Identifier
Created
Classification
Origin
03ROME4227
2003-09-17 08:49:00
UNCLASSIFIED
Embassy Rome
Cable title:  

ITALY'S EU PRESIDENCY: SEPTEMBER 4 INFORMAL

Tags:  ECPS IT EUN 
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UNCLAS ROME 004227 

SIPDIS


E.O. 12958: N/A
TAGS: ECPS IT EUN
SUBJECT: ITALY'S EU PRESIDENCY: SEPTEMBER 4 INFORMAL
MINISTERIAL ON TELECOMMUNICATIONS

REF: ROME 3916

UNCLAS ROME 004227

SIPDIS


E.O. 12958: N/A
TAGS: ECPS IT EUN
SUBJECT: ITALY'S EU PRESIDENCY: SEPTEMBER 4 INFORMAL
MINISTERIAL ON TELECOMMUNICATIONS

REF: ROME 3916


1. (U) MINISTERS AT THE INFORMAL TELECOM MINISTERIAL, HELD IN
VITERBO, ITALY, ON SEPTEMBER 3-5, AGREED TO A SET OF
GUIDELINES THAT WOULD MAKE BROADBAND MORE ACCESSIBLE.

COMMISSIONER LIIKANEN'S REMARKS


2. (U) EU INFORMATION SOCIETY COMMISSIONER ERKKI LIIKANEN
EMPHASIZED THAT THE COMMISSION WAS PREPARED TO SPEND
STRUCTURAL FUNDS ON BROADBAND INFRASTRUCTURE DEVELOPMENT
PROJECTS IN REMOTE OR LESS DEVELOPED AREAS, RECOGNIZING THAT
PUBLIC FUNDING WILL BE NECESSARY TO BRING BROADBAND TO THESE
REGIONS. HIS COMMENTS REITERATED THE POINTS LAID OUT IN THE
COMMISSION'S GUIDELINES FOR THE USE OF STRUCTURAL FUNDS FOR
BROADBAND DEVELOPMENT (ADOPTED JULY 25 2003),WHICH RECOGNIZE
THAT COMMERCIAL CONSIDERATIONS ARE OFTEN INSUFFICIENT TO
JUSTIFY INVESTMENT IN THESE AREAS. LIIKANEN STRESSED THAT EU
FUNDING MUST BE USED NOT ONLY TO FINANCE BROADBAND
INFRASTRUCTURE, BUT ALSO TO DEVELOP BROADBAND CONTENT. HE
OBSERVED THAT REGIONS THAT REQUIRE STRUCTURAL FUNDS MUST
REQUEST FUNDING BY THE END OF THIS YEAR. NOTE: BROADBAND IS
THE MAIN FOCUS OF THE EEUROPE 2005 ACTION PLAN, WHICH AIMS TO
ENCOURAGE BROADBAND DEVELOPMENT BY PROMOTING BOTH THE
DEPLOYMENT OF BROADBAND INFRASTRUCTURE AND THE PROVISION OF
SERVICES, APPLICATIONS, AND CONTENT. END NOTE.


3. (U) LIIKANEN ALSO ENCOURAGED MEMBER STATES TO HARMONIZE
THEIR NATIONAL BROADBAND DEVELOPMENT PLANS WITH THE NEW
TELECOMMUNICATIONS REGULATORY FRAMEWORK THAT ENTERED INTO
FORCE JULY 25, 2003. THE FRAMEWORK STRESSES THE PRINCIPLE OF
COMPETITION - AMONG OPERATORS AND AMONG TECHNOLOGIES. UNDER
COMMITMENTS MADE AT THE MARCH 2003 SUMMIT, NATIONAL BROADBAND
STRATEGIES NEED TO BE IN PLACE BY THE END OF THIS YEAR.
LIIKANEN ALSO STRESSED THE NEED FOR NATIONAL GOVERNMENTS TO
PROVIDE A REGULATORY FRAMEWORK TO FACILITATE AND STIMULATE
PRIVATE INVESTMENT.

