HAKOM adopted New Rules for the Operators and New Rights for the End-Users

ZAGREB, May 5, 2016 – The Croatian Regulatory Authority for Network Industries (HAKOM) adopted the amendments to the Ordinance on the Manner and Conditions for the Provision of Electronic Communications Networks and Services. Amendments are related to the users’ rights and the operators’ obligations and shall enter into force in two months except for the operator’s obligation to ensure that minimum speed of broadband Internet access from 70 percent of the maximum contractual rate for all services contracted since January 1, 2017 are provided to the end-users.

By the amendments to the Ordinance the minimum speed of the Internet access from 50 percent to 70 percent of the maximum contractual rate is increased for all contracted services after 1 January 2017 regardless of the agreed maximum speed. In this way they can balance the percentages of the minimum speed in relation to the maximum speed for all Internet access services. However in case the operator, due to technical reasons, cannot regularly deliver at least 70 percent of the maximum contractual rate, the Ordinance ,in addition to the right to terminate the contract without paying a fee for early termination or switching to another package with a lower rate, has provided discount service to the operators.

Another important area regulated by the Ordinance is the sale by means of distance communication and outside  the operators’ business premises. Since, according tothe latest amendments to the Consumer Protection Act from October last year, under the authority of the Ministry of Economy, the sale is specially regulated by means of distance communication and outside the business premises of traders, HAKOM has additionallyregulated the sale of these services in order to be as clear as possible for the users of the electronic communications. Also, the procedures of all operators dealing with this type of their services sale will balance and contain all the necessary information and notifications to avoid situations in which users were not sufficiently informed when deciding whether they want any service or not. This includes the entire contracting process from single sales to subsequent confirmation according to which the operator is requiredto deliverthe same to the user’s home address. Furthermore, in order to completely prevent the end-users from fraudand identity theft during the establishment of subscriber’s relationship where the main objective of scammers is to get hold of expensive devices, and leave the subscription to the userwhose identity was stolen, the delivery of devices will be possible only tothe user’s address.

Among other users’ rights and obligations of the operators it is important to single out a reference to general business conditions and the price lists on the operator’s website.In addition,in case the operator is willing to conclude the contracts via the Internet, the manner of contract termination must be clearly stated and the termination via the Internet or electronical termination must be a part of the contract. In case of reported and identified fault repair time longer than 24 hours, the operators will always have to offer the impairment account or other form of compensation, without possibility of filing a complaint.

Regarding the faults, HAKOM noted many cases in which the fault repair time lasted too long, especially when within the operator’s scope of the work providing the service to the end-user- Therefore the operator is obliged to the following: all equipment breakdowns provided by the operator to the user for the usage or rentmust be removed no later than 5 days within the duration of the contract (e.g., modem) Otherwise the user has the right to terminate the contract without paying a fee for early termination, with the impairment account for that month as it is not reasonable to be without the Internet access or TV programs only because the operator is not in the position to deliver the correct equipment and replace invalid one within a reasonable period of time. These regulations do not refer to line defects HAKOM will solve themin different mannerand  theusers’ expenses will be reduced in compliance with the fault repai time.

ABOUT HAKOM: HAKOM (www.hakom.hr) - Croatian Regulatory Authority for Network Industries – ensures preconditions for a fair market competition, stable growth and environment for innovations in the electronic communications and postal services market. HAKOM protects users’ interests and the possibility of choice among various communications and postal services at affordable prices, defines sustainable competitive conditions for operators and service providers under fair conditions for return on investment, and provides support to economic growth, public services and the quality of life in the Republic of Croatia by using modern technologies. HAKOM’ strategic goals are: to promote regulation of the electronic communications and postal services market, to support growth of investments and innovations in the electronic communications and postal services market, to provide efficient use of limited resources, to accelerate the growth of broadband products and services, to provide affordable offers of communications and postal services, to provide protection and informing of users, to build an efficient and comprehensive information system, to define and implement efficient processes, and to acquire multi-disciplinary competencies in market regulation.