US embassy cable - 03ROME1084

UNCLAS SECTION 01 OF 04 ROME 001084 
 
SIPDIS 
 
SENSITIVE 
 
COMMERCE FOR NTIA/GALLAGHER/SPECK; USDOC FOR 
4220/MAC/EUR/SED/DDEFALCO; FCC FOR AGOMEZ AND ATHOMAS; 
JUSTICE FOR CWILLNER 
 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01084  01 OF 04  171344Z 
E.O. 12958: N/A 
TAGS: ECPS, ETRD, ETRD, ETRD, ETRD, IT, ITECPS, ITECPS, ITECPS 
SUBJECT: U.S./ITALY BILATERAL TALKS ON COMMUNICATIONS 
POLICY: FROM BROADBAND TO WI-FI TO CYBER SECURITY 
 
REF: A. 03 ROME 250 
 
     B. 03 ROME 392 
     C. 02 ROME 3437 
     D. 02 ROME 2533 
 
SENSITIVE BUT UNCLASSIFIED.  NOT FOR INTERNET DISTRIBUTION. 
 
1. (SBU) SUMMARY. DURING RECENT BILATERAL MEETINGS ON 
COMMUNICATIONS POLICY, THE GOI UNDERSCORED ITS EAGERNESS TO 
WORK WITH THE USG ON ISSUES LEADING UP TO THE WORLD 
RADIOCOMMUNICATION CONFERENCE IN JUNE AND THE WORLD SUMMIT ON 
THE INFORMATION SOCIETY IN DECEMBER, WHEN ITALY, AS EU 
PRESIDENT, WILL SPEAK FOR THE EU.  AT THE MARCH 6-7TH TALKS, 
U.S. AND ITALIAN OFFICIALS ALSO DISCUSSED TELECOM REGULATORY 
REFORMS, TECHNOLOGICAL ADVANCES AND INCENTIVES TO PROMOTE 
THEIR USE, MARKET COMPETITION, AND CYBERSECURITY. REGARDING 
THE LATTER, ITALIAN OFFICIALS INDICATED THEY INTEND TO PLAY A 
KEY ROLE IN SHAPING THE JUST-ANNOUNCED EU CYBER SECURITY 
AGENCY. U.S. AND ITALIAN COMPANY EXECUTIVES SHARED WITH THE 
U.S. DELEGATION THEIR VIEWS ABOUT THE ITALIAN AND U.S. 
TELECOM MARKETS. END SUMMARY. 
 
2. (U) AMBASSADOR DAVID A. GROSS, U.S. COORDINATOR FOR 
INTERNATIONAL COMMUNICATIONS POLICY, STATE DEPARTMENT, LED AN 
INTER-AGENCY TEAM, WHICH INCLUDED DAS MICHAEL GALLAGHER OF 
THE NATIONAL TELECOMMUNICATIONS AND INFORMATION 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01084  01 OF 04  171344Z 
ADMINISTRATION (NTIA) OF THE COMMERCE DEPARTMENT; FEDERAL 
COMMUNICATIONS COMMISSION'S INTERNATIONAL BUREAU DEPUTY CHIEF 
ANNA GOMEZ; SENIOR ATTORNEY CARL WILLNER OF THE JUSTICE 
DEPARTMENT'S ANTI-TRUST DIVISION, ALONG WITH STATE, COMMERCE, 
AND FCC STAFF FOR THE DAY AND ONE-HALF BILATERAL DISCUSSIONS 
WITH THE ITALIAN GOVERNMENT.  MINISTER OF COMMUNICATIONS 
MAURIZIO GASPARRI AND U.S. AMBASSADOR MEL SEMBLER INAUGURATED 
THE DISCUSSIONS.  SECRETARY GENERAL VITTORIO STELO OF THE 
MINISTRY OF COMMUNICATIONS LED THE ITALIAN DELEGATION, WHICH 
INCLUDED THE FIVE DIRECTOR GENERALS OF THE MINISTRY AND 
OFFICIALS FROM THE COMMUNICATIONS AUTHORITY (ITALY'S 
REGULATORY AGENCY).  AGENDA TOPICS INCLUDED: REGULATORY 
REFORM; INTERNATIONAL ISSUES - POST-MARRAKECH AND THE WORLD 
RADIOCOMMUNICATION CONFERENCE; TECHNOLOGICAL DEVELOPMENTS, 
INCLUDING DIGITAL TV AND WI-FI; MERGERS AND ACQUISITIONS, AND 
CYBERSECURITY. 
 
