Q : Bulgarian people and business used to suffer the awful quality of posts and telecommunications services and indifferent treatment of the national monopolies. Can we say now that the situation is changing into a right direction and what could be done to improve the quality of posts and telecommunication?
A : I think that things have changed so far and they will continue changing . The reform in the sector of posts and telecommunications in Bulgaria started in
1991- 1992. At that time the organisations: Bulgarian telecommunications and Bulgarian posts services were established and later on the Bulgarian Posts and Telecommunications Committee was found which has regulatory and political functions and also performs the task of executing the governing of this sector. Trade activities were delegated to joint-stock companies to operate in Bulgaria. In the same period there were negotiations for taking loans from financial institutions like the World Bank , EBLD and EFB. Those credits amounted 160 million $. At the same time the Bulgarian Telecommunication Company took the responsibility of providing the same amount from its side. So in the period from 1994-1998 a project called DON(Digital Operator Network) was executed at the cost of about 300 million $ . The results of this project are visible and operating at this time. International connectivity was provided for this project and at the present time the connectivity of Bulgaria operates on a digital bases. In the same time there was constructed the backbone of this network nation-wide using optic cables and digital microwaves. About 200 000 digital telephone lines were put in operation. A specific fact about the Bulgarian telecom network is that it possesses specific penetration – about 55%. Taking into consideration the number of the digital subscriber lines put into operation so far we can say that this number is still quite low. Our priority next years is going to be to replace the existing analogue subscriber lines with digital ones. The priority in the process of the privatisation of BTC is not broadening the network but rather setting a higher standard and quality. Now the quality of the telephone lines of the digital network subscribers is much higher . The priority of providing the subscribers with such lines is given to business companies. At the same time the restructuring process is continuing and we are expecting pretty soon the new telecommunication law to be passed in the Parliament. The main objectives of this new law would be to determine the organisational structures which will manage the sector and to regulate the operations.
Q : But, who is preparing this law – your committee or someone else?
A : The draft-law was prepared by a team of experts from the Committee. In the last stage of the preparation experts from other ministries were included, as well as some legal persons from the Ministry Council. May be some changes will be done by some members from the Parliament . So from being created totally by the Committee, in the final this draft-low will be a product of a joint-work of a large number of experts from Bulgaria and it will be for the total population of Bulgaria.
Q : You are the president of the Committee of Posts and Telecommunications in Bulgaria but do you feel free to take any decisions for the development of this sector?
A : I think the answer would be yes if we particularly point out what decision exactly you mean. One of the most important things which the Committee is preparing right now is the sector policy which is introduced in the Ministry Council for approval and it determines for a period as long as a year ahead what should happen in this particular sector. Speaking about the future regulatory institutional body which will be created for this new policy according to the new telecommunication network, it will be regulating the whole sector. This includes licensing , interconnection agreements and also the fares. As I told you in the very beginning matters of investments, of the development of the economy is in the hands of the commercial company which is a national operator. The first phase that I have already mentioned:1991-1993, half of the market was liberalised and this was marked by the emerges of other operators. These are two cell-mobile phone operators.
Q : Are you going to give more licences to boost competition in that field which is fast developing sector in Bulgaria.
A : After the appearance of the concession law in the end 1995 , the process of licensing was ceased. Since it was envisioned in the concession law that all the services ,networks and frequencies should be a subject to a concession and it did not take into consideration the specifics of the telecommunication market. The essence of the concession law was included in the belief that all these mentioned before services, networks and frequencies were monopoly of the state. According to the new telecommunications law that we have already commented on the state preserves its rights only on certain frequencies for issuing of concessions, all the rest is a matter of licensing. Very basic principal is in force which says that there will be restrictions on a number of operators only in connection with the natural resources. This is a very nature
– decision which will liberalise the communication market. There is the only one exception that concerns the voice-telephony and related network where according to the declaration of the World Trade Organisation, we will preserve the exclusive rights of the national operators up to 2002. One of the main reasons for this is the forthcoming restructuring and normalisation of the fares and the forthcoming privatisation of BTC.
| Q : It will be the biggest deal. Could you describe how the Privatisation procedures are going on.
A : It looks like one of the biggest deals. I think that the importance of this deal is not only the volume of the transaction. What is more important is that by this particular privatisation a whole sector will be privatised. And this a sector that has an immense strategic importance and very big influence on the rest of the sectors in Bulgarian economy. That is the major reason that I almost always use the term strategic partner but not strategic investor. As to the privatisation process ,one first look, a delay might be registered. But if we go to the heart of things we will find that this delay is necessary and justified. The former Government announced that it started the privatisation process before certain activities were taken in direction of finalising legal framework, without which the privatisation would not be as efficient as it has to be. As I mentioned before the law is at its final stage and the sector policy has been created and discussed . More than 15 normative regulations have been drawn. The strategy on the selling of the company has been prepared already together with the financial consultant Deutsche Morgan. The first step is due to be taken on restructuring the fare quotes . After all this we will be ready of publicising the information memorandum also created by Deutsche Morgan. In the summer and in the fall the so called Data …. . will be started with BTC . After which we foresee a holding organising an auction procedure where the strategic partner will be selected. All of these need to be completed by the end of this year and I think we can accomplish that.
Q: Last week it became clear that BTC considers a joint venture with the world famous investor George Soros. Would you share some more details about that project that seems very interesting?
A: I have been expecting this announcement and I think that it is a very good endeavour. The forthcoming activities under this initiative would be very positive not only for BTC but for Bulgaria as a whole. It is a common fact that we have very skilled software specialists who are wasting their energy either working abroad, creating viruses or working in other sectors and the nation as whole suffers from that. The opportunity of establishing the conditions in which this specialist would develop themselves to the fullest extend are very good. BTC contribution will be providing a better quality of the international telephone lines and also space, premises.
Q: Do you have a lot of contacts with American companies that would like to invest in this sector.
A: Yes, Even the first contact with a US company that I established was while I was working in BTC - Sprint International, eventually they created a joint-venture with BTC. Sprint International are a major suppliers for services needed for data transmission. At the present time they have changed their name into Global One after the merger between Sprint International and France Telecom International.
Q: We know that you are an expert in your sector and you have made a lot of research in Telecommunications and now as a more personal question, what has been your most personal achievement since you have been the President of the Committee?
A: In a sense it was a challenge to me to go to the other side of the barricade as a regulator. But I think that this a necessary and important task though especially dealing with the whole telecommunication market in Bulgaria and not only dealing with just one company in the sector. The major achievements that we marked in the period of last year were the creation of the sector policy, the draft law and also the regulations and we have also made the first steps in a direction of creating an information society, and ,of course , the preparation stages in the privatisation process of BTC, which are normally under the surface and not that visible.
Q:Now as a final issue, what would be your final message to our readers?
A: To try to learn something more about Bulgaria and a part of them to be able to find their own business in this country. We are a small enough country to invite all businessmen . I strongly believe that in the future Bulgaria will turn into a place very attractive for foreign investments and especially taking into consideration that it is on the threshold between Western Europe and Asia.
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BULGARIA, 
