Telecom Italia's Competitors 'Surprised' That Spinoff on Hold

By Manuela Mesco

MILAN--Telecom Italia's (TIT.MI) competitors said Tuesday it was "surprising" that the country's largest operator is making its plan to spin off its fixed-line copper network dependent on regulatory changes.

Late Monday, former state-owned operator Telecom Italia said that before going ahead with the network spinoff, the company needed to verify the regulatory path due to come into force in Italy over the next few years.

Its decision followed regulator AGCOM's proposal last week to cut the rates that alternative telecom operators have to pay Telecom Italia to access its fixed-line network.

The three main alternative operators in the country--Vodafone PLC's (VOD.LN) Italian unit, Vimpelcom's (VIP) Wind and Swisscom's (SCMV.VX) Fastweb--said in a joint statement that AGCOM "simply operated in line with regulations" when it proposed the rate cut.

Wind, Vodafone Italy and Fastweb added that they wondered if the spinoff plan, presented as a measure necessary to revive the market and competition, "wasn't really just a way to put improper pressure on the regulator."

Write to Manuela Mesco at [e-mail]

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