Regulatory policy should be consistent and flexible, should be based on market principles and technological neutrality and should not result in creation of new barriers to free market competition. It should be based on promotion of competition and protection of the interests of the consumers in this area, including the universal access to services. The regulatory policy should be implemented in a pro-active and transparent manner; it should also be predictable and adjustable to the dynamic trends of technological development. Ex-ante regulation will in the upcoming period represent a strategic approach of the Republic of Macedonia in the area of electronic communications. In compliance with EU directives, the tendency for reduction of the number of legislative acts that govern electronic communications must continue. The focus of the regulation should shift from a technical base to comprising the organisation and regulation of the market. The Government of the Republic of Macedonia should regularly follow and assess the development of the market and the work of the regulator and should adjust the legal framework, the institutional system and the governmental programmes to the legal system of the Republic of Macedonia and to the experiences of the countries that have a comparable development path and the applicable experiences of the EU countries. Under the process of accession to the EU, the state institutions of the Republic of Macedonia should be integrated in the European organisations thus making use of all potential benefits from the membership or the associative membership in the relevant organisations competent for the development of electronic communications9. The regulation should: - Support innovations and must not limit investments in new technologies; - Avoid imposing of new restrictions on competition and avoid monopolistic situations based on application of new technologies; - Guarantee the principles of transparency and non discrimination. Regulator’s decisions have direct impact on the liberalization and the competition on the market; hence, the recognition of the independence of the regulator is a vital element. The work of the regulator should be aimed at creating an efficient and sustainable competition as competition is the basic tool for better serving the interests of the subscribers and for supporting the development of the ICT industry. The market of electronic communications is developing and changing fast, so the regulator should actively follow these conditions. With respect to the foreseeable steps in the EU concerning the liberalisation of the rules for the management of the frequency spectrum (secondary trading, flexible use, simplified procedures for allocation, etc.), the Republic of Macedonia should take strategic decisions about the time and the extent of their implementation. 9 for example IRG / ERG and others. Page 12 of 40

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