Economic and political
situation to a potential
investor and his partners in
a telecommunication
industry in Slovakia
Make a presentation
BSBCMM401A
Certificate IV in Business
Ivana Majerkova
Slovakia
• Slovakia, also known as the Slovak Republic, is a country located
in the Central part of the European continent. Being in the center
of the continent, Slovakia is a landlocked country, it is surrounded
by other European nations on all sides. On the western side,
Slovakia shares its border with Austria and Czech Republic, on the
North it is bordered by Poland, on the east Slovakia is surrounded
by Ukraine and to the south it shares its borders with Hungary.
With more than 49,000 square kilometers area, Slovakia is one of
the largest countries in the European Union.
• Bratislava, the capital city of Slovakia, is also the largest city in the
country. The country has more than 5 million inhabitants residing
in the country. The country is one of the key members of the
European Union. Besides it is also a member of the United Nation,
WTO, OCED, NATO and other such prestigious International
organizations.
Introduction
•
Population
Total population: 5,447,502
•
Age structure
0–14 years: 15.7% (male 439,331; female 419,123)
15–64 years: 71.7% (male 1,954,798; female 1,966,611)
65 years and over: 12.6% (male 258,157; female 432,286 (2010 est)
•
Median age
total: 37.3 years, male: 35.7 years, female: 38.9 years (2010 est)
•
Sex ratio
at birth: 1.05 male(s)/female
under 15 years: 1.05 male(s)/female
15–64 years: 0.99 male(s)/female
65 years and over: 0.6 male(s)/female
total population: 0.945 male(s)/female (2006 est.)
Immigration
Immigration on Slovakia is one from at least in
European Union. The biggest number immigrants
were in year 2008, when on Slovakia came 8600
immigrants. Most immigrants were from
European countries. Outside Europe was smaller.
Slovakia has one from most stringent immigration
policy like Denmark etc. It is one from reason why
Slovakia has one from lowest number immigrants
in European Union. Compared Czech Republic has
about 400 000 immigrants what is also the
biggest number immigrants in central Europe.
Infant mortality rate
• total: 7.26 deaths/1,000 live births
• male 8.48 deaths/1,000 live births
• female 5.98 deaths/1,000 live births (2006
est.)
Life expectancy at birth
• total population: 74.73 years
• male: 70.76 years
• female: 78.89 years (2006 est.)
Total fertility rate
• 1.33 children born/woman (2008 est.)
• 1.35 children born/woman (2009 est.)
• 1.36 children born/woman (2010 est.)
Ethnic groups
• The majority of the 5.4 million inhabitants of
Slovakia are Slovak (85.5%). Hungarians are
the largest ethnic minority (9.7%) and are
concentrated in the southern and eastern
regions of Slovakia. Other ethnic groups
include Roma (1.7%), Czechs, Rusyns,
Ukrainians, Germans, Poles, Serbs and Jews
(about 2,300 remain of the estimated
population of 120,000).
Life in Slovakia
• Slovakia's citizens perceive their own life situation as
well as the overall economic situation of the country
rather pessimistic. From all EU member countries is the
share of “pessimists” the highest right in Slovakia.
• Similar as in other countries, also in Slovakia - people
are more satisfied with their personal situation
compared to the economic situation in the country. A
worsening of the own personal situation declared 41%
of the respondents as to the economic situation of the
country 52%, a worsening of the employment situation
in Slovakia expect 37%, a worsening of the household's
financial situation 48% and of the own job situation
18%.
Slovakia's urgent problems
• In the hierarchy of the most urgent problems Slovakia
faces, dominate for a long time already "unemployment"
and the "standard of living". It is the "social issues"
perceived most sensitively by the majority of the
population.
• Generally we may state that the seven most severe
problems of Slovakia are identical with those of the 10 new
Member Countries. If comparing this group of states with
the EU 25, we notice two striking differences – in those
countries, the most sensitively perceived problems are
immigration and terrorism. The Slovak citizens classified
them to lower positions within this urgency charts – both
problems were declared just by 1% of the respondents, i.e.
on rank 10
Religion in Slovakia
The Slovak constitution guarantees freedom
of religion. The majority of Slovak citizens
(69%) practice Roman Catholicism; the
second-largest group consider themselves
atheists (13%). About 6.9% are Protestants,
Greek catholic 4.1%, and 0.9% are Orthodox.
Reformed Christian Church 2.0%, other 6.4%
(2004 survey). There are 5,000 Muslims in
Slovakia.
Literacy
•
•
•
•
definition: age 8 and over can read and write
total population: 99.6%
male: 99.7%
female: 99.6%
An average wage in Slovakia
• At the beginning of 2010, the average wage in
Slovakia was €744 per month. In the capital
Bratislava, it is almost a third higher than this.
Recently, the government decided to increase the
minimum wage of €307 per month based on an
administrative decision by the cabinet.
