commiss decis februari declar concentr compat common market case iv siemen italtel english text authent ec commiss european commun regard treati establish european commun regard council regul eec decemb control concentr undertak articl thereof regard eea agreement articl thereof regard commiss decis octob initi proceed case regard opinion advisori committe concentr abovement oper concern establish joint ventur stet società finanziaria telefonica azioni stet siemen aktiengesellschaft siemen oper parti march stet siemen sign memorandum understand aim creation european telecom group capabl plai major role intern supplier notifi oper parti transfer joint ventur italian subsidiari italtel siemen telecomunicazioni st develop manufactur sale servic activ field telecommun stet siemen creat hold stet transfer initi capit stock italtel remain equiti contribut siemen contribut transfer capit stock st amount cash stet italian compani capit share ordinari vote share own istituto la ricostruzion industrial spa iri stet coordin activ group compani oper field telecommun stet oper fulli independ compani stock quot milan stock exchang iri function limit hold compani behalf italian state purpos notif stet consid econom unit independ power decis recit merger regul italtel manufactur market compani stet telecommun sector stet hold italtel regist share italtel activ develop produc market system equip public privat telecommun field switch transmiss system mobil radio network pbx termin siemen publicli held german industri electron compani ultim parent siemen group compani princip activ siemen industri build system drive standard product autom automot system power gener kwu power transmiss distribut semiconductor medic engin public commun network network system passiv compon electron tube privat commun system defens electron transport system st wholli own italian subsidiari siemen manufactur sale servic activ field public privat telecommun equip system servic includ public privat switch transmiss fix mobil radio network termin equip privat market year work ration italian telecommun sector current year singl telecommun oper establish resolut sharehold sip italc iritel telespazio sirm deed merg concessionair compani sip sign juli retrospect effect account fiscal term januari merger implement august retain present sip entitl adopt telecom italia spa legal purpos result oper stet ordinari share telecom italia iri ordinari share telecom italia list stock market remain part share capit held privat minor sharehold abovement oper subsequ resolut major part step complet plan reorgan italian telecommun sector line approv italian govern compani activ provis telecommun servic telecom italia separ stet group compani charg equip manufactur activ italtel sirti aet remain step reorgan plan concern transfer telecom italia mobil phone oper space divis independ compani italtel technolog partner past establish number agreement amp includ acquisit amp minor stake capit share italtel agreement amp termin amp sold stake back stet ii concentr joint control stet siemen share capit joint ventur joint ventur member board director stet siemen appoint member ninth member chairman board design stet approv siemen board govern bodi joint ventur author adopt resolut matter reserv virtu law sharehold meet resolut kei decis adopt board director approv stet siemen repres decis includ approv strateg busi plan yearli budget propos ceo appoint remov senior offic joint entiti board member hold subsidiari regard matter reserv sharehold meet decis sharehold agreement parti commit vote share conform propos previous approv board parti veto princip decis joint ventur mention point joint control joint ventur full function entiti parti transfer joint ventur italian subsidiari activ manufactur telecommun equip oper bring industri merger activ parti product area switch transmiss radio system mobil radio privat commun system termin joint ventur asset resourc perform function autonom entiti includ amp manufactur distribut main product public telecommun sector public switch system transmiss bulk sale joint ventur continu absorb italian telecom oper control parent stet high level sale parent downstream market lead question autonomi joint ventur true forese futur telecom italia buyer public telecom market due infrastructur monopoli fact manufactur telecommun equip auxiliari activ provis servic absenc coordin siemen remain activ product market joint ventur itali stet withdraw market concern transfer relev busi joint ventur except aet subsidiari stet activ market transmiss affect oper siemen retain busi activ transmiss itali european level aet turnov transmiss minor import repres total market potenti coordin aris situat minim fact activ aet transmiss market itali minor import relat activ merg entiti regard role marconi competitor italtel relev market consid recent marconi italian compani form part gec group finmeccanica compani stet belong italian state hold compani iri establish concentr joint ventur oper number commun market segment includ ptt network manag supervisori system infrastructur cellular radio network termin public cellular radio network parti present iri ultim hold compani finmeccanica own share capit marconi