2010 Annual Report RRT

Annual report 2010 RRT

TABLE OF CONTENTS
FOREWORD BY THE DIRECTOR OF THE COMMUNICATIONS REGULATORY AUTHORITY OF THE REPUBLIC OF LITHUANIA ......................................................................................................................................4 MISSION AND OBJECTIVES OF ACTIVITIES OF RRT ..........................................................................................7 FUNCTIONAL AREAS OF RRT ACTIVITIES ...........................................................................................................8 BRIEF OVERVIEW OF LITHUANIAN COMMUNICATIONS SECTOR ....................................................................9 CHANGES IN THE LEGAL FRAMEWORK OF REGULATION OF ELECTRONIC COMMUNICATIONS AND POSTAL SECTORS ................................................................................................................................................15 SUPERVISION OF ACTIVITIES OF UNDERTAKINGS..........................................................................................18 Supervision of the electronic communications market ........................................................................................19 General supervision of undertakings, engaged in electronic communications activities .....................................19 Supervision of the postal and courier services market ........................................................................................20 The results of surveillance of radiocommunication equipment and telecommunications terminal equipment market ..................................................................................................................................................................22 Surveillance of the market of electromagnetic compatibility of equipment and devices .....................................24 PROTECTION OF CONSUMER RIGHTS AND LEGITIMATE INTERESTS ..........................................................26 Protection of consumer rights and legitimate interests in the electronic communications sector .......................26 Supervision of the universal services ..............................................................................................................26 The quality of Internet access services, provided over mobile networks ........................................................27 Public fixed telephone communication services ..............................................................................................29 Cable television networks ................................................................................................................................29 Investigation of consumers complaints ...........................................................................................................30 Consumer awareness raising ..........................................................................................................................31 Activities of the national CERT-LT team .........................................................................................................32 Survey of network and information (IT) security situation in Lithuania ............................................................34 The Safer Internet Project .............................................................................................................................36 Study of the reliability of the Internet network infrastructure ...........................................................................39 Protection of consumer rights and legitimate interests in the postal sector ........................................................41 Supervision of universal services ....................................................................................................................41 Provision of information on universal postal services to consumers ...............................................................41 Establishment of points of access to universal postal services .......................................................................42 Quality control of universal postal services .....................................................................................................43 Investigation of user complaints ......................................................................................................................44 Protection of consumer rights and legitimate interests in the equipment sector .................................................46 Conformity assessment of the interface of equipment and devices ................................................................46 Elimination of radio interference ......................................................................................................................47 Interference to radiocommunication networks and systems ...........................................................................49 Supervision of electronic communications infrastructure ................................................................................50 PROMOTION OF COMPETITION IN ELECTRONIC COMMUNICATIONS AND POSTAL SECTORS ................52 Electronic communications sector .......................................................................................................................52 Market participants ..........................................................................................................................................52 Supervision of execution of the obligations imposed on the undertakings having significant market power ..53 Supervision of retail fixed telecommunication services ...................................................................................55 Supervision of wholesale fixed telecommunication services ...........................................................................55 Supervision of wholesale mobile telecommunication services ........................................................................57 Supervision of broadcasting transmission services.........................................................................................58 Supervision of roaming services......................................................................................................................60 Encouragement of market self-regulatory mechanisms ..................................................................................60 Common use of infrastructure .........................................................................................................................61 Number portability service ...............................................................................................................................62 Selection of a service provider ........................................................................................................................64 Promotion of competition in the postal services sector .......................................................................................64 Postal and courier services market participants ..............................................................................................65 Tariffs and cost accounting of universal postal services .................................................................................66 CREATING PRECONDITIONS FOR TECHNOLOGICAL DEVELOPMENT OF ELECTRONIC COMMUNICATIONS MARKET ...............................................................................................................................70 Encouragement of investments and development of advanced ICT technologies..............................................70 Radio frequency management ........................................................................................................................70 International negotiations on coordination of radio frequencies ......................................................................71 Television.........................................................................................................................................................71

Mobile radiocommunication service ................................................................................................................73 Satellite and fixed radiocommunication service ..............................................................................................76 Fixed service....................................................................................................................................................76 Satellite service ...............................................................................................................................................77 Spectrum engineering .....................................................................................................................................78 Radio amateur activities ..................................................................................................................................79 Radio spectrum monitoring..............................................................................................................................81 Management of other resources ..........................................................................................................................82 Management of telephone numbers ................................................................................................................82 Management of network identifiers .................................................................................................................83 Electronic numbering system (ENUM) ............................................................................................................83 Internet addresses (licences regarding the use of the name of Lithuania in the names of the .lt Internet domain) ............................................................................................................................................................84 Activities of RRT aimed at ensuring free movement and provision of equipment to the market of the EU ....85 INTEGRATION INTO THE DECISION MAKING SYSTEM IN THE EU AND INTERNATIONAL REGULATORY SPACE .....................................................................................................................................................................89 Activities in EU institutions ...................................................................................................................................89 The Body of European Regulators for Electronic Communications (BEREC) and the Independent Regulators Group (IRG) ..................................................................................................................................91 European Regulators Group for Post (ERGP) ................................................................................................92 Bilateral cooperation with the Commission and other national regulatory authorities.....................................93 The activities in the European Conference of Postal and Telecommunications Administrations (CEPT) ......95 European Committee for Postal Regulation (CERP) ......................................................................................96 The Harmonised Calculation Method (HCM) Agreement ................................................................................97 International Telecommunication Union (ITU) .................................................................................................97 Internet Governance Forum (IGF) .................................................................................................................100 The Universal Postal Union (UPU) ................................................................................................................101 ORGANIZATION OF RRT ACTIVITIES ................................................................................................................103 Management of RRT..........................................................................................................................................103 The RRT staff and organizational structure ...................................................................................................104 RRT as an open and transparent organization .............................................................................................105 Planning and organization or RRT activities .................................................................................................105 RRT activity guidelines for 2011 ........................................................................................................................108 FINANCIAL STATEMENT 2010 ............................................................................................................................113 RRT assets and liabilities ..............................................................................................................................113 The revenues, received by RRT in 2010 for the services provided and works completed according to the Special Communications Management and Control Programme .................................................................113 Utilization of funds, allocated for the Special Communications Management and Control Programme, executed by RRT in 2010 ..............................................................................................................................114 Annex 1. The results of market analysis, performed by RRT ........................................................................115

FOREWORD BY THE DIRECTOR OF THE COMMUNICATIONS REGULATORY AUTHORITY OF THE REPUBLIC OF LITHUANIA
When preparing the Annual Report 2010 of the Communications Regulatory Authority of the Republic of Lithuania (hereinafter referred to as RRT) we had to look back on certain events, which actually took place earlier than one year ago. This necessity resulted not only from the fact that the publication of the present Report coincides with the tenth anniversary of activities of RRT. 2010 is not a year, which could be evaluated quickly and easily. Not because it could be called a good or a bad one, quite simply this year was different. Therefore we attempted to find a starting point in the past, trace back analogies with the events, both already forgotten and continuously reminding of themselves and compare recent experience and accomplished works with the previously studied facts of the relatively short history of RRT. Those attempts, however, were also of little help. RRT, a relatively young but highly experienced authority, already having experience recognized even at the international level, in 2010 observed new phenomena in the communications sector, little experienced previously and was busy solving puzzles slightly different than those it was used to in the past. Looking back at 2010 today, one can not help remembering a famous American businessman and inventor Thomas Edison, who said the following words: If theres a way to do it betterFind it. It may be too early to speak of the RRT findings during the previous year let those, who we work for, i. e. consumers and service providers, evaluate our activities and results. However, we recognize that we were driven by an immense wish to do it better and made each and every attempt in order to find any ways to do it. Last year, such progress measurement units as Mbps and cent per minute, which had been taken for granted and entrenched into peoples minds for years, lost a significant share of the comparative and evaluating meaning. One cannot help but recognize that the phenomena, surrounding us in different times, the environment, priorities and values regularly take another position in our hierarchy of evaluation, which could also be said of other areas of life. Therefore, in Lithuanias communications system, which passed the phase of unprecedented growth, it became less relevant whether a home user has 100 or 200 Mbps speed rate Internet access and which speed rate can be reached over his mobile phone. We dare to doubt whether it is still vitally important for an ordinary average mobile user that the service provider gives him eleven hours of free-of-charge calls per month for the same monthly charge instead of ten. Most likely, the user does not even care what actually could be called the 4G services and why they are better than 3G, in case that does not bring an essential difference when connecting to his social network account or reading the received e-mail not at home, but in a public place. The news that last year Lithuania was yet again noted as the leading EU Member State in terms of mobile penetration in the Commission Progress Report was also met rather moderately, since at the time everybody was concerned with comparison of specs of new tablet PCs, appearing on the market. Does anybody still remember those hot discussions, which took place quite recently, i. e. which Internet speed rate could actually be called broadband communication? Was the limit between just Internet and high-speed

Internet drawn at 512 Kbps? Today it brings a smile, since the basic packages offered by market players are already measured by totally different criteria, which does not come as a surprise, especially having in mind aspirations of the European Digital Agenda, which was presented last year. Among the objectives, set for the entire European Union to make the broadband Internet available to each and every citizen of the European Union until 2013 and reach that all the EU citizens have the possibility to use at least 30 Mbps broadband communication before 2020. Does that sound too ambitious? The broadband penetration in Lithuania is quite impressive as of the end of the 4 quarter of 2010 it reached 27.1 per cent in terms of subscribers, connected only by fixed and mobile communication technologies. Speaking of broadband Internet connection via optical lines alone, last year Lithuania was noticed not only in Europe, but also worldwide in terms of its progress. However, this only brings to mind Edisons words to search for the ways to do it better. Sometimes searching for such ways results in rather non-traditional decisions, for instance, using the already existing infrastructures, developed for the provision of other services, such as sewage or heating networks, for the development of communications infrastructure. Another example is the puzzle of making the transition to digital television not just a widely advertised phenomenon, but also a beneficial act as seen from the perspective of RRT as the authority, managing the state resources, i. e. the radio frequencies. The main points of emphasis regarding the digital television were placed already five years ago. In addition, it has been known for a long time when the process should be finalized and what the digital dividend will be used for EU wide. At the same time, significant attempts are made in order for the said activities to be performed efficiently and in due time. The year was truly full of externally invisible attempts to consolidate everything that has already been reached without lagging behind the requirements, raised by a natural evolution. It could be said that the legal regulation of the communications will shortly be tuned with the new directives, adopted at the end of 2009, which had to be transposed into Lithuanias national legislation in 2010. We had to thoroughly prepare to change the legal framework. Attempts were made to make the administrative activities more constructive, with reduced requirements to the market players and simply cheaper. RRT, as the institution, which encourages competition on the market, has already proven the efficiency of its activities; therefore it is only natural that, following the examples, set by RRT, the first specific steps were taken towards regulation of similar infrastructure sectors at one competent institution by employing the same principles. Among the results of the consistent activities one should note the fact that we have succeeded, in cooperation with other institutions and representatives of the private sector, to change peoples perception of the dangers of publishing their personal information on the Internet. It can be observed that consumers already understand that their photographs, uploaded to a certain webpage, are retained there for a long time and the published images from a wild party may have negative consequences in the future. Even younger users frequently consider the necessity to act responsibly and respect other people in the electronic space. The already mentioned recognition of the competence of RRT at the international level is perfectly illustrated by the fact that last year a representative of RRT was elected to the International Telecommunications Union already for the second time. Dr. Mindaugas ilinskas, Director of the Radio Communications Department was elected into the Radio Regulations Board of the ITU, formed of twelve elected members, who have a high professional qualification and sufficient expert experience in the areas of management of radio communications and radio frequencies. Also worth mentioning is the fact that in 2010 the European Regulators Institution for Electronic Communications commenced its activities with the aim of strengthening the cooperation between the Member States national regulatory institutions in the areas of market integration. In addition, the European
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Regulators Group for Postal Services was re-launched, which is going to contribute to the complete liberalization of the Community postal market in 2013. Taking another look at the last year, one could not help but remember another saying by Thomas Edison: Genius is one per cent inspiration, ninety-nine per cent perspiration. We were not short of ideas therefore we hope that we will have the courage to implement them.
Director
Tomas Barakauskas

MISSION AND OBJECTIVES OF ACTIVITIES OF RRT
MISSION:
To ensure a wide range of technologically advanced, high-quality, secure and affordable ICT and postal services (products) for each and every resident of the Republic of Lithuania, create the possibilities for development of information and communications technologies and postal business, thus accelerating the development of information
OBJECTIVES:
To ensure a wide range of technologically advanced, high-quality, secure and affordable ICT and postal services (products) for each and every resident of the Republic of Lithuania, create the possibilities for development of information and communications technologies and postal business on the basis of the flexible regulatory framework, harmoniously functioning on the common EU market, influencing the supply of the services on the market
Protection of information and communications technologies and postal services (products) consumers rights and legal interests according to the competence of RRT
Efficient and transparent competition on the ICT and postal services (products) markets
Encouragement of longterm investments and development of innovative ICT
Integration into the EU and international regulatory space and efficient activities of RRT
Supervision of provision of information and communications technologies and postal services Increase of security of information and communications technologies networks and information
Application of ex-ante regulatory principles on the information and communications technologies services (products) markets, on which the competition is inefficient or insufficient
Promotion of technologically advanced information and communications technologies business by development of a favourable regulatory environment
Integration into the decision making process in EU
Supervision and ensuring of compliance of radiocommunication equipment and telecommunications terminal equipment, existing on the market to the compulsory requirements of the Regulations and supervision and ensuring of compliance of equipment to the electronic compatibility requirements
Efficient management and supervision of usage, including monitoring of radio frequencies/channels
State supervision of observance of the requirements on security and purpose of electronic communications infrastructure
Monitoring of competition in the information and communications technologies and postal sectors, activation of the market self-regulation mechanisms
Efficient management and supervision of usage of numbers and other electronic resources
Efficient planning, organization, control and publicity of the RRT activities

FUNCTIONAL AREAS OF RRT ACTIVITIES
Control and supervision of other electronic communications recources
Supervision of terminal equipment
Regulation of postal and courier sector
Regulation of electronic communications sector, including the e-security
Control and supervision of radio spectrum

BRIEF OVERVIEW OF LITHUANIAN COMMUNICATIONS SECTOR
In 2010 broadband penetration reached 27.1 per cent per 100 residents, 99.3 per cent of the Internet access was provided over broadband communication The Internet access market grew by 10.4 per cent in 2010 Lithuania remains Europes leader in terms of the number of households, connected to the Internet via fibre lines (penetration - 21 per cent). Lithuania ranks sixth in the world in terms of the said indicator The number of subscribers, receiving broadband services over FTTx lines, continued to grow in 2010 Lithuania remains among worlds leading countries in terms of infrastructural readiness to satisfy the consumers expectations to receive high quality innovative services in the future and the networks quality parameters
In 2010, despite the positive trends, which were becoming more and more prominent, the electronic communications market was reducing due to the recession of economy (the total revenues of the sector reduced by 10.7 per cent compared to 2009) (see Figure 1). It is obvious that the growing unemployment and reduction of household revenues resulted in changes in the structure of residents expenses and their spending habits and the reducing trade volumes resulted in changes in the structure of business expenses and the business spending habits, i. e. there emerged the trend of saving. Both undertakings and residents reviewed their consumption habits and reduced the volumes of the purchased services. The said changes forced the market players to operate more efficiently, search for courageous and non-traditional solutions in order to use the available resources in the most efficient manner possible, keep the existing and attract new consumers. The main measure, chosen by market players in order to keep the consumers was the reduction of service prices: the prices of mobile telecommunication services reduced by almost one third, the prices of fixed services by one tenth. Such pricing policy resulted in the reduction of revenues in the main segments of the electronic communications sector (as well as the entire sector) even while the number of consumers was increasing. In addition, the prices of roaming services reduced for already the third time; however, that did not have a significant effect on the dynamics of revenues due to a very small number of calls, originated from abroad.
16 12 8 4 0 -4 -8 -12 -16 2004 2005 2006 2007 2008
Change of the GDP, per cent Change of the sector, per cent
7,3 7,8 5,3
11,9
7,8 7,1
9,8 10,3 5,1 2,9
1,3
-7,7 -15,0 2009 -10,7 2010
Figure 1. The changes of Lithuanias GDP and electronic communications sector (compared to the corresponding period of the previous year), 20042010, per cent
Source: Statistics Lithuania, RRT

The revenues from the activities on one of the relatively biggest electronic communications sector, i. e. mobile telecommunications, reduced for the second year in a row. Compared to 2009, in 2010 the revenues (see Figure 2) from the provision of public mobile telecommunications networks and services reduced by 12.6 per cent. However, the increased number of active mobile telecommunications subscribers (the penetration grew by 1.7 per cent and surpassed the penetration, which existed prior to the recession) shows that this segment, which is among the biggest electronic communications segments, is recovering. A similar situation can be observed on the public fixed telecommunications market: although the revenues for the provided fixed telecommunications services also reduced in 2010 (by 14.8 per cent), the number of public fixed telecommunications lines per 100 residents did not reduce and even insignificantly increased (by 0.1 per cent), which shows that the service providers on the markets reviewed the pricing of retail services and, taking the consumers possibilities into consideration, adapted service packages to the changed consumers needs and reduced the service prices.
1500 12 7,9
139,4
146,2 1389
149,9 1355
149,0
150,7
160 140
1000
1174
1 236 1126 984
120 100 80 60 354,9 302,6 40 20
5 00
443,7
424,6
412,7
399,7
23,5 2005
23,4 2006
23,7 2007
23,4 2008
2 2,5 2009
22,6 2010
Reven ue s from provisio n of public mo bile teleco mmu nicatio ns n etwo rks an d se rvice s Reven ue s from provisio n of public fixed teleco mmunications netwo rks and se rvice s Nu mbe r of active public mo bile tele co mmu nicatio ns s ub scr iber s pe r 1 00 resid en ts Nu mbe r of pu blic fixe d telecommu nicatio n lin es p er 1 00 res id en ts
Figure 2. The revenues from provision of public fixed and mobile telecommunications networks and services (LTL million) and fixed and mobile telecommunications penetration in 20052010
Source: RRT
Despite the reduction of the electronic communications sector, the Internet services segment in the information and communication technologies (hereinafter referred to as the ICT) sector grew continuously in 2010 the retail Internet access market grew by 10.5 per cent, i. e. the number of subscribers using Internet access grew by 83,540 (see Figure 3).
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1000,00 800,00 600,00 400,00 581,86 200,00 0,00 2006 2007 2008 2009 The number of Internet access service subscribers, thousand 2010 417,53 709,79 796,05 879,58
Figure 3. The number of Internet access service subscribers in 20062010

Source: RRT
At the end of 2010 the penetration of the Internet, provided over broadband communication, reached 27.1 per cent of the residents (see Figure 4), which amounted to approximately 63 per cent of penetration among households. Almost all the Internet access services were provided over broadband communication (99.8 per cent). The growing penetration and reducing revenues show that intensive competition exists on the retail broadband market, which is advantageous for the consumer due to the ultimate reduction of service prices.
500 23,8 400 17,1 300 12 200 6 100 213 0 2005 2006 2007 2008 2009 Revenues from provision of Internet access services Number of broadband subscribers per 100 residents 265 313 384 413 21,1
27,1
30
20
10 406 0 2010
Figure 4. The revenues from provision of internet access services (LTL million) and the number of subscribers, using broadband technologies, including those connected over mobile network per 100 residents in 20052010
Source: RRT
After the reduction of investment into the electronic communications sector, which lasted for two years, a certain recovery was observed in 2010: the investments, made by market operators, grew by 3.8 per cent (see Figure 5).
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700 671 2695 550 2029 400 387 350 310 250 273 277 299 311 1000 500 100 2001 2002 2003 2004 2005 2006 2007 2008 2009 Total revenues of the electronic communications market Investment into the electronic communications infrastructure 2010 0 375 1500 2137 461 2000 2516 3125 2974 2884 2574 2500 3000 3500
Figure 5. The dynamics of value of the electronic communications sector and investment into the electronic communications infrastructure in 20012010, LTL million
Source: RRT
The continuous operators investment into the next generation fibre technologies determines the distribution of technologies, used by the subscribers on the retail broadband market (see Figure 6). The services, provided over fibre, keep their leading positions; in addition, the access, provided over wireless communication lines, becomes more and more popular.
2010
35,0%
24,4%
2,8% 5,1%
10,0%
0,1%
2009
33,0%
29,5%
3,5% 6,8% 6,5% 0,2%
2008
23,5%
36,9%
6,2%
9,1%
6,3% 0,2%
2007
16,3%
39,8%
10,8%
11,2%
8,8%
0,3%
0% Fibre lines xDSL
20% LAN
40% Cable TV networks
60%
80%
100% Leased lines
Wireless communication lines

*
Figure 6. The distribution of subscribers against the technologies , used for provision of retail broadband services in Lithuania, per cent, at the end of time periods
*
The evaluation of use of technologies was performed according to the number of subscribers, who used different technologies Source: RRT
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In 2010 the number of fibre lines grew by 21 per cent (see Figure 7 and Table 1) in Lithuania. According to the data, published by FTTH Council Europe, Lithuania, in terms of the number of households, connected to the Internet over fibre, still ranks first within the EU: at the end of 2010 Lithuania, which reached 21 per cent of fibre penetration, surpassed Sweden (13 per cent), Norway (12 per cent) and Slovenia (11 per cent) . According to the data, published by FTTH Council Europe in 2011, Lithuania ranked second within the EU in terms of increase of penetration (at the top stands Bulgaria, where the penetration grew by 8 per cent during the year, in Lithuania by 3.3 per cent). Lithuania ranks sixth in the world in terms of the said indicator
2 1
350000 FTTH 300000 250000 200000 150000 100000 50000 52.664 0 12.937 2005 * 2006 * 2007 * 94.700 15.126 2008 51.703 2009 2010 148.013 91037 202.119 216.640 FTTB
*The number of subscribers, to whom Internet access is provided by FTTx
Figure 7. The dynamics of the number of local fibre lines in 20052010 Source: RRT In addition, in the report of broadband study, performed by Oxford University for several years in a row, analyzing the readiness of different countries to satisfy consumer expectations for innovative quality services in the future , as "ready for tomorrow", in 2010 Lithuania also found itself in the company of the most advanced countries, such as South Korea, Japan and Sweden and was among the fourteen most ready countries (71 countries were evaluated totally). The rapid implementation of new technologies in Lithuania did not remain unnoticed by one of the most famous group of analysts, i. e. The Economist Group. The report on digital economy rankings, produced by the said group, published in cooperation with the specialists of IBMs Institute for Business Value , included Kaunas, together with three Japans and one South Koreas city among the worlds top five cities in terms of the highest quality of broadband communication.
4 3
The Internet access at: http://www.ftthcouncil.eu/documents/press_release/2010/PR2010_EU_Ranking_mid_2010_Final.pdf [last viewed 23 March, 2011]. 2 The Internet access at: http://www.ftthcouncil.org/en/newsroom/2011/02/10/global-ftth-councils-latest-country-ranking-shows-furthermomentum-on-all-fiber-.[last viewed 23 March, 2011]. 3 The Internet access at: [last viewed 23 March, 2011]. http://www.sbs.ox.ac.uk/Documents/broadband%20study/Third%20annual%20broadband%20study%202010.pdf 4 The Internet access at: http://graphics.eiu.com/upload/EIU_Digital_economy_rankings_2010_FINAL_WEB.pdf [last viewed 23 March, 2011].
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Table 1. Distribution of European countries in terms of the number of households, connected to the Internet over fiber lines in 2009-2010 and the penetration in 2010, per cent
Position December 2010 Penetration as of the end of 2010 20.96 12.93 12.03 11.19 8.73 7.84 5.33 4.97 3.21 3.02 December 2009 June 2009
1. Lithuania 2. Sweden 3. Norway 4. Slovenia 5. Slovakia 6. Denmark 7. Estonia 8. Bulgaria 9. Finland 10. The Netherlands Source: FTTH Council Europe, 2010
Lithuania Sweden Norway Slovenia Estonia Denmark Slovakia Finland The Netherlands Italy
Sweden Norway Slovenia Andorra Denmark Iceland Lithuania The Netherlands Slovakia Finland
As the transition to digital broadcasting is foreseen on 29 October, 2012, the abolition of analogue broadcasting is going to change the television segment. According to the data of RRT, at the end of 2010 approximately 47 per cent of all households used paid television services and almost 44 per cent of paid television subscribers received television signals digitally. Compared to 2009, the number of subscribers of paid digital television (not including satellite television) grew by approximately 24 per cent during the year. The successfully developing next generation broadband networks result in re-broadcasting of television programmes in the IPTV format getting more popular. At the end of 2010 the IPTV services were provided by 8 companies, 65,900 subscribers viewed television programmes in this way and, compared to the number of subscribers at the beginning of the year, one can see that the said number grew by nine per cent. In the beginning of 2010, there was the tender regarding the right to commence re-broadcasting of three HDTV programmes in Kaunas, therefore the said programmes will be broadcasted not only in Vilnius. On 31 December, 2010, 71 undertakings had the right to provide postal and courier services, including 12 undertakings providing postal and 71 courier services. The first symptoms of recovery were felt in the postal sector in 2010: the total revenues from the postal and courier services, received in 2010, compared with those, received in the corresponding time period in 2009, grew by 5.6 per cent and reached LTL 238.6 million. The revenues from the courier activities grew by 5.6 per cent, the revenues from postal activities by 5.5 per cent (see Figure 8). 300 200 91,6 100 0 2005 2006 2007 2008 2009 2010 69,9 78,3 104,6 129,9 90,2 98,4 160,2 97,7 128,4 103,0 135,6
Revenues from postal services
Revenues from courier services
Figure 8. The revenues from postal and courier activities in 20052010, LTL million
Source: RRT
Compared to 2009, in 2010 the total revenues, received by postal services operator Lietuvos Patas AB reduced by 13.9 per cent, which mostly resulted from the reduction of revenues, received from other (non postal and non courier services) activities.
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CHANGES IN THE LEGAL FRAMEWORK OF REGULATION OF ELECTRONIC COMMUNICATIONS AND POSTAL SECTORS
The year 2010 was dedicated to implementation of 4 directions of improvement of the legal framework of regulation of electronic communications and postal services: Ensuring of efficient competition on the electronic communications market and management and use of electronic communications resources by preparing the corresponding amendments to the legal acts More efficient safety of the society in the electronic space by amending the existing legal regulation Active participation in transposition and implementation of the EU legislation, harmonising the national legislation in the electronic communications and postal sectors Ensuring of legal certainty when adopting the legal acts, relating to supervision of undertakings activities, performed by RRT
RRT is engaged in the implementation of the provisions of the Law on Electronic Communications of the Republic of Lithuania (hereinafter referred to as the Law on Electronic Communications) and the Postal Law of the Republic of Lithuania (hereinafter referred to as the Postal Law), building the legal system of technical and economic regulation and supervision of the ICT as well as postal and courier service sectors. In 2010 RRT prepared the draft of the amendment of Resolution No. 1492 of the Government of the Republic of Lithuania of 25 November, 2004 On the Approval of the Model of Implementation of Digital Television in Lithuania. The document is aimed at smooth transition to the new advanced digital television broadcasting technologies, ensuring more efficient use of radio frequencies and allowing for provision of a greater number of more diverse services. For the purpose of reaching efficient management and use of electronic communications resources, by orders of the Director of RRT the Radio Frequency Use Plan and the Rules for the Allocation and Use of Telephone Numbers as well as the National Telephone Numbering Plan were amended. Apart from other things, the new changes created the prerequisites for more efficient use of the radio spectrum, encouraging the competitive environment and ensuring the possibility for the persons in the Republic of Lithuania to provide new harmonized social services by telephone numbers 116006 and 116117, used in all the EU Member States. In 2010 the package of legal acts, aimed at ensuring the societys security against dissemination of negative content over public computer networks was prepared. In cooperation with the Ministry of Transport and Communications RRT prepared the following documents: The draft of the Law on the Amending of Articles 246 and 247 Law of the Republic of Lithuania;
10 5
of the Code of Administrative Violations of
5 Order No. 1V-489 of the Director of RRT of 22 April, 2010 On the Amending of Order No. 1V-1160 of the Director of the Communications Regulatory Authority of the Republic of Lithuania of 24 December, 2008 On the Approval of the Radio Frequency Use Plan (Official Gazette Valstybs inios, 2010, No. 48-2367), Order No. 1V-1194 of the Director of RRT of 16 December, 2010 On the Amending of Order No. 1V1160 of the Director of the Communications Regulatory Authority of the Republic of Lithuania of 24 December, 2008 On the Approval of the Radio Frequency Use Plan (Official Gazette Valstybs inios, 2010, No. 150-7701), Order No. 1V-363 of the Director of RRT of 23 March, 2010 On the Amending of Order No. 1V-1104 of the Director of the Communications Regulatory Authority of the Republic of Lithuania of 13 December, 2005 On the Approval of the Rules for the Allocation and Use of Telephone Numbers and the National Telephone Numbering Plan (Official Gazette Valstybs inios, 2010, No. 35-1697).
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The draft of the Law on the Amending of Articles 7 and 9 of the Law On Protection of Minors against Negative Influence of Pubic Information of the Republic of Lithuania; The draft of the Resolution of the Government of the Republic of Lithuania On the Amending of Resolution No. 290 of the Government of the Republic of Lithuania of 5 March, 2003 On the Approval of the Control of the Information, which May not be Published in Public Computer Networks and the Procedure of Dissemination of Restricted Public Information; The draft of the Resolution of the Government of the Republic of Lithuania On the Amending of Resolution No. 2108 of the Government of the Republic of Lithuania of 31 December, 2002 On the Approval of the Requirements to Providers of Certification Services, Issuing Qualified Certificates, the Requirements for Electronic Signature Equipment, the Procedure of Registration of Providers of Certification Services, Issuing Qualified Certificates and the Regulations for Supervision of the Electronic Signature; The draft of the Resolution of the Government of the Republic of Lithuania On the Institution of Supervision of the Electronic Signature; The draft of the Resolution of the Government of the Republic of Lithuania On the Amending of the Resolution No. 436 of the Government of the Republic of Lithuania of 28 April, 2010 On the Approval of the Description of the Procedure of Use of the Filtering Tools, Obligatory to be Implemented at the Locations of Access to Public Computer Networks (the Internet). In 2010 careful attention was devoted to harmonising the national legal regulation on the EU level. RRT actively prepared the draft of the Law on the Amending of the Law on Electronic Communications of the Republic of Lithuania, aimed at transposition of the directives, adopted by the European Parliament and the Council on 25 November, 2009, into the national legal system of Lithuania . On 9 December, 2010 the Law on the Amending of Article 3 of the Postal Law and Supplementing the Postal Law with Articles 13, 14, 15, 16 and 17 was adopted (Official Gazette Valstybs inios, 2010, No. 153-7785). The law, which was prepared and coordinated with an active participation of RRT, establishes the imposition of the corresponding sanctions to the persons who fail to observe the requirements provided by legal acts, thus creating favourable conditions for the improvement of the competitive environment in the area of provision of postal and courier services. Resolution No. 745 of the Government of the Republic of Lithuania of 11 July, 2007 On the Approval of the Price Caps for Universal Postal Services, the draft of which had been prepared by RRT, was amended in 2010. The provisions of the said Resolution were harmonised with the Law on Value Added Tax of the Republic of Lithuania, by reducing the prices for sending the parcels weighing up to 10 kg, registration and evaluation of postal items for consumers of universal postal services. In the area of supervision of undertakings activities, last year RRT adopted the Rules for Inspection of Activities of an Undertaking. The said Rules establish the criteria for drawing the plans for inspection of the activities of the persons, who provide postal and/or courier services, and the persons, who are engaged in
6
6 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 services, 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 and 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. In addition, RRT participated in preparation of the draft of the Law on the Amending of the Postal Law of the Republic of Lithuania, for the purpose of implementation of the Directive 2008/6/EC of the European Parliament and of the Council of 20 February, 2008, amending Directive 97/67/EC.
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electronic communications activities, the basis, procedure and duration of the planned and non-planned inspections of activities of undertakings, performed by RRT. In addition, by order of the Director of RRT, the list of legal acts, regulating the activities of RRT and consolidating the requirements for supervision of electronic communications and postal activities performed by RRT, was approved and published on the webpage of RRT. The purpose of the said legal act is to keep the undertakings and the society informed on the activities of RRT, the imposed and obligatory individual requirements. RRT supervises the observance of the said requirements and is responsible for their implementation.
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SUPERVISION OF ACTIVITIES OF UNDERTAKINGS
In 2010 RRT, for the purpose of implementation of the Governments policy of optimizing the supervisory functions performed by institutions and in order to perform supervision of activities of undertakings, observed the principles of the minimum and proportionate supervision burden, non-discrimination, planning, publicity, provision of methodical assistance and separation of functions, established by the Law on Public Administration of the Republic of Lithuania. In order to implement the new provisions of public administration of the Republic of Lithuania in due time and ensure the transparency of the performed supervision and hinder the activities of the supervised undertakings as little as possible, RRT approved the new edition of the Rules for Inspection of Activities of an Undertaking. The said Rules establish the criteria for drawing the plans for inspection of the activities of the persons, who provide postal and/or courier services, and the persons, who are engaged in electronic communications activities, the basis, procedure and duration of the planned and non-planned inspections of activities of undertakings, performed by RRT. Referring to the Law on Public Administration of the Republic of Lithuania, RRT updated its webpage with a new section Supervision of Activities of Undertakings , which publishes all the information, relevant to undertakings: the list of the legal acts, establishing the supervision of activities of undertakings and imposition of sanctions; the rules for inspection of activities of undertakings; the schedule of planned inspections of activities of postal and courier and electronic communications services; the section will also contain the FAQ, presenting the questions, most frequently asked by undertakings, summaries of response and the undertakings opinion of the actually performed inspections of activities. It should be noted that in 2010, for the purpose of reducing the administrative burden for the undertakings, which increases in case the undertaking is inspected by several institutions and taking into consideration the provision that the process of regulation of supervision should be coordinated horizontally between all the institutions, performing the supervisory function, RRT carried out inspections according to the joint plan of RRT, State Energy Inspectorate under the Ministry of Energy and the National Control Commission for Prices and Energy for the inspection of activities of providers of postal and courier and electronic communications services and energy companies in the second half-year of 2010, which was approved by Public Infrastructures Committee on 11 August, 2010. RRT took specific measures in order to reduce the administrative burden and on 9 August, 2010 declared null and void the Rules for Use of Radio Frequencies/Channels in the Networks of Receipt of Cable and Microwave Multi-Channel Television, approved by Order No. 1V-1 of the Director of the Communications Regulatory Authority under the Government of the Republic of Lithuania of 6 January, 2004, thus reducing the market entrance barriers for the new providers of cable television and microwave multi-channel television services. A person, wishing to launch a cable television network, will not have to prepare a project for the electromagnetic part of the network, coordinate it with RRT, provide the RRT with the technical information on the network laid,
7
Supervision of activities of undertakings [last viewed on 23 March, 2011]. The Internet Access at: http://www.rrt.lt/lt/veikla_23/veiklossritys/ukio-subjektu-veiklos-qwp9.html
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inform RRT on the specific radio frequencies/channels, planned to be used in the network, receive the written confirmation from a representative, authorized by RRT that the network corresponds to the project and the technical requirements established by RRT. In addition, it should be reminded that, upon entering into effect of the Law on the Amending and Supplementing of the Postal Law and after RRT approved the Rules for Provision of Postal and Courier Services in 2009, no prior authorisations are needed for the provision of postal services, therefore the administrative requirements were simplified. In order to simplify the administrative procedures, electronic tools are commenced to be used. In 2010 the electronic registration of radio relay links was implemented, which greatly simplified the procedure of registration of undertakings. It should be noted that, when performing the supervision of undertakings, RRT focused not on the official registration of and penalizing for violations, but rather performed the risk analysis and dedicated the utmost attention to the cases, where a greater economic and social damage was probable. No sanctions were imposed to undertakings in 2010, as the result of the inspections, performed by RRT.
Supervision of the electronic communications market

