Displaying items by tag: Telecom Italia
Telecom Italia today confirmed that it has been in talks with Italian network provider, Open Fiber, to potentially merge and initiate a full fiber network rollout.
The discussions have been ongoing between the two companies since June 2019. Back then, the Italian government made it clear that they would prefer it if one operator would provide the country with fiber optic networks.
Late last year, Luigi Di Maio, Italy’s deputy Prime Minister said, “We are working to set the conditions in order to create a single player to distribute internet and broadband.”
In reference to the potential merge between the two entities, CEO of Telecom Italia, Luigi Gubitosi said that the talks are still ongoing and that “in life there is always a plan B”.
In order for the merge to happen, a few factors need to be considered. Open Fiber is owned by Enel, the Italian utility provider and renowned Italian Investment bank Cass Depositi e Prestiti. Due to this, for a merge to take place between the two, Telecom Italia would have to buy out Enel’s stake.
When asked about negotiations with Open Fiber at an industry event earlier this week, Gubitosi stated, “Funds have shown an interest in investing, even at valuations that could appear aggressive.”
Telecom Italia (TIM), Qualcomm Technologies and Ericsson have successfully completed the first, live video call in Europe using 5G millimeter wave (mmWave) spectrum.
The partners used a smartphone equipped with the Qualcomm Snapdragon X50 5G chipset on Ericsson equipment to make the call during the inauguration of the TIM’s new 5G Innovation Hub in Rome.
The new TIM 5G Innovation Hub aims to attract and support an ecosystem of startups, research centers and other stakeholders interested in the digital transformation. In addition to the 5G video call, TIM also showcased a series of new services including a remote-driven car; a virtual museum tour, remote controlled industrial robots; and multiplayer interactive video gaming using augmented reality.
Mario Di Mauro, Chief Strategy, Innovation and Customer Experience Officer at TIM, said: “When we started to define the strategy and the development plans for 5G, we immediately realized that such a massive challenge could not be faced without the support of a wide range of partners committed to the same goal. We therefore proposed Qualcomm Technologies set up a place where work on the new 5G services and every business idea could find a quick realization thanks to the support of leading international technology players, innovative partners and start-ups from the local and national ecosystem.”
Finnish telecommunications firm Nokia has announced that it has launched its 5G Mobile Network Architecture - which is a research project consisting of 14 major partners, that includes Huawei, Telecom Italia and Samsung.
The innovative research initiative will last for a period of two years and will have a budget of €7.7M. The program aims to focus on using network slicing to accelerate pre-standard 5G use cases in a range of areas such as media, automotive and healthcare. In a statement released by Nokia, the telecommunication colossus said it planned on bringing the 5G mobile network architecture from concept to the real world.
The statement read, "As 5G networks need to simultaneously support various services with different requirements, network slicing will be a crucial aspect of the network architecture, providing flexible and adaptive networks which fulfill the 5G requirements.
The consortium of partners involved in the project will involve mobile network players from the UK, Germany, France, Spain, Italy and Greece. The collaboration will be crucial in order to utilize technical know-how required to turn the project's vision into reality and will include two real-world test bed implementations.
The formation of this project is the second-phase of the EU-backed 5G Infrastructure Public Private Partnership (5G-PPP). The EC first publicly disclosed the initiative back in December 2013, in which it announced that it planned to invest €700M through its Horizon 2020 program.
Head of end-to-end mobile networks solutions at Nokia Bell Labs, Peter Merz, declared that Nokia was fully committed to the EU-backed infrastructure initiative. Merz said, "Nokia is fully committed to the 5G-PPP: we have delivered know-how and innovative technologies since its launch in 2015 in order to strengthen the European 5G footprint."
In addition to this latest announcement from Nokia, the Finnish telco last month indicated its ambition to broaden its focus on early 5G mobility use cases, which was done in response to growing interest in technology from operators in the US, China, Japan and South Korea ahead of expectations of global deployment in 2019.
French media group Vivendi declared on August 7 that it “does not exercise any de facto control over Telecom Italia” under Italian law, following a request by Italy’s market watchdog Consob to confirm the matter.
The company’s growing influence in Italy’s telecom sector has come under scrutiny since it bought a stake of 24 percent in Telecom Italia and took 29 percent of the country’s largest commercial broadcaster, Mediaset.
