US embassy cable - 03ROME4227

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