RRT consults market players (and arranges meetings, if necessary) on the issues of interconnection of electronic communications networks and provision of access in order to ensure that the legal acts, regulating electronic communications activities, are not violated and that the undertakings, having a significant market power, perform their obligations. In 2010 RRT replied to 24 inquiries regarding electronic communications activities. Replying to undertakings inquiries, RRT most frequently explained the general conditions for engaging in electronic communications activities and the main provisions of interconnection of electronic communications networks. The undertakings, wishing to receive answers to their questions, can present the inquiry at the webpage of RRT in the section Questions. The separate categories of the webpage, describing individual areas of RRT activities, contain FAQ, presenting summarized consultations on the issues, addressed to RRT (for instance, regarding the common use of infrastructure, access, including provision of networks interconnection, etc.). According to the Law on Public Administration of the Republic of Lithuania, all the replies of RRT are provided the status of a public consultation. When performing the supervision of the electronic communications market, in 2010 RRT attempted to actively encourage market self-regulatory mechanisms and common use of infrastructure, which helps market participants to incur less expenses.
General supervision of undertakings, engaged in electronic communications activities

In 2010, according to the plan approved by the Director of RRT, planned inspections of activities of the undertakings, providing electronic communications services, were performed. In 2010 the officers, authorized by RRT, inspected 32 undertakings. The most frequent violations of legal acts, noticed during the inspections were the failure to observe the conditions of typical contracts with consumers, failures to publish the network interface specifications at their webpages or failures to publish the data of technical events, registered and stored by providers of electronic communications networks and services at RRT secure access webpage. All the corresponding notices, provided by the authorized officers, were taken into consideration and the nonconformities were eliminated. Six non-planned inspections of undertakings were performed upon receiving
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complaints on the allegedly unauthorized installation of infrastructure as well as other complaints and information on the allegedly unauthorized electronic communications activities. The complaints regarding the allegedly unauthorized installation of infrastructure proved to be true. The violations were eliminated upon requirement by the authorized officers. When examining the complaints regarding allegedly unauthorized electronic communications activities, in one case the dispute between the provider of electronic communications services and the building owner was examined in the court, in the other case, after the requirement of the authorized officer, the undertaking, providing electronic communications services, commenced providing reports on the performed activities and provided all the reports for the previous time period of activities. In order to reach the good practice where undertakings present to RRT their reports on the performed electronic communications activities in due time (in observance of the order of the Director of RRT on the approval of the description of the general conditions for engaging in electronic communications activities, undertakings must regularly, each quarter, provide to RRT the information on the performed activities). In case an undertaking fails to provide the necessary information in due time, such undertaking is reminded on the necessity to provide the corresponding report and the deadlines for provision of such information by electronic mail 7 10 days before the expiry of the deadline for provision of the reports according to the procedure, prescribed by the aforementioned document. 125 undertakings were admonished for the failure to provide the quarterly reports, 120 of them provided their reports after the notification (the remaining ones did not commence performing their activities or were not found at any address, known by RRT). 61 undertakings were admonished for the failure to provide market study questionnaires in due time. 1 undertaking was admonished for the failure to provide the market study questionnaires in writing. All the market study questionnaires were provided after the notifications. Attention should be drawn to the fact that the cooperation between RRT and the Department of Statistics allows for reducing undertakings burden of provision of regular reports on the performed electronic communications activities, since RRT transfers information to the Department of Statistics. In observance of the main objective/principle of supervision, establishing that undertakings must observe the set requirements, RRT, first and foremost, observed the necessity of shaping the good practice, performing consultations and imposing such sanctions as notifications and did not impose any economic sanctions to providers of electronic communications services in 2010. The economic sanctions, imposed in 20062008, the planned inspections of undertakings, performed each year, and the consultation of undertakings during the inspections reduced the number of violations and undertakings have lately observed the requirements, established in the Law on Electronic Communications and other legal acts more responsibly. It should be noted that the licensing of telecommunications activities, which was abolished already in 2003, ensured that undertakings do not need any licences for engaging in electronic communications activities it is sufficient to provide the notification on the commencement of performance of electronic communications activities.
Supervision of the postal and courier services market

When performing the supervision of the postal and courier service markets, i. e. when supervising the observance of the requirements, provided by the legal acts, regulating the activities of providers of postal and courier services by the market players, RRT performed 87 planned inspections of postal and courier service providers.
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During the planned inspections the most scrupulous attention was drawn to preventive inspections of the activities of the companies, which had not been inspected by RRT before, the companies, which allegedly provided courier services (i. e. advertised such activities without informing RRT on the commencement of provision of activities) and the companies, whose service quality attained complaints. During the inspections the undertakings were provided comprehensive consultations, stressing the main requirements for operation on the postal and courier service market, provided by legal acts. The companies were admonished with regard to obligatory identification/sealing of postal items, were checked for availability of seals, compliant with the requirements, provided by legal acts. The companies, providing courier services, were admonished regarding the obligatory handing of postal items to the addressee upon signature, the prices of offered services were examined at the companies, providing postal services for the purpose of establishing whether they are compliant with the requirements, foreseen by the Postal Law to the prices of reserved postal services, the companies were admonished regarding the potential violations of the reserved area when delivering postal items, weighing up to 50 g to the mailboxes for the received correspondence. In 2010 RRT performed inspections of points of access to universal postal services and checked whether Lietuvos Patas AB observed the requirements, established by the regulatory legal acts. As Lietuvos Patas AB is optimizing its public postal network, more and more stationary points of access to universal postal services in rural areas are being replaced by mobile post offices, where the universal postal services are provided to consumers only during certain defined time. In 2010 RRT continued the inspections of mobile points of access to universal postal services. In 2011 RRT is going to continue monitoring whether the universal postal services, provided at mobile post offices, correspond to consumers needs. Four non-planned inspections of the activities of the companies, providing postal and/or courier services, were initiated and performed against the complaints and other information, received from consumers and other undertakings. No essential violations were identified. Some companies are included into the inspection plan for 2011 in order to evaluate the way they have eliminated the identified non-conformities. 85 undertakings were admonished verbally for the failure to provide quarterly and annual reports, 81 of them provided the reports thereafter. No reports on administrative violations of law for violations of the requirements for provision of postal and/or courier services were issued in 2010 (see Figure 9). 2010 2009 2008 2007 2006 0 1 2 4 6 8 10 12 6 0 7 10
Figure 9. The development of issued reports on administrative violations of law in 20062010

Source: RRT
The conclusion can be made that the measures, imposed in 2006 2009, the consistent planned inspections of undertakings and consulting of undertakings during the inspections (totally 40 undertakings were consulted in
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2010) reduced the number of violations and the undertakings have been observing the requirements, established in the Postal Law and other legal acts more responsibly. It should be noted that upon entering into effect of the Law on the Amending and Supplementing of the Postal Law and after RRT approved the Rules for Provision of Postal and Courier Services in 2009, no prior authorisation for provision of postal services is needed, therefore the administrative requirements became simpler. In order to engage in the provision of postal and courier services, one just needs to fill in the notification and inform RRT on the intention.
The results of surveillance of radiocommunication equipment and telecommunications terminal equipment market
For the purpose of ensuring the availability of radiocommunication equipment and telecommunications terminal equipment on the market of the Republic of Lithuania which is high quality, safe and compliant with the EU requirements, RRT performs the surveillance of the market of the said equipment, in observance of the Technical Regulations of Radiocommunication Equipment and Telecommunications Terminal Equipment (hereinafter referred to as the Regulations), establishing the conditions and main requirements for the free movement, provision to the market and the use of radiocommunication equipment and telecommunications terminal equipment as well as the obligations, relating to the information on specification of interfaces, etc. The Regulations implement the EU Directive 1999/5/EC in Lithuania. When performing the surveillance of the market of radiocommunication equipment and telecommunications terminal equipment, RRT cooperates with the Customs Department. 4585 radiocommunication equipment and telecommunications terminal equipment units, brought into the country, were analyzed according to the data, received from the Customs Department. All the data have been entered into the database. Compared to 2009, in 2010 the number of equipment brought in from the third countries remained almost unchanged (see Figure 10).
2010 2009 2008 2007 0 2000
4 585 4 085 6 700 7 830
4000
6000
8000
10000
Figure 10. The number of types of equipment, brought into Lithuanian market in 20062010
Source: RRT
It should be noted that the number of equipment, which did not have the CE labelling and declaration of conformity remained almost unchanged (see Table 2). In 2010, 169 types of radiocommunication equipment and telecommunications terminal equipment were examined for compliance with the administrative requirements, provided by the Regulations (see Table 2): 61
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types of equipment were examined in Vilnius, 45 types in Kaunas and 63 types of equipment in other cities and towns. When performing the examination the manufacturers of the equipment, their authorized representatives, suppliers and sellers were consulted on the relevant issues, pertaining to the Regulations. 68 types of equipment failed to comply with the requirements, provided by the Regulations, including 7 types of equipment, which did not bear the CE labelling and declarations of conformity. The importers suspended the provision of the said equipment to Lithuanian market upon receiving the request to do so by RRT. 61 types of equipment did not have declarations of conformity during the inspection. Later the importers provided the declarations for 56 types of equipment and suspended the provision of 5 types of equipment, which did not have declarations of conformity to Lithuanian market. The main reason for the equipments failure to comply with the requirements, provided by the Regulations, is the absence of the declaration of conformity, as required by the Regulations, although the manufacturers have the declarations and are able to provide them in no time after the requirement to do so. Provision of 33 types of equipment to the market without the prior notification of RRT on the issue in due time, as prescribed by the Regulations, was established. All the importers provided their notifications after the requirement to do so. RRT continues monitoring and inspection of Internet trade of equipment. In case any incompliance of the declared parameters of the equipment, advertised and offered to consumers with the technical and/or administrative requirements provided by the Regulations is established during the monitoring, RRT contacts the shop with the requirement to discontinue advertising such equipment. 6 Internet shops were inspected, all of them were required to remove the products, failing to comply with the requirements, provided by the Regulations from the webpages (GSM dampers). The requirement was observed 7 models of GSM and GPS dampers were removed. In cooperation with the State Non Food Products Inspectorate, according to the information, provided by the customs, a shipment of mobile telephone sets bearing no CE labelling was examined. The telephones were prohibited from provision to the market. 35 units of equipment of 20 types were taken from the market for laboratory testing. Incompliance of 5 types of equipment with the essential requirements of the Regulations was established, mostly the incompliance of the collateral radiation of the transmitter with the requirements, provided by the standards. In addition, incompliance of the equipment with the requirements, provided by electrostatic discharge resistance standards and increased adjacent channel radiation power, was established during the tests. The actions, foreseen in the Regulations, were taken so that the equipment, failing to comply with the requirements, did not reach the consumers. After the dialogue with the importers and/or manufacturers the provision of the equipment to the market was suspended until the identified deficiencies were eliminated. RRT still awaits the manufacturers replies regarding four equipment units. The identified deficiencies of one type of equipment were eliminated by the manufacturer, after which RRT allowed to recommence the provision of the equipment to the market.
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Table 2. The results of surveillance of radiocommunication equipment and telecommunications terminal equipment market in 20082010
The results of checks Total number of checked equipment units: Radiocommunication equipment Terminal equipment Equipment of both types Incompliant with the requirements The CE labeling and declaration missing The CE marking present The declaration of conformity absent The declaration of conformity present: The provision to the market suspended The notification is not obligatory The notification is obligatory: Notifications presented by Notifications not presented by Information on terminal equipment interfaces is presented Information on the usage of terminal equipment is presented Information on the usage of radiocommunications equipment is presented
Source: RRT
2008 273 223 22 28 122 26 247 96 177 26 161 112 37 75 29 21 217
The number, pcs. 2009 2010 204 169 170 142 6 5 28 22 79 68 7 7 197 162 72 61 132 101 22 14 59 97 111 62 51 29 60 33 35 28 24 20 152 112
In the 3
rd
quarter of 2010 RRT participated in the fifth market surveillance campaign according to the
Directive 1999/5/EC, aimed at verification of the compliance of radiocommunication equipment to the administrative and technical requirements according to the technical files, provided by other countries. It should be noted that the regulation of the radiocommunication equipment and telecommunications terminal equipment market in the European Union, including Lithuania, is performed according to the EU Directive 1999/5/EC. In 2010 the provisions of the said directive were reviewed on the EU committee level. Attempts are made to get a more accurate description of the procedures of evaluation of conformity and provision of radiocommunication equipment and telecommunications terminal equipment into the EU market, thus reducing the number of administrative violations of Directive 1999/5/EC (which, in most cases, are only formal) and develop or abolish the administrative obligations, which appeared to be inefficient or not clear. In order to reduce the number of radiocommunication equipment and telecommunications terminal equipment, failing to comply with the essential requirements, available on the EU market, the new EU Directive will provide a clearer (stricter) definition of the responsibility of equipment providers to the market and the sellers of equipment and foresee clear requirements for the Member States market surveillance institutions and their mutual cooperation. Many times the representative of the Republic of Lithuania provided the suggestions regarding the improvement of the project, for instance, regarding the procedure of notification of specification of interfaces to the Commission, application of equipment conformity evaluation modules, inclusion of TV sets into the area of application of the R&TTE Directive, the procedure of evaluation of conformity of software, etc.. Since the Regulations, applied in Lithuania, implement the provisions of the EU Directive 1999/5/EC, it is not viable to review the Regulations until the new regulation on the EU level is established.
Surveillance of the market of electromagnetic compatibility of equipment and devices

When performing the surveillance of the market with regard to compliance of equipment and devices with the administrative requirements, provided by the Technical Regulations of Electromagnetic Compatibility, implementing the EU Electromagnetic Compatibility Directive 2004/108/EC (hereinafter referred to as the EMC
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Regulations), 44 types of equipment were examined, out of which 24 units of equipment of 18 types were taken for laboratory testing. All the tested equipment was compliant with the EMC Regulations. In the 1
st nd
and 2
quarter of 2010 RRT participated in the Third Joint Cross Border Electromagnetic
Compatibility Market Surveillance Campaign EMC MSC 2009/10, during which the national market surveillance institutions in coordination perform verification of the group of home electronic appliances, existing on the EU market (television sets, DVD and BluRay players). The products are verified for compliance with the electromagnetic compatibility requirements, applicable in the EU. During the Third Joint Cross Border Electromagnetic Compatibility Market Surveillance Campaign tests of 159 types of devices were performed, 50 per cent of which failed to comply with the requirements. RRT tested 11 types of devices, existing on the Lithuanian market (5 TV sets and 6 DVD players) for compliance and established incompliance of 4 types of devices with the essential requirements, provided by the EMC Directive. The actions, foreseen in the EMC Regulations, were taken so that the devices, failing to comply with the requirements, did not reach the consumers.
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PROTECTION OF CONSUMER RIGHTS AND LEGITIMATE INTERESTS Protection of consumer rights and legitimate interests in the electronic communications sector
Supervision of the universal services
Referring to the Rules for Provision of Universal Electronic Communications Services , provision of universal services must be ensured to all the electronic communications service users on the entire territory of the Republic of Lithuania. TEO LT, AB, the undertaking having significant power on the public fixed telecommunication networks and services market, is obliged to provide the following universal services: public telecommunication services at fixed location; public telecommunication services provided by public payphones; services of information provision about the subscribers to public telecommunication services; offer possibility for the disabled or persons having special needs to use electronic communication services. In observance of the Rules for Provision of Universal Electronic Communications Services, in 2010 RRT once again announced the proposal for the providers to express their wish to provide universal services. No undertakings wishing to provide universal services without any compensation were present in 2010. In 2010 TEO LT, AB provided universal services not exceeding the price cap set for the universal electronic communications services. In 2010 RRT announced a Report on the Provision of Universal Electronic Communications Services and the Price Changes Observed in 2009. The changes which occurred in 2010 are to be published by 1 May 2011. In March 2010 RRT commissioned UAB Spinter Tyrimai to perform a representative survey to determine whether the scope of the provided services, defined by the Rules for Provision of Universal Electronic Communications Services, corresponds to the needs of the universal electronic communications service users. The survey showed that: 39 per cent of respondents use the public fixed telecommunication services, provided by the universal services provider; 51 per cent of the respondents, using fixed telephone communication, stated that at home they use the Internet provided over fixed telephone communication lines; 73 per cent of respondents are satisfied with the received public fixed communication services; 4 per cent of the country's residents stated that they used public payphones at least several times per year (95 per cent did not use public payphones at all); 57 per cent of the respondents, using public payphones, expressed the opinion that the number of public payphones was sufficient, 27 per cent did not have any opinion on the issue; 55 per cent of the respondents stated that they searched for information on telephone numbers: 6 per cent frequently (several times per week), 23 per cent - sometimes (several times per month);
8
The Rules for Provision of Universal Electronic Communications Services were approved by Resolution No. 162 of the Government of the Republic of Lithuania of 15 February, 2006.
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54 per cent of the respondents, who searched for information on telephone numbers, stated that most frequently they searched for telephone numbers by calling 118; 24 per cent mentioned the Internet information directory service websites. Taking into consideration the results of the survey, it may be concluded that in 2010 universal electronic communications services were accessible and corresponded to the needs of users of universal services. It should be noted that public telecommunication services at a fixed location are provided on the entire territory of the Republic of Lithuania. At the end of 2010, 1,185 public payphones were available in cities and towns and 165 public payphones in other dwelling settlements.
The quality of Internet access services, provided over mobile networks

In 2010 RRT, for the purpose of informing the users on the quality of the provided electronic communications services, performed the tests of transmission/receipt of Internet access data in the public mobile networks of the companies, operating on the territory of Lithuania, i. e. Bit Lietuva UAB, Omnitel UAB and Tele2 UAB (hereinafter referred to as the Network). To perform the tests, RRT used measurement equipment, installed in a special vehicle. The tests were performed in the most populated cities and towns of Lithuania. The number of tests in each city or town was selected in proportion with the number of residents. The data communication tests were performed by imitating the connection of random Internet access user to the Network for the purpose of using the wireless Internet access. The tests were performed on business days and during business hours. The transmission/receipt of data was performed only by using the station, intended for the tests and administered by RRT, which is installed at the Internet service providers data exchange node, thus creating the same conditions for all the service providers. Most mobile Internet access tests, performed in 2010, were performed in the UMTS communication networks. However, in the locations, where the system could be reached, the measurements were performed within the GSM communication systems. The percentage share of the measurement: 2.6 per cent of tests in the GSM communication system were performed in the network of Bit Lietuva, 0.2 per cent in the network of Omnitel and 8.9 per cent in the network of Tele2 calculating of the total of the tests, performed in the network of the corresponding service provider. On the basis of the performed tests, during which one 3 Mb file was sent, the average values of quality indicators were calculated. The values are presented in Table 3 and Figure 11. Table 3. The values of Internet access service quality indicators when sending a file
Service provider The number of attempts to send a file Unavailability of the HTTP services, per cent The average HTTP data transmission/receipt speed rate, kbps The median*, kbps Standard deviation, kbps 20 per cent quintal/percentile, kbps The share of unsuccessful HTTP data transmission/receipt sessions, per cent Bit Lietuva 1 042 1.16 1 592.98 1 774.60 673.03 913.66 3.02 Omnitel 1 045 0.58 1 221.18 1 199.47 427.05 863.99 3.99 Tele2 1 038 2.35 1 156.85 1 251.66 390.65 932.80 5.82
* The median is the value, no 50 per cent smaller and no 50 per cent bigger than 50 per cent of the values of members of the variation line (the line of tests values, put in the ascending order).
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HTTP average data transmission (receipt) speed
0
Lietuva Vilnius Kaunas Klaipda iauliai Panevys Alytus Marijampol Maeikiai Jonava Utena Kdainiai Teliai Visaginas Taurag Ukmerg Plung Kretinga ilut Radvilikis Palanga Druskininkai Rokikis Gargdai
kb/s 2500
500
1000
1500
2000
Bit Lietuva
Omnitel
Tele2
Figure 11. The values of average HTTP data transmission/receipt speed rate in cities and towns.
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On the basis of the performed tests, during which an ETSI recommended standard website Copernicus of 204 kB intended for such tests, was downloaded, the average values of quality indicators were calculated. The said values are presented in Table 4. Table 4. The values of Internet access service quality indicators when sending a webpage
Service provider Number of attempts to send the website Unavailability of the HTTP services (when sending the website), per cent HTTP average data communication speed rate (when sending the website), kbps The median, kbps Standard deviation, kbps 20 per cent quintal/percentile, kbps The share of unsuccessful HTTP data transmission sessions, per cent (when sending the website) Bit Lietuva 1,019 0.7 85.07 82.82 24.79 66.07 0 Omnitel 1,016 0.91 102.85 103.72 30.72 74.85 0 Tele2 1,014 3.91 59.4 55.78 19.24 45.38 0
Public fixed telephone communication services

To verify whether the provider of the universal services does not exceed the threshold values, established for the corresponding services, in 2010 RRT performed control measurements of call service quality in the network of TEO LT, AB. Evaluation of service quality indicators is performed in observance with the methodology, provided in the annex to the Rules for Data Provision and Quality Indicators of Public Telephone Communications services, provided at a fixed location . In 2010 RRT performed 18,050 test calls in the public fixed telephone communication network of TEO LT, AB. The received results of measurements showed that the quality indicators of the public fixed telephone communications services, provided by TEO LT, AB, i. e. the unsuccessful call ratio and the setup time, do not exceed the threshold values of service quality indicators, imposed on providers of universal services.
9
Cable television networks

In the Republic of Lithuania cable television networks are installed in all the major cities and in the majority of smaller towns. According to the data of RRT, on 31 December 2010, 405,000 subscribers used cable television services. RRT verifies whether the main technical parameters of cable television networks, determining the quality of transmission of radio and television signals, comply with the normative documents. In 2010, 21 planned tests of technical parameters of cable television networks and 2 investigations of the complaints from service users were performed. During one planned test and during one test intented for investigating a complaint, the technical parameters of the cable television network failed to satisfy the obligatory requirements, provided in the Specification of the
The Rules have been approved by Order No. 1V-261 of the Director of the Communications Regulatory Authority of the Republic of Lithuania of 24 February, 2006 (Official Gazette Valstybs inios, 2006, No. 27-926).
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Requirements for Technical Parameters of Sound Broadcasting and Television Signals Wire Distribution Networks . In both cases the service provider eliminated the deficiencies during the prescribed time period.
10
Investigation of consumers complaints

In 2010 RRT received 590 complaints from electronic communications service users (see Tables 5 and 6), significantly less than in 2009 (the extraordinarily large number of complaints, received in 2009 (1,513) resulted from the fact that one communications service provider changed the conditions of the agreement with most of its subscribers). 70 complaints were provided in regard to the quality of service, 181 regarding billing and 106 with regard to other issues (tariffs, conditions of agreements, number portability, etc.). 32 decisions were made in favour of consumers, 23 in favour of the service provider. In 158 cases, during the investigation of the complaint by RRT, the service provider made the reconciliation decisions in favour of the consumer. 280 consumers requests were responded to according to the procedure, provided by the Rules for Investigation of Persons Requests and their Servicing at Public Administration Institutions, Organizations, and Other Subjects of Public Administration
11
by providing explanations with regard to the consumers inquiry.
In 2010 consumers also applied to RRT by electronic mail or telephone with the request to resolve a dispute, a conflict situation or wishing to receive methodical assistance. In 2010 more than 200 consumers applied to RRT by electronic mail, more than 500 by telephone. Table 5. The reasons for complaints of electronic communications service users in 20052010
Users complaints : Total: With regard to quality With regard to billing With regard to other issues (tariffs, conditions of agreements, number portability, etc.)
*
2005 238 46 146 46
2006 281 42 178 61
2007 362 56 221 85
2008 448 74 229 145
2009 1 513 54 318 1 141
2010 590 70 181 106
Users complaints complaints by natural and legal persons Source: RRT
Table 6. The decisions made by RRT in 20052010 with regard to complaints of electronic communications service users
Decisions: In favour of the consumer In favour of the service provider During the investigation of the complaint by RRT the service provider took the decision in favour of the consumer Response provided according to the procedure, established by legal acts, submitting the explanations with regard to consumer's inquiry The investigation is in progress 2005 25 4 76 2006 16 2 93 2007 25 13 130 2008 4 15 101 2009 3 21 295 2010 32 23 158
99
104
199
216
1050
280
34
66
61
112
144
97
It should be noted that in 2010 complaints with regard to provided bills, billing and application of the service credit limit were dominating. The trend remained where in the course of the process of complaint investigation performed by RRT, providers of electronic communications services, without waiting for the RRT decision, recognized legitimate interests of consumers and made decisions in favour of consumers.
10 The Specification of the Requirements for Technical Parameters of Sound Broadcasting and Television Signals Wire Distribution Networks, approved by Order No. 1V-283 of the Director of the Communications Regulatory Authority of the Republic of Lithuania of 1 March, 2006 (Official Gazette Valstybs inios, 2006, No. 28-963). 11 The Rules have been approved by Order No. 875 of the Government of the Republic of Lithuania of 22 August, 2007 (Official Gazette Valstybs inios, 2007, No. 94-3779).
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Consumer awareness raising
In 2010 a lot of administrative abilities and time expenditure were dedicated to the development of the new RRT website (see Figure 12). When preparing the new version of the website, RRT sought to group and present the information in a way as to ensureg the easiest navigation for the visitors, i. e. business enterprises and consumers. Separate blocks - Electronic communications and Post - were created to help the users to find the relevant information on his rights and responsibilities, pertaining to service usage, service provision conditions, peculiarities of agreements and other useful information. In addition, the website has a convenient information search engine.
Figure 12. The renewed website www.rrt.lt

Source: RRT
The website contains the links to the following websites, developed and administered by RRT: - www.skaiiuok.lt the price calculation spreadsheet helps consumers to choose the electronic communications service providers offers, which most suit their needs in terms of price. Taking into consideration the changes on the electronic communications market, where the service providers offer new payment plans to consumers with increasing frequency, in 2010 RRT improved the price calculation spreadsheet - its database was supplemented with the new plans for private users, the functionality improvements were made and the international roaming tariffs were renewed according to the international roaming tariffs, which were changed as of 1 July, 2010. Approximately 18,500 users visited the website during 2010 (19,000 in 2009 and about 15,000 in 2008). - www.cert.lt on this website the Internet users can find advice on how to behave in case of an incident, the relevant information and legal acts pertaining to network and information security as well as the incidents statistics. In addition, a user, by filling in a special form at www.cert.lt/pranesti.html, can notify of an illegal content, harmful software, spam electronic mail messages, counterfeit electronic documents, unauthorized connections and manipulation with electronic data. - www.esaugumas.lt the information on the most frequent problems, faced on the Internet is provided on this website: computer and mobile viruses, spam, fraudulent activities on the Internet and other potential threats to security as well as recommendations and advice on how to avoid potential incidents.
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- www.matuok.lt the website provides the Internet service users with the possibility to evaluate the speed rate of the Internet access services, provided to them. The users, who visit the website, can measure the speed rate of upstream and downstream data transmission as well as browsing speed in Lithuania. The website also has electronic document provision system e-rrt, used for provision of information on commencement of activities, different requests, complaints, etc.
Activities of the national CERT-LT team

