Telecom Italia (BIT:TIT) is reportedly eyeing a potential functional separation of its fixed-line network, aimed at avoiding antitrust fines of up to €4bn (US$4.4bn).
The board will tomorrow review the proposed move at a meeting to discuss Q2…
Telecom Italia (BIT:TIT) is reportedly eyeing a potential functional separation of its fixed-line network, aimed at avoiding antitrust fines of up to €4bn (US$4.4bn).
The board will tomorrow review the proposed move at a meeting to discuss Q2 results, reports Bloomberg. If agreed, the Italian incumbent would create a unit similar to BT’s Openreach division – a separation forced by UK regulator Ofcom in 2005.
Under the proposal, Telecom Italia would buy wholesale access from its own OpenAccess unit, at the same prices as other telcos.
Rivals Vodafone and Fastweb, which lease Telecom Italia’s fixed-line network under wholesale agreements designed to facilitate equal access and therefore competition, have accused the operator of abusing its dominant position. As part of this, they are seeking damages of some €1bn and €1.7bn respectively.
Competition watchdog Agcom on Monday said Telecom Italia had abused its dominant position, while the Council of State in May reportedly levied a €104m antitrust fine against the operator.
Telecom Italia in the past has examined the possibility of a structural separation of its network, with a view to reducing its debt burden.
A spokesperson for the company was not available by press time.
