.

The Figure below shows the shares of postal operators in the market of parcel services in 2015.

Montenegro Post occupied a leading position in the provision of parcel services in 2015 with 27.67% market share. It is followed by City Express with 24.76%, Montenomaks Control&Logistics with 23.94% market share, Junior with 11.33%, Kingscliffe Distribution Montene-gro - DHL with 8.25%, Express courier – UPS with 2.51%, NTC with 1.07%, Alo Kurir Express with 0.27% and Tim Kop – TNT with 0.20%.

5.4. Financial indicators

5.4.1. Financial indicators of Montenegro Post a.d.

The Table below shows the revenues of Montenegro Post a.d. in 2015.

REVENUES OF MONTENEGRO POST A.D. IN 2015 Expressed in €

I Operating income 14,305,174

II Other operating income 212,955

III Financial income 36,240

I-III Total expenditures 14,554,369

Total revenues in 2015 amounted to €14,554,369 and are higher by 6.9 % compared to the total revenues in 2014.

Expenditures of Montenegro Post a.d. in 2015 are given in the Figure below.


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EXPENDITURES OF MONTENEGRO POST a.d. in 2015 Expressed in €

I Operating expenditures 12,896,131

II Other expenditures 1,507,783

III Financial expenditures 8,450

I-III Total expenditures 14,412,319

Total expenditures of Montenegro Post in 2015 amounted to €14,412,319, which was a rise of 5.4% compared to expenditures in 2014.

Operating expenditures make 89.5 % of the total expenditures in 2015, while the share of other expenditures is 10.4% and financial expenditures 0.1% of the total expenditures.

In operating expenditures labour expenditures have the largest share (69.8%).

Labour expenditures in 2015 are higher by 4.4% compared to 2014.

In 2015 Montenegro Post had a positive financial result and made profit in the amount of €82.994.

5.4.2. Financial indicators of other operators

Total revenues of other postal operators in 2015 amounted to €1,463,259.62 which is an increase of 4.2% compared to the total revenues generated in 2014.

An overview of other operators’ share in the total revenues generated in 2015 is given in the Figure below:

In the revenues structure of other postal operators, the dominant position was occupied by Kingscliffe Distribution Montenegro – DHL with 50.1 %, Montenomaks Control&Logistics with 21.4%, City Express with 13.8%, Express Courier – UPS with 5.9%, Junior with 5.1%, NTC with 2.1%, Alo Kurir with 0.9% and Tim Kop –TNT with 0.7%.

A comparative overview of other operators’ revenues generated in 2015 compared to 2014 is given in the Figure below.

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5.4.3. Comparative financial indicators of Montenegro Post a.d. and other operators

The total revenues generated from the provision of postal services in 2015 were in the amount of €16,017,628. Compared to 2014 total revenues generated from the provision of postal services in 2015 increased by €1,007,505.97 or 6.7%.

Montenegro Post earned the revenue in the amount of €14,554,369 while other postal operators generated the revenues in the amount of €1,463,259 or in percentages 90.9 % and other postal operators generated the revenues in the amount of 9.1 %.

5.5. Methodology of keeping accounting separation of the Universal Postal Service operators

The 2015 Public Procurement Plan earmarked funds for the im-plementation of the public procurement of the “Consultancy services in the development of Methodology of accounting and calculating net costs of universal postal service”.

However, based on the decisions of the Agency Council in the first half of 2015 the Public Procurement Plan was amended and the name of the public procurement in question was changed into the “Consultancy Services for the implementation of the project of the Development of the Rulebook on the method of accounting and calculating net costs of universal postal service”.

After the implemented public procurement procedure, on 7 August 2015 the Agency issued the Decision on the election of the Consortium Ernst & Young Montenegro and Ernst & Young Ltd. the Czech Republic as a bidder who submitted the best bid.

The team of consultants of Ernst & Young in the course of 2015 drafted the Report on possible concepts that can apply during the preparation of the Rulebook on the method of accounting and calculating net costs of the provision of universal postal

service, with a specific proposal of the team of consultants re-garding the Rulebook and methodology and the entire analysis standing behind the proposal.

The Report, among other things, includes:• An overview of the legal and regulatory frameworks

of universal postal services in the European market of postal services;

• An overview of the regulations in Montenegro;• An overview of the market structure of the universal

postal service and the trends of commercial postal services in order to acquire the commercial and finan-cial context needed to support the production of the Rulebook on the method of accounting and calculating net costs of the provision of universal postal service;

• An overview of possible the ways of the calculation of net costs of universal postal services in Montenegro, such as:1. Deficit Approach - DA2. Net Avoidable Cost - NAC and3. Profitability Cost Approach - PCA;

• An overview of accounting and cost principles (FAC, LRIC) and cost basis (HCA, CCA) for defining net costs of the universal postal services in Montenegro.

The expert team of the Consortium Ernst & Young Montenegro and Ernst & Young Ltd. the Czech Republic, after the adoption of the Report on the possible concepts during the drafting of the Rulebook on the method of accounting and calculating net costs of universal postal service by the Agency, developed by the end of 2015 the Draft Rulebook on the method of accounting and calculating net costs of universal postal service.

The harmonized draft Rulebook will be the subject to public consultation with interested parties in the first half of 2016. The consulting team would then draft the Rulebook on the method of accounting and calculating net costs of universal postal service and take part in the implementation and regular monitoring of the implementation of the Rulebook.

6. DEVELOPMENT AND QUALITY OF UNIVERSAL POSTAL SERVICE

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The universal postal service is a postal service of specified quality and standards, which is performed continuously, without discrim-ination, under the same conditions and at an affordable price for all customers in the domestic and international postal traffic.

The universal postal service is a service in the public interest for Montenegro and includes receipt, sorting, transport and delivery of:

- letter - post items, weighing up to 2 kg,

- parcels weighing up to 10 kg,

- money orders,

- secogramme weighing up to 7 kg free of charge,

- registered (and insured) postal items,

- court letters and letters in administrative proceedings.

The universal postal service includes the delivery of parcels weighing up to 20 kg in international postal traffic.

The universal postal service must be provided to all customers, every working day, not less than five days a week, at least with one receipt and one delivery of mail in the area of universal service.

The quality of the universal postal service shall be determined on the basis of:

- availability of postal services,

- speed and reliability of the transport and delivery of postal items,

- security of postal items.

6.1. Availability of postal services

The availability of postal services can be reviewed through the availability of post offices and mailboxes, opening time of post offices, as well as the coverage of the population by the delivery of postal items.

Montenegro Post has 140 post offices outlets (units of the postal network). Out of the total number of postal network outlets, 88 are automated. The structure of 140 units of the postal network is as follows:

- 84 permanent postal outlets

- 6 seasonal postal outlets and

- 50 active franchise postal outlets.

Pursuant to Article 89 of the Rulebook on postal services (Official Gazette of Montenegro, 49/14), the quality of universal postal service is provided if one unit of the postal network (post office) operates in the area of the maximum up to 100 km2 and if one unit of the postal network operates on average for up to 5,000 people. By comparing the size and population of Montenegro with the number of post offices, it can be concluded that one post office covers 98.65 km² and that one post office covers 4,466 inhabitants, which in line with the standards.

Montenegro Post has 169 mailboxes in operation. Comparing this number to the number of population in Montenegro, it appears that there are 3,700 inhabitants per mailbox, which is not in accordance with the standard defined in Article 88 of the Rulebook on postal services, which envisages that one mailbox is installed per 1,500 inhabitants. Mailboxes are most intensively used in bigger towns and tourist centres, while in other areas their use has been declining. Montenegro Post believes that this standard should be changed in line with the practice that has been repeating for years now.

Montenegro Post conducts regular changes of working time of post offices. These changes are related to the start of work, duration of working hours during the day, week and year. This is particularly important for the work of post offices in tourist centres, but, in case of need, it applies to other post offices.

Management of working hours is done on the basis of monthly analysis of data relating to post office operation, the number of services performed, financial results of operations and data obtained through various forms of communication with users of postal services.

Montenegro Post determines working hours and opening hours of all post offices, particularly of seasonal ones, on the basis of the criteria laid down in Articles 92 through 96 of the Rulebook on postal services (Official Gazette of Montenegro, 49/14).

Montenegro Post has 87 delivery post offices from 259 delivery areas which are defined as narrow, broader and broadest and a combination of these three basic types, depending on topog-raphy, traffic network, density of the population, the quantity of deliveries and the like. In this way the whole territory of Montenegro is fragmented and covered.

Montenegro Post has 3,170 PO boxes in delivery post offices.

6.2. Speed and reliability of transfer and delivery of postal items

Speed and reliability are the criteria of the quality of transfer of postal items, which means that the consignment is safely transferred and delivered within transfer time measured from the date of receipt until the date of delivery.

The Law on Postal Services (Official Gazette of Montenegro, 57/11) and the Rulebook on postal services (Official Gazette of Montenegro, 49/14) determine the quality standards in domestic and international postal traffic.

The quality of universal postal service in domestic postal traffic includes the delivery of at least 95% of postal items within 3 working days.

The time of receipt of a postal item shall be determined on the basis of a stamp of the postal operator on the receipt of the registered goods, or on the posted item itself in case of unregistered postal item.

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The quality of universal postal services in international postal traffic calls for the delivery of 85% of letters within a maximum of 3 working days on average and 97% letters within up to 5 working days.

The deadline for the delivery of postal items is considered the time from the receipt of a postal item up to its delivery. The deadlines in domestic and international postal services do not include:

a) delays due to incorrect or incomplete address of the recipient,

a) delays due to force majeure, or traffic delay not caused by the postal operator,

a) non-working days and days when delivery of postal items is not performed.

Deadlines for the transfer of postal items in international postal traffic depend on the distance of the recipient’s country, trans-port links and quality standards of the national operator of the universal postal service.

The quality of the provision of a postal service ensures a com-petitive advantage in the postal service market and users’ trust.

The Law on Postal Services stipulates the obligation of universal service operator to provide the measurement of quality for the transfer of postal items on annual basis, in order to determine the percentage of delivered items and other data that determine the quality of universal postal services by hiring an independent institution engaged in research and monitoring.

In 2015, Montenegro Post hired an independent institution (enterprise CEED Consulting d.o.o. from Podgorica), which in June 2015 conducted the control and measuring of the quality of transfer of ordinary letter-post items in Montenegro for 20 working days in continuity.

The sample was made on the basis of data on the physical vol-ume of items received to the postal system over counters and through mailboxes in June 2014, when the number of received ordinary postal items was 1,083,127 pieces and based on the total number of registered postal items received in the postal system of Montenegro Post from 15 June-30 June (measurment period for registered deliveries) when this number was 104,066.

Measuring the quality of transfer of ordinary letter - post items in domestic postal traffic

The sample size when measuring the quality of transfer was 832 sample test letters. This sample had to cover the whole territory of Montenegro.

The percentage of sample test letters sent over the counter amounted to 95% (790 sample test letters), while the remaining 5% (42 test letters) were sent through mailboxes.

Out of 832 ordinary postal items, 771 or 92.7%, were delivered within three days (D+3), which was by 2.3% below the prescribed standard (95%) and is a better result than the one obtained last year, which reached 90.3% and we can say that it is an indicator of a globally a bit better quality of services in the segment of delivery of ordinary letter.

The quality of delivery of ordinary letter-post items is a bit worse compared to the measurement results in 2014 and for the delivery standard D+1 (delivery within one day) and a bit better compared to the last year for the standard D +2 (delivery within of two days).

In fact, the percentage of 62.4% was reached for standard D+1 and this year it is 61.3%.

As for standard D+2, percentage of 81.9% was reached, and this year it is 84.7%.

Control of quality of transfer and delivery of ordinary postal items (achieved results for standard D+3 and the standard higher than D+3)

Transfer and delivery period

Number of postal items

%

1 day 510 61.3%

2 days 195 23.4%

3 days 66 7.9%

Total up to 3 days 771 92.7%

Over 3 days 61 7.3%

Total sample 832 100%

Of 832 ordinary letter-post items 771 postal items were delivered within 3 days or 92.7%, which is below 95% which is a prescribed standard (Article 59 of Law on Postal Services). This result is bet-ter compared to the previous year, but it is still unsatisfactory.

Measuring the quality of transfer and delivery of registered postal items in domestic postal traffic

Measuring the quality of the transfer and delivery of registered postal items in domestic traffic was done on a sample of 10,407 registered postal items, which is 10% of the total number (104,066) of these items received during the period of measurement.

Based on a sample of 8,502 pieces of registered items, it was found that 95.98% of postal items were delivered within three days, which means that for the prescribed standard D +3, the objective of quality for 95% of the domestic postal traffic was achieved, which was in accordance with Article 59 of the Law on Postal Services.

SampleUp to 3

daysOver 3 days

Number of items 10,407 10,091 316

In percentages 100% 96.96% 3.04%

The quality of the transfer and delivery of registered postal items in domestic postal traffic, which in 2014 amounted to 96.96%, was better compared to last year, when it was 95,982%, and the prescribed standard of 95% was achieved (Article 59 of the Law on Postal Services).

Measuring the quality of transfer and delivery of registered postal items relating to international traffic

In Montenegro Post two measurements of the speed of trans-fer of postal items relating to international postal traffic were conducted in 2015, such as:

• Measuring the quality of transfer and delivery of postal items from international traffic by participating in the project GMS (Global Monitoring System) E2E Internal, organized by the Universal Postal Union. The mea-surement was conducted by exchanging test letters


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between the following postal administrations: Bosnia and Herzegovina – Croatia, Post Office Mostar, Croatia, Serbia and Turkey.

• Measuring of the quality of transfer and delivery of postal items from international postal items based on the data from the post office centre

Measurement of the quality of delivery of ordinary postal items in organization of Universal Postal Union

Since August 2014, Montenegro Post has started measuring the quality of transfer of ordinary postal items relating to international traffic, by participating in the project GMS (Global Monitoring System) E2E Internal, organized by the Universal Postal Union. The measurements currently included Bosnia and Herzegovina, Croatia, Serbia and Turkey.

This measurement is conducted based on the set of international routes in air transport, with defined routes and time of movement.

The achieved results are as follows:

Bosnia& Herzegovina - import (received): D+3 is 20.1%, and D+5 is 71.0%, export (sent): D+3 is 20.1%, and D+5 is 78.6%,

Croatia - import (received): D+3 is 56.2%, and D+5 is 83.7%, export (sent): D+3 is 56.2%, and D+5 is 96.4%,

Serbia - import (received): D+3 is 97.1%, and D+5 is 99.3%, export (sent): D+3 is 97.1%, and D+5 is 97.7%,

Turkey - import (received): D+3 is 0.5%, and D+5 is 4.6%, export (sent): D+3 is 0.5%, and D+5 is 27.1%.

For postal items from Serbia regarding imports and exports the target of 85% of the prescribed standard of D + 3 and the target of 97% of the prescribed standard D + 5 were achieved.

Measuring the quality of the transfer and delivery of registered postal items from incoming international traffic based on data from the post office centre

Montenegro Post does not perform this measurement, which checks the quality of transfer of registered items that come from the international traffic, on end-to-end basis yet (from the point of sending to the place of receipt), as required by international standards. However, it is still made in order to perceive at least the segment of time in which international postal items are delivered in Montenegro.

Measuring the quality of the transfer and delivery of registered postal items from incoming international traffic was carried out on a sample of 252 items, and the results are given in the table below.

Sample - number of postal items

Up to 3 days

Up to 5 days

Over 5 days

252 230 15 7

100% 91.27% 5.95% 2.78%

The results of measuring the quality of the transfer of registered postal items from incoming international traffic show that 91.27% of postal items are delivered within three days; additional 5.95% are delivered within five days, i.e. 97.22%, which meets the standards of quality.

6.3. Security of postal items

One of the most important criteria of the quality is the security of postal items.

Montenegro Post undertakes the following measures aimed at security of postal items:

• Control of postal items, at the stage of receipt, for do-mestic and international traffic, to prevent sending the contents prohibited by the Law which could endanger human health and life;

• Tracking of registered postal items in domestic and international traffic;

• Labelling ordinary postal items to be received, and the control of delivery to the address and via telephone, in order to increase security and the speed of delivery of such items;

• Assigning bar code labels for ordinary postal items from abroad which are not to be custom cleared;

• Training of employees regarding the implementation of measures for the security of postal items.

The assessment of security of postal items is partly done on the basis of the number of lost, robbed and damaged registered postal items, and this data is obtained on the basis of complaints of the users of postal services.

Security of postal items is also assessed by the number of inquiries resolved in domestic and international traffic.

Customer care In April 2015 Montenegro Post established a Quality Department within which a Customer Care Service operates.

Users can send their requests as follows: - Via a special number for customer care 19895;- Via email [email protected];- Via email to the employees in the Department; - To the Quality Department directly in writing.

Users can also forward their requests to all post offices as follows: - by calling the official telephone numbers of the post

offices, and - directly at the post offices counters.

In the period 2 April 2015 the Customer Care Service received 3808 requests of users of which 166 requests were complaints (4.36%) and all these requests were processed and resolved.

Received and completed inquiries in domestic and international traffic

Domestic traffic The total number of received inquiries in relation with domestic traffic was 1,447.

1,397 or 96.55% were resolved with positive outcome and 21 or 1.45% were resolved with negative outcome.

International traffic

The total number of received inquiries in international traffic is 1,152.

839 or 72.83% were resolved with positive outcome, and 31 or 2.69% were resolved with negative outcome, 282 or 24.48% were resolved out of deadline.

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7.1. Exercise of rights and protection of interests of users of electronic communications and postal services

The issue of protecting the interests of users of public electronic communication services is regulated by Chapter X of the Law on Electronic Communications, so that the users of public commu-nication services have the right to the following:

- access to public electronic communications network within eight days from the day of the submission of a request, if it is technically feasible,

- undisturbed use of public electronic communications services of specified quality, availability and safety, at publicly available prices,

- detailed itemized bill for services provided, which allows a clear insight in separate items and control of calculated amount for the provided service, or a non-itemized bill if so required by the user,

- protection of secrecy of electronic communications in accordance with this law and the law that regulates confidentiality of data, protection of personal data

and protection of unpublished data, and - exercise of other rights, in compliance with law.

A subscriber shall submit to the operator a complaint about the access to and quality of services immediately upon identifying such circumstances, while a subscriber shall submit a complaint against a bill 8 days from its receipt, in writing. An operator shall decide about the complaint within 8 days from the day of its receipt and make a decision in writing. If an operator rejects the complaint or fails to make a decision within 8 days from the day of its receipt, the user has the right to submit a complaint to the Agency for Electronic Communications and Postal Services within 15 days. The Agency shall issue a decision on the complaint in the period of 30 days. The Agency’s decision is final in the administrative procedure according to Article 32 of the Law, and an appeal against this decision can be filed to the Administrative Court of Montenegro within 30 days.

In 2015, the users of public communications services submitted 317 complaints to the Agency against the decisions of operators made under users’ complaints.

The Table below presents the total number of users’ complaints and the way of their resolution by municipalities.

7. EXERCISE OF RIGHTS AND PROTECTION OF INTERESTS OF USERS OF ELECTRONIC COMMUNICATIONS AND

POSTAL SERVICES

Municipality Accepted Declined

Resolved in another way Answered forwarded to

the inspection administration

Conclusion on abolishing the procedure due to waiving of

complaint

Conclusion on dismissing due to the lack of jurisdiction or

delayed complaint

Total in 2015

Podgorica 45 26 18 45 19 153

Nikšić 8 9 5 10 6 38

Cetinje 2 1 1 1 / 5

Herceg Novi 2 4 3 1 3 13

Bijelo Polje 2 1 / 3 1 7

Bar 3 2 / 4 1 10

Danilovgrad 2 4 2 1 1 10

Budva 1 2 3 2 8

Kotor 3 2 3 4 1 13

Berane 3 / / 1 2 6

Tivat 2 / 2 / 3 7

Rožaje 2 1 2 / / 5

Pljevlja 5 3 / 6 1 15

Šavnik 1 / / / 1 2

Plav / / 1 1 / 2

Gusinje / / / 1 1

Mojkovac / / / / / /

Ulcinj 1 2 1 5 1 10

TOTAL: 82 57 38 86 42 305

7. EXERCISE OF RIGHTS AND PROTECTION OF INTERESTS OF USERS OF ELECTRONIC COMMUNICATIONS AND POSTAL SERVICES

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12 users’ complaints were transferred to 2016 for further processing.

In 2015 there were 17 complaints against the decisions of the Agency’s Council that referred to the protection of the users of public electronic communications services.

Out of the total number of appeals, operators filed 7 appeals against the Agency’s decisions by which users’ complaints were accepted. Four appeals were filed by Crnogorski Telekom, of which two were rejected, one accepted, and one appeal is in the procedure before the Administrative Court of Montenegro. Out of 3 appeals filed by M:tel, two were rejected by the Decisions of Administrative Court, and one appeal was accepted. Users submitted 9 complaints in 2015. The Administrative Court decided in favour of 4 complaints, three complaints were rejected, and two complaints are in the procedure before the Court.