RATIONALE FOR DISCUSSIONS 
 
3. (U) TIMING FOR DISCUSSIONS WITH ITALY ON COMMUNICATIONS 
POLICY WAS PROPITIOUS. ITALY'S EU PRESIDENCY WILL OCCUR AT 
THE SAME TIME WHEN MEMBER STATES ARE REQUIRED TO IMPLEMENT 
THE 2002 EU COMMUNICATIONS LEGISLATIVE PACKAGE WILL OCCUR. 
AS EU PRESIDENT, ITALY SHOULD SET THE EXAMPLE FOR AND ALSO 
COULD INFLUENCE MEMBER STATE IMPLEMENTATION. ITALY WILL HOLD 
THE EU'S LEADERSHIP POSITION DURING THE WORLD SUMMIT ON THE 
INFORMATION SOCIETY TAKING PLACE IN GENEVA IN DECEMBER 2003. 
 
REFORM/EU DIRECTIVES ON TELECOMMUNICATIONS 
 
4. (U) MINISTRY AND AUTHORITY OFFICIALS GAVE AN OVERVIEW OF 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01084  01 OF 04  171344Z 
REFORM IN THE TELECOMMUNICATIONS MARKET AND THE STATUS OF 
IMPLEMENTATION OF THE EU DIRECTIVE ON TELECOMMUNICATIONS. 
WITHIN THE PAST FOUR YEARS, THEY NOTED, THE INCUMBENT 
CARRIER, TELECOM ITALIA, HAS BEEN FULLY PRIVATIZED; ALL 
EXCLUSIVE RIGHTS HAVE BEEN ABOLISHED. AS OF JANUARY 2003, 
THERE WERE 225 LICENSED OPERATORS IN FIXED VOCAL TELEPHONY 
AND NETWORKS, OF WHICH NINE ARE LICENSED MOBILE OPERATORS. 
 
5. (U) THE LOCAL LOOP HAS BEEN UNBUNDLED. PROGRESS, HOWEVER, 
HAS BEEN SLOW, ACKNOWLEDGED MINISTRY OFFICIALS. SINCE 
UNBUNDLING WAS OFFICIALLY ANNOUNCED IN SPRING 2002, HOWEVER, 
MORE THAN 150,000 SUBSCRIBERS HAVE SWITCHED CARRIERS.  NUMBER 
PORTABILITY IS UNDERWAY.  USERS WILL BE ABLE TO HAVE THE SAME 
PHONE NUMBER EVEN WHEN THEY SWITCH FROM GSM TO THIRD 
GENERATION WIRELESS (3G) SERVICES. 
 
6. (U) THE GOI INTENDS TO INTRODUCE IN PARLIAMENT BY JULY 7, 
2003, THE LEGISLATIVE PACKAGE REQUIRED FOR APPROVAL AND 
IMPLEMENTATION OF THE FIVE EU DIRECTIVES RELATED TO 
TELECOMMUNICATIONS - FRAMEWORK, INTERCONNECTION, 
AUTHORIZATION, UNIVERSAL SERVICE, AND RADIO SPECTRUM 
DIRECTIVES.  BY OCTOBER 31ST, THE GOI INTENDS TO SUBMIT TO 
PARLIAMENT LEGISLATION RELATED TO EU DIRECTIVE 2002/58 ON 
PRIVACY AND DATA RETENTION.  GOI OFFICIALS DO NOT EXPECT 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ2198 
 
PAGE 01        ROME  01084  02 OF 04  171344Z 
ACTION EUR-00 
 
INFO  LOG-00   AID-00   CEA-01   CIAE-00  CIP-00   CTME-00  INL-00 
      DODE-00  ITCE-00  SRPP-00  EB-00    EXME-00  E-00     UTED-00 
      VC-00    FRB-00   H-01     TEDE-00  INR-00   IO-00    ITC-01 
      LAB-01   L-00     VCE-00   AC-01    NSAE-00  NSCE-00  OES-00 
      OMB-01   OPIC-01  CAEX-01  PER-00   ACE-00   SP-00    IRM-00 
      SSO-00   SS-00    STR-00   TEST-00  TRSE-00  USIE-00  R-00 
      DRL-01   G-00     SAS-00     /009W 
                  ------------------458FC7  171344Z /38 
R 171239Z MAR 03 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 8753 
INFO EU MEMBER STATES COLLECTIVE 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
DEPT OF COMMERCE WASHDC 
DEPT OF JUSTICE WASHDC 
FCC WASHDC 
 
