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computation of the fee. Telecom Italia has therefore received a demand from AGCom for payment of an
amount of 26.6 million euros for fees not paid for the five-year period 2006-2010. Telecom Italia has
challenged this demand before the TAR of Lazio and the court has ordered the suspension of the
payment demand pending settlement of the case. The case was examined by the TAR at a hearing held
on December 13, 2011; the court’s judgment is expected to be delivered.
On March 3, 2011, Decision 599/10/CONS was published relating to the annual fee for the contribution
towards AGCom’s operating costs for 2011, in which AGCom raised the quota payable from 1.5‰ to
1.8‰ of 2009 communications sector revenues. On April 30, 2011 Telecom Italia made a conditional
payment of an amount of 24.2 million euros, computed on a basis consistent with the Company’s
submission challenging Decision 99/11/CONS and at the same time challenged Decision
599/10/CONS before the TAR of Lazio with regard both to the increase in the fee percentage and the
extension of the accounting items to be included in the chargeable base. This dispute was examined by
the court at the December 13, 2011 hearing together with that concerning the challenge to Decision
99/11/CONS.
Mobile Number Portability (MNP)
On January 7, 2011, AGCom Decision 147/11/CIR was published concerning the “Revision of the norms
for mobile number portability – approval of the regulations”. Among other things the Decision provides
that:
• MNP must be implemented by 8.30 am on the second working day following the day on which the
customer’s request was input to the recipient operator’s system;
• the recipient operator must compensate the customer, on request from the latter, for any delay in
the activation of portability of the number, with an indemnity of at least 2.5 euros per day for each
working day of delay up to a maximum amount of 50 euros. The indemnity is not due for delays of
up to two working days; for delays in excess of two working days the indemnity is computed for all
the days of delay including the first two;
• the personal data of the customer requesting MNP must be handled by the donating operator with
the maximum confidentiality and be used exclusively for the purposes of performing the service.
Calculation of the net cost of the Universal Service
With Decision 153/11/CIR of December 12, 2011 AGCom concluded the process of valuing the net cost
of the Universal Service for 2004. In particular, the Regulator approved the application of the allocation
mechanism and determined the net cost for 2004 in the aggregate amount of 25.9 million euros.
The contribution quota due by the other operators (Vodafone, Wind, Fastweb, Tele tu and BT Italia)
amounts to 8.7 million euros.
Decision 153/11/CIR also authorizes the initiation of work on the verification of the net cost of the
Universal Service for the year 2005 and requires Telecom Italia - by January 25, 2012 - to submit the
new valuation of the 2005 net cost.
Competition
The market
Strong competitive pressure in the Italian telecommunications over the years has led to an ongoing
impoverishment of the traditional components of service, particularly voice service.
In this context, the key element in the evolution of the market has been the increased penetration of
broadband, first fixed and now also mobile, and above all greater penetration of new generation
handsets.
At the same time, the evolution of the competitive scenario continues to veer towards a situation of
increased complexity, with more interrelationships between players of different markets, opening the
field to the competition of non-traditional operators, particularly OTTs (Over the Top) companies and
producers of electronic and consumer devices), as well as giving telecommunication operators the
possibility of developing new so-called “network based” services (mainly in the IT and Media fields)
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