The given overview of complaints submitted in 2015 shows a rise in comparison with the previous year (297). The ratio between the accepted and rejected complaints in 2014 was 56.42% and 48.53% respectively, while in 2015 that ratio was 58.99% and 41.01% respectively. In 2015 a considerably larger number of conclusions were issued pursuant to provisions of the Law on Administrative Procedure with 86 conclusions the proceedings were suspended because meanwhile, from the time of filing the appeal, the operator reversed its decision or adopted us-ers’ objections, so that the users withdrew their appeals. This number of conclusions together with the number of adopted appeals shows that 168 complaints were resolved in favour of users which makes 53% of the submitted complaints in total, 32 conclusions on rejecting appeals were issued due to lack of the Agency’s powers to resolve users’ appeals, because the appeals lacked the basis for filing an appeal, as laid down in Article 163 of the Law on Electronic Communications, but were related to the issue of residual cash debts to operators for which proceedings for enforced collection and execution were initiated, or referred to termination of the contract with the operator for which the Agency is not authorized. In other cases of the issuance of con-clusions, appeals were rejected as untimely or incomplete. Some complaints were forwarded to the Inspection Administration since they referred to damaged telephone devices and some complaints were provided response.

The largest number of user complaints in 2015 related to the bill for rendered services, i.e. for roaming charges for calls and Internet services - data services, for which users received extremely high bills. The majority of complaints to the GPRS roaming came from users of contemporary smart-phones (iPhone, smart-phone, etc.), because these devices have certain applications that require a constant connection to the Internet and thus users make addi-tional costs without being aware of it. Also, when using voice service in roaming, users are not sufficiently aware of the billing of these services, i.e. that on the network of foreign operators, incoming calls are charged at the rates applicable from Monte-negro to the country in which the user is roaming and the user pays part of the international call.

As the 2013 Law on Electronic Communications allows number portability from one network to another, where users have the right to keep the number, a number of complaints related to the violation of deadlines prescribed by the Rulebook on number portability. These complaints were resolved in mediation with the operator in some cases after the control conducted by the supervisor for electronic communications which had shown that real reasons for the violation of deadlines when the operator

was ordered to address the requests of users in the shortest period of time and activate the number in the new network. However, with a number of complaints the reason for prolonging deadlines for number portability to the network of the newly elected operator related to the obligation to pay the debt with the previous operator, which was the sole responsibility of the user, which is why there were no grounds for the adoption of the complaint.

In early 2015, a significant number of users complaints were sent in writing or by e-mail against the increase in the minimum amount of prepaid recharges from €1.00 to €2.00. In this regard, the Agency, after the notifyications sent by the operators about the planned increase reacted in the interests of all users by issuing Decision which require from Crnogorski Telekom and M:tel revoke the deci-sion on the increase in the amount of recharges, starting from the legal provisions regulating the entitlement of users to the required quantity of the product available up to the amount s/he wants, and the right to choose the amount of spending - the amount of services since s/he was given the opportunity to limit spending for the accounting period for free. This view of the Agency was not supported by the Consumer Protection Organizations and the Administrative Court accepted the operators lawsuits and annulled the decision of the Agency as ungrounded.

With regard to application of Article 157 of the Law on Elec-tronic Communications, which stipulates the obligation of operators to deliver notification to subscriber in the event that subscriber’s spending exceeds his/her average spending in the last three months, which in 2014 was in a significant number of cases applied as a ground for accepting the complaints in all cases where the operator failed to provide the evidence on the submitted notification, it can be stated that the operators created technical conditions for the implementation of this legal requirement and that is why the number of cases is reducing in which failing to notify the subscriber on the reached amount of monthly spending in the past three months is the ground for complaint adoption.

Also, a significant number of complaints referred to the quality of services provided in fixed telephony, Internet speed and receiving TV services within specific service packages. In these cases, when deemed necessary, the Agency’s supervisors went to the spot to establish the facts, which served as a basis for deciding on appeals, and resulted in the correction of all bills in all cases when, due to the operator’s fault, users were denied access to services and the use of a service of contracted quality.

The Agency resolved users’ complaints usually sent via e-mail address of the Agency, which related to the Internet speed and quality (and which are usually in the users’ focus) by verification of measurements in cooperation with the user. Specifically, the Agency installed a facility www.izmjeribrzinu.ekip.me on its website that allows users to make their own check of data transfer speed.

The Agency, in collaboration with Innovative Trends Ltd. Zagreb, has developed a web application to assist users in the selection of electronic communications services in Montenegro. “Calculator” is an interactive tool to compare the offers of public electronic communications services in Montenegro in the fixed and mobile telephony, Internet access services, the distribution of TV and radio programs (AVM content) and the combined packages of the aforementioned services. “Calculator” is available at www.kalkulator.ekip.me.

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“Calculator” helps user in the selection of electronic communi-cations services that fit their needs. “Calculator” is of informative nature. It is based on data on prices and description of services introduced by electronic communications operators. In order to compare the costs for a particular service, the user must first enter their requirements based on the portal that will offer tariff packages. There are two entry methods, basic and detailed. With a simple entry, the user enters less data and certain assumptions apply based on the data on the average consumption of users in Montenegro for the selected service. To define the distribution of traffic to specific destinations, a detailed entry is used.

Based on the information about the desired electronic commu-nications service entered by the user and the data entered by the operators of electronic communications, “Calculator” provides a ranking list of the most favourable services offered by the operators responding to the requirements of users. The results obtained with the help of “Calculator” does not represent the monthly bills for the use of public electronic communications services. For the actual calculation, obtaining the offer and con-clusion of the contract the user is required to address directly the operator of electronic communications chosen by the user on the basis of recommendations/calculations of “Calculator”.

In all cases of resolution of complaints relating to the quality of service, the Agency determined the specific evidence through supervisors, and if there was a discrepancy in continuity of service provision, for which an operator was responsible, the Agency accepted customer complaints with the explanation that the operator was obliged to compensate to the user if its services deviated from the conditions specified in the subscription con-tract in terms of quality and availability.

In 2015 the use of a direct telephone number for contact with customers continued as well as of e-mail, which the Agency announced as early as in 2012 on the official website of the Agency www.ekip.me (link: Users ask). In this way, a considerable number of users received answers to their questions as soon as possible. The majority of user questions related to the proce-dure of complaints and appeals, number portability from one to another network, quality of service and the like. Also, a number of questions made by the users of electronic communications services were directed to the Agency through the Directorate of Inspection, i.e. from the address “Be responsible”. The Agency submitted responses to those questions as soon as possible, ex-cept in cases where the questions were incomplete, i.e. without the data that would allow verification of the statements and establishment of appropriate evidence, which was forwarded to the Inspection Administration.

In addition to the created conditions for direct contact with users, the Agency in order to improve awareness of users made available brochures with appropriate contents wishing to fa-miliarize customers with all the data related to the service they intend to use and the contract signed with operators. A growing interest of users for the website of the Agency - www.ekip.me information was noted where the info about the official operators offers are published together with price lists of all operators, subscription contracts and general conditions of the provision of services to which the Agency gave its approval, and the rights of users of electronic communications services and procedures of right protection.

The Agency continued its activities as defined by the National Consumer Protection Program 2012-2015 (NPZP) which was

adopted by the Government of Montenegro in October 2012, according to the annual Action Implementation Plan NPZP 2014 - 2015. The Agency submitted to the Directorate for Development of National Brand and Consumer Protection the document No. 0203 - 3851/2 of 26 June 2015 the Report on the implementation of the Action Plan for 2012-2015 NPZP (July 2014 - June 2015) with information on the activities of law enforcement in the field of electronic communications and postal services and activities undertaken by the Supervisor of the Agency, as well as data on the number of user complaints received relating to operators’ decisions, as well as data on the number of issued decisions on appeals. Also, in the document No. 0203-4099 / 2 of 10 July 2015 the Agency made a proposal for the contents in the area of telecommunications under its competence for the preparation and drafting of the NPZP 2015-2018 Programme Proposal and Proposal of the activities for the development of the Action Plan of the National Consumer Protection Programme for the period July 2015 - June 2016.

7.2. Exercise of rights and protection of interests of postal services users

Protection of users of postal services is regulated by the Law on Postal Services (Official Gazette of Montenegro, 57/11) in Section II POSTAL SERVICES, subparagraph 5. Protection of users of services and dispute settlement. The above subparagraph describes a defined procedure of filing a complaint with an operator due to:

- non-delivery or delayed delivery of postal items (Ar-ticle 45), when you can apply for a claim procedure for the postal item, and a complaint can be submitted within 6 months as of the date of the submission of the postal item;

- damage or reduced contents of the postal item (Article 46), when the complaint must be filed immediately upon delivery of a postal item, or no later than the following day.

Postal operator shall state its position regarding justification of the complaint within 10 days from receipt of the complaint in domestic traffic, i.e. within 60 days from receipt of the complaint in international traffic.

The complaint to the Agency against the decision of the postal operator, or its failure to answer the complaint filed, may be submitted within 15 days of receipt of the decision on the complaint and or expiry of the deadline for replying to the complaint. The Agency shall decide on the complaint within 15 days of receiving the complaint by adopting a Decision on the resolution of the complaint. The Agency may dismiss the complaint as untimely, accept the request and impose an obli-gation on the postal operator to compensate for the damage caused, or reject the complaint as unfounded and terminate the procedure, or instruct the user to bring their claims before the competent court. The Agency’s decision is final in the adminis-trative procedure, pursuant to Article 32 of the Law on Electronic Communications, and an appeal can be filed against it to the Administrative Court of Montenegro within 30 days. In the event that the postal operator does not comply with the decision, the Agency may initiate the procedure to revoke authorisations and special authorisations, or to remove the postal operator from the register of postal operators.


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In 2015 one complaint of postal service users was submitted to the Agency referring to the work of postal operator of Monte-negro Post which was rejected by the Decision No. 0203-3990/6 of 29 July 2015 as ungrounded.

7.3. Administrative procedures upon the requests of entities in the markets of electronic communications, and resolving disputes between such entities

The Law on Electronic Communications (Official Gazette of Montenegro, 40/13) entered into force in August 2013.

Pursuant to Article 34 of the Law on Electronic Communications (Official Gazette of Montenegro, 40/13) the Agency shall mediate in resolution of disputes between the operators. The Agency shall end the procedure of mediation within 90 days from the date of application for mediation. The Agency shall decide on the rights and obligations of operators, without delay but not later than 90 days from the initiation of the proceedings. The Agency decisions are final. Exceptionally, in the event that the administrative procedure is initiated, the enforcement of the Agency’s decision can be postponed until the court decision is made final.

The proceedings before the Agency will be subjected to the pro-visions of the law regulating the general administrative procedure, unless otherwise stipulated by the Law on Electronic Commu-nications . According to the Law on Electronic Communications (Official Gazette of Montenegro, 40/13) an appeal against the Agency’s decision may be filed with the Administrative Court of Montenegro within 30 days.

The following disputes were launched before the Agency in 2015 between the operators which provide electronic communica-tions networks or provide electronic communications services.

7.3.1. Administrative proceedings initiated in 2015 on the basis of market analysis

Wholesale market of access and call origination on public mobile telephone networks

In the repeated procedure, the Agency issued the Decision No. 0102-6169/55 of 30 April 2015, by which Crnogorski Telekom is designated as the operator with significant market power in the relevant market “Wholesale market of access and call origination on the public mobile telephone networks”.

Crnogorski Telekom a.d. filed appeal against the aforementioned Decision. The Ministry for Information Society and Telecommu-nications cancelled the Decision of the Agency. However, as the Decision of the Agency No. 0102-6169 / 1 of 20 October 2015, which was filed in the procedure of re-analysis of the relevant market “Wholesale market access and calls origination from the public mobile network” by which Crnogorski Telekom was again designated as the operator with significant market power in the relevant market, repealed the Decision No. 0102-6169/60 of 30

April 2015, the Agency will not launch new proceedings pursuant to the Decision of the Ministry of Up II No. 052-01-34/27-12 of 14 January 016.

Relevant market of broadband access to the Internet at the retail level

Against the Decision of the Ministry for Information Society and Telecommunications, which rejected the appeal of Crnogorski Telekom a.d. Podgorica and confirmed the Decision of the Agency which designates Crnogorski Telekom a.d. as the operator with significant market power in the relevant market of broadband Internet access at the retail level an administrative dispute was initiated before the Administrative Court of Montenegro in 2015. The dispute was not resolved in 2015.

Second round of the analysis of market in 2015 and administrative procedures regarding these solutions of the Agency

The Agency conducted analyses on the following relevant markets: Retail market of publicly available local and national long distance calls for legal and natural persons provided at a fixed location; Retail market of publicly available services of international calls for legal and natural persons provided at a fixed location; Wholesale market of trunk segments of leased lines; Wholesale market of access and call origination from the public mobile telephone networks.

After the conducted analyses, the Agency issued the decisions by which the operators with significant market power in the relevant markets were designated as follows:

- Decision No. 0102-6198/1 of 20 October 2015, which designates Crnogorski Telekom as the operator with significant market power in the relevant market “Retail market of publicly available local and national long distance calls for legal and natural persons provided at a fixed location”.

Against this Decision Crnogorski Telekom filed a lawsuit before the Administrative Court. The Agency submitted the case files and the response to the lawsuit, letter No. 0102-6198/3 of 21 December 2015.

- Decision No. 0102 - 6197/1 of 20 October 2015 based on which the plaintiff was designated as the operator with significant market power in the relevant market “Wholesale market of trunk segments of leased lines”.Against this Decision Crnogorski Telekom filed a lawsuit before Administrative Court. The Agency submitted the case files and the response to the lawsuit, letter No. 0102 - 6197/3 of 21 December 2015.

- Decision No. 0102 - 6196/1 of 20 October 2015, based on which the plaintiff was designated as the operator with significant market power in the relevant market “Wholesale market of access and call origination on the public mobile network”. Against this Decision Crnogorski Telekom filed a lawsuit before Administrative Court. The Agency submitted the case files and the response to the lawsuit, letter No. 0102 - 6196/3 of 21 December 2015.

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7.3.2. Administrative proceedings initiated in 2015 on the basis of annual regulatory fees Telenor d.o.o.

The Ministry for Information Society and Telecommunications annulled the Decisions of the Agency, twice in 2015 adopted in the repeated procedures based on which Telenor d.o.o. was entered in the Registry, harmonized licenses were issued in accordance with the Law on Telecommunications and fees established for 2009 and 2011.

The Ministry also annulled the Decision of the Agency in which annual regulatory fees are determined in the repeated procedure to the business company Telenor d.o.o. for 2010, 2012 and 2013.

The reasons for the annulment of the Decision of the Agency lie in the fact that the Agency did not recognize the right of Telenor to pay regulatory fees in line with the licenses until the expira-tion of their period of validity instead with the valid 2008 Law.

In the course of 2015 administrative proceedings were also initi-ated before the Administrative Court of Montenegro at Telenor lawsuits lodged against Decisions of the Agency on establishing annual regulatory fees for 2014 and 2015 for Telenor.

The Administrative Court of Montenegro, in the proceedings initiated upon the Telenor lawsuit filed against the Decision of the Agency in which annual regulatory fees for 2015 were de-termined for Telenor, issued a Ruling U No. 817/15 of 15 February 2016 taking a stand that the Agency acted properly when in the process of establishing annual regulatory fees for 2015 applied the applicable Law and that the business company Telenor d.o.o. is obliged to pay annual regulatory fees as the operator of electronic communications services and user of radio-frequen-cies, in accordance with the applicable Law, not in accordance with the regulations and laws that are no longer in force i.e. in compliance with licenses.

Crnogorski Telekom a.d.

The Agency is in the repeated procedure under the Decision of the Ministry for Information Society and Telecommunications No. UP II No. 052-01-9/15-13 of 4 May 2015 issued a Decision on establishing fees for the business company Crnogorski Telekom a.d. for 2013 No: 0204-220/16-2013 of 28 May 2015.

In 2015 administrative proceedings were initiated before the Administrative Court of Montenegro based on the lawsuits of Crnogorski Telekom lodged against the Decisions of the Agen-cy on establishing annual regulatory fees for 2014 and 2015 for Crnogorski Telekom.

The Administrative Court rejected the Decision of the Agency on establishing the annual regulatory fees for 2014 against which Crnogorski Telekom filed a lawsuit and issued a Ruling U No. 3140/14 of 21 May 2015, by which the Court decided that fees are established based on the Law and the license of this business company harmonized with the 2008 Law on Electronic Communications based on the applicable Law.

The Administrative Court also issued a Ruling U No. 738/15 of 20 February and reiterated that Crnogorski Telekom a.d. was obliged to pay annual regulatory fees in line with the applicable Law. This Ruling was issued upon the lawsuit of Crnogorski Telekom a.d. filed against the Decision of the Agency on establishing regulatory fees for 2015.

7.3.3. Administrative proceedings initiated in 2015 regarding the compensation of net costs for Universal Service in electronic communications

In 2015 proceedings were conducted related to the compen-sation of net costs of providing the Universal Enquiry Service for 2011 and 2012 before the Ministry for Information Society and Telecommunications for the appeals lodged against the Decision of the Agency No. 0402-6908/42-2012 of 25 December 2014 and Decision No. 0402-1384/39 of 25 December 2014. The proceedings were not completed in 2015.

In 2015 proceedings were initiated in cases of compensation of net costs of providing services of the Universal Enquiry Service for 2013 and 2014 before the Administrative Court of Montene-gro. These proceedings were not completed, unless in the case of the administrative dispute regarding the Decision on the compensation of net costs for the provision of the Universal Enquiry Service No.: 0402 - 1836/16 of 4 July 2014 for 2013 which was confirmed by the Ruling of the Administrative Court U No. 2481/14 of 20 May 2015 in the proceedings conducted upon the lawsuits of Teleinfo.me and Crnogorski Telekom a.d. The court decision is final.

Teleinfo.me filed a request for a retrial on 27 November 2015. The Agency issued a Conclusion rejecting the request No. 0402-1836/24 of 10 December 2015.

In 2015 administrative proceedings were initiated against the Decision of the Agency No.: 0402-3623/25-2014 of 15 Decem-ber 2015 and the Decision of the Agency No. 0402-2469/11 of 16 July 2015 in which the compensation was approved to the Universal Service Operator Telenor d.o.o. to cover net costs for the provision of services of Universal Service for access to public electronic communications network and publicly available electronic communications services at a fixed location for 2013 and 2014, before the Administrative Court of Montenegro. The proceedings in 2015 were not completed with final decisions.

7.3.4. Proceedings initiated in 2015 in relation with user protection in electronic communications

A Report on the proceedings initiated in 2015 regarding the user protection is presented in Item 7.1 of this Chapter.

In 2015, the Administrative Court of Montenegro, upon the lawsuits of Crnogorski Telekom and M:tel issued Rulings based on which it annuls the Decision No. 0901 - 3812/1 of 26 June 2014 and Decision No. 0901 - 3813/1 of 26 June 2014, in which the Agency obliged Crnogorski Telekom and M:tel to abrogate the Decisions on the amount of the minimal electronic recharge from €1.00 to € 2.00 for prepaid users stating that there were no grounds in the Law on Electronic Communications for Agency to act in this matter.


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7.3.5. Proceedings initiated in 2015 on the basis of misdemeanour orders issued by supervisors

The Misdemeanour Council and the Regional misdemeanours authority Podgorica issued in several decisions in 2014 based on which misdemeanour orders were rejected issued by the supervisor for electronic communications and postal services due to the lack of subject matter jurisdiction. The Misdemean-our Council ruled that the supervisors were not empowered to issue a misdemeanour warrant for offenses that are under their jurisdiction pursuant to the Law on Electronic Communications and the Law on Postal Services. On the occasion, since the ordinary legal remedies were exhausted, the Agency submitted motions to the Supreme Public Prosecutor for filing a request for the protection of legality against the final court decisions - the decisions of the Misdemeanour Council. The Supreme Public Prosecutor found that such actions did not violate the Law to the detriment of the Agency.

7.3.6. Proceedings initiated in 2015 before the Commercial Court

Proceedings were initiated before the Commercial Court in Podgorica under the lawsuits of Montenegro Post a.d. against the Agency for the invoices for reimbursement of net cost for 2010, 2011 and 2012, due to the refusal of the Agency to verify the accrual of net cost of the aforementioned years made by Montenegro Post a.d. On these bases administrative disputes are initiated before the Administrative Court of Montenegro for 2011 and 2012. In the case of claims for the collection of the accrued net cost for 2011 and 2012, the Commercial Court declared to have no subject-matter jurisdiction.

