Telecoms: Italy

“Mobile Virtual Network Operators (MVNO) can help lower retail prices. If current MNOs will not sign any MVNO agreement by year’s end, we will likely introduce regulatory measure in order to facilitate this happening”, said Roberto Calabrò, president of the National Regulatory Auhority (AGCOM) at the yearly review conference held at the Italian Parliament.

According to the yearly report released by the National Regulatory Authority (AGCOM), the Italian telecom market grew 4.3% in 2005 topping € 36.1 billion.

The National Regulatory Authority (AGCOM), that previously forced Telecom Italia to postpone the launch of its UMA-based “Unico” converged service, is likely to authorize the incumbent operator to commercially launch the service, but limiting it to a maximum of 30.000 users in the next sixth month.

3 Italia and Seat Pagine Gialle launched a video-based directory services available via UMTS mobile phones.

Since 1995, Telecom Italia has been Castro’s best friend in the telecom business. Although the fact is probably little know, the Italian incumbent is the only foreign shareholder (30%) of the Cuban monopoly telecom service provider Etecsa.

The strategic rationale of Telecom Italian owning a big stake in the Cuban operator is frankly hard to understand and, apparently, as long as Fidel Castro is alive, no change is expected.

Italian OLOs has the right charge Telecom Italia a much higher interconnection rate than in the reverse direction. This is the controversial decision taken by the National Regulatory Authority (AGCOM) to foster infrastructure-based competition in the fixed line Italian market.

As of June 2006, 3 Italia, part of Hutchison Whampoa has 6.8 million UMTS customers, 16% more than it had at the end of 2005.

Three of the four Italian mobile network operators have already launched their commercial HSDPA service. All of them are currently targeting business users while Vodafone is also promoting the new high speed service to high-end consumers.

According to the latest figure released by GFK, mobile handset sales in Italy are still dominated by mobile network operators, that from July 2005 to June 2006 delivered 58% of the handsets sold in Italy together with some of their specific tariff options or offers. One year earlier the figure was 56%.

Telecom Italia is expected to sign next week a strong partnership with News Corporation regarding content licensing.

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