Communications Regulatory Authority

price-cap system on these services, as it intends to reconsider this assessment upon the
outcome of market analyses required by the new European regulatory framework.
The following table shows obligations imposed by the price-cap system adopted
on variation of the value (which is obtained by multiplying rates by quality) of the
consumption basket of services which are submitted to inspection, to be calculated
according to the IPC (Consumer Price Index for blue-collar and white-collar families)
figure for the years 2003, 2004, 2005, and 2006.
Table 2.1. Price-cap obligations as laid down in Resolution no. 289/03/CONS (%)
Sets Resolution 2003 2004 2005 2006
obligations obligations obligations obligations*
obligations
Access IPC - 0 +2.3 +2.5 +2.2 +1.9
Residential subscription
fees IPC - IPC 0 0 0 0
Switched traffic IPC - IPC 0 0 0 0
Fixed-to-mobile (retention) IPC - 6 - -3.50 -3.80 -
4.10
Source: AGCOM |*The real values of the maximum percentage variations admitted by the price cap must
take into account any possible amount to be carried forward from the previous year, resulting from the
achievement either of price increases lower than those allowed, or of reductions higher than required, in
that period; for the year 2005, because of amounts carried forward, the +2.2% and –3.80% figures became
+3.46% and –3.79% respectively, while for 2006 the +1.9% and –4.10% targets were recalculated
respectively as +3.45 and –4.09.
In order to fulfil the obligations pursuant to Resolution no. 289/03/CONS four
measures were taken by Telecom Italia within the May 2005-April 2006 period with
regard to the general rates of telephone services offered to the public.
The first measure came into force on 1 September 2005, and involved fixed-to-mobile
service rates with the following changes in the rate charged to the public:
For residential users, a decrease both in the set-up rate and in the off-peak
bracket rate, respectively equal to 34.4% and 16.7%, and a change approximately
between –10.1% (Wind) and +30.4% (H3G) in the peak bracket rate per minute;
For business users, a decrease in the rate per minute (undifferentiated between
peak and off-peak brackets) approximately between 0.9% (H3G) and 31.8% (Wind).
Table 2.2. 1 September 2005 measure involving fixed-to-mobile traffic rates (in eurocents, exclusive
of V.A.T.)
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