EESTI TELEKOM

ANNOUNCEMENT



AS EMT EXPLANATION TO THE LETTER OF  COMMUNICATIONS BOARD



AS  EMT  explanation:  On 30th May 2001 Communication  Board

delivered to AS EMT the letter setting out the following:



“Competition  Board presented by its letter No.  6-1/426  of

21.05.2001 to Communication Board its resolution No. 24-L of

21.05.2001   according  to  which  EMT  is  an   undertaking

dominating  the  mobile  phone  services  market  since   it

controls  over  40  per cents of the turnover  of  the  said

market and its dominating position enables it to operate  in

the  market  to  an  appreciable  extent  independently   of

competitors.”



Proceeding  from  the Competition Act, the determination  as

undertaking  dominating  the  market  does  not   mean   the

determination as undertaking with significant  market  power

pursuant  to  Telecommunication Act.  Telecommunication  Act

sets  out  the  uniform  procedures  for  determination  the

undertaking  with  significant  market  power   within   the

telecommunication services market or markets.



Communication  Board has not determined EMT  as  undertaking

with  significant  market  power  in  accordance  with   the

procedures prescribed for by Telecommunication Act.



Since the undertakings are determined as such of significant

market power only within a concrete market of services  with

their market share of at least 25 per cents, then a concrete

market of services shall be firstly determined, within which

EMT  is  an undertaking with significant market power.   For

this  reason EMT is planning to meet the representatives  of

Communication  Board  in  order  to  discuss  within   which

concrete market of telecommunication services EMT meets  the

criteria  of an undertaking of significant market power  and

which  additional  liabilities the said  status  will  bring

about to EMT within such concrete market of services.





Hille Võrk

Financial manager

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