finmeccanica joint ventur stet stake siemen italtel joint ventur link stet finmeccanica oper separ econom unit conduct busi independ effect siemen remain activ joint ventur market transfer asset expertis high tech product concern costli commerci unreason stet attempt enter market relev risk coordin aris notifi oper iii commun dimens undertak concern combin aggreg worldwid turnov excess ecu million stet achiev turnov ecu million siemen ecu million financi year end septemb commun wide turnov ecu million achiev third aggreg commun wide turnov member state oper commun dimens oper eea cooper case mean articl protocol eea agreement iv relev product market propos transact concern broadli public privat telecommun system equip sector purpos identifi relev affect product market parti subdivid sector product market public switch system transmiss radio system mobil radio network likewis subdivid privat switch kei telephon system kt commun termin public telecommun public switch system interconnect servic user switch servic cover voic data imag text main network switch node character local switch function interconnect end user transit exchang interconnect transmiss link intern transit exchang provid intern servic past switch node built analogu mode public switch equip analogu technolog gradual replac europ equip digit synchron mode extens network likewis carri digit technolog itali process digit network complet expect reach end parti current life cycl public switch system year lengthi life cycl rapid progress due possibl adapt updat softwar programm run switch equip reengin part system present major technolog trend influenc develop public switch increas softwar provid intellig network exampl trend tnm telecommun network manag intellig network os oper system access network stand modul open interfac continu upgrad enhanc network featur servic softwar frequent updat month year regular basi life span year futur major develop public switch system introduct asynchron transfer mode atm technolog broadband transmiss voic data imag text technolog present undergo technic commerci evalu telecom oper field trial carri european countri includ itali actual introduct public network expect end futur atm switch depend attitud telecom oper reluct replac expens equip fulli depreci forc competit emerg liber market great certainti regard atm find larg scale applic voic telephoni restrict initi overlai network busi servic applic market sourc atm switch expect repres sale switch europ year time regard evolut life cycl public switch equip thought major technolog develop switch softwar hardwar product expand rang function serv shorten life cycl exist equip trend expect continu year transmiss transport function traffic local central switch offic transit central switch offic leas line traffic busi custom cabl optic main build block transmiss digit multiplex optic line termin parti activ cabl field latest major develop transmiss transit synchron digit hierarchi sdh technolog plesiochron digit hierarchi pdh network manag system equip underwai technolog enabl atm broadband switch expect year sdh repres transmiss equip market oper tnm futur oper open interfac thought introduct open market enforc competit increas migrat servic function central offic switch local access network life cycl transmiss year major technolog regard life cycl includ major redesign year pdh equip hardwar intens life cycl sdh equip softwar intens expect behav life cycl switch equip radio system line sight radio technolog altern cabl inform transport switch offic subscrib central offic recent import role radio interconnect larg busi custom switch network corpor privat virtual network line sight radio todai appli interconnect mobil radio base station market segment oper cabl infrastructur radio system transmiss migrat sdh amp expenditur estim level transmiss parti parti includ market microwav uhf vhf radio line sight antenna feeder cabl oper support system parti confirm italtel compani control stet activ radio system market reason market affect product market analyz mobil radio network commun network fix mobil network longer user radio coverag mobil network major technolog innov mobil commun network introduct gsm pan european digit mobil commun system gsm architectur defin gsm recommend promulg etsi eea countri evolut area expect provis increas proport narrowband servic mobil cellular system thought signific growth experienc custom demand mobil servic lead introduct technolog gener infrastructur expect direct satellit commun thought gsm technolog innov cycl year foreseen privat telecommun privat telecommun system privat branch exchang pbx kei telephon system kt commun user public privat connect public network trunk line oper stand system network environ modern isdn pbx kt provid servic fax pc interwork video conferenc network manag present case data commun equip exclud market definit siemen italtel specif address market segment sale data commun equip margin turnov sale occasion connect integr oem data product complex project reason analysi notifi concentr restrict privat voic transmiss equip question data transmiss includ market left open parti point constantli increas cost amp privat telecommun turnov due heavi amp competit