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Rai presidency and 5G tender: it will be a hot autumn

The Chambers will reopen next week and Deputy Prime Minister Salvini will have to resolve the dilemma of the Rai presidency: either Marcello Foa resigns and the focus is on a new name in agreement with Silvio Berlusconi or one of the current councilors will have to be appointed president. The competition on the 10 MHz frequencies will also start by the 700th: one winner or many?

Rai presidency and 5G tender: it will be a hot autumn

A complex season is about to begin for the world of telecommunications. At the center there are two important themes: the first concerns the start of the procedures tender for the reassignment of frequencies around 700 Mhz, the latter refers to reorganization of the new Rai governance following the application of the 2015 Law.

On the first point, the announcement and the tender specifications were published on 6 August on the basis of the rules defined by the Communications Regulatory Authority with its May resolution. Luigi Di Maio, Deputy Prime Minister, commented: "A new stage begins today on the journey that will lead Italy to adopt an innovative technology, the 5G network, which is not simply an evolution of 4G, but is a platform that it opens up new development opportunities for our economic system”.

COUNTDOWN TO THE 5G RACE

By September 10th the operators admitted to the tender (Iliad, Telecom, Wind, Fastweb, Vodafone, Linkem and Open Fiber) provided that no obstacles arise following the Cairo Group's appeal to the TAR presented in July, they will present the envelopes with the offers. With regard to the tender specifications, a novelty is expected that will raise many perplexities. Even if it is a procedure provided for in detail by the Community directives implemented by our legal system, for Iliad the tender has already been won, as the only foreign competitor to enjoy the privileged lane established for new entrants.

For this game the stakes are very high, both in terms of economics and technology. The value of the tender, estimated at over 2,5 billion, has already been included in the budget law. The State expects something more but, apparently, the companies do not intend to play upside that much. For example, from Tim environments, waiting for the next Board of Directors meeting on 10 September, the confirmation of participation leaks out but without particular competitive ambitions: "we will be in the game, we will not let ourselves be cut off from the competitors". The hypothesis that there could be a preventive agreement between competitors to "calm down" the offers does not appear entirely science fiction, even if it would run into the Antitrust censorship. The cake is large and there could be room for everyone.

The main object of the tender is the future of 5G, considered the fundamental variable for the country's technological development. It is a question of considerably expanding the possibility of connecting an infinite number of devices connected to the network to make room for countless applications: from the IOT to artificial intelligence, from public utility services to multimedia entertainment and therefore to new models of use of audiovisual services.

RAI STALL AFTER THE NO TO MARCELLO FOA

This last note brings us to the second topical issue: the start of the new season of the public radio and television service in the aftermath of the first application of the 2015 law, strongly desired by the previous government led by Matteo Renzi. The new regulatory provision has brought Rai back under more marked government control, expressed with the appointment of the new figure of the Chief Executive Officer indicated directly by the Ministry of the Economy. The Law also provides that the appointment of the Chairman of the BoD must be proposed by the Board of Directors and subsequently ratified by the Rai Parliamentary Supervisory Commission with a 2/3 majority.

Last July 18 were new councilors appointed by Parliament (two House and two Senate: Giampaolo Rossi, Igor De Biasio, Rita Borioni and Beatrice Coletti) while the employees elected Riccardo Laganà as their representative on the new BoD. As known, the Supervisory Authority, in the session of 1 August, rejected the candidacy of Marcello Foa (the other adviser expressed by the Government) as President because, as stated by Maurizio Gasparri (FI) "the method was wrong". Now the situation is in full stalemate: Foa continues to chair the board as senior councilor but cannot carry out any relevant act, as the Supervisory Authority expressly instructed him again with a note dated 7 August. Furthermore, the specter of what happened in the past looms, when the BoD proceeded to carry out acts without formal legal coverage (see the Meocci case, for which economic compensation was requested).

Next week, with the reopening of the Chambers, the situation will have to be taken back in hand but, at the moment, there do not seem to be any solutions at hand. First there is a uncertain political framework: Lega and M5S do not seem to have converging ideas on the subject. The burning match is in the hands of Matteo Salvini who would like to keep track of Foa. It's hard to imagine that his candidacy could be resubmitted. Of the two each: or Foa resigns and the League presents a new councilor (with the prior agreement of Silvio Berlusconi, its main coalition ally) o the Chairman is among the current members of the BoD. Other hypotheses do not seem easy to apply, including that of the evoked ghost of the commissioner. In fact, this is a case applicable in certain regulatory conditions which is not easy to recognize in the complexity and specificity of Rai.

Autumn knocks on the doors of Viale Mazzini and requires commitments that cannot be derogated from: first of all define the new Business Plan and the editorial one, as required by the recently approved Service Agreement. His future is at stake, any delay is guilty.

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