1. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 10 – Information society and media Bilateral screening: Chapter 10 PRESENTATION OF MONTENEGRO Brussels, 21-22 January 2013

2. Chapter 10: Information society and media FRAMEWORK DIRECTIVE Žarko Marjanović Senior Advisor for Legal Affairs Ministry for Information Society and Telecommunication zarko.marjanovic@mid.gov.me M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA

3. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA Contents  Relevant Acquis  National regulatory authorities - EKIP  National regulatory authorities - AEM  Provision of information and Right of appeal  Consultation and transparency mechanism  Management of radio frequencies for electronic communication services  Numbering, naming and addresses  Right of way and Co-location and facility sharing  Accounting separation and financial reports  Undertaking with significant market power  Standardisation  Interoperability of digital interactive television  Dispute resolution between undertakings  Proposal of Law on Electronic Communication and ammended provisions of the Framework Directive

4. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA Relevant Acquis  Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communications networks and services  Directive 2009/140/EC

5. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Law on Electronic Communications (Off. Gazette of Montenegro 50/08, 70/09, 49/10, 32/11)  Electronic Media Law (Off. Gazette of Montenegro 46/10, 40/11, 53/11) National Legislation

6. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Article 7 – Status of the Agency –The Agency for Electronic Communications and Postal Services (EKIP) is functionally independent of the legal and physical entities that provide electronic communications networks, equipment or services; –Activities of the Agency are public; –Statute is approved by Government;  Article 8 – Competencies (Responsibilities) of the Agency  Article 9 – Bodies of the Agency –Council of the Agency and Executive Director; –President of the Council and members of the Council are appointed by The Parliament of Montenegro after public recruitment procedure;  Articles 11 to 16 –Selection criteria for appointment of Council members; –Dismissal of Agency Bodies; –Financial Sources, Financial Plan, Program of Activities; –Accounting in the Agency; –Surplus and lack of funding; –The Agency’s Activities Report;  Article 4a –The Parliament of Montenegro adopts The Agency’s Annual Activities Report and Financial Report; National Regulatory Authorities - EKIP

7. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Article 10 – Status of the Agency - The Agency for Electronic Media (AEM) shall be an independent AVM service regulatory body with public authorities acting pursuant to Law on Electronic Media; - The Agency acts in public interest  Article 11 – Coordination with other regulators and state authorities - Cooperates and exchanges information  Article 12 – Competencies (Responsibilities) of the Agency  Article 13 – Bodies of the Agency - AEM Council and AEM Director  Articles 14 to 39 - Publicity of AEM’s operation; - Conflict of interest; - Appointment and dismissal of Council members, Council members nominators; - Council shall be appointed and dismissed by the Parliament of Montenegro; - Independence of Council members;  Article 40 - Responsibilities and duties of AEM Director;  Articles 42 and 43 – AEM’s funding and Financial Plan - Surplus of AEM’s revenues over expenditures may be used solely for pursuit of legal requirements related to the performance of this function. - The Budget Law prescribes that a competent body of the independent regulatory authority (Agency Council) defines a proposal of the Financial Report for the previous year to be adopted by The Parliament of Montenegro National Regulatory Authorities - AEM

8. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Article 18 –Any electronic communications network operator and service provider shall make all the information at their disposal, including financial, available to the Agency upon a written request in form and deadlines requested by the Agency;  Article 19 –The Council of the Agency shall make decisions on rights and obligations of the operators providing electronic communications services and/or electronic communications network; –General administrative procedure; –A complaint may be lodged against the Decision of the Agency, before the Ministry within 15 days as of the day of Decision receipt; –A law suit against the Ministry’s decision may be submitted to the competent court. Provision of Information and Right of appeal

9. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Article 43 Any measure, imposed to SMP operator, may be implemented by Agency only based on previously held public debate with the operators, users and other stakeholders, in cooperation with relevant national or foreign body for protection of competition;  Article 68 If the Agency considers that interest in a particular radio frequencies could exceed the availability and thereby question the efficient use thereof, it shall acquire the opinions of interested parties concerning the conditions of use of frequencies, market value of frequencies and on limiting number of approvals for radiofrequencies;  Article 118 – Public Influence Important in the phase of market modeling and adopting the regulations with significant influence to the specific market; Consultation and Transparency Mechanism

10. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Frequency allocation plan – Harmonisation – Radio Spectrum Decision  Frequency assignment plans  Approval for Use of Radio Frequencies – Upon request – Public tender procedure –Public tender procedure for granting rights of use of radio frequencies to providers of radio and television broadcast content is conducted pursuant to Electronic Media Law – Transfer of right of use (Article 79) Management of Radio Frequencies for Electronic Communication Services

11. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Numbering Plan and Plan of Addresses - The Agency shall administer Plan on Numeration and Plan on Addresses for the purpose of: providing efficient structuring and use of numerations and addresses; satisfying the needs of operators entitled to allocation of numerations and addresses according to this Law and providing allocation and use of numerations and addresses in a fair and non-discriminatory manner.  Approval for Use of Numeration and/or Addresses - General administrative procedure or tender procedure when is estimated that interest surpasses availability of the resource; Numbering, Naming and Addresses

12. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Right of Way –Right of Way is subject of Law on Legal Property Relations, Article 22 (Official Gazette, no 19/09);  Article 33 - Co-location and facility sharing –For purposes of rational use of space, protection of the environment or public health, public security or the urban planning, construction of objects and infrastructure of public operators, shall be conducted in the manner as to enable, to the maximum possible extent, availability of quality joint use of electronic communication infrastructure; –Operators of public communications networks shall be obliged to negotiate with other operators of public communications networks, for the joint use of electronic communications infrastructure, if such use is technically feasible and does not cause harmful interference. Right of way and Co-location and facility sharing

13. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Article 35 – Legal entities performing business activities that are not exclusively in the field of electronic communications; – These are obliged to establish an independent legal entity for provision of public communications networks or services or to keep separate accounting for activities in relation to provision of public communications services. Accounting Separation and Financial Reports

14. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Chapter V – Ensuring competition –Article 40 defines significant market power and joint dominant positions as well as criteria for assessment of significant market power; –Articles 41, 42, 43 – market definition, market analysis procedures and SMP operator identification; –Articles 44 to 51 stipulate measures that may be imposed to SMP operator; Undertaking with Significant Market Power

15. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA Standardisation  Article 8 –Agency supervises work of the operators in the electronic communications sector regarding harmonization with the Law, sub-laws and valid technical regulations and standards;  Article 36 –The Ministry shall, in accordance with international standards, prescribe the conditions for interoperability of digital radio and television user equipment;  Article 106 –Quality of universal service;  Article 134 –Supervisor’s responsibilities  Rulebook on quality of public electronic communication services  Rulebook on quality of Universal service  Rulebook on operator’s access and interconnection

16. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Article 36 –Operators providing public communications networks used for distribution radio and television programs are obliged to ensure access to application program interfaces (API) or electronic program guides (EPG) under fair and non-discriminatory; –The Ministry prescribes the conditions for interoperability of digital radio and television user equipment. Interoperability of Digital Interactive Television

17. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Article 20 –In case of a dispute arising among operators providing electronic communications networks or services, the operators can agree in written form or the Agency suggests for the dispute to be settled by applying the rules for mediating or arbitrary procedures, if they would contribute to a better and a more timely resolution of such a dispute, in accordance with objectives of efficient competition, market development and protections of users’ interests;  Article 33 –When an operator of public communications networks is denied access to electronic communication infrastructure or an agreement on joint use is not reached, the Agency shall resolve the subject of the dispute in question upon the request from one of the parties, in accordance with this Law;  Article 34 –If the agreement on interconnection or operator access can not be reached, the Agency shall resolve the dispute, upon a request from one of the parties thereto, within 30 days, regulating only such issues on which agreement could not have been reached by the parties involved. Dispute Resolution between Undertakings

18. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Policy objectives and regulatory principles –Article 3 stipulates objectives and principles such as: objectivity, transparency, nondiscriminatory and proportionate measures;  Agency’s bodies are Council and Executive Director –Agency’s Council is responsible to The Parliament of Montenegro; –Council members are appointed by The Parliament of Montenegro; –Executive Director is appointed by The Agency’s Council; –Executive Director is responsible to the Agency Council; –Articles 16 and 17 define Selection Criteria and measures to prevent conflict of interests of Council members and Executive Director; –Article 19 and 22 define dismissal procedures of Council Members and Executive Director;  Article 24 - Financial sources and Financial plan –Activities Plan with Financial Plan shall be adopted by The Parliament of Montenegro;  Article 26 - Agency’s Activities Report and Financial Report –Activities Report with Financial Report shall be considered and adopted by The Parliament of Montenegro;  Article 27 - Surplus of funding –If the total revenues generated by the Agency are higher than total expenditures, the surplus shall be remitted to Account of The Budget of Montenegro. Proposal of Law on Electronic Communication and ammended provisions of the Framework Directive

19. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Article 22 – Decision making procedure –The Council shall make decisions; –General administrative procedure; –Right of appeal to competent Court;  Article 30 – Provision of information  Article 31 – Confidentiality of Data  Article 33 – Public consultation procedure  Article 34 – Dispute resolution  Article 35 – Cooperation with other competent bodies  Article 45 – Right of easement Proposal Law on Electronic Communication and ammended provisions of the Framework Directive

20. Chapter 10: Information society and media M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 10: INFORMATION SOCIETY AND MEDIA  Article 167 – Security and integrity of electronic communication networks and services –Appropriate technical and organizational measures in order to guarantee integrity, security and continuity of supply of services; –Measures in case of breach of security or loss of integrity;  Standardization –Articles 3, 11, 39, 59, 127, 188  Financial Penalities –Articles 191 to 195 Proposal Law on Electronic Communication and ammended provisions of the Framework Directive

21. Thank you for your attention. QUESTIONS