Case IT/2005/0260

I. 10 October 2005 – Notification registered by the Commission from AGCOM Art. 6 FD (national consultation) 2 March 2005-1 April 2005 Art. 7 FD (deadline for Comm consultation) 10 Novembre Art. 7 (3) FD – NRAs and Comm may make comments

II. Market definition „retail market for access to the public tel. network at fixed location for resid. and non-resid. users in Italy (market 1 and 2) Geographic scope: national

III. Finding of SMP Telecom Italia (both markets) Reasons: Market share (98%-96%) Control over infrastructure difficult to complicate Easy or privileged access to financial resources Barriers to entry Potential competition Economies of scale and scope High switching costs

IV. Regulatory remedies Provision of the Wholesale Rental Line on transparent, and non-discriminatory condition, retail-minus basis Non-discr. between end-users Transparency Not to unduly bundle products and services Price control (price cap mechanism) Cost accounting

WRL because: No alternative operators To foster competition Subject to time limit Geographical limitation (currently not open for access)