7.3.7. Administrative proceedings initiated in 2015 under the Law on Postal Services

In 2015 disputes were initiated before the Administrative Court of Montenegro referring to the lawsuits lodged by Montenegro Post a.d. against the following: Decision of the Agency to reject the request for verification of net costs of Universal Service provider in 2011, No. 0102-2472 / 42 of 25 June 2015, against the Decision of the Agency on rejecting the request of Montenegro Post a.d. for the compensation of net costs of Universal Service for 2012 No. 0102-2584/13 of 26 March 2015, the Decision of the Agency on rejecting the request for verification of net costs of Universal Postal Operator in 2013 No. 0102-2119/15 of 7 July 2015, the Conclusion of the Agency on dismissing the request for verification of net costs of Universal Postal Operator in 2014

No. 0102-2024/4 of 15 April 2015. Final court decisions were not issued in these court cases in 2015.

The dispute was initiated based on the lawsuit lodged by Mon-tenegro Post against the Decision of the Agency 0102-4859/4 of 24 September 2015 which rejected giving consent to the General conditions for the provision of Universal Postal Service by Monte-negro Post. Dispute was initiated before the Administrative Court of Montenegro based on the lawsuit lodged by Montenegro Post in which no final court decision was reached in 2015.

The dispute was initiated based on the lawsuit lodged by Mon-tenegro Post against the Decision of the Agency 0102-4860/2 of 1 September 2015 which rejected giving contents to the Price List of Universal Postal Service, which is an integral part of the Decision on establishing the prices of Universal Postal Service. Dispute was initiated before the Administrative Court of Mon-tenegro based on the lawsuit lodged by Montenegro Post in which no final court decision was reached in 2015.

The dispute was initiated based on the lawsuit lodged by Mon-tenegro Post against the Decision of the Agency 0102-601/4 of 15 April 2015 which rejected giving contents to the Rulebook on the method, conditions and prices of access to the postal network of Montenegro Post by other postal operators. Dispute was initiated before the Administrative Court of Montenegro based on the lawsuit lodged by Montenegro Post in which no final court decision was reached in 2015.

The dispute was initiated based on the lawsuit lodged by Mon-tenegro Post against the Decision of the Agency 0102-1922/3 of 25 June 2014 by which annual regulatory fees for 2014 were determined.

The lawsuit was rejected in the Ruling of the Administrative Court of Montenegro U No. 2235/14 of 18 March 2015.

Dispute regarding the Decision on establishing the dynamics of reduction of prices of roaming services

According to the Ruling of the Administrative Court U No. 966/15 of 12 June 2015 lawsuits lodged by Crnogorski Telekom a.d. and Telenor d.o.o. were accepted and the Decision of the Agency No. 0102-1484/1 of 11 March 2015 was annulled which determined the dynamics of the reduction of roaming prices. Before the adoption of this Ruling, a public hearing was held in Court 9 June 2015.

The Agency adopted in the renewed proceedings Decision No: 0102 - 4056/1 of 29 June 2015 which established the dynamics of reduction of roaming prices against which all three operators of public mobile communications networks, followed by the response of the Agency to the operators lawsuits.

The Administrative Court of Montenegro did not issue Decisions for these lawsuits of operators.

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8.1. Development of regulations in the area of electronic communications

In accordance with Article 11, paragraph 1, subparagraph 5 of the Law on Electronic Communications (Official Gazette of Montenegro, 40/13) the Agency adopted regulations based on the competences established by this Law. In line with the competences from the Law, the Agency adopted the following bylaws in 2015:

- Regulation on technical and other requirements for the design, construction and use of electronic com-munications networks, electronic communications infrastructure and associated facilities in buildings (Official Gazette of Montenegro, 41/15). The legal basis is contained in Article 39, paragraph 5 of the Law on Electronic Communications. This Rulebook pre-scribes the conditions for the planning, construction, maintenance and use of certain types of electronic communications networks, electronic communications infrastructure and associated facilities in Montenegro.

- Rulebook on the manner and deadlines for the imple-mentation of measures to protect security and integrity of electronic communications networks and services (Official Gazette of Montenegro, 41/15). The legal basis is contained in Article 169, paragraph 6 of the Law on Electronic Communications. This Rulebook prescribes the manner and deadlines for the implementation of measures to protect security and integrity of electronic communications networks and services, as well as the way of reporting violation of security and integrity of electronic communications networks and services.

- Rulebook on the conditions for planning, construction, maintenance and use of electronic communications networks, electronic communications infrastructure and associated facilities (Official Gazette of Monte-negro, 59/15). The legal basis is contained in Article 41, paragraph 6 of the Law on Electronic Communications. This Rulebook stipulates in detail technical and other requirements for the design, construction and use of electronic communications networks, electronic com-munications infrastructure and associated facilities in commercial and residential buildings.

- Allotment plan of radio-frequencies in the bands 2500-2690 MHz for TRA-ECS systems (Official Gazette of Montenegro, 17/15). The legal basis is contained in Article 98 of the Law on Electronic Communications. This plan determines the allotment of bands 2500-2690 MHz ( band 2.6 GHz) for mobile communications services, division of bands to the radio-frequency channels, detailed conditions, the manner of use, as well as the manner of allotment of radio-frequencies for TRA-ECS (Terrestrial Radio Applications capable of providing Electronic Communications Services) systems1, in accordance with the Allocation Plan of radio-frequency spectrum.

- Allotment plan of radio-frequencies in the bands 12.750- 13.250 GHz for fixed connections (Official Gazette of

Montenegro, 70/15). The legal basis is contained in Article 98 of the Law on Electronic Communications. This plan is determines the allotment of bands 12.750-13.250 GHz (13 GHz scope) for fixed service, division of bands to the radio-frequency channels, detailed conditions, the manner of use, as well as the manner of allotment of radio-frequencies for fixed connections of the “point-to-point” types in line with the Allotment plan of the radio-frequency spectrum.

- Rulebook on reporting radio-frequencies that can be used without approval whose use must be reported (Official Gazette of Montenegro, 06/2015). The legal basis is contained Article 99, paragraph 5 of the Law on Electronic Communications. This Rulebook prescribes the frequencies that can be used without the approval for the use of radio-frequencies whose use must be reported to the Agency.

- Regulations on the cessation of validity of the Rule-book on technical and exploitation conditions for the use of broadcasting stations for television programme broadcasting in the VHF I and III frequency bands and IV and V UHF (Official Gazette of Montenegro, 70/15) .

- Rulebook on the cessation of validity of the Rulebook on threshold limit values of EM fields (Official Gazette of Montenegro, 45/15).

8.2. Participation in the work of the World Radiocommunication Conference

In the period 2 November - 27 November 2015, the International Telecommunication Union (ITU), in accordance with Resolution 807 (WRC-12), organized the World Radiocommunications Con-ference(WRC-15).

World Radiocommunication Conferences (WRC) are held every 3-4 years and have a mandate to deal with the application and making changes to the Radio Regulations (RR - Radio Regulations), an international instrument regulating the use of radio-frequency spectrum, geostationary-satellite (GSO ) and non-geostation-ary-satellite (non-GSO) orbits.

Pursuant to the provisions of the Constitution of the ITU, competence World Conference on radio communications that:

• Consider the application of the Radio-communications and the related planning purposes and allocation of radio frequencies;

• Consider issues of world importance in the field of radio communications;

• It gives instructions to the Committee on Rules Radio-communication (RRB - Radio Regulations Board) and the Radiocommunication Bureau (RB - Radiocommunication Bureau) and monitors their work;

• Determine the issues to be addressed by the Radio-communication Assembly (RA - Radiocommunication

8. COMPLETED TASKS BY THE AGENCY SCHEDULED BY WORK PLAN


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Assembly) and its study groups in the preparation of the next conference on the Radio Regulations.

The World Radiocommunications Conference is a key event in the work of ITU in the field of international coordination, harmonization of positions and regulations in the field of radio communications. The conference was attended by representa-tives of ITU and ITU Member States (representatives of relevant ministries and national regulatory agencies) who are engaged in radio communications, then the authorized representatives of telecommunication companies, scientific and economic organ-izations, financial and development institutions.

WRC-15 had a 38-point agenda considered by the WRC in order to ensure the efficient and equitable access to spectrum as a limited resource, as well as positions on satellite orbits. At the WRC-15 conference there were over 3,000 participants from more than 150 member states of the ITU.

Montenegro was represented at the Conference by a delegation, composed of representatives of the Permanent Mission of Monte-negro to the UN and other international organizations in Geneva, the Ministry for Information Society and Telecommunications and the Agency for Electronic Communications and Postal Services.

At the end of the Conference the Final Acts were signed which combine all the decisions made, approved new and revised old resolution and recommendations, and Appendices. They will be the basis for a new edition of the ITU Radio Regulations on the basis of which the Agency is preparing and the Government of Montenegro is adopting the Allocation plan of radio-frequency spectrum which is the basic document for the management of radio-frequency spectrum as a limited resource.

8.3. Control and monitoring of radio-frequency spectrum

According to the Law on Electronic Communications, the Agency shall manage radio-frequency spectrum as a limited resource, which includes planning, assignment, coordination, monitoring and control of the use of radio-frequency spectrum (hereinafter referred to as: the RF spectrum). Also, the Agency shall plan, develop and improve the RF spectrum control and monitoring system. In the process of RF spectrum control and monitoring, the Agency makes necessary measuring of the pa-rameters of radio emissions to determine: occupancy of some radio-frequency bands pursuant to the Law and corresponding international agreements; to identify the sources, locations and

the sources of harmful interference and to control the fulfilment of conditions for the use of radio-frequencies stipulated by the approvals issued by this Agency.

Basically, the purpose of the RF spectrum control and monitoring is to provide support to RF spectrum management, including, inter alia, the assignment of radio frequencies and planning the use of RF spectrum. Monitoring organized in that way means “eyes and ears” of RF spectrum management, as the practice has shown that the authorized utilization of radio frequencies does not necessarily mean that they are properly utilized. The basic tasks in the RF spectrum monitoring are:

- control and measurement of technical and operating parameters of radio emissions;

- participation in solving the problems of harmful in-terference;

- detection, identification and positioning of unauthor-ized radio emissions;

- control and measurement of parameters for the quality of radio-communication services;

- identification of occupancy of specified channels and RF bands, with generating frequency recordings;

- support in coordination of the use of radio frequencies with administrations of neighbouring countries;

- participation in international programs (campaigns) for the RF spectrum control and monitoring.

In 2015, the Agency performed regular and extraordinary controls and monitoring of RF spectrum in the territory of Montenegro in the form of one-day or multi-day controls and measurement campaigns. All activities were carried out in accordance with the Plan of regular controls and monitoring of radio-frequency spectrum in 2015 and the Plan of work and the use of digital mobile control-measuring station (hereinafter: DMKMS) for the measurement of parameters of quality and coverage of the operators of mobile electronic communication networks in 2015.

In accordance with technical possibilities of the control-measure-ment equipment and software within the System for control and monitoring of RF spectrum of Montenegro (hereinafter: the System), control and monitoring of RF spectrum in 2015 was carried out in accordance with the relevant ITU recommendations for mon-itoring of the RF spectrum (ITU-R SM recommendations), CEPT/ECC recommendations, decisions and ETSI standards as follows:

- from the Main control-measuring centre on Dajbabska gora in the capital of Podgorica (hereinafter: GKMC) for the territory of municipality of Podgorica in the bands ranging from 10 kHz to 3 GHz;

- from the Regional control-measuring centre on Crni Rt near Sutomore (hereinafter: RKMC) for the territory of municipality of in the bands ranging from 10 kHz to 3 GHz;

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- from the Remote-controlled control-measuring station on Crljenice in the municipality of Pljevlja (hereinafter: DUKMS Pljevlja) in the bands ranging from 10 kHz to 3 GHz;

- from the Remote-controlled control-measuring station on Bijela crkva (hereinafter: DUKMS Rožaje), for the territory of municipality of Rožaje in the bands ranging from 10 kHz to 3 GHz;

- from the Remote-controlled control-measuring station on Trojica (hereinafter: DUKMS Kotor), for the territory of municipality of Kotor in the bands ranging from 10 kHz to 3 GHz;

- by use of mobile control-measurement stations in the vehicle of Mercedes Sprinter 316 CDI (hereinafter: MKMS) at several micro-locations throughout Montenegro in the range of 10 kHz to 3 GHz;

- by use of mobile digital control-measurement stations for monitoring parameters of quality and coverage of GSM/UMTS networks in the vehicle of Renault Traffic Passenger 2.5 dCi (hereinafter: DMKMS) at several mi-cro-locations and along roads throughout Montenegro;

- by use of manual and portable measurement equip-ment throughout Montenegro in the range of 10 kHz to 26.5 GHz.

The majority of regular activities related to the RF spectrum control and monitoring referred to:

- identification of occupancy of specific RF bands; - measuring and control of parameters of authorized FM

and TV broadcasting;- measuring and control of parameters of authorized

emissions of functional (PMR) radio-networks;- measuring parameters of coverage and quality of service

of mobile telephony operators in Montenegro;- determining the occurrence and identification of in-

terferences, as well as determining the appearance and identification of emissions without proper approval;

- extraordinary measuring of the presence of the signal of mobile operators from neighbouring countries;

- extraordinary measuring of parameters of coverage and quality of service of mobile telephony operators in Montenegro (for the implementation of Universal Service);

- extraordinary measuring at the request of the expert services of the Agency after received reports on in-terference by the users of the RF spectrum and other bodies interested in the situation in individual parts of the RF spectrum.

After collecting all control-measuring results obtained in regular or extraordinary procedures of RFS control and monitoring, further activities were carried out including:

- processing and expert analysis of the collected control and measurement results;

- preparation of reports and information on performed RF spectrum control and monitoring, and their further processing;

- preparation and sending letters – warnings to all the approval holders in whose operations shortcomings or non-compliance with the approvals were identified;

- keeping electronic data records in MS Excel application on identified shortcomings of some RFS users to whom letters – warnings had been sent.

Regular control and monitoring of RF spectrum in the municipal-ity of Podgorica in 2015 involved a daily control of individual RF

ranges by use of the control and measurement equipment and software installed in GKMC. According to technical capabilities of GKMC it mostly included carrying out of the following tasks:

- identification of occupancy of specific RF bands; - identification of unauthorized use of RF spectrum;- control of unidentified emissions and identification

of interference in specific RF bands with a focus on bands allocated to aeronautical mobile radio service and emissions received from Albania;

- control and measurement of values of the parameters of approved FM and TV broadcasting from transmitting sites (hereinafter: TS) in the city of Podgorica, as well as from TS Sjenica, TS RTV Dom, TS Ljubović, TS Donja Gorica, transmission centre Lovćen (hereinafter: TC Lovćen), TS Velja gora, TS Bjelasica Virpazar and TS Tuzi;

- control and measurement of values of the parameters of emission of functional (PAMR/PMR) radio networks allocated to Podgorica.

Regular control and monitoring of RF spectrum in Bar munici-pality involved the remote observation of some of the bands from GKMC on daily basis during working hours, by use of the equipment and software installed in RKMC. According to technical possibilities of RKMC, these activities in 2015 mainly related to the following:

- identification of occupancy of specific RF bands;- identification of unauthorized use of RF spectrum;- control of unidentified emissions and identification

of interference in specific RF bands with a focus on bands allocated to aeronautical mobile radio service and emissions received from neighbouring countries: Italy, Croatia and Albania;

- control and measurement of values of the parameters of approved FM and TV broadcasting from transmitting sites in the town of Bar, then from TS Volujica and TS Velji grad;

- control and measurement of values of the parameters of emission of functional (PAMR/PMR) radio networks allocated to Bar.

In 2015 regular control and monitoring of RF spectrum in the mu-nicipality of Pljevlja involved remote observation of some of the bands from GKMC on daily basis during working hours, by use of the equipment and software installed in DUKMS Pljevlja. According to technical possibilities of DUKMS e-Pljevlja, it basically meant


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carrying out the following tasks: - identification of occupancy of specific RF bands;- identification of unauthorized use of RF spectrum;- control of unidentified emissions and identification

of interference in specific RF bands with a focus on bands allocated to aeronautical mobile radio service and emissions received from neighbouring countries: Serbia and Bosnia&Herzegovina;

- control and measurement of values of the parameters of approved FM and TV broadcasting from transmitting sites in the town of Pljevlja, first of all from TS Tvrdaš;

- control and measurement of values of the parameters of emission of functional (PAMR/PMR) radio networks allocated to Pljevlja.

With regard to regular control and monitoring of RF spectrum in Rožaje, similar to the situation with RKMC and DUKMS Pljevlja, in 2015, remote observation of some of the bands from GKMC were performed on daily basis during working hours, by use of the equipment and software installed in DUKMS Rožaje. According to technical possibilities of DUKMS Rožaje, this was mainly related to performance of the following tasks:

- identification of occupancy of specific RF bands;- identification of unauthorized use of RF spectrum;- control of unidentified emissions and identification

of interference in specific RF bands with a focus on on emissions from neighbouring countries, Serbia and Kosovo;

- control and measurement of values of the parameters of approved FM and TV broadcasting from transmitting sites in the town of Rožaje, then from TS Bandžovo brdo, TS Završko brdo, TS Kacuber and TS Gospođin vrh;

- control and measurement of values of the parameters of emission of functional (PAMR/PMR) radio network allocated to Rožaje.

In 2015 DUKMS Kotor was also put into operation from which monitoring of individual frequency bands was conducted by using the equipment and software installed in this DUKMS. In line with technical possibilities of DUKMS Kotor the following tasks were done:

- identification of occupancy of specific RF bands;- identification of unauthorized use of RF spectrum;- control of unidentified emissions and identification of

interference in specific RF bands with a focus on emis-sions from neighbouring countries, Italy and Croatia;

- control and measurement of values of the parameters

of the approved FM and TV radio-broadcasting from transmitting sites TS Obostnik, TS Vrmac;

- control and measurement of values of the parameters of emission of functional (PAMR/PMR) radio network allocated to Kotor.

Regular control and monitoring of RF spectrum in remaining part of the state, which according to its reception and propagation characteristics is not within range of GKMC, RKMC, DUKMS Pl-jevlja, DUKMS Rožaje and DUKMS Kotor were performed in 2015 by using MKMS in one-day or several-day monitoring campaigns in the following locations: Nikšić, Cetinje, Bijelo Polje, Berane and Budvi. Regular measurements of signal quality of mobile operators by using DMKMS was conducted in the following measuring routes:

- Podgorica - Ulcinj - Herceg Novi;- Hereceg Novi - Nikšić - Žabljak - Pljevlja;- Pljevlja - Tomaševo - Bijelo Polje - Berane - Rožaje;- Rožaje - Berane - Plav - Gusinje - Podgorica;- Podgorica - Danilovgrad - Nikšić;- Podgorica - Cetinje - Budva as well as in - urban areas of municipalities of Ulcinj, Bar, Budva, Ti-

vat, Kotor, Herceg Novi, Nikšić, Žabljak, Pljevlja, Bijelo Polje, Berane, Rožaje, Plav, Gusinje, Nikšić, Danilovgrad and Cetinje.

In addition to regular, the procedures of extraordinary control and monitoring of RF spectrum were conducted. In 2015, the Agency dedicated a great deal of time to extraordinary measurements in accordance with the requirements of the spectrum users (reporting interference) and for the implementation of the Coordination Agreements related to certain frequency bands primarily GSM 900 and GSM 1800. Given the nature of extraordinary measurements and the manner in which they are initiated (due to the interference reported by the operator or other users of the spectrum, such as the Agency for National Security, Civil Air Traffic Control, etc.) or the request of expert services of the Agency, extraordinary measurements have priority over regular measurement.