The main objective of the activities of the national CERT-LT team of RRT is to strengthen security of electronic communications networks and information and increase consumers' confidence in electronic space. Launched in 2008, the main tasks of CERT-LT are as follows: registration and investigation of incidents, occurring in public electronic communications networks and/or information systems of the Republic of Lithuania, coordination of the activities of CERT teams (LITNET-CERT, V Infostruktra CERT) and providers in the Republic of Lithuania, responding to incidents and preventing them from spreading, provision of the materials on the incident investigation to the appropriate institutions within their remit, where the CERT-LT team identifies a possible criminal offence or misdemeanor, related to security of electronic communications networks and information, cooperation with incident investigation institutions of foreign countries, CERT teams and being a contact CERT team in the Republic of Lithuania, as well as investigating international incidents. When implementing the "Safer Internet" project and for the purpose of preventing the dissemination of illegal and harmful content in the Lithuanian servers, RRT closely cooperates with the Police Department of the Republic of Lithuania and the Office of the Inspector of Journalist Ethics. In 2010 RRT CERT-LT team participated in the first European cyber-exercise Cyber Europe 2010, during which RRT coordinated Lithuanias actions from the headquarters of the European Network and Information Security Agency (ENISA). During the exercise Lithuania was represented by the units of CERT-LT (RRT), LITNET CERT and V Infostruktra ISTSVDPT. The experts attempted to fight hackers attempts to paralyze the operation of several EU Member States most important websites, used for provision of services via the Internet. In 2010 the national CERT-LT team investigated 10,050 incidents in electronic space. The requests to investigate the incidents were received from Lithuania's Internet users, Internet service providers and foreign CERT teams, investigating international crimes in the electronic space (see Figure 13). The majority of the reports, received in 2010 from foreign CERT teams, were related with DDoS, phishing of financial websites, the remaining dealt with placing of harmful codes in servers, registered in Lithuania. Other foreign institutions also continuously provide information on the IP addresses, participating in international botnets. 2010 2009 2008 2007 2006 90
Source: RRT
343 225 93 10 050 12 588
2590
5090
7590 10090 12590
Figure 13. The number of incidents, investigated by the national CERT-LT team in 20062010
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As shown by the data of CERT-LT, the problem, most frequently faced by the Lithuanian Internet users in 2010, was malicious software, which amounted to 92.8 per cent of all the investigated reports. The majority of messages were related with the worms, which were able to take over control of the computer and involve it into a common botnet, consisting of computers, controlled by a third party, i. e. by using malicious software, the botnet is frequently used as a means for other security attacks. CERT-LT, in close cooperation with the international partners, receives more and more messages on the computer zombies, participating in botnet activities, which are spreading in Lithuania. In 2010 approximately 10,000 active zombie computers were present in Lithuania every day. CERT-LT continues registering and publishing on the Internet the information on the activity of computers, found in botnets. In case of suspicion the consumer, by using the automatic verification function at www.esaugumas.lt/botnet , has the possibility to verify whether his computer IP address has not been detected in the database of the said networks (see Figure 14). CERT-LT, in cooperation with Lithuanian Internet service providers and other CERT teams, fights such networks, informs the Internet users on the noticed participation of their computers in botnets, provides the recommendations on the ways to clean the computer and keep it protected in the future. The year of 2010 saw an increase in the amount of malicious software, spread over the Internet chatting programmes and social networking websites. The Internet users were notified of such threats and the security recommendations were provided at www.esaugumas.lt (see Figure 16). In 2010, 31 warnings and 67 news items on different threats on the Internet were published at www.esaugumas.lt.
12
Figure 14. The Your computer is infected message at RRT www.esaugumas.lt website
Source: RRT
In addition, the number of messages on violation incidents has been increasing each year (see Table 7). In 2010 CERT-LT investigated 477 such messages, i. e. 2.65 times more than in 2009 (180 messages). Most incidents were unauthorized connections to Internet webpages by embedding a malicious code, able to harm the visitors computer software. The data of studies, performed by CERT-LT, showed that most webpages were
12
THE COMMUNICATIONS REGULATORY AUTHORITY OF THE REPUBLIC OF LITHUANIA. E. security. The number and distribution of computers, found in botnets in Lithuania. [last viewed 28 January 2010]. The Internet access at: http://www.esaugumas.lt/index.php?1908453714
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violated as the result of obtaining the legitimate owners connection data by the violators. A frequent target is to acquire connection data, stored in different programmes, electronic mail messages or other electronic texts by using malicious software. CERT-LT informed the webpage owners or the companies, providing webpage services, on the noticed malicious software codes and requested them to remove such codes, since they are being spread further through such violated webpages. Compared to 2009, in 2010 the number of messages on data phishing incidents reduced by 19 per cent. The violators, by using spam or counterfeit webpages, attempted to retrieve the passwords for connection to information systems or other confidential data. In 2010, 29 incidents, during which violators used the retrieved personal data for connecting to e-banking and other electronic systems, were investigated (see Table 7), which is 81 per cent more than in 2009 (16 messages). In 2010 CERT-LT received and investigated 451 messages on illegal or harmful Internet content, including 63 cases (14 per cent less than in 2009) when, according to the coordinated criteria, CERT-LT identified that the Lithuanian laws might have been violated as regards illegal Internet content. All the collected materials were transferred to the appropriate responsible institutions, i. e. the Office of Inspector of Journalist Ethics or the Police Department of the Republic of Lithuania, for further investigation. Table 7. The statistics of messages on networks and information security incidents, investigated by CERT-LT in 20082010
Source: RRT
Name of incident Malicious software Spam electronic mail DoS attacks Illegal content Unauthorized use of information system resources and unauthorized connection (violation) Phishing of electronic data Manipulating electronic data Other 2008 45 145 16 47 44 25 21
Number of incidents 2009 11 989 129 42 73 180 37 16 122 (49 consultations)
2010 9 273 0 (381)* 33 63 477 30 29 145 (61 consultations)
* 381 messages on individual cases of spam, no security gaps were detected, which could have adverse effect on the functioning of electronic mail information systems in the Republic of Lithuania.
Survey of network and information (IT) security situation in Lithuania

In 2010 the annual survey of the situation of security of electronic communications networks and information in Lithuania was performed by commission of RRT
13
(the survey was performed by Splinter Tyrimai UAB). 1,004
residents and 400 companies were surveyed by way of questionnaire. The survey showed that the companies, which used Internet access services in their activities, as residents who used the Internet, most frequently faced spam and computer viruses. 62 per cent of representatives of the surveyed companies faced spam and 49 per cent computer viruses. During the year the number of companies, facing computer viruses reduced by 4 per cent, the number of those, facing spam by 11 per cent. As a whole, private capital companies encountered network and information security violations more frequently. 25 per cent of participants of the survey stated that they did not face any network and information security violations. In 2010, 26 per cent of companies stated that they incurred loss as the result of network and information security incidents, i. e. 13 per cent more than in 2009. In 2010, 92 per cent of business subjects stated that they used anti-virus software, which is 4 per cent less than in
13
E. security. Surveys. [last viewed 24 March, 2011]. The Internet access at: http://www.esaugumas.lt/tyrimai
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2009. Another means of security, i. e. blocking of spam, was frequently used by 26 per cent of respondents, i. e. 13 per cent less than in 2009. Each fifth company (20 per cent) has built firewalls for common protection of its internal network. 13 per cent of the surveyed companies stated that they used antispyware and 3 per cent used violation detection systems (see Figure 15). Firewalls for common protection of the Intranet Spam blocking tools Antispyware Anti-virus software
32% 38% 31% 93%

2005
74% 74% 67% 98%

2006
36% 63%
34%
30% 20%
28% 30% 26% 30% 19% 16%13%

95%
100%
2007
96%
2008
92%
2010
2009
Figure 15. The tools for ensuring network and information security, used by companies in 20052010, per cent Source: RRT The survey of residents showed that, as in case of companies, the most frequent network and information security incidents, faced by the Internet users in 2010, remain computer viruses and spam (see Figure 16). 49 per cent of respondents faced computer viruses, i. e. 36 per cent less than in 2009. Spam was received by 29 per cent of respondents, i. e. 50 per cent less than in 2009. The number of respondents, who faced such incidents as illegal content, phishing of data and personal computer violations, underwent small changes during 2010 and remained similar to that, observed in 2009. In 2010, 31 per cent of users stated they experienced loss as a result of security incidents, which was 14 per cent more than in 2009. Computer software was damaged to each fourth of such users. Most Internet users, for the purpose of safeguarding against network and information security violations, used anti-virus software in 2010 that was stated by 61 per cent of respondents. As shown by the results of the survey, 1545 year-old respondents used more diverse security tools.
PC violations
6%
5%
1% 2%
3%
3%
Illegal Internet content (rasism, sadism, pornography)
11%
11%
7%
6%
4%
4%
Phishing
2%
2%
2%
3%
2%
2%
Spam
63%
47%
58%
65%
58%
29%
Computer viruses
78%
71%
70%
61%
77%
49%
2005
2006
2007
2008
2009
2010
Figure 16. Network and information security incidents, faced by residents in 20052010, per cent
Source: RRT
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73 per cent of respondents stated that they took interest in what their children did on the Internet. Another 18 per cent stated that they did that sometimes. 8 per cent stated that they were not concerned about their childrens online activities. Although most (69 per cent) of respondents recognized that the Internet could raise threat to their children, 16 per cent were of the opposite opinion and 14 per cent recognized that they did not give a thought of such a possibility (see Figure 17).
No reply 1% Have not given a thougt about it 14% No 16% Yes 69%
Figure 17. Do you think the Internet might raise threats to your child?
Source: RRT
The most frequently mentioned threat, arising to a child on the Internet, was illegal and harmful information (71 per cent). 46 per cent of respondents mentioned bullying and harassment, 42 per cent conversations of a sexual character, in order to lure the child to meet strangers, 31 per cent are of the opinion that a child, who reveals personal data on the Internet, may lose privacy, another 15 per cent of respondents expressed the opinion that the Internet raised no threat to children. When evaluating the preventive tools, most frequently the respondents educate their children on the Internetrelated issues and talk to them on illegal and harmful online content (47 per cent). 44 per cent of the participants of the survey stated that they only took a glimpse of what their children searched for on the Internet. 43 per cent of the respondents stated that they restricted their childrens Internet usage. 27 per cent check the webpages, visited by their children. 7 per cent of the participants of the survey set the rules for safe Internet use. 6 per cent used filtering tools for blocking of undesired webpages. Nevertheless, 13 per cent of respondents stated that they applied no measures, which would ensure their childrens safe Internet browsing. 92 per cent of the participants of the survey agreed that children needed to be taught on how to use the Internet safely. 2 per cent of the respondents were of the opposite opinion and 6 per cent stated that they never gave a thought on the issue.
The Safer Internet Project

Recognizing the potential threats to children on the Internet and the need for educating the society in the area and the prevention of illegal and harmful content, RRT implements the EU programme Safer Internet and, in cooperation with the Centre of Information Technologies in Education (ITC) and other partners, executes the Safer Internet project. When implementing the project, in 2010 educational events and lectures for school
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students were arranged throughout Lithuania, useful information was published on the Internet and in the media and the film on the Internet threats was shown. In 2010 RRT, in cooperation with ITC, continued administering the website of the Safer Internet project www.draugiskasinternetas.lt, which publishes the information on the Internet security issues relevant to children and their parents and where one can provide information on the harmful or illegal contenton the Internet. The website publishes the news and information on the Safer Internet project, Safer Internet Day events, activities of the international organizations Insafe and INHOPE, etc. In 2010 RRT continued the social campaign, started in 2009, intended to celebrate the international Safer Internet Day. The most important accent of the Safer Internet Day 2010 was the presentation of the documentary Tinklas (The Web), the aim of which is to draw the societys attention to the problems, faced by children on the Internet. On the Safer Internet Day 2010, i. e. on 9 February, the film was commenced to be shown on the Lithuanian national television. In 2010 the film was shown 15 times in total. The project partner one.lt created the special webpage http://games1.one.lt/tinklas, whose visitors can watch the film online or download it. During the time period of ten days as of the moment of launching of the said webpage the film was viewed 20,000 times. In 2010 it was viewed 42,000 times in total. 3,000 DVDs were made, which were distributed by the project partners at Lithuanian schools, other educational institutions, municipalities, given as prizes during different events and disseminated among the Insafe and INHOPE members. On 9 February, 2010 the conference The Parliament of the Republic of Lithuania Opens its Doors to the International Safer Internet Day was held. The aim of the event was to draw the attention of the Parliament of the Republic of Lithuania, the social institutions and the general public to the necessity of protecting children against the dangers, lurking on the Internet and against illegal and harmful content. It is expected that children will share the received information with their friends and thus the number of people, wishing to contribute to the Internet safety, will increase. About 300 school students from all the regions of the country participated in the conference. Deputy Director of RRT presented the speech Social Networks the Reverse of the Medal on the dangers, lurking on the social networks and the ways to avoid them. The participants of the conference watched the documentary Tinklas. RRT, being the coordinator of the Safer Internet project, greatly contributed to the coordination of the partners activities when executing different educational and information campaigns, participating in various events both in Lithuania and abroad. In 2010 close cooperation with the coordinators of the Safer and Friendly Internet at Libraries campaign within the framework of the Libraries for Progress project was started, thus expanding the area of activities of the Safer Internet project to the public libraries. When implementing the EU programme Safer Internet, in December of 2010 the Safer Internet LT AN-HL project, coordinated by RRT, which lasted for 21 months, was completed. Starting from January, 2011, the new 18 month-project Safer Internet LT SIC was commenced to be executed according to the agreement, concluded between the European Commission and RRT. The main tasks of the project remain the education of the society on the issues of safe Internet usage, fighting illegal and harmful content and behaviour, especially against the images of sexual abuse of children, cyberbullying, sexual harassment and grooming. The new task of the project is to launch an Internet help line with the aim of providing emotional support and advice to children and their parents by telephone or online on the issues of how to behave in case of grooming, cyberbullying, harmful content or unpleasant or intimidating experience when using the Internet technologies. Established by RRT, Internet hotline is a member of the international Internet hotlines association INHOPE (www.inhope.org) since May 2008. The membership in the association creates the conditions for closer
37

cooperation with other countries hotlines and simplifies the exchange of information, thus striving for more efficient elimination of harmful and illegal content from the electronic space. It should be noted that a representative of RRT is a member of the Board of INHOPE and continuously participates in the INHOPE activities, as well as in the General Assemblies of the Association, thus contributing to making the most important decisions. When performing the hotline functions, during 2010 CERT-LT received and investigated 451 messages on illegal or harmful content on the Internet, including 63 cases (14 per cent less than in 2009), where according to the coordinated criteria CERT-LT identified that the Lithuanian laws might have been violated due to illegal Internet content. All the collected materials were transferred to the responsible institutions for further investigation and removal from the Internet: 1 message was forwarded to the Police Department; 23 messages were forwarded to the Office of the Inspector of Journalist Ethics; 21 messages were forwarded to other countries hotlines, INHOPE members; 18 messages were forwarded to the corresponding Internet service providers; No action was taken with regard to the remaining messages, since the information either was not illegal or was placed in other countries servers, where such content is not considered illegal according to the laws of the country (for instance, pornography). The hotline, operated in Lithuania, can be reached by the Internet the messages are accepted by filling in a special form, presented at http://www.draugiskasinternetas.lt/lt/misc/report_form. The RRT hotline also participated in testing the INHOPE Internet webpage addresses (URL) database and, starting from 8 February, 2010, commenced forwarding the addresses (URL) of the webpages, where content on childrens sexual abuse is found, to the aforementioned database. RRT prepared articles on the issues of hotline activities to the INHOPE information bulletin and provided updated information on its activities to the INHOPE members. In order to provide the citizens the possibility to use their rights more actively and fight the harmful online content more efficiently, RRT dedicated attention to informing the society on the existence of the hotline and the provided possibilities. On the occasion of the Safer Internet Day 2010 the hotline was widely publicized on radio and television, in press releases and electronic mail messages. The Tinklas documentary was also used for that purpose. One of the most important parts of the film is dedicated to fighting illegal and harmful Internet content and to the hotline. At the end of 2010 RRT executed the hotline publicizing campaign on the Delfi Internet portal. It can be stated that during the campaign the scope of the project website visitors increased several times. The number of messages, received via the hotline, also grew several times. In 2010, upon performing a survey, it was established that 49 per cent of the survey participants had heard of the hotline (i. e. the website www.draugiskasinternetas.lt), where one can anonymously notify on the illegal or harmful Internet content, however 36 per cent had not had faced such content, 12 per cent did not report on the harmful online content and only 5 respondents (1 per cent) stated that they had reported illegal or harmful content. Nevertheless more than one half (51 per cent) of respondents stated that they had never heard of any hotline. 51 per cent of the survey participants evaluated Safer Internet project positively: 16 per cent assessed it as very good, 35 per cent good. 2 per cent of respondents were of negative opinion. 4 per cent evaluated the
38

project on an average. 43 per cent of the respondents did not provide their evaluation, since they had never heard of the project (see Figure 18).
Excellent 16% Have not heard anything about it 43% Good 35% Poor 0,20% Satisfactory 2% Average 4%
Figure 18. Evaluation of the Safer Internet project

Source: RRT
During the further phase of the project implementation, RRT will strive for the information on the security and threats on the Internet to continue reaching the part of the society, to which it is relevant, for the appropriate measures to be used more efficiently for the purpose of safeguarding against harmful and illegal content and for the new measures, such as childrens help line on the Internet, to contribute to the provision of help when facing illegal content or intimidating experience online.
Study of the reliability of the Internet network infrastructure

The ICT sector, including the Internet, is vital to the modern society as well as to secure and reliable functioning of the sector which determines the efficiency of the activities of the public and private sector, as well as availability and quality of the electronic services provided to the citizens. The application of the technologies of the sector became an integral part of the everyday life. Therefore any negative influence on the functioning of the ICT sector will have severe consequences to the vitally important functions of the society. Taking into consideration such a significant importance of the ICT sector to the society, appropriate attention must be focused on the reliability of its infrastructure and continuity of service provision. The main objective of the study is to perform the analysis of reliability of the operation of Lithuanias national Internet infrastructure, evaluate the possibilities of the early warning system of the critical nodes of the infrastructure to efficiently obtain the information on any disruptions of the critical node operation and shorten the response time to disruptions and thus, minimize their impact on the functioning of the Internet on the national level. Upon analyzing the Lithuanian network interconnections, it was established that the Lithuanian Internet connection scheme is decentralized. The Internet service providers, who have autonomous systems, are closely interconnected, which allows for improving the quality of services, since the national stream is less frequently forwarded via other countries networks. In addition, the survey showed that ISPs have several transit connections to the international and/or national Internet each, which increases the reliability of both their
39

individual networks and the total network and makes it more independent of the reliable functioning of one specific node. Upon performing a study it was established that 80 per cent of Lithuanian ISPs peering is performed at the Lithuanian Internet Exchange Point (IXP), at which the ISP exchange Internet data streams between each other. All the collected data and processing results are stored in the database, created by RRT. The data are processed by using special software. By using such information system RRT can identify the critical spots within the Lithuanian Internet infrastructure. RRT is going to further perform the study and execute a more detailed analysis of the reliability of critical nodes of the Lithuanian Internet infrastructure and strive for implementation of a real-time monitoring system, which would provide the possibility to collect data on the state of nodes, errors, interruptions of communication or register the streams of specific packets generated by cyber-attacks.
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Protection of consumer rights and legitimate interests in the postal sector
Supervision of universal services
Lietuvos Patas AB, the undertaking, obliged to provide the universal postal services
14
on the entire
territory of the country, must ensure that the universal postal services are provided in an uninterrupted manner on the entire territory of the country, on the same conditions to all universal postal service users, on every business day and not less than five days per week. In order to ensure uninterrupted provision of universal postal services, the following service field is reserved for the universal postal service provider: clearance, distribution, transport and delivery of domestic items of correspondence, direct mail and received international items of correspondence. Starting from 1 January, 2006 the 50 grams weight limit for reserved postal items is applied In order to fully shape the internal EU postal services market, on 20 February, 2008 the European Parliament and the Council adopted the new Directive 2008/6/EC (hereinafter referred to as the third Postal Directive), amending Directive 97/67/EC. According to the said directive the postal market will be liberalized since 2011. Eleven EU Member States, including Lithuania, were granted an exemption to postpone the opening of the postal market until 31 December 2012, in order to be able to reserve the services for the provider/providers of universal postal services. Other countries, granted the right to use the said exemption are the Czech Republic, Greece, Cyprus, Latvia, Luxembourg, Hungary, Malta, Poland, Romania and Slovakia.
Provision of information on universal postal services to consumers

Referring to the Rules for Provision of Universal Postal Services, the provider of universal postal services must make the following information publicly available at the points of access to universal postal services:
comprehensive and periodically updated information on the universal postal services and their usage possibilities;
the list of postal codes; prices of universal postal services; the quality requirements (standards); the procedures for investigation of complaints and indemnification of loss; With the exception of letter boxes, intended for public use, the following must be publicly displayed at
the points of access to universal postal services:

the Postal Law of the Republic of Lithuania; the Rules for Provision of Universal Postal Services;
14
Article 8 of the Postal Law establishes that the universal postal services shall include: the clearance, distribution, transport and delivery or handing in of letter-post items of up to 2 kilograms, the clearance, distribution, transport and delivery or handing in of postal parcels of up to 10 kilograms, the clearance, distribution, transport and delivery or handing in of registered or insured postal items, the delivery or handing in of postal parcels of up to 20 kilograms received from other Member States of the EU.
41
examples of filling in documents (blank forms, etc.) related to postal items and entering the address on a postal item;
the Rules for Provision of Postal Services.
As Lietuvos Patas AB is optimizing its public postal network, more and more stationary points of access to universal postal services in rural areas are being replaced by mobile post offices, where universal postal services are provided to the consumers only at a fixed time. In 2010 RRT inspected mobile points of access to universal postal services. In 2011 RRT is going to continue monitoring the activities of mobile post offices in order to establish whether the provided universal services correspond to consumer needs. In 2010 RRT inspected whether Lietuvos Patas AB observed the requirements provided by the legal acts regulating provision of universal postal services. The results revealed that in one fourth of the inspected points of access to universal postal services the title of universal postal services was not indicated, the trademark was absent and the priority was not given to the users wishing to receive universal postal services.
Establishment of points of access to universal postal services

Obligatory public postal network characteristics , defining the conditions for location of points of access to universal postal services and their equipment requirements, are set for the universal postal service provider. According to the said characteristics, the universal postal service provider must arrange a sufficient number of points of access to postal services. The public postal network characteristics are set in order to ensure that each resident of Lithuania gets the possibility to use postal services in a convenient manner. The following types of points of access to universal postal services are distinguished: stationary points of access to universal postal services; mobile points of access to universal postal services; postal agents' work locations; public mailboxes.
15
The Characteristics establish the following: The distance between the location of the user of postal services and stationary or mobile points of access to universal postal services or postal agents' work locations in urban residential areas must be not larger than 3 km by crosscut, and the distance to a public mailbox must be no longer than 2 km by crosscut. No less than one point of access to universal postal services or postal agent's work location must be established in rural residential areas on the territory of one subdistrict. In rural residential areas, which are detached from centers of subdistricts, a mobile point of access to universal postal services can be established. In rural residential areas, having more than 200 receipt letter-boxes (addresses), one public mailbox must be established. According to the data of 31 December 2010, Lietuvos Patas AB provides its services at 872 (880 at the end of 2009) points of access to universal postal services: 725 (736 at the end of 2009) stationary points of
15
Established by Order of the Minister of Transport and Communications of the Republic of Lithuania On the Approval of the Characteristics of the Public Postal Network of the Provider of the Universal Postal Services"
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access to universal postal services (214 in cities and towns, 511 in rural areas), 12 post offices (8 in cities and towns, 4 in rural areas) and 28 mobile post offices, serving 135 points of access to universal postal services in Vilnius, Panevys, Klaipda, Kaunas and iauliai districts. In total, during 2010 the number of points of access to universal postal services reduced by 8 units, including 7 points in urban residential areas and 1 point in rural residential area. In 2010, 13 points of access to universal postal services were closed in iauliai (9), Klaipda (2), Vilnius (1) and Kaunas (1) districts and 5 points of access to universal postal services were opened in Kaunas (2 post sub-units), iauliai (2 post offices) and Vilnius (1 mobile post office stopping location) districts. In 2010, by order of the European Commission, the Institute of Economics of the University of Copenhagen prepared the study The Main Developments in the Postal Sector, which determined the number of points of access to universal postal services per 10,000 residents in the European Union Member States. Lithuanias indicators are slightly above the average of the European Union Member States(see Figure 19). Figure 19. The number of points of access to universal postal services per 10,000 residents in the European Union Member States
4,5 4 3,5 3 Average 2,5 2 1,5 1 0,5 0 Slovenia Sweden Luxembourg Norway Poland Czech Republic Germany Denmark The UK Romania Slovakia Bulgaria Switzerland Belgium France Finland Malta Greece Latvia Ireland Estonia Liechtenstein Lithuania Iceland Hungary Cyprus The Netherlands Portugal Austria Spain Italy
Source: Copenhagen Economics Study The Main Developments in the Postal Sector 2008-2010, Final Report, executed by order of the European Commission in 2010
Quality control of universal postal services

Referring to the Postal Law of the Republic of Lithuania, in 2010 RRT continued an independent examination of the quality of the universal postal services provided by Lietuvos Patas AB with the aim of establishing whether the universal postal services comply with the requirements for quality of universal postal services, established with regard to the sent items of correspondence.
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According to the requirements to quality of universal postal services, established by the Ministry of Transport and Communications, 85 per cent of priority items of correspondence must be delivered on the business day following the dispatch (D+1) and 97 per cent of priority items of correspondence must be delivered on the third business day following the dispatch (D+3) (see Table 8). In the 2
th nd
quarter of 2010 Lietuvos Patas delivered 70.72 per cent of priority items of correspondence on
the business day following the dispatch and 98.45 per cent on the third business day following the dispatch, in the 4 quarter 77.9 per cent and 99.4 per cent correspondingly. In 2010 RRT sent 3,600 test letters on the territory of the Republic of Lithuania. The annual results of the test showed that 74.3 per cent of letters were delivered on the business day following the dispatch and 98.9 per cent of all the sent letters were delivered on the third business day following the dispatch (D+3). RRT publishes the results of the independent examination of the quality of postal services once per year. Table 8. The universal postal services quality examination results in 20052010
Delivery quality indicators (the time period) Quality examination results 2005 2006 2007 2008 2009 2010 Established quality standards
On the same day 0.17% 0.73% 0.81% 0.59% 1.04% 1.4832 (D+0) st 1 day following the dispatch 75.56% 74.3012 85 per cent (D+1) 72.78% 67.79% 57.85% 74.61% nd 2 day following 95.5220 the dispatch (D+2) 95.30% 93.53% 86.60% 95.01% 96.14% rd 3 day following the dispatch 98.92% 98.9162 97 per cent (D+3) 98.76% 97.57% 95.66% 99.08% th 4 day following 99.4867 the dispatch (D+4) 99.26% 98.92% 98.17% 99.63% 99.50% th 5 day following 99.6864 the dispatch (D+5) 99.55% 99.34% 99.22% 99.72% 99.58% th 6 day following 99.8290 the dispatch (D+6) 99.75% 99.72% 99.63% 99.78% 99.64% th 7 day following 99.9146 the dispatch (D+7) 99.84% 99.83% 99.79% 99.91% 99.70% th 8 day following 99.9146 the dispatch (D+8) 99.88% 99.83% 99.91% 99.94% 99.82% th 9 day following 99.9146 the dispatch (D+9) 99.96% 99.97% 99.94% 100.00% 100.00% th 10 day following the dispatch 100.0000 (D+10) 100.00% 100.00% 100.00% 100.00% 100.00% * - D is the day of sending of the item ** - n is the number of business days from the moment of sending of the item till the delivery of the item to the addressee *** - the requirements, provided in the Specification of the Requirements for the Quality of Uuniversal Postal Services, approved by Order No. 3-495 of the Minister of Transport and Communications of the Republic of Lithuania of 12 October, 2004 (Official Gazette Valstybs inios 2004, No. 157-5742; 2007, No. 91-3670). Source: RRT
Investigation of user complaints

In 2010, 48 complaints of consumers of postal and courier services were received and investigated, including 31 complaints with regard to the provision of universal postal services and 17 complaints with regard to the provision of other postal and courier services (see Figure 20). Compared to 2009, the number of complaints with regard to the provision of universal postal services grew 1.3 times, the number of complaints with regard to provision of other postal and courier services increased 1.4 times (see Table 9).
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The majority of users of postal and courier services applied to RRT with regard to damaging, loss or inappropriate delivery of postal items.
2010 2009 2008 2007 2006 2005

0 5 10 15 14
17 24 24
31
31 38 23 19
22 22 25 25 30 35 40 45
20
Complaints regarding other postal and courier services Complaints regarding universal postal services
Figure 20. The dynamics of complaints of users of postal and courier services in 20052010
Source: RRT
Table 9. Complaints of users of postal and courier services and the decisions of RRT in 20052010
Complaints with regard to postal and courier services: Decisions in favour of service users of a good-will way for resolution of the dispute Rejected according to the procedure, prescribed by legal acts, presenting the explanations for rejection Unsubstantiated Complaints with regard to provision of universal postal services: Decisions in favour of service users of a good-will way for resolution of the dispute Rejected according to the procedure, prescribed by legal acts, presenting the explanations for rejection Unsubstantiated
Source: RRT
2005 22 17
2006 19 5
2007 23 10
2008 31 6
2009 24 1
2010 17 3
12
20
23
13
2 25 5
2 22 4
4 14 1
5 38 6
0 24 2
1 31 4
15
13
32
20
23
12
Lietuvos Patas AB, the provider of universal postal services, is obliged to implement Standard LST EN 14012 "Postal Services. Quality of Service. Complaints and Procedures of Compensation of Damages"
16
In 2010 Lietuvos Patas AB investigated complaints according to standard LST EN 14012 and provided to RRT the report on investigation of complaints regarding universal postal services in 2010, which stated that during the said period 3674 complaints were received from the consumers, including 289 complaints with regard to domestic postal items and 3385 regarding international postal items. Most frequently the users of universal postal services complained about lost or delayed postal items (3197 complaints), other complaints dealt with clearance or delivery of postal items (137), provision of information on services (8), behaviour of employees of Lietuvos patas AB (12), damage to postal items (71), erroneous delivery (15), changing the address of the recipient (6) and access to the postal services (1). The report also provides data
Referring to Order No. 3-145 of the Minister of Transport and Communications of the Republic of Lithuania of 14 April, 2006 On the amending of Order No. 3-495 of the Minister of Transport and Communications of the Republic of Lithuania of 12 October, 2004 On the Approval of the Description of the Requirements for Quality of Universal Postal Services.
16
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on substantiation of complaints, the paid compensations and the time for investigation, i. e. 2010. Lietuvos Patas AB was provided 550 substantiated complaints, upon investigating 455 complaints, the consumers were paid compensations. 75.6 per cent of complaints were investigated within the standard time period the average time period for provision of the final answer to the consumer is 38 days.
Protection of consumer rights and legitimate interests in the equipment sector

Conformity assessment of the interface of equipment and devices
In observance of the EU Directive 1999/5/EC, RRT evaluates the conformity of the radio interface of the radiocommunication equipment and devices, operated in non-harmonized EU radio frequency bands, to the conditions for use of radio frequencies/channels in the Republic of Lithuania prior to the provision of the equipment to the market. The radiocommunication equipment is controlled to see if it ensures efficient use of the frequency spectrum, intended for terrestrial and/or spatial and satellite communication and the orbital resources as well as for the avoidance of harmful disturbance. According to Directive 1999/5/EB, the manufacturer of radiocommunication equipment or a telecommunications terminal equipment unit or its authorized representative must evaluate whether the unit complies with the essential requirements prior to provision of the unit to the market. RRT analyses the notifications by the manufacturers or their authorized representatives and, in situations where RRT establishes that the radiocommunication equipment interfaces fail to comply or do not fully comply with the conditions for the use of radio frequencies in Lithuania, RRT notifies the relevant parties, who provided notifications of the issue, in writing and requires to include relevant information into the user manual of the radiocommunication unit in order to inform the user on the restrictions, if any, of the equipment use (certain technical parameters, geographical location etc. can be limited), provided limitations are established. In 2010, 1,137 notifications of the provision of equipment of Class 2 to the market were received (see Table 10). All the received notifications were investigated and the replies regarding the possibilities of equipment provision to the market and conditions for equipment usage in Lithuania were forwarded to the equipment providers: in 12 cases (1.1 per cent of all the received notifications) the relevant parties were informed that the equipment was prohibited to use in Lithuania, in 180 cases (15.8 per cent) the providers were informed on the requirements for partial restriction of equipment use in Lithuania, in 9 cases (0.8 per cent) it was stated that the provision of the equipment to the Lithuanian market was forbidden, until compliance of the equipment to the requirements of the EU Directive 1999/5/EC was identified. In the remaining cases (82.3 per cent) no usage restrictions were established. The consistent reduction of the total number of notifications, observed during the later years, should be related with the harmonisation of the conditions for use of frequency bands on the community level, which has been going on in the EU, by adopting several Commission decisions for the purpose of harmonisation of conditions for use of short range radiocomunication equipment, including WLAN equipment. In the frequency bands, where the conditions for use of radiocommunication equipment have been harmonised, no requirement to inform on the intention to provide the equipment to the market in advance is applicable in the EU Member States.
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Therefore the verification, performed by RRT, ensures that the consumers on the Lithuanian market will purchase products, compliant with the EU requirements, and timely receive the relevant information on the radiocommunication equipment use. Table 10. The document files regarding provision of the equipment, operated in the radio frequency bands, not harmonised within the EU to the market, analyzed by RRT in 20052010
Number of files Type of equipment 2005 WLAN equipment PMR equipment Mikrolink equipment Short range equipment Other equipment Total:
Source: RRT
2006 978 108 165 184 99 1 534
2007 1 075 133 430 260 1 463 3 361
2008 1 361 263 230 445 220 2 519
2009 354 153 285 295 312 1399
2010 289 157 228 202 261 1137
887 145 74 269 54 1 429
Elimination of radio interference