market character rapid introduct addit technolog increasingli shorter time period life cycl rang commun termin parti relev year siemen italtel sold telephon fax machin cellular telephon includ product affect relev product market provid separ figur relat market estim market share separ type termin notifi transact rais competit issu domin product market privat termin separ narrow market type termin question exact product market definit left open relev product market defin parti confirm competitor telecom oper investig relev geograph market overlap parti activ main impact oper itali italtel limit sale public telecom equip ecu million germani public switch limit sale transmiss equip germani netherland portug spain market share case sale mobil radio network equip worth ecu million greec public telecommun equip parti argu notif strict applic sip telecom italia council direct eec util public procur direct current level standard ensur barrier access italian market public telecommun equip import public procur direct transpos italian law parti sip oper intern rule complianc direct includ creation qualif system regist qualifi supplier commiss defin geograph market public telecommun equip decis eec alcatel telettra market public telecommun equip found nation merger affect spain factor motiv nation market definit specif situat spanish telecommun market time telefonica spanish telecommun oper tradition purchas local supplier applic util public procur direct place spain year vertic link telefonica major equip supplier minor sharehold characterist outlin decis specif spanish market appli fulli italian market context current case true past telecom italia predecessor purchas switch transmiss equip italtel recent sourc signific quantiti supplier itali util direct appli itali begin intern rule drawn telecom italia order compli final type link italtel telecom italia separ part stet group tradition public telecommun equip market shown clear nation characterist aris attitud strategi nation monopoli servic level domest supplier enjoi high market share home countri domest supplier serv market nation subsidiari local manufactur facil prevail view manufactur telecommun equip telecom oper market telecommun equip process open intern competit factor relev judgment technolog develop intern standard nation specif type approv equip applic public procur direct liber public voic telephoni telecom infrastructur public switch technolog public switch equip complex import impact geograph market definit oper gener maximum type switch signific quantiti network supplier chosen network supplier instal switch provid softwar upgrad oper increas capac need requir addit switch locat technic reason supplier technolog lock effect lead differ condit competit stage life cycl switch opportun suppli switch network subject high degre competit switch manufactur stage competit take place major public switch manufactur europ wide basi possibl worldwid basi supplier secur contract difficult entrant enter market whilst technolog remain extant except circumst exist supplier fail perform satisfact custom supplier opportun enter market market structur suppli oper remain stabl technolog introduc case public switch atm switch intern standard make bodi etsi process draw standard public switch equip standard develop independ subsequ valid etsi manufactur wish protect intellectu properti continu develop standard intern standard exist digit switch standard break barrier market complet place signific differ member state remain exist digit switch technolog technolog atm switch pictur atm switch pilot test number european countri test programm subject cooper telecom oper expect atm introduc higher level standard europ achiev case digit switch introduc experi manufactur oper etsi cooper produc standard make wider standard atm technolog applic public procur direct switch sector close relat technolog standard factor outlin pursuant articl council direct eec telecom oper procedur prior call competit chang supplier oblig contract entiti acquir materi technic characterist result incompat disproportion technic difficulti oper mainten small purchas equip fall threshold part framework contract cover individu purchas facto tend support nation market definit convers technolog introduc procur direct appli fulli invit tender supplier tend impli european wider market definit liber level oper effect geograph market definit liber public voic telephoni schedul open network provis direct importantli liber infrastructur lead broader market definit nation market oper constrain exist network standard free hand choos equip supplier competit public switch market properli take place european level technolog introduc supplier technolog chosen network oper competit take place supplier result lock technolog current infrequ tender procedur procur direct upgrad extens exist technolog liber servic infrastructur appear main factor ensur european wider market continu process european standard help confirm market definit transmiss transmiss equip factor list public switch appli standard transmiss equip widespread partli interfac aspect equip import switch higher prioriti compat type equip manufactur oper limit sourc transmiss equip supplier take place