In 2015 the following extraordinary measurements were conducted:- Parameters of quality of the mobile operators by DMKMS

in Medun for the implementation of Universal Service (January 2015);

- Parameters of quality of mobile operators by DMKMS in Nudo for the implementation of Universal Service (January 2015);

- Presence of the signal of the Albanian mobile operators by DMKMS on the route Virpazar - Ostrog - Vladimir - Ada Bojana - Petrovac - Podgorica, for the implementation of the Coordination Agreement (January 2015);

- Presence of the signal of the Albanian mobile operator by DMKMS on the route border crossing Božaj - Podgorica - Virpazar - Ostrog - Ada Bojana - Ulcinj - Bar - Petrovac - Virpazar - Rijeka Crnojevića - Podgorica for the imple-mentation of the Coordination Agreement (June 2015);

- Presence of the signal of the Albanian mobile operator by DMKMS on the route GP Božaj - Podgorica - Virpazar - Ostrog - Ada Bojana - Ulcinj - Bar - Petrovac - Virpazar - Rijeka Crnojevića – Podgorica for the implementation of the Coordination Agreement (October 2015);

- Upon reporting interference in Nikšić by using hand-held portable equipment (November 2015);

- Upon reporting interference in Podgorica by using hand-portable equipment (February 2015);

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- Upon reporting interference in Podgorica by using hand-portable equipment (March 2015);

- Upon reporting interference in Podgorica by using hand-portable equipment (March 2015);

- Upon reporting interference in Bar using by hand-port-able equipment (March 2015);

- Upon reporting interference in Podgorica using hand-portable equipment (March 2015);

- Upon reporting interference in Plav by using hand-held portable equipment (March 2015);

- Upon reporting interference in Kolašin by using hand-portable equipment (March 2015);

- Upon reporting interference in transmission facility Luštica by using hand-portable equipment (April 2015);

- Upon reporting interference in Tivat by using MKMS (May 2015);

- Upon reporting interference in Budva and Tivat by using MKMS (June 2015);

- In Podgorica by using equipment in GKMC-in (June 2015);- Upon reporting interference in Podgorica by using

hand-portable equipment (June 2015);- Upon reporting interference in Cetinje by using

hand-portable equipment (June 2015);- Upon reporting interference in Bar by using hand-port-

able equipment (June 2015);- Upon reporting interference in Bar, Sutomore by using

hand-held portable equipment (June 2015);- Upon reporting interference in the measuring route

Danilovgrad - Nikšić - Vraćenovići - Vilusi - Grahovo - Danilovgad by using DMKMS (July 2015);

- Upon reporting interference in Cetinje by using hand-portable equipment (September 2015)

- Upon reporting interference in Pljevlja by using hand-portable equipment (September 2015);

- Upon reporting interference in Bar by using hand-port-able equipment (September 2015);

- Upon reporting interference in Podgorica by using equipment in GKMC and MKMS (October 2015);

- Upon reporting interference in Podgorica by using hand-portable equipment (October 2015);

- Upon reporting interference in Podgorica by using equipment in GKMC-in (November 2015);

- Upon reporting interference in Podgorica by using equipment in GKMC-in (November 2015);

- In order to check functionality of the device ETL TV analyzer in accordance with the contract on the pro-curement of goods (November 2015);

- Upon reporting interference in Tivat by using hand-port-able equipment (December 2015);

- Upon reporting interference in Podgorica by using equipment in GKMC-in (December 2015);

- Upon reporting interference in Podgorica by using hand-portable equipment in the transmission facility (December 2015).

As in 2013 and 2014, the upward trend in the number of requests for extraordinary measurements continued in 2015. In 2015, the most requests for extraordinary measurements were submitted by the operators of mobile telephony, in particular M:tel. Inter-ference, which were established in the field for the most part hit a 3G uplink frequency range of the said operator (1920-1930 MHz) caused by the devices which work under the standard DECT 6.0 intended for sale and use in the North American market. The conducted measurements in several municipalities (Podgorica, Bar, Ulcinj, Kolašin, Plav) determined that there were over 50 such devices used by our citizens. In addition, rapid development of

wireless electronic communication networks, accompanied by using different technologies in the same frequency range (as is the case with mobile telephony operators) in the opinion of the Agency also influenced the increase in the number of requests for extraordinary measures. How fast and intensive is the development also reflects on the fact that sometimes the cause of interference (determined by measurements) is on the operator’s network or on its parts. Actually the measurements on the air and connecting the measuring devices directly to the transmission/receiving antennas of the operator did not show the existence of the external interference despite the intensive measurements for a period of several days.

As stated before the extraordinary measurements by DMKMS-TV in 2015 were used to determine the quality and signal coverage of mobile telephony for the purpose of spreading the universal service. Specifically in 2015 such measurements were carried out in the place Medun near Podgorica and Nudo near Grahovo. The measurements showed that in these places the operators did not have a satisfactory signal quality which implied the need for building a new base station which will enable provision of universal service to the local population. Also, by DMKMS in 2015 intensive extraordinary measurements were carried out along the border with the Republic of Albania three times dur-ing the year. All of these measurements showed the presence of operators from the territory of Albania but that there were some improvements and that in subsequent iterations full im-plementation of the Agreement should be reached. A similar level of implementation of the Agreement is also shown by our operators. At the end of 2015 extraordinary measurements were conducted regarding the presence of mobile operators along the border with the Federation of Bosnia and Herzegovina, the Republic of Serbia and the Republic of Croatia.

Demanding were also the measurements that were carried out at the request of the National Security Agency, with respect to the determination of the origin the unknown radio show. Once the Agency determined the existence of a signal at a specific frequency, it was found that the signal source was in the territory of the Republic of Albania, and during the joint measurements with the monitoring service of the Republic of Albania, measures and procedures were determined after which interferences in our country stopped. At the request of the Flight Control of Serbia and Montenegro (SMATSA) experts of the Agency by several days of measurements at the frequencies used by the secondary radar of Civil Aviation in Srpska gora (1030 MHz uplink and 1090 MHz downlink) in Podgorica found the cause of interference which was the installed wireless camera system used for video surveillance within the factory ENERGOGAS AD Podgorica. By


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implementing the compulsory measures the interference was eliminated. In the event of checking the interference reported by the operator M:tel in the municipality of Pljevlja, which completely blocked the work of the 3G system of this operator in the core of the municipality of Pljevlja, it was found that the interference was coming from the garrison/barracks of the Army of Montenegro in this city. It was a radio-relay link which in that period was on for the purposes of communication during the exercise. The cause of the interference in cooperation with the Army of Montenegro was eliminated by using another operating frequency of the radio-relay links.

After conducted regular and extraordinary procedures of control and monitoring of RF spectrum, detailed reports were made for each individual micro-location (including fixed stations GKMC, RKMC, DUKMS Pljevlja, Rozaje DUKMS, DUKMS Kotor, transmission and manual equipment). In the reports the found irregularities were stated with appropriate graphic overviews of the received emissions at certain frequencies (channels) and in different frequency bands. Tabular (numerical) overview of meas-urement results which accompanied the attached graphs, which are not presented in the reports because of their size, are kept in electronic form in a specific format of software for control and monitoring of RF spectrum manufactured by Rohde & Schwarz.

After the completion of measurements and creation of appropri-ate reports the Agency sent letters to the approval holders with which irregularities were determined in the use of the approved frequency resources - warning orders were sent in order to carry out additional work in order to use the approved radio-frequencies in accordance with the technical conditions set by the Agency. Holders of the approvals were required to inform the Agency about the actions taken within 30 days as of the date of the receipt of the notice - warning. In all cases when this timing and procedure are not respected and when in the additional control and monitoring of the RF spectrum is re-establish that those deficiencies had not been removed, the Agency acted in accordance with the Law on Electronic Communications.

Based on the conducted regular measurement campaigns in 2015 it can be concluded that the situation in the spectrum is exceptionally well. If we exclude interference in the GSM/UMTS bands caused by the use of devices operating under the DECT 6.0 standard, it is evident that the observed irregularities in other frequency bands are less present than in the same period last year. They mainly related to non-compliance with the maximum allow-able values for each parameter with FM broadcasting emissions (the level of field strength, modulation-frequency deviation, width of the occupied range, changes in the offset carrier frequency), and the under-impaired and suppressed harmonic products with the above mentioned causing the harmful interference to users of other frequency bands. In fact, in checking and monitoring a number of insufficiently attenuated inter-modulation products of the aforementioned FM broadcasting emissions were demod-ulated (slightly less than in the same period last year), which is mainly the result of the lack of high-quality filters, overcrowded FM bands and high Radiated power.

No significant problems were noticed in the use of the bands intended for functional (PMR) radio networks. The controlled approved emissions of these radio networks that were received during the monitoring were proper. No problems were noticed in the use of bands intended for the maritime mobile service. As this can be expected in the border municipalities the presence of FM and TV broadcasting emissions from the neighbouring countries was noticed.

In the RF spectrum emissions of digital television were noticed

to a greater extent than in the previous year, which will be the subject to detailed control and monitoring in 2016.

8.4. Monitoring of parameters of digital radio emissions of mobile operators

Based on the plan of work and the use of digital mobile con-trol-measuring station (hereinafter: DMKMS) for the monitoring of quality and parameters of networks of mobile operators, the Agency in 2015 carried out the measurements of the pa-rameters of coverage, features and quality of mobile operators’ networks along major roads in Montenegro, which included measurements in city core of a large number of municipalities in Montenegro.

Considerable attention was devoted to the measurement and analysis of the presence of signals of operators from the neighbouring countries, on the basis of bilateral Coordination Agreements that Montenegro signed with the administrations of these countries. In this regard, measurements were conducted regarding the presence of signal in the border region with the Republic of Albania, Bosnia and Herzegovina and Croatia. Meas-urements showed that there was some progress and reduction of the level of signal. Most intensive presence of the signal originating from the operators from the Republic of Albania and measurements were carried out through three iterations in 2015, of which two times the measurement were conducted by mixed teams from the Montenegrin and the Albanian regulatory agencies for electronic communications.

Regular measurement of the quality and coverage of operators in Montenegro were conducted in the second half of 2015 in the following measurement routes:

- Podgorica - Ulcinj - Herceg Novi,- Herceg Novi - Nikšić - Žabljak - Pljevlja,- Pljevlja - Tomaševo - Bijelo Polje - Berane - Rožaje,- Rožaje - Berane - Plav - Gusinje - Podgorica,- Podgorica - Danilovgrad - Nikšić,- Podgorica - Cetinje - Budva,- In urban areas of municipalities of Ulcinj, Bar, Budva,

Tivat, Kotor, Herceg Novi, Nikšić, Žabljak, Pljevlja, Bijelo Polje, Berane, Rožaje, Plav, Gusinje, Nikšić, Danilovgrad and Cetinje.

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Measurements were carried out on the go (drive test), where the measured parameters of coverage and quality of service related to voice service and data service. Measurements of voice and data services were carried out over the total mobile network operators, i.e. GSM, UMTS and LTE technology (automatic mode of network selection by the mobile measuring terminal). The measurement equipment of the manufacturer Rohde & Schwarz was used and it is composed of: six mobile measurement terminal models Sasmung Galaxy S3, scanner TSMQ, appropriate antennas and software ROMES. In order to meet the requirement of equality and objectivity, measurements over networks of all three operators were carried out simultaneously.

To measure voice service the measuring equipment was configured so that the mobile measuring terminals carry out calls to the answering machine installed in the networks of operators. Duration of calls 65s, pause between the calls was 20s, the time for making calls from the moment of initiating the call was 15s. During the measurement about 2,500 calls per operator were made.

Measuring the service parameters included testing the work of FTP protocol (download and upload) and HTTP ( web browsing). Testing of the work of FTP protocol was carried out by establishing sessions with FTP server that each operator individually installed in their networks. For FTP download as a sample a 3 MB file was used and for FTP upload a file of 1MB was used. The maximum duration of the session in both cases was limited to 85s. For the analysis of speed and performance of access via FTP between 2500-3500 samples per operator were taken, depending on the speed provided by the network. Testing the HTTP protocol was conducted by connecting to some of the most visited sites in the territory of Montenegro, according to the statistics of the website alexa.com. To analyze the speed and performance of HTTP sessions between 16,000 to 20,000 samples per operator were taken, depending on the speed provided by the network. The used test SIM cards did not have the speed limit and the amount of data transferred for download and upload, but used the maximum capacity of network.

Measurement, select the parameters, the number of samples and evaluation results were made in accordance with the Rulebook on the quality of public electronic communications services (Official Gazette of Montenegro, 33/14) and relevant international ETSI recommendations, standards and practices. The measurement results were published on the Agency’s website.

For speech service the following parameters were measured: Radio Network Unavailability (the probability that mobile service is not provided to the end user), Telephony Service Non-Accessibility (the probability that the end user cannot make a call even if the mobile terminal has an indication that his service speech is enabled), Telephony Setup time (time elapsed between sending the requests to making calls and the moment of receiving the signal for connection) and Telephony Cut-off Call Ratio (likelihood to terminate a successful attempt of making calls where termination is not initiated by the user who is making a call and/or the called users).

The corresponding values of these parameters for all three operators by cities and the total at the measuring routes are given in the following Table.

ParametarCrnogorski Telekom Telenor M:Tel Recommended

values Cities Total Cities Total Cities Total

Radio Network Unavailability

Total number of samples 1779 3078 1767 3057 1777 2987

Percentage of non-successfulness [%] 0.1 0.3 0.1 0.5 0 0.3 Less than 1%

Interval of reliability of the results [%] with certainty of 99%

0-0.4 0.1-0.6 0-0.4 0.2-0.9 0-0.3 0.1-0.7

Telephony Service Non-Accessibility


Percentage of non-successfulness [%] 0.1 0.3 0.3 0.7 0.2 0.9 Less than 2%


0-0.4 0.1-0.7 0.1-0.8 0.4-1.2 0-0.6 0.5-1.5

Telephony Setup Time


% of teh established calls in the interval of 0-6 s 95.5 96.7 99.7 99.2 98.1 98.1

More than 95% samples in the

interval of 0-6 s


94.1-96.7 95.8-97.5 99.2-99.9 98.6-99.5 97.1-98.9 97.4-98.7

Telephony Cut-off Call Ratio


Percentage of non-successfulness [%] 0.0 0.2 0.0 0.2 0.3 1.9 Less than 2%


0-0.3 0.1-0.5 0-0.3 0.1-0.5 0.1-0.9 1.3-2.6

For data service the following parameters were measured: PDP Context Activation Failure Ratio (likely to be PDP (Packet Data Pro-tocol) context cannot be activated, FTP Data Success Rate download (successful completion of the files transfer for FTP download service when connection to the packet network is successfully activated), FTP Data Success Rate upload (successful access and completion of transfer of file for FTP upload service, when a connection to the packet network is successfully activated), HTTP download data Success Rate (successful session for the HTTP service (web browsing), when connection to the packet network is successfully activated), FTP Mean Data Rate download (average data transfer rate measured during one session, i.e., download test file), FTP Mean Data Rate upload (average data transfer rate measured during one session, i.e. upload test files), HTTP download Mean Data Rate (average data transfer rate measured during one session).


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The corresponding values of service data for all three operators, by cities and the total at the measuring routes are given in the following Table:

ParameterCrnogorski Telekom Telenor M:Tel Recommended

values Cities Total Cities Total Cities Total

PDP Context Activation Failure Ratio [%]


Percentage of non-successfulness [%]

0.2 0.8 0.1 1.1 0.3 1.6 Less than 2%


0-0.5 0.5-1.2 0-0.4 0.7-1.6 0.1-0.7 1.1-2.3

FTP Data Success Rate download



99.7 99.4 99.9 99.7 99.0 98.3More than

96%


99.4-99.9 99.1-99.7 99.6-100 99.3-99.9 98.3-99.5 97.6-98.8

FTP Data Success Rate upload



99.9 99.7 99.4 95.9 99.5 98.3More than

96%


99.8-100 99.4-99.9 98.8-99.7 95.0-96.7 98.9-99.8 97.6-98.9

HTTP download data Success Rate



99.7 99.6 99.9 99.5 99.9 99.6More than

96%


99.6-99.8 99.5-99.7 99.8-99.9 99.4-99.6 99.8-99.9 99.5-99.8

The values of the other three parameters related to data service are given in the following Table. The term percentile (eg. 10 percentile) means that 10% of the samples has the lower value or equal to the speed value given in the following Table and ex-pressed in kb/s.

Parameter

Crnogorski Telekom

[speed in kb/s]

Telenor

[speed in kb/s]

M:Tel

[speed in kb/s]

Cities Total Cities Total Cities Total

FTP Mean Data Rate download [kb/s]

Total samples 3012 4286 2651 3683 1957 2969

Percentil 10 6622.67 2618.10 3060.50 1444.92 2065.02 1014.32

Percentil 25 15410.55 5567.12 6032.40 4409.40 3718.00 2877.10

Percentil 50 20352.80 17866.95 7742.90 7156.70 5886.50 5327.60

Percentil 75 22973.57 22061.00 15774.10 11866.70 7611.00 7355.90

Percentil 90 26061.50 25128.90 21748.70 20631.32 9099.54 9019.36

FTP Mean Data Rate upload [kb/s]

Total samples 3001 4264 2633 3588 1932 2865

Percentil 10 5536.37 2738.72 1439.56 1005.10 620.15 508.77

Percentil 25 27367.48 5185.08 3394.94 1461.02 827.91 801.72

Percentil 50 32768.00 30491.31 8410.67 6717.50 1165.45 1195.73

Percentil 75 35259.68 34420.16 10489.11 9846.15 1600.00 1615.13

Percentil 90 37236.35 36625.93 11804.03 11409.46 1743.30 1770.01

HTTP download Mean Data Rate [kb/s]

Total samples 19085 2753 16916 23355 12393 18784

Percentil 10 14.40 13.40 11.80 11.30 8.20 8.00

Percentil 25 47.50 45.60 64.30 51.20 14.30 14.40

Percentil 50 675.70 355.30 299.50 176.20 321.80 280.30

Percentil 75 2155.20 1664.42 1440.45 1276.65 977.10 946.80

Percentil 90 3111.42 2941.22 3285.90 3007.46 1634.86 1592.38

Since FTP servers are connected directly to the network operator, the measured speed of download and upload are the most relevant information on the capacity possessed by the networks, i.e. the speeds that networks can reach and which are largely dependent only on the network of the operator. When “web browsing” is concerned, the speed does not depend only on the operator’s network, but also from the connections with other operators outside of Montenegro, i.e. the route on which the link between the measurement terminals and http web pages are exercised. However, “web browsing” realistically reflects the speeds that the user has when accessing the above http pages.

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Based on the obtained results of the measurement results, it can be concluded that all operators meet the recommended values of the parameters of quality of speech and data services, and bearing in mind the number of users, degree of competition, diversity of services and applied technology it is confirmed that mobile com-munications networks and services represent the most developed segment of the electronic communications market in Montenegro.

8.5. Activities of further implementation of the RF spectrum control and monitoring system

The implementation of the System for control and monitoring of RF spectrum in 2015 was carried out in accordance with the Study on further development of the system in the period 2012-2016 (hereinafter: the 2012-2016 Study), the Financial Plan of the Agency and the 2016 Public Procurement Plan. This implementation is presented through the most important activities by items and relevant details as follows:

Procurement of control and measuring equipment (devices, antennas ...) and accompanying software for monitoring and direction finding of the signal with the installation and building-in on the site of control and measurement stations and integration into the existing system

After a successfully implemented procedure of public tender No. 1/2004 the Agency signed a contract with the selected supplier Rohde & Schwarz Österreich GmbH on 31 October 2014on the purchase of goods for the agreed total price in the amount of €384,370.00 and delivery time of 60 days from the date of signing the contract. The subject of this contract was the purchase of control-measurement equipment (devices, antennas...) and the accompanying software for monitoring and direction finding of the signal with installation and building in at the location of the control-measurement stations and integration into the existing System. The goods were delivered in the contracted period at the end of 2014 to the Main control and measurement centre in Podgorica (hereinafter: GKMC).

Once all the necessary conditions are met (favourable weather conditions, schedules of professional teams of the Agency and suppliers and all preparatory activities have been completed), in the period 13 April - 18 April 2015 the supplier’s authorized customer service carried out the installation of all equipment and software in GKMC-in (on the antenna mast and inside of the building) as well as contracted passive omni-directional antennas in the facilities of the Remotely controlled measuring stations (hereinafter: DUKMS) on the micro-location Trojica in the municipality of Kotor and DUKMS on the micro-location Bijela Crkva in the municipality of Rožaje. The completion was verified with the protocol document (Test protocol of acceptance on the spot - SAT) signed by the representatives of the Agency and the representatives of the supplier on 30 April 2015.

In accordance with this Contract following the agenda that was previously proposed by the Agency, in the period 27 April - 30 April 2015 the supplier delivered a training in GKMC for the experts of the Agency for the work with a control-measuring software - Argus, the latest generation.

On 4 May 2015 the Agency organized a meeting in GKMC with experts who had designed, performed and controlled the quality of the work in terms of lightning protection during the construction of GKMC, as well as the experts who maintain electrical energy (including lightning rod) installation in all buildings owned by the Agency. After analyzing the works carried out by ROHDE & SCHWARZ ™, the experts expressed a joint opinion that the newly installed lightning rod does not provide complete protection of the building and the people in GKMC. Accordingly, the Agency invited the supplier of the equipment to urgently deliver a docu-ment to prove that the installed ROHDE & SCHWARZ ™ system of lightning protection protects not only the newly installed antenna system, but the entire building of GKMC; otherwise they would be asked to put the previous lightening protection system back until a new appropriate solution for a safe installation of a newly provided antenna system for direction finding in GKMC is found. The supplier could not guarantee the requested, and the chief designer who did the original project of the lightning protection of GKMC (ELCON d.o.o. Podgorica), could not confirm without an extensive design analysis that the ROHDE & SCHWARZ ™ lightning protection system is acceptable for the protection of the entire facility. Therefore the newly installed antenna system for direction finding on GKMC was demounted as well as the factory ROHDE & SCHWARZ ™ lightning rod, and previous lightning protection of the facility was reinstalled and put into operation. These works were conducted by the authorized customer service providers of the supplier on 19 May 2015 at their own expense.

