Telecoms: Italy

Telecoms: Italy is edited by Stefano Cazzani. Based in Milan, I have always been tracking what happens in the telecommunications sector in Italy, both as a professional running my own specialist consultancy and as an ordinary consumer.

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Three our of four mobile network operators in Italy heavily invested in DVB-H networks and they are now ready to launch broadcast-like mobile TV services.

H3G is the most active one promoting its new mobile TV services. A massive TV campaign is underway to lure consumers into the new medium. The company even copyrighted the new word ‘TVfonino’ meaning a mobile handset with TV capability. Both TIM and Vodafone are expected to soon launch similar campaigns just in time for the FIFA World Cup due to start in a few weeks.

Will Italians hurry up to watch TV on a tiny screen? I doubt it very much.

The National Regulatory Authority (AGCOM) in March 2006 set the basic rules regarding VoIP services. Besides other very important rules (like banning portable geographical number), it also mandates full interconnections among VoIP operators to be deployed at IP level (and not at #7 signalling level).

The NRA gave 120 days to operators to come up with a technical proposal in order to comply with the IP interconnection rule.

In a country where 85% of mobile subscribers are on pre-paid, it’s not so bizarre that fixed line operators are willing to push the same model for wireline residential customers.

That’s exactly what Fastweb is promoting with its new ‘Tuttoricaricabile’ (all rechargeable) offer. Through a single broadband ADSL connection, Fastweb is offering both Internet access and voice on a sole ‘pre-paid’ mode. No monthly fee, no minimum contract, just simple and pure pay-per-use with customers buying ‘recharges’ in 25 €, 50 € or 100 € (including a € 5 overhead) as needed.

According to Fastweb,

Tuttoricaricabile is intended for the new user segment of young couples, singles and anyone interested in fixed telephone and Internet services, who keep a close watch on their spending

The Ministry of Communications has started the procedure to assign numbers for the nomadic VoIP service (55xxxxxxxxx) as planned by the new VoIP rules.
Every operators can currently ask for up to 50 blocks of 1.000 numbers each.
Each block costs €11,10.
Numbers will be assigned on a first-come first-served basis.

In a country where the subsidy level has been traditionally low, the National Regulatory Authority (AGCOM) recently set new rules regarding the SIM-lock mechanism used by some mobile network operators to protect their subsidised handsets from being used on competitors’ networks.

If an operator wants to sell a subsidized handset, it has to publicly state the value of the subsidy. Handsets cannot be locked for more than 18 months and consumers have the right to disable the lock after 9 months paying back the operator half the value of the original subsidy.

Will operators honestly comply with the new rules? At the moment the subsidy value of the newest phones are still well hidden to the consumer. Hopefully, someone will take notice.