switch market share lower compani suppli oper transmiss equip market open public switch market share parti italian market lower basi worst case scenario nation market definit oper competit problem precis market definit left open mobil radio network oper mobil radio network western europ confirm purchas telecommun equip tender procedur geograph locat equip manufactur relev decis choos supplier case main supplier worldwid posit submit bid case view posit merg entiti itali europ exact definit geograph market left open case notifi oper rais competit concern privat telecommun equip commun termin market privat switch relat termin commun termin open competit higher penetr italian compani competitor client consult investig exist legal technic barrier access itali case posit notifi parti market precis geograph market defin decis notifi transact rais major concern market privat telecommun equip commun termin nation european level vi assess order assess competit impact oper factor account market posit parti public procur rule technolog trend liber vertic aspect public telecommun equip gener overview worldwid industri public telecommun equip provid rank compani respect worldwid turnov commun equip million dollar respect share total sale compani gt tabl gt market share parti public switch initi market share calcul parti notif public switch refer market inclus public switch oper support system oss power equip relat exclus purchas switch oss telecom oper itali inclus origin product market brought supplier sell switch competitor parti strict sens result parti initi market share underestim basi market sale respect market share parti main competitor itali establish purchas telecom italia gt tabl gt gt tabl gt competitor broadli confirm magnitud market share estim siemen italtel combin share remain roughli market share commun amount siemen italtel combin market share repres main impact notifi oper competit point view principl restrict itali sale italtel overlap parti activ basic concentr countri broader geograph market italtel smaller player joint ventur signific impact competit relat lead worldwid supplier telecommun equip combin market share parti sale public switch equip itali substanti usual standard appli regul eec depend year refer note market share higher market share lead supplier member state inform submit parti competitor public telecom oper to germani franc unit kingdom spain denmark netherland belgium ireland show fact italian market structur concentr member state compar size extent liber high concentr suppli switch member state larg explain fact to limit number technolog system coexist network maximum factor network manag train servic logist secur introduct servic network lock oper limit number supplier technolog introduc network long life cycl switch year point demand public switch basic driven upgrad extens network market award origin supplier instal switch reason cost effici except time major technolog digit introduc basic network demand switch equip larg determin lock effect aris origin choic supplier instal base fact confirm competitor to confirm exist situat member state germani public network includ technolog siemen alcatel supplier public switch bosch detew instanc suppli siemen technolog licenc franc alcatel ericsson suppli purchas franc telecom french network compos system unit kingdom instal base compris switch system gpt ericsson true compani suppl switch british telecom bt alcatel northern telecom amp purchas refer oper field trial establish overlai network provid special servic virtual privat network free call servic share bt purchas limit presenc alter fact bt basic network compris switch system gpt ericsson account bt purchas public switch belgium system alcatel siemen spain basic network compos alcatel switch lesser extent ericsson amp portug purchas equip suppli siemen alcatel system instal ireland network base ericsson alcatel system final system instal itali italtel alcatel ericsson siemen subsidiari itali sell italtel system licenc italtel alcatel ericsson account purchas switch equip telecom italia view consider conclud aggreg market share merg entiti itali constitut proof domin high concentr suppli public switch system normal consequ basic rational underli demand product transmiss sale respect market share main competitor transmiss equip itali notif sale main competitor gt tabl gt gt tabl gt market share commun amount siemen italtel combin market share repres lock effect aris instal base public switch plai lesser role respect transmiss standard transmiss advanc gener to ec tend diversifi sourc suppli detail inform submit to unit kingdom franc germani denmark belgium spain telecom italia show main supplier transmiss equip case import public procur purchas public switch transmiss equip ec subject public procur direct direct eec year switch purchas public switch public procur direct case carri call tender procedur purchas appli derog pursuant articl direct includ except technic reason reason connect protect exclus right multiannu contract enter to tradit supplier prior entri forc direct supplier public switch equip state situat chang futur regard extens upgrad instal base state technic reason award type contract supplier public procur