• The average real wage in Slovakia only reached
pre-1989 levels in 2008. However, the same does
not apply to living standards, which are much
improved as people need to work less to buy the
same amount of goods and services.
Social guarantees
• The Slovak state spends 17% of GDP on social protection (including
health care), which is half the EU average. More than 84% of
Slovakia's social budget is funded by social contributions, not via
taxes as is the case in Western countries. The majority of the
funding is assigned to old-age pensioners.
• To address the negative demographic trend and an ageing
population - and boost the sustainability of the social system - the
previous government added a second, private pillar to the social
insurance system. This individual saving scheme, which
complements the pay-as-you-go system, was meant to be
compulsory for the younger population.
• The current government strongly opposed the system and said it
would put savers' money at risk. It ceased to make participation
obligatory and has been trying to persuade savers using individual
accounts to return fully to the state system.
Current inflation Slovakia
• Current inflation Slovakia - the inflation is based upon the
Slovak consumer price index. The index is a measure of the
average price which consumers spend on a market-based
"basket" of goods and services. Inflation based upon the
consumer price index (CPI) is the main inflation indicator in
most countries. Current harmonised inflation Slovakia
(HICP Slovakia) – the harmonised inflation is based upon
the Slovak harmonised consumer price index. The index is a
measure of the average price which consumers spend on a
for European countries market-based "basket" of goods
and services and is published by Eurostat to compare
inflation in European countries.
• CPI inflation Slovakia may 2011: 3.92 %
• HICP inflation Slovakia may 2011: 4.13 %
Poverty
• As job creation stagnates and existing jobs are
lost, more people in Slovakia are in material need
and thus represent a drain on the public purse. In
2007, 11% of the population qualified as living in
poverty, with earnings of less than €198 per
month. Those identified as living in material need
(under €185) receive a subsidy that varies
according to the individual’s situation (whether
they have children, etc). This ranges from €60 to
€168 a month.
TAX SYSTEM IN SLOVAKIA
BASIC INFORMATION
• Tax period: calendar year
Income tax (private individuals and legal entities): 19%
Value-added tax (VAT): 19%
Reduced-rate VAT: 10% (levied on medication, selected medical
devices, books)
Special terms apply to excise tax on beer, wine, alcohol, tobacco
and tobacco products, and mineral oils.
Local taxes (paid directly to municipal authorities) are within the
competence of municipal assemblies and are therefore different in
every village and town. Local taxes include: real estate tax; dog tax;
taxes for using public spaces; accommodation tax; vending
machines tax; non-gambling slot machines tax; taxes to drive into
and/or park a motor vehicle in the historical centre of a ity; nuclear
devices tax; local payments for communal waste and small
quantities of construction waste; and motor vehicle tax.
LEGISLATION SLOVAKIA
Constitutional law
• Act of the National Council of the Slovak Republic on the
organization of the Constitutional Court of the Slovak
Republic, on the proceedings before the Constitutional
Court and the status of its Judges
• Act on freedom of religious faith and on the position of
churches and religious societies
• Constitution of Slovakia
• Constitution of the Slovak Republic
Human Rights
• Antidiscrimination Act
LEGISLATION SLOVAKIA
Electoral law
• Act No 331/2003 on European Parliamentary
Elections
• Act on Elections to the Bodies of Self-government
Regions and on Amendment to the Code of Civil
Procedure (2001)
• Act on Elections to the National Council (2004)
• Act on limitation of expenditures of the political
parties on advertising before elections to the National
Council of the Slovak Republic (1994)
• Presidential Election Law of the Republic of Slovakia
(1999)
LEGISLATION SLOVAKIA
Administrative / Public Law
• 466 ACT of 26 June 2002 on Auditors and Slovak Chamber of Auditors
• Act No 129/1998 On Prohibition of Chemical Weapons
• Act No 131/2002 on Higher EducationAct No 198/1994
• Act of the National Council of the Slovak Republic on Military
Intelligence
• Act No 61 / 2000 on adult education and cultural activities
• Act No. 103/2007 Tripartite Act
• Act No. 11/2004 Coll. on Defence Standardisation, Codification and State
Verification of the Quality of Products and Services Intended for Defence
Act No. 110/2004 Coll. on the Activity of the Security Council of the
Slovak Republic at the Time of Peace
• Act on the use of languages of national minorities
Constitutional Act No. 227/2002 Coll. on State Security at the Time of
War, State of War, State of Emergency, and State of Crisis
