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3) evaluation of possible amendments <strong>to</strong> the regulation of the copper wire sub loop unbundling service<br />

in the light of the possible introduction of vec<strong>to</strong>ring technology on FTTCab-VDSL accesses.<br />

Wholesale mobile markets<br />

Termination on the mobile network<br />

In November <strong>2011</strong>, the Regula<strong>to</strong>r issued its final recommendation (Decision 621/11/CONS) on<br />

wholesale pricing for voice termination rates on the single national mobile networks. The new glide path,<br />

based on six-monthly rather than annual changes, starts from July 1, 2012 and ends on July 1, 2013,<br />

with the application of a termination price which is symmetrical for all mobile opera<strong>to</strong>rs of<br />

0.98 €cents/minute.<br />

Voice termination on mobile network<br />

€/cents/minute<br />

Price from<br />

July 1, <strong>2011</strong><br />

New glide path<br />

From<br />

July 1 2012<br />

From<br />

January 1 2013<br />

From<br />

July 1 2013<br />

Termination on H3G network 6.3 3.5 1.7 0.98<br />

Termination on TI, Vodafone & Wind networks 5.3 2.5 1.5 0.98<br />

Retail fixed markets<br />

Retail charge<br />

Beginning July 1, <strong>2011</strong>, a rate adjustment was made which consists of increasing the price of the RTG<br />

charge for Consumer clientele from 16.08 euros/month (including VAT) <strong>to</strong> 16.64 euros/month (including<br />

VAT). The last variation of the Consumer charge was made on February 1, 2009. In line with the new<br />

charge and with AGCom regulations concerning special economic treatment, the RTG charge was<br />

modified for the less affluent classes from 8.04 euros /month (including VAT) <strong>to</strong> 8.32 euros/month<br />

(including VAT). The ISDN charge and all the charges for Business connections have instead remained<br />

unchanged.<br />

Local, national and fixed-<strong>to</strong>-mobile retail traffic<br />

Beginning July 1, <strong>2011</strong>, a new rate maneuver came in<strong>to</strong> effect for national calls from the fixed line<br />

network which provides for a different breakdown of the plans according <strong>to</strong> the particular clientele<br />

segment. For the Consumer clientele, the Ora Gratis (free hour) for local calls and the Mezz’Ora Gratis<br />

(free half hour) for long-distance calls was eliminated, while at the same time the pricing scheme was<br />

simplified by introducing a flat rate (no longer differentiated by the time frame). Specifically, the new<br />

prices are equal <strong>to</strong> 0.71 €cents/minute (including VAT) for local calls and 5.04 €cents/minute (including<br />

VAT) for long distance. For both types of traffic, the set-up charge for each call is unchanged at 7.94<br />

€cents (including VAT). As regards the Business clientele, the Ora Gratis has been eliminated for all local<br />

calls (Mezz’Ora Gratis for long-distance calls had never been introduced for this type of clientele) while<br />

domestic traffic rates (local and long-distance) have remained unchanged (including the breakdown by<br />

time frame).<br />

Ultra-Broadband offering<br />

In order <strong>to</strong> guarantee the commercial start-up phase of <strong>Telecom</strong> <strong>Italia</strong>’s retail optical fiber offering, in the<br />

transition period until completion of the regulation of NGANs, AGCom, with Decision 61/11/CONS<br />

concerning <strong>Telecom</strong> <strong>Italia</strong>’s retail offering, has imposed the following conditions: (i) <strong>Telecom</strong> <strong>Italia</strong> may<br />

only offer the service in those cities in which NGAN services are already being offered by alternative<br />

opera<strong>to</strong>rs (Milan, Rome, Turin, Naples, Genoa, Bari, Bologna); (ii) the number of cus<strong>to</strong>mers that can be<br />

activated by <strong>Telecom</strong> <strong>Italia</strong> is set at a maximum of 40,000; (iii) the formulation of a wholesale offering<br />

for the resale of ultra-broadband services must be based on the retail minus principle.<br />

<strong>Report</strong> on Operations The Business Units of the <strong>Telecom</strong> <strong>Italia</strong> Group – Domestic 56

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