A vote to open up the Italian mobile phone market to a second service operator failed after the Italian Socialist party vetoed the proposals. The socialists were aided by the Christian Democratic Party which maintained a determined pro-monopoly silence. The possibility of one of four private consortia being allowed to compete with la Societa Italiana per l’esercizio delle Telecomunicazioni pA, SIP has thus been removed for the present. A new legislature may reconsider, but that won’t be in place until after the summer. By then, the consultative ministerial commission may be able to provide details on the appropriate terms and conditions under which a second operator would work. Carlo Vizzini, Minister of Post, says it is too early to evaluate the four submissions, although the Olivetti-led Omnitel submitted its plans early last year. The other consortia are Unitel – comprising Fiat and Finsiel Pronto Italia and Eni-Millicom. The manager of Omnitel, Giacomo Repetto, is not best pleased with the politicians, saying the postponement aggravates Italy’s position vis-a-vis other European countries where users can choose from a number of network service providers. Meanwhile, in a letter to SIP, the government acknowledged that the state phone company’s monopoly over mobile phone services will be eroded, but it promises that the company will be adequately compensated for its lost market share and revenue.