plai import role time to introduct major technolog develop digit atm broadband switch network situat open possibl to supplier supplier enter de novo public network situat tender procedur justifi provid pan european ilot trial atm switch telecom italia to involv trial issu call tender procedur foreseen direct call tender publish offici journal european commun technic specif base etsi standard manufactur posit bid includ italtel siemen competit won erricsson alcatel transmiss lesser constraint diversifi sourc suppli higher degre standard transmiss equip impact public procur higher market to purchas signific amount requir call competit signific increas proport purchas acquir call tender to member state start case larger part purchas attribut multiannu contract establish entri forc direct eec notabl itali technolog public telecommun equip industri develop manufactur public switch research intens compani typic spend turnov amp cost develop gener telecommun switch estim high ecu billion parti figur vari depend refer small local switch major intern exchang lifetim expenditur major famili digit exchang system ewsd siemen linea ut italtel approach ecu billion inform submit parti main supplier public switch alcatel amp ericsson northern telecom siemen invest close million dollar amp public switch cost regard maintain competit posit technolog point view long term viabil market requir minimum amount sale order develop gener switch maintain usual ratio industri amp expens sale technolog constitut factor lead high concentr suppli major technolog develop public switch product market definit import effect context major technolog innov typic give rise oper supplier supplier opportun enter market context analyz impact notifi oper note telecom italia made choic supplier digit switch ericsson alcatel italtel st sold switch past itali note siemen switch ut switch manufactur licenc italtel digit italian network decid architectur defin decis move analogu system digit system architectur base area switch system homogen time sip assign singl switch area negoti manufactur switch equip guarante mainten servic assist nation territori assign area import note transit analogu digit sip consid reduc number system network line situat member state choic repres telecom italia trade increas oper cost term mainten introduct servic maintain leverag supplier decis accept higher oper cost maintain system network unlik to commun technolog discontinu compar digit introduct atm switch present competitor expect larg commerci order atm switch public sector end centuri present uncertainti extent atm switch replac digit public voic network possibl remain atm introduc overlai network specif servic limit scope restrict lan lan interconnect case note round competit public switch place market structur substanti modifi liber basic servic anticip itali infrastructur respect atm switch note experi countri start introduc overlai network atm switch commerci applic atm data transfer shown emerg tradit public telecommun equip supplier special press report number convent supplier public switch won commerci contract public network oper unit state america finland switzerland unit kingdom denmark liber servic infrastructur competitor contact commiss enquiri stress liber servic infrastructur relev actual function public telecommun equip market tradit approach base standard public procur liber public voic servic plan januari council minist agre novemb principl public telecommun infrastructur liber time remain servic note itali countri request specif derog object competitor progress liber servic privat telecommun gsm reduc potenti revenu to to lost signific market maintain presenc market price margin case constrain competit result liber servic indirectli induc pressur purchas equip competit liber area maintain profit competitor focus liber infrastructur determin factor introduc actual competit market hand consid infrastructur fulli liber current monopolist enjoi strong posit home market entrant progress set infrastructur case decis principl liber time frame adopt import view long life cycl switch decis infrastructur build year irrevers impact long time frame decis choic system technolog determin basic telecommun infrastructur countri ignor futur impact measur vertic aspect public telecommun equip reason commiss decid open phase investig case relat fact parent joint ventur stet control telecom italia telecom italia enjoi exclus right provid public telecommun servic instal oper relev infrastructur itali subject usual competit constraint market hand parent joint ventur siemen european world leader telecommun equip notifi oper rais doubt compat common market principl scope stet joint ventur significantli distort competit supplier public telecommun equip itali phase investig consult larg number telecommun equip manufactur telecommun oper commiss conclud notifi concentr creat reinforc domin posit market public telecommun equip switch transmiss reason examin extent notifi concentr creat market structur object interest stet forc telecom italia pursu anticompetit purchas polici give privileg treatment supplier creat reinforc respect note notifi concentr implement stet continu full control italtel ownership share capit