Telecom Italia's main wireline competitors Vodafone Italia, Fastweb and Wind said they were surprised by the incumbent telco's decision to not proceed with the spinoff its wireline network because of Agcom's decision to lower wholesale local loop unbundling (LLU) prices.
In announcing its move on Tuesday, Telecom Italia said that Agcom's draft decisions could affect its wireline network separation plan.
The three service providers said that Agcom's move to lower LLU rates were a positive step in enabling competitive providers to challenge Telecom's dominance of Italy's telecom market, one where it has continued to have one of the highest market shares and margins throughout Europe.
Agcom "simply operated in line with regulations when it proposed the rate cut," the three companies said in a joint statement.
Echoing a similar sentiment of local analysts, the providers said they wondered if Telecom Italia's spin off plans "wasn't really just a way to put improper pressure on the regulator."
- Wall Street Journal has this article (sub. req.)
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