Carlo Cambini Tommaso Valletti

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We review recent proposals put forward by the Italian Regulator of Telecommunications (AGCOM) with the aim of reducing intrusive ex ante regulation in the industry. In particular, we discuss a) the abolition or relaxation of retail price control for the operator with significant market power, b) the merits of a system of network cap on wholesale prices and c) a margin squeeze test to detect possible anti-competitive behaviour. Notwithstanding the interesting properties of the proposed changes, we conclude that they are still premature given the current state of competition in Italy.


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