Milan-based Telecom Italia (TI) is reportedly planning to focus on growing its existing operations in Brazil and Argentina, rather than enter new markets in Latin America.
The company’s existing presence in the region requires a lot of investment in…
Milan-based Telecom Italia (TI) is reportedly planning to focus on growing its existing operations in Brazil and Argentina, rather than enter new markets in Latin America.
The company’s existing presence in the region requires a lot of investment in infrastructure, meaning it has a lot on its hands already, CEO Franco Bernabe reportedly told a press conference.
In Brazil, the company’s TIM mobile operator plans to invest in fixed line through Intelig, its fibre optic unit, to meet increasing wireless demand, Bernabe is cited as saying.
In addition, TI has a 58% stake in Telecom Argentina, which reportedly plans to invest around US$2.5bn in its operations within the next three years.
Reports suggest the group is keen to follow the trend of European mobile operators betting on growth in Latin America, as they are weighed down by increasing competition and regulation at home.
TI used to have a broader presence in Latin America, with operations in Chile, Peru, Bolivia and Cuba, but has sold off these assets in the last decade.
Meanwhile, Luca Luciani, head of TIM Brasil, is reportedly being investigated by Italian authorities for aggravated fraud, obstructing regulators and making false statements.
The investigation is being carried out by the Milan Prosecutor’s Office as part of a wider probe into false SIM cards, reports add.
TI was unable to comment before the press deadline.