LEGISLATION SLOVAKIA
Administrative / Public Law
• Act No. 124/1992 Coll. on Military Police
• Act No. 131/2002 of Law Code on Higher Education as amended
• Act No. 172/2004 Coll. on the Transfer of Real Estates Owned by
the Slovak Republic to Municipalities or Higher Territorial Units
• Act No. 319/2002 Coll. on Defence of the Slovak Republic
• Act No. 321/2002 Coll. on the Armed Forces of the Slovak Republic
• Act No. 328/2002 Coll. on Social Security for Policemen and
Soldiers and on Change and Amendment of Some Acts
• Act No. 346/2005 Coll. on State Service of Professional Soldiers of
Armed Forces of the Slovak Republic and on Change and
Amendment of Some Acts
• Act No. 48 of 13 December 2001 on Stay of Aliens an on
Modifications and Amendment of Some Acts
LEGISLATION SLOVAKIA
Administrative / Public Law
• Act No. 480 of 20th June 2002 on Asylum and Amendment of Some Acts
• Act No. 569/2005 Coll. on Alternative Service at the Time of War and State of War
• Act No. 570/2005 Coll. on National Service and on Change and Amendment of Some
Acts
• Act No. 71/1967 Coll. on Administrative Procedures as amended
• Act on Asylum and Amendment of Some Acts (2002)
• Act on Museums and Galleries and on the protection of Objects of Museum Value
• Act on Public Procurement
• Act on Theatrical Activities
• Act on art funds
• Act on libraries
• Act on on the protection of monuments and historic sites
• Act on registration of churches and religious societies
• Act on the state language of the Slovak Republic
LEGISLATION SLOVAKIA
Administrative / Public Law
• Act No. 172/2004 Coll. on the Transfer of Real Estates Owned by
the Slovak Republic to Municipalities or Higher Territorial Units
• Act No. 319/2002 Coll. on Defence of the Slovak Republic
• Act No. 321/2002 Coll. on the Armed Forces of the Slovak Republic
• Act No. 328/2002 Coll. on Social Security for Policemen and
Soldiers and on Change and Amendment of Some Acts
• Act No. 346/2005 Coll. on State Service of Professional Soldiers of
Armed Forces of the Slovak Republic and on Change and
Amendment of Some Acts
• Act No. 48 of 13 December 2001 on Stay of Aliens an on
Modifications and Amendment of Some Acts
• Law on Citizenship (1993)
• Law on Public Defender of Rights
LEGISLATION SLOVAKIA
Criminal Law
• Act 139 Of 2 April 1998 On Narcotic, Psychotropic Substances
And Preperations
• Act On The Treatment Of Precursors Of Narcotic Drugs And
Psychotropic Substances And Amending The Act No.
455/1991 Of The Collection On Small Businesses (Trade Act),
As Amended
Code of Criminal Procedure
Civil Law
• The Act No. 215/1995 on Geodesy and Cartography as
amended by the Act No. 423/2003 Coll.
• The Cadastre Act 1995
LEGISLATION SLOVAKIA
Commercial Law
• Act No 565/2001 Investment Incentives Act
• Act No. 264 of 7 September 1999 on technical requirements
for products and on conformity assessment
• Act No. 276/2001 Coll. on Regulation in Network Industries
and on Amendments and Additions to Some Acts
• Act No. 9 of 2007 on Consumer Protection
• Act on Product Liability 1999
• The Trades Licencing Act
• The Trades Licencing Act
LEGISLATION SLOVAKIA
Labor Law
• Act No 124/2006 Coll. on Occupational Safety and
Health Protection and on the Amendment of
Certain Acts as amended by Act No 309/2007 Coll.
and Act No 140/2008
• Act No. 43/2004 Coll. on old-age pension saving
• Act No. 5/2004 Coll on employment services
• Labour Code - Act No. 348 of the year 2007
• Labour Code - Act No. 348 of the year 2007
• The Act on Illegal Work and Illegal Employment
LEGISLATION SLOVAKIA
Health law
• Act 217/2003 on conditions relating to the placing of biocidal
products on the market
• Act 355/2007 Coll. on Protection, Support and Development
of Public Health and on
• Amendments and Supplements to Certain Acts
• Act 460 / 2007 on the Slovak Red Cross Society and on the
Protection of the Emblem and Name of the Red Cross
Society and on the Amendments of Certain Laws
• Act No 163/2001 on chemical substances and chemical
preparations
• Act No. 576/2004 Coll. On healthcare, healthcare-related
service
LEGISLATION SLOVAKIA
Company law
• Act No. 136/2001 on Protection of Competition
• Act No. 465 of June 20, 2002 on Block Exemptions from the Ban of
Agreements Restricting Competition and on Amendment of Some
Acts
• Act No. 541/2005 Coll. on the Transformation of Certain State
Enterprises into Joint-Stock Companies
• Law concerning the Right of Association (1990)
• Law on Foundations (1996)
• Law on Non-Investment Funds and on Changing and Amending
the Law no. 207/1996 Coll. (1997)
• Law on Non-profit Organisations Providing Generally Beneficial
Services (2002)
LEGISLATION SLOVAKIA
Mining Law
• Act no. 44/1988 Coll. on protection and utilisation of mineral
resources
Insurance Law
• Act No 340/2005 Coll. on Insurance Mediation and Reinsurance
Mediation
• Act No 8/2008 Coll. on Insurance
• Act No. 340/2005 Coll. on Insurance Mediation and Reinsurance