ITALIAN MINISTER GASPARRI'S COMMENTS


4. (U) COMMUNICATIONS MINISTER GASPARRI SPOKE ABOUT ITALY'S
REGULATORY AND FINANCIAL FRAMEWORK FOR BROADBAND DEVELOPMENT,
WHICH IS INCLUDED AS AN ITEM OF THE MORE GENERAL "LEGGE
OBIETTIVO," (LAW 443/2001),A BROAD LAW THAT AIMS TO UPGRADE
ITALIAN INFRASTRUCTURE. IN 2002, THE GOVERNMENT'S BUDGET
INCLUDED 31 MILLION EURO IN INCENTIVES FOR BROADBAND
DEVELOPMENT. THE MINISTRY OF COMMUNICATIONS ESTIMATES THAT
30 BILLION EUROS WILL BE INVESTED BY THE PRIVATE SECTOR IN
BROADBAND DEVELOPMENT IN ITALY IN THE "NEXT FEW YEARS."
GASPARRI STATED THAT THE USE OF EU STRUCTURAL FUNDS WOULD BE
LIMITED TO LESS DEVELOPED AREAS, SUCH AS ITALY'S SOUTHERN
REGIONS. HE ALSO COMMENTED THAT BROADBAND SHOULD GROW
SIMULTANEOUSLY WITH TECHNOLOGIES SUCH AS SATELLITE
TECHNOLOGY. FOR EXAMPLE, DIRECTIONAL BROADBAND CAN BE
PROVIDED VIA SATELLITE TECHNOLOGY.


5. (U) BROADBAND CONNECTIONS IN EUROPE ROSE FROM 9 MILLION
LINES IN MID-2002 TO 17.5 MILLION IN JULY 2003; WITHIN ITALY
CONNECTIONS INCREASED FROM ONE MILLION IN 2002 TO 1.7 MILLION
IN MID-2003. THE GOI ANTICIPATES THAT THERE WILL BE 2.5
MILLION BROADBAND CONNECTIONS BY THE END OF 2003, MAKING THE
GROWTH RATE IN ITALY SECOND ONLY TO FRANCE AMONG EU STATES.
THE GOI BELIEVES THAT THE TELECOM BUBBLE IS OVER AND THAT
BROADBAND DEVELOPMENT WILL ACCELERATE STRONGLY. THE
GOVERNMENT ASSESSES THAT THE AVAILABILITY OF SERVICES (E.G.,
E-LEARNING, E-GOVERNMENT, E-COMMERCE) WILL DRIVE BROADBAND
DEVELOPMENT, AND BELIEVES IT IS THE RESPONSIBILITY OF
GOVERNMENT TO PROMOTE SUCH ACTIVITIES. GASPARRI STATED THAT
THE GOI WOULD NOT PROVIDE FEDERAL AID TO SINGLE COMPANIES.
ITALY HAS ADOPTED A MARKET-ORIENTED APPROACH, AND GASPARRI
MAINTAINED THAT ITALY IS MORE ADVANCED IN THIS REGARD THAN
OTHER EU MEMBERS, INCLUDING FRANCE AND GERMANY.


6. (U) MINISTER GASPARRI ALSO HIGHLIGHTED THE ROLE OF THE
ITALIAN FEDERAL GOVERNMENT IN MEDIATING AMONG REGIONAL
AUTHORITIES AND BETWEEN THE REGIONS AND THE EU. THE MINISTRY
OF COMMUNICATIONS, THE MINISTRY OF TECHNOLOGICAL DEVELOPMENT,
AND THE ITALIAN DEVELOPMENT AGENCY SVILUPPO (DEVELOP) ITALIA
WORK TOGETHER VIA A TASK FORCE THAT WAS CREATED IN SEPTEMBER
2001 TO ASSIST THE GOVERNMENT IN ENSURING THE EXTENSIVE AND
BALANCED DEVELOPMENT OF BROADBAND COMMUNICATION
INFRASTRUCTURE.


7. (U) COMMENT: DESPITE THE ADOPTION OF AN EU STRATEGY FOR
BROADBAND DEPLOYMENT, THE DEVELOPMENT OF EU-WIDE BROADBAND
INITIATIVES, POLICIES AND REGULATIONS IS LIKELY TO BE A
LENGTHY PROCESS, AS NOTED REFTEL. END COMMENT.
SEMBLER

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2003ROME04227 - Classification: UNCLASSIFIED