St. Antony College, European Studies Centre 

(Oxford, November 15 2002)

                  

 

Italian public policy in the field of communications and media

 

By Paola M. Manacorda (*)

 

Foreword

Within the scope of the seminar series, focused on “New dimensions in Italian Public Policies”, aim of this paper is to provide a brief description of the major lines of policy recently taken by the Italian Government on media and telecommunications sectors (if traditional definitions are still meaningful in the convergent scenario set up by the new European regulatory framework).

Regarding communications sector, the fast deployment and the wide availability for final users of broadband networks has been universally recognised as the name of the game by market players, analysts, investors and institutions[1], in the broader view of the Information Society development. A description is provided on the regulatory and market framework as well as on initiatives taken by the Government, together with some comments about the general approach adopted and the results achieved so far.

As far as the media sector is concerned, public policy in Italy in the last two years has mainly focused on two issues. On one hand, a law and a regulation have been drafted to define the transition to digital terrestrial, whereas on the other, there has been much debate over the need for a new Broadcasting Act, which should redefine, in the new convergent context, the rules of the game and, in particular, those concerning antitrust limitations and the role of public service broadcasting in the digital age.

 

The role of public policies in the broadband networks development

As usual for innovation processes, technology will be the boost also for Information Society development: the widespread availability of high speed, always-on and interactive communications networks could enhance new business opportunities, as well as increase efficiency of traditional businesses (mainly due to e-commerce applications), with positive effects on productivity and occupation rates.

 

(*) Commissioner, Italian Communication Authority

Higher availability of bandwidth can also support the achievement of social goals, both at national level (with the diffusion of e-learning, e-working, e-health, e-government applications) and at international level (as a tool to reduce the digital divide).

In other words, broadband is the key element to meet the challenge of the Information Society.

National governments and international institutions devote a peculiar attention to the broadband issue: it just worth mentioning the European Commission action plan e-Europe2005 [2], while a number of initiatives are flourishing at national level.[3] 

The role of public policies has considerably changed over the years; earlier in 2000, competition in the infrastructures had been considered the only way for the deployment of broadband. Public policies hence were simply asked to allow market forces to roll-out; a crucial role had to be played by national regulators in ensuring a pro-competitive environment, while governments should limit their actions by encouraging private investments and promoting initiative to enhance digital alphabetisation.

More recently, given the dramatic changes of the economic and financial scenario, a less optimistic feeling has been spreading about the ability of the private sector to drive the process and new options of public intervention are emerging. Competition should nevertheless remain the primary driver for broadband evolution; European Union and OECD confirm their trust on competition and ask national governments to avoid actions that can turn out into incentives to incumbent operators or can anyway distort market dynamics and deter private investments.

 

The national issue

Everywhere, the availability of alternative access networks has been considered the critical issue for the fast deployment of broadband networks; in Italy too, even after full liberalisation of 1998, Telecom Italia, the fixed incumbent operator, retains a de facto monopoly position in the local access segment[4].

Competition in the access market can be therefore granted in the short term only with the unbundling of the incumbents’ local loop and with an adequate upgrading of existing CATV networks, while in the mid-long term, alternative fibre optic access networks should be implemented. Other technologies (satellite, WLL) could play a subsidiary role, especially areas with geographical constraints.

A peculiar national issue is the lack of CATV networks; Telecom Italia’s local loop will be thus the unique short term solution for broadband access. On the other hand, a good point is that Telecom Italia’s loops, due to their peculiar features[5], particularly well suit DSL technologies. 

Another good point is the availability of cabling ducts connecting about 2 million customers in several major cities; these facilities have been built up by Telecom Italia within the so called Socrate Plan to be laid off in 1998; in 2001, the National Competition Authority imposed on Telecom Italia to negotiate access to these strategic facilities with alternative operators[6].

A critical point for Italy can finally be considered the peculiar social context; the absence of a widespread digital alphabetisation and the low familiarity with English language can hinder  the demand for higher bandwidth services. 

Public policies should take into account these specific national elements in defining effective action plans.

