National Regulatory Agency for Electronic Communications and Information Technology of the Republic of Moldova

Today, August 17, the National Regulatory Agency for Electronic Communications and Information Technology (ANRCETI – www.anrceti.md) is celebrating its 10th anniversary. It was formed as a result of telecommunications restructuring, in the 90s, intended for the liberalization of the sector, promoting competition and creating modern infrastructure to ensure the integration of the national telecommunications networks with the European and international ones.

Starting its walk of life on an unknown field 10 years back, the Agency went through challenges, failures, but also victories, which enabled it to gain the experience necessary for a mature regulator of a very specific market. The Agency team has worked hard to win a reputation of professionals and repeatedly proved the sector’s need for a regulatory authority.

The main result of the Agency’s work is creation of proper conditions for dynamic development of communications and IT, full liberalization of the fixed telephony market and enhancing the liberalization of mobile Internet access markets. To this end the Agency has taken a number of measures of primary importance for ensuring a more dynamic communications sector, including the developing and implementation of the first National Numbering Plan and the first rules for network interconnection in the modern history of local telecommunications, the tariff re-balancing process for basic public services provided by Moldtelecom, liberalization of communications markets, simplification of market entry.

Following these and other actions of the Agency, the number of fixed operators increased in the period 2000 - 2010, from one to 17, and those of mobile – from two to four. The number of Internet-providers increased to 50, four of which have direct access to cross-border Internet traffic. This market segment was de-monopolized in the first half of this year. The Agency approved three new companies operating in the market for direct access to cross-border global Internet traffic. The Agency believes that the market entry of new companies will enhance competition, which will reduce tariffs for broadband Internet services and increase the quality of these services.

The impact of the measures taken by the Agency is very well reflected in the evolution of the communications sector, which became, in the first decade of the XXI century, the most dynamic sector of the national economy. The most impressing increase occurred on mobile and Internet access markets. Within a decade, they developed to the extent that other similar sectors in many counties would have developed in 20 – 30 years. In the recent 10 years, the number of mobile users increased 26 times: from 111 thousand to 2 million 855 thousand, whereas the penetration rate of services per 100 inhabitants increased from 3,1% to 80,1%. The number of 3G mobile broadband Internet users reached 107,4 thousand in 2010, whereas the number of broadband Internet subscribers at fixed locations reached 231 thousand. In the timeframe 2000 – 2009 the total volume of sales on communications market annually increased on average by 24,5% and showed 6 billion lei last year.

In 2010, the Agency started work on implementing a new competition protection mechanism: identification and analysis of relevant markets, designation of providers with significant market power on these markets and establish special preventive obligations to be imposed on SMP providers in order to eliminate market entry barriers and stimulate competition. In the first half of 2010 the identified the first four relevant markets. Currently the work in being done in terms of market analysis, after which appropriate remedies will be chosen and applied to redress the situation. By the end of this year the Agency will have completed the work related to the six relevant markets. In this complex work the Agency is assisted by the international experts of the technical assistance project provided by the European Bank for Reconstruction and Development.

In ten years’ time the Agency succeeded in the creation of a strong team of qualified professionals able to meet the requirements of modern communications markets. It started with 12 specialists recruited from the ministry and state enterprises in the sector, many of whom continue to work for the Agency today. This team became the core group, surrounded over the passing years by the Agency’s entire staff now comprising over 40 specialists. Most of them are engineers, programmers, economists, lawyers. Over the recent two years the Agency has engaged mainly young specialists aged 20 to 29. Currently, the young staff that gives impetus to the creativity and innovation in the work of the Agency has over 20 specialists. The Agency management believes that staff rejuvenation provides reserves for further development and strength.

Currently the Agency team is concerned about how to create proper conditions for the launch of new services, of European level. For this purpose, the regulator is developing the program for number portability implementation, the rules for the use of a single national emergency number „112”, as well as a series of regulatory documents aimed at developing networks and services for broadband Internet access, (4G) cell mobile communications, transition from analogue to digital television.

These and other short- and medium- term objectives of the Agency aim to stimulate the ascendance of the electronic communications and IT sector, which became a priority for economic and social development of country. The Board is certain that the Agency will be able to achieve its goal, for it possesses the potential: good experience gained within one decade of activity, and a qualified staff that can meet the challenges of this key sector of the national economy.

August 17, 2010