Mediation and on the Amendment and Supplementation of
Certain Acts
• Act No. 381/2001 Coll. of Acts of September 4, 2001 on
compulsory contractual insurance against civil liability in respect
of the use of motor vehicles and on amendments to other related
laws
LEGISLATION SLOVAKIA
Tax law
• Act No. 104/2004 Coll. on the Excise Duty on Wine
• Act No. 105/2004 Coll. on the Excise Duty on Spirit and on amendment
of Act No. 467/2002 Coll. on the production and distribution of spirit into
the market as amended by Act No. 211/2003 Coll.,
• Act No. 106/2004 Coll. on the Excise Duty on Tobacco products
• Act No. 107/2004 Coll. on the Excise Duty on Beer
• Act No. 217/2006 Coll. by which Act No. 104/2004 Coll. on the excise
duty on wine is amended and on amendment and supplement of other
acts
• Act No. 222/2004 Coll om Value Added Tax
• Act No. 222/2004 Coll. on Value Added Tax
• Act No. 533/2005 Coll. by which Act No. 106/2004 Coll. on the excise
duty on tobacco products is amended and supplemented
• Act No. 556/2004 Coll. by which Act No. 105/2004 Coll. on the excise
duty on spirit is amended and supplemented
LEGISLATION SLOVAKIA
Tax law
• Act No. 610/2005 Coll. amending and supplementing Act of the National council
of the Slovak Republic No. 145/1995 Coll. on administrative fees
• Act No. 629/2004 Coll. by which Act No. 104/2004 Coll. on the excise duty on
wine is amended and supplemented in the wording of Act No. 556/2004 Coll.
• Act No. 630/2004 Coll. by which Act No. 107/2004 Coll. on the excise duty on
beer is amended and supplemented in the wording of Act No. 556/2004 Coll.
• Act No. 631/2004 Coll. by which Act No. 106/2004 Coll. on the excise duty on
tobacco products is amended and supplemented in the wording of Act No.
556/2004 Coll.
• Act No. 632/2004 Coll. by which Act No. 105/2004 Coll. on the excise duty on
spirit is amended and supplemented
• Act No. 667/2004 Coll. by which Act No. 98/2004 Coll. on the excise duty on
mineral oil is amended and supplemented
• Act No. 98/2004 Coll. on the Excise Duty on Mineral Oil
• Act. No. 278/2006 Coll. by which Act No. 105/2004 Coll. on the excise duty on
spirit is amended and supplemented
• Amendments to Act No. 106/2004 on the Excise Duty on Tobacco Products 2009
• Income Tax Act 2003
LEGISLATION SLOVAKIA
Banking law
• Act No 186/2009 Coll, on Financial Intermediation and
Financial Counselling and on amendments and supplements
to certain laws
• Act No 43/2004 Coll. on Retirement Pension Saving
• Act No 483/2001 Coll. on Banks,
• Act No 510/2002 Coll. on the Payment System
• Act No 594/2003 Coll. on Collective Investment
• Act No 650/2004 Coll. on Supplementary Pension Saving
• Act No 659/2007 Coll. on the Introduction of the Euro in the
Slovak Republic
• Act No 747/2004 Coll. on Supervision of the Financial Market
• Act No. 530 dated 26 November 1990 on Bonds
LEGISLATION SLOVAKIA
Banking law
• Act No. 566/2001 Coll. on Securities and Investment
Services
• Act no. 431/2002 Coll. on Accounting as amended by Act
no. 562/2003 Coll. and Act no. 561/2004 Coll.
• Deposit Protection Act No 118/1996
• Deposit Protection Act No 118/1996
• Foreign Exchange Act No 202/1995
• General Act on the Euro and Implementing Regulations
• Home Savings Act No 310/1992
• National Bank of Slovakia Act No 566/1992
• Stock Exchange Act No 429/2002
LEGISLATION SLOVAKIA
Communications and Media Law
• Act 147/2001 on Advertising
• Act No. 147/2001 Coll. on Advertising and Change and Amendment of
Some Laws
• Act No. 211/2000 Coll. on free access to information and on
amendments and supplements to certain acts (Freedom of Information
Act)
• Act No. 241 of 30th May 2001On Protection of Classified Materials and
on Amendment of Certain Laws
• Act No. 308/2000 Coll. on broadcasting and retransmission
• Act No. 428 of 3th July 2002 on personal data protection
• Act No. 428 of 3th July 2002 on personal data protection
• Act No. 507/2001 Coll. on Postal Services as amended
• Act No. 610/2003 Coll. on Electronic Communications
• Act No. 610/2003 Coll. on Electronic Communications
• Act on Broadcasting and Retransmission
LEGISLATION SLOVAKIA
Communications and Media Law
• Act on Protection of Personal Data (2002 as amended 2005)
• Act on Required Copies of Periodicals, Non-Periodicals and Audiovisual
Copies
• Act on Slovak Television
• Act on Slovak radio
• Act on the Audiovisual Fund and the amendment of certain acts
• Act on the Conditions of Registration, Public Distribution and Preservation of
Audiovisual Works, Multimedia Works and Sound Recordings of
• Artistic Performances including Amendments and Supplements to some
other Laws (Audiovisual Law)
• Act on the News Agency of the Slovak Republic and on amendment to
certain acts
• Freedom of Information Act
LEGISLATION SLOVAKIA
Intellectual Property Law
• Act No 517/2007 Coll. on Utility Models and on Amendment
of Some Acts
• Act No 55/1997 Coll. on Trademarks as amended by the Act
No. 577/2001 Coll. and by the Act No. 14/2004 Coll.