 

The role of AGCOM in sector specific regulation

Since the beginning of its office in 1997, AGCOM has been deeply focused in fostering a long term facilities based competition[7].

In march 2000 (anticipating also European initiatives of 2000[8]), Italy has been one of the earlier countries to introduce local loop unbundling obligations, imposing on Telecom Italia to provide a wide range of service and options to competitors, and supervising step by step the implementation process.

AGCOM caught the key role of local loop unbundling for broadband networks deployment and forced Telecom Italia to provide DSL wholesale offers to alternative networks operators and Internet service providers, with the aim to avoid incumbent’s market preemption in this emerging market. 

Many additional regulatory provisions have been taken by AGCOM as well in order to support competition in the broadband market; it is worth mentioning the decision to admit ISPs to Telecom Italia’s leased lines wholesale offer and DSL wholesale offers.

In July 2002, AGCOM issued technical rules to open up Telecom Italia’s interconnection offer to ISPs, according to national Law n.59/02[9].

Such regulatory effort has given quite satisfactory results: local loop unbundling implementation process is well under way and, at September 2002, about 82.000 unbundled lines have been reported and about 70% of them have been upgraded with DSL. Italy is the second country in the European benchmark for local loop unbundling development (following Germany, but very far beyond UK, France and Spain), a success case in a mostly distressed European framework.

A success can be reported also for Telecom Italia’s DSL wholesale offers (about 165.000 wholesale lines supplied to competitors) and for Telecom Italia’s retail offers (about 420.000 final customers connected).

The broadband access market figures finally show about 60.000 final customers connected by satellite and about 50.000 customers directly served with alternative fibre optic networks.

The general framework outlines a national broadband market with about 700.000 customers served at mid-2002, with a speedy growth expected by end 2002.

 

 

Initiatives of the Government

Within the described regulatory and market context, the Government has also considered public intervention aimed at enhancing the broadband development process; the appointment of a Ministry for Technological Innovation and of a Ministerial Committee for the Information Society (responsible for addressing initiatives of all national Public Administrations) are strong signals of such commitment.

The formal declaration that broadband is an essential condition for the economic development of the Nation  - with the target to transform Italy into a knowledge based society at 2006 -  dates at July 2001[10]; so far, several initiatives have been outlined and some of them have been already put into practice.

 

TheBroadband Task Force Report

In September 2001, the Ministry of Communications and the Ministry for Technological Innovation jointly appointed a Broadband Task Force, in charge of monitoring the state of implementation of broadband networks and evaluating proposals for actions.

In November 2001, the Task Force issued a Report[11], with the active contribution of operators, local administrations, trade associations and experts, and submitted it for the approval by the Ministries.

The Report opens with a new definition of broadband as “..the technological environment that permits the use of digital technologies at maximum level of interactivity..”; this open notion, not referred to a specific technological context, seems to be particularly suitable in a changing scenario and overcomes the divergent approaches so far adopted for broadband definition[12].

The Report underlines the necessity of a virtuous circle of expansion, with a range of broadband services and applications (since no killer application has been recognised) increasing the demand of higher bandwidth and driving the take off of further investments in infrastructures. The Report considers competition alone unable to guarantee this circle; private investors seem stuck in a “wait and see” position, looking for clearer signals from the demand.

Government should play a role in addressing and supporting the demand and the supply of broadband; the envisaged public approach should be however taken in an indirect and selective manner; Government’s commitment should be focused on stimulating demand (both by public side and private side) and supporting private investments.

According to these guidelines, the Task Force outlines a range of  lines of action:

a)      the promotion of  new networks deployment has to be reached optimising the use of public resources and complementing private sector only with selective actions. An important role can be played by the Government with proposals for first level regulation and administrative actions which minimise uncertainties for operators and foster the use of different technologies (WLL, satellite) to overcome geographical constraints;

b)     fiscal incentives for operators and end users can support both supply and demand sides;

c)     aggregation of public demand with a “central purchasing system” has been envisaged as a mean to support supply side;

d)     development of  public digital services and digital educational programs could increase digital needs of citizens and support the demand side;

e)     a continuous and in depth monitoring activity on the effectiveness of public initiatives has to be managed, especially in terms of geographical distribution and range of technologies available.

