Telekom Slovenije and Si.mobil found in breach of net neutrality

It is now official that Slovenia’s largest mobile network operators Telekom Slovenije and Si.mobil have breached net neutrality. A national sector regulator AKOS announced its decisions on Friday. Both operators confirmed to have received the decisions ordering them within 60 days to stop discriminating against internet traffic by music streaming service Deezer (Telekom Slovenije) and cloud storage service Hanger Mapa (Si.mobil). The decisions are final and only an administrative dispute or extraordinary judicial review are allowed.

Zero-rating: Slovenian regulator exposed to excessive pressure

Interview with Dusan Caf, Chairman of the Slovenian Electronic Communications Council

By  Nathalie Steiwer  •  05 January 2015

Slovenia is one of two EU member states - along with the Netherlands - which has adopted legislation on net neutrality. How is this legislation applied?

A text was adopted in 2012 and entered into force in January 2013. Thus far, the regulator has not intervened, saying that there has not been any violation of the rules. The problem is that the regulator comes from he industry - and shares its point of view. The pressure is even greater since the State is currently selling its 73% share in Telekom Slovenije.

In your blog you criticise the regulator’s lack of reaction to ‘zero rating’ - what is the problem here?

At the end of 2013, Slovenian operators launched offers that gave their subscribers unlimited access to certain internet services which are not included in their monthly data limit. Telekom Slovenije, for example, offered subscribers unlimited access to video services  ... continue reading → 

Zero-Rating Violates Slovenian Net Neutrality Law

In late 2013 Telekom Slovenije offered zero-rated content and services as part of its mobile data plans, where specific types of traffic were exempted from data caps and could be used without any volume limits (or the limits were significantly higher than those of the data caps). Its offer included HBO GO and UEFA Champions League video streaming services, as well as its own cloud data storage service (TViN Shramba). A few months later the operator expanded the offer with a popular music streaming service Deezer. 

The competition authority and sector regulator seem to believe that Telekom with its zero-rated offers has not breached net neutrality and competition laws. In contrast, our analysis reveals that zero-rated content, services or applications provided or used via internet access services have been forbidden since January 2013. 

Slovenia launches multi-band spectrum auction

The Slovenian telecoms regulator APEK published a tender for the award of radio frequencies for providing public communications services (OJ RS, No. 114/2013, p 3515, 31 December 2013). Spectrum in the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz and 2600 MHz bands is included in the award process as set out in the following table.

A timeline of Slovenian 4G spectrum assignment process

Slovenian lawmakers adopted a decision to assign frequencies in the 800 MHz band, a so called digital dividend, for mobile broadband in 2007. They were ambitious and wanted to launch mobile broadband services in the 800 MHz band already in 2011. Six years later and more than seven years after the adoption of the underlying strategy, we are still far from assigning frequencies. We have not got even a complete mobile auction information memorandum. The Slovenian National Regulatory Authority (NRA) requires changes in auctioning provisions of the recently adopted Electronic Communications Act, which may lead to further delays.

Europe needs a coherent and coordinated radio spectrum policy

The mobile broadband has become the most dynamic ICT market and much more important than the underlying technology. It has a transformational impact, driving far-reaching social and economic transformations through new services and changes in consumer habits. It is changing the way we live and work. Europe was once a leader in mobile communications, but has in recent years fallen behind South Korea, Japan, Australia and United States, where markets now enjoy much higher penetration rates of 4G mobile broadband communications than in Europe.

Reasons for the low take-up of mobile broadband in Slovenia

The latest global broadband report, released on Saturday by the United Nations Broadband Commission, reveals an astonishingly high global growth rate in mobile broadband subscriptions of some 30%. This is the highest growth rate of any ICT. In 2012, it exceeded fixed broadband subscriptions by a ratio of 3:1 (up from 2:1 just two years ago).

Slovenia has dropped seven ranks in mobile broadband penetration to 43rd place in the 2013 global broadband report. The decline is in large part attributable to a slower adoption of mobile broadband technology despite the growth of subscriptions in 2012 was still remarkably high at 26,6%. Slovenia has lost two places and is 22nd amongst 28 EU member states. What is worrying is the gap between the economies with highest mobile broadband penetration that is three times higher than in Slovenia.

Telekom Slovenije – a brief history of its privatisation

Telekom Slovenije, one of Slovenia’s largest and most important business groups, has successfully resisted privatisation since its separation from PTT Slovenije in 1995. Both privatisation attempts were marked with strong opposition against privatisation. For proponents of state ownership Telekom Slovenije has been a strategic company and valuable state’s crown jewel that should remain state-owned. This is the third time the government has considered selling its stake in the incumbent telecommunications operator. The government seems to be determined to carry out the privatisation of Telekom Slovenije. However, its privatisation plan is likely to face strong opposition which is already growing.

The first privatisation attempt – a missed peak of the telecom hype

The first attempt to privatise Telekom Slovenije was made between 1999 and 2001. The government started the privatisation process in 1999 and appointed members of the privatisation commission. In 2000, it hired the consultancy firm PriceWaterhouseCoopers (PWC) that prepared three privatisation models. Each envisaged a reduction of the state’s stake in Telekom Slovenije below 50% either immediately or in a short run of two to three years. 

Slovenia lacks telecoms network investment

The Slovenian electronic communications sector has lost much of its steam between 2008 and 2011. The sector's investment, driven by infrastructure competition and fibre deployment, peaked in 2008 at EUR 401 million, accounting to 32,6% of the sector's revenue (Figure 1). The investment then fell to EUR 120 million in 2011, representing only 9,8% of the sector's revenue, which placed Slovenia in the last position among the EU Member States (Figure 2). Investment in the electronic communications sector recovered to EUR 173 million in 2012, reaching a level of 14,3% of the sector's revenue.