Communications Regulatory Authority

Local transport 8.7 3.2
Average
services
public utilities
3.1 2.1
Consumer prices 4.1 2.3
Source: Data from the Ministry of Economy and Finance processed by the AGCOM
As regards the development of investments in the sector (table 1.2.), the unfavourable
macroeconomic framework affected its trend, resulting in an average 2.8% decrease.
Table 1.2. Investments in fixed assets (€ million)
2004 2005 % Var. 05/04
Investments on fixed network 3,354 3,585 6.9
-of which OLO 957 1,247 30.2
% OLO 28.5 34.8
Investments on mobile network 3,730 3,303 -11.5
Total investments 7,084 6,887 -2.8
% fixed network 47.3 52.0
% mobile network 52.7 48.0
Source: Corporate data processed by the AGCOM
However, a more detailed analysis of such figure underlines a number of very
interesting factors. Firstly, the average decrease is considerably lower than that of the
previous year (-9.3%). Secondly, the figure on investments of alternative operators
(OLO) is in countertrend, investments in fixed lines performed well up 30%. In
particular, the latter figure clearly shows the transition to a competition model based on
investments in infrastructures; as it will be explained in detail below, alternative
operators are investing in access networks (mainly through unbundling) in order to
present themselves as single providers of communication integrated products.
The situation as aforementioned results from technological and market trends which
have been already outlined in the previous Annual Reports, as well as from new
scenarios which came to light during 2005.
The voice traffic increase on the mobile network is now a structural fact of the market:
the use of the mobile phone as increasingly widespread communication tool reflects
also the marketing policies pursued by mobile operators proposing very advantageous
packages, especially for telephone calls originated and terminated on their network (onnet
calls).
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