[G4-DMA Public Policy] TIM is determined to continue its collaborative and transparent relations with national and supranational institutions in order to facilitate dialogue on matters of mutual interest and to ensure the Group’s viewpoint is faithfully represented.
Our target audiences in this respect are:
- central national institutions: Parliament, Government, Ministries, Public Administration;
- local institutions and their associations:
- AGCOM, AGCM, the Italian Data Protection Authority; Electricity, Gas and Water System Authority
- European and international institutions: EC, European Council and Parliament, BEREC1, l’OCSE2, l’ONU3, Global Compact, l’UNEP4, l’UNFCCC5, l’ITU6 and other UN agencies.
Central and national institutions
Lobbying activities are principally conducted with the parliamentary committee members of the upper and lower houses of the Italian Parliament concerned with issues that could impact on the Company, including those of an economic and financial nature or concerning privacy, telecommunications, Internet and TV. Involvement in parliamentary hearings is also a way of examining specific issues in detail and creating opportunities for discussion about matters being debated in Parliament.
The monitoring of law-making activity among institutions often leads to amendments to individual measures being proposed.
Moreover, TIM provides information to Ministries (mainly the Ministry of Economic Development) regarding the activities of the inspection body (parliamentary questions) directed at the Group.
National legislative activity specifically monitored by TIM during 2016 mainly concerned draft legislation being examined by the Italian Parliament and the decree laws introduced by the government in power which might have an impact on the electronic communications sector.
The approval process of the following legislative measures was monitored in particular:
- law No. 11 of 28.01.2016 (delegated powers to the Government to implement directives 2014/23/EU, 2014/24/EU and 2014/25/EU of the European Parliament and of the Council, of 26 February 2014, on the award of concession contracts, on public procurement and on procurement by entities operating in the water, energy, transport and postal services sectors, as well as the reorganisation of existing rules regarding public procurement for works, services and supplies): the law includes a number of provisions regarding changes to call centre contracts;
- legislative decree no. 33 of 15/02/2016 (implementation of directive 2014/61/EU of the European Parliament and of the Council of 15 May 2014, on measures to reduce the cost of deploying high-speed electronic communications networks): the legislation introduces measures aimed at facilitating installation of the aforesaid networks, promoting the shared use of existing physical infrastructure and allowing a more efficient deployment of new physical infrastructure to reduce the installation costs;
- constitutional law of 12 April 2016 (provisions for overcoming equal bicameralism, reducing the number of parliamentarians, containing the operational costs of institutions, abolishing the CNEL and revising chapter V, part II, of the Constitution): in particular, the reform overcomes the “concurrent legislative powers” of the State and Regions (the State establishes the general principles and the Regions legislate based on these principles), bringing many areas of legislation, including the regulation of communications, back under the exclusive power of the State. This replaces the pre-existing regulatory framework which hindered the development of electronic communication networks, both fixed and mobile;
- ministerial decree of 11/05/2016 (establishment of SINFI - Sistema Informativo Nazionale Federato delle Infrastrutture [national federated infrastructure information system]): the decree introduced by the Ministry of Economic Development implements the provisions of legislative decree no. 33 of 2016;
- legislative decree no. 185 of 24.09.2016 (provisions supplementing and correcting the legislative decrees of 15 June 2015, no. 81, and 14 September 2015, nos. 148, 149, 150 and 151, pursuant to article 1, paragraph 13, of the law of 10 December 2014, no. 183): the decree includes provisions supplementing and correcting the rules on employment introduced by the “Jobs Act”;
- legislative decree no. 179 of 26/08/2016 (amendments and supplements to the Codice dell’amministrazione digitale [digital administration code] referred to in the legislative decree of 07/03/2005, no. 82, pursuant to article 1 of law 07/08/2015, no. 124, regarding the reorganisation of public administration): the legislation establishes the right for users to use their telephone credit for electronic micro-payments to public administration offices and operators of public services.
