Telecom Italia: 'No miracles, no fireworks'

New Telecom Italia CEO Franco Bernabe did not sugar-coat the company's future outlook, saying, "There will be no miracles, no fireworks' to change the situation in the short-term." That situation is one in which Telecom Italia has been hit hard by competition and burdened with debt. Bernabe, who had led Telecom Italia during the 1990s, was brought back into the fold by Telecom Italia's new controlling shareholder, Spain's Telefonica. Bernabe is now launching a debt reduction program, which includes slashing the company's dividend to shareholders from 14 Euro cents to 8 Euro cents. He added that revenue will grow only one percent to two percent per year through 2010.

For more:
- read this story at The Wall Street Journal
- see this Thomson Financial report at Forbes

Related articles:
- Here's a bunch more news about Telecom Italia

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceTelecom!

The Telecom industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceTelecom as their must-read source for the latest news, analysis and data on the intersection of telecom and media. Sign up today to get telecom news and updates delivered to your inbox and read on the go.

Suggested Articles

Flume has launched with the goal of providing fast, affordable internet connections to at least 600,000 low-income residents in New York City.

Comcast announced that its Comcast RISE program is providing more than 700 Black-owned businesses support including technology upgrades.

IBM is planning to cull about 10,000 jobs in Europe in order to lower costs ahead of its split into two businesses.