UNCLAS SECTION 02 OF 04 ROME 001084 
 
SIPDIS 
 
SENSITIVE 
 
COMMERCE FOR NTIA/GALLAGHER/SPECK; USDOC FOR 
4220/MAC/EUR/SED/DDEFALCO; FCC FOR AGOMEZ AND ATHOMAS; 
JUSTICE FOR CWILLNER 
 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01084  02 OF 04  171344Z 
E.O. 12958: N/A 
TAGS: ECPS, ETRD, IT 
SUBJECT: U.S./ITALY BILATERAL TALKS ON COMMUNICATIONS 
POLICY: FROM BROADBAND TO WI-FI TO CYBER SECURITY 
 
PARLIAMENT TO DELAY IN ACTING ON AND APPROVING LEGISLATION 
THAT IMPLEMENTS THESE DIRECTIVES.  THE DIPLOMATIC ADVISOR TO 
MINISTER OF COMMUNICATIONS, GIANFRANCO GIORGOLO, UNDERSCORED 
THAT THE LEGISLATIVE PACKAGE WILL ESTABLISH A CLEAR 
REGULATORY FRAMEWORK IN ITALY FOR TELECOMMUNICATIONS. 
 
7. (SBU) MINISTRY OFFICIALS HIGHLIGHTED AREAS IN WHICH EX 
ANTE REGULATION MAY BE WARRANTED. THEY INCLUDE CALL 
ORIGINATION AND CALL TERMINATION; TRANSIT SERVICE; WHOLESALE 
TRUNK LEASED LINES AND UNBUNDLED ACCESS; BROADCASTING 
SERVICES AND WHOLESALE BROADBAND SERVICES. 
 
THE MARKET - EUROPE AND ITALY 
 
8. (SBU) COMMUNICATIONS AUTHORITY OFFICIALS SHARED WITH THE 
U.S. DELEGATION INFORMATION FROM A SOON-TO-BE RELEASED 
COMMISSION REPORT ON THE COMMUNICATIONS MARKET.  ACCORDING TO 
THIS REPORT, EU COUNTRIES ACCOUNT FOR 25 PERCENT OF THE WORLD 
MARKET FOR TELECOMMUNICATIONS.  IN 2003, GIVEN THE RECESSION 
IN THE EURO-ZONE, THE SHARE IS EXPECTED TO CONTRACT BY ONE 
PERCENT, WITH ASIA'S SHARE INCREASING PROPORTIONALLY.  MOBILE 
SERVICES, NOT INCLUDING HARDWARE, ACCOUNT FOR 37 PERCENT OF 
ALL TELECOM SERVICES IN EUROPE.  SUBSCRIBERS FOR MOBILE 
SERVICES IN THE EU REACHED 213 MILLION IN 2002.  PRE-PAID 
CARDS ACCOUNT FOR A SIZABLE MARKET SHARE.  IN ITALY, 78 
PERCENT OF USERS OF MOBILE SERVICES USE PRE-PAID CARDS.  TEXT 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01084  02 OF 04  171344Z 
MESSAGING AND INTERNET ON CELL PHONES ACCOUNT FOR AN 
ESTIMATED 10 PERCENT OF REVENUES FOR MOBILE OPERATORS IN 
EUROPE.  THE INTERNET HAS SPURRED GROWTH IN THE FIXED LINE 
MARKET AS WELL.  FIXED LINE TELEPHONY GREW 10 PERCENT FROM 
2001 TO 2002 IN EUROPE; EUROPE NOW HAS MORE THAN 329 MILLION 
FIXED LINES. 
 
9. (U) IN EUROPE, AND PARTICULARLY IN ITALY, THE MARKET FOR 
MOBILE IS NEARLY SATURATED. COMPETITION WILL BE FOCUSED ON 
PRICE, COMMENTED AUTHORITY OFFICIALS. 
 
