Having considered article 3 of the Convention between the Italian government and RAI-Radiotelevisione Italiana S.p.A., approved by Presidential Decree of 28 March 1994, hereinafter referred to as "Convention", which refers to a three year agreement and defines its scope;
Having considered article 1 of law no. 650 of 23 December 1996, upholds the effects produced and the legal relationships granted by the above-mentioned art. 3 of the Convention;
Having considered article 1, paragraph 5, of law no. 122 of 30 April 1998;
Having considered the Message of the President of the Republic to the Parliament on 23 July 2002;
Having ascertained that the termination of the agreement approved by Presidential Decree of 8 February 2001 is established for 31 December 2002;
Therefore, deeming it necessary to stipulate a new agreement;
between the Ministry of Communications, hereinafter referred to as "Ministry" - represented by Secretary General Pref. Vittorio Stelo - and RAI-Radiotelevisione Italiana S.p.A., hereinafter referred to as "RAI", with headquarters in Rome, legally represented by the President of the Board of Directors, Prof. Antonio Baldassarre, in the event of necessity delegated by the RAI Board of Directors, the following is hereby agreed upon and stipulated.

1. This agreement establishes the rights and obligation of RAI for the three year period 2003-2005, in compliance with the rights and freedoms guaranteed by the Constitution, laws and regulations regarding radio broadcasting and telecommunications, EU rights, international agreements, statutory technical and Convention regulations in compliance with the guidelines issued by the Parliamentary Committee for general guidelines and monitoring of radio and television services.

2. The scope of the agreement extends to television, radio and multimedia offerings, editorial contents, technological services for production and transmission of signals, economic-financial management and control and monitoring systems. moreover, it indicates the criteria for determining financing from subscription fees valid for the duration of the three year period.

3. The parties jointly agree that the following have greater priority in relation to public radio and television service: to guarantee the freedom, plurality, objectivity, completeness, impartiality and correctness of the information; to promote civil growth and social progress; to promote culture, education and the Italian language; to safeguard national and local identity; guarantee services which are useful to society; extend the advantages of new broadcasting technology to the community as a whole; moreover, ensue balanced and varied programming able to maintain listening levels suitable for fulfilling the purposes and ensuring achievement of the quality of the offering in terms of the type of programming.

4. To complete these duties RAI agrees, in keeping with the procedures and conditions established by this agreement, to:

• offer a wide range of television, radio and multimedia programs, aimed at all users, reserving for all time bands, including prime time, an adequate and proportional number of broadcast hours for information, education, training and cultural promotion;
• to promote productive, entrepreneurial, creative capacities and national, regional and local cultures, placing priority on the development of the national audiovisual industry and contributing to the growth of the European productive system;
• promote access to programs based on the principle of equal opportunity, with the highest respect for the dignity and centrality of the individual as well as the different cultures;
• dedicate programs to minors which take into consideration the sensitivity of early childhood and period of development:moreover, providing careful monitoring to protect such individuals in terms of general programming and broadcast scheduling;
• promote reception of television, radio and multimedia services for individuals with hearing disabilities;
• guarantee distribution of special television and radio programs for foreign countries in order to promote awareness of the Italian language and culture within the world and to ensure an adequate level of information for Italian expatriates;
• observe the laws and regulations regarding television broadcasting of events considered particularly significant for the society as a whole;
• promote local culture and regional information including reinforcing subsidiary production centres, when deemed necessary by RAI;
• dedicate specific programming to linguistic minorities;
• provide special services to distribute information on road and traffic conditions;
• guarantee television and radio signal quality and maximum coverage of the territory;
• ensure the preservation and promotion of program historical archives;
• experiment with innovative technologies, in part aimed at promoting the industrial development of the Country as well as the introduction of new broadcasting technologies, accelerating and facilitating the conversion to broadcasting via land digital technique;
• employ an economic-financial management based on efficiency and economizing in order to guarantee adequate levels of capital profit which make it possible to become progressively closer to market financial-economic parameters;
• set-up a separate accounting system aimed at breaking down the costs of radio/television public service, services paid for by other administrations and those from activities provided by article 5 of the Convention, with procedures which make it possible to verify that the resources resulting from a public nature are solely destined for public service activity.
• Identify a system for market knowledge, for evaluating programming quality, monitoring the relationship between supply and demand, for processing and communicating the quality certification results with a particular focus on analysis methods and verification criteria.

1. RAI agrees to guarantee high quality services for all radio and television programming, no matter what the time band. In particular RAI agrees to :

• respect and meet the needs of users taking into account different orientations, opinions and tastes;
• observe the principles of pluralism, impartiality, completeness and objectivity;
• promote culture and develop the critical sense of viewers;
• use the values of a civil and democratic society as its inspiration, offering interesting, effective and tasteful programming;
• always ensure correct use of the Italian language and proper behaviour, avoiding vulgar scenes or expressions or those in poor taste;
• update programming taking into account the evolution and innovation of broadcasting techniques and new radio and television contents;
• promote information of a regional nature.

2. RAI acknowledges that the quality of radio and television services is a strategic aim of the public service mission and thus agrees that this aim shall be pursued in the broadest genres.

