Telecom Italia chief welcomes regulator’s move on network separation

Telecom Italia CEO Amos Genish has welcomed a decision by communications regulator AGCOM to launch a public consultation on the telco’s plans for the separation of its network arm.

Amos Genish

Speaking on the sidelines of a meeting for the presentation of the company’s annual report, Genish said that he was nevertheless concerned about moves to push down the wholesale prices that the network arm of the company can charge to third-party operators. He said that the regulated prices did not always seem to take into account the costs sustained by the unit.

Genis said that the ruling by ACGOM opened the way to separateion of the netowr4k company by January next year. However, he said it would be necessary to create a sustainable model for wholesale prices, after sharp falls over the past two years.

AGCOM said last week that TIM’s proposal for the separation of its infrastructure arm is admissible for a market analysis and would be submitted to a public consultation.

TIM’s board had approved the company’s plan to create a separate legal entity for the infrastructure arm, 100% owned by TIM, in March.

The move came after the Italian government triggered its ‘golden power’ to intervene in cases concerning assets of strategic national significance.

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