AMBASSADOR'S LUNCH WITH MINISTER OF COMMUNICATIONS

UNCLAS SECTION 01 OF 02 ROME 000586

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: ECON ECPS ECPS ITALY'>IT ITECON
SUBJECT: AMBASSADOR'S LUNCH WITH MINISTER OF COMMUNICATIONS


SUMMARY
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1. (U) DURING HIS INITIAL MEETING WITH THE MINISTER OF
UNCLASSIFIED

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COMMUNICATIONS, THE AMBASSADOR PROMOTED MOTOROLA'S BID FOR
THE TENDER FOR A NATIONAL PUBLIC SAFETY DIGITAL MOBILE
COMMUNICATIONS SYSTEM, SOUGHT FAIR MARKET ACCESS FOR U.S.
FIRMS, AND OUTLINED THE U.S. MILITARY'S NEED FOR RADIO AND
TELEVISION COMMUNICATIONS FREQUENCIES. END SUMMARY.


2. (U) MINISTER OF COMMUNICATIONS, MAURIZIO GASPARRI,
HOSTED THE AMBASSADOR AT LUNCH THURSDAY, JANUARY 31.
UNDER-SECRETARY GIANCARLO INNOCENZI AND MIN. GIANFRANCO
GIORGOLO, THE DIPLOMATIC ADVISOR, DCM POPE, AND ECMIN DEAN
ALSO ATTENDED.

AFNS
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3. (U) THE AMBASSADOR USED THE OPPORTUNITY TO RAISE THE
NEED OF THE US AMERICAN FORCES NETWORK SOUTH (AFNS) TO
PROVIDE RADIO AND TELEVISION COMMUNICATIONS ACCESS TO THE
U.S. MILITARY COMMUNITY IN ITALY (AROUND 65,000 PEOPLE) AS
NECESSARY FOR FORCE PROTECTION AND FOR MORALE. SINCE THE
ITALIAN MINISTRY OF DEFENSE WILL NOT EXTEND LOANER
FREQUENCIES BEYOND THE END OF 2002, DOD IS CONCERNED THAT WE
MAY LOSE OUR ABILITY TO COMMUNICATE WITH OFF-DUTY MILITARY
AND THEIR FAMILIES. THE MINISTER SAID THAT HE WOULD LOOK
INTO IT.


4. (SBU) ON FRIDAY, FEB. 1, ING. GIGANTINO FROM THE MINISTRY
OF COMMUNICATION AND THE INDIVIDUAL RESPONSIBLE FOR TRACKING
THE AFNS ISSUE, CALLED US SENDING STATE OFFICE AND THE
ECONOMIC MINISTER SEPARATELY TO SAY THAT THE MINISTRY WOULD
HAVE NO PROBLEMS WITH THE MINISTRY OF DEFENSE AND ITALIAN
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DEFENSE GENERAL STAFF (IDGS) EXTENDING THE LOAN OF THE
FREQUENCIES BEYOND THE END OF THE YEAR AS LONG AS THE MOD AND
IDGS AGREED. THE MINISTRY OF COMMUNICATION, HOWEVER, HAS NO
CIVILIAN FREQUENCIES THAT THEY COULD LEND. THE MINISTRY
WANTED TO KNOW WHAT THE U.S. PROPOSALS WERE FOR A SOLUTION
WHEN THE LOAN PERIOD EXPIRES AT THE END OF THE YEAR.
(COMMENT: DESPITE THE MINISTER'S OPTIMISTIC VIEW THAT HE
COULD FIX THIS, THE FOLLOW-UP CALL INDICATES ESSENTIALLY NO
PROGRESS.)

FAIR MARKET ACCESS FOR U.S. FIRMS
--------------


5. (U) THE AMBASSADOR ALSO EMPHASIZED THE NEED TO HAVE A
LEVEL PLAYING FIELD IN THE BUSINESS WORLD. ITALY AND THE
U.S. ARE IN AN INCREASINGLY GLOBAL MARKET PLACE AND THE RULES
NEED TO BE TRANSPARENT AND FAIR. IF IT TAKES ONLY TWO DAYS
FOR AN AMERICAN TO SWITCH TELEPHONE PROVIDERS, AND 12 DAYS IN
EUROPE, IT IS HARD TO UNDERSTAND WHY IT SHOULD 28-35 DAYS IN
ITALY. SUCH DELAYS LOOK LIKE A BARRIER TO THOSE COMPANIES
WHO WISH TO PROVIDE COMMERCIAL ALTERNATIVES TO THE MONOPOLY
PROVIDER.


