The Italian regulator seeks stakeholders’ input on the plan through a consultation, in parallel with the review of the wholesale broadband access markets.
Background: AGCOM completed a draft review of the next wholesale broadband access markets in December 2018. This also took account of Telecom Italia’s proposal for the legal separation of its fixed network.
What’s the regulator’s stance? AGCOM has now published the draft, which will be subject to consultation. In several passages of the 454-pages long document, AGCOM notes the plan does not substantially alter the competitive landscape in the country; in fact, elements of vertical integration remain, which could give TIM a significant competitive advantage over other players, including Open Fiber. AGCOM published two different sets of possible remedies (one based on the assumption that the separation takes place, and one based on existing market conditions); these only differ to some extent in the transparency, non-discrimination, and accounting separation requirements.
What happens next? Stakeholders will be able to comment on the plan for the next 45 days. Based on their input, AGCOM will decide on any further measures to take as a result of the separation. However, it is now unclear how TIM reacts to AGCOM’s preliminary assessment: the CEO who submitted the plan, Amos Genish, was replaced in November; the new one could decide to withdraw it in its current form.