After all the necessary input data were provided by the Agency regarding the Terms of Reference, and by ROHDE & SCHWARZ ™ regarding the technical details of the aforementioned lightning protection system, the chief designer on 22 June 2015 submitted to the Agency major project for the lightning protection installa-tion for the GKMC building. This project proposed new technical solutions for the lightning protection in accordance with legal regulations applied in this area which entered into force in the meantime. As the proposed technical solutions did not completely give answers to the requirements of the Agency stated in the Terms of Reference, the designer in charge started drafting amendments to the main project. The revised main project was submitted to the Agency in December 2015. The audit of the submitted main project was conducted by a certified auditor - the company ŠTIT d.o.o. Podgorica, and the project was accepted.

The newly installed control - measuring equipment, devices, antenna system and the associated software at GKMC are of the latest generation and they enable performance of all scheduled tasks in the field of control and monitoring of RF spectrum in accordance with the 2012-2016 Study. For the first installation of equipment and software for goniometry GKMC was selected in accordance with the 2012-2016 Study bearing in mind that Podgorica is the capital and that the most important radio-communication systems are located in this area in which the largest part of the radio-communication traffic is located. Pursuant to the above, after the implementation of the designed technical solution of the lightning protection of GKMC (first quarter 2016) tasks related to signal finding direction signal will be enabled to be performed.

During the planning and implementation of the system attention was paid to making it possible that gradual techno-economical rational upgrade and migration of the existing control-measuring equipment and software in the system are allowed. This means that after purchasing the control-measuring equipment and software of the latest generation, control - measuring equipment and software of the earlier generations would migrate and install in other facilities in the system in accordance with the priority commitment of the 2012-2016 Study so that GKMC first and


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then the Regional control-measuring centre (hereinafter: RKMC) have the latest equipment and software with the largest range of necessary technical capabilities. According to these principles, one part of the previously installed control-measuring equipment and software (Monitoring Receiver ESMD and software Argus) from GKMC at the end of September 2015 migrated to RKMC which technically upgraded RKMC.

By this public procurement installation of antenna systems for DUKMS Rožaje and DUKMS Kotor were completed. On 9 June 2015 a report was made on quantitative and qualitative hand-over and installation of goods (measuring antenna) for DUKMS Kotor, which was signed by the authorized representatives of the Agency and suppliers.

Also, in this procurement a complete antenna system and the accompanying equipment designed for the first next DUKMS that the Agency intends to build on the micro-location of Bijela Gora in the municipality of Ulcinj were delivered. In addition, the above mentioned Contract stipulates that the authorized customer services of ROHDE & SCHWARZ ™ would conduct their installation, which will be done after the construction of the building and the antenna mast of this station. Other con-trol-measuring equipment and software for DUKMS Ulcinj will be provided from RKMC.

Purchase of the control-measuring equipment and related software for monitoring and signal direction finding for the existing Mobile control-measuring station

In the public procurement procedure No. 15/2014, on 19 December 2014 the Agency signed a Contract with the supplier ROHDE & SCHWARZ Österreich G.m.b.H. on the procurement of goods with the agreed total price in the amount of €359,005.15 and delivery time of 90 days from the date of signing the Contract. It is the acquisition of control-measuring equipment and accompanying software for monitoring and signal goniometry for the existing mobile control-measuring station (hereinafter: MKMS) which improved technical capabilities of MKMS in terms of monitoring and direction finding of the signal in motion.

In addition to the agreed installation of the equipment in MKMS, the appropriate adaptation of vehicles of MKMS was also agreed (Mercedes Sprinter 316 CDI purchased in 2005). Given the complex-ity of the activities related to this, all was preceded by detailed technical consultations with the supplier. On 15 January 2015, the authorized representatives of the Agency and suppliers at GKMC signed the protocol document which precisely defines technical ideas for the adaptation of vehicles and the installation of new control- measuring equipment, devices and supporting software that is precise details of the implementation of the improvement of technical capabilities of MKMS in terms of monitoring and direction finding of the signal in motion.

The MKMS vehicle, together with the previously purchased test TV analyzer manufactured by ROHDE & SCHWARZ type ETL, whose hardware upgrades DVB-T2 could only be done in the ROHDE & SCHWARZ factory in Memmingen was taken to Slovenia and Austria to an authorized service centre for further processing on 27 January 2015.

After the completed adaptation and installation of the equipment, on 30 March 2015 MKMS was delivered back to Montenegro to GKMC. Immediately upon its return, the official protocol test of acceptance was conducted with the supplier is in the following two days- SAT. On 1 April 2015, the authorized representatives of

the Agency and suppliers signed the protocol document which recognized some minor shortcomings in terms of the compass and mechanical antenna adapter and the problem that TV ELT analyzer does not fully decodes the content (transport stream) DVB T2 of the signal from the air. Everything else was done in accordance with the Contract. The supplier was obligated to eliminate all the deficiencies identified in the shortest possible time. Simulta-neously with SAT, the supplier organized for the representatives of the Agency the first part of the planned training to work with the equipment and software for goniometry installed in MKMS.

In the period 14 April - 16 April 2015, the planned continuation of the previous SAT was conducted, and the protocol report about it was made and signed. On this occasion, it was noted that in the meantime the authorized service of the supplier eliminated all the previously identified shortcomings except for the aforementioned problems with ETL. In this period, the supplier organized for the representatives of the Agency the second part of the training for the use of the equipment and software for goniometry installed in MKMS.

During the above mentioned training it was found that a portable goniometry device DDF007 cannot connect with the antenna ADD075. The supplier undertook the obligation to find suitable technical solution to resolve this situation and inform the Agency about it as soon as possible. This was done in a way that the supplier undertook the obligation and confirmed in the protocol document that he would deliver the appropriate antenna ADD207, which can be connected to DDF007 in order to satisfy the customer without any compensation in the forthcoming period. In this document the supplier also confirmed that he would take the test TV ETL analyzer at his own expense to conduct a new manufacturers test and determine the cause of the impossibility of decoding the contents (transport stream) of DVB-T2 signals from the ether. Accordingly, on 4 May 2015 the device was taken to the supplier’s service centre in Budapest. After the conducted manufacturers tests, the test TV analyzer was returned to GKMC on 26 June 2015. It was agreed with the supplier to re-install the device back into MKMS in early July and to test its functionality. The same thing was done independently by the experts of the Agency.

In intensive communication with the supplier and in commu-nication with representatives of the implementers of DVB-T2 infrastructure implementation in Montenegro, i.e. the operator of the first multiplex - the company Radio Broadcasting Centre d.o.o. Podgorica (hereinafter: RDC), the experts of the had been trying continuously in the second half of 2015 to solve this tech-nical problem. Acting upon the instructions from the supplier, the Agency required from RDC verification of all parts of DVB-T2 system, and after that reconfiguration of DVB-T2 gateway, which did not result in the elimination of the shortcomings identified in this measuring instrument. Even after extensive testing the problem was not eliminated and in line with the conclusions of the meeting held on 17 November 2015 attended by the representatives of the Agency and ROHDE & SCHWARZ ™ Österreich G.m.b.H, at the end of 2015 another ETL device was delivered. This device demodu-lated without any problems the transport stream DVB-T2 signals from the ether and the supplier ROHDE & SCHWARZ ™ Österreich G.m.b.H undertook the obligation to deliver a new ETL device with all modules and options that the Agency purchased.

Upgrading of the equipment and software for digital mobile control and measuring station

At the end of 2013, the negotiating process was successfully concluded without prior publication of a invitation to public bidding No 1/2013 for upgrading the control-measuring equipment

8


and software for Digital mobile control and measuring station (hereinafter: DMKMS). On 24 December 2013 the Agency signed the Contract with supplier Rohde & Schwarz Österreich GmbH (Representative Office Belgrade). The price of the contracted procurement was € 52,681.30 with the delivery within 90 days after signing of the contract.

The procedure envisaged upgrading that includes an update of the existing version of control-measuring software packages ROMES of the latest versions. In addition, the acquisition and installation of new measuring mobile terminals with appropriate antennas was the subject of public bidding, as well as changes in the chipset (from Nokia to Qualcomm), that will further facilitate the measurement of HSPA + and LTE parameters, the quality of speech by POLQA standard (for 2 mobile terminals) and values of the parameters of quality of data services, and will be compatible with the aforementioned software, radio scanner of the manufacturer Rohde & Schwarz, type TSMQ,and current configuration of DMKMS.

After the delivery and installation of the equipment and software in mid 2014, the Department determined that one part of the measuring system DMKMS was not sufficiently stable in work and in second part of the year 2014 in communication with the supplier intensive actions were taken to resolve the spotted problem. As the problem was not resolved at the end of 2014, the supplier internally reorganized its responsibility and further resolution of this problem was undertaken by the Representative Office in Ljubljana from the Office in Belgrade.

Given the complexity of the problem, and the fact that the con-tract predicted the corresponding adaptation of the measuring vehicle DMKMS (Renault Trafic Passenger 2.5 dCi), after the previous detailed technical consultations with the supplier, in early 2015 the authorized representatives of Agency and the supplier signed in GKMC the protocol document which defined the deadlines for bringing DMKMS into a fully functional state and the details regarding the adaptation of the vehicle. Consequently, DMKMS together with MKMS was taken on 27 January 2015 to Germany to the supplier’s factory centre in Memmingen for further action in terms of the equipment and software, while the adaptation of the vehicle were assigned to the authorized service in Slovenia.

On 30 March 2015 DMKMS was delivered back to Montenegro to GKMC. Immediately after it was returned, the official protocol acceptance test - SAT was conducted together with the supplier in the following two days. On 1 April 2015 the protocol document was signed by the authorized representatives of the Agency and the supplier. Apart from some minor shortcomings in terms of the mechanical antenna adapters for which the supplier had undertaken the obligation to eliminate them in the most recent period it was stated that everything else was done in accordance with the agreed. This protocol defines the obligation of the experts of the Agency to conduct four-day extensive testing in real conditions in the following month which would be the basis for the completion of this public procurement procedure. The observed shortcomings regarding the antenna adapters were eliminated in mid-April, which was noted in the protocol report signed by the authorized representatives of the Agencies and suppliers on 30 April 2015.

In accordance with the conclusions of the meeting held on 2 July 2015 attended by the authorized representatives of the Agency and ROHDE & SCHWARZ ™ Österreich G.m.b.H, in early July 2015 the existing versions of the control-measuring software packages ROMES were updated to the then latest version 4.85. Also in accordance with the agreed in early August 2015 mobile

measurement terminals SAMSUNG ™ S3 were send to upgrade by the QUALIPOC ™ application. This upgrade was done and terminals were returned and re-installed in DMKMS at end of September 2015.

In accordance with the previously signed protocol with the supplier, in the second half of the year 2015 the Agency experts conducted extensive testing of the upgraded and adapted DMKMS in real conditions when it was found that all the noted shortcomings were removed.

Calibration, repair and regular maintenance of control-measuring equipment and software system

On 25 December 2014 the Agency published a call for public bidding in the public procurement procedure No. 7/2014 for the second time. The subject of this procedure for which were allocated funds were in the amount of €35,000.00 was the procurement of services of calibration, repairs and regular maintenance of the control and measuring equipment and the system software.

Public opening of bids was carried out on 2 February 2015 when it was determined that the bidder in this public bidding procedure was TMN Systems d.o.o from Podgorica as a daughter company of S-TMM Systems d.o.o. from Ljubljana which is authorized to service ROHDE & SCHWARZ equipment and software. After the verification, assessment and evaluation of the bid submitted, the tender commission evaluated it correct, after which a contract on the provision of services was signed with the bidder with the agreed total price in the amount of €34,510.00. The contractor undertook the obligation to provide services in the period of one year from the date of signing the contract.

In this regard, in the second half of 2015 individual contractual services were delivered including:

- manufacturer’s repair and calibration of the monitoring receiver of the manufacturer ROHDE & SCHWARZ ™, model ESMB which was purchased in 2005, which is normally installed in DUKMS Pljevlja,

- Regular annual check of the control-measuring equip-ment and software in GKMC,

- Regular annual check of the control-measuring equip-ment and software in RKMC,

- Regular annual check of the control-measuring equip-ment and software in DUKMS Pljevlja,

- Regular annual check of the control-measuring equip-ment and software in DUKMS Rožaje,

- Repair of two active omnidirectional antenna of the manufacturer ROHDE & SCHWARZ ™ model HE309,

- Repair of power protection of the antenna switch of the manufacturer ROHDE & SCHWARZ ™ model RD127 installed in RKMC,

- Review and certification of the antenna control unit of the manufacturer ROHDE & SCHWARZ ™ model GB127M installed in DUKMS Kotor,

- Replacement of the antenna adapters and RF cables in the buildings of RKMC, DUKMS Pljevlja and DUKMS Kotor.

The implementation of this public procurement is of great importance for the normal functioning of the system and cali-bration, repair and regular maintenance of the control-measuring equipment and software of the system, which can break down during the regular work or due to years of work due to which they begin to deviate from the declared manufacturing values of their individual parameters.


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Remotely managed control-measuring station DUKMS Kotor

A complete installation of the antenna system at DUKMS Kotor was completed in late 2014. In accordance with provisions of the Service Provision Agreement, signed by the Agency and the Radio Broadcasting Center d.o.o. (hereinafter: RDC) on 11 February 2015 the Agency addressed RDC in the official request asking the activation of the services of telecommunication connections of the DUKMS facility Kotor with the rest of the system.

As previously stated, the realization of the public procurement No. 15/2014 did not reflect only on the existing MKMS and the improved possibilities of monitoring and signal direction finding, but also the newly DUKMS Kotor. With such a rational technical and economic approach a public procurement procedure provid-ed the necessary technological improvement and adaptation of existing MKMS and by using the previously purchased equipment at the same time the missing equipment and software for the new DUKMS in Kotor was provided.

In mid-February 2015, the equipment and software that had been previously used in MKMS were transported which from the techno-economic aspects could be fully used in a quality manner for this DUKMS. Within the previously mentioned public procurement No. 1/2014, a passive omnidirectional antenna for DUKMS Kotor was purchased. In addition to the agreed assistance of the authorized service support of the supplier, all control-measuring equipment and software were installed in DUKMS Kotor in mid-April 2015.

The actual state was recorded stated by the Protocol of Ac-ceptance on Site (SAT) signed by the authorized representative of the Agency and the representatives of the supplier. On this occasion it was found and recorded in a written document that the delivered polarization rotator was not in use, and that the supplier undertook the obligation to replace it with a new one as soon as possible, which was done by 18 May 2015.

In mid-June 2015 RDC installed new equipment for radio-relay link Trojica - Luštica bz which this DUKMS was linked to the RDC transmission system. In early July 2015, experts of the Agency completed the initiated configuration and testing of this tele-communications links, after which the station was connected to a single system of remote control and monitoring of the RF spectrum and thus become fully functional.

Purchase of physical and technical protection of the building of GKMC with access road

According to the Financial Plan and Public Procurement Plan for 2015, in mid June 2015 the public procurement procedure of the services of professional security of the facility (physical and technical protection of the facility of GKMC and access road in Dajbabska Gora) No. 14/2015 was initiated. The allocated financial assets were in the amount of €30,000.00.

For these purposes, the appointed commission for the opening and evaluation of bids in this tender prepared the tender docu-ments and invitation for taking part in the bidding and the text of the invitation was published on 11 September 2015. The public opening of bids was conducted on 21 October 2015. The Tender Commission completed the final examination on 18 November 2015 as well as verification, assessment and evaluation of the bids received and the bid of the bidder DON SECURITY d.o.o. Nikšić was evaluated as the most favourable.

On 19 November 2015 the decision on accepting the bid of the aforementioned bidder was issued. However, one of the partici-

pants in the public procurement procedure - Security & Protection Consulting d.o.o. Podgorica on 1 December 2015 via the client filed a complaint to the State Commission for Control of Public Procurement Procedures. On 7 December 2015 the Agency rejected the lodged complaint and in accordance with the law forwarded the complete documentation to the State Commission for Control of Public Procurement Procedure. In this way, the further course of the process of this public procurement was stopped until the issuance of the decision of the State Commission.

Procurement of the services of telecommunications connections of the control-measuring stations of the system

According to the Financial Plan and the Public Procurement Plan for 2015, on 30 April 2015, the procedure of public procurement of telecommunications connectivity of control-measuring stations of the system for control and monitoring of the radio-frequency spectrum of Montenegro No. 8/2015 was launched. The allocated funds were in the amount of €40,000.00.

For these purposes, the appointed commission for the opening and evaluation of bids in this tender prepared the tender documents and invitation for taking part in the bidding and the text of the invitation was published on 9 November 2015. The public opening of bids was conducted on 17 December 2015. The Tender Commis-sion completed the final examination on 13 January 2016 as well as verification, assessment and evaluation of the bids received and the bid of the bidder Radio Broadcasting Centre d.o.o. Podgorica was evaluated as the most favourable. On 14 January 2016 a decision on accepting the bid of the aforementioned bidder was issued and after the completion of the deadline for the launching of the appeal procedure the Agency signed a contract on the provision of the aforementioned services with the selected bidder.

Purchase of real-time spectrum analyzers

According to the Financial Plan and the Public Procurement Plan for 2015, on 11 November 2015, a decision on launching the procedure of public procurement of real-time spectrum analyzer number 6/2015 was issued. The allocated funds were in the amount of € 155,000.00.

For these purposes, a Commission for opening and evaluation of bids in this tender prepared the tender documents and invitation to take part in the public bidding and text of the invitation was published on 25 December 2015. Public opening of bids was carried out on 3 February 2016, after which the procedure of evaluation of bids continued.

Purchase of the transmission system (“backpack”) for the control of the signal of GSM/UMTS/LTE networks

According to the Financial Plan and the Public Procurement Plan for 2015, on 19 June 2015, a decision on launching the procedure of public procurement of the transmission system (“backpack”) for the control of the signal GSM/UMTS/LTE network No. 7/2015 was issued. The allocated funds for this public procurement were in the amount of €60,000.00.

For these purposes, a Commission for opening and evaluation of bids in this tender prepared the tender documents and invitation to take part in the public bidding and text of the invitation was published on 23 December 2015. Public opening of bids was carried out on 10 February 2016, after which the procedure of evaluation of bids continued.

8


Purchase of antennas for the frequency range 3 GHz - 43 GHz

According to the Financial Plan and the Public Procurement Plan for 2015, on 19 June 2015, a decision on launching the procedure of public procurement of the antenna for the frequency range 3 GHz -43 GHz No. 11/2015. The allocated funds for this public procurement were in the amount of €20,000.00.

For these purposes, a Commission for opening and evaluation of bids in this tender prepared the tender documents and invitation to take part in the public bidding and text of the invitation was published on 23 December 2015. Public opening of bids was carried out on 2 February 2016. Since no bid was submitted in the prescribed period of time, the Agency issued a decision on termination of the public procedure of this procurement. This public procurement will be launched again in 2016.

Purchase of the portable DVB-T2 receiver

According to the Financial Plan and the Public Procurement Plan for 2015, on 30 April 2015, a decision on launching the procedure of public procurement of DVB-T2 portable receiver No. 12/2015. The allocated funds for this public procurement were in the amount of €15,000.00.

For these purposes, a Commission for opening and evaluation of bids in this tender prepared the tender documents and invitation to take part in the public bidding and text of the invitation was published on 24 December 2015. Public opening of bids was carried out on 1 February 2016. Since no bid was submitted in the prescribed period of time, the Agency issued a decision on termination of the public procedure of this procurement. This public procurement will be launched again in 2016.

Purchase of the service of development of the of the project of seasonal network for covering the urban area of the Capital of Podgorica for the purpose of control and monitoring of radio-frequency spectrum in the 6 GHz band

According to the Financial Plan and the Public Procurement Plan for 2015, on 18 December 2015 a text of the invitation for the procedure of public procurement of the service for the devel-opment of the project of seasonal network for covering urban areas of the Capital of Podgorica for the purposes of control and monitoring of radio-frequency spectrum in the 6GHz band No. 28/2015. The allocated funds for this public procurement were in the amount of €5,000.00.

The public opening of bids was conducted on 20 January 2016. Two bids were submitted and the appointed Commission continued with the activities related to the procedure of evaluation of bids and the selection of the most favourable bidder.

