of Electronic Communications and the National Strategy for the development of Information Society should be complementary among them and have the same direction which is the creation of Information Society in the Republic of Macedonia. Since the Strategy for the development of Radio Broadcasting Activity will be extremely important for creating an enabling environment necessary for support and development of digital convergence, its directions should be carefully selected, based on prior extensive research and analysis of technological and economic conditions in the Republic of Macedonia. The digital dividend should also be taken into account, which by introduction of digital radio broadcasting services will completely free the completely engaged analogue radio broadcasting spectrum, bringing new opportunities for development not only for the producers and broadcasters of audiovisual contents, but also for providers of ICT services. In the course of preparing the Strategy for Developing of Radio Broadcasting Activity, the private and civil sector should be actively involved. Measure 2.5. The Strategy for the development of Radio Broadcasting Activity should be complementary with the National Strategy for the development of Electronic Communications by Information Technologies and the National Strategy for the development of Information Society. In the course of its preparation, it is necessary that the private and civil sector be actively involved. II.6. Functional/Structural Separation - Support to the Liberalisation Process and Ensuring Competition The need of the Republic of Macedonia to achieve a significant step forward in the development of ICT sector requires reviewing and implementing some new innovative solutions. One of the solutions which is being reviewed in many countries in the world12, and in some already applied with many positive results is the functional separation of regulation of access to infrastructure from the remaining part of the network and services, and separation of operation of the incumbent operator13. All available data confirms the fact that competition and open market encourage innovations and investments. New technologies (especially IP based platforms) open opportunities to new regulatory approach: functional separation of regulation of the passive part of the network (cable and cable canalisation) from the active part (servers, routers, etc.). 12 This approach of functional separation obtained the support of Vivien Redding, European Commissioner for Information Society and Media in June 2006, SPEECH-06-422 and afterwards in December 2006, SPEECH-06-772 13 Incumbent operator is a communications operator which owns the existing infrastructure to end users (former telecom companies in state ownership). Page 18 of 40

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