Compared to the previous years, in 2010 the number of complaints received by RRT regarding radio interference, did not reduce, however, their spectrum changed. The spectrum of the requests, received by RRT regarding elimination of radio interference is presented in the diagram in Figure 21.
For television programmes broadcasting 40%
For radio programmes broadcasting 7% For other ICT services 5%
For mobile communicatio ns (GSM, UMTS) 48%
Figure 21. The requests regarding radio interference to the ICT services, received and investigated by RRT in 2010
Source: RRT
Previously the largest amount of complaints was received with regard to interference to radio and television broadcasts and lately the largest amount of complaints is received regarding interference to mobile communication (GSM and UMTS). In 2010 such complaints amounted to 48 per cent of all the received complaints (18 per cent in 2009), which resulted from the obviously grown number of different radio wave radiating telecommunication objects. The established reasons for radio interference were very different: faulty, no longer used or (sometimes) forgotten (no longer used, but not disconnected) equipment, radiocommunication equipment, used without authorization, etc. Among such equipment worthy of note are the GSM/UMTS communication blocking
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devices, which actually raise most problems. Although they are prohibited to be used, the practice shows that they are a very frequent reason for radio interference. In 2010 RRT registered 12 cases of use of GSM/UMTS communication blocking devices. It is likely that such frequent use of blocking devices is determined by the fact that, with development of technologies, the devices become smaller, cheaper and easier to obtain. Although it is impossible to purchase them in stores, it is not difficult to find them on the Internet.
Subscriber radio signaling 4%
Illegal radio frequency users 19%
Active TV antennas 28%
Other objects 14%
Mobile communication (GSM, UMTS) equipment 35%
Figure 22. The spectrum of reasons for radio interference, established by RRT in 2010
Source: RRT
The attention should be drawn to the fact that more than a half of radio interferences (about 54 per cent) in 2010 were caused by different mobile telecommunication equipment: base stations, telephone sets, GSM/UMTS repeaters and blocking devices. The latter are presented in the part of unauthorized radio frequency users in the diagram in Figure 22, which means that in order to protect the consumers against radio interference in the radiocommunication segment RRT had especially a lot to do when identifying and eliminating the reasons for radio interference. In 2010, as in 2009, radio frequencies were quite frequently brought by widely known active (Polish) antennas, intended for receipt of television programmes, in case the broadband amplifiers of the antennas were faulty or of low quality. There have been cases when the antennas caused radio interference even when mobile communication operated at rather high frequencies, i. e. higher than 1 GHz. The users of active antennas most frequently do not feel any interference at their television sets, therefore they are not even aware of the effect of their antennas to other users of the radio spectrum. Among other objects, which raised radio interference to different ICT services in 2010, specified in Figure 25, one can note the radio and television programmes broadcasting stations (1 case each), internal radiocommunication network stations (1 case), amateur radio stations (1 case), household electrical appliances (1 case) and short range equipment (2 cases).
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45,7% 41,7% 32,3% 31,1%
15,0%
17,9% 11,0% 5,3% 2009 2010
Radio interference Radio interference The quality of The investigation was terminated after has been successfully has disappeared functioning of the investigated and before identification equipment reduced establishing that there is no basis for eliminated of their source without radio interference investigation
Figure 23. Distribution of complaints regarding radio interference, received and investigated by RRT against the results of investigation
Source: RRT
RRT investigates all the received complaints regarding radio interference. Some complaints are unsubstantiated, for instance when the quality of the functioning equipment reduces not due to radio
interference (for instance, in case of a faulty or inappropriately tuned television set, disconnected antenna cable, etc.) or absence of substantiation for investigation (for instance, where the applicant complains regarding objects, which cannot possibly influence the receipt of radio or television programmes). A part of complaints were not investigated successfully, since radio interferences disappeared during the investigation without a chance to identify their source. Figure 23 presents the distribution of complaints against the results of investigations and their changes during the last two years. The figure shows the percentage of the total number of received complaints.
Interference to radiocommunication networks and systems

Diagram in Figure 24 shows the distribution of complaints, received by RRT in 2010 with regard to interference to radiocommunication networks and systems.
Internal radio communicatio n networks 46 %
Short range equipment 28% Radiocommuni cation alarm and security networks (subscriber part) 16%
Other objects Amateur radio 3% stations 7% Figure 24. The structure of the complaints regarding radio interference to networks and systems, received and investigated by RRT in 2010 Source: RRT
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Speaking of radio interference in the communications networks and systems segment in 2010, most problems arose to internal radiocommunication networks (46 per cent), including 12 cases of interference to aeronautics and radio navigation networks. The second spot is taken by short range equipment, such as vehicles radio signaling, automatic gates or other object-control equipment and similar objects.
60,6% 49,4% 2009 2010 26,4% 20,2% 15,4% 18,4% 3,8% Radio interference has Radio interference has been successfully disappeared before investigated and eliminated identification of their source 5,7%
The quality of functioning The investigation was of the equipment reduced terminated after without radio interference establishing that there is no basis for investigation
Figure 25. Distribution of the complaints regarding radio interference to networks and systems, received and investigated by RRT against the results of investigation
Source: RRT
Figure 25 shows the quantity distribution of the investigated complaints off the total number of received complaints, as well as the cases, where RRT specialists investigated unsubstantiated complaints. Speaking of all the complaints, received by RRT, the number of unsubstantiated complaints remained almost unchanged during the last two years and amounted to approximately 30 per cent of all the investigated complaints (regarding both ICT services and radiocommunication networks and systems) each year.
Supervision of electronic communications infrastructure

In 2010 RRT continued the works on state supervision and control of installation and use of the electronic communications infrastructure. Referring to the Rules for the Installation and Use of Electronic Communications Infrastructure, RRT, against the requests for code of designing conditions, provided by administrations of municipalities of cities, towns and districts of the Republic of Lithuania, investigated and issued conditions for structure designing. Representatives of RRT participated in the activities of permanent construction commissions, according to the authorizations, granted by RRT for such activities. RRT quickly responded to the complaints of residents, associations of apartment buildings and cable television operators regarding inappropriate installation of electronic communications infrastructure and took corresponding measures in order to eliminate such deficiencies. When performing the state supervision of the requirements for safety and purpose of telecommunication lines and equipment structures, RRT investigated 46 applications regarding conditions for electronic
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communications structure designing. 45 electronic communication structure designing conditions were established. When participating in the activities of permanent construction commissions, when coordinating projects according to the established electronic communication structure designing conditions, RRT provided 95 conclusions regarding compliance of technical projects with the established designing conditions. When performing the supervision of observance of the rules for installation and use of electronic communications infrastructure, RRT investigated 10 complaints of natural and legal persons with regard to construction of electronic communications structures, installation and use of the infrastructure.
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PROMOTION OF COMPETITION IN ELECTRONIC COMMUNICATIONS AND POSTAL SECTORS Electronic communications sector
Market participants
At the end of 2010 about 160 operators and service providers were engaged in the provision of electronic communications services (public fixed telecommunications network and services, mobile
telecommunications network and services, leased lines services, Internet access and other data transmission services, dark fiber access services, television (cable TV, MMTV, IPTV, terrestrial DVB-TV, satellite TV) services, broadcasting transmission services, wire radio activities) (see Figure 26).
Provision of broadcasting transmission services Satellite television Digital terrestrial television (DVB-T) Provision of dark fiber access services Provision of data transmission services, with the exception of the Internet Provision of IPTV services Provision of cable TV and MMTV services Provision of the Internet services Provision of leased lines services Provision of public mobile telecommunications services Provision of public fixed telecommunications network and/or services
1 1 1 4 9 2 54 115 15 10 40
1 1 1 5 14 3 54 115 1
2 1 2 8 15 5 54 115 15 13 48
2 1 2 9 15
2 1
2 1 2 11 14 8 15
52 113 13 13 46 2009
48 108 13 11 48 2010
49 108 12 13 51
17 12 52 2008
2005
2006
2007
Figure 26. The dynamics of the number of undertakings, engaged in different electronic communications activities in 20052010
Source: RRT
In 2010, 9 undertakings submitted their notifications on the intent to engage in the provision of public fixed telecommunication network and/or services (the number of undertakings, actually engaged in the activities, grew from 48 (in 2009) up to 51 (in 2010). 6 undertakings submitted notifications of their intent to engage in public mobile telecommunication network and/or service provision (the number of undertakings, executing the activities grew from 11 (in 2009) up to 13 (in 2010). 3 undertakings submitted the notification of their intent to engage in the provision of leased line services (the number of undertakings engaged in these activities did not change). 2 undertakings provided notifications of their intent to engage in the provision of satellite communication services and 1 undertaking presented the notification of its intent to engage in the provision of public mobile communication network and/or public electronic communications services by using the systems of communication over electricity transmission lines. According to the Specification of General Terms and Conditions for Engaging in Electronic Communications Activities, an undertaking shall be deleted from the list of providers of electronic
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communications services and networks, in case the undertaking, upon providing its notification of the commencement of activities, fails to commence the electronic communications activities, specified in the notification, for the time period longer than one year. Referring to the said provision, 9 undertakings were deleted from the list in total in 2010: 4 undertakings were deleted from the list of undertakings engaged in the provision of public fixed telecommunications networks and/or services, 3 undertakings were deleted from the list of undertakings engaged in the provision of public mobile telecommunication services and 2 undertakings were deleted from the list of undertakings engaged in the provision of leased line services. In 2010, 4 undertakings were deleted from the list of providers of electronic communications networks and services at their own request: 3 undertakings were deleted from the list of undertakings engaged in the provision of public fixed telecommunication networks and/or services and 1 undertaking was deleted from the list of undertakings engaged in the provision of public mobile telecommunication services.
Supervision of execution of the obligations imposed on the undertakings having significant market power
When performing the supervision of implementation of the legal acts, regulating electronic communications activities, RRT devoted much attention to the implementation of the obligations imposed on the undertakings recognized as having significant power on the relevant markets (see Annex 1), applied in order to limit the marker power of such undertakings. The observance of the imposed obligations is important, since the obligations help to reduce the market entrance barriers, increase the freedom of business initiatives, ensure similar conditions for competing on electronic communications markets to all the undertakings and a greater extent of competition on the markets, which results in lower prices for consumers of electronic communications services, a greater diversity and higher quality of services as well as the freedom for each and every consumer to choose the service provider which suits its needs the best. In 2010 RRT performed supervision of the obligations of transparency, non-discrimination, price control, cost accounting and accounting separation, provision of access and the obligations, pertaining to the provision of services to end users, imposed on the undertakings having significant power on the relevant markets. The obligations are established referring to the legal acts of the European Union regulating electronic communications activities, according to which, for the purpose of reaching a common EU market, market analyses are performed in all the Member States and the obligations are imposed to the undertakings having significant market power, the results of such analyses are coordinated with the European Commission. RRT performs supervision of execution of the obligations imposed on the undertakings having significant market power either by its own initiative or upon receiving a request from undertakings and/or consumers to verify the manner the obligations are observed or a complaint regarding the non-observance of the imposed obligations. When performing the supervision of observance of the obligations by its own initiative, first of all, RRT evaluated the information publically available or provided by the undertakings to RRT (prices, service provision conditions, service provision contracts, regular information on the service volumes and revenues and the information on the costs and revenues). The said information was compared with the requirements provided by the imposed obligations (i. e. the requirements for the scope and content of the published information, service provision conditions, terms of changing the service prices and the set prices). In case of lack of information, the undertakings were requested to provide additional information.
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Upon receiving a complaint and/or a request to verify how undertakings observe the imposed obligations, first of all RRT verifies the substantiation of such request and/or complaint. In case of deficiencies as regards the observance of the imposed obligations, the undertakings are first of all requested to eliminate such deficiencies. In order to minimize the burden to the undertakings, the procedures for elimination of obligations violation are initiated and sanctions are imposed only in the cases where the undertakings avoid eliminating the deficiencies in good will. Supervision of obligations, imposed on undertakings, is executed by performing market analyses and evaluating market changes. Obligations can be changed, abolished or new obligations can be imposed. In 2010 the obligation to provide access to specific network elements and the related measures were applicable in regard to TEO LT, AB (on 6 markets), Omnitel UAB (on 1 market), Bit Lietuva UAB (on 1 market), Tele2 UAB (on 1 market), Lietuvos Radijo ir Televizijos Centras AB (on 7 markets), Cubio UAB (on 1 market), Mediafon UAB (on 1 market), CSC Telecom UAB (on 1 market), Lietuvos Geleinkeliai AB (on 1 market), Telekomunikaciju Grupa UAB (on 1 market), Eurocom SIP UAB (on 1 market) and Nacionalinis Telekomunikacij Tinklas UAB (on 1 market). The obligations of non-discrimination and transparency were imposed to TEO LT, AB (on 9 markets), Omnitel UAB (on 1 market), Bit Lietuva UAB (on 1 market), Tele2 UAB (on 1 market) and Lietuvos Radijo ir Televizijos Centras (on 7 markets). When supervising the ways the undertakings, having significant power on the relevant market, observe the requirement to provide the agreements on provision of access (network interconnection, transit, unbundled access, lease of infrastructure, wholesale broadband access provision agreements), as well as wholesale leased lines, broadcasting transmission services and conditional access agreements, concluded with other undertakings, imposed by the transparency obligations, RRT registers the provided agreements and their amendments, analyzes the said documents and makes the corresponding decisions with regard to compliance of the provisions of the said agreements with the requirements, established by the legal acts. In 2010, 100 agreements and their amendments (additional agreements) were registered in total: 19 network interconnection agreements and their amendments, including 5 agreements; 2 agreements on provision of wholesale broadband access services, 8 regarding lease of infrastructure, including 2 agreements; 65 regarding provision of broadcasting transmission services, including 17 agreements, 4 agreements regarding wholesale leased lines and 2 additional agreements regarding unbundled access. All the provided agreements, apart from the confidential information, are available on RRT website in the "Agreements part of the section Obligations, imposed on undertakings of the column Service regulation . RRT also analyzes reference wholesale access offers and reference networks interconnection offers, which are obligatory for the performing of the obligation of transparency, provided by the undertakings, having significant power on the relevant markets. In 2010 both mobile telecommunication operators Bite Lietuva UAB, Omnitel UAB and Tele2 UAB and fixed telecommunication operator TEO LT, AB were made to provide the renewed networks interconnection offers, eliminating the violations, identified by RRT. All the provided reference offers are published in the "Reference offers part of the Undertakings having significant market power subsection of the Promotion of competition section of the For business column of the website of RRT, as well as on the websites of the corresponding undertakings. TEO LT, AB also provided the renewed reference offer of wholesale broadband communication access, published in the Reference offers section of the website of RRT.
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Supervision of retail fixed telecommunication services
In 2010 the complaint of CSC TELECOM UAB regarding the failure by TEO LT, AB to perform its obligations on the markets of retail access to the public telecommunications network, provided at a fixed location, national telecommunications services, provided at a fixed location (local and national long-distance call services) and wholesale unbundled access services was investigated. In the complaint RRT was requested to investigate whether TEO LT, AB observes the price control obligations when providing retail service plans (Neribotas, alyje and Bazinis) and whether TEO LT, AB does not apply discriminating pricing with regard to the calls, made within the network of TEO LT, AB and the calls to other fixed telecommunication networks (in case a number of minutes is granted for a flat rate only within the network of TEO LT, AB). RRT initiated an investigation and provided TEO LT, AB with its comments regarding a potential price preasure with regard to wholesale and retail services and potentially discriminating pricing of the calls to other fixed communication networks and requested to provide the evidence on the ways of execution of the price control obligation, established in the retail service markets. TEO LT, AB took the comments of RRT into consideration and, by applying discounts to the subscriber charges for the retail services alyje and Neribotas during different campaigns, commenced applying analogical discounts to wholesale unbundled access service (similar discounts were provided to wholesale local loop service earlier) and, for the purpose of ensuring non-discriminating pricing of national calls to other public fixed telecommunication networks, offered campaigns and payment plans targeted at private and business users, which provided them with the possibility to make calls at similar conditions both to the network of TEO LT, AB and to other fixed telecommunications operators networks (for instance, payment plans alyje plius and Draugai).
Supervision of wholesale fixed telecommunication services

Starting from 1 January, 2010 the reduced prices of the services of call termination in fixed telecommunication networks and network interconnection entered into effect (the prices were set upon performing the market analysis of call termination on individual public telephone networks provided at a fixed location and after the imposition of the corresponding obligations by Order of the Director of RRT of 24 December, 2009). Taking into consideration the established regulation of prices of the measures, pertaining to termination of calls, each operator covers its network extension expenses, incurred when interconnecting its network with another operator and the costs of the communication line, interconnecting the networks between the parties must be divided in half. In addition, it was established that the communication line, interconnecting the networks, must be installed by the party, which is able to have the said works completed at a lower price, which means that the call termination costs, incurred by different operators, will not only become uniform, but will also reduce. This will ensure the conditions for long-term efficient competition, which, in turn will be benefitial to the end users. Table 11 shows information on call termination prices.
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Table 11. The changes of prices of call termination on public fixed telecommunication networks, set by RRT starting from 1 January, 2010 (the prices are specified VAT exclusive)
No. Service Price since 01-012010 Price since 01-012011 TEO LT, AB Price since 01-01-2012* Price since 01-012013
National call termination during peak time, ct per 5.42 4.84 4.26 The price will be set minute by RRT referring to the National call termination requirements, provided 2 during non-peak time, ct per 2.79 1.98 1.16 in the Commission minute Recommendation**. The 3 Call setup, ct 2.63 1.66 0.69 price is planned to be National call termination, not set till 31 December, differentiating according to 2012. 4 5.42 4.35 3.28 the time of provision of the service, ct per minute Nacionalinis Telekomunikacij Tinklas UAB, CSC Telecom UAB, Lietuvos Radijo ir Televizijos Centras AB, Telekominikaciju Grupa UAB, Mediafon UAB, Eurocom SIP UAB, Lietuvos Geleinkeliai UAB, Linkotelus UAB, Cubio UAB National call termination 1 during peak time, ct per minute National call termination 2 during non-peak time, ct per minute Not bigger than for TEO LT, AB 3 Call setup, ct National call termination, not differentiating according to 4 the time of provision of the service, ct per minute Explanations of the table: * the prices were set by Order No. 1V-101 of the Director of RRT of 31 December, 2008 and show the costs, incurred by an operator, efficiently operating on the market, however they do not show the precise costs, calculated according to the requirements, provided by the Recommendation**. ** Commission Recommendation No. 2009/396/EC of 7 May, 2009 on the Regulatory Treatment of Fixed and Mobile Termination Rates in the EU. 1
In 2010 RRT did not note any cases when fixed telecommunications operators would apply prices for services of call termination in relevant networks, in conflict with the price control obligations, imposed on such operators. In the 1 half of 2010 RRT investigated the complaint of Nacionalinis Telekomunikacij Tinklas UAB with regard to the failure by TEO LT, AB to execute the imposed price control obligations, i. e. TEO LT, AB did not apply the 40 per cent reduction of the prices for call origination, call termination, national and international transit services and the related measures to other providers of fixed telecommunications services from 25 April, 2008 to 31 July, 2008. RRT, upon investigating the complaint, stated the violation and required TEO LT, AB to eliminate it by the established deadline. TEO LT, AB recalculated the prices, applied for the said time period, and indemnified the losses, incurred by the service providers, thus remedying the established violation. Starting from 28 September, 2008 TEO LT, AB reduced the prices of services of unbundled access and partially unbundled access to the twisted metallic pair loop correspondingly by LTL 18 w/o the VAT (the previous price LTL 24.00 w/o the VAT) and LTL 16.50 w/o the VAT (the previous price LTL 18.84 w/o the VAT). The changes in prices are shown in Figure 27.
st
56
24,00 18,84 16,50 Unbundled access Shared access
18,00
before 28-09-2010
after 28-09-2010
Figure 27. The changes in monthly charges for wholesale fully unbundled access to the local loop and partially unbundled access to the local loop, provided by TEO LT, AB in 2010 (LTL w/o the VAT).
Source: the reference offer of unbundled access to the local loop, provided by TEO LT, AB
In June 2010 RRT initiated the investigation with the aim of establishing whether the conditions of the Destination Omnitel plan, offered by TEO LT, AB since 1 June, 2010, ensure that the price of the national calls is not lower than the cost oriented price, i. e. whether the price is compliant with the requirements of price control obligations imposed on TEO LT, AB with regard to wholesale market of call termination on the network of TEO LT, AB provided at a fixed location and with the non-discrimination and transparency obligations with regard to other fixed telecommunications operators. In July 2010 RRT additionally received the complaint from CSC TELECOM UAB with a request to investigate whether the Destination Omnitel plan, offered by TEO LT, AB, is compliant with the price control and non-discrimination obligations imposed on TEO LT, AB on the wholesale market of call termination on the network of TEO LT, AB provided at a fixed location and whether the obligations of price control and applying non-discriminating pricing on the retail national calls markets are not violated. RRT, upon performing a study and evaluating the conditions of the agreement between TEO LT, AB and Omnitel UAB, did not establish any violations of the obligations imposed on TEO LT, AB by the said undertaking.
Supervision of wholesale mobile telecommunication services

Starting from 1 January, 2010 the new prices of the services of call termination on mobile telecommunication networks and networks interconnection services entered into effect. The information on the prices of call termination services is provided in Table 12.
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Table 12. The prices of call termination on the networks of Bit Lietuva UAB, Omnitel UAB and Tele2 UAB
Service Price from 01-012009 to 31-122009* n/a Price from 01-01Price from 01-01Price from 01-012012 to 31-122010 to 31-12-2010 2011 to 31-12-2011 2012 14.43 10.01 5.60
Voice call termination, when the prices are not differentiated according to the time of provision of services Voice call termination, ct per minute, w/o the VAT Voice call termination during peak time*, ct per minute, w/o the VAT Voice call termination during peak time*, ct per minute, w/o the VAT
Voice call termination, when the prices are differentiated according to the time of provision of services 28.80 14.40 18.04 9.02 12.51 6.26 6.99 3.50
Explanation of the table: * in 2009 the peak time was considered the time from 8 a. m. to 8 p. m. each day and the nonpeak time from 8 p. m. to 8 a. m. each day. Starting from 2010 the peak time is the time from 8 a. m. to 8 p. m. on business days and the non-peak time from 8 p. m. to 8 a. m. on business days and round the clock on rest-days and holidays.
As in case of the obligations, applicable to fixed telecommunications operators, starting from 1 January, 2010, Bit Lietuva UAB, Omnitel UAB and Tele2 UAB must cover the costs, pertaining to the networks interconnection, necessary in order to be able to terminate calls (with the exception of the communication line) at their own expense and the implementation and provision of the communication line must be ensured by the operator who is able to offer the lowest price for such works. The operators, who interconnect their networks, must share the communication line implementation and provision costs in half. RRT, upon analyzing the reference offers to interconnect electronic communications networks of Bit Lietuva UAB, Omnitel UAB and Tele2 UAB, identified certain deficiencies in the conditions for implementation and provision of the communication lines. When performing the supervision of the prices of communication lines, used for interconnecting networks, RRT provided the operators with the explanations regarding regulation of prices of the communication line and sharing of charges for the communication line. In September 2010 RRT received the complaint from Tele2 UAB regarding the potential violation of the non-discrimination obligation, imposed on Omnitel UAB on the call termination market, relating to the Destination Omnitel payment plan, offered by TEO LT, AB and the conditions of the corresponding agreement between Omnitel UAB and TEO LT, AB. RRT, upon performing the investigation and evaluating the conditions of the agreement between TEO LT, AB and Omnitel UAB, established that Omnitel UAB and TEO LT, AB have concluded an agreement whereby Omnitel UAB applies lower call termination prices to TEO LT, AB than those stated in the publicly available reference offer, i. e. Omnitel UAB does not observe the imposed non-discrimination obligation. RRT determined the violation of non-discrimination obligation and required to eliminate it by the established deadline. Taking the aforementioned into consideration, Omnitel UAB eliminated the established violation of the non-discrimination obligation, i. e. changed the agreement conditions and recalculated the prices, which had been applied to TEO LT, AB, for the entire time period of existence of the violation.
Supervision of broadcasting transmission services

As stated in Annex 1 to the present Report, when performing the study of the market of broadcasting transmission services to deliver broadcast content to the end user, RRT defined seven markets and
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established the undertakings, having significant power on the relevant markets: TEO LT, AB on one market and Lietuvos Radijo ir Televizijos Centras AB on the remaining markets. The following obligations were imposed on the undertakings, having significant power on both previously defined and new markets: obligation to provide access, non-discrimination obligation, transparency obligation, price control and cost accounting obligation, accounting separation obligation. The price control obligation ensures that the prices of regulated services provided by the undertaking are not higher than the costs, including the return on investment calculated according to the Rules for Cost Accounting approved by RRT. RRT performs the audit of the cost accounting and accounting separation systems of Lithuanian Radio and Television Centre AB and TEO LT, AB with the aim to verify whether Lithuanian Radio and Television Centre AB and TEO LT, AB during the reporting year performed accounting of their costs and separated their accounting in observance of the requirements prescribed by RRT. The audit procedure is different from the set of the companies financial statements and the audit of the data, substantiating the statements, since the audit, performed by RRT, is aimed not at the financial data and set of financial statements of the company, but rather at the regulation accounting and reports (cost and revenue accounting, management accounting) in order to verify the reliability of the cost accounting information, intended for the price regulation purposes. As foreseen in the Rules for Cost Accounting, in 2010 RRT audited the data of cost accounting and accounting separation of Lithuanian Radio and Television Centre AB and TEO LT, AB of 2009. The audit agreement was concluded in June 2010, the audits were completed in September 2010 (the audit of Lithuanian Radio and Television Centre AB) and in December (the audit of TEO LT, AB). The auditors conclusions are publicly available at the website of RRT at www.rrt.lt . As stated above, in the end of February 2010 the new price control obligation entered into effect whereby Lithuanian Radio and Television Centre AB and TEO LT, AB must ensure that the prices of digital terrestrial television broadcasting transmission services are no higher than their costs. In order to evaluate the observance of the said price control obligation, RRT needs the information on the costs of digital terrestrial television broadcasting transmission services. The detailed information on the costs of the aforementioned wholesale services must be furnished by TEO LT, AB and Lithuanian Radio and Television Centre AB by 1 June, 2011. In order to verify if the prices of digital terrestrial television broadcasting transmission services are based on costs, RRT requested Lithuanian Radio and Television Centre AB and TEO LT, AB to provide the calculations of costs of the services, however, the received information was not audited and was insufficient to make final conclusions. Comparing the conditions of the reference offers on provision of broadcasting transmission services, provided by Lithuanian Radio and Television Centre AB and the actual service provision conditions, established in the agreements concluded between Lithuanian Radio and Television Centre AB and the broadcasters, certain cases of failure to observe the transparency and non-discrimination obligations were observed, due to which in the beginning of July of 2010 and at the end of August of 2010 Lithuanian Radio and Television Centre AB was requested to renew the conditions of its reference offers of provision of broadcasting transmission services and specify the discounts and the conditions for granting such discounts,
17
17
Accounting and price control. [last viewed 18 February, 2011]. The Internet access at: http://www.rrt.lt/lt/verslui/konkurencijosprieziura/apskaitos-ir-kainu-kontrole.html#Sanaud_audit
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which were actually applied to the broadcasters. Taking the requests of RRT into consideration, Lithuanian Radio and Television Centre AB eliminated the said deficiencies.
Supervision of roaming services

Upon comparing the publicly announced prices of the retail international roaming services with the requirements, established in Regulation (EC) No. 544/2009 of the European Parliament and of the Council and Regulation (EC) No. 717/2007 of the European Parliament and of the Council, no violations have been established. Upon collecting the information on the revenues and scopes of wholesale roaming services and upon calculating the average service revenues and comparing them with the provisions of the said regulations, no violations have been established. Checks of retail service prices are performed each quarter, checks of wholesale prices each half-year. The information on supervision of roaming services is made publicly available on the website of RRT at www.rrt.lt.
Encouragement of market self-regulatory mechanisms

The electronic communications market is among the most rapidly developing both in terms of electronic communications networks and the services, therefore the relevant legal framework must be regularly reviewed and adapted in order to respond to the market needs. Referring to the fact that more and more issues regarding the common use of electronic communications infrastructure arise on the market and the existing legal framework is not sufficient for avoiding the abuse by the owner of the communications cable duct system when providing common access to the existing infrastructure and in order to ensure efficient and transparent regulation of the electronic communications sector, RRT, upon evaluating the opinion of the market participants, made the decision to supplement the legal framework with a relevant methodology, which would regulate the procedure and algorithm for identification of vacant/occupied space in the communications cable ducts. In 2010 RRT, for the purpose of being able to quickly respond to the situation on the market, commenced the procedure of preparation of the Methodology for Calculation of Occupation of Communications Cable Ducts (hereinafter referred to as the Methodology). RRT evaluated the international practice, analyzed the practice of provision of access to the communications cable ducts systems for common use in Lithuania and announced the public consultation with regard to the potential Methodology. The purpose of the consultation was to learn the substantiated opinions, suggestions and comments of the market participants with regard to viability of preparation and potential content of the Methodology and, taking into consideration the market participants opinion, prepare the Methodology as an efficient market self-regulatory mechanism. Upon analyzing all the received comments and suggestions, RRT made the decision to transpose the main provisions of the Methodology into the valid Rules for the installation and use of electronic communications infrastructure. By Order No. 1V-571 of the Director of RRT of 21 May, 2010 the amendment of the Rules for the Installation and Use of Electronic Communications Infrastructure was approved. The supplementation of the legal framework by the said amendment is aimed at removal of any uncertainties or prerequisites for different treatment of the real occupation of communications cable ducts. The said amendment, legitimating the main provisions of the Methodology, is likely to become another market self-regulatory tool, allowing for
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transparent evaluation of the substantiation of refusals to provide access to communications cable ducts systems without participation of RRT in the process. A significant tool for the encouragement of the electronic communications market self-regulatory mechanisms is the ensuring of simple, clear and efficient procedures for resolution of disputes between the undertakings operating on the markets.According to a compulsory advanced extrajudicial procedure, RRT resolves disputes between undertakings providing electronic communications networks and/or services. Disputes are resolved according to the Rules for Resolution of Disputes between Undertakings Providing Electronic Communications Networks and/or Services by the permanent Disputes Commission, formed by order of the Director of RRT.
Shared use of infrastructure