• Act No 618/2003 Coll. on copyright and rights related to
copyright (Copyright Act)
• Act No. 146/2000 Coll. on Protection of Topographies of
Semiconductor Products
• Act No. 344/2004 Coll. on Patent Representatives
• Act No. 435/2001 Coll. on patents, supplementary
protection certificates and on amendment of other acts (The
Patent Act) amended by the Act No. 402/2002 Coll.
(consolidation)
LEGISLATION SLOVAKIA
Intellectual Property Law
• Act No. 444/2002 Coll. on Designs as amended
• Act No. 469/2003 Coll. on designations of origin for products and
geographical indications for product and on amendment of some
acts
• Act No. 618/2003 Coll. on copyright’s act
• Copyright Act
• Decree No. 117/1997 Coll. implementing the Act No. 55/1997 Coll.
on Trademarks
• Decree No. 350/1991 Coll. on Remuneration of Patent Agents
• Law No. 527/1990 Coll. on Inventions, Industrial Designs and
rationalisation Proposals
• Law on the Protection Rights of New Varieties and Animal Breeds
LEGISLATION SLOVAKIA
Environmental Law
• Act 287 / 1994 on the Preservation of Nature and Landscape
Act No. 163/2001 Coll. on Chemical Substances and Chemical Preparations
Act No. 238/1991 of the Coll. on Waste
REGULATION 1993 on the specification of areas requiring special protection of
the atmosphere and on the operation of smog warning and control systems
Energy law
• Act No 542/2004 Atomic Act
Act No. 656/2004 Coll on Energy and consequential amendments
Act No. 656/2004 Coll on Energy and consequential amendments
Atomic Act 1998
Construction law
• Act No 90/1998 on Construction Products
Act No. 50/1976 Coll. on territorial planning and building order (Building Act)
Act on Authorised Architects and Authorised Civil Engineers as amended
Telecommunications Regulatory
Authority
• Telecommunications Regulatory Authority of the
Slovak Republic (TU SR) is the national regulatory
authority and pricing authority in the sector of
electronic communications. The Office is presided by a
Chairman - Mr. Ladislav Mikuš, who is a statutory body
and is elected and recalled by the National Council
upon a proposal of the Government. The Chairman, in
time of his absence, is deputised by the Vice-Chairman
of the Office - Mr. Juraj Michňa. Besides that, the ViceChairman fulfils tasks assigned by the Chairman. The
Vice-Chairman is appointed and recalled by the
Government.
State administration authorities
• According to the law:
State administration authorities in the area of electronic
communications are as follows:
1. Ministry of Transport, Posts and Telecommunications of
the Slovak Republic,
2. Telecommunications Regulatory Authority of the
Slovak Republic.
State administration authorities
The Authority is the national regulatory authority and pricing authority in
the area of electronic communications which, pursuant to this Act
• Performs regulation,
• Provides for international relations in the field of electronic
communications at the level of regulatory authorities,
• Co-operates with the Ministry in elaboration of the proposal of the
national frequency spectrum table and administers the frequency
spectrum,
• Protects the interests of end users with regard to quality and prices of
services,
• Fulfils obligations supporting competition, development of common
market of the European Union, interests of all persons of the European
Union member states in the territory of the Slovak Republic, access to
networks, interoperability of networks and services and protects freedom
of carrier selection applying technical standards,
• Issues generally binding legal regulations within the limits of this Act,
State administration authorities
• Publishes the Bulletin of the Telecommunications Office of the Slovak
Republic (hereinafter as “Bulletin“),
• Provides for its information obligations toward the National Council of the
Slovak Republic (hereinafter as “the National Council) and the European
Commission,
• Sets payments,
• Leads out-of court dispute resolution,
• Provides information to end users related services, performs users
researches, publishes them and uses them in its activities,
• Fulfils tasks related to limitation of proprietary rights to real estates in
respect of using of real estates for the purposes of service provisioning
and tasks related to limitation of proprietary rights to movable assets by
limitation or ban on using transmitting telecommunications facilities and
lines in times of war or belligerency,
• Executes supervision and imposes sanctions,
• Executes other activities.
