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UPDATE 1-Vodafone, Sky, WindTre urge Italy to create independent single network operator

Mon, 21st Sep 2020 20:53

(Recasts, adds comments, background)

MILAN, Sept 21 (Reuters) - Vodafone, Comcast unit
SKY and WindTre on Monday urged Italy to create a
single broadband communications network that can guarantee
neutrality and independence for all players.

In August, Rome signed off on a plan to create a national
unified fast broadband network designed in part to head off
concern that Telecom Italia (TIM), Italy's biggest
phone group, could end up with too much sway over it.

Leaders of the three companies met on Monday with the chief
executives of state lender CDP and TIM.

"The three CEOs hope the network plan can be developed in
line with its premises, giving rise to a non-vertically
integrated operator," they said in a joint statement.

TIM, with a large retail client division, has repeatedly
said it wants to control any single grid while European
regulations favour the adoption of a non-vertically integrated
model outside TIM’s control.

Under the government's plan, TIM could have a majority of
shares but would not have control of the board, while the grid
would have to be open to all operators and acceptable to
regulators.

Last week EU antitrust chief Margrethe Vestager declined to
comment on the plan to create a single network through the
merger of TIM's grid assets and those of smaller wholesale-only
rival Open Fiber.

"One can imagine that you have a nationwide wholesaler. That
is definitely imaginable ... The question of course is (whether)
that is an independent wholesaler or the wholesaler also has
ties vertically to retailers," Vestager said.

"That would be a competition assessment and that would be
our approach no matter what country it would be concerned with,”
she said.
(Reporting by Stephen Jewkes and Elvira Pollina; Editing by Dan
Grebler)

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