A wave of price rises is coming to European telecoms, with many customers soon to face above-inflation increases in their monthly bills. What are these price rises based on, how much they are set to be, and how have they been implemented and communicated?
Italy’s network spin-off faces regulatory hurdles
After many yeas, Telecom finally announced the start of the legal separation of its copper and fibre network, which could also be the first step towards a merger with wholesale-only operator Open Fiber. But the separation will not be as strong as that of Openreach from BT in the UK
Italian government must tread carefully in the TIM–Open Fiber merger
The Italian government is aiming to facilitate the creation of a wholesale-only network provider, resulting from the spin-off of Telecom Italia’s fixed network and its merger with Open Fiber. The move aims to facilitate investment in ultra-broadband, in a country where network duplication is particularly undesirable due to how the population is distributed.
Telecom Italia approves network separation plan
On 6 March 2018, Telecom Italia (TIM)’s board approved a plan to move the company’s fixed network assets into a legally separated entity, which will still be part of the group and will be 100% controlled by TIM. According to the plan, access to the network will be granted through a ‘one-stop-shop’ access point for regulated and unregulated wholesale services for all operators including TIM, delivering a 'fully neutral and equivalent' model.
For the first time, Telecom Italia’s network separation is credible
Network separation of Italy’s incumbent, Telecom Italia (TIM), has made the headlines for a number of years now. More often that not, rumours were not well founded, as they were fuelled by speculation around the need for TI to lighten the regulatory burden it faces, and be more agile in competing at the retail level. The fact that TIM is now controlled by a foreign group is pushing the government to consider separation; so much so, that TIM’s next board meeting on 6 March 2018 will vote on a plan to spin-off the network itself. At the same time, the change in landscape of Italy’s wholesale market could make this a well-timed move for TIM.