The Report confirms anyway the crucial role of sector regulation, pointing out competition in the access market (in a broader sense, including also leased lines provision and rights of way regulation) as the key issue for  the broadband case.

 

Guidelines and proposal for a National Plan for the development of broadband 

After the approval of the Report, in February 2002, the Government issued Guidelines for a National Plan for the development of broadband.

The final objective of the public commitment should be the definition of  the minimum level of interactivity that will have to be granted in 2005 to the maximum level of population.

National territory should be classified into three areas (A, B, C), with decreasing levels of digital development, and different targets in terms of broadband development timescale and availability; area A should be provided with broadband capability in a very short timescale,  starting  the virtuous circle of demand and investments also in B and C areas.

Finally, the Guidelines draw up a planning for a set of detailed actions substantially consistent with Task Force’s suggestions; especially, the Government agree with an indirect policy approach: just as an explanation of this approach, fiscal incentives should work just in order to de-tax future private investments, aiming at increasing them and generating new permanent fiscal revenues, without any present burden for public budget.  

A the same time, the Government appointed an Executive Committee, with the objective to define a general action plan for broadband development, including financing issues.

In May 2002, the Executive Committee has submitted to the Committee for the Information Society some targets and some figures for public intervention for broadband developments.

Regarding the targets of penetration at 2005, broadband connections should be provided to 85-90% of public building; 65% of private business segment; 35% of private residential.

Regarding financing proposals, the plan provides, for the period 2003-2005, a 500 million euros investment will have to be granted on infrastructure policies, this public effort is expected to enhance private investments for additional 2500 million euros.

About 1.200 million euros have been assessed for promotion of public demand, and 100 million euros (eventually, increasing up 200) for promotion of private demand.

The Committee also foresee a final positive balance of such investments, arising from additional savings and fiscal revenues.

Operational initiatives and actions planned

Some of the described proposal for actions have been already put in place and now producing effects on the market.

At first, several important legislative and administrative measures have been taken. In September 2002, Decree n. 198/2002[13] finally sets out clear and common rules at national level for network installation activities; a few provisions can be underlined: the definition of a fast authorization procedure (with short terms for response by local administrations and a silent procedure system); the central role of the Ministry of Communications for coordination of digging activities and for promotion of civil infrastructure sharing; the harmonisation of the level of digging fees imposed by the local administrations and a prohibition for them to impose any additional burden for digging activities; provisions enabling the constructions of vertical ducts in new buildings. The decree has been enthusiastically commented by operators, while some constitutional concerns have been raised by local administrations.

In April 2002, another regulatory intervention planned by the Guidelines has been turned into practice; Law n.59/2002 allowed also to ISPs to access to Telecom Italia’s Interconnection Offer, demanding operational rules to AGCOM[14].

During 2002, the Ministry of Communications awarded WLL licenses, according to the general framework set out by AGCOM. The results of the auction granted about 35 million revenues for public budget and ensured a national potential coverage by two operators at least.

A fundamental role, in the context of the indirect approach method, can be played by e-government initiatives, since they can stimulate the demand for new services and applications both by final consumers and by Public Administration itself.

The Government asked to local administrations to submit, by June 2002, their digitalisation projects, with the aim to gain savings of about 50% in respect of traditional systems. These projects should be financed, for no more than 50% of their total costs, using 400 million euros taken by UMTS fund. The project submitted have been about 400 covering about 90% of population;  since the total value of projects submitted has been estimated approximately in 1.200 million euros, while the first amount of financing has been reduced to 120 million euros, the Ministry has selected 138 projects to be financed in a first round.

Other noteworthy actions for e-government: the opening of the new government website (in June 2002); the start up of an electronic ID (the target is 1,5 million ID cards issued by 2003 and a total national coverage by 2006) and digital subscription projects. These objectives should be verified and, eventually, reassessed considering the amount of money that will be devoted to e-government issue by the State budget. 

