11 October 2008

Fastweb against any Telecom Italia network spinoff

CEO Stefano Parisi alleges any separation would be purely of financial benefit to Telecom Italia.

Fastweb SpA doesn't view a possible spinoff of Telecom Italia's access network as a way to boost broadband investment in Italy, chief executive Stefano Parisi told Dow Jones Newswires in an interview Friday.
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"We don't favor a possible spinoff of Telecom Italia's network, because that would probably be only a financial solution for Telecom, but not a good deal for the whole sector in Italy," Parisi said on the sidelines of a broadband event in Capri, Italy.

Parisi said that putting Telecom Italia's fixed-line network into a separate company would mean the debt-laden incumbent could transfer part of its debt, costs and employees to the new company.

"The immediate consequence would be for Telecom Italia to ask for an increase in unbundling prices to cover additional costs, and that would strongly hit competitors," Parisi said.

To boost competition and allow equal access to the network for all alternative operators,"a functional separation of Telecom Italia's network would be sufficient," he said, though "any kind of regulatory concession made to Telecom Italia in exchange for opening up its network would be unaccettable."


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