3G/BROADBAND/WI-FI 
 
10. (U) FIVE 3G LICENSES HAVE BEEN ISSUED, ONE EACH TO H3G 
ITALIA, IPSE 2000, TELECOM ITALIA MOBILE (TIM), 
OMNITEL-VODAFONE, WIND.  THE LICENSES ARE FOR 20 YEARS, WITH 
COVERAGE OBLIGATIONS OF PROVISIONS TO REGIONS BY 2004 AND TO 
PROVINCIAL CAPITALS BY 2006.  ACCORDING TO THE MINISTRY, TWO 
OPERATORS, TIM AND H3G, ARE NEARLY READY TO BEGIN OPERATIONS. 
 H3G IS EXPECTED TO START LIMITED SERVICE IN THE SUMMER.  THE 
GOI IS EXPLORING DIFFERENT INCENTIVES TO ENCOURAGE 3G 
DEVELOPMENT.  ONE BARRIER TO START UP IS THE DIFFERENT 
REGIONAL STANDARDS FOR ELECTRONIC MAGNETIC TRANSMISSION 
EMISSIONS (EMTS).  THE GOI IS WORKING WITH REGIONAL 
AUTHORITIES TO SET A NATIONAL STANDARD FOR EMISSIONS, AND 
WILL UNDERTAKE A PUBLIC EDUCATION CAMPAIGN TO ASSUAGE THE 
PUBLIC'S CONCERNS ABOUT EMTS. 
 
11. (U) THE DEVELOPMENT AND EXPANSION OF BROADBAND IS A KEY 
GOAL FOR THE MINISTRY, AND FOR THE ITALIAN GOVERNMENT AS A 
WHOLE.  MINISTRY OFFICIALS INDICATED THAT BROADBAND 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01084  02 OF 04  171344Z 
DEVELOPMENT WILL BE ONE OF THE ITALY'S PRIORITIES AS EU 
PRESIDENT. 
 
12. (SBU) THE GOVERNMENT IS FINE-TUNING A PLAN FOR BROADBAND 
DEVELOPMENT, WHICH INCLUDES PUBLIC FUNDING OF NEARLY ONE 
BILLION EUROS OVER FIVE YEARS FOR PUBLIC DEMAND/USE.  THE 
MINISTRY FOR INNOVATION AND TECHNOLOGY HAS CREATED AN 
EXECUTIVE COMMITTEE FOR BROADBAND DEVELOPMENT.  THE EVENTUAL 
AIM OF THE GOVERNMENT'S EFFORTS IS TO HAVE BROADBAND COVERAGE 
FOR 85-90 PERCENT OF PUBLIC ADMINISTRATION, 65 PERCENT OF 
BUSINESSES AND 35 PERCENT OF HOUSEHOLDS.  COMMUNICATIONS 
MINISTRY OFFICIALS ARGUED THAT BROADBAND'S POTENTIAL IN ITALY 
IS GREATER THAN IN THE REST OF EUROPE.  GIVEN ITALY'S VARIED 
TOPOGRAPHY AND ITS ANCIENT RUINS, THE LAYING OF CABLE LINES 
PROVED DIFFICULT.  CABLE TRANSMISSION NEVER TOOK OFF. 
 
13. (U) WI-FI HAS JUST BEGUN IN ITALY, ACKNOWLEDGED MINISTRY 
OFFICIALS.  ITALY'S NATIONAL PLAN FOR FREQUENCIES ENVISIONS 
THREE BANDS FOR WI-FI.  A DECREE ISSUED IN FEBRUARY OPENS 
ACCESS TO WI-FI, BOTH FOR PUBLIC AND PRIVATE USE.  ALTHOUGH 
NO OFFICIAL LICENSE IS REQUIRED, POTENTIAL WI-FI OPERATORS 
MUST INFORM THE MINISTRY PRIOR TO STARTING UP OPERATIONS. 
 