3. For the purposes of monitoring services, RAI agrees to implement an internal control system within three months from the start of this agreement, making avail of specific indicators and evaluation parameters based on the criteria contained in paragraph 1, to verify the degree of quality achieved by the television and radio services.. Moreover, RAI agrees to effect controls and verifications on a sample representative of users to analyse viewer perception of the quality of it programming.

4. RAI shall monitor public opinions of its programming through a specific listening centre in order to evaluate the distribution of public radio and television services. This service shall be adequately publicised by RAI.

5. To verifyimplementation of the objects in paragraphs 1 and 2 hereto, a committee shall be established by decree of the Ministry of Communications composed of four members, two of whom shall be appointed by RAI and two by the National Council of Users from individuals with an unbiased viewpoint and unquestionable professionalism.. A representative from the Ministry shall participate in the committee's work. The committee shall take into account the results from the verifications mentioned in paragraphs 3 and 4, which shall be provided to it by RAI.

1. For land broadcast television channels. RAI agrees to guarantees services, which in general meet the criteria of completeness, impartiality, objectiveness, quality and pluralism which characterise public service, giving priority to the following genres:

1. Current events: regularly scheduled news programs and special reports; programs which document demonstrations and current events of either a periodic or special nature; teletext pages and regional information.
2. in-depth reports and information regarding: informative supplements to news programs by newspapers; in-depth reports and debates generally tied to social, political, territorial and custom issues; in-depth programs to accompany films or TV drama productions; documentaries on uses, customs and traditions of society; retrospectives on events or lives of famous individuals with the aim of documenting the reality of the epoch; in-depth shows on subjects of a religious nature.
3. Programs of an institutional nature: periodic and special programs dedicated to information on the activity of supranational, national, regional and local institutions, parliamentary debates and statements from State and regional leaders: programs and autonomously managed spaces dedicated to political parties and movements, referendum lists and national and regional trade unions.
4. Programs dedicated to subjects and events of a social nature and of use to the general public: broadcasts and magazine programs which cover subjects of general interest with a particular focus on the needs of the general public and groups of individuals with special needs; broadcasts and television spaces allocated to associations and civil social movements to promote their activities; programs for informing consumers; religious rites; communications which provide a useful public service on a national or regional level (weather forecasts, road conditions etc.).
5. Programs dedicated to children and young people: cartoons and entertainment programs, including those aimed at educating; games; programs related to specific information; magazine programs which take into account the needs and sensitivity of early childhood and period of development and which contribute to spreading the prevention of drug abuse or other substances which are detrimental to the health, in observance of minors rights and the protection of their physical, psychological and moral development.
6. Programs of a formative, educational, cultural and ethical nature: information, updating and in-depth programs of a national, regional and local scope dedicated to cultural topics (of a historical, artistic, philosophical, literary, philatelic etc. nature) including with films, interviews and debates; educational, formative and ethical programs including those dedicated to raising awareness of the damages produced from using drugs and other substances which are detrimental to health; programs dedicated to events related to figurative arts, literature and theatre, music, opera, film and dance performances.
7. Programs dedicated to scientific and environmental topics: programs with a primarily scientific or environmental content possibly with expository parts and supplementary films, interviews and debates.
8. Programs dedicated to topics and events of a sports nature: programs of sports information, magazine programs of live or pre-recorded sports events regarding both the principle popular events and the so-called "minor" sports; programs based on events of a sports nature.
9. Films of a particular artistic level: films of an unquestionable artistic value including experimental films and short films.
10. European made films and TV drama productions: Italian or European cinematographic productions (films and cartoons) and drama productions (TV movies, series, miniseries, serials etc.).

2. RAI agrees to allocate not less than 65 percent of its annual television programming in the time band from 6 a.m. to midnight and not less than 80 percent for the third network to the programs indicated in paragraph 1 in the letters a), b), c), d), e), f), g), h), i), and j). The programming must be distributed on the three networks in a balanced manner, in all periods of the year and in greater viewing periods and “prime time”.

3. RAI shall be required to submit a detailed report related to each land television network to the Ministry for each six month period within the following three months, indicating the programs broadcast and their scheduling according to the genres indicated in paragraph 1, the hours broadcast and the percentage compared to the programming in the time band from 6 a.m. to midnight, both related to the individual genres and overall and the figure for average daily distribution related to each genre.

4. The Parliamentary Committee for general guidelines and monitoring radio and television services may, within the limits of statutory regulations, formulate motivated proposals to the licensee based on the performance of this agreement.

1. For the three national radio channels RAI agrees to:

• guarantee diversified services which meet the formative, informative, cultural, ethical and entertainment mission of a public service, observing all the service quality criteria for programming as expressed in article 2;
• broaden the content of the service by experimenting with new formats based on needs expressed by users;
• develop programs aimed at multimedia use;

2. RAI may also use cable and channel satellite networks for the distribution of radio programming, upon authorization from the Ministry.