Act of the Telecommunications Regulatory Authority of the
Slovak Republic
• Act on Electronic Communications entered into force
on January 2004.
• National Policy on Electronic Communications
• Act No. 610 of 3 December 2003 on Electronic
Communications as amended by Act No. 716/2004
Coll., Act No. 69/2005 Coll. and Act No. 117/2006 Coll.
enter into force on 1 April 2006, apart from provisions
of Section 32, Subsection 22 and 23, which shall enter
into force on 1 January 2007.
• Act No. 654/2007 of 19 December 2007, amending the
Act No 610/2003 Coll. on Electronic Communications
and on Amendments to Certain Acts, as amended
Measures of the Telecommunications Regulatory Authority of
the Slovak Republic
•
•
•
•
•
•
Measure of the Telecommunications Office of the Slovak Republic No. O-1/2004 of April 14,
2004, laying down particulars on certificates of special professional qualification to operate
selected radio devices, on establishing an examining commission, and on the content, scope,
and procedure of an examination
Measure of the Telecommunications Office of the Slovak Republic No. O-2/2004 of April 19,
2004, laying down the tariffs for the right to use frequencies
Measure of the Telecommunications Office of the Slovak Republic No. O-3/2004 of April 19,
2004, laying down tariffs for the use of numbers
Measure of the Telecommunications Office of the Slovak Republic No. O-4/2004 of April 22,
2004 laying down particulars on providing public payphones and services for users with
health disabilities
Measure of the Telecommunications Office of the Slovak Republic No. O-5/2004 of April 22,
2004, laying down particulars on quality indicators and target values, including particulars of
the form, extent, content, and form of disclosure of information
Measure of the Telecommunications Office of the Slovak Republic of July 14, 2004, No. O6/2004 laying down particulars on terms of conditional access to digital television and digital
radio
Enterprise
Starting a business
• According to section 21, subsection (4) of the Commercial Code „ a
foreign person’s authorization to carry on a business activity on the
territory of the Slovak Republic takes effect on the day as of which
that person, or that person’s organizational component, is recorded
in the Commercial Register. Such foreign person is authorized to
engage in the range of business activites specified in its entry in the
Commercial Register. The application for this is filed by the foreign
person concerned.
• According to section 21, subsection (5) of the Commercial Code
„the provision of subsection (4) shall not apply to individuals
(natural persons) who have a permanent residential address in a
member state of the European Union or in some other state of the
European Economic Area, if such individuals carry on business
activity on the territory of the Slovak Republic.
Telephone
• Fixed lines
• Mobile cellular
Fixed lines
•
•
As in most post-communist Central European countries, the fixed line market in
Slovakia was liberalised only recently. Slovak Telecom Inc. (former Slovenské
Telekomunikácie, a.s.) was privatised on July 18, 2000. The 51% package of shares
was purchased by the German Deutche Telecom AG for 1 bln. EUR (more than 44
bln. SKK at that time). The outstanding 49% of the shares are still owned by the
Slovak government through the Department of Transport, Construction and
Regional Development of the Slovak Republic (34%) and the National Property
Fund (15%). As part of the privatisation contract, Deutsche Telecom agreed to
provide full digitalisation of the fixed line network by the end of December 2004.
Slovak Telecom was rebranded to T-Com in the year 2003. The legal regulation for
liberalisation of the Slovak fixed line market was passed in 2002 and became valid
by 1 January 2003, finally allowing competition in the sector of fixed lines.
Currently, there are more than 100 companies licenced to provide public
telephone service in the form of fixed lines,although many of these do not offer
commercial service to the wider public. The most notable country-wide providers
are T-Com, Orange, Dial Telecom, SWAN and UPC. Several regional providers also
operate in the market. Many of these offer triple-play services consisting of a fixed
line service, broadband internet access and access to television programmes. The
number of triple-play customers has doubled since the service was introduced and
currently peaks at 78,049 subscribers.
Mobile cellular
• Mobile communication in Slovakia became first available in the
early 90's with the first NMT network operator being EuroTel
Bratislava, a.s., a subsidiary of the then state owned Slovenské
Telekomunikácie a.s. EuroTel introduced the first GSM service to
public in 1997. EuroTel was privatised together with its mother
company and was rebranded to T-Mobile on May 3, 2005. It is now
fully integrated in the international T-Mobile brand. The second
GSM network operator started its operation on January the 15th
1997 under the name GlobTel a.s. It was acquired by France
Telecom and rebranded to Orange Slovakia on March 27, 2002.
Telefonica O2, the third mobile operator in Slovakia, entered the
market in February 2007 under the O2 brand. Recently virtual
providers became active in the Slovak market, the most notable of
them being Tesco Mobile (associated with Tesco Stores) and FunFón
(a virtual operator associated with a popular FM radio station).