TERMINATION COSTS 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ2204 
 
PAGE 01        ROME  01084  03 OF 04  171345Z 
ACTION EUR-00 
 
INFO  LOG-00   AID-00   CEA-01   CIAE-00  CIP-00   CTME-00  INL-00 
      DODE-00  ITCE-00  SRPP-00  EB-00    EXME-00  E-00     UTED-00 
      VC-00    FRB-00   H-01     TEDE-00  INR-00   IO-00    ITC-01 
      LAB-01   L-00     VCE-00   AC-01    NSAE-00  NSCE-00  OES-00 
      OMB-01   OPIC-01  CAEX-01  PER-00   ACE-00   SP-00    IRM-00 
      SSO-00   SS-00    STR-00   TEST-00  TRSE-00  USIE-00  R-00 
      DRL-01   G-00     SAS-00     /009W 
                  ------------------458FF5  171345Z /38 
R 171239Z MAR 03 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 8754 
INFO EU MEMBER STATES COLLECTIVE 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
DEPT OF COMMERCE WASHDC 
DEPT OF JUSTICE WASHDC 
FCC WASHDC 
 
UNCLAS SECTION 03 OF 04 ROME 001084 
 
SIPDIS 
 
SENSITIVE 
 
COMMERCE FOR NTIA/GALLAGHER/SPECK; USDOC FOR 
4220/MAC/EUR/SED/DDEFALCO; FCC FOR AGOMEZ AND ATHOMAS; 
JUSTICE FOR CWILLNER 
 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01084  03 OF 04  171345Z 
E.O. 12958: N/A 
TAGS: ECPS, ETRD, IT 
SUBJECT: U.S./ITALY BILATERAL TALKS ON COMMUNICATIONS 
POLICY: FROM BROADBAND TO WI-FI TO CYBER SECURITY 
 
14. (U) THE TERMINATION COST OF FIXED TO MOBILE NETWORKS IN 
ITALY IS IN EXCESS OF COSTS.  U.S. FIRMS HAVE COMPLAINED 
ABOUT THESE COSTS, AND IN JANUARY 2003, COMPTEL FILED A 
COMPLAINT IN THE OFFICE OF THE U.S. TRADE REPRESENTATIVE'S 
(USTR'S) SECTION 1377 REVIEW.  WHILE THE U.S. DELEGATION 
PRAISED THE AUTHORITY'S RECENT DECISION TO SET NEW TARIFFS 
FOR FIXED TO MOBILE INTERCONNECTION, AT 14.95 EURO CENTS FOR 
TERMINATION, A REDUCTION BY 12 PERCENT, THE U.S. ALSO 
EMPHASIZED THE NEED FOR FUTURE REDUCTIONS.  REGULATORY 
OFFICIALS TOLD THE U.S. DELEGATION THAT THEY PLAN TO REDUCE 
TERMINATION COSTS FURTHER IN 2004 AND 2005, IN THE RANGE OF 
20 PERCENT, AND WILL INTRODUCE A NEW BASKET OF FIVE SERVICES 
SUBJECT TO A PRICE CAP. 
 
MULTILATERAL ISSUES - ITU, WRC, WSIS 
 
15. (SBU) THE TWO DELEGATIONS DISCUSSED AT LENGTH THEIR 
CONCERNS ABOUT THE OUTCOME OF THE MARRAKECH MEETING OF THE 
ITU PLENIPOTENTIARY WHICH TOOK PLACE IN OCTOBER 2002. 
DIPLOMATIC ADVISOR GIORGOLO UNDERSCORED THE GOI'S FRUSTRATION 
WITH THE MEETING AND CONCERN THAT ITALY'S POSITIONS WERE NOT 
HEARD.  IN PARTICULAR, ITALY IS CONCERNED THAT ITS REDUCTION 
IN CONTRIBUTION BY FIVE UNITS WILL LEAD TO A COMMENSURATE 
LOSS IN INFLUENCE. 
 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01084  03 OF 04  171345Z 
16. (SBU) THE U.S. IS CONCERNED ABOUT THE FOCUS OF THE ITU, 
COMMENTED AMBASSADOR GROSS.  THE U.S. WAS DISAPPOINTED WITH 
THE "COMPROMISE" THAT FORCED COUNTRIES TO REDUCE THEIR 
CONTRIBUTIONS BECAUSE OF THE INCREASED VALUE OF EACH SHARE. 
THE U.S. WANTED THE VALUE OF EACH SHARE TO STAY THE SAME. 
GROSS NOTED THE USG'S CONCERN ABOUT THE PREMATURE 
ELECTIONEERING OF POTENTIAL CANDIDATES FOR ITU; ELECTIONS ARE 
NOT FOR THREE AND A HALF YEARS. 
 