Some proposal of economic incentives are now under evaluation under the draft of National Financial Act for 2003.

Article 14 sets out a specific fund for initiatives of Ministry of Innovation and Technologies and better defines role and powers of the Ministry itself. A 100 million euros budget has been proposed for 2003.

A specific provision (article 44) of the draft is a contribution of 75 euros to each household (for a total investment of 31 million euros) to encourage the take-off of digital television as well as broadband connections; for broadband connection the measure should work as a discount on the subscription fee for access services, starting in 2003.

Still for 2003, the Government is considering to reduce the amount of the annual contribution paid by all licensed operators exclusively for those operators who have invested in broadband networks; the exact references of this proposal are not so clear yet.

Aggregation of public demand projects have been launched; the procedural rules and the technological platform to manage on-line auctions are ready. Still remain some disputes regarding the role of local administrations and some concerns regarding the potential impact on competition.  

 

Conclusion

It is probably too early to draw up final conclusions regarding the effectiveness of national public policies to support broadband development.

It can be certainly affirmed that the present sector regulation is quite consolidated and keen to support competition for the new emerging segment of broadband; measures taken by AGCOM put Italy in a leading role in terms of regulation for broadband at international level.

On the other hand, any evaluation on Government’s assistance policies has to be suspended.

This not only because the process has just begun and the deadline for target has been fixed at 2005-2006 (substantially in line with the deadline of Parliament’s appointment), but also because the general economic and financial scenario risks to reduce considerably the amount of resources for public policies on innovation technology.

Draft proposals of Financial Act 2003 raised several concerns among operators and analysts regarding a reduced effort of the Government. Recently, the Ministry for Technological Innovation has confirmed Government's, nevertheless, investment planned for 2003 seem quite far from the measures and the figures expected by the market.

Initiatives regarding aggregation of public demand have been facing mentioned implementing difficulties directly arising from the difficult balance of powers between central and local administrations.

Finally, a general concern can be referred to the approach adopted by Governments on the broadband issue and the potential trade off between fast development of the market and sustainable competition; this concern is not specifically referred to the national case, but it has to be analysed in the light of the debate emerging across Europe.

In general terms, this concern makes sense, whereas the development of broadband has became a strategic economic policy issue and whereas all national governments started to push heavily for a quicker roll out of broadband market, mainly emphasising the role of incumbent operators. Is it clear indeed, especially in a start up process, that only incumbent operators can supply a fast and widespread roll out of broadband service at affordable prices.  

Italian regulatory environment has been provided with a range of regulatory tools in order to avoid market distortion; initiatives taken and outlined so far by the Government seem to be consistent with a competitive scenario as well.

Nevertheless, an “hand by hand” cooperation between the Government and sector specific regulator, as well as with the national competition authority, seems to be useful in order to address all initiatives to final targets without distorting market dynamics.

 

 

THE TRANSITION TO DIGITAL TERRESTRIAL TELEVISION

Moving on to the media, as we mentioned, the public policy has focused on the need for a quick transition to digital terrestrial television and for a new Broadcasting Act aimed at adapting the legislative framework to the new convergent environment.

Transition from analogue to digital broadcasting will be a very challenging process in Italy due to some peculiar features of the broadcasting environment. The terrestrial spectrum in Italy is completely occupied. There are at the moment approximately 700 local and 11 national broadcasters. Most of them do not hold any licence, they have occupied the frequencies following a decision of the Costitutional Court in 1976 which deliberated that the monopoly of public service broadcasting was not justified at local level. 

Unfortunately, a systematic Broadcasting Act was issued only in 1990 when the situation had already settled down.

In this context, there is no spare capacity to allocate to current broadcasters or new operators to start up simulcast of existing programs and new digital terrestrial services.

The transition to digital although is considered crucial and of paramount importance for two reasons: it will give the chance to reorganize the allocation of the spectrum and it will give way to the creation of convergent services delivered via the TV set, bridging the digital gap and turning the e-society into a reality.