Purchase of the services of surveillance of alarm devices in the facilities of the System for Control and Monitoring of RF Spectrum

According to the Financial Plan and the Public Procurement Plan for 2015, on 10 December 2015, a decision on launching the procedure of public procurement of surveillance of alarm devices in the facilities of the System for control and monitoring of RF Spectrum No. 42/2015. The allocated funds for this public procurement were in the amount of €1,500.00.

For these purposes, the Public Procurement Officer prepared the tender documents and invitation for public bidding under

this call and text of the invitation was published on 25 Decem-ber 2015. Public opening of bids was carried out on 3 February 2016 and at the time of drafting the Report underway were the activities related to the procedure of evaluation of bids and the selection of the best bidder.

8.6. Switchover from analogue to digital broadcasting systems

Starting from the basic principles of radio-frequency spectrum in order to achieve the maximum efficiency of the use of limited resources, at the request of the Agency for Electronic Media, according to the Law on Electronic Media, the Agency, for the purpose of calling a public competition, prepared and submit-ted to the aforementioned regulator data on the availability of radio-frequencies intended for digital broadcasting which define two networks with national coverage and available radio-fre-quencies for networks with local coverage in the territories of the local governments.

Pursuant to Article 7 of the Law on Digital Broadcasting the Agency adopted the Decision on sharing the capacity of mul-tiplex DVB-T2 network with the national coverage (MUX 2), as well as the Decision on sharing the capacity multiplex DVB-T2 networks with the local coverage. The aforementioned Decisions designate the overall capacity of the multiplex for the provision of audiovisual media services.

Given that the public competition announced by the Agency for Electronic Media no interest was expressed in DVB-T2 network with the national coverage, there are still available radio-fre-quency resources for the realization of two networks with the national coverage.

In terms of public competition for the realization of multiplex with the local coverage, a business organization “Peace & Teuta” d.o.o. from Ulcinj expressed interest in covering the municipality of Ulcinj and the locations of Možura, Pinješ, Old Town and Fran-skanjel (MUX OJ L1, ch 33). The bid of this entity was accepted and the multiplex operator is obliged to provide access to the facilities for local public services in the municipality of Ulcinj, as well as the coverage of 85% of the population of that local government and service zones of the specified locations, at the latest by 17 June 2015, that is, until the final shutdown of the analogue terrestrial systems for television signal broadcasting. The approval for access to facilities MUX OJ L1, the Agency for Electronic Media issued to the commercial broadcasters TV Boin and TV Teuta. The remaining capacity of this multiplex, the operator can provide services of the receipt of the programme contents to end users on demand as well as the services for which the fee is paid.

Bearing in mind that no interest was shown in the local coverage in other municipalities of Montenegro in the first public com-petition, the Agency for Electronic Media called another public competition again for granting rights to provide AVM services on demand via the DVB-T2 networks with local coverage in the following municipalities or service zones: Bar (ch 33), Berane, Petnjica and Andrijevica (ch 33); Bijelo Polje (ch 40); Budva (ch 46), Cetinje (ch 23), Kolašin and Mojkovac (ch 44); Kotor (ch 23); Nikšić and Plužine (ch 23); Plav and Gusinje (ch 38); Pljevlja (ch 26); Podgorica and Danilovgrad (21); Rožaje (ch 45); Šavnik (ch 22); Tivat (ch 39) and Žabljak (ch 47). In this public competition the offer of the company “Broadcasting Center” d.o.o. Podgorica was accepted.


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After acquiring the rights to provide AVM services on demand, the Agency informed the companies “Broadcasting Center” d.o.o. Podgorica and “Mir & Teuta” d.o.o. Ulcinj on the obligations of these entities as operators of local networks come from the Law on Electronic Communications and the Law on Digital Radio-Broadcasting. This primarily refers to the procedure of issuing licenses for the usage of the radio-frequencies in question.

According to the Law on Digital Broadcasting on 17 June 2015 the analogue television in Montenegro was officially switched off.

Article 18 of the Law on Digital Broadcasting stipulates the obli-gation of the Agency, within three months from the end of the transitional period, and analogue switch-off, to carry out market analysis of the services provided by a company “Broadcasting Center” d.o.o. Podgorica. In this respect, it is emphasized that the Agency carried out a public consultation process in the period 5 May - 5 June 2015 regarding the Draft Document on the conducted Three Criteria Test in the markets determined by the Decision on initiating the second round of the analysis of the relevant market of services which are subject to verification of the Three Criteria Test. In the case of wholesale markets trans-mission and emission of radio broadcasting signals, the Agency proved in the Three Criteria Test that conditions of the Three Criteria Test were not cumulatively fulfilled, and that the market was not susceptible to ex-ante regulation. Considering the fact that that digital broadcasting systems were encompassed by the questionnaire which was sent to operators and by further analyses, the same conclusion related to this area by which the Agency at the same time implemented its obligations specified in Article 18 of the Law on Digital Broadcasting.

8.7. Study on the possibilities of introduction of digital radio in Montenegro

In order to identify radio- frequency spectrum necessary for the introduction and development of digital radio, and taking into account the development and application of new technologies in the field of digital terrestrial broadcasting in general, the Agency in 2015 produced a Study on the possibilities of introduction of digital radio in Montenegro. The Study primarily deals with technical aspects of digitization of radio, possible technology and provides specific guidelines for the introduction of digital broadcasting of radio signals.

Digital sound broadcasting technologies are spread across differ-ent platforms, such as terrestrial networks, satellite networks and the Internet. Therefore the Study shows the basic characteristics of different platforms, highlighting the limitations of analogue radio broadcasting via terrestrial network of transmitters and advantages of digital system while taking into account the fact that terrestrial systems are dominant and in Montenegro the most important platform in terms of transmission of audio signals to the user. The Study provides an overview of radio stations, or all networks for broadcasting of radio at the national, regional and local level, then an overview of the regulatory framework in Montenegro, as well as an overview of the development of digital radio in the world. Guidelines for the selection of technologies for digital radio broadcasting in the terrestrial network are intended to stimulate further activities in terms of introduction and development of these systems in Montene-

gro. The availability of radio-frequency spectrum and possible strategies for transition to digital broadcasting of radio signals was separately considered.

The Study presents findings for technologies DAB +, DVB-T2 and DRM, as possible solutions for broadcasting of digital radio in Montenegro. Among these, DAB + technology stands out as most favourable. The introduction of this technology does not require shutting down conventional FM radio system, and it can be assumed that the digital transmission of radio signals in Montenegro will start solely as a market driven innovation for the purpose of the provision of audiovisual services to end users via terrestrial network of transmitters as a dominant platform. Listeners are still focused on traditional forms of following radio programmes via their radio receivers in their homes, vehicles or via portable radio devices. Therefore DAB + technology in Montenegro from the aspect of consumers is acceptable and natural, which is essential for the development of this platform. In this context it is possible to achieve the enviable substitivity of the service of providing radio contents which itself provides the development of a dynamic and competitive market.

The Allocation Plan of radio-frequency spectrum in Montenegro foresees the band 174-240 MHz for the introduction of digital radio (T-DAB / DAB + technology). The Allotment Plan of ra-dio-frequencies for digital terrestrial broadcasting establishes allotment of the 174-230 MHz band to radio-frequency channels, detailed conditions, manner of use and method of allotment of radio-frequencies for T-DAB / DAB +, in accordance with the international Agreement Geneva 06 (GE06). For the purpose of planning and implementation of these systems, Montenegro is divided into two geographical areas or allotment zones. The coverage of each zone can be achieved by building a network of Single Frequency Transmitter, which is the most favourable and obligatory solution wherever possible in terms of synchronization. For each allotment area 3 radio-frequency blocks in the band 174-230 MHz, the width of the channel 1536 kHz are foreseen.

Regardless of the existing and future technologies of broadcasting of audio contents that will prevail primarily in the European market where Montenegro belongs, and ultimately the world, bearing in mind the fact that global harmonization of technologies is a general trend in the whole field of electronic communications especially for the systems that are intended for commercial use and general use in everyday life, as radio is, it is considered that the further development and promotion of the open platform of digital and hybrid radio is crucial in the long run.

8.8. Public bidding for issuing the approval for the use of radio-frequencies in the bands 800 MHz, 900 MHz, 1800 MHz, 2 GHz and 2,6 GHz for the implementation of public mobile electronic communications networks

After the completion of switchover from analogue to digital TV broadcasting in June 2015, the band 790-862 MHz (800 MHz band), as part of the digital dividend spectrum, in Montenegro remained free for the implementation of TRA-ECS system. By

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the adoption of the appropriate Allotment Plan of radio- fre-quencies in this band in mid-2014, the first big step in the use of the bands for mobile communications networks was made. In 2014 the Allotment Plans of radio-frequencies in the bands 900 MHz, 1800 MHz and 2 GHz were issued which are currently used for mobile networks, and in early 2015 frequencies from the free band 2.6 GHz were included. This rounded the regulatory and technical framework for the implementation of the GSM/DCS1800 and TRA-ECS systems in these bands on a technolog-ically neutral basis.

In order to define a number of aspects regarding the allotment of radio-frequencies in the band 800 MHz, after conducting an open public procurement procedure, the Agency commissioned from the Faculty of Electrical Engineering, University of Montenegro in Podgorica a Study on the manner of allotment of radio-frequen-cies in the band 790-862 MHz. Three scenarios were analysed in the Study: the allotment of radio-frequencies only in the band 800MHz, simultaneous allotment of radio- frequencies in the bands 800 MHz and 2.6 GHz, and simultaneous allotment of radio-frequencies in the bands 800 MHz and 2.6 GHz, together with radio-frequencies in the bands 900 MHz, 1800 MHz and 2.6 GHz, for which the approvals expire at the beginning of 2017. The Study also gives appropriate recommendations.

Given the fact that the approvals for the use of radio-frequencies in the bands 900MHz and 1800MHz issued to Telenor and Telekom expire in January 2017 as well as the approvals for the use part of the spectrum in the band 2 GHz, and having in mind the fact that the Agency has a legal obligation in the period of at least six months before the expiration of the period of validity of the approval for the use of radio-frequencies for the implementation of public electronic communications networks, ex officio or at the request of the radio-frequency user, to initiate the public bidding procedure for a new allotment of these radio frequencies, the Agency accepted the recommendations given in the Study and evaluated that it was reasonable and rational to assign the available radio-frequencies in the bands 900 MHz, 1800 MHz and 2 GHz, together with radio-frequencies in free bands 800 MHz and 2.6 GHz in one procedure of public bidding. It was decided to conduct a public bidding as the spectrum auction in CCA (Combinatorial “Clock” Auction) format.

In order to create a stable and predictable regulatory environ-ment for the development of mobile communications networks and keep the principle of non-discrimination, it was decided that the subject of the award are the radio-frequencies for which approvals expire in 2022 (radio-frequencies in the bands 900 MHz, 1800 MHz and 2 GHz awarded in 2007 to M:tel and radio-frequencies in the band 2 GHz that were awarded in that year to other operators), which ensures that all approvals of all mobile operators are valid in the following 15 years. The subject of the public bidding is the award of the approvals for exclusive use in the entire territory of Montenegro of the total of 625 MHz of radio- frequency spectrum (2x270 MHz paired and 85 MHz unpaired) in the bands 800 MHz, 900 MHz, 1800 MHz, 2 GHz and 2.6 GHz for the implementation of public mobile electronic communications networks.

Taking into account characteristics and the current state in the market of public electronic communications networks and services in Montenegro, the Agency in relation to the upcoming process of awarding the spectrum set the following objectives:

- preserving/promoting competition in the market of electronic communications services in Montenegro,

including the possibility of entry of a new mobile operator;

- creating conditions for the further smooth develop-ment of mobile electronic communications networks and services;

- contribution to achieving the goals of the 2012-2016Strat-egy for Information Society Development;

- enabling maximum revenues for the budget of Mon-tenegro from one-time fees for issuing the approvals for the use of radio-frequencies.

Satisfying these objectives of the spectrum awarding should produce benefits for the following entities:

- end users - through the increase in availability and objective quality of mobile electronic communications services provided on the market and competitive basis;

- mobile operators - through the creation of the condi-tions for stable and sustainable business;

- society as a whole - through the improvement of the overall ICT environment for citizens and businesses;

- state of Montenegro - through the revenues from the public bidding which reflect the real value of the spectrum in the Montenegrin market.

In order to define the key commitments in terms of awarding spectrum for the implementation of public mobile electronic communications networks, in the first half of 2015 the Agency had preliminary consultations with mobile operators in Mon-tenegro regarding the strategic issues involving the subject of public bidding, the method of public bidding and basic Auction rules. Also, in mid-2015 a workshop with experts of the Slovenian regulatory body was organized who run the spectrum auction in Slovenia in which experiences on all the essential elements of the procedure were exchanged. In September 2015 the open public procurement procedure for the provision of consulting services for the preparation and implementation of the public bidding procedure for the issuance of the approvals for the use of radio-frequencies which include the service of the use of a specialized software for the implementation of electronic spectrum auction was completed. The best bid was provided by the company SPECURA from Austria, who participated in the preparation and implementation of similar auctions of spectrum for mobile networks in Austria, Slovakia and the Czech Republic.

In order to prepare and conduct the public bidding procedure for issuing the approval for the use of available radio-frequencies in the band 800 MHz, 900 MHz, 1800 MHz, 2 GHz and 2.6 GHz for the implementation of public mobile electronic communications networks in an objective, transparent, non-discriminatory and a proportional manner, the Agency prepared the Information Document on the procedure of awarding radio-frequencies in the bands 800 MHz, 900 MHz, 1800 MHz, 2 GHz and 2.6 GHz for the implementation of public mobile electronic commu-nications networks. The document presented the strategy for awarding radio-frequencies, as well as the rules and procedures of the upcoming public bidding procedure. The Information Document was subject to the public consultations in February 2016. According to the general dynamics of the activities it was planned to launch the public bidding procedure in April 2016, and electronic spectrum auction was planned to be conducted in June 2016 with the ultimate aim to issue the appropriate ap-provals for the use of radio-frequencies by the end of July 2016.

Taking into account the initial prices of individual categories of radio-frequency blocks that are the subject of the public


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bidding procedure, established by the Ministry for Information Society and Telecommunications, and the number of blocks in each category, the minimum income from one-time fee for the issuance of the approval for the use of radio-frequencies will be €40,028 million, if all blocks are allocated.

8.9. Expert supervision in the area of electronic communications

Pursuant to the Law on Electronic Communications, supervision over the activities of operators registered with the Agency for Electronic Communications and Postal Services shall be performed by the Agency through the supervisor for electronic communica-tions. Supervisors for electronic communications shall perform the activities of supervision in compliance with the Law on Electronic Communications and the Law on Inspection Control.

Regular expert controls over the operators registered with the Agency and over the entities to which the Agency had issued authorizations for the use of radio frequencies were carried out in compliance with the 2014 Plan of Electronic Communications Supervision, which was approved by the Agency’s Council.

Extraordinary controls were carried out, as appropriate, in the following cases:

- when radio stations caused interference with the op-eration of other radio stations,

- when the reports of the RF spectrum control and monitoring indicated the occurrence of irregularities in the work of radio stations,

- when an operator, user or another entity submitted a reasonable request for carrying out the control.

Control inspections were conducted as appropriate, i.e. in case when it was necessary to check whether the operations were carried out in compliance with the decision of the supervisor for electronic communications, or decisions and orders issued by the Agency.

When conducting expert supervision in compliance with the Law on Inspection Supervision, supervisors primarily acted in a preventive way. They pointed out the identified irregularities and set a deadline for their elimination. Also, in a number of cases misdemeanour warrants were issued to a legal entity and to the responsible person in the legal entity for violation of the provisions of the Law.

In 2015, there was a total of 196 inspection controls conducted by which the Supervision Plan for this period was fully implement-ed. Of these, 162 were planned controls, 11 were conducted on request for expert supervision, 16 controls were made ex officio and 5 controls were made under the previously ordered actions.

80.0%3.6%

14.1%

2.3%

Planned controls

On request

Ex-officio

Control

A comparative overview of the number of carried out expert supervisions in the period 2011-2015 is given in the Table below.

Year Planned controls Extraordinary controls Total controls

2011 212 51 263

2012 173 61 234

2013 203 50 253

2014 176 44 220

2015 162 34 196

0

50

100

150

200

250

300

2011 2012 2013 2014 2015

Extraordinary controls

Planned controls

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Inspection records were made about carried out controls. Authorized representatives of the controlled entities did not have any objections to the inspection records. The copies of the records were delivered to authorized representatives of the controlled entities and evidence was duly kept in accordance with the Law on inspection control.

In 53 cases, the elimination of identified irregularities was or-dered. In 46 of these cases the elimination of irregularities was ordered by the inspection records, while in 7 cases it was done by a decision on the inspection records. Compared to the total number of carried out controls, the percentage of irregularities identified in 2015 was 27%. Identified irregularities referred to:

- non-compliance of operating system parameters with issued authorisations for the use of radio frequencies (change of frequency, frequency deviation, antenna system, inter-modulation products, etc.),

- lack of the approvals for the use of frequencies for radio-relay connections,

- lack of the approval of the Agency Council for general terms and conditions for the use of services and standard subscriber contracts.

- non-compliance with provision on public availability of prices, tariffs and general conditions for the use of public electronic communication services.

- lack of a certificate for electrical installation and light-ning protection of a facility ,

- failure to take measures in order to provide security of electronic communications networks and services.

The table below contains a comparative overview of irregulari-ties identified by supervision controls in the period 2011 - 2015.

YearNumber of conducted

controls

Number of identified

irregularities

Percentage of identified irregularities

2011 263 106 40.3%

2012 234 89 38%

2013 253 81 32%

2014 220 60 27.3%

2015 196 53 27%

On the basis of the initiative for the procedures of expert in-spection, the inspection controls were carried out on customers’ requests and on request of the Department for protection of rights and interests of users. The requests were related to irregularities in the monthly bills issued for services rendered, inadequate quality of service, as well as the lack of service delivery. In this regard, the following inspection controls were carried out:

- nine controls were performed with Crnogorski Telekom, where five referred to irregularities in monthly bills and four to inadequate quality of service and inability to have network access. In regard with irregularities in monthly bills, irregularities were detected in three bills, while in other two cases it was found that the operator’s billing was correct. Regarding the com-plaints about inadequate quality of service and lack of network access, the control found irregularities in two cases, while in two cases there were no grounds for complaints. The removal of identified irregularities was ordered in the inspection records, which was done within the determined deadline.

- Complaints of Telenor services users referred to incor-rectly calculated penalties at the event of termination

of contract. Expert supervision determined that the operator did not apply provisions of the law in the ap-propriate manner in the event of contract termination. For determined irregularities an order was issued in the record on the elimination of irregularities, which was implemented within the prescribed deadline.

- At the request of the operator Wireless Montenegro, which reported the existence of interference in the facility in Luštica, which comes from the broadcasters. The expert supervision did not determine the existence of interference.

- Expert supervision was conducted with the operator Telemach d.o.o. upon the user report concerning the inability to transfer a number from the network of the Montenegrin Telekom. No irregularities were found.

- Two expert supervisions were conducted with the operator Total TV Montenegro d.o.o. upon user report concerning the inability to use services of distribution of RiTV programmes to end users. No irregularities were found.

- An expert supervision was conducted with the oper-ator M-cable d.o.o. conducted upon the user report concerning the inability of the termination of user contract. No irregularities were found.

8.10. Data submission and giving opinion for spatial planning documents

The Law on Electronic Communications in Article 40 stipulates the obligation of the Agency and the operator to provide at the request of the responsible person for preparatory activities of drafting and adoption of the planning document, the information on the existing and planned electronic communications networks, electronic communications infrastructure and associated facilities in the zone of coverage of the planning document. The same Article stipulates the obligation of the Agency to give the opinion on the compliance of planning electronic communications net-works, electronic communications infrastructure and associated facilities in the preparation of the planning document. According to Article 38 of the Law on Spatial Planning and Construction of Structures (Official Gazette of Montenegro, 51/08, 40/10, 34/11, 47/11, 35/13, 39/13 and 33/14), Agency is obliged as a legal entity responsible for telecommunications to provide available infor-mation at the request of the responsible person for preparatory activities as well as their suggestions and opinions necessary for the preparation of planning documents.

Consequently the person responsible for preparatory activities of drafting and adoption of planning documents, the Ministry of Sustainable Development and Tourism and local governments address the Agency with the request for the submission of data and recommendations. In this regard in 2015 the Agency submitted 42 letters with relevant information and recommendations for the development of spatial planning documents. The information and recommendations were submitted to the local self-governments and planners in 33 cases as follows: Budva (2), Cetinje (1) Herceg Novi (17), Mojkovac (2), Pljevlja (3), Tivat (6), Ulcinj (1) and Dukley Marina (1). In other cases, information and recommendations were submitted to the following entities: the Ministry for Information Society and Telecommunications (1) and the Ministry of Sustainable Development and Tourism (8). In 2015 the Agency submitted 20% more letters with information and recommendations than in 2014.

