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Communications Regulatory Authority

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an 1PC-4.75% reduction restriction for the years 2006 and 2007. The system also breaks<br />

down services into 4 baskets according to the need to avoid cross-subsidies to the<br />

detriment of fast-growing services with smaller volumes.<br />

Each basket also includes activation fees and service management special oneoff<br />

charges, which fall within the same price-variation restriction. By supplementing the<br />

draft regulation, Resolution no. 4/06/CONS sets out structured offer obligations<br />

covering not only unbundling access services but also the relevant additional services,<br />

requires that a Service Level Agreement (SLA) be entered into, imposes provision and<br />

reactivation penalties and sets out offer terms for the co-location service, which is no<br />

more linked solely to the unbundled access but is supplementary to all intermediate<br />

services which Telecom Italia is required to offer.<br />

Among the major supplements proposed by Resolution no. 4/06/CONS are<br />

methods to migrate among operators as regards unbundled access services. Under article<br />

18 of said resolution new and more complete methods are set forth for users to switch<br />

among different unbundled access services, in order to allow the migration between two<br />

alternative operators with the least service discontinuance, while keeping the number<br />

previously allocated. Another supplement involves the possibility for users of<br />

alternative operators to switch from the unbundling operator and go back to Telecom<br />

Italia by directly advising the latter of their intention.<br />

These provisions transversely cover also broadband service markets and WLR<br />

access service markets (market no. 12, no. 1 and no. 2 among those identified by the<br />

European Commission Recommendation of 11 February 2003) for the purpose of<br />

setting out homogenous migration methods among all access services in order to protect<br />

end-users’ will to choose freely among different offers, regardless of the intermediate<br />

access services used by each operator.<br />

With respect to these procedures, which require that agreements be signed<br />

among all operators, including Telecom Italia, for such aspects as number portability,<br />

rejection reasons and call redirection AGCOM has decided that they shall come into<br />

force exclusively subject to a previous agreement between the parties, while reserving<br />

its intervention by a binding decision on conflicting aspects. In order to supervise the<br />

implementation procedure AGCOM has set up a special panel with decision no.<br />

11/06/SG for the purpose of involving all operators and causing discussion to occur<br />

with consumer associations.<br />

The wholesale market for broadband access services (market no. 12)<br />

By publishing Resolution no. 34/06/CONS in the Official Journal of the Italian<br />

Republic no. 44 of 22 February 2006, AGCOM concluded the analysis of the wholesale<br />

market for broadband access services (market no. 12 among those identified by the<br />

European Commission Recommendation of 11 February 2003) undertaken in March<br />

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