Favorable outcome for the arbitration against TI on ULL
Compensation relates to the failure to connect 11,000 FASTWEB clients
Milan, 30 January 2007 - The Board of Arbiters chaired by Professor Guido Alpa have ordered Telecom Italia to pay FASTWEB damages for more than 60 million Euro, for failure to meet its obligation to provide FASTWEB with unbundled local loop access (ULL). The Arbiters have ruled that the failed connection of approximately 11,000 FASTWEB's clients was due to negligence by Telecom Italia in the period 2001-2004. With regard to approximately 4,000 additional cases, the Board precluded FASTWEB's application, ruling that it had been filed irregularly after commencement of the arbitration proceedings.
The last mile of the telephone network is an essential infrastructure and Telecom Italia has an obligation to allow other operators to lease the twisted-pair cable linking the central office directly with the end user. This obligation, ratified by European Community's regulations, has been the subject of specific directives by the Italian Communications Authority, AGCOM. During the unbundling process, FASTWEB reported that numerous clients who had subscribed to its services had not been connected within the prescribed time, and that no plausible technical justification had been provided by Telecom Italia. FASTWEB consequently began a conciliation procedure with AGCOM and, following the total lack of response from Telecom Italia, initiated arbitration proceedings pursuant to the unbundled local loop access contract.
FASTWEB expresses its satisfaction, as its complaint has been upheld and the damage to its assets and its image has been acknowledged. The company reserves the right to sue for damages in connection with the precluded cases and is confident that Telecom Italia's new management will establish a climate of competitive market growth