Communications Regulatory Authority

operator. Moreover, as previously mentioned, the shared access encouraged the offer of
VoIP solutions in the Italian market. On ADSL connections activated by providers in
shared access mode the alternative operator can activate VoIP lines offering a voice
quality which is by far better than that of VoIP lines activated on wholesale connections
acquired from the incumbent.
The transition to a competition model based on the use of infrastructures
alternative to those of the incumbent operator (not only shared access but above all full
unbundling) is - as previously explained - a signal of the maturity of the Italian market.
As a matter of fact this is, inter alia, a prerequisite for the development of innovative
services, such as IP TV. The opportunity allowed by unbundling to control the
connection enabling the use of IP TV services is considered by TLC operators as key
element for the success of their offers.
In this connection, it is to be pointed out that, at the end of 2005, Telecom Italia
launched its offer of television on Internet protocol which, in addition to a section of
free contents (included in the basic subscription), includes for-pay contents available in
pay-tv mode (Sky Italia packages) and in pay-per-view and video on demand modes.
The service joins the one offered by Fastweb, the first Italian triple play operator, and,
by the end of 2006, it should be followed by the launch of similar services by Wind and
Tiscali.
Significant changes occurred for broadband connectivity via wi-fi (Wireless
Fidelity) and wi-max (Worldwide Interoperability for Microwave Access) technology.
At the beginning of October 2005, the Ministerial Decree of May 2003 on wi-fi was
changed considerably. The main change refers to the removal of the operativeness limit
of wi-fi in places open to public and in public-attended confined areas. This change
enables authorized operators to provide wi-fi services throughout Italy, by allowing the
interconnection of access points of their own network without any geographic
restriction. One of the most interesting applications of this technology consists in the
possibility to provide broadband connectivity in areas not reached by ADSL. In this
connection, it is to be pointed out that Italian cities announced many contracts for the
carrying out of broadband infrastructures by means of wi-fi technology in order to reach
the most inaccessible towns.
Furthermore, in July 2005, tests on wi-max technology were stared on
frequencies made available by the Ministry of Defence. This technology has a
transmission standard enabling connectivity at high speed on wireless networks having
a theoretical maximum capacity of 50 km in rural areas and real speed between 8 and 20
Mbps. Tests were supposed to be completed at the end of the year, however, due to a
respite, the deadline is now set at the end of June 2006. Once tests have been completed,
a public consultation among operators will take place in order to consider the
willingness to invest in this technology. Upon completion of the consultation the
procedure for the allocation of licences will be defined. This technology allows a
number of applications; wi-max (in the standard wi-max 802.16-2004 version) can be
used as: a) broadband wireless access in fixed or nomadic mode (i.e. enabling a limited
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