Key figures of the mobile cellular
sector
• Total number of active mobile
subscribers: 5,707,534
• Density of mobile subscribers: 105.12 per
100 inhabitants
• Coverage of land – GSM: 95.9%
• Coverage of population - GSM: 99.6%
T-Mobile
• T-Mobile International AG is a Bonn, Germany
based holding company for Deutsche Telekom
AG's various mobile communications
subsidiaries outside Germany. Subsidiaries of
T-Mobile International operate GSM and
UMTS-based cellular networks in Europe, the
United States, Puerto Rico and the U.S. Virgin
Islands. T-Mobile International has financial
stakes in mobile operators in both Central and
Eastern Europe.
T-Mobile
• The T-Mobile brand is present in ten European countries -Austria, Croatia, Czech Republic, Hungary, Macedonia,
Montenegro, the Netherlands, Poland, Slovakia and the
United Kingdom -- as well as the United States, Puerto Rico,
and the U.S. Virgin Islands.
• The T-Mobile brand has not been used in Germany since 2010
and may disappear from the United States, Puerto Rico and
the U.S. Virgin Islands if AT&T Inc.'s proposed purchase is
approved by the FCC.
• Globally, T-Mobile International subsidiaries have a combined
total of approximately 150 million subscribers, making TMobile International the world's tenth largest mobile phone
service provider by subscribers and the third largest
multinational after the United Kingdom's Vodafone and
Spain's Telefónica.
Orange Slovensko
• Orange Slovensko is a member of the global communications group
Orange. The Orange Group operates in 19 countries of the world and
currently serves almost 172 million customers. Orange owns majority
shares in France, the United Kingdom, Belgium, the Netherlands,
Switzerland, Romania, Denmark, Slovakia, Ivory Coast, Dominican
Republic, Cameroon, Botswana, Madagascar, Moldova and Spain
(previously Amena). It holds minority shares in Portugal, Austria, Thailand,
Egypt, Poland and Lebanon. Orange SA is a wholly owned subsidiary of the
French telecommunications giant France Telecom.
• Since 27 March 2002, the operator has been providing services under the
Orange brand name and from this date company's business name is
Orange Slovensko, a.s.
• The company operates a countrywide network covering 99% of the
population and 2,830,000 active customers and is by far the most
successful telecommunications company in Slovakia.
• Orange SA, whose majority owner is France Telecom, now owns a 100%
stake in Orange Slovensko.
Orange Slovensko
• Orange Slovensko is a mobile operator company, however
now also offering fibre connections, operating in Slovakia
since 15 January 1997 (previously named Globtel), when it
became the first mobile operator in Slovakia to operate the
GSM digital mobile network at the 900 MHz frequency. On
15 November 1999, the company launched the commercial
operation of the mobile network in the 1800 MHz
frequency band. It is also the first company to cover more
than 66% of the country with 3G HSDPA high-speed
internet with the maximum speed of 14.4 Mbit/s, planning
the HSPA+ upgrade to the maximum of 28.8-42.2 Mbit/s by
2012. The operator plans to commercially operate LTE
network by the end of 2012.
O2 (Slovakia)
• Telefónica Slovakia (stylised as Telefónica
Slovakia) is a provider of mobile service O2 in
Slovakia. Telefónica started in Slovakia with
commercial services on 2 February 2007 with
about 600.000 preregistered users, and ~400,000
Slovaks actively using the O2 service. The
operator has 781,000 active SIM cards (3 month
activity) to date 30 September 2010. The
company is subsidiary of Telefonica O2 Czech
Republic, part of the Spanish group Telefonica
Europe.
Telephone system
• International:
– country code - +421
– There are three international exchanges, one in Bratislava and two
in Banska Bystrica
• Emergency calls:
– 122- EU standard integrated emergency service (one nation-wide
callcentre directly connected to police, EMS, firefighters, Mountain
Rescue Service and others)
– 158 - direct callcentre - Police
– 155 - direct callcentre - EMS (features doctors available for
consultations online)
– 150 - direct callcentre - Firefighters
– 18300 - direct callcentre - Mountain Rescue Service
Radio and Television
• Radio broadcast stations:
• AM 15, FM 78, shortwave 2 (1998) Radios:
3.12 million (1997) ТV
• Television broadcast stations:
• 6 national broadcasting, 7 regional, 67 local
(2004) Televisions: 2.62 million (1997)
Internet
• Slovakia currently has a large number of fullarea ISP's that offer wired broadband internet
connections. Most notable of them include TCom, T-Mobile, Orange Slovensko and UPC.
They offer a range of connections, from ADSL /
ADSL2+ to "Fibernet". ADSL or ADSL2+ is
available in almost every town in Slovakia.
Key figures of the internet sector
•
•
•
•
•
Internet country code (TLD): .sk
Number of host computers: 962,778
Number of host computers: 962,778
Number of Internet subscribers: 2,539,672
Density of Internet subscribers: 46,77 per 100
inhabitants
• Internet Service Providers (ISPs): 864
Invest in Slovakia
Facts:
• Foreign investors investing in Slovakia can greatly benefit from the Strategic
geographic location of the country. Since the country is located at the center of the
European continent, investors can have easy access to other important business
centers in the European Union and expand their business operations.
