IV. Conclusion This document, the Strategy for the development of Electronic Communications with Information Technologies was developed in full compliance with the directives, programmes and strategic determinations of the European Union, in particular the Strategic Framework i2010, as concerns the part on ICT infrastructure. EU directives maintain that each country should develop own programs and strategies that are compliant with the set strategic directions and goals, but with maximum level of respect for the local specificities and the different development levels and needs. This provides us with an opportunity to base the development on our strong features, due to the right decisions brought in the past, and will also allow us to remedy some mistakes that have had adverse effect on the development. Macedonia entered the nineties with a telecom operator which had an excellent infrastructure, almost fully digitalized, and which was internationally recognized as an acknowledged technological leader in the broader region. This infrastructure (excellent backbone based on the latest IP/optical fibre technology, and cupper trunks, short enough for the broadband internet technologies) is existent today, although utilized only to a small extent as a result of some decisions which were taken without having a long-term strategy in this area. This Strategy proposes measures, such as the preparation of an analysis of the need for a functional separation38 of the incumbent operator into one unit that will operate the passive part of the network (cables and cable canalization) and one unit that will operate the active part (servers, routers, etc.). With such a separation the regulation of the incumbent operator will be simplified and it can be expected that prices for access to the infrastructure will become more affordable. This strategy covers the necessary legal and regulatory environment as basis for the development of the electronic communications and the efficient operation of the regulator. The directives proposed for the operation of the regulator will provide for additional competitiveness on the market of electronic communications as a basic precondition for the development of the information society. Concurrently with these measures aimed at overall development, under the Universal Service Strategy the Government will ensure that a certain minimum level of service is available to all citizens at an affordable price. The definition of what should be “minimum level of universal service” will periodically be revised, and if the market does not provide that service at an affordable price, an intervention will be made through the Universal Service Fund. 38 The separation of a powerful telecom operator into several units has been done before. In the first half of the eighties in the USA, the then existing AT&T was separated into seven regional local operators and АТ&Т Long Lines due to its enormous power and monopolistic position on the market. Page 39 of 40

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