17. (SBU) FABIO BIGI, SENIOR COUNSELOR FOR THE MINISTRY OF 
COMMUNICATIONS, ARGUED THAT THE CENTRAL ROLE OF THE ITU AFTER 
MARRAKECH SHOULD BE THE DEVELOPMENT OF WORLDWIDE 
COMMUNICATIONS.  THE GENERAL SECRETARIAT SHOULD SUPPORT 
ACTIVITY OF THE RADIOCOMMUNICATION, STANDARDIZATION, AND 
DEVELOPMENT SECTORS.  THE COST OF RUNNING THE ITU, HE ARGUED, 
SHOULD NOT BE INCREASED.  THE SECRETARIAT SHOULD EVALUATE THE 
ITU'S SERVICES AND PRODUCTS, ESTABLISH PRIORITIES, AND 
IMPROVE MANAGEMENT AND ACCOUNTABILITY.  THE ITU SHOULD 
UNDERTAKE STEPS TO BRIDGE THE DIGITAL DIVIDE, HE URGED.  IN 
ADDITION, THE ITU SHOULD FAVOR THE UNIVERSAL ACCESS TO 
TELECOMMUNICATIONS SERVICES AND PRODUCTS. 
 
18. (SBU) MINISTRY OFFICIALS EXPRESSED THEIR HOPE THAT THE 
ITU WILL CONDUCT STUDIES TO ENCOURAGE THE DEVELOPMENT OF 3G 
SYSTEMS.  THE ITU ALSO SHOULD WORK ON FREQUENCY BAND 
ALLOCATIONS.  IN PREVIOUS ITU CONFERENCES, THEY NOTED, SOME 
FREQUENCY BANDS WERE IDENTIFIED AND ISSUED.  SUCH ALLOCATIONS 
ARE ESSENTIAL, THEY ARGUED, TO GIVE COMPATIBILITY TO 3G 
SYSTEMS AND TO ENCOURAGE THE VIABILITY OF GALILEO. 
 
19. (SBU) BIGI, GIORGOLO, AND OTHER ITALIAN DELEGATES 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01084  03 OF 04  171345Z 
UNDERSCORED THEIR EAGERNESS TO WORK WITH THE U.S. ON ITU AND 
OTHER MULTILATERAL ISSUES.  THEY NOTED THAT IT WAS OBVIOUS IN 
MARRAKECH THAT THE U.S. AND ITALY SHARED ABOUT 90 PERCENT OF 
THE SAME POSITIONS.  THE TWO GOVERNMENTS COULD HAVE COMBINED 
STRATEGIES AND TACTICS, BIGI COMMENTED.  THE GOI EMPHASIZED 
ITS DESIRE TO WORK WITH THE U.S. IN THE LEAD UP TO THE WRC IN 
JUNE AND THE WORLD SUMMIT ON THE INFORMATION SOCIETY IN 
DECEMBER.  REGARDING THE WRC, ITALY'S POSITION ON WIRELESS 
LOCAL AREA NETWORKS IS DIFFERENT FROM THE EU CONSENSUS, 
GIORGOLO POINTED OUT. 
 
LEGAL FRAMEWORK 
 
20. (U) AT THE TIME OF THE BILATERALS, MINISTRY UNDER 
SECRETARY INNOCENZI WAS TESTIFYING BEFORE PARLIAMENT ON THE 
 
SIPDIS 
LEGGE GASPARRI (THE LAW NAMED AFTER MINISTER OF 
COMMUNICATIONS GASPARRI).  THE BILL, INTRODUCED TO PARLIAMENT 
IN SEPTEMBER 2002, FOCUSES PRIMARILY ON MEDIA OWNERSHIP. 
ACCORDING TO MINISTRY OFFICIALS, THE BILL IS BASED ON AN 
INTEGRATED ANTI-TRUST REGIME, WHICH TAKES INTO ACCOUNT 
EVERYTHING FROM TELEVISION, INTERNET, TELECOMMUNICATIONS, 
PUBLISHING.  THE LEGGE GASPARRI ALSO SETS THE FRAMEWORK FOR 
THE PRIVATIZATION OF THE PUBLIC TELEVISION OPERATOR AND 
SERVICE PROVIDER, RAI.  MORE THAN 2000 AMENDMENTS HAVE BEEN 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ2210 
 