The Rules for the Installation and Use of Electronic Communications Infrastructure constitute the legal basis to the market participants for shared use of the existing electronic communications infrastructure, including communications cable duct system, thus avoiding the economically disadvantageous overlapping of infrastructure. The possibility of shared use of the electronic communications infrastructure is among the essential tools which contribute to the development of broadband in Lithuania. According to the data of RRT, the costs of ground-digging works, laying of communications cables and other similar works amount to 80 per cent of the electronic communications network construction costs, therefore, referring to the provisions of the Rules and using the existing infrastructure for the development of electronic communications networks, providers of electronic communications services have the possibility to use the funds, allocated for investments, more efficiently and cost-effectively. It should be noted that the shared use of electronic communications duct system in Lithuania has been a marketable service for many years, an in other EU Member States providers of electronic communications networks and services quite frequently lack legal framework for demanding access to the existing communications cable duct system. When executing the supervision of the shared use of the electronic communications infrastructure, provided for in the Rules, in 2010 complaints provided by natural and legal persons were investigated, representatives of apartment buildings communities and other infrastructure owners were consulted regarding shared use of infrastructure. Representatives of RRT cooperated, consulted and participated in meetings with the Competition Council for the purpose of resolving the dispute between TEO LT, AB and Telerena UAB regarding the shared use of infrastructure. Taking into consideration the received complaints and arising problems RRT supplemented the Rules with the provisions on identification of occupation of communications cable ducts. By Order No. 1V-571 of the Director of RRT of 21 May, 2010 the amendment of the Rules for the Installation and Use of Electronic Communications Infrastructure were approved. ,For the purpose of ensuring that the investment into the development of electronic communications networks is as efficient as possible, i. e. in order for the already implemented infrastructure to be used efficiently and the operators not to be forced to overlap it without any reason, in 2010 RRT initiated the development of processes of publicizing the information on the already implemented infrastructure. For the said purpose the specialists of RRT had meetings with representatives of municipalities of the five largest Lithuanian cities and analyzed the existing situation by storing, processing, and publicizing the geo-data on the underground infrastructure. In addition, meetings were held with representatives of V GIS Centras, the
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National Land Service under the Ministry of Agriculture of the Republic of Lithuania and the Association of Local Authorities of Lithuania. The result of such cooperation was the conference, arranged by RRT in December of 2010 for the participants of electronic communications market, entitled The Benefit of Network Infrastructure for Development of Technologies. All the participants of the conference agreed that one of the most efficient ways to reach the consumer is to use the existing underground infrastructure. The following questions were discussed during the seminar: are there any appropriate conditions for that? Does the potential provider of electronic communications services have sufficient information on the infrastructure, implemented on the territory of the Republic of Lithuania? Where can one obtain such data, whose possibilities would be provided to a service provider, who is going to expand its range of services? The information on the digital spatial data on the underground infrastructure, stored at municipalities and the possibilities of electronic access to such information was provided by representatives of S Vilniaus Planas and Klaipda City Municipality, a speech was given by a representative of the Association of Local Authorities of Lithuania. The representative of the National Land Service under the Ministry of Agriculture of the Republic of Lithuania explained the legal provisions on storage of and access to the data. The interests of the operators, relating to the problems, possibilities and prospects, pertaining to access to the data were presented by representatives of Lithuanian Telecommunications Operators Association, Lithuanian Cable Television Association, TEO LT, AB, Mikrovisatos TV UAB and Tele 2 UAB. In 2011 RRT, Vilnius City Municipality and S Vilniaus Planas intend to undersign a tripartite memorandum of understanding with regard to cooperation when performing common development of electronic access to the system of digital spatial data on underground infrastructure with the further aim to conclude the cooperation agreement regarding common development of the system of electronic access to the digital spatial data on the underground infrastructure. The parties recognize that an efficient and continuous functioning of the system is important for the purpose of reduction of the costs of development of electronic communications networks in Vilnius City. In order for the system to function efficiently, it is necessary to develop electronic access to the system via electronic banking or similar systems and implement a common website with additional functions, such as the possibility to generate comments on the geo-data. In order to be able to quickly provide replies to the most frequently asked questions, the website of RRT
18
presents the FAQ regarding shared use of the infrastructure.
Number portability service

The number portability service gives the user a greater freedom to choose a service provider according to the most important criteria: quality and variety of services, prices, loyalty schemes, attractiveness of servicing, etc. This is advantegous for consumers, since for the purpose of retaining the users, the service providers make more and more attractive offers. According to the data of RRT (see Figure 28), from 1 January, 2004, i. e. the date of commencement of implementation of the said service, to 1 January, 2011 consumers used the number portability service (migrated) 569,746 times, including 552,913 transfers of mobile telephone numbers, 16,759 fixed telephone geographic numbers and 74 fixed telephone non-geographic/service numbers. By 2011 about 10.2 per cent of all the active users have used the number portability service.
18
RRT. Common use of the infrastructure [last viewed 18 February, 2011]. The Internet access at: http://rrt.lt/lt/verslui/salygos-veiklai/bendras-infrastrukturos-naudojimas.html
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During the time period of one year, i. e. from 1 January, 2010 till 31 December, 2010 mobile telecommunication consumers used the number portability service 123,440 times (see Table 13), fixed telephone numbers were transferred 3,337 times. 2010 2009 2008 2007 5131 2006 2005 2004 0 3456 94048 1675 35457 100000 200000 300000 400000 500000 600000 129505 16833 18043 12540 300824 9013 205312 428233 552913
Number portability fix.
Number portability mob.
Figure 28. Distribution of number portability amongst fixed and mobile telephone numbers in 20042010
Source: RRT
When implementing the Directive 2009/136/EC of the European Parliament and of the Council of 25 November, 2009, RRT is going to change the conditions of ensuring the right of the subscriber to retain the telephone number when changing the telecommunication service provider or the location and the way of provision of services by shortening the time period of provision of the service from 5 days to 1 day, i. e. starting from May 2011 the mobile telecommunications service providers must ensure to the consumers the right to, within the time period of one business day, change their telecommunication network operator, while retaining their telephone number, which will create even more favourable conditions for the consumer to choose a service provider.
Table 13. Statistics of mobile telephone number portability from 1 January 2010 to 31 December 2010
Transferred from Bit Lietuva UAB CSC Telecom UAB Eurocom UAB Eurocom Plius UAB Omnitel UAB Tele2 UAB Teledema UAB Total: Source: RRT Bit Lietuva UAB CSC Telecom UAB 44 5 Euroco m UAB Euroco m Plius UAB 526 42 99 397 27,529 8,996 346 37,273 13 66 8 1 132 18 18 2,548 1,638 155 5,008 15,936 643 30,295 580 45,791 4,923 402 585 34,501 84 2,072 1,243 Transferred to OMNITEL TELE2 UAB UAB Teledema UAB Total:
13,294 20
10,121 4
1,524
25,509 71 99 1,499 66,716 27,821 1,725 123,440
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Selection of a service provider
Starting from 1 January, 2003, carrier selection service has been in operation in Lithuania. The service has been foreseen in Article 19 of the Directive 2002/22/EC of the European Parliament and of the Council (the Universal Service Directive). The service was implemented to encourage competition in the electronic communications sector by ensuring the possibility for subscribers to public telecommunication networks and/or public
telecommunication services, which are offered by providers having significant power on the market of connection to public telecommunication network and using the network at a fixed location, to select any provider of publicly available telecommunication services and use the public fixed telecommunication services offered by that provider. Subscribers can use the services by dialing the short telephone number from the 10XX series without performing any additional procedure, intended for selection of another provider of public telecommunication services, or subscribers can select another provider of public telecommunication services by way of carrier pre-selection, i. e. the subscriber does not need to dial the short telephone number from the 10XX series when selecting the carrier. In 2010 one carrier selection code was allocated (as in 2009). Since 2003, 21 operator codes from the 10XX short telephone number series were allocated to operators in total. There are 16 service providers whose public telecommunication services can be used by dialing a carrier selection code.
Promotion of competition in the postal services sector

In 2010 certain essential changes occurred in the European postal services sector of the postal market. When implementing the Third Postal Directive most countries opened their postal markets for competition. Lithuania, just like ten more Member States, has chosen the possibility to postpone the complete opening of the postal service market until 31 December, 2012. The overall economic recession did not bypass the postal and courier services market. The market of postal correspondence, which underwent significant reduction in 2009, continued its decrease in 2010. The unfavourable economic situation and the reduced consumers purchasing power resulted in the decreased use of postal services. In addition, the continuous reduction of the amount of postal correspondence resulted from the growth of electronic documents use both in business and state institutions, as well as other competitive influence on the postal market, brought by other means of electronic communications. During the time period of 2009 2010, the total postal and courier services market, in terms of the volume of postal correspondence (including direct mail), reduced by 12.9 per cent. The level of competition on the postal correspondence market remained as low as in the previous year since a 50-gram weight limit of reserved postal items is applied to domestic correspondence, direct mail and the received international items of correspondence until 31 December, 2012. As in the previous years, Lietuvos Patas AB occupies the largest share of the postal services market in terms of the volumes of sent and received items of correspondence, including the direct mail (71.3 per cent in 2010). During the same time period positive trends remained on the liberalized market of postal parcels and in 2010 the market saw a sudden growth leap (by 23 per cent) in terms of the volume of sent and received postal parcels, which gives reasons to believe that in the future the segment will become the main one on the postal and courier services market. The increase of the amount of postal items resulted not only from the
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revitalized export but also from the growth of e-trade, both national and international. The companies, which are engaged in express mail services, emphasize that the flow of e-trade of postal items from Lithuania to a foreign country and vice versa occupies a more and more significant share. The results of activities of the largest enterprises, which were engaged in express mail services on the Lithuanian market, show that the volumes of postal items, in terms of revenues, grew by approximately 20 per cent in 2010. The said growth was 15 per cent more rapid than the total growth of revenues from provision of courier services in 2010. In terms of revenues the total postal and courier services market grew by 5.6 per cent in 2010, compared to 2009, and reached LTL 238.6 million. In 2010 the courier services market, in terms of revenues, amounted to LTL 135.6 million and, after a rather drastic recession in 2009 (-19.9 per cent), went up by 5.6 per cent. The operators, who dominated on the courier services market in 2010, remained the same as in 2009: DPD UAB, DHL UAB and Venipak LT UAB, who correspondingly occupy 28.8 per cent, 11.4 per cent and 7.9 per cent of the market share. In 2010 the postal market grew by 5.5 per cent and reached LTL 103.0 million. In terms of revenues the largest share of the postal services market was occupied by Lietuvos Patas AB, i. e. by 94.5 per cent.
Postal and courier services market participants

In 2010 RRT entered 10 undertakings into the list of postal and/courier service providers, and deleted 24 postal and/or courier service providers from the list. At the end of 2010, 71 undertakings operated on the postal and/or courier service market, including 12 which provided postal services and 71 which provided courier services (see Figure 29). Compared to 2009, in 2010 the number of market participants reduced by 15.5 per cent (from 84 undertakings in 2009 down to 71 undertakings in 2010). The dynamics of providers of postal and courier services in Lithuania in 2005-2010 shows that the number of postal service providers was growing until 2009 and dropped down by 20 per cent in 2010 (from 15 in 2009 down to 2010 in 12).
2010 2009 2008 2007 2006 2005 0
71 12 84 15 78 15 81 14 76 11 74 11
50 Providers of courier services Providers of postal services
100
Figure 29. Dynamics of providers of postal and courier services in Lithuania in 20052010
Source: RRT
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Tariffs and cost accounting of universal postal services
Lietuvos Patas AB is obliged to provide universal postal services on the entire territory of the country, the said undertaking must ensure uninterrupted provision of universal postal services to all the users of postal services on the same conditions, at the same tariffs applicable both to urban and rural residents. The price caps for universal postal services are approved by the Government of the Republic of Lithuania. RRT supervises that the tariffs of universal postal services are transparent, non-discriminating, cost-based and affordable to all the consumers of postal services. In 2010 the price caps of universal postal services, approved by the Government of the Republic of Lithuania on 1 September, 2007, were in effect. In 2010 sending of a domestic non-priority letter, weighing less than 20 grams, cost LTL 1.35, sending of a priority letter - LTL 1.55. Compared to the universal postal services tariffs, established in the EU Member States, the tariff of a priority letter of the first weight class according to the costs of sending a letter, valid in Lithuania (EUR 0.45), is lower than the EU average (EUR 0.51). Upon evaluating the purchasing power of the residents of the European countries, the tariff of a letter in Lithuania is to a certain extent higher than the average price (see Figure 30). Figure 30. The price of a domestic letter, weighing up to 20 g, in 2009, EUR (PPS)
0,9 0,8 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0,0
Average 0,5
Lithuania
Romania
Latvia
Estonia
Liechtenstein
Bulgaria
Slovakia
France
Austria
Poland
Sweden
Ireland
Czech Republic
Luxembourg
Portugal
Germany
The Netherlands
Norway
Denmark
Hungary
Belgium
The UK
Finland
Greece
Cyprus
Spain
Note: There is no price for a 20 g letter in Slovakia. The price for a 50 g item of correspondence is specified. Source: Copenhagen Economics study Main Developments in the Postal Sector 2008-2010, Final Report, performed by order of the European Commission in November 2010.
The purchasing power standard (PSS) is the unit of the artificial currency, chosen for the European Union Member States, in which the purchasing power parities for the EU Member States are expressed. One PSS corresponds to the same set of goods and services in all the Member States, however, in each Member State, taking the price level into consideration, there is a need for a different amount of the national currency in order to be able to purchase the set of goods and services.
Switzerland
Slovenia
Iceland
Malta
Italy
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The aforementioned universal postal service tariffs in Lithuania are applied to residents and enterprises, sending small amounts of mail. In 2010 the provider of universal postal services also applied specific tariffs of universal postal services to residents and enterprises, which sent more than 1,000 letters per calendar month. The provider of universal postal services must apply the principles of transparency and nondiscrimination in regard to specific tariffs and the relating conditions and, when setting the tariffs, must evaluate the non-incurred costs compared with the usually provided postal services. In order to harmonize tariff rates of universal postal services with the new provisions of the Law on ValueAdded Tax of the Republic of Lithuania (the tariffs for sending of a postal parcel weighing up to 10 kilograms and the tariffs for registration and evaluation of a postal item must be set without the value-added tax), the Resolution No. 903 of the Government of the Republic of Lithuania of 21 June, 2010 on the amending of Resolution No. 745 of the Government of the Republic of Lithuania of 11 July, 2007 On the Approval of the Price Caps for Universal Postal Services entered into effect on 1 July, 2010. Starting from 1 July, 2010 the tariff of sending of one postal parcel reduced from LTL 9.79 down to LTL 8.3 and from LTL 0.59 down to LTL 0.5 for each kilogram. The charge for registration and evaluation of the postal parcel reduced from LTL 14.16 down to LTL 12. The price share of processing of the postal parcel, sent to the European Union Member States, reduced from LTL 20.65 down to LTL 17.5 in Lithuania. The tariffs for the sent postal correspondence did not change, since no VAT was applied to them. RRT supervises that the cost accounting system of Lietuvos Patas AB, the provider of universal postal services, is transparent, well-grounded and compliant with the requirements for cost accounting of universal postal services, established by RRT and the main cost accounting principles (causality, cumulation, objectivity, consistency, transparency, publicity and usefulness). In 2010 RRT performed the analysis of the Annual Report on Costs of Universal Postal Sservices and Reserved Postal Services of 2009, provided by Lietuvos Patas AB, and determined that Lietuvos Patas AB calculates its costs in observance of the requirements established by RRT. In 2010 an independent audit of Lietuvos Patas AB was performed with the aim of establishing whether the cost accounting system, used by the provider of universal postal services in 2009, complied with the principles and requirements for handling of cost accounting, established in the Rules on cost accounting of the provider of universal postal services. In addition, an analysis of the structure of self-cost of the services provided by the company was performed, the verification of correctness of the annual report on cost accounting was prepared, as well as other works and procedures were executed for the purpose of verification of the cost accounting system. The conclusions of the independent audit show that the information and data, provided in the annual cost accounting report, are correct. The cost accounting report of 2009 was prepared in observance of the requirements provided by legal acts.
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Figure 31. The costs of Lietuvos Patas AB incurred in 2006 2009, per cent.
Other 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2006 2007 2008 2009 Office maintenance, transportation expenses Electricity and utility services Depreciation Financial costs Taxes Consultations and other services Communication
Source: Lietuvos Patas AB reports on costs of universal postal services and reserved postal services for 20062009.
In Lithuania more than one half of the total costs of the provider of universal postal services are the costs relating to work remuneration. In 2009 salaries and social insurance costs of Lietuvos Patas AB amounted to 57 per cent and, compared to 2008, reduced by 6 per cent (see Figure 31). The costs related to salaries amount to the greater share of total costs of postal operators in most European countries (see Figure 32).
Figure 32. The costs of Lithuanian and other European countries universal postal service providers, relating to salaries in 2009, per cent
80 70 60 50 40 30 20 10 0
Luxembo
Czech
The
Denmark
Germany
Switzerland
Hungary
Portugal
Belgium
Norway
Italy
Iceland
Sweden
Finland
Ireland
Lithuania
Source: the Copenhagen Economics study Main Developments in the Postal Sector 2008-2010, Country Fiches, November 2010; Report on the Costs of Universal Postal Services and Reserved Postal Services of Lietuvos Patas AB in 2009.
Slovenia
Slovakia
The UK
Greece
France
Austria
Malta
Latvia
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When analyzing the data, the trend of reduction of labour costs can be observed in the European countries: in 1990 salarieson the average amounted to 80 per cent of the total costs, in 1997 to 71 per cent, at present to approximately 60 per cent. The difference of labour costs between individual countries could be explained by a different level of automation of production processes and the extension of the ordered services. Figure 33 shows the comparison of the share of postal services within the GDP and the profit margin of the national postal operators in the European Union Member States.
Figure 33. The share of postal services within the GDP, per cent
1,6 1,4 1,2 1 0,8 0,6 0,4 0,2 Austria The Belgium 0 Germany The UK Denmark Finland Norway France Sweden Czech Ireland Romania
Poland Portugal Iceland
Spain Luxembourg Italy
Source: the Copenhagen Economics study Main Developments in the Postal Sector 2008-2010.
Lithuania Malta Bulgaria
Latvia Slovenia
Hungary Slovakia Estonia
Greece Cyprus
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CREATING PRECONDITIONS FOR TECHNOLOGICAL DEVELOPMENT OF ELECTRONIC COMMUNICATIONS MARKET Promotion of investments and development of advanced ICT technologies
Radio frequency management
The demand and significance of radio frequencies continues to grow. The regulation of the sector requires special attention for the purpose of efficient use and control of radio frequencies. The most important role is played by the principles of technological neutrality, proportionality, minimum regulation, legal certainty, economic development, ensuring of efficient competition, protection of consumer rights, transparency, and non-discrimination. Planning of use of radio frequencies allows for ensuring efficient use of the limited resource and coordination of different needs of the society. For the purpose of maximizing the efficient use of radio frequencies and avoiding harmful interference, it is important to harmonize the use of specific radio frequency bands on the widest level possible. RRT is actively involved into the activities of the International Telecommunication Union (hereinafter referred to as the ITU) and closely cooperates with the committees and working groups of the Commission, Electronic Communications Committee (ECC) of the European Conference of Postal and Telecommunications Administrations and its working groups and NATO FMSC. The European Union Member States have reached a lot in the area of spectrum harmonization. Lithuania also contributes to the process by implementing the EU radio spectrum harmonization measures. The specialists of RRT actively participate in preparation of documents on the radio spectrum management issues. RRT executes its activities in observance of the requirements, provided by the legal acts of the Republic of Lithuania and the EU, the Radiocommunication Regulations of the ITU, international and regional as well as bipartite and multipartite agreements. Due to a specific geographical situation the issues on coordination of radio frequencies with non EU Member State countries are especially relevant to Lithuania for the purpose of implementation of both national interests and the EU radio frequency harmonization measures. Therefore the use of radio frequencies, harmonized on the EU level, requires coordinating the plans and activities both among the EU Member States and among the neighbouring states who are not EU Member States. As the number of radio frequency bands, which are harmonized for a specific purpose in the EU to provide pan-European services, is increasing, the borderline Member States of the EU often face specific situations relating to management of radio frequencies due to different radio frequency plans in the EU and the European countries, which are not Member States of the EU. In 2010 the regulation of radio frequencies in Lithuania, including the issuance of licences to use electronic communications resources, was further harmonized with the EU regulatory system. Directive 2009/114/EC of the European Parliament and of the Council of 16 September, 2009
19
and Commission
19 Amending the Council Directive 87/372/EEC on the frequency bands to be reserved for the coordinated introduction of the panEuropean cellular digital land-based mobile communication in the Community (OL 2009 L 274, p. 25)
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Decision 2009/766/EC of 16 September, 2009 on the harmonisation of the 900 and 1800 MHz frequency bands for terrestrial systems, capable of providing pan-European electronic communications services in the Community (OL 2009 L 274, p. 32) were implemented. According to the said documents, the radio frequency bands, in which the GSM mobile radiocommunication networks are presently operated, were also allocated to other terrestrial radiocommunication systems, able to function together with GSM. In 2010 careful attention was payed to the further implementation of digital terrestrial television. The activities on both international, i. e. the prospects of use of the digital dividend and national context, were continued in the area for the purpose of ensuring the necessary supply of radiocommunication channels for digital terrestrial television.
International negotiations on coordination of radio frequencies

During the bilateral negotiations on coordination of radio frequencies between representatives of radiocommunication administrations of Lithuania and Poland, held on 28 29 April, 2010 in Warsaw, the issues of coordination and electromagnetic compatibility of radio frequencies intended for radio and television broadcasting were discussed. During the negotiations the conditions for launching digital television stations in Kaunas and Klaipda for broadcasting transmission of local programmes were created and the bilateral agreement was concluded with the communications administration of Poland whereby the criteria for sharing and coordinatingg priority radiocommunication channels in the 913.9914.9 MHz and 958.9959.9 MHz radio frequency bands were established. The agreement provided the Lithuanian mobile telecommunication operators with the possibility to efficiently use the 913.9914.9 MHz and 958.9959.9 MHz radio frequency bands, previously used for the CT1 systems and GSM systems in the borderline areas between Lithuania and Poland. In 2010 the tripartite agreement with Byelorussia and Poland regarding the use of BPP stations within the 34103500/35103600 MHz radio frequency band, prepared during the international negotiations held on 20 24 October, 2008 in Vilnius, was also concluded. The draft of the amendment of the existing bilateral agreement with Latvia on the use of BPP systems within the 34103800 MHz radio frequency bands was reviewed. The new agreement is to be undersigned in the nearest future. In addition, the draft of the bilateral agreement regarding the use of wireless communication fixed systems within the 59256425 MHz radio frequency band was prepared and forwarded to the Russian Federation.
Television
In 2010 television networks of several types were operated in Lithuania. Paid television services were provided by cable television, multichannel multipoint distribution system (MMDS), Internet protocol television (IPTV), digital terrestrial television (DVB-T) and satellite television networks and the free-of-charge television services were provided by analogue and digital terrestrial television networks. Although the analogue television is no longer developed in Lithuania, at the end of 2010, 28 analogue terrestrial television stations were operated (126 in 2009), transmitting local television programmes and 95 stations, transmitting national television programmes via five analogue terrestrial television networks. In 2012 the analogue terrestrial television is going to be replaced by digital terrestrial television (DVB-T), whose first station was connected in Lithuania already on 29 August, 2003. During the time period of seven years the
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digital television progressed to the extent it became possible to cover four national DVB-T networks and several additional stations in Vilnius and Kaunas (see Figure 34). The phase of the development of the four functioning DVB-T networks, foreseen to be completed prior to switch-off of analogue television, is the final one, therefore, it is not performed at the same speed as in 2008, the year of the most intensive development of digital television when 44 DVB-T stations were put into operation. Before 2010 DVB-T networks were already developed to the extent all the largest Lithuanian cities and most other densely populated Lithuanian areas, where more than 90 per cent of the Lithuanian inhabitants dwell, were within the DVB-T stations coverage territory. In 2010, 11 new DVB-T stations were installed, which, however, resulted in a relatively small number of residents able to watch DVB-T, since during the said phase the development of the DVB-T networks was mostly focused on the quality coverage of rarely populated territories. Apart from the increase of the coverage territories the attention was payed to the implementation of high-definition television (HDTV), which is able to completely reveal the advantages of digital television. In October of 2010, after RRT issued the licence to use the 25 channel for terrestrial digital television, the residents of Kaunas and its area joined the residents of Vilnius region, who are able to watch three high-definition television programmes since September of 2009. In 2010 RRT continued the systematic and consistent preparation for switching the analogue television off by developing and correcting the plans of the local stations, which are to be connected outright after the disconnection of the analogue television and at least four new DVB-T networks. In parallel RRT performed certain actions on the international level in order to legitimate the new radio frequencies/channels, intended for the television broadcasting service, which would ensure additional spectrum resources to the local broadcasters and new operators of the new DVB-T networks after the implementation of the digital dividend within the radio frequency band, occupied by television channels 6169. In order to protect the already planned and operated DVB-T stations against possible interference, determining the reduction of the foreseen coverage territory, RRT continuously analyzed the new radio frequencies/channels, allocated to the television broadcasting services in other states (not only the neighbouring ones) and the changes of the conditions for use of radio frequencies, foreseen in the Geneva Plan GE06 and performed international coordination procedures.
th
90 80 70 Stoi skaiius 60 50 40 30 20 10 0 2003 2004 2005 2006 2007 Metai 2008 2009 2010
MPEG-2 MPEG-4 (H.264) HDTV
Figure 34. The growth of the number of digital television stations in 20032010
Source: RRT
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By commission of RRT, the market opinion and public research company Spinter Tyrimai performed and, at the beginning of 2010, presented the survey of residents of Lithuania, aimed at investigation of the use of digital television by the countrys residents. The survey, which questioned 6,004 respondents, showed that on the average 47 per cent of the Lithuanian residents watched analogue terrestrial television and 10 per cent of the Lithuanian residents watched digital terrestrial television. An analogical study was performed in November and December of 2010. The results of the study showed that in 2010 the number of residents who watched analogue terrestrial television reduced by 6 per cent and the number of those who watched digital terrestrial television grew by 9 per cent and amounted to approximately 19 per cent. In addition, one should also emphasize the significant difference between the urban and rural residents. The results of the performed study showed that at the end of 2010 the analogue terrestrial television was more frequently used at district municipalities: Panevys district (79 per cent), Kupikis district (76 per cent), Rietavas (75 per cent), ilut district (74 per cent), Alytus district (74 per cent), Moltai district (74 per cent), Taurag district (70 per cent) municipalities; the lowest spread of analogue television was observed in the largest cities, i. e. in Vilnius (16 per cent), Kaunas (21 per cent), Klaipda (14 per cent), iauliai (19 per cent), Visaginas (16 per cent) and Akmen (20 per cent) district municipalities. The reports of the survey are available on the website of RRT . The results of the survey were discussed during the meetings of the Coordination Council, approved by Order No. 3 9 of the Minister of Transport and Communications of the Republic of Lithuania of 14 January, 2009, for provision of proposals on the issues of disconnection of analogue terrestrial television, development of the digital television, transmitted by different technologies, and implementation of interactive services,. The Coordination Council composed of the representatives of the Ministry of Transport and Communications, the Information Society Development Committee under the Government of the Republic of Lithuania, RRT, the Ministry of Social Security and Labour of the Republic of Lithuania, the Radio and Television Commission of Lithuania, the Chancellery of the Government of the Republic of Lithuania and the Ministry of Culture of the Republic of Lithuania was set up to provide suggestions to the Minister of Transport and Communication on the process of switch-off of analogue terrestrial television, development of digital television and implementation of interactive services.
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Mobile radiocommunication service

Mobile radiocommunication is widely used by both companies for satisfaction of their internal communication needs and by state institutions for the activities, pertaining to national defense, guarding the state borders, national security, maintenance of public order and state rescue services. However the largest share of the spectrum, allocated for the local service, is used by public network operators, who are granted the right to launch public mobile radiocommunication system networks in Lithuania and provide electronic communications services over such networks. In 2010 RRT received 1,020 requests and inquiries about the use of mobile radiocommunication (1,193 in 2009). Upon investigation of the said requests, 496 radiocommunication network stations were registered and 203 licences to use mobile service radio frequencies, 189 licences to use ship stations and 131 licences to use aircraft stations were issued.
20
The reports of surveys of the countrys residents [last viewed 22 March, 2011]. The Internet access at: http://www.rrt.lt/lt/apzvalgos-irataskaitos/rrt-uzsakymu-atliktu-ph6r.html
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In 2010 RRT executed supervision of radio frequencies, dedicated to mobile communication, through which 1,625 internal radiocommunication networks, 129 terrestrial stations and 280 aircraft stations of the aeronautics mobile service, 34 shore stations and 734 ship stations of the maritime mobile service operated. At the end of 2010 the operators of public mobile radiocommunication networks used 4,261 base stations in the radio frequency bands, allocated to them. According to the licences, issued for non-commercial experimental use, operators registered 7 base stations, in which LTE FDD equipment was tested. Compared to 2009, in 2010 the number of base stations grew by 8.4 per cent (see Figure 35 and Figure 36).
2010 2009 2008 2007 2006 2005 2004 2003 2002 1400 1441 1900 2400 2900 3400 3900 1787 2176 2021 2413 3054 3624 3932
4261
4400
Figure 35. The growth of the number of base stations of public mobile radiocommunication networks in 20022010
Source: RRT
UMTS 1076 2010 DCS 527 GSM 2459 UMTS 903 2009 DCS 490 GSM 2347 2008 UMTS 728 DCS 459 GSM 2247 2007 UMTS 520 DCS 407 GSM 1935 2006 0
Source: RRT
UMTS 83 DCS 380 GSM 1760 500 1000 1500 2000 2500
Figure 36. Base stations of public mobile radiocommunication networks in 20062010 During 2010 operators of public mobile radiocommunication system networks (GSM 900 and DCS 1800) and the third generation mobile radiocommucation networks (UMTS/IMT-2000) registered 356 base stations and at the end of the year used 4,062 base stations. Compared to 2009, in 2010 the number of
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GSM-900 base stations grew by 4.8 per cent, the number of DCS-1800 base stations grew by 7.5 per cent, the number of UMTS/IMT-2000 base stations grew by 19.2 per cent (see Figure 37).
UMTS 1076
DCS 527 GSM 2459
Figure 37. The number of base stations in 2010.

