Telecom Italia (TI) has abandoned plans to spin off its fixed-line network, but is still pushing for the adoption of an ‘Equivalence of Input’ (EoI) model, according to CEO Marco Patuano.
Patuano told Italian newspaper Il Sole 24 Ore that national…
Telecom Italia (TI) has abandoned plans to spin off its fixed-line network, but is still pushing for the adoption of an ‘Equivalence of Input’ (EoI) model, according to CEO Marco Patuano.
Patuano told Italian newspaper Il Sole 24 Ore that national telecoms regulator Agcom is no longer looking at the spin-off, which TI had considered as a way of helping to cut debt.
Instead, Agcom is considering TI’s proposal to change the access to its fixed-line network from an Equivalence of Output (EoO) to an EoI model. Patuano described the EoI model as best for guaranteeing access to all licensed Italian operators.
However, he noted that the EoO model is considered best practice internationally and added that the regulator and all operators will have to agree on the change to an EoI model for it to take effect.
Patuano said he believes it is very important for telcos to move away from “competition by litigation”, saying this distorts competition, damages the sector as a whole and distracts operators from what they should be doing.
TI approved a plan to spin off the fixed-line network into a newly-created company last May, but the project was put on ice after Spanish incumbent Telefonica agreed to gradually increase its stake in TI via holding company Telco. Telefonica was said to have preferred the Milan-based telco to find other means of improving domestic revenues. TI has since sold its stake in Telecom Argentina and is sounding out the market for its mobile towers in Brazil and Italy ahead of a potential sale. TI aims to generate about €2bn (US$2.8bn) in cash proceeds from the combined sales of the towers and local unit TI Media Broadcasting.
As for the rumours that TI is considering buying a stake in dark fibre operator Metroweb Italia, Patuano said such a move would make sense in theory. However, he stressed that such a deal would present both economic and regulatory issues.
TI shareholders are set to meet on 16 April, when they will appoint a new board of directors and chairperson.
