Tuesday, July 19, 2005
Italy's Telecoms Ordered Telephone Rate Cut of 20%

The ANNOTICO Report

The rates charged in Italy are above the European average, which are
already substantially above US Rates.

Unfortunately, it appears that Unlimited Internet Use for a Fixed Monthly
charge is NOT available in Italy, and therefore seriously impairs access to
the Internet for both youngsters and adults, a serious EDucational and
Social detriment!!


ITALY'S TELECOMS WATCHDOG ORDERS CALL RATE CUT

Reuters
Tuesday 19 July 2005

ROME, July 19 (Reuters) - Italy's telecoms watchdog ruled on Tuesday that
three mobile phone companies must cut the amount they charge fixed-line
operators for calls to their networks by about 20 percent, effective Sept.
1.

The ruling, aimed at bringing interconnection charges into line with the
European average, will hit providers Telecom Italia Mobile (TLIT.MI: Quote,
Profile, Research), Vodafone (VOD.L: Quote, Profile, Research) and Wind,
but not H3G (0013.HK: Quote, Profile, Research), a relative newcomer to the
market.

Vodafone said in a statement quoted by ANSA newswire it would challenge the
ruling and Wind told Reuters it was also considering a legal appeal.
Telecom Italia was not available for comment.

The regulator said Telecom Italia's mobile arm and Vodafone should cut the
rate they charge for fixed-line calls to their mobiles to 0.121 euros a
minute from 0.1495 euros.

Wind, included for the first time in the watchdog's decision, was told to
reduce its rate to 0.1435 euros from 0.1865 euros.

The rate cuts apply to the fee the fixed-line operator pays to the mobile
operator, not the entire price paid by the consumer, but communications
authority Agcom said it expected the reduction to be passed on to phone
users.

The saving to consumers should total 150 million euros in the
September-December period, and then 400 million euros a year, Agcom
Chairman Corrado Calabro said.

"The economic pressures on families at the moment are growing and we could
not keep putting this off," Calabro told a news conference.

The authority began probing the price of mobile calls in June, saying the
rates charged in Italy were above the European average.

H3G was spared the rate cut due to its smaller market share and the fact
that it was relatively new to the market. "For the moment, imposing a price
would be an excessive and not proportionate burden," Calabro said.

Calabro, named chairman of the telecoms authority two months ago, is due to
give an annual address on Thursday.

http://today.reuters.com/business/
newsArticle.aspx?type=telecomm&storyID
=nL19350657