Identifier
Created
Classification
Origin
03ROME1119
2003-03-18 17:37:00
UNCLASSIFIED
Embassy Rome
Cable title:  

ANNUAL SECTION 1377 REVIEW OF TELECOMMUNICATIONS

Tags:  ECPS ETRD IT 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS ROME 001119 

SIPDIS

DEPT PASS USTR FOR SCHAGRIN; EB/CIP - TFINTON; COMMERCE FOR
NTIA SPECK

E.O. 12958: N/A
TAGS: ECPS ETRD IT
SUBJECT: ANNUAL SECTION 1377 REVIEW OF TELECOMMUNICATIONS
TRADE AGREEMENTS

UNCLASSIFIED

PAGE 02 ROME 01119 181741Z
REF: SECSTATE 50683

UNCLAS ROME 001119

SIPDIS

DEPT PASS USTR FOR SCHAGRIN; EB/CIP - TFINTON; COMMERCE FOR
NTIA SPECK

E.O. 12958: N/A
TAGS: ECPS ETRD IT
SUBJECT: ANNUAL SECTION 1377 REVIEW OF TELECOMMUNICATIONS
TRADE AGREEMENTS

UNCLASSIFIED

PAGE 02 ROME 01119 181741Z
REF: SECSTATE 50683


1. THE HIGH COST OF MOBILE TO FIXED TERMINATION RATES, WHICH
IS THE FOCUS OF COMPTEL'S FILING UNDER SECTION 1377 OF THE
TRADE ACT, WAS A THEME OF THE MARCH 6-7TH U.S./ITALY
BILATERAL TALKS ON COMMUNICATIONS POLICY. THE GOI IS
COMMITTED TO BRING RATES DOWN, BEGINNING WITH THE FIRST
TRANCHE OF RATE CUTS EFFECTIVE JUNE 1, 2003. VERIZON, THE
U.S. MINORITY SHAREHOLDER IN OMNITEL-VODAFONE, ARGUES THAT
THE HIGH COSTS ARE JUSTIFIABLE.


2. COMPTEL'S JANUARY 9TH FILING IN USTR'S 1377 REVIEW
PRE-DATED THE COMMUNICATIONS AUTHORITY'S (AGCOM - ITALY'S
EQUIVALENT TO THE FCC) DECISION TO MANDATE LOWER TERMINATION
RATES. ON FEBRUARY 5TH, AGCOM ANNOUNCED THAT EFFECTIVE JUNE
1, 2003, TERMINATION COSTS WILL BE 14.95 EURO CENTS AND
RETENTION COSTS WILL 4.85 CENTS, A REDUCTION OF 12 PERCENT
AND 14 PERCENT RESPECTIVELY. REGULATORY OFFICIALS TOLD THE
U.S. DELEGATION TO THE MARCH 6-7TH BILATERAL TALKS THAT THEY
PLAN TO REDUCE TERMINATION COSTS FURTHER IN 2004 AND 2005, IN
THE RANGE OF 20 PERCENT, AND WILL INTRODUCE A NEW BASKET OF
FIVE SERVICES SUBJECT TO A PRICE CAP.


3. WHILE AGCOM'S DECISION SHOULD ADDRESS THE CONCERNS OF
FIXED-LINE OPERATORS, U.S. TELECOM COMPANY, VERIZON, TOLD THE
U.S. DELEGATION THAT IT WOULD BE ADVERSELY AFFECTED BY THESE
CAPS. VERIZON, WHICH OWNS 23 PERCENT OF ITALY'S SECOND
LARGEST MOBILE CARRIER, OMNITEL-VODAFONE, SAID THAT HIDDEN
COSTS, SUCH AS THE DEVELOPMENT OF 3G SERVICES AND RESEARCH
AND DEVELOPMENT, SHOULD BE TAKEN INTO ACCOUNT.

UNCLASSIFIED

PAGE 03 ROME 01119 181741Z

4. POST WILL CONTINUE TO MONITOR AND REPORT ON AGCOM'S
RULE-MAKING ON MOBILE TO FIXED TERMINATION RATES.
SEMBLER

UNCLASSIFIED

>
2003ROME01119 - Classification: UNCLASSIFIED