3. RAI radio programming must guarantee the following genres:

1. News: radio news, including sports and special reports, with diversified format, style and contents based on the channel;
2. Information: programs or shows which take an in-depth look, investigations stories, debates and direct films, even in streaming format, radio commentary, programs and shows dedicated to various sports;
3. Culture: scientific, humanistic and technological current events programs, even of an entertaining nature; radio drama productions; theatre (recorded or studio produced); documentaries and historical enactments, possibly based on elaboration of archive materials;
4. Society: programs, shows and talk shows on social and customs topics, possible aimed at young people or produced in innovative formats, able to represent life in the European Community and Italy, and to broaden the debate on the civil evolution of the country.
5. Music: all genres and subgenres of cultured music, symphonic music and pop music; primarily musical programs and magazine programs; live or pre-recorded of musical events; current events programs on the world of national and popular music;
6. Entertainment and information: high quality entertainment programs, with games for the listeners, variety, one man shows, comedy, satire, sketches, possibly produced to critically represent and disseminate the civil evolution of the Country.
7. Service: shows and services on the activity of institutional bodies; programs, shows and radio of a religious nature, shows with topics of a particular social interest (work, health, social security) or aimed at particular targets (minors, senior citizens, disabled etc.); programs for the blind.
8. Useful for the general public: news and services on traffic, road and weather conditions, especially dedicated to users on the move, sea and snow reports; emergency messages and from the civil protection; hourly signal.

4. RAI shall be required to submit a detailed report on the number of hours broadcast to the Ministry for each six month period within the following three months, with an indication of the percentage, compared to the total, for each of the genres in paragraph 3, as well as the figure for average daily dissemination along with this report.

5. The Parliamentary Committee for general guidelines and monitoring radio and television services may, within the limits of statutory regulations, formulate motivated proposals to the licensee based on the performance of this agreement.

1. RAI agrees to increase and update the Teletext service for data transmission related to: information, culture, entertainment, economy, service information, subtitles for the deaf and foreign communities, and related regional or local services for the regional network..

2. RAI, within the framework of the Parliamentary Committee guidelines for the general guidelines and monitoring of radio and television services related to transmission of access to public services, shall guarantee that the Teletext services have a particular focus on association and volunteer experiences based on the regulations approved by the above-mentioned Parliamentary Committee in its 29 April 1999 session.

3. RAI shall dedicate specific spaces to information aimed at an informed use of television by minors. Furthermore, it shall indicate programs recommended for viewing by children and young people on the text page dedicated to television programs.

4. Any paid advertising space on the Teletext services shall be indicated as such.

1. In order to guarantee the protection of the physical, psychological and moral development of minors, for broadcasting time bands not specifically dedicated to children and young people but to family viewing, between 7 a.m. and 10:30 p.m., RAI shall produce programs regarding all television genres with contents that meet the criteria of responsibility and respect for the dignity of minors, and therefore avoid airing programs, including information and films, which contain scenes of gratuitous violence or episodes which may cause them anguish, terror or disturb them. Moreover, RAI agrees to a quality and preventative control on the contents, times and transmission procedures for commercials, which shall always be identified by insertion of visible or acoustic brands.
During the time band which RAI is required to produce a share of annual programming for children and young people, which shall be equal to at least 10 percent, it shall produce programs which take the needs and sensitivity of early childhood and the period of development into account, based on the guidelines of bodies instituted to protect minors and the statutory self-regulation code related to the relationship between TV and minors signed by the licensee.
The programs shall be entertainment and formative oriented for young children and young people, on subjects including civil education, respect for the environment and nature, dissemination of the study of history, science and foreign languages, sports, sex education, awareness of ethnic, cultural and religious diversities .
Immediately before, during and immediately after broadcasts expressly dedicated to children and adolescents, RAI shall avoid broadcasting commercials and trailers in contrast with the described principles and promotions by the hosts of these programs.

2. To produce the programs as per paragraph 1, RAI shall use the aid of committees, jointly constituted by the parties, of experts who are particularly qualified proposed by a majority of the National Council of of Users. These bodies shall also have the task of expressing opinions on the quality of the programs as per paragraph 1, if they are in compliance with the guidelines proposed by the bodies with jurisdiction over the protection of minors, as well as the self-regulatory code related to the relationship between television and minors. Moreover, RAI shall communicate the programming lines for minors that it intends to produce as well as adopted initiatives to the Parliamentary Committee for general guidelines and monitoring of radio and television services in the bimonthly report pursuant to art. 1, paragraph 5 of law no. 650 of 23 December 1996.

1. Rai agrees to promote and encourage social communication and the consequent representation of the pluralities of the social situation in its television, radio and multimedia services, with a particular focus on individuals, groups and communities with special needs in specific areas linked to environment, health, quality of life, consumers, civic rights and duties, team sports, disabilities, new trends and the job market, immigration, integration and multi-cultures, equal opportunity and senior citizens. Moreover, Rai agrees to establish and create specific activity and initiatives aimed at developing public attention and awareness on these topics, possibly by established new media languages effective in terms of listening.

2. Rai agrees to cooperate with the above institutions to create, produce and disseminate specific programs aimed at fighting and preventing paedophilia, violence towards minors and the prevention of drug addiction and the awareness of the consequences from using drugs and mood-altering substances as well as the social cost these phenomenon have for society as a whole.

3.RAI in reiterating its commitment to produce and program in complete observance of the Amsterdam Antidiscrimination Treaty and the resolutions of the European Forum of disabled persons of Madrid, places particular focus on cultural promotion for the integration of disabled individuals and overcoming disability through targeted social campaigns and special programs in collaboration with specific national and local institutions. Moreover, RAI agrees to guarantee access to its multimedia services to individuals with sensory disabilities, through specific audio-described programming on OM channels and broadcasting with telesoftware procedure for blind individuals and subtitles with special Teletext pages and with video translators for deaf individuals, and for this purpose, putting into place the following initiatives:

• increase the volume of the specific services mentioned above by 10 percent annually in relation to 2002 both in terms of quantity and program genres, including cultural programs and in-depth and specific subject programs;
• maintain the current subtitling service for news and add at least one more edition of the news in a higher viewing time band;
• improvement of the audio-description signal quality in terms of broadcasting resources dedicated to the specific service;
• promotion of technological research in order to improve access to multimedia services for disabled individuals and those with reduced sensory capacity;
• communication to the public of the undertaken initiatives.