situat concentr implement benefit privileg treatment joint ventur impos telecom italia stet share siemen prima faci notifi oper reduc object interest stet telecom italia favour joint ventur expens telecom italia instanc accept higher price equip siemen gain direct influenc equip supplier italtel influenc telecom oper telecom italia parent stet oper natur stet instanc iri econom interest wider respect provis telecommun servic respect manufactur telecommun equip turnov gener telecom italia repres roughli total turnov gener compani belong stet group stet control telecom italia larg part share capit compani privat hand compani identifi singl entiti interest larg part sharehold telecom italia distinguish futur joint ventur distinct interest servic activ manufactur activ stet group reinforc framework reorgan stet creation tecnitel own compani stet tecnitel constitut separ organiz level structur stet group main function supervis manufactur activ stet includ plan technic econom control manufactur busi exercis behalf stet vote right sharehold meet manufactur compani proceed stet state write interfer purchas polici telecom italia regard choic supplier maintain clear separ board director ceo gener manag telecom italia tecnitel compani italtel group structur characterist public telecommun market evid gather investig entri siemen capit italtel result signific deterior condit competit sharehold link siemen stet stet italtel major effect process upgrad extend exist network decis system network base confirm forecast revenu establish parti joint ventur growth joint ventur turnov achiev export joint ventur agreement set target joint ventur attain sale export market current competitor parti itali approach commiss phase investig express concern maintain present posit itali regard longer term introduct technolog market telecommun equip process transform due develop larg market technolog develop ii fact effect standard public procur legisl progress larger impact open nation market iii progress liber servic foremost liber infrastructur lead creation worldwid market public telecommun equip effect combin develop area mobil commun definit european standard gsm liber servic liber infrastructur result todai creation european worldwid market suppli telecommun equip mobil radio network mobil radio market share italtel year declin siemen reach market share main competitor parti ericsson market share alcatel market share market mobil radio network itali open competit introduct gsm mobil phone oper omnitel pronto italia consortium award contract italian govern bid investig carri european countri open competit state access mobil phone oper gsm itali signific impact competit situat market equip mobil radio fact usual practic oper build infrastructur provis mobil telecommun servic util equip varieti manufactur gsm oper supplier part mobil radio infrastructur switch base station microwav equip termin gsm autonom network interfac rest telecommun infrastructur defin point gsm architectur defin gsm recommend promulg etsi adopt nation standard eea countri clear architectur interfac structur gsm effect creat european wide subsequ worldwid market equip gener supplier infrastructur chosen worldwid basi tender lot supplier invit tender contract includ siemen ericsson sel alcatel nokia motorola matra amp northern telecom orbitel common criteria gsm oper award contract supplier technolog reput supplier price engin technic knowledg abil meet deliveri requir choic equip crucial competit servic gsm oper market servic strong local compon market gsm equip worldwid privat telecommun equip regard privat telecommun equip segment pbx kt relat termin market share italtel declin siemen market share complianc commiss direct eec competit market telecommun termin equip individu market fulli liber larg number manufactur activ market line fragment product sector distribut carri larg number seller regard privat telecommun equip custom contact investig state complet transact continu suffici number altern supplier purchas gener purchas sip possibl choos product manufactur siemen alcatel italtel ericsson potenti supplier philip olivetti ibm northern telecom competitor contact commiss gener state face major obstacl sell itali posit merg entiti privat telecommun equip market compar weaker public telecommun sector term market share italtel lost significantli market share year sip continu enjoi strong posit distributor direct sale supplier custom absenc legal barrier competitor state address italian market sell directli channel distribut sip independ distributor vii conclus reason outlin commiss consid propos concentr lead creation reinforc domin posit market identifi sector public privat telecommun equip result effect competit significantli imped common market mean articl regul eec concentr declar compat common market adopt decis articl propos concentr stet siemen declar compat common market function eea agreement articl decis address stet società finanziaria telefonica spa corso italia roma siemen aktiengesellschaft wittelsbacherplatz münchen brussel februari commiss karel van miert member commiss oj corrigendum oj oj oj oj replac direct eec oj oj council resolut juli review situat telecommun sector develop market oj oj