PAGE 01        ROME  01084  04 OF 04  171346Z 
ACTION EUR-00 
 
INFO  LOG-00   AID-00   CEA-01   CIAE-00  CIP-00   CTME-00  INL-00 
      DODE-00  ITCE-00  SRPP-00  EB-00    EXME-00  E-00     UTED-00 
      VC-00    FRB-00   H-01     TEDE-00  INR-00   IO-00    ITC-01 
      LAB-01   L-00     VCE-00   AC-01    NSAE-00  NSCE-00  OES-00 
      OMB-01   OPIC-01  CAEX-01  PER-00   ACE-00   SP-00    IRM-00 
      SSO-00   SS-00    STR-00   TEST-00  TRSE-00  USIE-00  R-00 
      DRL-01   G-00     SAS-00     /009W 
                  ------------------45900F  171346Z /38 
R 171239Z MAR 03 
FM AMEMBASSY ROME 
TO SECSTATE WASHDC 8755 
INFO EU MEMBER STATES COLLECTIVE 
AMCONSUL FLORENCE 
AMCONSUL MILAN 
AMCONSUL NAPLES 
DEPT OF COMMERCE WASHDC 
DEPT OF JUSTICE WASHDC 
FCC WASHDC 
 
UNCLAS SECTION 04 OF 04 ROME 001084 
 
SIPDIS 
 
SENSITIVE 
 
COMMERCE FOR NTIA/GALLAGHER/SPECK; USDOC FOR 
4220/MAC/EUR/SED/DDEFALCO; FCC FOR AGOMEZ AND ATHOMAS; 
JUSTICE FOR CWILLNER 
 
                       UNCLASSIFIED 
 
PAGE 02        ROME  01084  04 OF 04  171346Z 
E.O. 12958: N/A 
TAGS: ECPS, ETRD, IT 
SUBJECT: U.S./ITALY BILATERAL TALKS ON COMMUNICATIONS 
POLICY: FROM BROADBAND TO WI-FI TO CYBER SECURITY 
 
ADDED ON TO THE LEGGI GASPARRI. TIMETABLE FOR PASSAGE IS 
STILL NOT CERTAIN. 
 
21. (U) THE ITALIAN PARLIAMENT HAS MANDATED THE END OF ANALOG 
TV TRANSMISSION AND ADOPTION OF DIGITAL BY 2006. THE MINISTER 
AND AUTHORITY ARE WORKING ON A NATIONAL FREQUENCY PLAN, 
ALTHOUGH EACH REGION WILL HAVE ITS OWN FREQUENCY NETWORK. 
THE AUTHORITY WILL ISSUE LICENSES FOR DIGITAL TV.  NO SINGLE 
PROVIDER WILL BE ABLE TO USE MORE THAN 20 PERCENT OF THE 
NATIONAL DIGITAL SPECTRUM. 
 
CYBER SECURITY 
 
22. (U) THROUGHOUT THE TWO DAYS OF DISCUSSIONS, THE 
PROTECTION OF CRITICAL TELECOM AND IT NETWORKS WAS A COMMON 
THEME. FOLLOWING LAST MAY'S CONFERENCE ON CYBER-SECURITY, 
CO-SPONSORED BY THE EMBASSY AND THE OFFICE OF THE PRIME 
MINISTER, THE MINISTRIES OF COMMUNICATION AND OF INNOVATION 
AND TECHNOLOGY JOINTLY FORMED AN ADVISORY COMMITTEE ON 
CYBER-SECURITY.  SECRETARY GENERAL OF THE MINISTRY OF 
COMMUNICATIONS VITTORIO STELO HEADS THIS COMMITTEE. 
 
23. (SBU) PROCLAIMING THAT "WE CAN NOT BE FREE, IF NOT SAFE," 
STELO UNDERSCORED THE NEED FOR NETWORK SYSTEMS THAT ARE FAST, 
MODERN, EFFICIENT AND SECURE.  THE ADVISORY COMMITTEE, WHICH 
HE HEADS, IS EXPLORING THE DEVELOPMENT OF A COMPUTER EARLY 
                       UNCLASSIFIED 
 
PAGE 03        ROME  01084  04 OF 04  171346Z 
RESPONSE TEAM (CERT) IN ITALY, PROMOTING THE AWARENESS OF THE 
NEED TO PROTECT SYSTEMS, WORKING WITH THE PRIVATE SECTOR. 
THE COMMITTEE WILL EVENTUALLY DESIGN A NATIONAL STRATEGY FOR 
THE PROTECTION OF NETWORKS USED BY THE PUBLIC ADMINISTRATION. 
 