Nevertheless, given the situation, it will necessarily have to take a different path than those employed in other countries.

 

The main legislative steps envisaging this process are two: the law n. 66 and regulation n.435/01/CONS by AGCOM[15].

 

The “frequency trading”

The law, passed in April 2001, takes into consideration the very peculiar situation existing in Italy as far as broadcasting is concerned: no capacity available for simulcasting of digital and analogue; very little chance to sort out the situation as the prerogatives of local broadcasters in maintaining the use of the frequencies are protected by administrative tribunals; no digital plan adopted and therefore no idea of how many channels and services will be available in the new digital context.

In this situation, allowing broadcasters to trade their frequencies appeared to be the only way to push small local channels to give up their capacity. This will allow national broadcasters (cable, satellite and terrestrial) and consortium of operators to start up digital programmes with the acquired capacity.

 

The fragmentation of the value chain and the new business model

 

The analogue TV environment is dominated by vertically integrated broadcasters who operate along the whole value chain. They have the frequencies and manage the network infrastructures, they produce, acquire and organise the content into daily schedules, they operate, as far as pay-tv operators are concerned, conditional access services.                                                                    

The AGCOM regulation, on the basis of what is already established by the law 66, regulates according to a different business model. One of the key issues of the Regulation is in fact the distinction between network operator, service provider and content provider.

Network operators, who will manage the networks infrastructures and the frequencies, will be granted a license, whereas content providers (i.e. the channels) and service providers (providers of conditional access services or information society services) will operate on the basis of an authorization.

Each operator focuses on a single function of the value chain. This model has several advantages: the frequencies are managed more efficiently by a network operator whose interest will be to optimize the use of the capacity he is allocated and content providers that are not broadcasters now (e.g. newspaper or magazine editors) will have the chance to enter the television market without the burden of putting up and managing a network.

 

The underlying principle of this model is that the network operators will assess which channels to broadcast according to their business plans and target audiences and will freely negotiate conditions with the independent channels. The government has not set any limitation to this freedom of the network operator.

Neither is there anex antelimitation to the number of multiplex that a network operator can be awarded. This is due to the consideration that, in order to make it a viable business there will probably not be more than two or three network operators. Putting up a limitation of 20% on the ownership of the frequencies could prove to be anti-economic. One full multiplex though is reserved to the public service broadcaster.

 

The transition to digital

 

Until March 2004, broadcasters with terrestrial, satellite or cable licences  may apply to the Ministry of Communications for an authorization for experimentation with digital program broadcasting and “information society” services on terrestrial frequencies.

They will be using frequencies acquired by local broadcasters to start up tests and commercial services.

If they have more than one terrestrial licence (e.g. RAI, Mediaset, La sette) 40% of the acquired capacity will have to be granted to independent content providers during the transitional period.

The “experimental authorization”, which can be issued to consortium participated by broadcasters and publishers, multimedia content producers etc., will be valid until July 2005.

 As from March 31, 2004 those who hold an experimental authorization may apply to the Ministry of Communications for the granting of the network operator license, for the same areas and frequencies for which the prior authorization was granted.

After the switch over date (December 2006) the Authority will periodically publish the number of additional frequencies available that will be granted to existing licensee or to other subjects requesting the licence. This model justifies the very close switch over date. This should constitute a further incentive for national and local broadcasters to make the transition to new business models.

 

The safeguard of pluralism

 

 

In order to preserve pluralism and competition, the Regulation reserves one third of the broadcasting capacity to local content providers.

National networks will be allowed to carry local content. This is due to the need to encourage local broadcaster (more than 700 operators in Italy) to find an agreement with the network operators (that will be mainly national) and free their frequencies in exchange for a portion of a multiplex.

Most local broadcasters in Italy will not have the financial resources to switch to digital. Most of them will therefore become mere content providers carried on national networks, whereas some of the most important local broadcaster are trying to reach agreement to create their own local networks.

On top of that, a content provider may not be granted authorizations for free-to-air or encrypted broadcasting which would allow them to broadcast more than twenty per cent of national digital television programmes. The ex-ante threshold is set on content providers.