Also, the persons responsible for preparatory activities (local self-government bodies and the Ministry of Sustainable Devel-


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opment and Tourism), addressed the Agency for the opinion on the draft of submitted spatial planning documents. The Agency in 2015 issued their opinion on 81 draft spatial planning documents. Local self-government units were provided opinions to 14 draft as follows: Bar (2), Herceg Novi (7), Tivat (3), Ulcinj (2), while the Ministry of Sustainable Development and Tourism was delivered opinions to 67 draft spatial planning documents. In 2015, the Agency received and gave 12% less opinions to spatial planning documents than in 2014.

Opinions to draft planning documents of the Agency are based on the Law on Electronic Communications and regulations adopted thereunder, the 2012-2016 Strategy for Information Society Development - Montenegro digital society, and new trends represented in the field of electronic communications. By giving opinions to draft planning documents, the Agency strives by using modern technological solutions to create preconditions for the following:

further and rapid development of the ICT sector, pri-marily broadband,

stimulate interest and attract investment in the ICT sector,

promotion of competition in the electronic commu-nications,

use of available ICT tools and services in everyday life and business by citizens and businesses.

In this way, the Agency issues guidelines that are the basis of developing a strong and generally available infrastructure, which allows the shared use by multiple operators in the provision of broadband (broadband) connection, high speed and the use of modern and demanding service to all households and businesses under the same conditions.

When providing information and recommendations as well as opinions to the planning documents, the Agency used data on electronic communication infrastructure, which operators submit-ted in accordance with Article 55 of the LEC and the Rulebook on the type, mode of delivery and publication of data on electronic communications infrastructure and associated facilities which may be of common interest (Official Gazette of Montenegro, 23/14), as well as data on the number of users of electronic com-munications services (fixed telephony, fixed broadband internet access, fixed-wireless broadband internet access, mobile electronic communications and distribution of AVM content). Also, the Agency points to the importance of adequate assessment of the level of development of electronic communications within the scope of the planning document, in relation to the average level of development of electronic communications in Montenegro.

The spatial planning documents submitted to the Agency for an opinion clearly show that they are of higher quality and more comprehensive when it comes to electronic communications compared to the same prior period. This indicates that persons who were working on drafting the spatial planning documents complied with recommendations received from the Agency and that the Agency is giving a major contribution to the quality of the preparation of spatial planning documents.

8.11. The issuance of technical requirements for the construction of residential and office buildings

The Agency for Electronic Communications and Postal Services issues based on the request the requirements for the construction of facilities in accordance with provisions of the Law amending the Law on Electronic Communications (Official Gazette of

Montenegro, 32/11) and the Law amending the Law on Spatial Development and Construction of Structures (Official Gazette of Montenegro, 34/11). By the adoption of the new Law on Electronic Communications (Official Gazette of Montenegro, 40/13), provisions of Article 26 paragraphs 4 and 5 the old Law on Electronic Communications (Official Gazette of Montenegro, 50/08, 70/09, 49/10, 32/11 and 6/13) remained in force which referred to the issuance of the requirements. In accordance with Articles 203 and 205 of the Law on Electronic Communications (Official Gazette of Montenegro, 40/13) the aforementioned provisions applied until the effective date of the Rulebook on technical and other requirements for design, construction and use of electronic communications networks, electronic com-munications infrastructure and associated facilities in buildings (Official Gazette of Montenegro, 41/15). This Rulebook was published in the Official Gazette of Montenegro on 28 July 2015 and its entry into force cancelled the obligation of the Agency to issue the respective requirements. Since regardless of the adoption of the aforementioned regulation submitted to the Agency requirements for the issuance of technical conditions were still submitted, the Agency issued the requirements by the end of October 2015, when, after having informed the authorities of the local self-governments - the Secretariats responsible for spatial planning and construction of structures and the Ministry of Sustainable Development and Tourism, stopped issuing them.

Pursuant to Article 26 paragraph 4 of the Law on Electronic Communications (Official Gazette of Montenegro, 50/08, 70/09, 49/10, 32/11), the Agency shall determine the requirements for building of subscriber communication cables, cables for cable distribution and/or joint antenna systems. In paragraph 5 of this Article it is stated that these requirements shall be determined with reimbursement of actual costs, which will be established by the Agency. Based on recommendation of the Ministry of Sustainable Development and Tourism, and with a view of reducing costs of obtaining building permits, the Agency issues the requirements from its scope of competencies free of charge.

A request for issuing requirements for building structures is submitted to the Agency by the authorities of local self-gov-ernments – Secretariats responsible for the activities on spatial development and construction of structures, and the Ministry of Sustainable Development and Tourism. The Ministry of Sus-tainable Development and Tourism submitted the requests for issuing the requirements for the construction or reconstruction of buildings in the following municipalities: Bar, Berane, Bijelo Polje, Budva, Cetinje, Danilovgrad, Herceg Novi, Kolašin, Kotor, Mojkovac, Nikšić, Plav, Plužine, Pljevlja, Podgorica, Rožaje, Tivat, Ulcinj and Žabljak. The requests from the municipalities of Bar, Budva, Danilovgrad, Herceg-Novi, Kolašin, Kotor, Mojkovac, Nikšić, Plav, Plužine, Pljevlja, Rožaje, and Žabljak were only submitted through the Ministry of Sustainable Development and Tourism. The municipalities of Andrijevica, Gusinje, Petnjica and Šavnik did not submit any requests for obtaining requirements from the Agency’s scope of responsibilities. In some cases, investors addressed to the Agency with a request for obtaining require-ments for the construction of structures.

According to the new Law amending the Law on Spatial Planning and Construction of Structures (Official Gazette of Montene-gro, 35/13) dated 1 August 2013 the deadline for issuing permits was shortened from 15 to 10 days. Due to shortening of these deadlines, a number of Secretariats responsible for spatial planning and construction of structures addressed the Agency requiring from the Agency to deliver them standard technical requirements, which would be combined with their urban and technical requirements. The Agency delivered uniform - general

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requirements for the design in telecommunications segment (Requirements for building subscriber communication cables, cables for distribution and joint antenna systems in the facil-ities – General and Specific) to the Secretariats in Bar, Budva, Herceg-Novi and Tivat. These requirements were published by the Agency on its website.

In the period from 1 January - 31 December 2015, 245 requests were submitted to the Agency. The requests for issuing require-ments were submitted to the Agency by the following entities:

- the Ministry of Sustainable Development and Tourism - 67 requests;

- the Secretariat for Planning and Land Development, Minicipality of Berane - 1 request;

- the Secretariat for Land Development, Municipality of Bijelo Polje - 5 requests;

- the Secretariat for Planning and Land Development and Environmental Protection of the Historical Capital of Cetinje - 49 requests;

- the Secretariat for Planning, Land Development and Environmental Protection, Capital Podgorica - 28 requests;

- the Secretariat for Land Development and Environ-mental Protection, Municipality of Tivat - 4 requests;

- the Secretariat for Spatial Planning and Sustainable Development, Municipality of Ulcinj - 80 requests, and

- investors with 11 requests.

The Figure below shows the share of the number of cases in 2014 by municipalities expressed in percentages:

The Agency responded to all the submitted requests in due time and electronic communications infrastructure in facilities, for which the Agency had issued technical requirements, should allow the following:

- the use of a large range of services with no need to change fixed cable infrastructure;

- simple use, access and modernization of cable infra-

structure that is not conditioned by the regime of use by individual users;

- free choice of operators for all end-users of the facility;- access to the facility for all operators at the places

envisaged for that purpose, under equal and non-dis-criminatory conditions.

8.12. Postal services customer satisfaction survey

For the purpose of a comprehensive anticipation of developments in the postal services market of Montenegro and the improvement of these services in the future, the Agency hired the agency for public opinion survey “Defacto Consultancy” from Podgorica, which conducted the survey on the views and satisfaction of users of postal services in Montenegro, for individual customers and business sector. This survey was conducted on a sample of 1207 respondents, for individual users and 301 companies within the business sector. The survey was conducted in September 2015, and it referred to the survey on recognition and importance

of postal services, the frequency of their use, the manner of sending postal items, customer satisfaction with the work of postal operators and the prices of services, as well as to the survey of the frequency of use of the Internet, replacing the traditional mail with e-mail and frequency of purchases on the Internet.

From the results of this large-scale study it can be concluded that legal entities find postal services generally more important than the citizens. This was once again confirmed in the responses to questions about the frequency of use of postal services, which showed that legal entities use them more compared to the citizens to a significantly greater extent.

The citizens mostly use the services of money pay-in/pay-out, while businesses mostly use service of sending and receiving letters and registered letters.

However, as for the international traffic, these services are used more often by natural persons, which is confirmed by the fact that natural persons send letters more often compared to businesses by almost a quarter, and in the case of sending postcards and greeting cards by almost one-third.

Certainly, it is important to note here that in both surveys the number of those who use

postal services in domestic and international traffic is very low.

The postal operator used most often by both natural persons and businesses in both cases is Montenegro Post with whose work the largest number of respondents is satisfied.

When it comes to recognition of services, businesses show greater understanding and a greater frequency of use.

According to the index of satisfaction, it was obvious that natural and legal entities for the most part are very satisfied with the offer and the performance of postal services in Montenegro.

Montenegro Post stands out as the operator most favoured by the citizens when it comes to the affordability and simplicity

Share of the number of cases per municipality in 2015 expressed in percentages


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of service, speed, trust and territorial coverage they need. It is similar in business entities. This information is followed by a very often go to the office or to the postal counter, where over a half of the respondents says that they go to the counter at least once a month. This can be added the information that both groups of respondents are satisfied with the prices of services of Montenegro Post.

With the exception of Montenegro Post, there are very few people who use the services of other postal operators. In all replies, referring to the satisfaction of various aspects of services provided by other postal operators, DHL stands out.

Businesses use services of these operators to a somewhat greater extent, but this number is still quite low. Among the operators that stand out in this regard there are DHL, Montenomax, City Express Montenegro and Junior.

There is a greater number of those who use their services that are satisfied than those who are dissatisfied.

When it comes to online services and purchases on the Internet, a surprisingly small number of businesses uses these services. Nearly a quarter of small enterprises, which have 1-9 employees, use no e-mail. On the other hand, more than a third legal entities says that they use the services of electronic banking services, which is almost two and a half times more than the use of this service among the natural persons. Internet commerce is not very popular in both cases.

The complete poll is published on the Agency’s website.

The Agency informed all postal operators which are in the Reg-istry and which are operating in the territory of Montenegro,

that the Survey on the views and satisfaction of postal services users are published on the website of the Agency (individual users and business sector).

At the same time all postal operators were recommended to propose, after analyzing the results of the survey, potentially, new regulatory activities and measures to further improve the market of postal services in Montenegro.

8.13. Development of human resources

According to the Rulebook on work organization and job clas-sification in the Agency for Electronic Communications and Postal Services, which was adopted by the Agency’s Council, the Agency is organized through the work of organizational department, division and unit.

The following organizational units operate within the Agency: - Legal Department- Economic Department- Electronic Networks and Service Department- Radio-communication Department- Postal Operations Department;- Division for Common Affairs, and- Supervision Unit.

Departments and divisions are organized through the internal organizational units – units.

The organizational structure of the Agency is shown in the following Figure.

Supervision Division

Division for relevant market

analysis

Division for Economic

aspects of market regulation

DEPARTMENT FOR ECONOMIC

AFFAIRS

POSTAL SERVICE DEPARTMENT

COUNCIL

EXECUTIVE DIRECTOR

UNIT FOR GENERAL AFFAIRS

Division foradministrative

Affairs

Accounting and Finance Division

Division for Information

Technologies

LEGAL DEPARTMENT

Regulation Division

Division for dispute resolu-tion and users

protection

Division for RF spectrum management

Division for fixed and mobile

radiocommunications

Broadcasting Division

Division for control and monitoring of RF

spectrum

Division for numbering and

addressing

Division for Communications

Service

Division for Networks and Infrastructure

DEPARTMENT FOR ELECTRONIC NET-

WORKS AND SERVICES

RADIOCOMMUNICA-TION

DEPARTMENT

8


Administrative capacities of the Agency for Electronic Commu-nications and Postal Services are at a high level and it should be noted that, according to the Rulebook on work organization and job classification, all employees are obliged to work on professional development in order to achieve a higher quality of performance of the tasks and duties that are within their scope of work. Permanent professional development of the staff because of new technological solutions in the field of electronic communications and postal services is seen, inter alia, in their participation in expert meetings, seminars, conferences, constant work within working groups under the auspices of ITU, CEPT, BEREC, etc., as well as in exchange of experience on bilateral basis with regional regulatory authorities and countries with which the Agency has signed international agreements on cooperation.

On 31 December 2014, the Agency had 69 employees, including the President of the Council, the Council members and the Executive Director of the Agency.

The qualification structure of the employees is as follows: - 2 employees with PhD degree, - 3 employees with MA degree, - 51 employees with B.Sc. degree- 1 employee with college education- 12 employees with secondary school education.

8.14. International activities

Permanent professional development of the staff imposed by new technological solutions in the field of electronic commu-nications and postal services, can be seen, inter alia, in partici-pation in expert meetings, seminars, conferences, constant work within working groups under the auspices of the International Telecommunication Union (ITU), the Conference of Postal and Telecommunications Administrations (CEPT), the Body of European Regulators for Electronic Communications (BEREC), the Universal Postal Union (UPU), the European Committee for Postal Regulation (CERP) and other institutions, organizations and regulatory authorities in neighbouring countries.

At the regional level, 2015 saw the continuation of cooperation with regulatory authorities in the area of regulation of the sector of electronic communications and postal services.

The text to follow presents a brief overview of the most impor-tant international activities of the Agency in 2015.

8.14.1. Activities of the regulation of roaming prices in the Region

The matter of application of the Regulation on roaming on public mobile communications networks within the European Commu-nity (“Eurotariff”), have long existed in communication between this Agency and operators of mobile electronic communications in Montenegro. Also, the Ministry for Information Society and Telecommunications of Montenegro has been implementing activities on the reduction of roaming prices in accordance with the EU Regulation for a long time now.

In connection with these activities initiated at the Conference of Regulators of Southeast Europe, held in Skopje on 21 Au-gust - 22 August 2014 continued in Budva - Miločer during the international conference organized by the Agency for Electronic

Communications and Postal Services and the International Tele-communication Union, from 28 September - 1 October 2014, on 29 September 2014 the Agreement on the reduction of roaming charges on public mobile communications networks was signed by the Ministries responsible for electronic communications in Macedonia, Bosnia and Herzegovina, Serbia and Montenegro.

Relevant ministries of the Parties to the Agreement agreed to re-duce the cost of roaming services to price levels applied in the EU.

In conjunction with provisions of the signed Agreement, regula-tors of the countries signatories to the Agreement in 2015 issued respectively the Decision establishing the dynamics of lowering the roaming prices so that the prices of roaming services in the signatory countries are regulated on a reciprocal basis simulta-neously in the countries signatories to the Agreement.

In addition to the signed Agreement, the Parties also prepared the Implementation Plan of roaming charges which was delivered to the operators of public mobile communications networks respectively in each of the countries signatories to the Agree-ment, whose task was to implement them in the manner set out in the Implementation Plan and the Decision of the regulator.

Decision of the regulator and Implementation Plan established a gradual reduction of the price of roaming services in three steps starting from 30 June 2015 until (including) 30 June 2017 (when the price of roaming services in the EU would be reached, now still valid).

After the signing of the Agreement the Coordination body was established consisting of representatives of the regulators of the countries signatories to the Agreement, which is responsible for the provision of identical and simultaneous coordination of all obligations under the Agreement.

In 2015, two meetings of the Coordination Committee of Reg-ulators were held, one of which in Sarajevo on 23 June 2015, immediately preceding the implementation of the Decision on establishing the dynamics of lowering the roaming prices, and other one in Skopje held on 13 November 2015, when first effects of the roaming regulation in the countries signatories to the Agreement were discussed. It was agreed in the meeting to continue with the activities of the inclusion and other interested countries in the Regional Roaming Agreement, primarily Albania and Turkey, and the need to deliver the synchronized question-naires of the regulators from all the countries signatories to the Agreement to the operators of public mobile communications networks, in order to assess the effects of lowering the roaming prices for the fourth quarter of 2015 the data of which will be analyzed in the next meeting of the Coordination Committee. The content of the presentation on the effects of the Regional Roaming Agreements delivered on behalf of the signatory coun-tries at the session of the General Assembly of BEREC in London by a representative of the Macedonian Agency was also agreed.

The Agency originally adopted a Decision establishing the dy-namics of lowering the roaming charges on 11 March 2015 which was annulled by the decision of the Administrative Court of Montenegro U 966/15 of 12 June 2015, after the lawsuits of all three operators of public mobile communications networks and the case was remanded for retrial and issuance of a new decision.

A new Decision of the Agency of 29 June 2015 was issued against which all three operators filed lawsuits but the Administrative Court has not reached the decision yet.

In other signatories to the Agreement, the operators of public mobile communications networks did not file lawsuits against


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the Decisions of the operators, although those Decisions were identical to the Decision of the regulator from Montenegro.

The operators of public mobile communications networks com-plied with the roaming prices in line with the Decision of the Agency, as well as tariff intervals of this Decision.

Reduction of average prices of roaming services of mobile op-erators pursuant to the Agreement on the reduction of roaming charges in public mobile communications networks between Bosnia and Herzegovina, Montenegro, the Republic of Macedonia and the Republic of Serbia in 2015 in accordance with the dy-namics envisaged by the Decision (first step) was the following:

- Retail price of outgoing calls will be reduced by 53.30%;

- Retail price of incoming calls will be reduced by 75.76%;

- Retail price of SMS will be reduced by 53.85%;- Retail price of data transfer will be reduced by

89.83%.

Throughout the entire process in which the Agency was involved, direct and written communication was conducted with the re-sponsible Ministry and operators. The operators of public mobile communications networks were asked to deliver in 2015 the corresponding quarterly data regarding the implementation of the aforementioned Decision of the Agency, and communication was also conducted with representatives of coordination bodies of the countries signatories of the Agreement.

8.14.2. Membership in European Telecommunications Standards Institute (ETSI)

ETSI (European Telecommunications Standards Institute) is an organization that produces globally applicable standards for In-formation and Communications Technology (ICT), including fixed, mobile, radio, converged, broadcasting and Internet technologies. The Institute was established as an independent and non-profit organization based in Sophia Antipolis - France. ETSI is officially recognized by the European Union (EU) as a European Standards Organization. When the Agency for Electronic Communications and Postal Services became a full member of ETSI, the conditions were created for the Institute for Standardization of Montenegro (ISME) to become ETSI national organization for standardization (ETSI NSO), which will allow it to adopt European standards in the field of ICT, as well as national standards and to distribute them to stakeholders.

Representatives of the Agency for Electronic Communications and Postal Services took part in the 65th session of the General Assembly of the European Telecommunications Standards In-stitute, which was held on 17 March - 18 March 2015. in Sophia Antipolis, France. Also, co-operation with the Institute for Standardization of Montenegro (ISME) was continued, according

to the signed Agreement on Cooperation, to exchange opinions and take, where appropriate, joint actions and common positions towards the European Telecommunications Standards Institute.

8.14.3. Organization of the meeting of the International Project Team for Technical and Regulatory Issues (BEREC)

Body of European Regulators for Electronic Communications BEREC was established by the European Commission and the European Council No. 112/2009. BEREC has assumed the role of the European Association of Regulators (ERG) in the field of exchange of expertise and best current practices and giving opinions and recommendations on the manner of functioning of telecommunications market in the European Union. BEREC prepares the opinions and views on various issues of regulation for the European Commission and the Council, at their request or on its own initiative.

As determined by the Statute of BEREC a special body was organized within BEREC - the Independent Regulators Group (IRG), in which the Agency, as an independent regulator, is a full member with voting rights to make decisions within the competence of the working body.

The Agency like other regulators from the countries in the region has the observer status in the Board of Regulators of BEREC. This status allows the Agency to perform monitoring of the work without the right to vote when making decisions. In addition to the regulator from Montenegro the observer status in the Board of Regulators of BEREC is also acquired by the representatives of the European Commission, regulators from EFTA countries (Liechtenstein, Norway, Switzerland) and candidate countries for the accession to the European Union (the Republic of Mac-edonia, Serbia, Turkey).

In 2015, representatives of the Agency took part in the BEREC Plenary Assembly and the IRG General Assembly held in Bern (25 February -27 February 2015), Bergen (3 June - 5 June 2015), Riga (1 October - 2 October 2015) and London (9 December - 10 December 2015). Within these meetings workshops were also organized for the participants.