• Slovakia has plenty of highly qualified and technically skilled laborers. Foreign
investors investing in different sectors in the country can get the man power at
very cheap rates.
• Slovakia has the unique distinction of being the country which has a very low cost
of living as compared to other countries in the European Union.
• Slovakia has promise for tremendous growth in the prospective years.
• Since 1st January, 2009 when Slovakia joined the ranks of other member countries
of the European Union to accept Euro as its currency, the risk of loss in business
due to difference in the currency exchange rates is negligible. Euro is a strong and
globally accepted currency. This is greatly beneficial for foreign investors investing
in the country.
Invest in Slovakia
• Strong Points (main advantages) are:
- A strategic geographical position: the country is situated
in the center of Europe;
- A workforce that is inexpensive and well qualified;
- its advantageous tax system, with a single tax rate of
19%;
- The existence of several financial aids favoring foreign
investment and can range from 20 to 50% of investment
costs, depending of the projects;
- A large growth potential;
- The adoption of the Euro since January 1st, 2009, which
has made disappear the risks of foreign exchange;
- A low cost of living in relation to the rest of Europe.
Invest in Slovakia
• Weak Points (weak points) are:
- Important technical and administrative barriers:
requirement of import licenses especially for raw
materials, energy and some agricultural products;
- High energy costs: Slovakia must import 90% of its
energy needs.
- Deficient infrastructures. Although, governmental
reforms have been set up, the infrastructures are not
yet well developed and the country has no access to
the sea.
- The small size of its domestic market with a
population that has a low purchasing power.
Invest in Slovakia
• Government Measures to Motivate or Restrict FDI The
Slovak government encourages foreign investment,
since it is one of the main driving forces of the
economy. It has also established financial incentives
such as tax credits and subsidiary systems. These aids
are granted depending on the type of project,
geographical location and the sector of activity.
The country's low tax rate is one of the key elements
that attracts FDI. Slovakia also benefits from European
financial aids and many investors can benefit of the
large renovation and modernization projects of the
country.
FDI in Figures
• Foreign direct investment (FDI) has increased
considerably over the last few years. In 2008, it
represented almost USD 3.5 billion. With the
privatization of the banking, energy and
telecommunications sectors, the flows of foreign direct
investment (FDI) have largely increased. Many foreign
investors were able to incorporate themselves into the
companies previously associated to the public sector.
This is the case of large firms such as PSA and Hyundai
who are installed directly in the country.
• According to a recent study done by the German-Slovak
Chamber of Commerce and Industry, Slovakia appears as
a very attractive country to foreign investors.
Starting a business
There are four types of companies that can be
established in the Slovak Republic:
• Spoločnosť s ručením obmedzeným (Limited Liability
Company), official abbreviation: (s.r.o. or spol. s r.o.)
• Akciová spoločnosť, (Joint Stock Company) official
abbreviation: (a.s. or akc. spol.)
• Verejná obchodná spoločnosť (General Commercial
Partnership) official abbreviation: (v.o.s. or ver.obch.
spol.)
• Komanditná spoločnosť (Limited Partnership) official
abbreviation: (k.s. or kom. spol.)
Limited Liability Company
• The most common type is the Limited Liability
Company.
• A limited liability company (hereinafter the
“SRO”) may be established by one or more
founders (up to 50), either legal or natural
persons, irrespective of their nationality. A
limited liability company having one partner
(shareholder) may not be the sole shareholder of
another limited liability company. This rule
applies also to foreign entities.
Starting a business
• The minimum registered capital in the SRO is EUR 5,000 and
minimal contribution of a partner (shareholder) is at least EUR 750.
• The registered capital must be paid up within the time period set
out by the Foundation Deed, however at the latest within five years
from the date of incorporation. If the company is founded by a
single founder, 100% of the registered capital must be paid before
the incorporation. It can be contributed in kind or in cash.
• The contribution to the registered capital is not required to be tied
in the company’s bank account during the whole existence of the
company but may be used for activities of the company.
• The limited liability companies are obliged to have a reserve fund in
the amount of 10% of its registered capital. It is not necessary to do
so immediately at the time of company establishing, but in the year
in which a company records its first profit.
Reference
• http://en.wikipedia.org/wiki/Demographics_of_Sl
ovakia
• http://en.wikipedia.org/wiki/Telecommunications
_in_Slovakia
• http://spectator.sme.sk/articles/view/34518/16/t
ax_system_in_slovakia.html
• http://www.teleoff.gov.sk/index.php?ID=248
• http://www.egypt-importexport.com/en/countryprofiles/slovakia/investing2
THANK YOU FOR YOUR
ATTENTION