BRUSSELS, Belgium-The European Commission has asked the government of Italy to create a level playing field between two cellular operators competing in Italy’s digital phone market. The commission has expressed concern with the licensing procedure in other states as well.
“In the selection procedures screened to date, it appears that the use of auctions for the selection of the second operator only leads to unfair conditions and thus threatens to thwart competition in the developing GSM market,” according to a recent commission statement.
The use of financial bids can place a selective burden on new, innovative technologies that can ultimately disadvantage future users, the commission said.
Telecom Italia Mobile, a spin-off of government-owned Telecom Italia, operates analog and Global System for Mobile communications networks. Telecom Italia Mobile did not pay for its GSM license.
The new competitor in Italy’s GSM market is Omnitel-Pronto Italia, of which AirTouch Communications Inc. holds 11.7 percent interest.
Karel Van Miert, who gauges competition issues for the commission, is concerned that Omnitel-Pronto had to pay for an operating license, but Telecom Italia Mobile did not.
Van Miert is asking that Telecom Italia make an identical payment or make corrective measures equivalent in economic terms to Omnitel’s payment. Compensation might involve better interconnection with the national operator’s network.