Source: RRT
222 base stations operated in the digital terrestrial mobile radiocommunication networks, intended for the activities pertaining to keeping the public order, state security services, guarding the state borders and the national security. In 2010 Lietuvos Geleinkeliai AB completed the launching of the railroad radiocommunication (GSM-R) network and RRT registered 126 base stations of the network. In total, 496 new base stations were registered during 2010, which is approximately 20 per cent less than in 2009. In 2010 the number of registered GSM-900 network base stations was lower; the number of third generation mobile radiocommunication (UMTS/IMT-2000) networks base stations also was not growing very rapidly. When performing the international coordination of the radio frequencies, intended for the mobile service, with the communications administrations of the neighbouring countries, RRT coordinated 35 radio frequencies for mobile radiocommunication. Taking into consideration the requests of the neighbouring states RRT coordinated 26 radio frequencies intended for mobile radiocommunication. In 2003 RRT approved the List of Radio Frequencies which may be Used without an Individual Licence. Since the market of radiocommunication equipment, regulated by the said List, was increasingly expanding each year, until 2009 RRT made 14 amendments and supplements to the List and the scope of the document increased significantly. In order to make the document more convenient and accessible, the draft of a new list, much more comprehensive, was prepared. In 2010 RRT successfully notified the draft to the European Commission, coordinated it with the concerned institutions and approved it. In addition, Commission Decision 2010/166/EU of 19 March, 2010 on harmonised conditions of use of radio spectrum for mobile communication services on board vessels (MCV services) in the European Union was implemented, thus creating conditions for the passengers of cruise ships, travelling across the territorial sea waters of the Republic of Lithuania to receive mobile radiocommunication services. The new list was supplemented by new provisions in October, for the purpose of implementation of Commission Decision 2010/368/EU of 30 June, 2010, amending Decision 2006/771/EC on the harmonised use of radio spectrum in short range equipment. The said amendment unified the conditions for use of certain categories of short range radiocommunication equipment, used in Lithuania and other EU Member States.
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The List of Radio Frequencies/Channels which May be Used without an Individual Licence will be further supplemented and amended in 2011. With development of the technologies, the market segment of short range radiocommunication equipment is growing each year and the equipment is used more and more extensively, therefore, it is necessary to respond to the processes on the market in the appropriate manner and in due time in order to create the most favourable conditions for the Lithuanian consumers to use the latest achievements of science and industry.
Satellite and fixed radiocommunication service Fixed service

In 2010 the number of radio relay links (RRL) continued to grow. Figure 38 shows the growth of the number of RRL during the time period of 19912010. The growth is mostly related to the overall development of mobile communication networks. In addition, the project of security of the state border of Lithuania, related to monitoring of the state border, was successfully implemented and the demand for RRL of larger capacities increased, since the data transmission flows have lately been rapidly growing. The significant growth of the number of radio relay links of the fixed service has been observed for several years in a row. The growth results from the fact that operators faced the need to send larger flows of information over the internal networks. The volumes of provision of the mobile Internet services also increased. Compared to 2009, in 2010 the growth was as not as significant since other ways of data communication were also used in parallel, the use of fibre has especially grown.
2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 1999 1997 1995 1993 1991 64 276 128 544 1164 2142 2916 2800 2786 3366 3825 4222 5080 6067
6601
1000
2000
3000
4000
5000
6000
7000
Figure 38. The growth of the number of radio relay links in 19912010
Source: RRT
In 2010, 586 licences to use radio relay links were issued, which means that the radio frequency is used at 1,172 new radio relay link stations. In addition, in 2010 operators refused to use the frequencies in 52 radio relay links, due to which the total number of RRL increased only by 534.
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In 2010 RRT actively participated in the activities of the ITU and CEPT working groups, which resolve the issues relating to the setting of the new conditions of use of radio frequencies in fixed communication systems, the compatibility of such conditions with other radiocommunication services and use of radio spectrum resources. Referring to the corresponding international agreements, RRT continuously coordinates Lithuanias and neighbouring states fixed service stations. In 2010 RRT successfully implemented the electronic registration of the radio relay links which can be operated within 64000 64500 / 65000 65500 MHz and 74625 75875 / 84625 85875 MHz radio frequency bands. It greatly simplified the registration procedure.
Satellite service
In 2010 it was finished to amend the regulation of satellite communication networks and service providers in Lithuania and the frequencies, which may be used for satellite communication without licences, were established and granted to Skylink Lt UAB and ViaSat Inc. The operators notified of the commencement of satellite communication activities. ViaSat Inc. was granted the licence to use the frequencies in the territorial waters of Lithuania for the purpose of provision of maritime mobile communication network services. The said networks are going to provide the possibility to use the Internet at ships, sailing across the Baltic Sea. In 2010 RRT took active participation in the activities of CEPT working groups which resolve the issues relating to the setting of conditions for use of new radio frequencies of satellite communication systems, coordination of the said conditions with other radiocommunication services and efficient use of orbital and radio spectrum resources. One of the most relevant issues when preparing for the World
Radiocommunication Conference 2012 (WRC-12) is the use of 21.4-22.0 GHz band intended for satellite broadcasting service. The band is highly demanded, since it is most suitable for the provision of HDTV and 3D HDTV services. Last year the applications for implementation of new networks were further received, however, at present the band is already blocked, i. e. there is no more possibility to coordinate a new satellite network. In order to ensure the possibility to gain access to orbital resources in the future, Lithuania provided proposals regarding the conditions for allocation of special orbital resources to the countries, who do not have any networks in the frequency band and expressed its consent to the proposals that there should be a possibility to also implement radiocommunication systems within the said band after the WRC12. RRT analyzed twenty-five international frequency information circulars, published by the ITU Radiocommunication Bureau each two weeks and intended for satellite services, which publish the advanced, coordination and notification statements of the states intending to implement satellite networks. Upon performing the technical analysis of the inquiries regarding potential interference by the new coordinated networks, in which Lithuania was identified as a country, whose allocations of orbital-frequency resources and the terrestrial communication systems can be influenced by the new satellite system, RRT provided 12 letters of objection to the states, which provided the inquiries, and to the ITU Radiocommunication Bureau. In 2010, Lithuania in cooperation with the administrations of the neighbouring states coordinated six satellite communication Earth stations. Representatives of RRT participated in the EC working group for implementation of mobile satellite communication services (MSS) in the 2 GHz frequency band in order to ensure the implementation of the
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obligations established in the tender conditions for the operators which were selected on the EU level. So forth only one operator, i. e. Solaris, has sent its satellite to the orbit, however due to the antenna faults the beam does not cover all the EU Member States. Although Lithuania falls within the coverage of the beam of the said satellite, mobile satellite communication services are not yet provided. Another operator, i. e. Immarsat, is going to send its satellite in 2011. Lithuania has implemented all the EU legal acts regulating the operating conditions for the said operators. For the purpose of getting the radiocommunication specialists and the society familiarized with the issues of use of orbital frequency resources, representatives of RRT wrote the article Varybos dl Nekilnojamojo Turto Kosmose (Rivalry for Real Estate in Space), which was published in Issue No. 3 of the magazine Mokslas ir Technika (Science and Technology) and at the website of Space Technology Research Centre. When providing consultations on the issues of space communication, RRT closely cooperated with the Lithuanian Space Association.During the first international space conference Space Economy in the Multipolar World SEMWO10, arranged by the Lithuanian Space Association on 68 October, 2010 in Vilnius, representatives of RRT presented the speech Problems of Limited Orbital Resources and ITU Regulations for Satellite Services.
Spectrum engineering
The theoretic assessment of electromagnetic compatibility is one of the most important factors, allowing for ensuring smooth operation of radiocommunication stations. For the said purpose the electromagnetic waves propagation method, described in the International Telecommunication Union Recommendation ITUR P.1546, is most frequently used for the 30 3000 MHz frequency band. Recommendation ITU-R P.452 is used for calculation of the interfering signal in the frequency range higher than 3000 MHz and recommendations ITU-R P.525, ITU-R P.526 and ITU-R P.530 are used for calculating the useful signal. For the purpose of ensuring a higher quality of assessment of propagation of radio waves and electromagnetic compatibility, in 2010 RRT commissioned the measurements of the atmosphere refraction indicator and its gradients in different climatic areas of Lithuania. The said indicators are essential parameters, expressing the propagation of radio waves. According to the meteorological data, the average values of the refraction indicator were calculated during the time period of 20052009 in Vilnius, Kaunas, Klaipda and Maeikiai for the four seasons and the dependence of the refraction indicator values on the time of the day was examined. The obtained results showed that the largest refraction indicator occurs in summer and the smallest is in winter and spring. The fluctuations of the refraction indicator during the day in summer are the highest in the areas, more remote from the sea, i. e. in Vilnius where the refraction indicator changed by 3 per cent during the day. In winter the change of refraction indicator in Vilnius is the lowest with 0.6 per cent. In the coastal zone, due to the prevailing sea climate, the time of the day has almost no influence on the change of the refraction indicator. According to the parameters of atmosphere pressure, temperature and moisture, measured at different heights above the ground surface, the gradient of the atmosphere refraction indicator in Vilnius city was calculated. Depending on the height refraction indicator, the gradient changed from 30 km to 0 km . In 2010 inquires regarding 3,262 fixed service radio relay link stations which operated within the 140 GHz frequency range and regarding 724 wireless broadband access station sectors were forwarded to other
-1 -1
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countries for coordination. The replies were received that the communications administrations of the neighbouring states, according to the previously forwarded requests, had coordinated 2,736 radio relay link stations and 372 wireless broadband access station sectors. Inquires regarding 1,770 fixed service radio relay link stations and 16 wireless broadband access station sectors were received from foreign states for coordination. Responding to the said requests, RRT coordinated 1,822 fixed service radio link stations and 16 wireless broadband access station sectors. In addition, the Lithuanian fixed service stations, coordinated by RRT, were notified to the Register of the International Telecommunication Union. Inquiries for notification of 233 fixed service stations were sent. The analysis of conditions for use of radio frequencies was performed prior to granting the right to use 118 new wireless broadband access stations (375 sectors) and changing 64 previously registered stations (131 sectors).
Radio amateur activities

According to Article 60 of the Law on Electronic Communications, RRT sets forth the procedure for granting the right to engage in radio amateur activities, the conditions for such activity as well as the procedure and conditions for issuing authorisations to radio amateurs. The radio amateur qualification examination commissions, formed by the order of the
Director of RRT in the 5 major cities of Lithuania (Kaunas, Klaipda, Panevys, iauliai and Vilnius), examine the persons, wishing to engage in radio amateur activities and radio amateurs, wishing to obtain higher class licenses for radio amateur activities (equivalents of the CEPT licence) according to the prepared and approved questions of level B (national) and A (international) and the Harmonised amateur radio examinations certificates (HAREC), issued according to the CEPT Recommendation T/R 61-02. In 2010, 41 candidates provided their requests to take the qualification examinations. 35 persons successfully passed the examination: 32 those wishing to become radio amateurs, including 2 who passed examination on both levels and 3 radio amateurs - for acquisition of a higher international A Level licence. One person took the examination two times (for obtaining the national, and, later, the international licence). 5 persons have not taken their examination yet. In 2010, 249 licences were issued: 109 Class A licenses (equivalent to CEPT licence to engage in radio amateur activities), 62 Class B licenses (national), 78 licences to use radio call signs, including 6 - for identification of the repeater station and the radio beacon, 1 temporary licence, issued to a foreign citizen, 24 for use of a renewed radio call sign, 9 for using new radio call signs, 30 for occasional radio call signs and 8 for radio clubs (3 for a radio call sign, 3 for an occasional radio call sign and 1 for identification of the repeater station. In 2010 23 harmonized amateur radio examination certificates (HAREC) were issued, 37 new radio call signs were granted, 8 previously used radio call signs were changed, 11 four-digit radio call signs were granted. 18 radio amateurs renewed their activities. 30 new radio amateurs and 1 radio club were registered (see figures 39 and 40). At present there are 851 valid licences in the register of radio amateurs: 503 - for the radio amateur activities of Class A, 252 - for radio amateur activities of Class B, and 96 licences to use radio call signs. At present there are 776 radio amateurs holding valid licences and having 807 radio call signs and 16 radio clubs, having 16 radio call signs, there are 17 amateur repeater stations and radio beacons.
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In 2010, 31 radio amateurs and 2 radio clubs used the conditions, granted by Order No. 1V-624 of the Director of the Communications Regulatory Authority of the Republic of Lithuania of 13 May, 2009 On the Amending of Order No. 1V-1070 of the Director of the Communications Regulatory Authority of the Republic of Lithuania of 2 December, 2005 "On the Approval of the Specification of the Procedure for Granting the Rights to Engage in Amateur Radio Activities and the Conditions for Engaging in Amateur Radio Activities, which satisfied the radio amateurs wish to, together with the permission to engage in amateur radio activities, stated in the licence, receive an additional permission to use an additional radio call sign 22 radio amateurs and 2 clubs renewed the existing radio call signs and 9 radio amateurs obtained additional permissions to use new radio call signs, shorter than the previous ones. Starting from 22 September, 2010 the Order No. 1V-909 of the Director of the Communications Regulatory Authority of the Republic of Lithuania On the Amending of Order No. 1V-1070 of the Director of the Communications Regulatory Authority of the Republic of Lithuania of 2 December, 2005 "On the Approval of the Specification of the Procedure for Granting the Rights to Engage in Amateur Radio Activities and the Conditions for Engaging in Amateur Radio Activities entered into effect and allocated the radio call sign block LY5 for use. 12 radio amateurs have used the said possibility. The information on the radio call signs, licences, allocated to radio amateurs, and their validity period, the new legal acts, regulating or pertaining to radio amateur activities, the orders of the Director of RRT on the radio amateur licences as well as other important, but not confidential information is published and continuously updated on RRT website. The radio amateurs more and more frequently use the possibility to provide the necessary documents electronically through he website of RRT. In 2010 about 17 per cent of radio amateurs provided their requests to RRT by using the secured Internet access (in 2009 only 10 per cent used the said possibility), which creates the possibility for faster provision and simplified receipt of administrative services.
201 0 200 9 200 8 200 7 200 6 200 5 0
792 823 767 848 815 1088 771 1006 789 1110 836 1165
500 1000 1500 Number of radio amateurs Number of radio call signs Figure 39. Comparison of the number of radio amateur stations and radio call signs
Source: RRT
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2010 2009 2008 2007 2006 2005 0 16 14 15 16 22 17 30 12 18 31 40 59
20 40 60 80 Number of renewed RA Number of new RA Figure 40. The dynamics of new and renewed radio amateurs (RA)
Source: RRT
Radio spectrum monitoring

The radio spectrum monitoring stations are the place, where the technical examination and analysis of occupancy of radio frequencies, compliance of signals with the conditions of use of radio frequencies, established in licences and radio interference, as well as other functions, prescribed for RRT by the legal acts of the Republic of Lithuania, are performed. Due to a rapid growth of complexity of the signals, propagated by transmitters, in order to be able to perform the aforementioned functions, it is necessary to continuously upgrade the radio spectrum monitoring station equipment. For this purpose, in 2010 new radio spectrum monitoring equipment, allowing for much more efficient monitoring of the use of radio frequencies, was implemented at all control units of RRT (in Vilnius, Kaunas, Panevys, iauliai and Klaipda) (see Figure 41). The functioning of the equipment is based on the use of the fast Furje transformation. Compared to the previously used, the new equipment allowed for significant increase of the scanning speed of radio frequencies; now it takes 1,000 times less time to check the same frequency band, which, in turn, provides the possibility to monitor the occupancy of radio frequency spectrum in real time. The said circumstance is especially important, having in mind that, with the expansion of digital communication technologies, there emerge more and more signals, which are active for a very short timeand which are impossible to detect with a slow receiver. This is extremely important when searching for interfering signals and evaluating certain radio transmitter signal parameters.
Figure 41. The new radio spectrum control equipment

Source: RRT
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By using the new equipment, a significant amount of time is spared, since the technical radio spectrum monitoring data are stored without any intervention by the operator of the monitoring station, i. e. in a semiautomated mode. The obtained data are later processed and, referring to the results, one or another action can be taken. In order to ensure electromagnetic compatibility and quality of radio broadcasting stations, measurements of radio frequency deviations of FM radio stations are continuously performed at the radio spectrum monitoring stations. The statistics for the last five years, provided in Figure 42, show the reduction of violations of radio frequency deviation of the aforementioned stations. This is a result of continuous focused activities of RRT in the area.
100,0
80,0
60,0 91,0 40,0 89,4
86,9
90,0
92,1 Without violations Violations established
20,0 9,0 2006 10,6 2007 13,1 2008 10,0 2009 7,9 2010
0,0
Figure 42. The dynamics of radio frequency deviation norms of FM radio stations
Source: RRT
Management of other resources Management of telephone numbers

On 15 February, 2007 the Commission of the European Communities adopted Decision 2007/116/EC on reserving the national numbering range beginning with "116" for numbers for harmonised services of social value. When implementing the said Decision, the numbers from the "116" range were reserved for the harmonised services of social value in the National Numbering Plan. On 30 November, 2007 the Commission of the European Communities adopted Decision 2009/884/EC, which supplemented the list of reserved numbers beginning with "116". Referring to the said changes, on 25 March, 2010 the Director of RRT, by his Order, supplemented the National Telephone Numbering Plan by two numbers, reserved for services of social value, i. e. the helpline for victims of crime (116006) and the non-emergency medical oncall service (116117). Since 2007 RRT has assigned two numbers from the five numbers for harmonised services of social value, i. e. short telephone number 116111 (child help) to the State Child Rights Protection and Adoption Service under the Ministry of Social Security and Labour, and short telephone number 116123 (psychological help) to the Association of Telephone Psychological Help Services of Lithuania. In 2010 RRT
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announced tenders for the assignment of other three numbers, however, no applications were received (the numbers were not assigned, since there were no entities wishing to obtain them). In 2011 RRT plans to repeatedly announce the tenders for assignment of the numbers for harmonised services of social value. Table 14 presents the summary of the telephone numbers assigned and refused in 2010. Table 14. The summary of telephone numbers, assigned and refused in 2010
The purpose of numbers The right cancelled (numbers refused) in 2010 2 19 18 92,500 135,141 252 62 1,300 229,294 The right granted (numbers assigned) in 2010 1 12 5 40,291 414,031 37,220 3,804 5,118 500,482 The total number of numbers, assigned 21 53 19 1,080,262 7,552,229 78,942 8,308 20,034 8,739,869
The 10XX short numbers The 18XX short numbers The 19XXX short numbers The public fixed telephone service numbers The public mobile telephone service numbers Service numbers 7XX XXXXX Service numbers 8XX XXXXX Service numbers 9XX XXXXX Total:
Source: RRT
Management of network identifiers

During 2010 RRT assigned 5 national signaling point codes (3 in 2008 and in 2009 each), 3 international signaling point codes (4 in 2008, 3 in 2009) and 2 number portability service identifiers. In total, the following identifiers were assigned: 22 international signaling point codes; 7 public mobile telecommunication codes; 2 public data communication identifier codes; 34 number portability service identifiers; 93 national signaling point codes.
Electronic numbering system (ENUM)

The ENUM (Electronic Numbering) service provides its users the possibility to efficiently manage their electronic communication data, choose the cheapest and most convenient way to communicate with other users and not lose communication with their friends and colleagues in case their communication data are changed. In Lithuania the ENUM system was implemented in two phases. In 2007 RRT implemented the continued electronic numbering system, i. e. RRT technically and legally administered and provided the ENUM service on non-commercial basis. During the second phase, when in 2009 RRT announced the public tender for selection of the administrator of the ENUM system, Mano Numeris UAB was selected the administrator. On 16 March, 2010RRT and Mano Numeris UAB concluded the agreement for administering the ENUM, according to
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which Mano Numeris UAB shall provide the administering service from 16 April, 2010 to 15 April, 2020. The administrator of the ENUM system shall implement the ENUM system at its own cost and ensure the functioning of the technical country code 0.7.3.e164.arpa, coordinate the activities of the system and control the providers of the ENUM system in a centralized way. Mano Numeris UAB undertook to provide the ENUM services to the presently registered users of the ENUM service free of charge till 31 March, 2011 and register the new users of the ENUM services free of charge, till the provider of the ENUM services commences its activities, but not later than before 31 March, 2011. At present the ENUM system operates in 10 states, including Lithuania. ENUM implementation is going to create market niches for new services, their packets, new types of business and encourage innovation, ensure the conditions for further convergence of electronic communications, since there will be a possibility to receive electronic services independently of the development of the technology used. As of 31 December, 2010, 683 users were registered in the ENUM system.
Internet addresses (permissions regarding the use of the name of Lithuania in the names of the .lt Internet domain)
RRT, in observance of the Rules for the Use of the Name of Lithuania in the Internet Domain Names, approved by Resolution No. 1272 of the Government of the Republic of Lithuania of 7 October, 2009, issues permissions regarding the use of the name of Lithuania before the top-level domain .lt. RRT has ensured the conditions for overseeing the use of the name of Lithuania in the names of the Internet domains, which, in turn, ensures that the name of Lithuania is used in the appropriate manner and encourages a proper representation of Lithuania on the Internet. The name of Lithuania is the official long or short name of the state of Lithuania, i. e. "the Republic of Lithuania" or "Lithuania" in all the official languages of the EU Member States and in all the grammatical forms of the said languages (for instance, manolietuva.lt, lietuvosrespublika.lt). Permissions are issued for an indefinite period of time and the procedure of issuance itself is not complicated. The applicant must apply to RRT, providing the application form which, apart from other data, must contain the arguments basing the wish to use the name of Lithuania in the Internet domain name. In case the application complies with all the requirements, RRT issues the permission within the time period of 5 business days. The register of the permissions, issued during the time period of 20092010 is available at the website of RRT . In 2010 RRT issued 36 permissions, granting the right to the persons, specified in the record, to use the name of Lithuania in the second level domain name before the top-level domain ".lt" (6 permissions in 2009).
21
21 The Communications Regulatory Authority of the Republic of Lithuania. The register of licences to use the name of Lithuania in the second level domain names [last viewed 18 February, 2011]. The Internet access at: http://www.rrt.lt/lt/verslui/istekliai/domenai/lietuvosvardo-registras.html
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Activities of RRT aimed at ensuring free movement and provision of equipment to the market of the EU
In 2010 tests of electromagnetic compatibility of 151 equipment units of 126 types were performed following the requirements for electromagnetic compatibility as provided in the EU directives 2004/108/EC, 1999/5/EC and 93/42/EEC. 35 per cent of the said equipment were the units, taken for examination from the market, and the EMC tests of the remaining equipment were performed according to agreements with the Lithuanian, Latvian and German manufacturers of electric and electronic
equipment prior to provision of the equipment to the market in order to identify its compliance with the obligatory EU electromagnetic compatibility requirements. The tests were performed in cooperation with the following notified authorities - the Certification Center Sertika and the Certification Center of Electrotechnical Products EGSC, the National Communications Authority of Hungary NHH and Estonian Technical Surveillance Authority TJA. The photograph shows the performance of the electromagnetic compatibility tests of a laptop at the echo-free screened 40 GHz chamber of RRT. The following equipment was tested in 2010: conformity of 86 equipment units of 77 types to the essential electromagnetic compatibility requirements according to the harmonised standards, provided by Directive 2004/108/EC; conformity of 48 radiocommunication equipment of 32 types to the essential electromagnetic compatibility requirements according to the harmonised standards, provided by Directive 1999/5/EC; conformity of 14 equipment units to the essential electromagnetic compatibility requirements according to the harmonised standards, provided by Directive 93/42/EEC concerning medical devices; conformity of 3 new automobiles assembled in Lithuania to the essential electromagnetic compatibility requirements according to the motor vehicle directives and the UNECE technical regulations.
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2% 11% 26% RTTE EMS MED pr 61% TP
Figure 43. Distribution of the equipment, tested by RRT in 2010 against groups
Source: RRT
In 2010 the electromagnetic compatibility tests of the following groups of equipment were performed: RTTE-radiocommunication equipment (32 types of equipment tested); EMC-electric and electronic equipment (77 types of equipment tested); MedPr-medical equipment (14 types of equipment tested); TPvehicles (3 vehicles tested). In order to ensure efficient use of the radio frequency spectrum, the measurements of the electromagnetic interference radiation are performed within the 30 MHz40 GHz frequency band. In 2010 the Equipment and Devices EMC Control Division performed 676 electromagnetic compatibility tests, including 368 tests of electromagnetic interference radiation (the interference, propagated over wire to the power supply network, the interference, radiated by the equipment case, collateral radiation, etc.) and 308 tests of interference resistance (electrostatic discharge resistance, radio frequency field resistance, resistance to impulse interference inside the power supply network, magnetic field resistance, voltage interruption and voltage drop resistance, etc.).
2010
368
308
2009
339
268
Interference radiation tests Interference resistance tests
2008
542
463
200
400
600
800
1000
1200
Figure 44. The change of the number of electromagnetic compatibility tests performed by RRT in 2008-2010
Source: RRT
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Figure 45. The change of the number of types of electric and electronic equipment, tested by RRT during the time period of 10 years, i. e. in 20002010 Since 1999, when the Lithuanian National Accreditation Bureau granted the Accreditation Certificate No. LA.01.026, RRT has been continuously expanding its area of accreditation for testing electromagnetic compatibility of equipment and devices (see Figure 46). In the area of technical verification of vehicles, RRT cooperates with the State Road Transport Inspectorate under the Ministry of Transport and Communications of the Republic of Lithuania. RRT has been granted the permission to perform electromagnetic compatibility tests of vehicles and their composite parts. The area of accreditation of the Equipment and Devices EMC Control Division of RRT is the broadest among all the conformity assessment authorities of Lithuania it consists of 174 Lithuanian, regional and international standards, establishing the electromagnetic compatibility requirements for radiocommunication equipment and telecommunications terminal equipment, information technology equipment, household appliances, electric tools and similar devices, radio and television sets and similar equipment, industrial, scientific and medical radio frequency equipment, vehicles and their electric and electronic sub-units. Series2; 2008; 2009; 2010; Series2; Series2; Series2; 2006; Series2; 2005;Series2; 2007; 174 164 174 Series2; Series2; 2003; 2004; 136 142 142 123 121 Series2; 2001; 2002; Series2; 70 64 Series2; 2000; 38
Figure 46. The development of the area of accreditation of the Equipment and Devices EMC Control Division during the time period of ten years (the number of standards, included into the area of accreditation)
Source: RRT
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In addition, at the accredited laboratory of another structural unit of RRT, i. e. the Infrastructure Surveillance Division, manufacturers of radiocommunication equipment and telecommunications terminal equipment can verify whether their equipment satisfies the requirements of the harmonised Lithuanian standards relating to the efficient use of radio frequency spectrum, as stated in the Regulations. Modern calibrated state-of-the-art measurement equipment of the same technical level as the equipment, used at testing laboratories of the EU Member States, is used for performing the tests of radiocommunication equipment and telecommunications terminal equipment.
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INTEGRATION INTO THE DECISION MAKING SYSTEM IN THE EU AND INTERNATIONAL REGULATORY SPACE
A representative of Lithuania was elected a member of the Radio Regulations Board of the ITU (RRB) for a second term In 2010 three representatives of RRT acted as chairpersons and two as deputy chairpersons in different international working groups and committees The Body of European Regulators for Electronic Communications (BEREC) commenced its activities and the European Regulators Group for Postal Services (EGP) was launched. The said two authorities are going to encourage the development of the common market
Activities in EU institutions
After the adoption of the updated EU electronic communications regulatory package, i. e. the Better Regulation Directive and Citizens Rights Directive, as well as the Regulation, establishing the Body of European Regulators for Electronic Communications (BEREC) at the end of 2009, the year of 2010 could be called a relatively quiet year. The results of activities in the EU institutions are not completely obvious and perceptible, since the fundamentals of the new regulatory trends and initiatives were still in the phase of development and are going to acquire a tangible shape in the future. However, the issues, discussed in the working groups of the EU Council and the committees of the Commission were no less important and no less attention was dedicated to their resolution. 2010 marked the completion of a certain EU strategic planning period and commencement of a new one, therefore the updated future goals, common to all the Member States, were presented both to specialists and the society. It is obvious that the changes in the area of information and communication technologies are especially rapid, therefore the taregts, raised in 2005 or 2006, are no longer able to satisfy the growing needs of today. Thus, in 2010 such important documents, expressing the future EU objectives and tasks, as Digital Agenda for Europe, Radio Spectrum Policy Programme or European Broadband Strategy were presented. In 2010 the discussions regarding the continuity and scope of activities of the European Network and Information Security Agency, which has a great importance to stable functioning of the sector, were held. The EU Commission dedicated a lot of attention to the supervision of implementation of the existing EU electronic communications regulatory package and the provisions of the EU directives regarding the independence of the national regulatory institution and provision of sufficient measures to ensure regulation, which might be implemented in the Member States not in the appropriate manner. For the purpose of implementation of the objectives and tasks, common to the entire EU, foreseen in the aforementioned strategic documents, RRT, as in the previous years, by using its expertise, aimed at maintaining active participation of Lithuania in the EU decision making process with regard to all the issues, pertaining to electronic communications and postal services. RRT provided its opinion and consultations in the EU committees and to the state institutions responsible for representation of the position of the Republic of Lithuania in the Council working groups, the Permanent Representatives Committee and the EU Council as regards the next generation networks, the scope of universal services, roaming, use of the .eu domain, practical application and broader use of information and communication technologies in more remote
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territories, the GSM Directive, efficient use of power, security of networks and information, scientific research in the area of ICT, the European space policy, digital divide, e-commerce, advanced transportation systems, the future Internet, provision of harmonised social services, free trade agreements between the EU and third countries and many other issues. As representatives of RRT participated in the meetings of the Radio Spectrum Committee of the Commission (RSC), the draft decisions regarding the harmonised conditions for use of the radio spectrum, intended for provision of mobile communication services on board vessels (MCV services), in the European Union, the harmonised technical conditions of use in the 790 862 MHz frequency band for terrestrial systems, capable of providing electronic communications services in the European Union and the harmonised use of radio spectrum in short range equipment were prepared. During the meetings of the Radio Spectrum Policy Group (RSPG) the issues, pertaining to harmonisation of radiocommunication management in the EU Member States, are discussed. RSPG prepares the conclusions regarding the relevant issues relating to management and use of radio frequencies which, prior to their forwarding to the Commission, are broadly discussed with all the users of radio frequencies. RSPG is the place, where the representatives of the Member States and the Commission can discuss any issues, pertaining to the regulation of radio spectrum with the representatives of the radiocommunication market of the EU. In 2010 much attention was devoted to the draft of the proposal by the Commission to the European Parliament and the Council, establishing the first radio spectrum policy programme. According to Article 6 of the said draft, the Member States are will be obliged to, before 1 January, 2013, make available the 790862 MHz (800 MHz) radio frequency band for provision of electronic radiocommunication services. The said deadline is foreseen to be postponed until 2015 for the Member States, who are not able to complete the said task in due time. In Lithuania, as in other Eastern EU Member States, the 800 MHz radio frequency band is planned to be used depending on the plans of the Russian Federation and Byelorussia since, according to Paragraph 5.312 of the ITU Radio Regulations, in certain states (the Russian Federation and Byelorussia are of importance to us) the band is used for aeronautics radio navigation system (ARNS) and strictly protected from any interference, which may be brought by other services. Lithuania took active participation in and provided suggestions for the opinion of the RSPG regarding the Radio Spectrum Policy Programme. As a result of a suggestion, expressed by Lithuania, supported by the majority of Member States, the opinion of the RSPG included a compromising statement that the deadline, established by the Commission, may be postponed in the Member States, which may face coordination difficulties with the non-EU Member States until such difficulties are resolved. Such wording was acceptable to all the members of the RSPG working group and to most representatives of the EU Member States; it is a starting point for further discussions regarding the deadline for opening of the 800 MHz radio frequency band. During the meetings of the Telecommunications Conformity Assessment and Market Surveillance Committee (TCAM), one of the most important issues was the amending of the EU Directive 1999/5/EC (R&TTE Directive). During the meetings the draft of the new R&TTE Directive was prepared, aimed at harmonisation of the conditions and essential requirements for the free movement of radiocommunication equipment and telecommunications terminal equipment, provision of the equipment to the market, the use and connection of the equipment into telecommunications networks with the EU New Legislation Framework (Decision No. 768/2008/EC of the European Parliament and of the Council) and Regulation (EC) No. 756/2008 of the European Parliament and of the Council), which established the general requirements for
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provision of products to the EU market, surveillance of the market and conformity evaluation. The representative of the Republic of Lithuania provided suggestions with regard to improvement of the project on many occasions, for instance, regarding the procedure of notification of specification of interfaces to the Commission, application of the equipment conformity assessment modules, including TV sets, into the scope of application of the R&TTE Directive, software conformity assessment procedure, etc.. It should be noted that the draft of the new R&TTE Directive was in essence prepared by TCAM; the Commission is currently preparing to present it to the European Parliament and the Council of the EU for discussions. It is expected that the new R&TTE Directive will enter into effect starting from 2012. In 2010 RRT also participated in the meetings of the Postal Directive Committee in Brussels, where the founding of the European Regulators Group for Post (ERGP), the issues of delivery of international postal items, e-commerce and the regulation of international postal items, applied in the EU, were discussed. Apart from the aforementioned Better Regulation and Citizens Rights Directives, in 2010 RRT was also responsible for the implementation of the following: Commission Recommendation 2010/167/EU of 19 March, 2010 on the authorisation of systems for mobile communication services on board vessels (MCV services); Commission Decision 2010/166/EU of 19 March, 2010 on harmonised conditions of use of radio spectrum for mobile communication services on board vessels (MCV services) in the European Union; Commission Decision 2010/267/EU of 6 May, 2010 on harmonised technical conditions of use in the 790862 MHz frequency band for terrestrial systems, capable of providing electronic
communications services in the European Union; Commission Decision 2010/368/EU of 30 June, 2010, amending Decision 2006/711/EC on harmonised use of radio spectrum in short range equipment; Commission Recommendation 2010/572/EU of 20 September, 2010 on regulated access to Next Generation Access (NGA) networks, and other EU legal acts.
The Body of European Regulators for Electronic Communications (BEREC) and the Independent Regulators Group (IRG)
The cooperation between the Member States national electronic communications regulatory authorities on the multipartite level is performed in the Body of European Regulators for Electronic Communications (BEREC) and the Independent Regulators Group (IRG). On 28 January, 2010 representatives of 27 Member States telecommunications regulatory authorities met for the first time in Brussels as the members of the new Body of European Regulators for Electronic Communications (BEREC). BEREC was founded by Regulation No. 1211/2009 of the European Parliament and of the Council. BEREC is made up of a Board, composed of the heads of 27 national regulatory authorities and the Office, providing all the necessary expert and administrative assistance, necessary for BEREC operations. The Commission and the heads of national regulatory authorities of the Member States of the European Economic Area (EEA) (Switzerland, Norway, Iceland and Liechtenstein) and the EU candidate Member States (Turkey, Croatia and the former Yugoslavian Republic Macedonia) participate in the BEREC Board as observers. BEREC replaced the European Regulators Group, founded by a Commission Decision, adopted in 2002.
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The aim of BEREC is to encourage cooperation and coordination between national regulatory authorities and the Commission, in order to ensure the consistent application of the EU regulatory framework for electronic communications networks and services in all the Member States. BEREC is assisted by the Office, providing all the necessary expert and administrative assistance necessary for BEREC operations. The activities of BEREC are important since the regulatory authorities jointly resolve the issues of practical implementation of the EU directives, prepare and disseminate examples of the best regulatory practice as well as common views, methodologies and guidelines in the area of implementation of the EU regulatory framework, discuss the legal acts, adopted by the Commission, provide opinions regarding the Commission decisions, draft recommendations, share experience in the area of encouraging competition on the market, protection of consumers interests and other areas. In 2010 BEREC adopted the Common Statement on Next Generation Networks Future Charging Mechanisms / Long Term Termination Issues. The said document presents the conclusion that in the long term, i. e. upon convergence of networks into NGN-IP networks, providing multimedia services, the Bill&Keep method, applied to wholesale termination service, is going to be more viable than the presently applied Calling Party Network Pays (CPNP) method. Bill&Keep is the wholesale network interconnection services pricing method, where termination of calls in the other network is free of charge. In addition, the BEREC opinion regarding the future of universal services, comparative analysis of mobile termination tariffs, the position regarding the draft Commission Recommendation on the next generation networks project and other documents, discussing electronic communications regulatory issues, were adopted. In addition, the following documents on the issues of regulation of electronic communications were discussed: the overview of regulation of wholesale Next Generation Access (NGA) products, discussing the issues of installation of next generation networks at home, regulatory practice applied to wholesale access services on individual levels of the investment ladder, evolution of the networks and transition to next generation access networks; reports on implementation of the EU Roaming Regulation; the overview of the issue of including the wholesale self-provided services, into the market definition (wholesale broadband access market); methodology of the broadband price comparison and other issues.
European Regulators Group for Post (ERGP)