- Preparatory activities and discussions were held with institutional representatives during hearings with parliamentary committees, including those regarding the new shareholding structure of TIM and the company’s position regarding the government strategy for the development of super-fast broadband networks. Also followed and monitored were the parliamentary information-gathering surveys on the electronic communication sector, including the survey regarding “Industry 4.0”, launched in February 2016, aimed at gathering useful information with which to identify the model to be applied to the Italian industrial fabric to promote the digitisation of businesses.
Local national institutions
[G4-DMA Indirect Economic Impacts] At local level, TIM maintains constant dialogue with institutions on subjects of a general nature regarding the electronic communications sector, with particular reference to network development and to other issues of interest to the company’s business. The aim is to resolve any issues encountered, to guide the local law- making process in such a way that it respects the national reference framework, to promote the Group’s image and represent its position regarding these issues. The dialogue takes place both directly with local authorities and with their representative associations: ANCI and UPI. Monitoring and constant interaction with the decision-making centres of local institutions take place by means of hearings, including the presentation of position documents relating to the drafting of local regulations, and involvement in workshops as well as in the work of regional commissions and ministerial and specialist work groups. Furthermore, TIM frequently organises communication initiatives on specific issues of local interest.
Coordination with the company departments operating at the local level is fundamental for the purpose of acquiring information regarding the approaches and expectations of local institutions and providing suitable solutions.
Among the main subjects of dialogue with local authorities during 2016 we would highlight the following:
- the development of new ultrabroadband networks (NGAN - Next Generation Access Network) and the new LTE (Long Term Evolution) standard;
- local coverage and reducing the digital divide;
- verifying the effect of the contribution, particularly on the demand side, on the profitability of investments in broadband in industrial districts;
- the drawing-up of protocols with local authorities in order to promote the use of non- invasive techniques (mini-trenches) during excavation work during excavation work, particularly in order to speed up the development of new generation access network coverage;
- proposals for regional laws and municipal regulations regarding the installation of mobile telephony systems and electromagnetic fields (including: Implementing Guidelines for the Umbria Law, Draft Law for the Marche Region, Genoa Municipality Protocol), in order to represent the company’s requirements (particularly by submitting comments, amendments and participating in hearings) allowing the fair coexistence of the various interests involved, with a view to simplifying the rules and harmonising them with the relevant national provisions;
- proposed excavation rules, in order to ensure the consistency of the authorisation process and the respective regulations with the relevant national regulations also in order to ensure increased simplification at local level;
- the removal of public telephone equipment (telephone booths), which involved public consultation as part of a procedure agreed with AGCOM;
- promotion of TIM’s digital inclusion initiatives to facilitate the learning of new technologies and their proper use, particularly by seeking new forms of partnership with municipalities as well as other partnerships and sponsorships;
- dissemination of digital innovation and culture, particularly by promoting agreements/ partnerships with public administrations;
- promotion of TIM’s system of digital services for the creation of smart cities and particularly support for the cities of Genoa, Turin, Milan, Naples, Florence, Benevento. In this respect, we should mention: our involvement in the activities of the Genoa Smart City association, as founding members; our involvement, as a founding member, in the Torino Wireless Foundation (a technological ICT district involving national and local institutions, universities and research centres, businesses and financial institutions); our cooperation with the Municipality of Turin and the Torino Smart City Foundation for the presentation of joint projects that can be implemented within the Smart City initiatives framework;
- the performance of digital teaching test at a number of schools in the Lombardy Region, following the signing of a protocol with l’USR Lombardy;
- research activities in cooperation with the Bocconi University, aimed at studying urban agendas in eight Italian municipalities: Bergamo, Cuneo, Ferrara, Belluno, Pescara, Ancona, Taranto, Siracusa;
- verifying the feasibility of financing the cost of achieving energy savings for the company by using new national and local instruments;
- drawing up 20 regional Policy Reports aimed at taking stock of the current situation and the development of regional policies regarding digital services, network infrastructure, the digital agendaandsmart cities, particularly with referencetothe new EU fundsprogramming policy for 2014-2020. Substantial additions were made to the fourth edition 2016 with the introduction of new chapters containing information about the Piani di sviluppo regionale di natura strategica ed economica [regional strategic and economic development plans], Programmi operativi regionali (POR) [regional operational programmes], and Programmi operativi nazionali (PON) [national operational programmes] on issued surrounding ICT with an impact on local areas. The 2016 edition was completed and distributed to internal and external stakeholders in March 2016. The information contained in the documents is being updated - where available - to the last quarter of 2016.
