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Amendments to Law on telecommunications to allow for restructuring of Telekom Srbija
Belgrade,
15 April 2006
Serbian Deputy Minister of Capital Investment Dragana Curcic said today that amendments to the Law on telecommunications, which the Serbian parliament will examine next week in emergency procedure, will allow for restructuring of Telekom Srbija, but such that it remains a single company, and not be divided into three separate firms.
In a statement to Tanjug news agency, Curcic said that restructuring will enable telecom operators to offer different services within the same firm, trough separate divisions. These divisions will manage their own costs and investments.
She added that in this way three different entities will be formed within Telekom, which will deal with mobile and fixed telephony and provision of Internet services. They will have separate accounting departments, which in the case of mobile telephony already exists in Telekom.
According to Curcic, these companies will have to submit reports every six months to the Agency for Telecommunications, which will take care that Telekom, for example, does not subsidise fixed telephony through the mobile, or vice versa. The Agency's aim is to secure equal competition between all market players.
Curcic said that amendments to this law will enable other firms which now offer one single service to expand their activity and to offer different telecommunication services within the same company.
She said that in EU countries, many operators have already linked their business functions and convergence of different networks so that they could offer the users a complete package of services, or different services through the same network.
She added that in this way three different entities will be formed within Telekom, which will deal with mobile and fixed telephony and provision of Internet services. They will have separate accounting departments, which in the case of mobile telephony already exists in Telekom.
According to Curcic, these companies will have to submit reports every six months to the Agency for Telecommunications, which will take care that Telekom, for example, does not subsidise fixed telephony through the mobile, or vice versa. The Agency's aim is to secure equal competition between all market players.
Curcic said that amendments to this law will enable other firms which now offer one single service to expand their activity and to offer different telecommunication services within the same company.
She said that in EU countries, many operators have already linked their business functions and convergence of different networks so that they could offer the users a complete package of services, or different services through the same network.
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