Tiscali 2007 Annual Report Download - page 35

base, and substantially improved the service level vis-à-vis the
consumers introducing additional obligations for UK providers.
3Ofcom called a consultation on the new SLA (Service Level
Agreement) and SLG (Service Level Guarantee) standards of
Openreach during a project which aims to improve perform-
ance and encourage improvement. The project continues with
a review of the financial structure during 2008, which envis-
ages the review of the prices and the regulation relating to
unbundled access and WLR (Wholesale Line Rental).
Tiscali shares
Tiscali shares have been listed on the Italian Stock Exchange
(Milan:Tis) since October 1999. At 31 December 2007, mar-
ket capitalization came to EUR 764 million, calculated on the
value of EUR 1.80 per share as at 28 December 2007.
On 31 December 2007, the number of shares representative
of the Group’s share capital came to 424,413,163. Following
the share capital increase during the first few months of 2008,
involving the issue of 149,792,880 new ordinary shares, the
number of shares representative of the share capital came to
574,206,043 at 28 February 2008.
Tiscali’s shareholder base at 31 December 2007 is illustrated
below:
At stock market level, we can identify three main phases in
Tiscali share performance during the accounting period ended
at 31 December 2007. During the first part of the year, until
April, the stock achieved a daily average of EUR 2.4. In the
following period, until October, price volatility was seen, attrib-
ularities in the sales processes, the specification relating to the
services offered as well as to the advertising promoting mar-
keting thereof. Consumer protection became the leading pri-
ority for Ofcom.
TV
3Following the conclusion of a survey into the impact in com-
petitive terms of the purchase by Sky of 17.9% of ITV, the Gov-
ernment issued its decision indicating that the broadcaster
must dispose of the majority of its shareholding. Ofcom called
a consultation on Sky’s plans relating to the launch of premi-
um pay TV on the digital land-based platform in the UK.
3Ofcom carried out a market survey into pay TV in the UK, fur-
ther to pressure from several parties who complained of sig-
nificant market power in the hands of Sky. The provisional con-
clusions of the first consultation indicated Sky as in a domi-
nant position on wholesale and retail markets relating to pre-
mium films and sporting contents. The remedies adopted in
this connection still have to be discussed and Ofcom will com-
mence a new round of talks during 2008.
3Following an assessment on the possible market effects, the
BBC Trust approved the plan for launching BBC iPlayer. The
potential overloading of the network as a result of the circula-
tion of videos containing third-party audiovisuals was debated
publicly, without reaching any conclusions capable of prevent-
ing possible overloading problems or assessing the potential
impact on users.
New Generation network
3Ofcom introduced a pilot scheme for the installation of fibre
optics in new building projects. Ofcom called a consultation
on the regulation policy relating to new generation access and
will publish its findings by the end of 2008.
3An intersectorial group has been created for the purpose of
transforming the sub-loop unbundling (unbundled access to
the local sub-network) into a feasible product, after the OTA
was appointed to see to the operating aspects of the regulato-
ry redress.
3The project for BT’s 21st century network has met with diffi-
culties and many changes have been made to the plans, the
activities and the envisaged deadlines. The new wholesale
products based on the new generation network have created
many problems, in terms of equivalence and observance of
the undertakings taken on by BT. These problems will be dealt
with via an Ofcom project during 2008.
Other aspects
3In November, Ofcom published new regulations on number
portability, laying down the introduction of a common data-
REPORT ON OPERATIONS
34
FREE FLOAT 67%
RENATO SORU 25%
SANDOZ FAMILY FOUNDATION 8%