By 2004 the Authority will issue rules aimed at guaranteeing access by content providers that are not directly or indirectly related to network operators and principles in order to guarantee, when resources are not sufficient to satisfy all reasonable requests by content providers, access to broadcasting capacity by all content providers on non-discriminatory basis.

 

THE NEW BROADCASTING ACT

An intense debate has been engaged in the country, for the past two-three years, over the need to rethink the whole legislative framework governing the media sector.

The digitalization and the end of the scarcity of resources as well as the emergence of new business models in the industry pushed the government to issue a project of law that modifies the existing rules in two main areas: the antitrust rules in the sector and the role of public service broadcasting.

 

Antitrust rules in the media sector

As far as the first issue is concerned, the existing system, set by a law of 1990 and reviewed with the law of 1997, sets three kinds of so called “ex-ante” limitation:

o       A threshold for the use of technical resources: a broadcaster cannot be allocated  more than 20%  of the available frequencies;

o       A threshold  for the use of economic resources: each broadcaster can’t gather more than 30% of the economic resources of the television sector (the resources of the sector were identified as those coming from TV advertising, public service fees and pay-tv subscription); the law set an “ex-ante” threshold for each specific market: terrestrial TV, satellite/cable tv, radio.

o       A cross-ownership limitation: newspaper editors with over 16% market share couldn’t be granted a terrestrial TV licence.

The new project of law presented by the Government few weeks ago[16]  introduces sensible changes.

To start with, there would be no more cross-ownership restrictions between press and TV. This would allow traditional newspaper editors to enter the television business and put together channels to be broadcast over the future digital terrestrial networks. Although this makes much sense in the new convergent context, it  could lead to even stronger dominant position of existing editorial and broadcasting groups.

 

What is most relevant though, is the amendment of the threshold for the gathering of economic resources. Rather than a specific limitation for each market, the project of laws states that subjects who by law have to enrol in the “Register of Communications Operator” (broadcasters, advertising agencies, press editor, content producers, etc) cannot gather more than 20% of the total resources of the so called “integrated system of communications”, which is not better specified, but supposedly could include all kind of activities in the communications sector: from press to home video to tv production. Again, if this could appear to be widely justified by the new convergent context, the new threshold appears to be extremely vague and undefined. On top of that, it has been figured out that, with this new law, subject such as Mediaset or RAI, which are considered to be in a dominant position under the current standards, might further enlarge their turnover and still keep below the threshold.

As far as specific markets within the integrated system of communications, there is no ex-ante limitation: the AGCOM though will be called to evaluate the existence of dominant position according to the traditional competition analysis.

 

The public service broadcasting: new obligations and mission

As far as public service broadcasting is concerned, the new act tries to redefine what public service is both in terms of the programming obligations and of the mission of a PSB company in the digital era.

In terms of programming, the act states what kind of programs the public broadcasters will be obliged to produce and broadcast: the details of which (no. of hours exc.) will be defined every three years within a contract between the PSB and the Minister, drafted on the base of guidelines issued by AGCOM.

 

More remarkably, PSB will be for the first time subject to accounting separation. Annual fees paid by viewers to finance public service broadcasting will be used solely to fund public service programming as defined by the contract. The separate accounting will be reviewed by a consultancy service and the AGCOM. The AGCOM is also in charge for monitoring the performance of PSB and make sure that the programs are scheduled and broadcast according the law and contract.

On top of the programming obligations, the legislator has identified a mission for the PSB in the convergent era by assigning it the task to encourage the transition to digital terrestrial. RAI will have to turn on at least two digital multiplexes by July 2003. The digital network must have national coverage (80% of the population)  by 2005.

This will be an extremely challenging and expensive task for RAI, as it will not entail just the creation of the networks and the channels: if RAI will consider the creation of digital channels its key public service broadcasting mission in the convergent era,  it will necessarily have to become involved in the subsidy and distribution of digital receivers to the public. As the experience in most countries has widely proved, this is the most critical aspect in the transition to digital terrestrial.

