US embassy cable - 03ROME1534

UNCLAS ROME 001534 
 
SIPDIS 
 
 
STATE FOR EB/CIP - TFINTON; 
COMMERCE FOR NTIA/GALLAGHER/SPECK; USDOC FOR 
4220/MAC/EUR/SED/DDEFALCO; FCC FOR AGOMEZ AND ATHOMAS; 
JUSTICE FOR CWILLNER 
 
E.O. 12958: N/A 
TAGS: ECPS, ECON, ETRD, IT 
SUBJECT: ITALY -- WIRELESS INTERNET SURVEY 
 
REF: A. SECSTATE 85946 
 
B. ROME 1084 
 
1. WI-FI HAS BEEN SLOW TO GET OFF THE GROUND IN ITALY, 
COMMUNICATIONS MINISTRY OFFICIALS ACKNOWLEDGED DURING THE 
MARCH 6-7TH U.S/ITALY BILATERAL DISCUSSIONS ON 
TELECOMMUNICATIONS. MINISTRY OFFICIALS HAVE PUBLICLY 
CRITICIZED THE COMMUNICATIONS AUTHORITY (ITALY'S FCC 
EQUIVALENT) FOR THE DELAY IN THE ISSUANCE OF WI-FI RELATED 
REGULATIONS. AUTHORITY OFFICIALS TOLD US ON APRIL 7 THAT THEY 
WILL SOON ISSUE REGULATIONS FOR PUBLIC USE OF R-LAN -- RADIO 
LOCAL AREA NETWORKS -- EQUIPMENT. 
 
2.  DURING THE MARCH 6-7TH BILATERAL DISCUSSIONS, BOTH 
MINISTRY AND AUTHORITY OFFICIALS RAISED CONCERNS ABOUT THE 
INTERFERENCE OF WI-FI SYSTEMS WITH 2G AND 3G MOBILE SYSTEMS 
(REFTEL B). THE U.S. DELEGATION, WHICH WAS HEADED BY 
AMBASSADOR DAVID GROSS OF THE STATE DEPARTMENT, REPLIED THAT, 
WHILE THE U.S. GOVERNMENT AND U.S. INDUSTRY INITIALLY HAD 
THOSE CONCERNS, NOW BOTH PARTIES SEE SYSTEMS AS 
COMPLEMENTARY. TELECOM COMPANIES, U.S. DELEGATES NOTED, SEE 
WI-FI AS PART OF A BUNDLE OF SERVICES THAT INCLUDES 2G AND 3G 
CAPABILITIES.  NOTING THAT THE 2.4 MHZ BAND IS USED MORE IN 
ITALY THAN IN THE U.S., MINISTRY OFFICIALS UNDERSCORED THAT 
SPECTRUM MANAGEMENT AND ALLOCATION OF FREQUENCIES WILL BE 
EVEN MORE CRITICAL TO AVOID INTERFERENCE. 
 
3. ITALY HAS ALLOCATED UNLICENSED RADIO-FREQUENCY SPECTRUM 
FOR USE BY WI-FI AND SIMILAR WIRELESS TECHNOLOGIES BOTH FOR 
PRIVATE AND PUBLIC USE. UNDER ITALY'S FREQUENCY ALLOCATION 
SCHEME (PNRF - PIANO NAZIONALE DI RIPARTIZIONE DELLE 
FREQUENZE), THE USE OF R-LAN SYSTEMS FOR WI-FI IS ALLOWED, IN 
THESE FREQUENCY BANDS: 2,400.0 - 2,483.5 MHZ (2.4 GHZ BAND), 
5,150 - 5,350 MHZ, 5,470 - 5,725 MHZ (5 GHZ BAND). FOR 
PRIVATE USE, SYSTEMS AT 2.4 GHZ CAN BE FREELY USED WITHOUT 
ANY FORM OF AUTHORIZATION IN INDOOR PREMISES; AUTHORIZATION 
IS NEEDED FOR OUTDOOR USAGE. OPERATORS DO NOT HAVE TO PAY FOR 
AUTHORIZATION. 
 
4. TELECOM ITALIA OFFERS INDOOR WI-FI SERVICES TO CUSTOMERS. 
SEVERAL COMPANIES ARE OFFERING OUTSIDE WI-FI SERVICES IN 
ITALY. MEGABEAM, WHICH WAS RECENTLY PURCHASED BY TELECOM 
ITALIA FOR ABOUT 11.5 MILLION EUROS, HAS CREATED HOT SPOTS IN 
THE ROME AND MILAN AIRPORTS, AS WELL AS VARIOUS MEETING ROOMS 
IN HOTELS IN ROME AND MILAN. WITH FAIRLY HIGH PRICES (115 
EUROS PER MONTH), THE SERVICE IS FOCUSED ON BUSINESS 
TRAVELERS.  TELECOM ITALIA PLANS A RAPID EXPANSION FOR WI-FI, 
AT FIRST PRIMARILY IN TRAIN STATIONS, AIRPORTS, CONFERENCE 
CENTERS, AND HOTELS.  AIRGATE, AN ITALIAN COMPANY, IS 
PLANNING TO BUILD A NATIONAL WI-FI NETWORK CALLED "SPAGHETTI 
WIRELESS", BASED ON SEATTLE'S "SEATTLE WIRELESS."  THE CITY 
OF PADUA IS IN THE PROCESS OF CREATING A CITY-WIDE WI-FI 
NETWORK.  IT HAS EIGHT NODES, OF WHICH SIX ARE OPERATIONAL, 
AND IS PLANNING ON TWELVE MORE THROUGHOUT THE CITY. 
 
5. POST WILL REPORT ON REGULATIONS FOR PUBLIC USE OF R-LAN 
UPON THEIR PUBLICATION. 
SEMBLER 
 

 
NNNN 
2003ROME01534 - Classification: UNCLASSIFIED