1. RAI agrees to consolidate and strengthen its educational and formative mission with the following activities in particular:

1. information on the evolution of the scholastic and university system and higher artistic, musical and dance institutions;
2. production of programs to support education and training of teachers, with particular reference to learning European languages and computer literacy;
3. orientation of young people and awareness campaigns for young people and families concerning the job market and problems of young people;
4. promotion of achievements and innovative educational initiatives;
5. dissemination of scientific and humanistic culture.

2. Moreover, RAI agrees to equip all schools with the instruments required for receiving its digitally aired satellite channels from Hot Bird satellites.

3. The activities in paragraphs 1 and 2 shall be defined and produced based on a specific agreement between the Ministry of Education, University and Research and RAI, which shall indicate the basic programming contents of these activities, the dissemination procedures including clear mode, the related charges, as well as the RAI interface in charge of coordinating the activities and verifying that the programming conforms to the educational standards and is compatible with the educational instruments available in the schools.

1. In order to promote and disseminate knowledge of the Italian language, culture and economy in the world, to guarantee an adequate level of information for the Italian community abroad on the evolution of Italian society and to provide Italian citizens living abroad with adequate access to information and political news, in particular in periods involving elections and referendums, RAI, based on agreements with the Premiership or other agreements, shall broadcast adequate television programs using the most modern and widespread broadcasting means.

2. Moreover, RAI agrees to produce new forms of programming for foreign countries aimed at bringing Italian culture, including that of a regional nature, to a vaster international audience and to increase the number of programs broadcast to Italians abroad, also by means of additional agreements falling within the previous paragraph.

3. RAI shall be required to provide a specific report of its activities and related figures on programs broadcast abroad to the Ministry.

1. RAI shall have the right to participate in programs and initiatives sponsored by the European Union and European Council and shall expedite requirements for using related funding.

2. RAI agrees to provide the Ministry with an annual report on the status of the evolution of its research and development projects and initiatives that fall within paragraph 1.

3. RAI agrees to participate in national and international production programs, which promote the culture and artistic and cultural heritage of Italy, with particular focus on initiatives destined for the Mediterranean and bordering countries.

1. RAI agrees to promote national production, entrepreneurial and cultural capacities in order to encourage the development of the national audiovisual industry and to contribute to the growth of the European production system, giving priority to the relationship between quality and market, efficiency and pluralism and promoting research on new production models and new languages. For these activities RAI shall give priority to independent producers.

2. For the duration of this agreement, RAI shall allocate at least 20 percent of the proceeds from subscription fees for investments aimed at the production of Italian and European audiovisual works: it shall also allocate at least 40 percent of this minimum investment percentage for films, of which a share not less than 51 percent shall be invested in films destined for use in cinemas; at least 8 percent annually of the minimum investment percentage shall be allocated for investments in cartoons or cartoon films specifically produced for educating children. In the event that the evolution of the market manifests trends not compatible with this share, RAI, may submit a documented request asking that a joint committee be established by decree of the Minister of Communications to re-determine this share.

3. For the purposes of this regulation the following shall mean:

1. for total subscription fee proceeds, the revenue from the shares on the total of ordinary subscribers of the licensee related to land television services, net of the licensee fee;
2. for the Italian and European production of audiovisual material, copyright on films, TV drama productions, cartoons, opera, music, theatre, produced or co-produced in Italy or the EU with particular focus on independent producers as established by article 2, paragraph 4 of law no. 122 of 30 April 1998;
3. for investments, the calculation of the cost which includes amounts paid to third parties to acquire copyrights and user right, the costs for in-house and outside production and the specific costs for publicity and distribution as well as editing costs and ancillary expenses related to the above products.

4. RAI agrees to immediately establish punctual monitoring and verification systems in relation to compliance with the shares required by this article and to provide this information on an annual basis to the Ministry of Communications and Italian Communications Committee.

1. In the framework of political, cultural and linguistic unity of the country, RAI shall promote and encourage regional and local cultures in its programs in close collaboration with the regions, Provinces, Communes, Universities and cultural organizations, creating coordination systems for a greater local dissemination.

2. Licensee branch offices and the Regions and Autonomous Provinces may stipulate agreements, with charges all or in part borne by the regions and Autonomous Provinces, to achieve the objects of the previous paragraph. The Ministry, in agreement with the permanent Conference for relations among the State, regions and autonomous provinces of Trento and Bolzano, and the licensee shall establish the criteria and procedures for stipulating the above agreements and the participation of local radio and television broadcasters aimed at creating joint production relations.

3. RAI agrees to introduce thirty minutes of programming for each region in the program schedule of the third television network, reserved for broadcasting programs selected by the regional offices, starting from optimization of existing resources and in collaboration with the area.

