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Communications Regulatory Authority

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Imposing on the notified operator to provide the WLR service in areas where<br />

unbundling has not been developed yet is considered by AGCOM as the necessary<br />

factor for competitors to be able to climb the so-called ladder of infrastructural<br />

equipment and achieve even higher infrastructure levels. By shaping the obligation<br />

according to the level of development of the unbundled access to the local loop, the<br />

WLR service is assured not to be in conflict with the unbundling service, in the sense<br />

that WLR shall not prevent the latter from developing, so discouraging investments by<br />

alternative operators.<br />

On the other hand, taking account of the innovative nature of the WLR, under<br />

article 21 of said resolution AGCOM has provided for the setting up of a panel<br />

participated in by operators, in order to clarify and explain all technical, economical and<br />

accounting aspects which are a prerequisite to the implementation of the service at<br />

issue. 16 undertakings participate in the panel, which was set up by AGCOM decision<br />

no. 11/06/SG and started work in March 2006.<br />

The wholesale market for unbundled access to copper loops and sub-loops<br />

(market no. 11)<br />

On 12 January 2006, with Resolution no. 4/06/CONS, AGCOM passed the final<br />

regulation relating to the analysis of the wholesale market for unbundled access<br />

(including shared access) to copper loops and sub-loops, for broadband and voice<br />

service provision purposes (market no. 11 among those identified by the European<br />

Commission Recommendation of 11 February 2003).<br />

This regulation comes after public consultation Resolution no. 415/04/CONS,<br />

whose market analysis it deals with again by better setting out the obligations identified<br />

by the resolution.<br />

Resolution no. 4/06/CONS confirmed both the market definition identified by the public<br />

consultation, according to which the extent is limited to copper networks, and Telecom<br />

Italia having been notified as an operator enjoying a significant market power because<br />

of its substantially monopolistic position in the copper access market.<br />

With respect to the obligations imposed on the operator with a significant market<br />

power, in line with the provisions set forth in the regulations previously in force and in<br />

the proposed regulations submitted to public consultation, the above regulation confirms<br />

transparency and non-discrimination obligations as well as the requirement to publish<br />

an annual reference offer inclusive of services supplementary to the supply of<br />

unbundled access.<br />

The Resolution also confirms the accounting and administrative separation and<br />

cost-accounting obligations, as well as price-control obligations.<br />

With special reference to the latter, Resolution no. 4/06/CONS amends the policy<br />

proposed by the public consultation by setting out a long-term price control system with<br />

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