Communications Regulatory Authority

calculation, with regard to 2003 and 2004, respectively to Mazars&Guerard and to
Europe Economics.
In December 2005 procedures were also initiated for the purpose of carrying out
the cost accounting audit relating to TIM’s and Vodafone’s mobile termination service.
For the first time the audit is also going to cover the mobile termination service, to be
assessed according to current costs pursuant to guidelines passed by AGCOM with
Resolution no. 399/02/CONS.
TIM’s and Vodafone’s cost accountings relating to accounting periods 2002-
2004, to be assessed according to current costs and also according to historical costs, are
consequently being audited by Mazars&Guerard. This firm has also been entrusted by
AGCOM with the task of auditing the cost accounting and accounting separation with
regard to fixed-line services offered by Telecom Italia during accounting periods 2002-
2004.
In December 2005 Telecom Italia and Mazars&Guerard were involved in the
start of procedures relating to the regulatory accounting audit. In this case too, pursuant
to Resolutions no. 399/02/CONS and no. 152/02/CONS, within the regulatory
accounting the increase in value of depreciations as well as that of the invested capital
shall be based both on historical costs and on current costs.
Auditing of Telecom Italia universal service net cost
In the framework of the preliminary investigation concerning the applicability of
the universal service net cost apportionment system and its assessment for 2003, Europe
Economics, in its capacity as the independent organization entrusted by AGCOM under
article 62 of the Code of Electronic Communications, has completed its auditing of the
net cost calculation submitted by Telecom Italia, the universal service provider.
AGCOM is then about to undertake a public consultation aimed at gathering
market operators’ remarks with regard to the outcome of the audit carried out by Europe
Economics.
In late 2005 AGCOM started a preliminary investigation on the applicability of the
apportionment and assessment system intended to handle the net cost incurred by
Telecom Italia in 2004. Within this framework AGCOM requested from market
operators information and data on costs and revenues pursuant to Annex 11 of the Code
of Electronic Communications, in order to assess, on one hand, the level of competition
achieved in telecommunications markets and, on the other hand, the fund contribution
fees due by each operator. In the light of such data, and taking account of the
competitive level reached in the markets, AGCOM established the injustice of the net
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