24. (SBU) GOI OFFICIALS DISCUSSED IN BRIEF THE JUST-CREATED 
EU CYBER SECURITY AGENCY. SINCE THE MANDATE AND STRUCTURE OF 
THIS AGENCY IS STILL ON THE DRAWING BOARDS, THE GOI WANTS TO 
PLAY A SIGNIFICANT ROLE IN SHAPING THIS AGENCY. ACCORDING TO 
COMMITTEE MEMBERS, FUNDING OF 24 MILLION EUROS HAS BEEN 
PROVIDED FOR THE FIRST YEAR FOR THIS AGENCY.  UPON THE 
ENLARGEMENT OF THE EU, ANNUAL FUNDING WILL INCREASE BY AT 
LEAST NINE MILLION EUROS.  THE GOI ALSO INTENDS TO MAKE 
CRITICAL INFRASTRUCTURE PROTECTION (CIP) A TOP PRIORITY AS EU 
PRESIDENT, ACCORDING TO MINISTRY OFFICIALS.  ITALIAN 
OFFICIALS ARE EAGER TO CONTINUE WORKING WITH THE U.S. ON CIP, 
AND ARE PARTICULARLY INTERESTED IN EXPLORING JOINT R&D 
PROJECTS AND COMBINING EFFORTS ON CERTIFICATION OF SOFTWARE 
AND SYSTEMS. 
 
PRIVATE SECTOR 
 
25. (U) ON THE MARGINS OF THE OFFICIAL DISCUSSIONS, THE U.S. 
DELEGATION MET SEPARATELY WITH REPRESENTATIVES OF MAJOR U.S. 
TELECOM COMPANIES (VERIZON, AT&T, MOTOROLA) AND ITALIAN 
(TELECOM ITALIA, EUTELSAT, RAI, WIND, TELEPIU AND OTHERS). 
THE ISSUE OF TERMINATION COSTS DOMINATED THE SESSION WITH THE 
U.S. PRIVATE SECTOR. ON ONE HAND, AT&T AND OTHERS COMPLAINED 
ABOUT THE HIGH COSTS, WHILE VERIZON, WHICH IS THE MINORITY 
SHAREHOLDER IN OMNITEL-VODAFONE, MAINTAINED THAT SUCH COSTS 
WERE JUSTIFIED. VERIZON AND OMNITEL EXECUTIVES ARGUED THAT 
                       UNCLASSIFIED 
 
PAGE 04        ROME  01084  04 OF 04  171346Z 
TELECOM COMPANIES ARE TOO HEAVILY REGULATED IN ITALY. ITALIAN 
COMPANIES INQUIRED ABOUT DIGITAL TELEVISION AND BROADBAND 
DEVELOPMENT IN THE UNITED STATES, AND EXPRESSED OPTIMISM 
ABOUT THE DEVELOPMENT AND EXPANSION OF BOTH IN ITALY. 
 
COMMENT 
 
26. (SBU) WE FOUND THE GOI EAGER AND WILLING TO DISCUSS AND 
WORK WITH US ON REGULATORY ISSUES COMMON TO BOTH, TO EXCHANGE 
IDEAS FOR ENCOURAGING THE DEVELOPMENT AND USE OF NEW 
TECHNOLOGIES, AND TO COLLOBORATE PRIOR TO KEY MULTILATERAL 
MEETINGS ON COMMUNICATIONS POLICY. IN SPECIFIC AREAS SUCH AS 
THE PREPARATIONS FOR THE WORLD RADIOCOMMUNICATION CONGRESS 
AND THE WORLD SUMMIT ON INFORMATION SOCIETY AND IN 
CYBER-SECURITY, PARTNERSHIP WITH ITALY WILL BE INVALUABLE. 
END COMMENT. 
 
27. EB/CIP HAS CLEARED THIS CABLE. 
 
SEMBLER 
 
                       UNCLASSIFIED 
 
> 
 2003ROME01084 - Classification: UNCLASSIFIED