Friday, December 12, 2008

EU objecting to functional seperation of Telecom Italia?

This is how subtle it gets: AGCOM (the Italian) NRA proposes functional separation of Telecom Italia. Great, isn't it? Only the second time in Europe, after BT/Openreach/EAB. TI would create a network company Open Access, and an independent board to oversee things.
But wait. This time it's the EU that objects. Basically, it fears the terms will be too friendly for Telecom Italia.

"The network is our core business." So far, only SingTel and Bharti Airtel (and a more recent story here) have been as enlightened as to step away from this old-style telco thinking.
Telecom Italia would have all the reasons of the world: it has a heavy debt load, and taking separation even one step further (structural separation) would allow it to attract third-party funding to roll out FTTH.

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