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TLC liberalisation in Italy. When the tail wages the dog

Sect. 1 para 3 of the Decree Law “Bersani” (named after the ministry who drafted the text) states that users must be free to shift from an ISP to another at their will, just paying anything but the “documented cost” suffered by the ISP (for instance, the remaining cost of the yearly-leased ADSL line). This provision has been celebrated as an effective way to protect consumers, no more forced to pay penalties for their own freedom of choise.

The gov’t seems unaware of a side effects of this decree: big telcos will likely retain from asking for these costs, while small and medium ISP’s – for obvious reasons – don’t. What is likely to happens, then, is that the latters will be cut-out from the user-mobility market, since nobody would subscribe a service, knowing that he have to pay for moving to another provider.

The final chapter of this tale is that – just matter of time – only the big operator will continue to stay on the market, while other players may rest in peace.

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