European and international institutions
Relations with European and supranational institutions are both institutional (e.g. participation in discussion platforms, public consultations, workshops, meetings of parliamentary committees) and collaborative (meetings with the European Commission, Permanent Representatives of EU Member States, the European Parliament, Agencies or working groups and specialised studies under the auspices of EU institutions, including the Centre for European Policy Studies, etc.). The Company’s position in respect of BEREC and the European Commission is asserted through individual action and/or with the involvement of other operators.
The themes tackled at European level, which were the subject of legislative/regulatory measures of interest to the Group, include the review of the regulatory framework, which involves a review of network access obligations and of consumer rules applicable to the sector, the reform of the universal service, the institutional review of the powers of the Commission and BEREC in the implementation of the new framework. The review consists of a complex process of adoption involving both the Parliament and the Council in the adoption of new rules by 2020. TIM is actively participating in numerous public consultations launched by the European Commission and BEREC based on the Single Digital Market Strategy (and the Single Market Strategy), particularly the consultations on the review of the telecommunication framework, online platforms and the role of intermediaries, the role of OTTs and the regulation of IoT services.
TIM participated in the working group set up by the European Commission to draw up the 5G Action Plan, intended to speed up the development of the new technology and allow Europe to keep pace with Asia and the US and enhance the European approach, focused on the digitisation of vertical industries.
TIM is also particularly active in European and international discussions relating to the distribution of digital content and the protection of rights, particularly on issues such as the review of copyright in the digital scenario (the subject of future European initiatives), the review of the European directive on satellite radio broadcasting and cable retransmission, discussions and proposals regarding the responsibilities of operators/ISPs, particularly those relating to actions taken by hosting providers to combat illegal activities online, the reform of the European directive on audiovisual media services. With regard to child protection, TIM is actively involved in a particularly important EU initiative aimed at improving safety for children using the Internet. This is the ICT Coalition for Children Online, a working group of European ICT companies which holds half-yearly discussions with European institutions and the relevant stakeholders (e.g. NGOs). The activities of the “Better Internet for Kids” platform launched by Commissioner Kroes in 2011, in which TIM is involved, will be relaunched in the coming months at the behest of the current DGConnect DG. TIM is closely following the development of the various trade agreements (e.g. TTIP, TiSA) that Europe is negotiating with other countries.
As regards relations with the UN, the activities carried out as part of the Global Compact (GC) are of particular importance, taking the form of participation in the working group on Human Rights organised by the GC Network Germany and in the multiple activities of the Italian Network of the same organisation. TIM and TIM Brasil, the two Group companies which have joined the Global Compact, draw up an annual “Communication on Progress”, which reports on progress achieved by the companies in promoting and applying the 10 core principles of the Global Compact. The CoP drawn up by TIM in the summer of 2016, relating to the whole of 2015, grants it “Active” status and the “Advanced” level (compliance with the twenty-one criteria required). For further information see the Human Rights paragraph and the telecomitalia.com website.
TIM is actively involved as a sector member in the ITU (UN international agency for telecommunications), in the three sectors into which it is divided (ITU Radiocommunication Sector, ITU Telecommunication Standardization Sector, ITU Telecommunication Development Sector). It is a member of the ITU COP, the ITU child protection platform.