As far as the corporate structure of the PSB is concerned, RAI, which is assigned for the next 12 year the function of public service broadcaster, will be privatised and turned into a stock company. Its Board, currently composed of 5 members appointed by the Presidents of the two Houses, will be made of 9 members, elected by the assembly of shareholders, with one member appointed by the Ministry of Finance.

 

 

Conclusion

Few doubts exist on the importance of the transition to digital terrestrial and both the government and the AGCOM have stressed in several ways their commitment for the achievement of this goal. Still, some questions remain to be answered. Will the frequency trading be the right incentive to push private broadcasters towards the creation of digital networks? Experience in other countries have provided evidence that commercial broadcasters, whose break-even prospects are linked to the existence of a potential audiences, are very cautious in launching services before a critical mass of digital receivers are deployed. In a digital terrestrial transition plan based on free to air television rather than pay, the leading role must be maybe played by the public service broadcaster and a specific responsibility has to be taken by the government in the subsidy and diffusion of digital receivers. Will RAI be able to have a strategic view on the future and consistently undertake this task? Will the government be ready to support adequately this new mission of the public service broadcaster both  through specific funding and an effective action plan for the diffusion of the receivers? And will the government be able to meet the deadline of December 2006 for the switch-off of analogue television? Only if this deadline is considered realistic by the operators and the viewers, we’ll see an effective commitment towards the accomplishment of this goal by all the actors involved. 

 

 

 

 

 

 

 



[1] Actually, the broadband development is a key issue for the general economic environment, not only for ICT sector; OECD Document “The development of broadband access in OECD countries” (DSTI/ICCP/TISP(2001)/2)  declares  that “The development of broadband access …is gaining increasing prominence. This is occurring in fields that go well beyond communications policy”, and point out the role that broadband networks can play in generating higher economic growth.

[2] European Union’s commitment for Information Society development started with e-Europe 2002 Action Plan. In June 2002, the Action Plan has been reviewed and updated with new actions by 2005, with the aim to support private investments and promote safer services, applications and content based on a widely available broadband infrastructure.

[3] A comprehensive compendium of actions taken for the development of broadband network in OECD countries is reported in OECD document “Broadband infrastructure deployment: the role of government assistance  (DSTI/ICCP/TISP(2001)8).

[4] No issue on the availability of backbone and local distribution networks, as far as many national infrastructures, deployed in the monopolistic scenario by public utilities companies for their own private communications, are now available for public communications. After 1998, many alternative operators invested in distribution networks in the metropolitan areas and major cities.

[5] The average length of Telecom Italia’s loops is of about 1 Km; this should ensure a good quality to DSL applications.

[6] Autorità Garante della Concorrenza e del Mercato – decision  9142 of January 2001, on  http://www.agcm.it/.

[7] All decisions taken by AGCOM can be found on AGCOM website http://www.agcom.it.

[8] E-Europe 2002 Action Plan (June 2000) and 2887/2000/EC Regulation, issued on December 2000.

[9] http://www.agcom.it/L_naz/l_59_2002.htm.

[10] DPEF 2002-2006 (Economic and Finance Planning Document) issued by the Government in July 2001.

[11] All Government’s initiatives can be found  on http://www.innovazione.gov.it/ita/intervento/banda_larga/index.shtml.

[12] Broadband definition is still disputed at international level: some use bandwidth as a parameter (reaching also different conclusions: ITU refers to a bandwidth higher than 1,5 Mbit/s, while OECD suggests a lower “commercial” level of 256 Kbit/s downstream and 128 Kbit/s upstream). Some countries have preferred a different approach, based on  the range and the features of services provided over the network.

[13] http://www.senato.it/parlam/leggi/deleghe/02198dl.htm

[14] AGCOM issued these rules in July 2002, with decision n. 9/02/CIR.

[15] http://www.agcom.it/L_naz/l_66_2001.htm

   http://www.agcom.it/provv/d_435_01_CONS.htm

[16] http://www.camera.it/_dati/leg14/lavori/stampati/sk3500/articola/3184.htm