Letter to Paolo Gentiloni


The Anti Digital Divide Association has sent me this letter.
Iím publishing it and Iím asking the employee Minister of Communications, Paolo Gentiloni to write to this blog to give his evaluation of the dismemberment of the Telecom Italia network. A dismemberment thatís necessary to introduce into Italy a market that is out of the control of the existing monopoly of the unhappy Tronchetti.
Gentiloni has a blog and he has inserted in his Blogroll a link to this site. I thank him for that and for the response that he will surely give.

ďThe illicit data intercepts operated by Telecom Italia to the detriment of alternative operators and thousands of users, confirm that the Telecommunication market in which there is not the presence of effective competitors nor effective rules to defend users and alternative operators from possible abuses.

What is clear is that we are faced with serious questions, both for the aspect of the violation of the regulations about competition, as well as the issue of intercepts. It thus seems evident that policies that have so far been put into practice, to guarantee a Telecommunication market the principles of correctness and transparency have been flawed or at least not sufficiently appropriate.

The decision by a single accounting division in Telecom Italia, to guarantee the respect of competitors, has been shown to be completely inadequate. The procedures for sanctions have also not been effective to stop the incorrect conduct of the incumbent. Incorrect competition tactics have been used constantly by Telecom Italia for years and so it is possible to explain them. One of the incorrect tactics is the exclusion of competitors from a new market. The most recent example, happening a few days ago, with the violation of the judgement 34/06 and the attempt to prevent access to Telecomís new IP(ADSL 2+) network by its competitors.

It is thus clear that serious measures must be taken so that the market can finally be liberalised and so that real competition can be guaranteed. A necessary condition for this to happen is the dismemberment of the Telecom Italia network. This has been called for in the past by Mario Monti the former president of the European Antitrust body, by Giuseppe Tesauro the former president of the Italian Antitrust body, by illustrious economists, by the Corte dei Conti and in 2001 by Gasparri, but ďstrangelyĒ this has never happened. Thus Telecom Italia must be divided into 2 distinct companies following the English model, one that is concerned with the network and the wholesale market, with tariffs that are the same for all operators. The other selling retail services, services that it would buy at the same conditions as its competitors from the first company.

Another fundamental action to be taken is to make the ďlast mileĒ and telephone switchboards to be state property. One talks only of twisted pairs and telephone exchanges, thus the transport network would remain the property of Telecom, just as all the apparatus in the exchanges and the new networks constructed by the incumbent. All the current clients would still be Telecomís. However what would pass to the State would be the exchanges, the twisted pairs and the obligation to provide a universal service.

All the operators, under the same conditions, would pay the wholesale prices for the fixed line costs to the State and the price should be fixed using calculations based on the cost plus method, that is based on effective costs of supplying the access service. In this way, the operators who have invested in the construction of proprietary access networks would have an advantage and there would be an incentive for all the operators to invest in their own infrastructure. This would bring ample benefits to the users, who would have a greater possibility of choice, with lower costs and a higher quality of service. Naturally Telecom would continue to have to be notified as the dominant operator at least while its market share is above 50%.

For some time now, ADD has been fighting for the dismemberment of the network, following the recent happenings which involve Telecom Italia that show up the inadequacy of the actions that up until now have been taken, by the guaranteeing Authorities. We believe that this decision can no longer be put off. Challenges, fines, accounting divisions of Telecom Italia have not been effective in getting respect for the regulations for competition. This is why Anti Digital Divide has written to AGCOM but thereís been no response. Thus the AIIP, the providersí association has presented a case to TAR {Tribunali Amministrativi Regionali= Regional Administrative Tribunal} asking for the respect of the 34/06 judgement.

In the next few days, we will write to the guaranteeing Authorities and to the new Minister of Communications, Paolo Gentiloni, to ask that these provisions be put into effect. The complete ADD document can be viewed at this address.

Anti Digital Divide Association

Posted by Beppe Grillo at 08:18 AM in | Comments (2)
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vorrei sapere se ci sono media attivisti che si occupano della riforma della televisione. qualche suggerimento? c'e` tanto interesse a proteggere il web, ma scarso interesse, mi pare, arendere piu` democratica la comunicazione televisiva. perche`?

Posted by: Cinzia Padovani | October 22, 2007 11:21 PM

Tronchetti Provera is the small trunk of the unhappiness

Anti Digital Divide Rulezzz

Posted by: Tommy lee | June 5, 2006 06:47 PM

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