It should be noted that the Agency organized and hosted the meeting of the Contact Network in Pržno (14 May - 15 May 2015). Apart from the aforementioned meeting, representatives of the Agency participated in the work of the Contact Network

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meetings held in Prague (5 February - 6 February 2015), Baden (10 September -11 September 2015) and Barcelona (19 November - 20 November 2015 ).

The Contact Network is a specific type of the BEREC expert working group composed of the expert representatives of the regulators. The Contact Network provides coordination of all proposals and views to be considered at the Board of Regula-tors-BoR, so as to carry out all the necessary preparations, har-monization of different positions of the representatives of the Member States, the assessment of competence and consistency of documents submitted by the members is conducted, coor-dination with the BEREC Office is facilitated and other current issues to be considered the BoR are delegated.

Meetings of the Contact Network are held three or four weeks before the date of the regular sessions of the Board of Regulators (BoR), and they can be also held at the request of the Chairman of the Contact Network before the term of the extraordinary session of the Board.

The Agency for Electronic Communications and Postal Services of Montenegro organized the meeting of the Contact Network (CN) of the Body of European Regulators of Electronic Commu-nications (BEREC) in Pržno, Montenegro, in the period 14 May - 15 May 2015. The meeting was attended by 72 representatives of the national regulatory authorities (NRAs) from the EU, EFTA and candidate countries for accession to the EU, as well as represent-atives of the European Commission and the EFTA Surveillance Authority (ESA). The participants found the meeting successful, and the Agency was recognized as a good host and a successful organizer of the meeting.

8.15. Organization of the International Conference “Regulatory activities in the electronic communications sector”

The International Conference “Regulatory activities in the elec-tronic communications sector” was organized for the 13th time in a row by the Agency for Electronic Communications and Postal Services and the International Telecommunication Union (ITU). The conference was organized under the name “Expanding the availability of broadband access and its adoption” and was held within the Festival of ICT achievements - Infofest 2015.

Taking into account the focus of the regional initiatives of the International Telecommunication Union, agreed at the World Telecommunications Development Conference (WTDC-14), and in particular the Regional Initiative for broadband approach, the Conference presented the continuity of the activities aimed at the development of broadband access in the Region of Central and Eastern Europe. The Conference represented one of the activities of the implementation plan of the International Telecommuni-cation Union for the Regional initiative on broadband access.

The Conference was attended by over 100 participants, rep-resentatives of 14 national regulatory authorities of Albania, Bosnia and Herzegovina, Bulgaria, Montenegro, Croatian, Kosovo, Macedonia, Moldova, Poland, Portugal, Romania, Slovenia, Serbia, Turkey, the relevant Ministries, international organizations, insti-

tutions, companies and operators whose activities are related to electronic communications: Microsoft, Ericsson Nikola Tesla, LS Telecom, Labwise, Cullen International, Crnogorski Telekom, Telenor, and M:tel.

At the opening ceremony of the Conference the following participants took the floor: on behalf of the Government of Montenegro prof. dr. Vujica Lazović, Deputy Prime Minister and Minister for Information Society and Telecommunications, on behalf of the Agency: Dr. Šaleta Đurović, President of the Coun-cil of the Agency and Zoran Sekulić, Executive Director of the Agency, on behalf of the International Telecommunication Union Kemal Huseinović, Director of the Department for Infrastructure, Creation of Encouraging Environment and E-applications. At the opening ceremony of the Conference, participants were welcomed by the presidents of the BoR from Albania, Bulgaria and Poland, and executive directors of regulatory agencies from Serbia and Macedonia.

The working part of the Conference was organized through six programme sessions. The first programme session was organized under the title Policy and experience in the development of broadband access within which discussions were taken about the role of the regulator in achieving socio-economic goals, plans and goals of broadband development, situation in the broadband market, the single digital market, and recommendations adopted at the European level.

National trends and experiences in the development of broadband access was the topic of the second programme session of the Conference. Within this session, the most successful examples of the development of broadband access were presented and its adoption as well as the situation in the broadband market.

Technologies, trends, investments, challenges and opportunities for the development of broadband access were in the focus of the third programme session when special emphasis was put on the use of limited resources of the radio-frequency spectrum for the provision of mobile broadband services in rural and sparsely populated areas.

The fourth session was Challenges in protecting the rights of users and the adoption of broadband access within which pres-entations were delivered and a discussion was held about the quality of services, the protection of the rights of users, network neutrality, and OTT services.

The fifth session was focused on the discussion about the drivers of broadband access, the development of e-services, infrastruc-ture, increase digital literacy, and in the final session of the Con-ference representatives of the organizers gave recommendations and presented future steps and conclusions regarding the further development and adoption of broadband access.


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Excellent attendance, quality and diversity of the presented material and organized discussions were the confirmation that the International Conference organized by the Agency was a leading International Conference in the field of electronic communications in this part of Europe. By organizing the Con-ference within Infofest, general assessment of the organizers of Infofest was that the Conference was one of the key factors of the reputation that the Festival of Information Technology Achievements - Infofest enjoys on international level.

At the closing ceremony of the Festival of Information Technol-ogy Achievements - Infofest 2015, based on the decision of the Steering and Expert Committee, the awards were presented as well as honours for the best. The Infofest Steering Committee awarded among the thirteen most successful awarded companies and participants a special reward to the Agency for Electronic Communications and Postal Services and the International Telecommunication Union for outstanding contribution to the expert reputation of Infofest through the organization of the International Conference “Expanding availability of broadband access and its adoption”.

8.16. European integration – Chapter 10: Information society and media

The acquis of the European Union (EU) in the field of information society and media includes standards on electronic communica-tions, electronic signature, electronic commerce, other services of the information society and audiovisual media services. The aim of the EU acquis in the area of information society and media is to re-

move obstacles to the efficient functioning of the internal market of electronic communications networks and audiovisual media services, as well as the promotion of competition and protection of consumer interests in the sector, including universal access to basic electronic communications services. Also, the acquis under this Chapter contains rules on information society services and a transparent and effective regulatory framework for audiovisual media services in accordance with European standards. The Stabilisation and Association Agreement (SAA) provides for cooperation between the EU and Montenegro in the field of audiovisual media services, as well as electronic communication networks and services, including the develop-ment of the information society.

Chapter 10 contains the rules that enable the effective functioning of the common market in the field of electronic communications networks and services, as well as their promotion, development and increased availability. The EU’s goal is to provide consumers with services at affordable prices (phone calls, eFax, Internet access, free emergency calls) with stimulation of market com-petition and reducing the dominance of monopolies that are still preserved for certain services (e.g. Internet high speed). The EU priority is combating “digital gap” in the field of the Internet access.

On 15 December 2015 the Government of Montenegro adopted a Decision on the establishment of the Working Group for the preparation of negotiations on Montenegro’s accession to the European Union in the field of the EU acquis concerning the Chapter Information Society and Media (Official Gazette of Montenegro, 5/13). Members of the Working Group are the representatives of the Agency.

On 6 December-7 December 2012 an explanatory meeting was held in Brussels and on 21 January and 22 January 2013 a bilateral meeting at which the representatives of Montenegro from the Working Group for Chapter 10 presented the regulations of Montenegro in the area of information society, electronic com-munications and electronic media and answered the questions of the representatives of the European Commission. Through the presentations and answers provided by the members of the Working Group, representatives of the European Commission

8


were acquainted with the legislation in Montenegro in the field of information society and media, and the level of implementation of the EU acquis in the regulatory framework of Montenegro. On 7 May 2013 the European Commission submitted the Report on screening for Chapter 10 in which it is stated that Montenegro meets the requirements for the opening of this Chapter, and calls for development of the Negotiating Position.

On 10 October 2013 the Government of Montenegro adopted the Negotiating Position of Montenegro for Intergovernmental Conference on Montenegro’s accession to the European Union for Chapter 10 - Information Society and Media, and the European Commission submitted the Common Position for Chapter 10 on 5 February 2014. Negotiations for Chapter 10 were open on 31 March 2014 at the Intergovernmental Conference in Brussels. Montenegro did ask for transitional periods or permanent ex-emption from the application of the acquis in any field covered by Chapter 10. In the Common Position two final criteria for the provisional closure of Chapter 10 were stated:

− Harmonization of the legislation of Montenegro with the EU acquis on the independence of the national regulatory authority for electronic communications (the Agency for Electronic Communications and Postal Services) and with the acquis on audiovisual media services;

− Sufficient administrative capacity to implement the acquis in the field of electronic communications, in-formation society services and AVM services, including the independence of the regulator.

The Government of Montenegro on 9 October 2014 adopted the Information on the plan of fulfilling the final benchmarks for the provisional closure of negotiations in Chapter 10 - Information Society and Media, and on 19 February 2015 the Information on the issue of independence of regulatory bodies in the fields of electronic communications and electronic media. For the purpose of harmonization with the EU acquis on the issue of independ-ence of the regulator, the adoption of the Law on Amendments to the Law on Electronic Media was planned as well as the Law on Amendments to the Law on Electronic Communications, which will be adopted by the end of the third quarter of 2016. The obligation of the regulator on the transfer of surplus of income over expenditure in the state budget ceased to be valid on 1 January 2016.

Montenegro continuously works on strengthening the adminis-trative capacity for the implementation of the acquis in the field of electronic communications, information society services and AVM services. In addition to strengthening the capacity of the Computer Incidents Response Team (CIRT) of MIDT in the fight against computer threats, by the end of 2017 the following has been planned: strengthening of specialized units to combat cyber crime in the Police, the Army of Montenegro and the National Security Agency, as well as strengthening the capacity of the Prosecutor’s Office in the field of computer crime and electronic evidence. Also, efforts will be made to strengthen the capacity of the Group for the testing of information technology in the Forensic Center of the Ministry of Interior - Police Administration, to allow proper collection and analysis of electronic evidence. In line with the Strategy for Information Security, 25 local CIRTs have been established so far. In order to complete the national CIRT infrastructure which needs to take care of information security, it is necessary to form local CIRTs in the remaining institutions in order to combat cyber crime.

As for the strengthening of administrative capacity, continuous work is aimed at capacity building. Two missions were organized in September 2014, one in connection with the preparation of secondary legislation pursuant to the Law on Electronic Communications and the other one for the preparation of the amendments to the Law on Information Security. In 2015 through TAIEX support the following was implemented: a study visit to get acquainted with the Croatian experiences regarding the establishment of a Single Information System for the exchange of data between information systems of state bodies and public administration bodies and the expert mission on the develop-ment and maintenance of web sites of state authorities and local self-governments. We will continue to run for expert support provided within TAIEX.

It has been planned that Montenegro fulfils all the criteria by the fourth quarter of 2016 for the provisional closure of the 10. negotiation Chapter.

8.17. European integration – Chapter 8: Competition and state aid

By its Decision adopted in September 2012, the Government of Montenegro formed a working group for preparation of ne-gotiations on accession to the EU, in the field of the EU acquis relating to Chapter 8 - Competition and State Aid. The Agency took part in the work of this Working Group by appointing one of its employees as a member of the Working Group. Explanatory Screening and Bilateral meeting for this Chapter were held in late 2012, and the EU assessment of the fulfilment of conditions for opening negotiations on this Chapter was obtained in 2013.

In 2015, according to the Report of the European Union, when it comes to the competition policy Montenegro was moderately prepared, while state aid remains a cause of concern, especially due to notification and compliance of new laws and assistance with large investment projects and KAP. It was also stressed that it is necessary to improve administrative capacities in both areas. In 2016, the EC expects full harmonization of the Law on Control of State Aid with the EU acquis in the area of procedural rules and to ensure the operational independence of the competent authority in charge of state aid.

As for the competition policy, in the area of anti-trust and merging, three bylaws were adopted in December which reg-ulating the exemption block. All the necessary bylaws relating to the Competition Law were adopted. However, the first three years of the implementation of the Law showed deficiencies in procedures and penalties, and the capacities of the Agency for the Protection of Competition in 2015 remain insufficient. The results achieved by the Agency are better, particularly with regard to antitrust policy, but they must be improved even more. Also, the work of the Agency is becoming more and more transparent.

As for the state aid two more amendments to the Rulebook on the list of rules of were adopted which further harmonize the Montenegrin legislation in this area by which 12 new documents (announcements, communications, guidelines) were introduced into the national legal system. The Government changed its Rules of Procedure so that all the materials that are forwarded to the Government sessions for consideration which could potentially


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be related to state aid in order to be included into the materials for consideration, must have an opinion of the Commission for State Aid Control. The Regulation on business zones was changes/harmonized. Three laws (benchmark is 4)were harmonized con-tained in the list of regulations based on which the regulations that need to be harmonized were identified.

In 2015, under the auspices of the European Movement in Montenegro, conferences were organized as well as expert seminars on individual major topics for the implementation of the legislation in these areas. During these events experiences from the region and the countries of the European Union were presented.

8.18. European integration - Chapter 3: Right of establishment and freedom to provide services

In September 2012, the Government of Montenegro formed a Working Group for the preparation of accession negotiations in the area of acquis relating to the negotiation Chapter 3 - Right of Establishment and Freedom to Provide Services. Bearing in mind that the above chapter, inter alia, deals with postal services, a representative of the Agency was appointed in the Working Group.

The representative of the Agency was actively involved both in the work of this Working Group, and in a separate team for postal services, which was formed by internal documents of the Working Group and was coordinated by the representative of the Ministry for Information Society and Telecommunications.

8.19. European integration – Chapter 1: Free movement of goods

The Working Group worked in 2015 on updating the Action Plan for the implementation of the Strategy of Montenegro for the implementation of acquis in the area of freedom of movement of goods and updating of the Accession Programme of Montenegro to the European Union. Montenegro is now in the last phase of the fulfilment of the initial benchmarks in the first negotiations Chapter and prepared the draft positions for the Chapter I Freedom of movement of goods for negotiations.

8.20. European integration – Chapter 28: Consumer and health protection

Within the activities in the negotiation chapter Consumer and health the EU determined by three criteria for closing the negoti-ations in this area, of which one relates to consumer protection, specifically to the requirement of amending the Law on General Product Safety and Consumer Protection Law in order to further harmonize legislation in the field of consumer protection, in particular with Directive 2011/83 / EU on consumer rights, and to prove that adequate administrative structures and capacities for the proper implementation of legislation will be put in place by the date of accession.

Also, on 22 October 2015, a video conference on the closing benchmarks for Chapter 28 “Consumer and Health Protection” was held.

In 2015, the Council for Consumer Protection conducted regular activities focused on improving the position of consumers in Montenegro, through the monitoring of the state of consumer protection in the market and proposing appropriate measures and activities; draft regulations adopted in this area were dis-cussed, opinions on the need for amendments to the existing and adoption of new regulations in the area of consumer protection were given, part was taken in drafting the National Consumer Protection Programme 2015-2018 with the annual Action Plan of implementation of the National Consumer Protection Pro-gramme 2015-2018, for the period July 2015 - June 2016 as well as the Report the implementation of the annual Action Plan of the National Consumer Protection Programme 2012-2015, for the period July 2014 - June 2015.

The National Consumer Protection Programme for the period July 2015 - June 2018, the Action Plan for the implementation of the National Consumer Protection Programme 2015-2018, for the period July 2015 - June 2016 was adopted at the 125th session of the Government of Montenegro - 3 September 2015. While the Report on the implementation of the annual Action Plan NPZP 2012-2015 for the period July 2014 - June 2015 was adopted at the 124th session of the Government of Montenegro - 27 August 2015. It should also be noted that in accordance with Article 155 of the Consumer Protection Law (Official Gazette of Montenegro, 02/14, 06/14, 43/15), for the first time the Annual Report on the implementation of the Annual Action Plan of the National Consumer Protection Programme (NPZP) 2012 - 2015, for the period July 2014 - June 2015, was forwarded to the Parliament for consideration.

ANNEX 1: CONTENTS OF THE AGENCY 2015 WORK PLAN

This Annex presents the contents of the 2015 Agency Work Plan with references to more detailed information on the execution of the planned program activities for 2015 in this Report.

Contents of the Agency 2015 Work Plan

I INTRODUCTION

II PLAN OF ACTIVITIES

II–1. NORMATIVE PART - Item 8.1. of the Report

A. Regulations and acts adopted by the Agency - Item 8.1. of the Report

B. Professional grounds for drafting regulations and acts to be adopted by the Ministry - Item 8.1. of the Report

C. Professional basis for drafting regulations and acts to be adopted by the Government of Montenegro - Item 8.1. of the Report.

II–2. CURRENT ACTIVITIES

A. Keeping and maintenance of the Agency’s Registries and databases - Item 1.1. Item 1.10. Item 4.1. Item 4.2. of the Report

1. System for collection and processing of data on the market of electronic communications services and market of postal services - Item1.1. of the Report

2. Database of electronic communications infrastructure - Item, 1.10. of the Report

B. Protection of competition in the area of electronic communications - Item 2.1, Item 2.2 of the Report

1. Monitoring of the implementation of regulatory obligations imposed to the operators with significant market power after the conducted second round of the analyses of seven relevant markets - Item 2.1.4. of the Report

2. Adoption of the decision on the implementation of the second round of analyses of five additional relevant markets after the previous verification of meeting the Three Test Criteria - Item 2.1.3. of the Report

3. Monitoring of the implementation of regulatory obligations imposed to the operators with significant market power in the retail market of broadband access to the Internet - Item 2.1.5. of the Report

4. Regulation of retail prices of services of fixed telephony - Item 2.1. of the Report5. Implementation of the accounting separation and cost accounting of the operators in the public fixed electronic

communications network - Item 2.2.4. of the Report6. Implementation of the model of accounting separation and cost accounting of the operator in public mobile electronic

communication network - Item 2.2.5. of the Report

C. Methodology of keeping accountign separation of the operators of universal postal service - Item 5.5. of the Report

D. Universal Service - Chapter 3, Chapter 6 of the Report1. Universal Service in electronic communications - Chapter 3. of the Report2. Universal Service in postal operations - Chapter 6 of the Report

E. Managing radio-frequency spectrum - Item 4.1 of the Report1. Planning the use of radio-frequencies - Item 4.1. of the Report2. Issuing approvals for the use of radio-frequencies - Item 4.1. of the Report3. Control and monitoring of radio-frequency spectrum - Item 8.3, Item 8.4, Item 8.5 of the Report4. Internatinal coordination of radio-frequencies - Item 4.1.4. of the Report

F. Numbering and addressing management - Item 4.2. of the Report1. Issuing approvals for the use of numbers nad addresses - Item 4.2. of the Report2. Number portability - Item 1.9. of the Report3. Information about the use of a ingle European Emergency Number “112”

G. Rights and protection of the interests of users - Item 7.1. of the Report1. General conditions of service provision - Item 7.1. of the Report2. Subscription constracts - Item 7.1. of the Report3. Quality of service - Item 7.1. of the Report4. System of measuring Internet access speed - Item 1.4.5. of the Report5. Tool for help to the users when selecting electronic communications services (prices calculator) - Item 7.1. of the Report6. Education of users - Item 7.1. of the Report7. Public opinion poll - Item 8.12. of the Report 8. Establishing the national Internet Exchange Point in MN - Item 1.4.6. of the Report

141Annual report 2015

9. Activities in the implementation of the Agreement on reduction of roaming charges on public mobile communication networks between the Ministries in charge of the area of eletcronic communications: Bosnia and Herzegovina, Mon-tenegro, the Republic of Macedonia and the Republic of Serbia - Item 8.15.1. of the Report

II–3. DRAFTING PLANS, REPORTS AND INFORMATION RELATING TO THE MARKET OF ELECTRONIC COMMUNICATIONS AND POSTAL OPERATIONS - Poglavlje 1, Poglavlje 5 of the Report

A. Plans, reports and information prepared on annual level

B. Plans, reports and information prepared on semiannual level

C. Plans, reports and information prepared on quarterly level

D. Plans, reports and information prepared on monthly level

E. Plans, reports and information prepared as needed

II-4. COOPERATION WITH COMPETENT STATE BODIES AND OTHER INSTITUTIONS, OPERATORS OF ELECTRONIC COMMUNICA-TIONS AND POSTAL OPERATORS, REGULATORY BODIES OF OTHER COUNTIRES AND INTERNATIONAL ORGANIZATIONS IN THE AREA OF ELECTRONIC COMMUNICATIONS AND POSTAL TRAFFIC - Item 8.14, Item 8.15, Item 8.16, Item 8.17, Item 8.18, Item 8.19, Item 8.20. of the Report

A. Cooperation with authorized state bodies and institutions - Item 8.14. of the Report

B. Cooperation with international institutions - Item 8.14.2. of the Report

C. Organization of international conferences - Item 8.14.3, Item 8.14. of the Report

II–5. MATERIAL-TECHNICAL AND PERSONNEL TRAINING - Item 8.13. of the Report

ANNEX 1: CONTENTS OF THE AGENCY 2015 WORK PLAN

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