4. On behalf of the Premiership and based on specific agreements, RAI shall provide services for linguistic minorities, as specified by law no. 103 of 14 April 1975, and further agrees to ensure that programming respects the rights of the linguistic minorities in their specific areas.

5. In keeping with art. 12, paragraph 1, of law no. 482 of 15 December 1999 and article 11 of Presidential Decree no. 345 of 2 May 2001, RAI agrees to guarantee the conditions for the protection of recognized linguistic minorities in their specific areas, by undertaking and promoting initiatives that foster the minority languages present in Italy, in collaboration with local institutions. Moreover, RAI shall promote the stipulation of agreements, with charges all or in part borne by involved local regional, provincial or commune institutions, for programs or daily broadcasts in the languages to be protected, for its regional radio and television programming. A Committee specifically formed between the Ministry and RAI shall identify the company offices to be assigned with protection activities for each recognized language minority as well as the minimum contents of protection within ninety days from the date this agreement goes into effect.

1) RAI is required to operate a network reserved for broadcasts dedicated to parliamentary work pursuant to article 24 of law no. 223 of 6 August 1990, according to the provisions of law no. 224 of 11 July 1998, through the network of systems falling within appendix A.

2. Parliamentary work to be broadcast and the criteria to follow for programming are established jointly with the Presidents of the two branches of the Parliament. Generally, programming should be characterized by respect for impartiality and balance of public service. RAI agrees to publicize the activity of the parliamentary network through its own radio and television networks, in particular for parliamentary information broadcasts.

3. Based on implementation plans submitted to the Ministry, and following its authorization, the network falling within paragraph 1, may be subject to targeting interventions to rationalize the systems, achieved through actions to make the use of frequencies compatible or through operations to merge the licensee plants. These interventions shall be effected without compromising the quality of the services and not interfering with the other legitimate users of the radio electric spectrum, and with special focus on safeguarding the health of individuals and protecting the landscape.

4. RAI may disseminate parliamentary network broadcasts via Internet and satellite.

1. RAI agrees to dedicate adequate spaces in television and radio programming for disseminating information on traffic, road and road safety conditions.

2. Radio news on road and traffic conditions of the motorways, highways, ring roads and junctions and safety recommendations shall be broadcast by the Isoradio service, increasing the time dedicated to information, during the programs repeated by the national networks. The Isoradio service is effected through the network of plants contained in appendix B.

3. These programs shall be broadcast along the motorways, ring roads and in surrounding areas.

4. The licensee agrees to make the Isoradio service available for all needs for informing the public by the Department of civil protection.

5. Extension of the Isoradio service, broadcast as much as possible on the same frequency, to the motorways, ring roads and surrounding areas not yet covered and improvement of the dissemination of the service shall occur by installing adequate broadcasting system subsequent to authorization from the Ministry which will assign the necessary frequencies bearing in mind the specific character of public usefulness of the Isoradio service.

6. To meet the objects falling within paragraph 5 the licensee shall prepare, and if requested to do so by request of the Ministry, based on indication from the Ministry of the Interior and Ministry of Infrastructure, network development plans and submit them to the Ministry.

1) RAI agrees to guarantee a degree of service quality, except in the instance of interferences which cannot be resolved by radio electric compatibility interventions, not lower than 3, in reference to the UIT-R (International Union of Telecommunications-Radiocommunications) scale.

2. In relation to frequency availability, the Ministry shall guarantee RAI all necessary implementation of the licensed service, to resolve the more significant interference situations and aimed at improving the minimum degree of service quality.

3. In order to guarantee supply of the service, RAI shall operate the television and radio signal broadcasting and dissemination plants indicated in appendices C and D.

4.RAI agrees to provide the Ministry on an annual basis with all the documentation related to monitoring the technical quality of the radio dissemination service and statistical reports, with indication of the degree of extension of operating services, the quality of reception according to the UIT-R scale and the trend of service interference and disturbance situations, as well as the values of service availability measured using the quality indicators established with the Ministry. To verify compliance related to coverage, RAI shall be required to provide the Ministry with a map on magnetic support indicating the area covered by the services on an annual basis.

1. RAI shall guarantee a degree of analog television service coverage not below 99 percent of the population for the three national networks. The third network must have an average regional coverage of 97 percent of the population.

2. for the purpose of developing the analog television networks, the licensee agrees, where interest has been expressed in increasing analog service, to locally extend coverage to towns with a population not under 300 inhabitants, based on agreements or contracts with the Regions, Provinces, Communes, mountain Communes or other local organizations or consortiums of local organizations as well as with other organizations and entities, according to criteria of economic investments and subsequent to provision of necessary infrastructures needed for installation of broadcasting systems by the local organizations, with particular focus on protecting human health and the landscape.

1. RAI shall guarantee radio broadcasting coverage for each of the three frequency modulation (FM) networks for not less than 99 percent of the population and with a territorial coverage not less than 80 percent, except in the instance of interferences.

2. Where necessary, RAI agrees to improve the quality of the signal, subsequent to assignment of the necessary frequencies by the Ministry.

3. RAI shall be required to increase the RDS (Radio Data System) on the three FM radio networks using the EON (Enhanced Other Network) system in conformance with ETSI (European Telecommunications Standards Institute) standards and may test the RDS-TMC (Traffic Message Channel) service.