6. (U) THE AMBASSADOR RAISED THE JOINT STRIKE FIGHTER AS AN
EXAMPLE WHERE THE U.S. WAS LOOKING FOR TOP QUALITY PARTNERS,
THOSE WHO PRODUCE TOP-NOTCH PRODUCTS. WE LOOK FORWARD TO
ITALY'S BECOMING A PARTNER IN THE JSF. EVERYONE WOULD BE
ABLE TO COMPETE FOR CONTRACTS, AND THIS IS WHAT WE WOULD LIKE
TO SEE ON ITALY'S SIDE.

MOTOROLA
UNCLASSIFIED

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7. (SBU) REINFORCING THE EMBASSY'S ADVOCACY WITH ITALY FOR
MOTOROLA TO WIN AN ITALIAN INTERIOR MINISTRY TENDER FOR A
NATIONAL PUBLIC SAFETY DIGITAL MOBILE COMMUNICATIONS SYSTEM,
THE AMBASSADOR AGAIN EMPHASIZED THE NEED FOR 'BUYING THE
BEST' AND 'MOTOROLA TECHNOLOGY IN THIS FIELD IS THE BEST'.
THE MINISTER UNDERLINED THAT THIS IS NOT A MINISTRY OF
COMMUNICATIONS DECISION, BUT THAT HE UNDERSTOOD THE
AMBASSADOR'S CONCERN THAT THE COMPETITIVE PROCESS BE OPEN.
THE AMBASSADOR REITERATED THAT A LEVEL PLAYING FIELD ALSO
REQUIRES AN OPENNESS IN TENDERING AND MAKING SELECTION
DECISIONS. (COMMENT: EVEN THOUGH THIS IS A MINISTRY OF
INTERIOR DECISION, WE BELIEVE THAT GASPARRI IS LIKELY TO BE A
KEY PLAYER IN THE SELECTION PROCESS.)

WIRELESS LOCAL LOOP
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8. (U) GASPARRI NOTED THAT THEY WERE HAVING A COMPETITION
FOR THE FIXED TELEPHONE WIRELESS LOCAL LOOP WHICH SHOULD
IMPROVE SERVICE TO THE CUSTOMER. IN MOBILE TELEPHONY THERE
ARE FOUR COMPETITORS AND SO SERVICE IS GOOD, BUT IN FIXED
TELEPHONY THERE IS A DOMINANT OPERATOR WHO CONTROLS THE
MARKET AND SO THERE IS LITTLE COMPETITION AND LESS SERVICE.

UNCLASSIFIED

UNCLASSIFIED PTQ2952

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ACTION EUR-00

INFO LOG-00 AGRE-00 AID-00 CEA-01 CIAE-00 CIP-00 COME-00
CTME-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EB-00 EXME-00
E-00 FAAE-00 UTED-00 FCC-01 VC-00 FRB-00 H-01
TEDE-00 INR-00 ITC-01 LAB-01 L-00 VCE-00 AC-01
NSAE-00 NSCE-00 OMB-01 OPIC-01 PM-00 ACE-00 SP-00
SSO-00 SS-00 STR-00 TEST-00 TRSE-00 USIE-00 SNIS-00
NISC-00 PMB-00 DRL-02 G-00 SAS-00 SWCI-00 /010W
-------------- 62D6D5 061352Z /38
R 061330Z FEB 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC 1995
INFO AMCONSUL FLORENCE
AMCONSUL MILAN
AMCONSUL NAPLES

UNCLAS SECTION 02 OF 02 ROME 000586

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: ECON ECPS ECPS IT ITECON
SUBJECT: AMBASSADOR'S LUNCH WITH MINISTER OF COMMUNICATIONS

HE THOUGHT IT IS NECESSARY TO LIBERALIZE THE MARKET AND
IMPROVE THE CHOICES AVAILABLE.

BIO
UNCLASSIFIED

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9. MAURIZIO GASPARRI IS ONE OF THE CLOSEST ADVISERS OF THE
NATIONAL ALLIANCE LEADER AND DEPUTY PM GIANFRANCO FINI.
GASPARRI WAS BORN IN ROME ON JULY 18, 1957, GRADUATED FROM
HIGH SCHOOL, AND WORKED AS A JOURNALIST UNTIL 1994. HE WAS
ELECTED TO THE CHAMBER OF DEPUTIES IN 1992 WITH THE RIGHTIST
ITALIAN SOCIAL MOVEMENT. IN THE CHAMBER HE HAS BEEN A MEMBER
OF COMMITTEES FOR PRODUCTIVE ACTIVITIES, DEFENSE AND JUSTICE.
HE WAS UNDER SECRETARY IN THE INTERIOR MINISTRY UNDER THE
FIRST BERLUSCONI GOVERNMENT. HE IS MARRIED AND HAS ONE
DAUGHTER. HE DOES NOT SPEAK MUCH ENGLISH, ALTHOUGH HE
APPEARS TO UNDERSTAND SOME.
SEMBLER

UNCLASSIFIED

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2002ROME00586 - Classification: UNCLASSIFIED