Communications Regulatory Authority

according to the termination operator. With regard to the latter aspect AGCOM
confirmed the non-admissibility, until the entry into force of the measures regulating the
analysis of the relevant markets, of rate differentiation between calls originating from
and terminating on Telecom Italia’s network (“on-net calls”) and calls originating from
Telecom Italia’s network and terminating on another operator’s network (“off-net
calls”).
With regard to the replicability of the “Teleconomy no problem” offer, following
AGCOM’s intervention Telecom Italia changed the price terms initially proposed and,
after an assessment of the new proposal also based on analysis facts and data supplied
by some alternative operators, the sale of this offer was allowed provided that it be
subject to a new replicability verification based on final consumption data relating to the
first six-month period.
This verification is currently being carried out by AGCOM.
The analysis of the “Top business” offer - intended for Telecom Italia’s business
customers and characterized by different rates applied according to different traffic
types - highlighted the possibility that the replicability threshold could be exceeded, so
requiring closer examinations on the competition dynamics existing in the reference
market. These examinations, which also took account of alternative operators’
contributions, did not result in any impedimental factors to the sale of this offer.
Another offer by Telecom Italia, which required a long and complex assessment
procedure and a complex series of discussions with the company, involves Internet dialup
connection on a flat basis, allowing to access the Internet every day round the clock
with no time limit. This offer is intended both for residential users, with the
“Teleconomy Internet” trade name, and for business users, with the “On-line business”
trade name. Several closer examinations were required, also from a regulatory
viewpoint, in order to analyse such offer, with regard to the use of numbers initially
proposed, and to the terms of offer replicability.
In this connection it should be highlighted that, as far as replicability by other
operators is concerned, the structure of Telecom Italia’s offer proposed to end users
refers to the FRIACO (Flat Rate Internet Access Call Origination) offer and features
several peculiarities, compared to the usual methods set for the application of
algorithms included in price tests.
However, considering that there are no special obligations currently setting out
the level of quality to be supplied to the user of an Internet dial-up access service, the
ex-ante assessment stressed the existence of some critical aspects as regards compliance
with the obligations of transparency and fair information towards end users.
AGCOM then allowed Telecom Italia to roll out the offer making it conditional both on
publication of quality indicators as set out in Resolution no. 25/01/CIR, pursuant to the
methods laid down in it, and on the outcome of a subsequent verification.
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