4. A temporary reduction of the degree of coverage falling within paragraph 1, shall be permitted during activity to upgrade the network to guarantee the degree of coverage with systems which are in line with statutory regulations regarding maximum electromagnetic values.

1. The radio broadcasting service in amplitude modulation is effected through short and medium wave systems.

2. The short wave service is effected using the plants contained in appendix E and is governed by a specific agreement with the Premiership.

3. In order to focus adequate attention on protecting human health and the landscape, RAI agrees to rationalize the amplitude modulation networks and to present a plan within six months which takes into account all the necessary power reductions and is aimed at a single network which transmits national radio network programs.

1. RAI, in order to build new plants and make changes or possibly improve service, shall present an implementation plan for each system to be produced or changed, containing the following:

2.Within ninety days of receiving the implementation plan, the Ministry shall make a decision in its regard. In the event of a positive decision a temporary authorisation shall be issued to operate the plant.

3.The test period, necessary for verifying the radio electric compatibility of the plant with other radio and television broadcasters legitimately operating pursuant to statutory regulations, is two months from notification by the licensee of start-up of the plant. If the plant is not started-up within six months from issue of the authorisation, RAI shall communicate the reasons to the Ministry.

4. The Ministry shall issue a permanent authorisation to operate the plant after verifying the radio electric compatibility and completing the international coordination procedure.

5. RAI shall provide an annual report on the plants built and provide information on those in progress.

1. RAI, for its own purposes or for third parties, shall operate mobile links produced with transportable means installed on parked or moving vehicles operating without interfering with other operators. Every quarter for each link the licensee shall provide the frequency used, the average distance of the sections where moving vehicles are used, the duration of the service provided for the purpose of paying the related fee, in accordance with laws and regulations, as required by the Ministry.

2. RAI, for its own purposes or for third parties, shall operate links similar to those described above to make temporary links between fixed points. Every quarter the licensee shall inform the Ministry of the links operated including new start-ups and disconnections of such links; indicating the frequencies used, the distance of the sections for the purpose of paying the related fee, in accordance with laws and regulations, as required by the Ministry.

3. To implement such services, RAI may also use the frequencies assigned with digital modulation technology.

1. For national and international licensees and operators RAI shall have the option of providing for the collection of requests for circuits for carrying television services from and for abroad or in transit for abroad and the supply and supervision of such circuits (role of "Programme Booking Centre") as well as the corresponding accounting (role of "Accounting Office").. This activity shall not jeopardise the normal operation of licensed public service. RAI shall provide an annual report to this effect to the Ministry.

1. RAI shall be required to build the plants necessary for operating the services in a well-done manner, in compliance with relevant national, EU and international technical standards.

2. RAI shall equip its own networks with all the necessary means for remote monitoring and testing required for correct operation.

3. According to legal and Convention provision, and with prior Ministry authorisation, RAI may use its plants jointly with other operators. This joint use must be aimed at a general optimisation of the plants, or for environmental scopes, as long as it is not detrimental to improved public service and contributes to balanced company management.

1. In order to promote the industrial development of the country and introduce new broadcasting technologies, RAI agrees to facilitate the conversion to broadcasting programs and multimedia services using land digital technology.

2. For this purpose, RAI is required to submit a project to the Ministry within three months from the date this agreement goes into effect. This project shall promote the tests results achieved and in progress, define the next phases of the plan to configure the broadcast network in numeric technique and indicate the financial compatibility.

Moreover, the project shall contain the following:

• percentage of population covered;
• production, dissemination/broadcast, reception technological options;
• job timeframe;
• financial plan.

Once the Ministry has approved the plan, the parties shall identify the technical and financial procedures for implementing the project by means of subsequent agreements.

3. Furthermore, RAI agrees to promote production projects based on new creation, production and dissemination technologies, as well as the use of the television as a tool for information and multimedia literacy and to promote the training of audiovisual industry operators, in particular those working in sectors using new technologies.

1. RAI agrees to place particular emphasis on research and testing of new production, broadcasting, dissemination and archiving means as well as new interactive multimedia services, by actively collaborating to establish new international standards for interactive digital television. For this purpose RAI may stipulate agreements with the Ministry or other technically competent organizations. RAI shall guarantee maximum participation in research and technological innovation initiatives and programs promoted by the European Union, the Council of Europe and other European Institutions. RAI shall be required to notify the Ministry on an annual basis of all the initiatives adopted pursuant to this article.

2. RAI agrees to implement the audio and video library developed pursuant to the agreement for the three year period of 2000-2002 and to create digital cataloguing of the historical archive recorded on analog magnetic tape.. The radio and television historic archive shall be opened to the general public for consultation at RAI offices in the near future, in accordance with the procedures and timeframes established with the Ministry.

1. RAI in conjunction with the Ministry may:

1. test new forms of multimedia production and new television and radio languages;
2. promote the synergy between telecommunications, information technology, teletext, including aimed at extension of the service abroad, as well as service targeted for the poorer areas of the country;
3. test broadband systems and create projects aimed at developing an information technology society;
4. promote computer literacy among radio and television users;
5. develop digital technologies with a particular focus on the entire production, archiving, broadcasting and dissemination chain of television and radio programs;
6. contribute to establishing new high quality digital systems and electronic cinema systems.

2. RAI, may also extend the range of services managed jointly with national and foreign groups, in order to diversify and acquire new skills and technologies, as long as this is within the limits set by statutory regulations, is not a detriment to public service and contributes to a balanced company management.

