DIGITAL EUROPEAN CORDLESS TELECOMMUNICATIONS (Advisory opinion)
PRESS RELEASE
The Italian Competition Authority submitted an advisory opinion to Parliament and Government with regard to the obligation on the Italian State, as provided for by the Community law, to grant licenses to supply with DECT services all the requiring operators, according to open, non-discriminatory and transparent procedures.
The Authority noted that the Community law provides for the complete and immediate liberalization of all telecommunications services (except for the voice telephony on the public switching network, whose liberalization will start from January 1st, 1998), the use of infrastructures alternative to the public network and the installation of telecommunications networks to supply liberalized services.
In particular, the DECT services do not fall under the definition of dedicated voice telephony and, as such, are to be considered liberalized services, given that they do not need the direct voice transportation between two terminal points of the public switching network.
First, the DECT technology can constitute a cellular extension of the fixed public network, so that customers can enjoy a partial mobility within the urban area.
Second, the DECT technology can be used as wireless access to end users from telecommunications centrals, which are run by the public carrier's rivals and are alternative to the fixed public network centrals, in order to supply voice telephony and data transmission services (wireless local loop). In this way, the DECT technology permits to overtake the need of the cable connection with the end user, so as to open immediately new important competitive rooms in the market of telephone services.
The use of wireless technology for end user access is very relevant in a country like Italy, which lacks of local alternative infrastructures.
According to the Authority's opinion, it is necessary that the DECT services would be introduced in a well-defined regulatory framework, aimed at guaranteeing equal conditions to operators. In particular, in order to favour a correct and effective development of all the DECT services, the following conditions are absolutely essential:
(a) the DECT services are to be offered by a pluralism of operators authorized to supply all telecoms services, included the voice telephony services;
(b) the introduction of the DECT services has to occur at the same time as the complete liberalization of the use of alternative infrastructures and the implementation of own infrastructures;
(c) the right to interconnection with the public network has to be guaranteed to all operators, at prices aligned with costs, and at the various levels of network for which the interconnection is required. Therefore, at equal conditions, price of interconnection has to be uniform for all carriers, independently of used technologies and supplied services. This is necessary to ensure effective competition between the diverse cellular services, both offered at present (TACS and GSM) and available in the future (DECT and DCS1800). Currently, in Italy the price of interconnection with the public network, which is incurred by the cellular service carriers, is appreciably high in comparison with the price set in other European countries and the tariffs applied by the public carrier to business clients;
(d) the public switching network has to guarantee to all DECT service suppliers certain functions of the system, as the conversion of the transmission speed, traffic routing and tariff setting;
(e) the obligation on the public carrier of accounting separation for the DECT service is to be provided for. The most effective way to obtain such a result is that the public carrier supplies the DECT services through a company different from the one handling the telecoms fixed network;
(f) considering that the public carrier will be at a competitive advantage at the start-up of the DECT service, it is necessary that, as from the transitory stage, the regulator defines the obligations of service, interconnection and wholesale to competitors and service providers. Such obligations will be to comply with by the company controlled by STET group, which will supply the DECT services;
(g) the regulator has to set out non-discriminatory rules concerning the possibility for the fixed network users to maintain their own telephone number, even when they make use of a DECT cellular service supplied by the public carrier's competitors.