By Commission Decision adopted on 10 August, 2010, the European Regulators Group for Post (ERGP) was founded with the aim of shaping the best practice of regulation of postal market in Europe and exchanging such practice. ERGP consists of heads of national post regulatory authorities of 27 EU Member States. During the meeting of ERGP Contact Network Group the areas of activities and responsibility of the Contact Network Group and other working groups as well as other rules and procedures, relating to the functioning of ERGP, were defined. The following five main directions of activities are foreseen: Cost Accounting and Tariff Regulation Group is going to prepare the ERGP position regarding the common costs distribution methodology. One of the objectives is to limit the potential negative influence on the competition on the market by incumbent operators. Access Regulation Group is going to prepare the ERGP position regarding non-discriminating access to the postal network.
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International Postal Items andFinal Settlements Group is going to prepare the ERGP position regarding the pricing of international postal items. One of the objectives is to identify the reasons for the significant difference between the prices of domestic and international postal items within the EU. The USO (Universal Services) Net Cost / VAT Exemptions Group is going to evaluate the effect of the VAT exemptions on the USO net cost. Market Development Surveillance Group is going to prepare ERGP reports and statements on the quality of services and consumers satisfaction as well as on the system of indicators and preparation of a methodology, which would provide the possibility to evaluate the effect of regulation on the development of the market. The Commission has been provided the information on the participation of representatives of RRT in ERGP working groups. For the purpose of shaping the best regulatory practice the ERGP is given an important role in developing the common postal market and ensuring the best quality and consumer oriented postal services to the EU citizens.
Bilateral cooperation with the Commission and other national regulatory authorities
The annual meeting of representatives of Baltic States national regulatory institutions was held in Sigulda, Latvia on 23 24 September, 2010. Representatives of RRT, Estonian Competition Authority and Public Utilities Commission of Latvia, who participated in the meeting, shared information on the changes in the communications market, discussed market development trends and peculiarities of regulation. The representatives of RRT made the following presentations: Influence of Liberalization on the Postal Sector and Preservation of the Universal Postal Services and Overview of the Postal Market. Representatives of Latvian and Estonian institutions shared their experience regarding the activities of multisector regulatory institutions (in Latvia since 2001, in Estonia since 2008), analyzed the advantages and disadvantages of such regulation and discussed the future trends of institutional reforms. Representatives of the regulatory institutions also discussed the issues of transposition of the Third Postal Directive into the national legislation, ensuring the provision of universal postal services and the influence of liberalization of the market on the postal sector. During the discussions it was stated that the market is quite dynamic, the consumers habits and technologies are constantly changing, therefore the obligation to provide universal postal services must be flexible and continuously reviewed in order to correspond to the technological progress, the economic and social environment and the changing needs of the users. Most discussions were brought up by the following question how to ensure financial stability of universal postal services in a completely competitive environment and resolve the practical issues, coming up when calculating and evaluating the loss of provision of universal postal services. When implementing the Postal Directive it is necessary to abolish the reserved area. However, it is necessary to create certain alternative ways of financing the loss-making universal postal services. The states themselves can flexibly choose the acceptable model of financing public procurement of services, support by the state or contributions into the compensation fund, paid by the enterprises of the postal sector. The participants of the meeting discussed the existing situation on the market of national networks interconnection services, the issues, planned to be resolved in the nearest future, the plans as regards the
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implementation of the Commission Recommendation of 7 May, 2009 on the Regulatory Treatment of Fixed and Mobile Termination Rates in the EU and the most relevant issues, which will have to be resolved when implementing the latest Recommendation on regulated access to Next Generation Access Networks (NGA), approved by the Commission on 20 September, 2010. On 1719 February, 2010, RRT was visited by representatives of the Georgian National Communications Commission. That was already their second visit, aimed at meeting the managers and specialists of RRT as well as providers of electronic communications services. The representatives of the Georgian regulatory authority were interested in the situation on the electronic communications market, the issues of regulation and implementation of number portability, regulation of tariffs of call termination on public mobile telephone networks, competition-related problems and the ways for their resolution. In addition, the visitors were interested in the radio frequency management issues, relating to the distribution of the GSM frequency band. On 16 April, 2010 RRT was visited by a delegation of the Post and Telecommunications Regulatory Authority of the Democratic Republic of Congo (ARPTC). The representatives of ARPTC introduced Congo as a developing democratic republic and emphasized the broad possibilities for the development of telecommunications in their country (for instance, mobile penetration in Congo still reaches only 15 per cent) and expressed the wish to get a deeper understanding of Lithuanias experience in regulation of the electronic communications sector and ensuring a more competitive service provision environment and a higher quality of services and prices, acceptable to consumers. In 2010 RRT was also visited by a delegation of the Telecommunications Regulatory Authority of the Republic of Cameroon. The visitors took interest in the number portability system, implemented in Lithuania, its benefits for consumers, procedures and other relevant issues. In its answers RRT emphasized that the number portability service helps to strengthen the competition on the market, encourages service providers to draw more attention to both improving the quality of communication and introducing new services or more flexible payment plans. Since 2004 more than 504,035,000 numbers have been ported in Lithuania, i. e. approximately 8.8 per cent of all the consumers used the service. On 15 July, 2010 RRT met the delegation from the Republic of Korea, consisting of representatives of Korean Ministry of Foreign Affairs, Association of Information Technology (IT) Services , National Information Society Agency, International Trade Association and the IT business. The visitors took interest in the Lithuanian electronic communications sector, the regulatory principles, experience of implementation of technologies in Lithuania, the competitive environment and the issues, relevant as regards the transition to digital television. The institutional framework of regulation of the areas related to the Lithuanian electronic communications sector was more extensively discussed. The representative of the Korean International Trade Association presented the electronic business programme, used by the members of the association and the foreign partners in the private business and public sectors, which makes it easier to exchange information and reduces the operational costs. The possibility of further exchange of the relevant information, relating to regulation of electronic communications in the future, was also discussed during the meeting. On 13 October, 2010, during the annual visit of representatives of the Directorate General for Information Society and Media of the Commission, RRT presented the relevant issues of development of Lithuanias electronic communications sector and the future prospects as well as the state of implementation of the EU electronic communications sector regulatory framework. During the meeting, whose results will be reflected in the Progress Report on the Single European Electronic Communications Market, annually published by
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the Commission, interest was taken in the issues related to the changes on the electronic communications market, the legal base, regulation of radio frequencies and numbers, network and information security and protection of consumer rights. Traditionally, attention was turned to the market analyses performed by RRT, the influence of the previously implemented regulatory measures on the changes of the main market indicators and the resulting benefits to the consumers, the planned transition to digital broadcasting and radio spectrum distribution issues. In addition, the representatives of the Commission were informed on Lithuanias progress regarding the transposition of the main EU electronic communications regulation documents, amended at the end of 2009, into the Lithuanian national legislation, the issues, pertaining to network neutrality, the possibilities of common use of electronic communication infrastructure, use of the common social numbers 116XXX, harmonised on the EU level and other issues, relevant to Lithuania and directly related to the development of the Lithuanian electronic communications market were discussed.
The activities in the European Conference of Postal and Telecommunications Administrations (CEPT)
On European level, the planning of harmonised radio spectrum usage and different other issues,
pertaining to radio spectrum management and regulation of post and telecommunications, are addressed at the European Conference of Postal and Telecommunications Administrations (CEPT), to be specific, by the activities of CEPT committees, i. e. Electronic Communications Committee (ECC), the European Committee for Postal Regulation (CERP) and the Committee for ITU Policy (Com ITU) as well as the working groups under the said committees. In 2010 CEPT covered the telecommunications administrations of 48 European states, i. e. almost all European states are members of the organization. In 2010 representatives of RRT were deputy chairs in the Com ITU and the Regulatory Affairs Working Group (WG RA). The Com ITU prepared Europes positions for the World Telecommunication Development Conference and the Plenipotentiary Conference of the International Telecommunication Union (ITU). It is possible to reach prominent results at global conferences in case of availability of the common position of the European region, rather than by the actions by individual countries separately. For the said purpose 15 common European proposals were developed for the Plenipotentiary Conference on the issues of electronic communications, resolution of climate change problem by using information and communication technologies, more efficient activities of the ITU, radiocommunications, confidence in information and communication technologies and other issues. The majority of the common European proposals were, fully or in part, accepted at the Plenipotentiary Conference. The brief, elaborated by a representative of RRT, the vice-chair of the Committee for ITU Policy, summarizing the positions of Europes telecommunications administrations on the main issues of the Plenipotentiary Conference, referred to by Europes representatives during the Conference, attained a favourable response. RRT took active participation in the CEPT Frequency Management Working Group (WG FM) in planning the long-term use of radio frequencies in European states, i. e. in preparing the European table of frequency use and draft decisions on the conditions for use of certain radio frequency bands which later serve as a basis for the national conditions as well as in developing the recommended methods for coordination of frequency allocations. During the meetings of the working group in 2010, the possibilities of selection of the new 2x10 MHz radio frequency bands for public protection disaster relief (PPDR) below 1 GHz, further use of the 26 GHz radio frequency band in short range radars (SRR) instead of transition to the 79 GHz radio frequency band, as was foreseen
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in the corresponding decision by the ECC, digitalization of transmission of radio programmes and many other issues, relating to harmonisation of use of radio frequencies in the European states, attained most discussions. The proposal regarding the harmonisation of the 2300 2400 MHz radio frequency band for mobile wireless technologies on the CEPT level, discussed by WGFM, attained significant interest and active support from Lithuania. Although the idea was not supported by the largest European states, the supporting administrations were provided the possibility to implement the mobile wireless technologies in the 2300 2400 MHz radio frequency band on the national level. As in 2009, in the framework of CERT working groups and committees, the preliminary preparation for another highly important international event in the area of telecommunications, i. e. the World Radiocommunication Conference of the ITU, which is to be held in the beginning of 2012 (WRC-12), was performed in 2010. The WRC makes decisions, relating to the management of radiocommunications, establishes the main directions and guidelines of development of radiocommunications, adopts the recommendations, allowing for a more efficient use of the radio spectrum and the decisions regarding amending and supplementing the articles of the Radio Regulations, published by the ITU, the provisions of which must be observed by all the ITU member states, including Lithuania. The WRC usually tackles upon all the terrestrial and satellite radiocommunication services: mobile telecommunications, air navigation and communication systems, satellite services, including their use for meteorological needs, sea navigation, digital broadcasting, future technologies, etc. The preparatory works in the CEPT are especially important due to the possibility to provide coordinated proposals of the region with regard to the allocation of new radio frequency bands for the fixed, satellite, mobile and broadcasting services, changing the procedures of satellite services, amending articles and resolutions of the Radio Regulations for the multilateral international negotiations, which will be held during the WRC. The representatives of the RRT, when participating in preparation for the WRC-12 in working groups together with other EU Member States, contributed to the activities by preparing the documents on all the issues on the agenda of the WRC-12. When discussing the issues of compatibility of the mobile services with other radiocommunication services, operated in the 790862 MHz radio frequency band, RRT took active participation by providing the suggestions regarding the package of documents, prepared by a group of the EU Member States for the Conference Preparatory Meeting (CPM), proposing the conditions for protection and coordination of mobile radiocommunication stations with regard to the ARNS. Until the autumn of 2010 only the so called very strict field strength and coordination distance values, proposed by the Russian Federation, were discussed almost in all the working groups. It is likely that the compromise proposals, prepared by the EU Member States, will provide the possibilities to search for a solution regarding the compatibility of mobile radio stations and the ARNS, acceptable to all the parties during the WRC-12.
European Committee for Postal Regulation (CERP)

24 26 November, 2010, the 43
rd
Plenary Meeting of the European Committee for Postal Regulation
(CERP) of the European Conference of Postal and Telecommunications Administrations (CEPT) was held in Istanbul, Turkey, which raised the issue of changing the structure of CERP. It was decided to create two CERP working groups, which would discuss the issues of policies and the Universal Postal Union. The representatives of the Postal Department of RRT are also going to participate in the said working groups.
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When developing the international cooperation, the following contact committees remain important within the CERP structure: CERP the European Commission, CERP PostEurop and CERP European Express Association. CERP strives for concluding the memorandum with the UPU and found the CERP UPU contact committee. Representatives of RRT also participated in the meeting of the working group CERP PT Surveillance and Market Data, held in Stockholm, where the results of the CERP report on the quality of the services, provided in the EU Member States, preparation of the new studies on development of postal services by the European Commission, the initiatives, taken by the Universal Postal Union regarding the electronic postal domain @.post and the relations with the activities of CEN were discussed.
The Harmonised Calculation Method (HCM) Agreement

The Harmonised Calculation Method (HCM)
Agreement unites administrations of 17 European countries (see the map) and establishes the methods and criteria for international coordination of the fixed and mobile service stations within the frequency band from 27.9 MHz to 43.5 GHz. The Agreement was concluded in 2005 in Vilnius (the Vienna Agreement was in effect until 2005). The aim of the Agreement is to coordinate the frequencies from 27.9 to 43.5 GHz for the purpose of avoiding mutual harmful interference to fixed and mobile service stations and optimizing the use of radio frequencies between the neighbouring states. During the Plenary Meeting of the HCM Agreement, held in 2010 in Zagreb, the new edition of the Agreement was undersigned, which contains major changes as regards the coordination of both fixed and mobile service stations. During the meeting a representative of RRT was elected the Head of the HCM Agreement Programme Group. RRT has been developing the software, intended for coordinating fixed service stations in observance of the HCM Agreement, therefore, upon undersigning the new edition of the Agreement, the corresponding changes were performed within the software so that it completely corresponded to the new edition. Upon receiving consent from other members of the Agreement, the software is going to become the official software of the HSM Agreement and obligatory to all the members of the Agreement starting from 1 March, 2011, when the new edition of the Agreement enters into effect.
International Telecommunication Union (ITU)

In 2010 one of the most important events, held by the International Telecommunication Union (ITU), was the Plenipotentiary Conference (PP-10), which attained participation by delegates from all around the world. The ITU Secretary-General and his deputy, three bureau directors, members of the Radio Regulations Board were elected and the Council was formed during the Plenipotentiary Conference. Important strategic decisions were made with regard to the future of the ITU and telecommunications, the amendments to the basic ITU texts, i. e. the Constitution and the Convention and about 60 new and corrected resolutions, which
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are going to be observed in the ITU activities, were adopted. The most important resolutions established the strategic plan and budget of the ITU, foresaw the convocation of the World Telecommunication Conference in 2012 for the purpose of reviewing the International Telecommunication Regulations, the role of ITU in implementation of the results of the World Summit on the Information Society (WSIS), cooperation on the Internet management issues, encouraging of development of telecommunications and information and communications technologies, use of the ICT in resolution of the climate change issues, provision of access to the ICT to persons with disability, etc.. The decisions, made in the context of rapidly developing telecommunications must help to implement the vision of the ITU, i. e. to connect the world in order for people and their communities not to be excluded from the developing information society. The decisions are made taking into consideration the needs of the members of the ITU, they reflect the essential telecommunications developments, influencing the everyday life of every citizen. The Plenipotentiary Conference (PP-10) is a significant event for Lithuania, since during the elections, held at the Conference on 11 October, 2010, a Lithuanian representative, Director of the Radiocommunication Department of RRT Dr. Mindaugas ilinskas, was elected a member of the Radio Regulations Board of the International Telecommunication Union (RRB) for a second term. It should be noted that the Radio Regulations Board consists of 12 elected members, each having a high professional qualification in the area of radiocommunications and a lot or practical expertise in the area of radio frequency management. 21 worlds countries, including Lithuania, had their candidates into the Radio Regulations Board. The election of Lithuanias representative into the RRB for a second term shows the high appreciation of Lithuanias expert competence on the international level. Dr. Mindaugas ilinskas qualification and authority in the area of radiocommunication management resulted in his election to the position of the Chairman of the Radio Regulations Board of the ITU by the RRB members; he held the said title in 2010. Under his chairmanship, decisions were made regarding the issues of harmful interference to Eutelsat and Irans satellites, which attained significant attention, as well as decisions with regard to the Italian administration pertaining to the harmful interference to Slovenian radio and television stations. Such issues are especially relevant to small countries, which incur the effects of harmful interference to their broadcasting stations from the larger neighbouring countries. In addition, decisions were made as regards the abolition of satellite networks in the international register of radio frequencies and the permission to restore the networks, deleted from the register by the ITU Radio Bureau, and other regulatory decisions. During his chairmanship at the RRB, Dr. M. ilinskas attempted for radio spectrum resources to be available to all the states and be used in the most efficient manner possible and the ITU rules and obligations to be equally observed by all the ITU Member States. Representatives of RRT closely cooperated with the structural units of the Radiocommunication Sector of the ITU (ITU-R), responsible for the management of radio frequency spectrum and orbital resources on the global level in order to ensure rational, equal, efficient and economical use of the said limited resources. Since it is important to Lithuania as to other countries that the especially demanded 790-862 MHz frequency band is efficiently used when implementing the new radiocommunication technologies, RRT participated in the working group which dealt with the issue (JTG-5-6). The working group prepared the draft of Section 3 of the CPM report as regards Item 1.17 of the agenda of WRC-12. Referring to the performed research and the drawn conclusions, the criteria for protection of the main radiocommunication services of broadcasting, fixed and aeronautical radio navigation from the mobile service were established. The said criteria depend on whether the country has undersigned the GE06 Agreement. The regulatory and
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procedural solutions for application of the criteria were established. Compatibility and common use of the mobile and aeronautical radionavigation services attained major discussions, since there are still no electromagnetic compatibility requirements between the said two radiocommunication services. First, it was suggested to introduce the criterion of predicted distance for coordination of mobile service stations. However, it significantly limits the efficient use of the 790862 MHz frequency band in the countries which have borders with the Russian Federation and Byelorussia; therefore Lithuania undersigned the multipartite document (with Sweden, Denmark, Germany and Latvia), which suggests using the criterion of electromagnetic field strength for the coordination between aeronautical radionavigation and mobile services instead of predicted distance. RRT continued cooperating with the Space Services Department of the Radio Bureau (SSD), which is responsible for coordination of space systems, management of planned orbital-frequency resources and provision of consultations to the ITU member states on the said issues. After the SSD establishes that a newly coordinated satellite network may bring interference to Lithuanias orbital allocations or terrestrial services, it forwards the corresponding notification to RRT with a request to express its consent or refusal to coordinate such a network. For the purpose of protection of Lithuanias orbital resources, RRT continuously provides its comments to the SSD on the satellite networks, coordinated by other countries, in case such networks exceed the threshold technical characteristics, established for the planned frequency bands. RRT consults with the ITU specialists by providing its proposals regarding the software tools, developed by the SSD, intended for the examination of analysis results of the coordinated satellite networks and provision of comments. SSD is periodically informed on the performed software upgrades. It is important to Lithuania that it can present its opinion and comments to a broader audience on the global level and get familiarized with the proposals, provided by countries in other regions when defending its interests in the area of radiocommunications, in case it gets no support from the regional organizations. Since implementation of space systems is complicated due to different radiocommunication systems operated in different countries and regulatory conditions of their satellite networks, aiming at provision of the latest space communication technologies in Lithuania, RRT participated in meetings of working groups for efficient use of orbital-frequency resources for the satellite fixed and satellite broadcasting systems (WP4A) and application of space radiocommunications (WP7B). RRT periodically participates in the biannual radiocommunication seminars, arranged by ITU-R, during which future radiocommunication technologies, their usage possibilities and the radio frequency and orbital resources regulatory methods, planned to be used, are overviewed. Practical exercise was arranged at the seminar, during which the participants performed the tasks, simulating different aspects of cooperation between the administration and the ITU. Representatives of the Lithuanian administration attempted to master the information on the terrestrial services, especially the broadcasting service. The technical analysis and electromagnetic compatibility of both terrestrial and satellite networks are calculated according to the recommendations and reports, adopted by the ITU, which the member states base their studies on. In 2010 Lithuania expressed its consent to the new recommendations, establishing the ways of transmission of signals of different satellite and terrestrial systems, their technical characteristics and the technical conditions for security of such systems. Since one of the functions of RRT is surveillance, monitoring and supervision of the radio spectrum, in 2010 representatives of RRT also participated in the activities of the ITU Radio spectrum monitoring working group WP C1. The objective of the group is to prepare the ITU-R recommendations and the documents,
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relating to monitoring of use of the radio spectrum. The methods of radiation measurement in certain networks, measurement of digital terrestrial television coverage zones, verification of planning criteria and other issues were discussed. RRT has recognized experts with the extensive knowledge and experience in the radiocommunications management area. in 2010 representatives of RRT were invited to share their experience in the seminars in Armenia and Kirghizstan arranged by the Telecommunication Development Sector of International Telecommunication Union (ITU-D) and the Regional Commonwealth in the Field of Communications, where they made presentations on the peculiarities of regulation of the European telecommunications market and Lithuanias experience in the implementation of the EU regulatory provisions. The presentations attained significant recognition, since the aforementioned states are interested in using radio frequencies harmonised with the EU Member States in order to avoid mutual radiocommunication interference, which is especially relevant for the Ukraine, Armenia and Georgia, as well as in minimizing any inconvenience to radiocommunication service consumers, using radiocommunication equipment both in the EU and in other states.
Internet Governance Forum (IGF)

On 14 17 September, 2010 the global Internet Governance Forum, arranged by the United Nations Secretariat, was held in Vilnius. Each year the said event attracts about 1.500 2.000 participants from all around the world. Representatives of RRT took part in the inter-institutional working group for coordination of preparation for the Internet Governance Forum, formed by the Minister of Transport and Communications, participated in the Forum and contributed to organizing the event. The Internet Governance Forum is a UN event, arranged each year on a different continent with the aim of discussing the ways of maximum utilization and use of the possibilities, provided by the Internet for peoples benefit, responding to the risk and the challenges faced on the Internet, exchanging opinions, sharing the best practice and searching for common solutions in order to ensure stability, technological and social development of the Internet. During this years Forum the main subjects, such as management of the critical Internet resources, security, privacy, cloud technologies, Internet access and diversity, reflected the rapidly changing and developing Internet, which results in new regulatory challenges. The Forum included 6 main sessions and 113 seminars on narrower specific issues and good practice, etc. covering all the subjects, relevant to the Internet community. The European Digital Agenda foresees that by 2015 the number of people, regularly using the Internet in the European Union, should increase from 60 up to 75 per cent. With the growth of Internet use and its influence on the life of both European and the worlds society, the IGF draws the attention to the issue of reliability and security of the Internet network infrastructure activities. The Internet has no boundaries therefore it is necessary to join all the countries efforts and discuss the issue more actively, perform the common studies and foresee the possible solutions. The Internet and modern technologies must serve the people and contribute to the welfare of the community, which is possible only in case of the consumers confidence in the information technologies, when the consumer feels secure in the Internet space and freely exchanges information, communicates and receives the electronic services without any fear of malicious access to his/her data and when representatives of business are certain that their webpages will not be taken over by criminals, operating from other states. Therefore Lithuania draws much attention to the Internet security and cooperation with the international community on Internet security issues.
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RRT, for the purpose of participating in the discussion regarding the aforementioned issues, presented its views and the possible options for the solution of the problems, which would correspond to the future needs, and participated in preparation of one of the Internet Governance Forum seminars, i. e. Long Term Internet Stability Priorities. The main organizer of the seminar was the European Commission. The introductory speech was made by Neelie Kroes, the Vice-President of the European Commission and the European Commissioner for Digital Agenda. The seminar was aimed at discussing the real threats to the stability of the Internet, i. e. technical threats (physical vulnerability of network, violations of the routing system, incompatibilities, which may emerge as a result of network development, etc.), the threats in the political areas and the skills development needs. Representatives of RRT presented the response to the threats of Internet stability on the national level and the analysis of the Internet infrastructure, which could be referred to when establishing, and later, supervising the security and stability of the network. Such measures could be also implemented in other states, which have not yet taken such actions. Lithuanias experience is relevant when viewing the results of the seminar the persistence of threats to the long-term stability of the Internet shows that there is still a lack of monitoring and analytical measures, which would help to overcome the challenges, raised by the rapidly developed Internet.
The Universal Postal Union (UPU)

On 22-23 August, 2010, representatives of RRT participated in the Strategic Conference, arranged by the Universal Postal Union (UPU), during which the main future objectives of the UPU were discussed, the importance of development of the global postal services network and the prospects of improvement of quality of postal services, implementation of financial services, development of the common addressing system, regulation and reformation were emphasized. During the Conference the European Address Infrastructure Project (EURADIN www.euradin.eu) was presented. The aim of the Project is to constitute a Best Practice Network in order to promote the European address harmonization regarding the definition, registration and access to the European address data. Thirty enterprises and organizations from the European countries, including Lithuania, participate in the Project. The address database will help the private business to quickly enter the market and provide their services in the appropriate manner. On 24 October 13 November, 2010 RRT representatives also participated in the Plenary Meeting of the Council of UPU Administration in Bern. During the meetings of the working groups of the Development and Cooperation and the UPU Strategy commissions of the UPU Council of Administration the postal strategic guidelines were presented. The guidelines are to be approved during the Universal Postal Congress, which will be held in 2012 in Doha. Preparation of the UPU strategy is one of the most important objectives of the working group of the UPU Strategy committee, aimed at ensuring the free and reliable exchange with international postal items and development of the postal network by providing it through innovative products and services. The strategy is prepared in consideration of the changes on the postal market, emerging as the result of the intensifying technical cooperation, therefore the development of the postal sector is going to be vital during the coming several years, which will also have influence on the future of the Lithuanian postal market. During the sessions of the Council of UPU Administration RRT also participated in the commission, resolving the issues of management of the UPU, i. e. the Union Reform, Union Acts, Universal Services and Final Settlements working groups. Ten countries, including Lithuania, presented their proposal with regard to the implementation of the electronic postal domain @.post, which will help to develop the e-services in the
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UPU Member States. The organizational structure and access scheme have been developed, the project is planned to be implemented in 20112012. In 2008, during the 24 UPU Congress, Lithuania was elected into the UPU Council of Administration for the first time. The Council of Administration consists of 41 member states, elected according to their geographic distribution. Lithuania belongs to the geographical group of the Eastern Europe and Northern Asia, which includes 25 countries. Five positions are allocated in the Council of Administration for the said group. Apart from Lithuania, the following countries from the said group were selected into the Council of Administration: the Russian Federation, Kazakhstan, Azerbaijan and the Ukraine.
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ORGANIZATION OF RRT ACTIVITIES
Management of RRT
RRT is an independent state institution, acting according to the Law on Electronic Communications and the Postal Law, other laws and its own Regulations. From the perspective of the EU legislation, regulating social relations, pertaining to electronic communications and postal activities, RRT is a national regulatory institution of the Republic of Lithuania. Since 2001 RRT has been headed by Director Tomas Barakauskas, appointed to the position of the Director by a Decree of the President of the Republic of Lithuania . In 2006 Tomas Barakauskas was appointed to the position for the second term. The Council of RRT (hereinafter referred to as the Council) is a collegial body of RRT, comprised of seven members, who are also appointed
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by the President of the
Republic of Lithuania following the submission of the Prime Minister. The Council members are representatives of public administration institutions and academic society. In 2010 the Council consisted of the following members:
Tomas Barakauskas, Director of RRT the Chairman of the Board; Eduardas Bareia; Algirdas Bloznelis; Vytautas Butrimas; Valdas Kionas; Raimundas Malaika; Nerius Sakalauskas.
The Council discusses and coordinates draft legal acts (as envisaged in the Law on Electronic Communications), coordinates the estimate of income and expenditure of the RRT budget, internal working regulations, hears the report of the Director of RRT on the activities of RRT and plans on projects of strategic activity, discusses the issues of imposition of economic sanctions on undertakings, which fail to observe the Law on Electronic Communications and provides proposals to the Director of RRT in this regard. In 2010 five sittings of the Board were held, during which the decisions were made to coordinate the draft amendment of the Specification of the Procedure of Payment of Charges for the Services Provided and Works Performed by the Communications Regulatory Authority of the Republic of Lithuania and changing the rates, the expenditure and income estimate of RRT for 2010, the amendments of the expenditure estimate of RRT for 2010 and distribution of its appropriations, the structure and regulations of structural units of RRT. The Council also amended the rules of procedure of the RRT Council and heard the report of
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THE PARLIAMENT OF THE REPUBLIC OF LITHUANIA. On the appointment of the Director of the Communications Regulatory Authority. [viewed 14 April 2009]. The Internet access at: <http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=276011&p_query=ry%F0i% F8%20reguliavimo&p_tr2=2> 23 THE PARLIAMENT OF THE REPUBLIC OF LITHUANIA. On the appointment of the Members of the Board of the Communications Regulatory Authority. [viewed 14 April 2009]. The Internet access at: <http://www3.lrs.lt/pls/inter3/dokpaieska.showdoc_l?p_id=302594&p_ query=ry%F0i%F8%20reguliavimo&p_tr2=2>
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RRT Director on the activities performed by RRT in 2009. In addition, in 2010 the Council discussed and approved the draft of the strategic activity plan of RRT for 2011 - 2013.
The RRT staff and organizational structure