3. RAI shall submit a detailed report to the Ministry on an annual basis regarding the initiatives undertaken pursuant to the previous paragraph.

1. To disseminate awareness of the language, culture and economy of Italy in an international context, in particular to the Balkan states, Middle East and northern Africa, and to promote technological and industrial innovation, with special focus on multimedia convergence processes, RAI, with prior Ministry authorisation, may use satellites operating on radio frequencies to produce:

• television services of channels in clear mode via satellite with signal numbering systems, in compliance with the DVB-S (Digital Video Broadcasting - Satellite) standard approved by the EU;
• services which use adequate numbering and encrypting systems of the satellite disseminated signal to protect broadcast television programs which do not possess rights for disseminating abroad: however, these programs may not have priority over those broadcast in clear mode via satellite:
• mono or stereo radio services in clear mode with signal numbering systems;
• television and radio services through the use of analog systems; the licensee shall convert such services into digital.

2. For programs which are clearly socially useful, for example educational channels or channels for volunteers and the disabled, consumer protection channels related to agriculture, food and the environment, produced directly by RAI or on behalf of or with the participation of other Ministries and Public Universities, the testing may be authorised by the Ministry even on specific dedicated channels.

3. RAI agrees to disseminate regional information programs already broadcast over land networks in its services broadcast via satellite on a rotating basis.

1. RAI agrees to provide the public radio and television service based on management technical and economic criteria suitable for achieving the objects of rationalization related to the company industrial, financial and productivity structures.

2. Certain and appropriate financing is ensured for this activity for the three year period of the agreement from subscription fees, amounts paid for agreements or conventions with government agencies and other revenues allowed by law.

3. RAI shall be required to maintain a balanced and supportable ratio between net financial debt and equity (D/E) deducted the amounts for receivables with government agencies. Extraordinary investments for the three year program shall take proceeds from fees for the three year period into account, to establish the ratio between net financial debt and equity.

4. In order to ensure the transparency of public financing, in its accounting RAI agrees to indicate the following separately: public resources, those from commercial activity pursuant to art. 5 of the Convention and those from advertising pursuant to art. 15 of law no. 103 of 1975, as well as the costs of radio and television public service activity as defined by law, the Convention and this agreement and those from other activities, with procedures that make it possible to verify that public resources are solely used for public service activities. For this purpose a joint Committee shall be established composed of representatives of the Ministry, Ministry of the Economy and Finance and RAI, constituted by a decree of the Ministry of Communications, which indicates the general criteria and the procedures for separate accounting according to the guidelines set forth by the European Commission in memorandum 2001/C 320/4 and considering the experiences of member State public service bodies..

5. To provide complete information on operating trends, RAI shall be required to send a report to the Ministry and the Ministry of Economics and Finance on the economic and financial results from the previous fiscal year which, not solely based on company sources, shall contain information on:

• distribution of the advertising market with indication of the sources of such, for each medium of communication (newspapers, magazines, television, Internet etc.);
• licensee revenue from advertising by medium and type;
• advertising indexes by time band and overall.

6. Moreover, RAI is required to submit the following to the Ministry and Ministry of Economy and Finance, within 15 days of their approval: industrial plans (economic, financial, investment and strategic), fiscal year economic forecasts, fiscal year balance sheets, and by 30 September of each year, a report containing the economic and financial results of the company as of 30 June.

1. For each of the years for the duration of this agreement, the change in percentage of the surcharge due from ordinary subscribers and special subscriber fees for possessing radio and television equipment outside a household is determined using the following formula, broken down in three variables:

where

C is the percentage change of the fee for year n;
l is the sum of programmed inflation fixed by the Government for year n and a share of the differential between the tendential inflation rate (latest value available as of the date the ministerial decree falling within paragraph 3 below is issued) and programmed for year n-1;
O is the result of two components:

1. decrease connected with the possible failure to realize the total amount of investments/costs included in variable V for year n-1; the decrease is equal to the amount of the surcharge for the unrealised amount;
2. increase/decrease tied to achieving specific, measurable qualitative and/or quantitative objects characteristic of the RAI mission, with particular focus on the obligations of the television service and programming for minors: this variation cannot exceed ±20% of the overall increase.

V is the total or partial economic impact of additional projects forecast for the year n in relation to turnover from subscription fees of fiscal year n-1

2.The amount of recovery of the inflation differential for year n-1, the variable V and the amount for projects as well as the qualitative and quantitative objects and the related percentage not exceeding 20% shall be annually established by ministerial decree based on proposals from the committee falling within subsequent paragraph 3.

3. The parties agree that a joint committee composed of representatives of the Ministry, Ministry of Economy and Finance and the licensee, constituted by decree of the Minister of Communications, sets forth and presents by the month of October each year, a motivated proposal for the values falling within the previous paragraph.

4. The joint commission may propose opportune integrations of an extraordinary nature to the formula defined in paragraph 1.

5. The surcharge measures falling within paragraph 1 as well as the amount of subscription fee for each type of user shall be established on an annual basis by decree of the Minister of Communications by the month of November of the year before.

