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Contentious issues remain for Kosovo’s mobile market

UTICA, New York, United States-Nearly two years since cessation of hostilities on 10 June, 1999, numerous roadblocks still stand in the way of any attempt to restore and expand telecommunications network services in post-war Kosovo. In a province roughly the size of Jamaica, with a population of 2.3 million, problems arising out of the struggle over sovereignty, ownership issues and the dependence on Belgrade, the Former Republic of Yugoslavia (FRY) Ministry of Communications still interferes.

Certain obvious concerns have been addressed, including regulatory and technical issues. Any solution to create and deploy mobile services needs rapid set up, continued operation, and connectivity to an international gateway. The existing fixed and GSM mobile networks operate under two different country access codes-FRY’s 381 and the Principality of Monaco’s 377, respectively.

On 17 December, 1999, in Paris, the publicly owned Posta Telekom Kosoves (PTK) signed the United Nations Mission in Kosovo (UNMIK)-backed mobile agreement for Kosovo with Alcatel and Monaco Telecom. UNMIK assumed ownership responsibilities for PTK, as well as several other state enterprises. The principality of Monaco, one of the wealthiest states in Europe and with long ties to French supplier Alcatel, offered to become Kosovo’s link to the outside world.

One of UNMIK’s greatest responsibilities is rebuilding Kosovo’s telecommunications infrastructure. This includes the old mobile service provided by Mobtel, out of Belgrade, and the new VALA 900 MHz network operator in Kosovo’s capital, Pristina. The GSM network is based on an Alcatel mobile switching center integrating an invoicing center for international calls, as well as Evolium GSM base stations, controller stations and microwave radio links. This serves 50,000 subscribers, including the international aid community of more than 10,000 civilian and 40,000 military personnel. The network routes calls through satellite uplinks in Kosovo via Monaco Telecom to the global network.

Basic telephone service within the province was poor before the conflict. About 20 percent of analog customers were on party lines. A European Commission and World Bank report, issued on 3 November, 1999, acknowledged pre-war there were “only about 130,000 phone lines in service; Kosovo’s telecommunications network has the second-lowest telephone penetration rate in Europe, amounting to about six lines per 100 persons.”

Resolving concerns over the establishment of a modern communications infrastructure remains a high priority for the international community, as it is a major vehicle for economic growth and recovery. Donor agencies play an important role in the development of Kosovo, including a 35 million deutsche mark (US$18.4 million) loan used by PTK to set up and run the new mobile network.

Meanwhile, contentious issues need to be resolved, including the role of PTK as a service provider, establishing an adequate revenue stream from a debilitated economy, direct access to other European networks, user costs and a broader range of services. Despite the impressive foreign investment in Kosovo’s telecommunications infrastructure, its future ownership remains uncertain. At present, it is a ward of UNMIK. Only a final political settlement involving FRY and the North Atlantic Treaty Organization (NATO) can resolve this question.

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