Fixed telecommunications in Italy

Retail fixed markets

By resolution 379/09/CONS dated July 9, 2009, AGCom submitted the deregulation of the retail markets of international calls from a fixed location for public consultation and notified the European Commission. The
European Commission did not raise objections and, consequently, by the end of the year AGCom’s final decision will be published confirming the consultation document.
In July 2009, another conclusion was reached on the public consultation begun by AGCom, under resolution 315/09/CONS, on the proposal for the deregulation of the retail market of rented lines that will be communicated to the European Commission in November. The Commission’s opinion and the publication of the final measure are expected by the end of the year.
Last September 20, by Resolution 525/09/CONS, AGCom began a public consultation on the subject of the proposal of the Measure inherent to the definition of the regulatory obligations relative to the retail and wholesale access markets. In reference to the retail access market, the Authority proposed a series of measures for the purpose of reducing regulatory pressure on the retail markets and, in particular, a proposal was put forth to revoke the application of the price cap mechanism used for controlling residential and business subscriber charges. A proposal was also put forward to keep Telecom Italia’s obligation to provide Wholesale Line Rental service only in the areas where disaggregated access services are not offered, with a price calculated according to the Network Cap method instead of the current retail-minus regime. The consultation will end this November 2 and it is believed that the final measure will be published by the end of 2009.

Wholesale fixed markets

Under the same Resolution 525/09/CONS, AGCom confirms the current regulatory system relative to thewholesale access obligations to the copper infrastructure (unbundling and bitstream) whereas, with regard tothe determination of prices, it proposes the change to a network cap mechanism in place of the currentorientation to cost. Furthermore, Resolution 525/09/CONS proposes some obligations for the access market tothe new generation networks and, in particular, for access to dark fiber and infrastructures.

Broadband access services (Bitstream)

The Bitstream Reference Offer for 2009, published by Telecom Italia on June 18, 2009, under which Telecom Italia reduced the monthly charge for ADSL access from 8.50 euros/month to 8.07 euro/month, is awaiting approval by AGCom.