1. To manage and develop subscription fees, as well as for ordinary and compulsive collection of such, RAI shall provide the Ufficio Registro Abbonamenti Radio e TV (U.R.A.R. - TV) in Turin (office for the Registration of the Radio and TV subscriptions) with facilities, means and personnel of the agency itself, as well as the necessary premises, procedures and costs established in the convention approved by decree of the Minister of Finance on 23 December 1988, published in Italian Official Gazette no. 25 on 31 January 1988 and subsequent modifications.

2. The amounts of subscription fees due to the licensee shall be paid by the Financial Administration on the basis on total revenues estimates of the State Budget and actual collections, by means of deferred quarterly payments with final settlement at the end of each fiscal year.

3. The Ministry of Economy and Finance - Revenue Department - shall issue a specific order of payment in favour of the licensee pursuant to art. 6 of Presidential Decree no. 367 of 20.4.1994, so that said amounts are credited to the licensee by the end of the quarter.

1. Within three months from the date this agreement comes into effect, a Permanent Advisory Body for contacts between the Ministry and RAI which, with a consultative character - shall examine the initiatives undertaken by the licensee pursuant to art. 7 of this agreement. Moreover, this Body shall verify respect of the rights of access, according to the indication for the Parliamentary Committee for general guidelines and monitoring of radio and television services..

2. The Body shall be composed of 24 members, 12 appointed by the Ministry, selected among representative from Committees, Councils and non-profit Organization of a national importance, with skills and experience on the subjects falling within paragraph 1, and 12 appointed by RAI. Representatives from Agencies, Institutions and non-profit Organizations can participate in Permanent Advisory Body sessions as guests.

3.The Advisory Body shall be jointly coordinated by a representative of the Ministry and one from RAI who shall use personnel, means and services made available by RAI for this position. The Advisory Body shall approve operating regulations within three months from the date it is established. The coordinators shall be charged with supervising the procurement of the necessary instruments for the work of the body, coordinate the work of sessions, maintain contacts with the Institutions, Agencies and associations. The Advisory Body shall carry out its duties by examining on at least a weekly basis all the specific communications that RAI shall prepare related to subjects falling within art. 7. and expressing an opinion thereto - even in written form - which shall be sent to the Ministry, RAI, the Parliamentary Committee for general guidelines and for monitoring radio and television services, to the Italian Communications Committee and to pertinent Institutions and Agencies or those involved in the specific subjests.

4. Advisory body members shall remain in office for the duration of this agreement.

1. Without prejudice to the provisions of laws or regulations, the Ministry shall monitor and supervise insofar as the obligations pursuant to this agreement are observed.

2. The Ministry, in relation to monitoring activity, has the right to provide for verifications and inspections and to ask RAI for information, figures and useful documents at any time.

3. RAI shall be required to grant Ministry officials access to its plants and offices and to provide the necessary collaboration, with the use of its own means and personnel in order to effect supervision activity. Unjustified refusal to do so may result in infliction of a sanction pursuant to the following article.

4. Once a year The Ministry shall report to the Parliamentary Committee for general guidelines and for monitoring radio and television services on the implementation of the agreement, any breaches of such and inflicted sanctions.

1. In the event that the Ministry verifies a breach of one or more of the obligations falling within this agreement, it shall notify the legal representative of RAI within 30 days of such breach, who in the following 30 days has the right shall have the right to be heard in the subsequent 30 days, including by means of a specially appointed attorney, or to submit rebuttals, clarifications and documents. The Ministry may acquire documents and information, even from third parties, and conduct inspections during the course of the investigation.

2. Within 90 days from such notification, the Ministry shall issue a justified injunction and apply any sanction which, except in cases where the breach involves a more serious sanction, corresponds to the fine provided by art. 22 of the Convention.

3. Payment of the fine shall be made within 30 days of receipt of such request; if such payment is not made within this period the amount shall be deducted from the guarantee deposit established by RAI, pursuant to article 20 of the Convention, which shall be re-integrated under the terms provided by this same article. All provisions pursuant to laws and regulations shall not be prejudiced by the above.

1. RAI shall provide the broadest collaboration to pertinent Administrations for the purposes of verifications made necessary by summons, questioning and parliamentary inspections.

2. It shall rely to Ministerial requests within a period of fifteen days, unless a shorter period is requested in the event of specific urgent cases.

1. The ministry and RAI agree to update this agreement in light of new regulations enacted during the three year period the agreement is in force.

2.In the event that extraordinary circumstances result in intolerable imbalances of the performances pursuant to this agreement, a review of the established obligations hereto may be effected based on request from one of the parties.

1. This agreement shall enter into force the day following publication of the Presidential Decree which approves it in the Official Gazette of the Republic of Italy and shall expire on 21 December 2005. Until the date that the subsequent Agreement enters into force, the relationships between the licensee and the Ministry shall be governed by the provisions of this Agreement.

2. The parties shall start negotiations for stipulation of a new agreement related to the three year period 2006-2008 by 1 July 2005.

3. The appendices are an integral part of this agreement and shall not be subject to publication in the Official Gazette of the Republic of Italy. These appendices shall be deposited with the Ministry Directorate General for Licenses and Authorizations.

4. The Ministry and RAI agree to provide maximum dissemination of this agreement using all means of communication.

Rome,

Ministry of Communications
Secretary General
Pref. Vittorio Stelo

RAI - Radiotelevisione Italiana S.p.A.
President of the Board of Directors
Prof. Antonio Baldassarre