It also regularly attends the most significant events of the ITU.
TIM actively monitors the work of the OECD through BIAC (an association which brings together a range of companies from OECD member states) and the Permanent Representative of Italy to the OECD and the work of the competent Committees on matters of relevance to the Company, including the CDEP (Committee on Digital Economy Policy) and the respective working groups, such as the Working Party (hereinafter WP) on Communication Infrastructure and Services, the WP for Security and Privacy, the Competitiveness Committee, the Consumer Policy Committee, and the Governance and Anti-Corruption Committee. The issues dealt with during 2015 related to discussions and preparatory work for the OECD Ministerial meeting held in May 2016 in Cancun (Mexico), the review of OECD recommendations regarding electronic commerce, the review of OECD recommendations on International Mobile Roaming, the recommendation on digital security and risk management, digital convergence, as well as the issue of bilateral investment agreements and, in particular, the issue of ISDS clauses.
TIM interfaces with institutions, particularly supranational ones, individually and as a member of important associations operating on the European and international scene, such as ETNO, GSMA, Business Europe, TABC.
Relations with institutions in Brazil
TIM Brasil has reached an excellent level of relations with the institutions, at all levels of Government, Congress, the regulatory and antitrust authorities, the several associations of operators and the press. The dialogue is very intense and frequent and done on the basis of objective proposals, statements and positions designed not only to the development of specific issues for the company, but also for the entire industry.
Governmental relations activities occur at federal level primarily with the Ministry of Science, Technology, Innovation and Communications and also with several relevant Ministries like Casa Civil, Development and Industry, Justice, Cities, Education, among others.
At Congress TIM has an important dialogue in particular with Deputies and Senators that are member of the Committees involved with themes such as (but not limited to) the economic- financial nature, privacy, telecommunications and consumer protection.
Regionally, TIM Brasil maintains a permanent agenda with local institutions and authorities on general issues related to the telecommunications industry, with emphasis on the development of infrastructure and network coverage and other matters of interest to the local communities.
Addressing proposals, meetings with specific stakeholders on precise subjects, stimulating debates, active participation in public hearings and contributions in public consultations, are the main modalities of the daily interactions with all the above mentioned institutions.
Regarding the industry associations, the most important ones in which TIM Brasil is active, are:
- ABR Telecom (Brazilian Association of Telecommunications Resources), which focuses on centralized management of technology solutions in a shared environment, creating value for telecom providers;
- TelComp (Brazilian Competitive Telecommunications Association), which represents the interests of more than 60 operators, seeking the maintenance of the market competitiveness;
- SINDITELEBRASIL (tlc operators National Syndicate), which works on the coordination, defense and legal representation of the member companies, including all mobile and fixed operators;
- GSM Association, which represents the interests of mobile operators worldwide and, in a regional coverage, GSMA Latin America is a key partner on global discussions like radiofrequency management and allocation, international requirements specifications on ITU, and also related to consumer protection and activities improving the general reputation of the industry (TIM is part of the initiative “We Care”);
- ASIET (Latin American Association of Research Centers and Telecommunication Enterprises), which strives for a common position among associates based on various studies regarding numerous industry challenges in Latin America, through a public-private dialogue.
Additionally, TIM Brasil institutional presence on the regional and local levels is increasingly supported by the activity of the Instituto TIM, that aims to democratize science, technology and innovation, enabling social progress in Brazil, and particularly, maximizing the potential of the mobile network. Since July 2013, the Institute has implemented actions in 398 cities, mobilizing 58 education departments, three ministries and over four thousand public schools, benefiting 15,200 teachers and 455,000 students.
1 Body of European Regulators for Electronic Communication
2 Organisation for Economic Cooperation and Development
3 The United Nations Organisation
4 United Nations Environment Programme
5 United Nations Framework Convention on Climate Change
6 International Telecommunication Union