Communications Regulatory Authority

With this measure AGCOM has then regulated in distinct terms the pricing
terms that Telecom Italia is allowed to apply to the supply of terminating and trunk
segments, for the purpose of fostering competition among operators which have already
made or are going to make investments in their own network infrastructures for short-
and long-distance transport.
Retail market for leased line (market no. 7)
As regards the retail market for leased lines (market no. 7 among those identified
by the European Commission Recommendation of 11 February 2003), in November
2005 AGCOM notified to the European Commission the final draft regulation, which
supplements the one submitted to public consultation (Resolution no. 411/04/CONS)
with comments received by operators and with AGCOM’s considerations.
Following the European Commission’s remarks as to the partial effectiveness of
the grounds put forward with regard to the existence of a single relevant market for low
and medium speeds (up to 2 Megabits inclusive) and for high speeds (over 2 Megabits
and up to 155 Megabits), AGCOM withdrew its proposed regulation and assembled a
new one, which was notified to the European Commission in April 2006. In it, also in
the light of the results of analyses carried out on the corresponding wholesale markets,
AGCOM identified as a relevant retail market for leased lines the market for analog and
digital circuits up to 2 Megabits inclusive (which coincides with the minimum set
pursuant to the European Commission Recommendation). With respect to this market,
AGCOM has proposed that Telecom Italia be notified as a holder of significant market
power and that transparency, non-discrimination, price control and cost accounting
obligations be imposed.
In particular, with regard to the price control obligation AGCOM has proposed
to apply to direct circuits falling within the minimum set a long-term price planning
system, the so-called price cap, with a special restriction for 2 Mbit/s numeric speed
circuits. Lastly, AGCOM has proposed to lift current regulatory obligations at a retail
level for all circuits above 2Mbit/s capacity.
Mobile phone markets
Markets for access and collection of calls over mobile public
telephone networks (markets no. 15 and 15 b)
On 4 August 2005 AGCOM published its analysis (Annex B to Resolution no.
306/05/CONS) of the market for access and collection of calls over mobile public
telephone networks (market no. 15 among those identified by the European
Commission Recommendation of 11 February 2003). Afterwards, in September, under
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