| On.Net, an internet service provider, and several cable operators may enter the landline market to compete with Macedonian Telecommunications Co. (MTC) at the start of 2007.
The potential operators say that high interconnection charges are the main obstacle to their market entry. On.net broke the ice on November 17, when it signed the first interconnection agreement with MTC, thus opening the way to become a landline operator. According to the Law, no tender competition is required to operate as a landline provider.
”The state needs to lower the prices of interconnection, if it wants true and real liberalisation”, said Dragan Cemerikic, General Manager of On.net.
Cemerikic added that On.net is prepared to start offering service at prices lower than MTC, but only if interconnection charges are lowered.
Mile Janakieski, Minister of Transport and Telecommunications, said that the liberalisation of landline service is slowly turning into reality. He also pointed to interconnection with MTC as the most significant obstacle and announced that interconnection will undergo a major review.
”The new interconnection agreement should be ready by December 31, and then we will need an additional period of three to four months for the companies to enter the market”, said Janakieski.
On.net has already established its network of wireless links all over Macedonia, through the Macedonia Connects project, financed by USAID. The project was designed to secure free broadband wireless internet for 550 elementary and secondary schools, primarily in rural areas.
Source: Oneworld Southeast Europe - WDR/Intelecon Regulatory News
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