WRITTEN QUESTION E-1937/98

by Cristiana Muscardini (NI) to the Commission

(18 June 1998)

Subject: DCS 1800 technology and monopolization

The Italian government decree of 1 March 1998 limits the number of companies allowed to operate in the mobile and personal telecommunications sector using DCS 1800 technology; three subsequent decrees of 20 April 1998 allow three operators to carry out trials using DCS 1800 communications, two of which, Omnitel Pronto Italia and Telecom Italia Mobile, already hold licences for 900 MHz GSM services.

The assessment of the Italian regulatory authority responsible for competition and markets, published in the official bulletin No 154 of May 1998, states that the position adopted by the Italian government is not tenable and that the reasons given for its decisions are unfounded since there is "no lack of available frequencies". Moreover, Law No 189 of 1 July 1997, which transposes Directive 96/2/EC(1), stipulates that individual licences are to be issued to several operators and not just to one.

Given that the Italian ministry responsible for telecommunications, despite maintaining that the available frequency bands are insufficient for the DCS 1800 service, has granted some of them for trials not to new operators but to companies already operating in the mobile and personal telecommunications sector.

Can the Commission say:

1. whether it has requested and obtained an explanation from the Italian government for its actions?

2. whether it considers these actions to be harmful to the interests of EU citizens who are likely to be faced with a new monopoly operator in the DCS 1800 sector?

3. whether these actions have had an adverse effect, or will have an adverse effect in the near future, on companies based in other Member States by denying them access to the Italian mobile and personal telecommunications market?

Answer given by Mr Van Miert on behalf of the Commission

(15 July 1998)

Some Member States, including the United Kingdom and Germany, have decided to grant several DCS 1800 licences, none of which will be allocated to GSM 900 operators. Since then, there has been some measure of convergence in service provision, with operators increasingly inclined to offer a combined GSM 900/DCS 1800 service. This development has been taken into account by Article 2(3) of Commission Directive 96/2/EC of 16 January 1996 amending Directive 90/388/EEC with regard to mobile and personal communications, which urges Member States not to place restrictions on the combination of mobile technologies (such as GSM 900 and DCS 1800), in particular where multistandard equipment is available, as is currently the case. However, in view of the danger of reinforcing any dominant position on the part of existing operators at the expense of potential new market entrants, Article 2(4) of the same Directive reminds Member States of their obligation to adopt the necessary measures in this field to guarantee effective competition between operators. In the case in hand, the Italian Government assured the Commission in May 1998 that, although DCS 1800 frequencies had been allocated to GSM operators, there remained enough free DCS frequencies to enable the new mobile operator to develop its business efficiently and that, as of November 1998, additional frequencies would be made available, making possible a fourth licence for mobile telecommunications services. The Italian Government also confirmed that it would be allocating GSM 900 frequencies outside urban areas to a new mobile operator (chosen on 9 June 1998), enabling it too to offer a combined service.

There is no danger of the new mobile operator being in a monopolistic position since Telecom Italia Mobile (TIM) will provide a similar service within six months of the licence being issued to the new operator. What is more, Omnitel Pronto Italia (OPI) also has the right to provide a service of this type. The Commission will, of course, continue to monitor the allocation procedure for any fourth mobile licence.

The limitation on the number of mobile operators - and the ensuing barriers to entry for operators from other Member States - is a consequence of the small number of frequencies available and is not attributable to any action on the part of the Italian Government; it does not, therefore, constitute a breach of any Treaty provisions.

(1) OJ L 20, 26.1.1996, p. 59.