Van Miert set to clear Omnitel agreement

Date: 15/02/1996

COMPETITION Commissioner Karel Van Miert should soon be in a position to clear last year's agreement with the Italian government over the opening of a second mobile telephone network.

Despite the resurgence of tension between the new operator, Omnitel Pronto Italia, and the state-owned provider Telecom Italia Mobile (TIM), Commission officials are hopeful that the final conditions for clearance will be met within the next two weeks.

When Van Miert holds a press conference on 28 February on the general subject of EU telecommunications liberalisation, he hopes to be able to announce that the Italian government has carried out a key part of last year's deal with the Commission.

At the end of 1995, the Commission and Rome reached agreement on measures to allow Omnitel to compete on an equal footing with TIM.

Van Miert had reacted angrily to notification that the Italian government had asked Omnitel to pay 370 million ecu to win its operating licence, a fee that was not imposed on TIM when it began its service.

As member states began opening second mobile networks, this problem arose in five countries, but Van Miert won the agreement of all but two to pay some form of compensation for the fee.

In the case of Italy, the agreement gave Omnitel the right to discounts on fees for 'roaming' (using the TIM network), as well as the ability to start a new generation cellular phone network in 1998.

While the Commission obtained the written agreement of the Italian government concerning fair treatment for the second mobile operator, a condition of final ratification has not yet been met.

“We could clear the case on the basis of that agreement, provided the Italian government publishes in its internal legislation the script of the Commission communication on mobile telephony,” said a Commission official.

Rome gave an undertaking that they would do this as soon as possible after it was published in the Official Journal, which occurred on 26 January. However, the legislation has still not been put in place in Italy. “When they do so, we can say the deal is done,” said the official.

This comes in the same week as the Italian government attempted to mediate in the dispute between Omnitel and TIM over the roaming arrangement.

Under national law, TIM had to allow Omnitel to use its network by 13 February, as part of the agreement reached in 1994 when Omnitel received its licence.

However, TIM repeatedly said it would not provide roaming facilities unless the Italian ministry for telecommunications proved Omnitel had started its service in compliance with the licensing law.

TIM complained that Omnitel did not cover 40&percent; of territory with its own network, an essential requirement for starting the service commercially and obtaining roaming rights.

At the same time, Van Miert is poised to give the go-ahead to Omnitel itself after completing, under its own initiative, an inquiry into the structure of its shareholding and the responsibility of its partners.

Omnitel is 41.3&percent; owned by Olivetti, with the participation of US company Bell Atlantic Air Touch and German engineering firm Mannesman.