Italy
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Italy |
 Historical
and juridical viewpoint
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I - Historical
and juridical viewpoint At the beginning of 1996, the status of liberalisation of the telecom sector included:
Four important EC Directives on the liberalisation of alternative infrastructures and voice telephony remained to be implemented. In 1997 and 1998, a considerable progress has been made: the telecommunication services, including the supply of fixed public voice telephony services, and the operation of networks to support the provision of such services have been fully liberalised and opened to competition on January 1, 1998. Major regulatory events have taken place :
More recently, in November and December 1998, two important provisions have been announced:
The above mentioned laws and measures aim at
Other major steps forward the realisation of the efficient evolution of the Information Society have been the reduction of charges for the access to Internet and, on the other side, the implementation of the Law on privacy and personal data protection which aimed at ensuring proper use of such data. However, some key points still need to be fully defined or implemented. A decree on "Urgent dispositions for the exercise of radio-TV-activities" was converted in law (n.650) in December 1996. This law, called "regolamenti di attuazione", stresses that the installation, management and supply of telecom networks and the provision for telecom services are activities of public interest; they must be carried out in a competitive and open market; respecting the following principles :
There are no more restrictions to the installation, management and resale of capacity on telecom networks nor cable networks nor infrastructures for mobile services. The provision of all telecom services (excluding voice telephony and the installation of public telecommunication networks) is subject only to a general authorisation to be requested to the new Authority. On the other hand, individual licences issued by the Authority are required for the installation of telecom networks, wired and wireless, and the provision of voice telephony. Licences must be released on the basis of objectivity and non-discrimination. After January 1st 1998, new operators must either supply universal service (voice telephony, fax group III, data transmission via modem and wired public telephony) in the area where they are active, or pay a contribution to a Universal Service Fund. In principle, operators should negotiate between themselves on interconnection charges; if they cannot reach to an agreement, the Authority acts as an arbitrator and can impose its decisions. Tariff rebalancing – to achieve a cost-based tariff structure – must be gradually accomplished within December 31st 2000. 2. Telecom Holding Stet Privatisation The merger between Stet and Telecom Italia has been approved by the stakeholders at the end of April 1997, the merger being effective from July the 15, 1997. Then, the State share of the capital will fall from 61,3% to 44,7%. Telecom Italia will be merged into Stet and its operating licence is devolved to it. The new Stet however will assume the brand name of Telecom Italia. The Treasury Minister Ciampi hopes to sell, by the end of the year, part of the remaining public share of STET capital, completing the privatisation. 3. Law on Privacy and Personal Data Protection The approval of the Law on Privacy and Personal Data Protection – n.675 , on December 31st 1996 is important for the Information Society. The main principles are that personal data elaboration and storage on electronic databases must be managed respecting fundamental individual rights and freedoms, dignity and privacy protection, and respecting organisations rights. In case of misuse or intrusion, the database responsible is guilty unless he/she can prove that all appropriate security measures had been taken. The rather unforgiving approach has been widely criticised and it is possible that the Law will be partly modified to allow greater flexibility. The law became effective on May the 8th 1997. 4. Mobile Communication services liberalisation On May 1st 1997, the Government issued the decree n. 115 on "Urgent disposition to receive the Directive 96/2/CE with regard to mobile and personal communications". The Directive 96/2 modifies the 90/388 with respect to personal and mobile communications. The decree was then converted into law n. 189 of July 1st- 1997. The amended text approved by the Chamber provides:
The above mentioned Regolamento, necessary for this law to become effective, was finally issued as decree n. 318 on September 19, 1997. On June the 3rd, 1997, the Minister has issued a Decree modifying the national frequencies plan. The frequencies assigned to the GSM service will have to be shared equitably between TIM and OMNITEL. Analogue mobile services will operate until 31 December 2005. On June 24, Italy was admitted to the Schengen Information System with effect from October 26th 1997. 7. Establishment of "Autirotà per le Garanzie nelle Comunicazioni" (Telecom and Media Authority) On July 31st , the Law n. 249 for the establishment of the Media and Telecom Authority was approved. The new Authority is competent both for telecoms and the radio-tv sector. With respect to the audio-visual market, the new authority holds also antitrust competencies: it investigates the existence of dominant positions and authorises the transfer of property of audio-visual companies. The Authority assigns frequencies, fixes decoder standards, defines transparent and objective principles for interconnection and access to telecommunication networks and it settles controversies concerning the above mentioned issues. The Authority also defines which operators must undergo universal service obligations. The Law determines that:
The law also provides that RAI and Telecom Italia can jointly participate in a single digital platform for the broadcasting of digital signals, via satellite or cable, and for the broadcasting of encrypted analogue terrestrial signals. A single undertaking cannot hold more than a single TV license on terrestrial frequencies for national broadcasting of encrypted signals. The law fixed the deadline of 30/4/98 for the granting of the terrestrial licenses to private TV channels, after the issuing of a national plan for frequencies. The plan was actually issued in December 1998. Concerning interconnection agreements, the law accepts the principle established in EC legislation that they must be based on the direct negotiation between operators, but basic principles and general conditions are fixed by the Authority. The Authority also intervenes to arbitrate when operators cannot reach an agreement. 8. Implementation measures of Directives 95/51/EC, 96/2/EC, 96/62/EC, 96/19/EC The Decree n. 318 on the "Regolamenti di attuazione" was issued on September 19th 1997. 9. Internet access charges reduction At the end of October 1997, the Ministry of Post approved a decree providing Internet access costs reduction for residential users, schools and non profit organisations. The decree came into force on January the 1st, 1998 and provides a 50% reduction on local calls to predefined numbers. 10. Licenses assignments for DECT The Ministry of Post issued a decree providing the issuing of individual licensing for liberalised telecommunication services. Telecom Italia has been authorised to commercialise its DECT city-service "Fido", which constitute a wireless extension of fixed network telephony. There are a dozen of other operators that submitted demand for DECT licenses. The rules of October 1997 fix the electronic document requirements, the validity, the conditions of issuing and the cryptography; they became effective in March 1998 (Decree n. 513). However, the digital signature will be fully effective only after the drawing of the technical rules. On November 25 1997, the Minister Decree fixing the conditions for the granting of individual licenses in the telecommunication sector was issued. The companies that have been granted, so far, a license for the construction of fixed infrastructure and the provisioning of vocal fixed telephony are: Infostrada (Olivetti-Mannesmann), Wind (Enel-France Telecom-Deutsche Telekom), Albacom, Autostrade. On February 19 1998, the Minister of Communication has established the end of exclusive rights of the incumbent operator also in the mobile telephony sector: Starting that date, mobile operators are allowed to use alternative carrier to redirect national and international calls. 13. Third mobile operator license On February 26 1998, the Italian Parliament approved the law ("Disposizioni urgenti nel settore delle comunicazioni radiomobili") allowing for experimentation of DCS 1800, fixing the asymmetries that favour the market entry for the third mobile operator. On June 10th, the third license as mobile operator (DCS 1800) was assigned to Wind (51% Enel, 24,5% France Telecom, 24,5% Deutsche Telekom). The beginning of the services is fixed for March 1999. The third operator will not have any geographic coverage requirement and will be allowed to roam over the national networks of the two incumbents. 14. Universal Service Provision The Decree regulating the universal service provision was issued in May 1998.It fixes the set of rules but it delegates to the Authority the duty of determining the charges and the compensations amongst operators. For the moment, however, the universal service provision will remain a duty of Telecom Italia, while the other operators will participate to the funding of the service in accordance to their turnover. A decree was approved and fixed the new deadline of the National Frequency Plan on January 31st - 1999. The decree also receives some rules about advertisement from Directive 97/36 (Television Without Frontiers) and fixes the ratio of European production in programs scheduling and the investment and provides a minimal turnover each broadcaster will have to invest in European production. Since July 1, the new services of fixed telephony are being provided by Albacom and Infostrada. 17. Start off of the activity of the "Autorità per le Garanzie nelle Comunicazioni" In July 1998, the Authority started its activity by replacing the Ministry of Communication as for the regulation of the sector. An agreement has been signed between the two parties defining the competencies. On July 24 1998, Telecom Italia presented its request for interconnection charges to be applied to the new comers, according to the decree fixing the economic and regulatory principles for the calculus of interconnection charges between ex-monopolist's networks and incumbent. The decree had been published on June 10. An agreement had already been reached with Albacom and Infostrada, whose offer of fixed telephony services started on July 1st. The interconnection charges published raised criticisms and their definition was delayed. II - Changes and adjustments over the last three months (October- December 1998) On October 30, 1998, the Authority issued the "Piano Nazionale di assegnazione delle frequenze per la radio diffusione televisiva" (n.68/98). The plan only concerns television, while the assignment of frequency for the radio sector has been postponed. According to it, the frequencies are assigned on regional basis and are expected to reach 92% of population by covering 80% of the whole national territory. All the plants covering the same area will be located in one site. The reduction of the number of sites will determine additional operational costs but will then support the planning of digital terrestrial television. The main changes introduced by the plan are:
In November 1998, the Authority issued a resolution concerning the interconnection charges. This resolution forces Telecom Italia to define, within one month, the revised charges to be applied to the new comers. Besides cost reductions, that the new operators can transfer to customers, also some technical barriers are going to be removed through this resolution. The Authority, in fact, decided to allow the interconnection even for those operators who do not have their own network infrastructure. In December 1998, RAI entered Tele+. A "memorandum" was signed which states that the RAI share of the capital will be 10% in five years. The remaining 35% will be acquired by other national partners, among which Wind (the joined venture between Enel, France Telecom and Deutsche Telecom) declared their interest in the initiative. At the same time, Telecom Italia is negotiating an agreement concerning the digital platform of Stream (presently 100% controlled by Telecom Italia). to reduce the share in Stream to 20%, while BskyB, (the British pay TV owned by the media tycoon R. Murdoch) is supposed to acquire the control of the company, with Tf1 keeping 10% of the stock. The negotiation will come to an end provided the possibility to acquire the rights for the transmission of football matches. It is a common think that without such an opportunity, the second pay Tv has scarce possibility to compete with Tele+. Presently, the main issues are:
In addition to this reduction of charges, another initiative will help the diffusion of the use of the Internet and open the market to effective competitiveness, the so called "numeri azzurri" i.e. ad hoc numbers for Internet service providers. These numbers assure the same connection cost regardless the location of the user. The proposal of law concerning the reform of the Communication Sector (Ddl 1138) seems now closer to a definition after a standstill. The Ddl addresses as major issues: advertising crowding, share of Italian production in broadcasting, local and non profit broadcasters, structure of RAI and open decoders. |