On 31 December 2010 RRT had 144 employees 1 state official, 139 civil servants and 4 employees, working under employment contracts. 130 employees of RRT have higher university education, 8 of those are PhDs. Table 15 shows the changes in the number of positions of civil servants and employees, working under employment contracts in RRT from 2005 to 2010. To improve administrative capacities, relating to the implementation of the strategic objectives of the institution, deepening the special knowledge of the regulatory field and development of skills of RRT staff, in 2010 different training courses were arranged for 118 civil servants. Employees developed their qualifications at training seminars, improved the EU working languages (English or French) skills and computer literacy. Special attention was devoted to deepening professional knowledge of employees. In 2010 five special training sessions were arranged for the employees of RRT, including 2 special training courses from the "Modern Information and Communication Technologies" cycle: The Peculiarities of Functioning and Supervision of GSM and UMTS Networks and Functioning and Prospects of the LTE Network, presenting the innovations and the future trends of the ICT area; 2 special training courses, intended for strengthening the professional competences of the employees of RRT in the area of regulated market studies: Financial Analysis and Evaluation of Efficiency of Companies Activities and Application of the Statistical Analysis Methods; the training course Psychological Effect of the Internet: Potential Consequences and Possibilities of Control, intended for the specialists of RRT, dealing with safer Internet issues. RRT employees attended two remote training courses, arranged by ITU The Latest Information and Communication Technologies and New Generation Networks NGN. In addition, RRT employees actively participated in seminars on the changes of the public sector and financial accounting, which are being introduced after the commencement of implementation of the public sector and financial accounting in the Republic of Lithuania. In 2010, 5 employees completed all the modules of the introductory training programme, 83 employees participated in seminars on different subjects, improving the abilities, pertaining to implementation of the strategic targets of RRT, 2 employees participated in the training on administration of the EU structural support, 66 employees deepened their knowledge of the EU working languages, 37 employees participated in other qualification development programmes.
Table 15. The change of the number of positions of civil servants and employees, working according to employment contracts in RRT in 20052010 2005 2006 2007 2008 2009 2010 160 160 160 160/165* 165/156** 156
* According to Resolution No. 515 of 16 May 2008 (Official Gazette Valstybes Zinios, 2008, No. 64-2411) the number of positions of civil servants and employees, working under employment contracts in the Communications Regulatory Authority, was increased to 165. ** According to Resolution No. 394 of the Government of the Republic of Lithuania of 6 May 2009 "On the Approval of the Highest Permissible Number of Positions of Civil Servants and Employees, Working under Employment Contracts and Receiving Work Remuneration from the State Budget and State Funds" (Official Gazette Valstybes Zinios, 2009, No. 57-2237) the number of positions in the Communications Regulatory Authority was reduced to 156.
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RRT an open and transparent organization
In 2010 RRT publicized its activities by employing different publicity tools, arranging and participating in different meetings, seminars, conferences and social campaigns. For the purpose of informing the public on the most relevant aspects of its activities, in 2010 RRT, in active cooperation with the mass media, published 71 press releases and news items. In 2010 RRT continued the social campaign, intended for celebration of the Safer Internet Day. The main accent of the event was the dissemination of the new documentary Tinklas (The Web), in which wellknown representatives of show business, psychologists, pedagogues and representatives of state, business and international organizations shared their experience, advantages and disadvantages of the Internet and provided advice to parents on what they should draw special attention to. The authors of the idea were RRT and the Lithuanian Human Rights League, the initiators of the film were the Ministry of Education and Science, Microsoft Lietuva and the one.lt portal. The film was sponsored by TEO LT, AB and the Centre of Information Technologies in Education. The film was broadcasted via Lithuanian television channels, presented on different webpages with the possibility to download, disseminated among educational institutions as well as city and town municipalities. In addition, for the second year in a row, TEOBUS of Safer Internet Academy, which gained much popularity last year, was launched in 2010; it visited 12 cities and towns of the country. In 2010 five events were arranged in Lithuania, of which noteworthy is the meeting of the Policy Committee of the European Conference of Postal and Telecommunications Administrations of the International Telecommunication Union (ITU), held in September. During the said meeting its participants actively prepared for an important worldwide event, i. e. the Plenipotentiary Conference of the ITU. RRT arranged an open day to students of Mykolas Romeris University. The students took interest in the activities and main functions of RRT and the role of the institution within the state governance system. Future specialists of public administration were presented with the information on the main European Union and national legal acts, observed by RRT in the everyday activities. A separate subject was dedicated to RRT role in protection of rights of electronic communications consumers, i. e. discussions on how to work with consumers is organized and how RRT communicates with other institutions when performing its functions. In 2010 careful attention was turned to the development of the new RRT webpage (see chapter Increase of Consumer Awareness). As each year, RRT employees informed the society on its activities and development of Lithuania's telecommunications sector, presented speeches on the topics of ICT at various events arranged in Lithuania and abroad.
Planning and organization or RRT activities

RRT implements its mission in observance of the strategic activity plans, approved by order of the Director of RRT, establishing the main activity targets for three years, as well as tasks and tools for implementation of the targets. The strategic activity plans of RRT are prepared referring to the programme
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and priorities of the Government, the State Long-Term Development Strategy , the strategy for development of the corresponding management area, the Strategy for Assignment of Radio Frequencies for Radio and Television Programme Broadcasting , other strategic planning documents, which are implemented with participation of RRT and the functions, performed by RRT. For the purpose of implementation of strategic targets, in 2010 RRT executed a special continuing Telecommunications Management and Control Programme (code 01 81), financed from the income of RRT, received for the provided services and performed works, paid according to the tariffs, agreed upon with the Council of RRT and contributed into the state budget. The tasks and objectives of the Programme correspond to those, raised for national regulatory authorities in the legal acts of EU electronic communications regulatory area and ensure the funding principles, provided in the Directive 2002/20/EC of the European Parliament and of the Council of 7 March, 2002 on the authorisation of electronic communications networks and services (Authorisation Directive)
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and Directive 2002/21/EC of the European Parliament and of the Council of 7 March, 2002 on a common regulatory framework for electronic communications networks and services (Framework Directive) , as well as in the legal acts, adopted by the European Parliament and of the Council on 25 November, 2009, consolidating the reviewed electronic communications regulatory framework . The Programme is oriented towards a harmonious development of the countrys ICT sector for the purpose of creation of favourable conditions for the development of the ICT business and sector, competition and innovation in the area, strengthening the security of electronic communications networks and services, increasing the awareness within the society and culture in the area and drawing the societys attention to the harmful content, existing in the publicly used computer networks. Every quarter activities of RRT units are controlled by analyzing the execution of the unit activity plans. The summarized information on the performance of the activity plans is provided to the management of RRT. Each year RRT submits the annual RRT activity and financial report for the previous calendar year to the Parliament and the Government of the Republic of Lithuania and announces the report publicly. On 19 March, 2010 RRT undersigned the funding and administration agreement regarding the Project of
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Development and Implementation of the System for Management of the Activities of the Communications Regulatory Authority of the Republic of Lithuania
(hereinafter referred to as the Project). Upon performing the public procurement procedures, the contract was concluded with Tieto Lietuva UAB, which is going to provide the Project implementation services. The aim of the Project, financed by the European Social Fund, is to improve the internal administration of RRT. The Project is targeted at automation of control of strategic
"Approved by Resolution No. IX-1187 of the Parliament of the Republic of Lithuania of 12 November 2002 (Official Gazette Valstybes Zinios, 2002, No. 113-5029) 25 Approved by Resolution No. 376 of the Government of the Republic of Lithuania of 27 March 2003 (Official Gazette Valstybes Zinios, 2003, No. 32-1333), 26 (OL 2004 special edition, Chapter 13, Volume 29, page 337). 27 (OL 2004 special edition, Chapter 13, Volume 29, page 349). 28 Directive 2009/140/EC of 25 November, 2009, amending Directive 2002/21/EC on a common regulatory framework for electronic communications networks and services, Directive 2002/19/EC on access to, and interconnection of, electronic communications networks and associated facilities and Directive 2002/20/EC on authorisation of electronic communications networks and services (OL 2009 L 337, p. 37), as well as Directive 2009/136/EC of 25 November, 2009, amending Directive 2002/22/EC on universal services and users rights relating to electronic communications networks and services, 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 (OL 2009 L 337, p. 11).
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planning and performance of the RRT activities, its financial resources, the processes of provision of services and management of electronic documents and ensuring a more efficient exchange of information between the employees of RRT. The system will also provide the possibility to relate the results of individual evaluation of activities with completion of tasks, the system modules will have interfaces with the accounting, human resource management and other systems of RRT. Upon implementing the automated system of accounting for the activity results, the functions of RRT are most likely to be performed in a more efficient manner. All the system modules are going to be accessible via the data/information exchange module, which will ensure a more efficient and quicker dissemination of information among the employees and provide them the possibility to access the information, necessary for performing the activities, via different links and references. According to the Project funding and administration contract, three payment requests were presented to the Agency of the European Social Fund in 2010, the Project publicity measures were commenced to be implemented. At present the works on preparation of the technical specification of the Project are in progress, the demo version has been presented. The total value of the Project is LTL 2 188 890, including LTL 1 956 000 allocated by the European Union and LTL 232 890 by RRT. The project is financed according to Measure VP1-4.2-VRM-03-V "Development of Public Administration Subjects System" of implementation of Priority 4 "Development of Administration Abilities and Improvement of Public Administration Efficiency" of Human Resources Development Activity Programme 2007-2013. RRT plans to have the Project implemented before the beginning of 2013.
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RRT activity guidelines for 2011
RRT priorities for 2011 are as follows: Ensuring competition on the broadband communication services market by creating favourable conditions for access to the physical network infrastructure Efficient management of radio frequencies by creating the conditions for investment into the next generation wireless communication networks, development of innovative technologies and services
One of the essential objectives of RRT when implementing the provisions of the Law on Electronic Communications of the Republic of Lithuania is to ensure the conditions, necessary for efficient competition on the electronic communications markets. In order to identify the undertakings with significant power on the corresponding electronic communications markets and problems related to competition, monitor and improve the competitive situation in the electronic communications sector, RRT performs market analyses. The technological progress results in merging of electronic communications, information technologies and media (especially the audiovisual sector). With the convergence of technological platforms, there is a trend of provision of packets of information and communication services, i. e. a combination of fixed voice services, broadband access, television and mobile communication services. Therefore, in order to encourage development of the latest technologies, the improvement of the ICT regulatory environment, taking into consideration the development/progress of technologies and the ongoing convergence processes as well as transposition of the provisions of the directives of the reviewed EU electronic communications regulatory framework into the Lithuanian national electronic communications regulatory legal framework become an important area of RRT activities in 2011. At present the biggest investments in the electronic communications sector are related to the development of the Next Generation Access (NGA) networks and the convergence of public fixed and public mobile telecommunication services. Ensuring competition on the broadband communication services market by creating favourable conditions for access to the physical network infrastructure is among the most important priorities of activities of RRT in 2011. RRT also plans to improve the legal environment, favourable to development and common use of the electronic communications infrastructure. In order to create suitable conditions for the development of the Next Generation Access networks in Lithuania, in 2011 RRT, referring to the EC Recommendation 2007/879/EC of 17 December 2007 on relevant product and service markets within the sector of electronic communications, which could be subjected to the ex ante regulation according to the Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communications networks and services (the Framework Directive) (hereinafter referred to as the EC Recommendation 2007/879/EC), plans to perform the analysis of the market of wholesale (physical) network infrastructure access (including partially or fully unbundled access), provided at a fixed location and, in the middle of 2011, make the decisions, which will resolve the competition problems on the market. In 2011 RRT plans to perform analysis of the following markets: Wholesale (physical) network infrastructure access (including the partially or fully unbundled access) provided at a fixed location;
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Transit services provided over public telecommunication network at a fixed location; Origination of calls over public telecommunication network provided at a fixed location.
In 2010 the Commission adopted the Communication Europe 2020 a European Strategy for Smart, Sustainable and Inclusive Growth. The strategy raises three priorities, supplementing each other, i. e. smart growth: developing an economy, based on knowledge and innovation; sustainable growth: promoting a more resource efficient, greener and more competitive economy; inclusive growth: fostering a high-employment economy, delivering social and territorial cohesion. The European Digital Agenda is among the main seven initiatives, implemented according to the European Strategy for Smart, Sustainable and Inclusive Growth -Europe 2020. After the implementation of the European Digital Agenda, announced by the Commission, the growth of the EU economy will be greatly stimulated and the entire society will be provided the possibilities of the digital era. The aim of the Agenda is to reach that the common digital market, based by very fast Internet and interacting applications, provides sustainable social and economic growth and helps to reach the target that in 2013 everybody has the possibility to use broadband Internet and even faster Internet (the speed rate over 30 Mbps) until 2020 and 50 per cent or a greater number of European households use the Internet connection of a speed rate, higher than 100 Mbps. After the implementation of the European Digital Agenda, announced by the Commission in 2010, the growth of the EU economy will be greatly stimulated and the entire society will be provided with the possibilities of the digital era. Protection of the rights and legitimate interests of the ICT service users, including consumers, is one of the essential tasks of RRT, pertaining to the investigation of complaints of service users, supervision of provision of universal services, etc. In order to ensure the right of the service users, including consumers to receive services of an appropriate quality, RRT also performs the control of public ICT service quality. In order to encourage the development of the latest technology, the improvement of ICT regulatory environment, taking into consideration the development (progress) of technologies and the ongoing convergence processes, remains an important area of activities of RRT. In 2011 the legislation works are going to be continued, as the new EU electronic communications regulatory legal acts, intended to adapt the regulatory system to the rapid changes of the information and communication technologies, which entered into effect in the EU as of 19 December, 2009, will be transposed into the national legislation. The so-called "Better Regulation" Directive (2009/140/EC) and "Citizens' Rights" Directive (2009/136/EC), amending five presently valid directives, must be transposed into national legal acts of 27 EU Member States by 25 May, 2011. On 25 November, 2009 the European Parliament and the Council adopted the legal acts, which consolidate the reviewed electronic communications regulatory framework, i. e. Directive 2009/140/EC of 25 November, 2009, amending Directive 2002/21/EC on a common regulatory framework for electronic communications networks and services, Directive 2002/19/EC on access to and interconnection of electronic communications networks and related facilities and Directive 2002/20/EC on authorisation of electronic communications networks and services (OL 2009 L 337, p. 37), as well as Directive 2009/136/EC of 25 November, 2009, amending Directive 2002/22/EC on universal services and users rights relating to electronic communications networks and services, Directive 2002/58/EC concerning the processing of personal data and the protection of privacy in the electronic communications sector and Regulation (EC)
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No. 2006/2004 on cooperation between national authorities, responsible for the enforcement of consumer protection laws (OL 2009 L 337, p. 11). The reviewed electronic communications regulatory framework foresees more liberal provisions regarding the management of electronic communications resources, a broader interrelation between different technologies and services, new rights for electronic communications service users, provides the conditions for provision of the harmonised EU services and defines the measures for regulation of competition on the electronic communications market more clearly. The provisions of the directives of the reviewed electronic communications regulatory framework must be transposed into Lithuanian national electronic communications regulatory legal framework by 25 May, 2011. Upon entering into effect of 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 (OL 2009 L 337, p. 1), the Body of European Regulators for Electronic Communications (BEREC) was established. The task of the said institution is to ensure consistent application of regulation of electronic communications throughout the EU and to strengthen the common EU market. Upon implementation of the EU electronic communications reform, the competition on the European electronic communications markets is going to increase, therefore, the EU citizens will have a wider choice. They will be able to use a wider coverage broadband Internet services throughout Europe and their right to privacy of communication will be strictly protected. The new directives establish to pay more attention to sensitive groups of the society, the possibilities of using the number 112, provided to disabled persons, are planned to be improved and the implementation of the said provisions will require cooperation between all the institutions of Lithuania concerned. The right to change the telephone communication network operator within the time period of one business day while retaining the telephone number is envisaged for consumers, in addition a better provision of information on the provided services to subscribers and the right to obtain information from operators on data security violations is planned. Recognizing the increasing importance of security of networks and the services, provided over the networks, the directives were supplemented with the provisions on the rights and responsibilities of the service providers and national regulatory institutions in the area. The directives specify the necessary tools for ensuring the status of the national regulatory institutions more clearly and also establish additional measures for coordination of the efficient implementation of the EU decisions, for instance, systematic provision of information on the decisions of the regulator, appealed against by market players, to the Commission. In the area of regulation of electronic communications the directives foresee for the regulatory institution the possibility to use a new regulatory tool, i. e. the functional separation (separation of the electronic communications operator into the enterprise, owning the network and the enterprise, developing the business activities). This measure would be applied in exceptional cases only. The technologies, employing the radio spectrum, are developing at a very high rate and the demand for radio spectrum is continuously growing: new technologies emerge every day, allowing for the provision of innovative services in new radio frequency bands, therefore the technological convergence in terms of both demand and supply as well as the change of business models require flexible management of the radio spectrum, adapted to the modern market. Taking into consideration a rapid overall development of technologies, the priority of RRT in 2011 remains efficient management of radio frequencies by creating
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conditions for investment into next generation wireless communication networks and development of advanced technologies and services. In the area of radio frequency management the Member States must adapt their radio frequency assignment and license granting systems to the new rules, in order for the conditions of use of radio frequencies to be as flexible as possible, for instance, the provisions on transferring radio frequencies to other undertakings are strengthened, creation of conditions for provision of new electronic communications services is oriented to. The Member States are encouraged to cooperate with each other and with the Commission when performing the strategic planning and coordination of radio spectrum use within the European Community. In 2010 the Commission provided the proposal for the first programme of the radio spectrum policy (the innovation of the reform measures package). Undoubtedly, significant attention will be dedicated to the disconnection of analogue terrestrial television and further implementation of digital terrestrial television. The activities in the area will be continued on both the international level, i. e. digital dividend use prospects, and in the national context, for the purpose of ensuring the needed demand of digital terrestrial television channels. Another direction of activities in 2011 will be related to the preparation for the World Radiocommunication Conference WRC-12. As only one year remains until the conference, the radiocommunication administrations actively provide different proposals regarding the changing of the international management of electronic communications resources, which will be discussed and approved during the WRC-12. Four international working groups have been formed to discuss proposals regarding each issue of the agenda of WRC-12 and the common position of the European countries, planned to be defended during the conference, is being coordinated. In 2010 one of the most important events of the International Telecommunication Union (ITU), i. e. the Plenipotentiary Conference, was held. The conference is the highest body of the ITU, during which the essential decisions, pertaining to the activities of the ITU and having influence on the processes in the area of telecommunications, are made. During the conference, apart from many others, the decision was made to organize the World Conference on International Telecommunications of the ITU (WCIT) in 2012, during which the provisions of the International Telecommunication Regulations will be revised. The years 2011 and 2012 will be dedicated to the review of the document, having the power of an international treaty, i. e. the ITR and preparation for the WCIT. With the rapid development of the ICT sector and e. business, e. health, e. education and other ICT services, the security of networks and information becomes more and more relevant on both the individual country and global levels. Taking into consideration the importance of security of electronic communications networks and information and when implementing the provisions of the Lisbon Strategy and EC Communication "i2010 - A European Information Society for Growth and Employment", in 2011 the strengthening of security of electronic communications networks, reliability and resistance of electronic communications networks remains a priority activity for RRT. Electronic services can be developed only upon ensuring security of networks and information. RRT executes the functions of the national CERT, the activities of which are aimed at focusing the attempts of electronic communications network administrators in fighting incidents in the electronic space and performing prevention of such incidents, ensuring coordinated actions and efficient dissemination of information for the purpose of quick response to threats and performing investigation of incidents. By performing the said activities RRT contributes to the development of a safer electronic environment,
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encouragement of safer use of the Internet and increasing of consumer confidence in information technologies. By the Resolution of the Government of the Republic of Lithuania On the Institution of Supervision of the Electronic Signature (Official Gazette Valstybs inios, 2011, No. 8-316) and the Resolution of the Government of the Republic of Lithuania On the Amending of Resolution No. 2108 of the Government of the Republic of Lithuania of 31 December, 2002 On the Approval of the Requirements to Providers of Certification Services, Issuing Qualified Certificates, the Requirements for Electronic Signature Equipment, the Procedure of Registration of Providers of Certification Services, Issuing Qualified Certificates and the Regulations for Supervision of the Electronic Signature (Official Gazette Valstybs inios, 2011, No. 8-315), which were adopted on 17 January, 2011 and are going to enter into effect on 1 May, 2011, RRT was assigned additional functions, i. e. to perform the functions of the electronic signature supervision institution and registration of the providers of certification services, producing qualified certificates, for the purpose of implementation of Article 10 of the Law on Electronic Signature of the Republic of Lithuania (Official Gazette Valstybs inios, 2000, No. 61-1827). Another important area of RRT activities is ensuring competition on the postal and courier services markets. On 20 February, 2008 the European Parliament and the Council adopted Directive 2008/6/EC, amending Directive 97/67/EC with regard to the full accomplishment of the internal market of Community postal services. In order to ensure that the Lithuanian post becomes an integral part of the EU postal system and the consumer characteristics of the provided services are analogical to the consumer characteristics of the postal services, provided in other EU Member States, one of the Measures of Implementation of the Programme of the Government of the Republic of Lithuania for 2008 - 2012, approved by the Resolution No. 189 of the Government of the Republic of Lithuania of 25 February, 2009 (Official Gazette Valstybes Zinios, 2009, No. 33-1268), envisages the preparation of the draft of the law on amending the Postal Law of the Republic of Lithuania, which would transpose the provisions of Directive 2008/6/EC into the national legislation until the 4 quarter of 2011. The essential objective of the Directive is a complete liberalization of the market starting from 1 January, 2011. However, eleven EU Member States, including Lithuania, were granted an exemption to postpone the opening of the postal market until 1 January, 2013. One of the essential objectives of the EU postal policy is the coordination of a gradual and controlled liberalization of the postal services market and ensuring of provision of universal postal services. However, even after the liberalization of the postal market, the obligation to ensure the provision of universal postal services on the entire territory of the country on the same conditions to all the users of universal postal services at least one time per day and five days per week, established with regard to the Member States, will undoubtedly be retained. The challenge of the liberal postal market is to ensure uninterrupted provision of universal postal services upon refusal of the reserved postal services. The goal of RRT activities is to ensure a variety of technologically progressive, top quality, safe and affordable information and communications technologies (ICT) and postal services/products to every citizen of Lithuania. The measures, foreseen in the RRT Strategic activity plan 2011, will continue the works, started in the previous years for the purpose of continuous implementation of the system for encouraging of competition in the electronic communications sector, regulated by both Lithuanian and EU legal acts as well as the states policies in the ICT and postal and courier services sectors.
th
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FINANCIAL STATEMENT 2010
RRT assets and liabilities
No. Assets Indicator 1. Fixed assets 2. Current assets 31-12-2010 (LTL thousand) 29495.2 5050.2 Funding amounts, liabilities, net assets Indicator Funding amounts Liabilities Net assets TOTAL: 31-12-2010 (LTL thousand) 450.7 490.5 33604.2 34545.4
TOTAL:
34545.4
The revenues, received by RRT in 2010 for the services provided and works completed according to the Special Communications Management and Control Programme
Revenues, 2010 No. 1. 2. RRT revenues groups Supervision of observance of the conditions for engaging in electronic communications activities Supervision of observance of the conditions for provision of postal services and conditions for provision of courier services Revenues from tenders and auctions for granting the right to use radio frequencies/channels and telephone numbers Issuance of licenses to use radio frequencies/channels, telephone numbers, radio stations and issuance of licenses for radio amateur activities Supervision of radio frequencies/channels use, including monitoring Supervision of telephone number use Tests of radiocommunication equipment and telecommunications terminal equipment, tests of electromagnetic compatibility of apparatus and equipment Other TOTAL (1+2+3+4+5+6+7+8) LTL thousand 136.8 Per cent 1.24
71.0
0.65
3.
0.0
0.00
4.
499.5 7.467.7 2.726.6
4.54 67.86 24.78
5. 6.
7. 8. 9.
102.0 0.3 11.003.9
0.93 0.003 100.00
In 2010 RRT executed one Special Communications Management and Control Programme, code 01.81. The revenues, received for the services provided and the works performed by RRT are transferred into the budget and later returned from the budget for covering the activity costs. For funding the programme LTL 18,500,000 of RRT revenue contributions and LTL 18,500,000 of appropriations, including LTL 8,400,000, foreseen for work remuneration and LTL 2,000 for purchasing of assets, was allocated according to the Law on the Approval of Financial Indicators of the State Budget in 2010 of the Republic of Lithuania (Official Gazette Valstybes Zinios, 2009, No. 152-6822).
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Referring to the Law on the Structure of the Budget of the Republic of Lithuania (Official Gazette Valstybes Zinios, 1990, No. 24-596, 2004, No. 4-47), Resolution No. 543 of the Government of the Republic of Lithuania of 14 May, 2001 On the Approval of the Procedure of Formation and Execution of the State Budget of the Republic of Lithuania and Budgets of Municipalities (Official Gazette Valstybes Zinios, 2001, No. 42-1455, 2004, No. 96-3531), the amount of LTL 5,311.600 of non-used contributions into the state budget of the previous year was transferred into 2010 and used for funding of the Special Communications Management and Control Programme, executed by the Communications Regulatory Authority of the Republic of Lithuania by exceeding the amount of appropriations, approved by the Parliament of the Republic of Lithuania. Referring to the estimate, approved on 12 April, 2010, totally LTL 23,811,600 was foreseen for funding of the Special Communications Management and Control Programme, executed by RRT in 2010 (18,500,000+5,311,600) (i. e. the amount, including the non-used contributions into the state budget of the previous year). RRT, in observance of the provisions of the Law on Electronic Communications of the Republic of Lithuania, must evaluate the conformity and legitimacy of the costs and collected charges. Upon evaluation of the revenues received and the funds not used in 2009 and in order to balance the costs and revenues of 2010, on 22 March, 2010, by Order No. 1V-355 of the Director of the Communications Regulatory Authority (Official Gazette Valstybes Zinios, 2010, No. 34-1653) RRT established the tariffs recalculation rate 0.2, which was in effect from 1 April, 2010 to 30 November, 2010. The rate reduced the tariffs of charges for the services provided and works performed by RRT by 60 per cent on the average, which resulted in receipt of a smaller amount of revenue, i. e. LTL 11,004,000.
Utilization of funds, allocated for the Special Communications Management and Control Programme, executed by RRT in 2010
For the Special Communications Management and Control Programme Pay-box expenses 2009 (LTL thousand) 14 086.3 7 974.2 2 489.3 3 520.9 101.9 617.4 0.3 617.1 14 703.7 Pay-box expenses 2010 (LTL thousand) 12 484.6 6739.4 2107.1 3536.3 102.0 805.5 805.5 13 290.3
No.
Expenses
1. 1.1. 1.2. 1.3. 1.4. 2. 2.1 2.2 3.
Total expenses including: Work remuneration Social insurance contributions Expenses for goods and services Social allowances (income support) Tangible and intangible property expenses including: For constructions (buildings and structures) For purchasing of fixed assets TOTAL (1+2)
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Annex 1. The results of market analysis, performed by RRT
The imposed obligations Undertakings having significant market power Non-application of discriminative pricing
X X
Name
1.
2.
The market of access to public telephone network at a fixed location for residential customers The market of access to public telephone network at a fixed location for non-residential customers The market of publicly available local and/or national telephone services, provided at a fixed location for residential customers The market of publicly available international telephone services, provided at a fixed location for residential customers The market of publicly available local and/or national telephone services, provided at a fixed location for non-residential customers The market of publicly available international telephone services, provided at a fixed location for nonresidential customers The market of the minimum set of leased lines (which comprises the specified types of leased lines up to and including 2 Mb/s, as referenced in Article 18 of and Annex VII to the Universal Service Directive) The market of call origination on the public telephone network, provided at a fixed location The market of call termination on individual public telephone networks, provided at a fixed location
TEO LT, AB
TEO LT, AB
3.
TEO LT, AB
4.
TEO LT, AB
5.
TEO LT, AB
6.
TEO LT, AB
7.
TEO LT, AB
8.
TEO LT, AB
9. / 3.
TEO LT, AB, Lietuvos Geleinkeliai AB, Lietuvos Radijo ir Televizijos Centras AB, Mediafon UAB, CSC Telecom UAB, Eurocom SIP UAB, Interneto Pasaulis UAB, Nacionalinis Telekomunikacij Tinklas UAB, Telekomunikaciju Grupa UAB, Cubio UAB, Linkotelus UAB TEO LT, AB together with the related entities TEO LT, AB together with the related entities According to the preliminary data - TEO LT, AB
10.
The market of national transit services, in the fixed public telephone network The market of international transit services, in the fixed public telephone network Wholesale market of unbundled access (including shared unbundled access) to the physical network infrastructure, provided at a fixed location Wholesale broadband communication access market 13.1 Market of terminating segments of low speed rate leased lines 13.2 Market of terminating segments of high speed rate leased lines 14.1 Market of trunk segments of national leased lines 14.2 Market of trunk segments of International gateway leased lines Market of access and call origination on public mobile telephone networks
10.
11. / 4.
12. 13.
TEO LT, AB TEO LT, AB N/A. The market is still under development TEO LT, AB N/A. The market is efficiently competitive. N/A. The market is efficiently competitive.
X X
X X
X X
X X
X X
14.
15.
Selection of the provider of public telecommunicatio n services

X X
Price control and cost accounting
Wholesale line lease
Nondiscrimination
Transparency
Market No. acc. to Rec. 2003/ Rec. 2007*
Provision of access
Provision of leased lines
Accounting separation
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16. / 7. The market of voice calls termination on individual mobile networks National wholesale market for international roaming services on public mobile networks** The market of analogue terrestrial radio programmes broadcasting transmission services to deliver broadcast content to end users, where the radio frequency/channel is allocated to the transmitter Lietuvos Radijo ir Televizijos Centras AB The market of digital terrestrial radio programmes broadcasting transmission services to deliver broadcast content to end users, where the radio frequency/channel is allocated to the transmitter Lietuvos Radijo ir Televizijos Centras AB The market of analogue terrestrial radio programmes broadcasting transmission services to deliver broadcast content to end users, where the radio frequency/channel is allocated to the broadcaster The market of analogue terrestrial television programmes broadcasting transmission services to deliver broadcast content to end users, where the radio frequency/channel is allocated to the transmitter Lietuvos Radijo ir Televizijos Centras AB The market of digital terrestrial television programmes broadcasting transmission services to deliver broadcast content to end users, where the radio frequency/channel is allocated to the transmitter Lietuvos Radijo ir Televizijos Centras AB The market of analogue terrestrial television programmes broadcasting transmission services to deliver broadcast content to end users, where the radio frequency/channel is allocated to the broadcaster The market of digital terrestrial television programmes broadcasting transmission services to deliver broadcast content to end users, where the radio frequency/channel is allocated to the transmitter TEO LT, AB Omnitel UAB, Bit Lietuva UAB, Tele2 UAB X X X X
17.
18.
Lietuvos Radijo ir Televizijos Centras AB
18.
18.
18
18.
18.
18.
TEO LT, AB
The markets, analyzed in 2010, are highlighted in colour. * EC Recommendation 2007/879/EC of 17 December, 2007 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 communications networks and services (Framework Directive), in which the list of 7 markets was established, superseded the previous EC Recommendation 2003/311/EC of 11 February, 2003 on relevant markets, in which the list of 18 markets was established. The column of the table states the number of the market according to the list, provided in the annex to the relevant recommendation. ** After the EC adopted the decision with regard to regulation of international roaming services throughout the EU, the results of the analysis were not notified for public consultation and to the Commission.
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2010 Annual Report RRT

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Annual report 2010 RRT

Annual report 2010 RRT

Annual report 2010 RRT

Annual report 2010 RRT

Annual report 2010 RRT

Annual report 2010 RRT

Annual report 2010 RRT

Encouragement of longterm investments and development of innovative ICT

Integration into the decision making process in EU

Efficient management and supervision of usage, including monitoring of radio frequencies/channels

Efficient planning, organization, control and publicity of the RRT activities

Annual report 2010 RRT

Control and supervision of other electronic communications recources

Supervision of terminal equipment

Regulation of postal and courier sector

Regulation of electronic communications sector, including the e-security

Control and supervision of radio spectrum

Annual report 2010 RRT

7,3 7,8 5,3

9,8 10,3 5,1 2,9

-7,7 -15,0 2009 -10,7 2010

Annual report 2010 RRT

1 236 1126 984

120 100 80 60 354,9 302,6 40 20

Annual report 2010 RRT

Figure 3. The number of Internet access service subscribers in 20062010

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3,5% 6,8% 6,5% 0,2%

0% Fibre lines xDSL

40% Cable TV networks

100% Leased lines

Wireless communication lines

Annual report 2010 RRT

*The number of subscribers, to whom Internet access is provided by FTTx

Annual report 2010 RRT

Revenues from postal services

Revenues from courier services

Annual report 2010 RRT

of the Code of Administrative Violations of

Annual report 2010 RRT

Annual report 2010 RRT

Annual report 2010 RRT

Annual report 2010 RRT

Supervision of the electronic communications market

General supervision of undertakings, engaged in electronic communications activities

Annual report 2010 RRT

Supervision of the postal and courier services market

Annual report 2010 RRT

Figure 9. The development of issued reports on administrative violations of law in 20062010

Annual report 2010 RRT

2010 2009 2008 2007 0 2000

4 585 4 085 6 700 7 830

Annual report 2010 RRT

Annual report 2010 RRT

2008 273 223 22 28 122 26 247 96 177 26 161 112 37 75 29 21 217

Surveillance of the market of electromagnetic compatibility of equipment and devices

Annual report 2010 RRT

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The quality of Internet access services, provided over mobile networks

Annual report 2010 RRT

Annual report 2010 RRT