If Vivendi said it effectively controls Telecom Italia, it would be forced to consolidate the group’s debt pile of 25 billion euros into its accounts and would give the Rome government the right to step in as it is allowed to do for companies of national interest, Il Sole 24 Ore reported.
Vivendi denied having de facto control of Telecom Italia in a press release saying its participation in the company is “not sufficient enough to allow it to exercise, on a stable basis, a dominant influence at Telecom Italia shareholders’ meeting.”
In this respect, it added, “all empirical data – including attendance at the ordinary shareholders’ meetings of Telecom Italia held between June 22, 2015 through May 4, 2017, the shareholdings held by the various investors and the results of the voting on resolutions – unequivocally reveal that Vivendi is not in a position to control Telecom Italia ordinary shareholders’ meetings.”
Vivendi’s statement came two months after it received the conditional approval from European Union antitrust authorities for its plan to gain control of Telecom Italia.
Telecom Italia said recently that its board on July 27 had acknowledged that Vivendi was “directing and coordinating” the operator. However, Telecom Italia never specifically addressed where the media group had total control over it, Reuters said.
The Italian government was also looking into whether Vivendi breached an obligation to inform Rome of its “direction” role at Telecom Italia, which is a requirement for organizations that are considered a strategic national asset.
Italian telecommunications incumbent Telecom Italia has appointed a new general manager – in a move that sees its largest shareholder tighten its grip on the operator. Vivendi’s Amos Genish will now run the company’s day-to-day operations.
Vivendi has a 24% stake in Telecom Italia, and the new appointment comes just days after CEO Flavio Cattaneo departed the company after just sixteen months at the helm, following a number of clashes with the French shareholder.
The new general manager has enjoyed a decorated career, he was CCO at Vivendi, and he formerly headed the Brazilian subsidiary of Spanish operator Telefonica, and also founded GVT, a leading Brazilian mobile operator. Genish, a 57 year-old former Israeli captain will now oversee all of the company’s operations and will be based in Rome.
Cattaneo is the second CEO to leave Telecom Italia in less than just two years after he repeatedly locked horns with the French group which is led by billionaire Vincent Bollore. He has previously expressed an ambition to establish a southern European media powerhouse. Vivendi CEO, Arnaud de Puyfontaine who also acts as Telecom Italia’s executive chairman - will assume the responsibilities of CEO on a temporary basis.
In addition to this, it was also disclosed that further announcements on governance will be made in September. Analysts have claimed that many investment funds that have shares in Telecom Italia, remain unflustered by the latest leadership reshuffle, and are confident that Genish can reinvigorate the operator with a number of deals, which may include a possible sale of the Brazilian unit to a spin-off of the Italian fixed-line network.
De Puyfontaine has admitted that he plans to establish a joint-venture between Telecom Italia and Vivendi’s pay TV unit Canal+, which would play into the French company’s vision of expanding its content distribution across platforms. The Italian operator’s only asset abroad remains its Brazilian unit, and de Puyfontaine said it was doing a good job, but remained coy in relation to a potential sale.
The idea of TIM exiting Brazil has been gaining traction among investors since Vivendi became a top shareholder, because the French group sold its own Brazilian operations before investing in Italy.
The CEO of Telecom Italia is set to accept a severance package rumored to be worth around €30m to pave the way for his imminent departure from the organization. Speculation has been rife for a number of months in relation to unrest between the CEO of the Italian incumbent Flavio Catteneo and its largest shareholder Vivendi.
It has emerged that Catteneo is expected to leave the Italian operator by mutual consent after negotiating the terms of the severance package. Vivendi which controls the operators board has been at loggerheads with the CEO for the past number of months, and a source close to Telecom Italia said the situation had become untenable for both parties, claiming ‘something had to give’.
Some shareholders have expressed their criticism to the amount the outgoing CEO will receive for his severance pay-off. However, the CEO was quick to defend the sum pointing out the list of successes he had delivered for the telecommunications colossus.
It has also been reported that Telecom Italia will hold a meeting of its Nomination of Remuneration Committee with only one item listed on the agenda, which is the examination of a proposal of mutual termination of the relationship of the company and Mr. Flavio Catteneo.
However, it was only a few weeks ago, a defiant Catteneo announced his intentions to remain on as CEO until the end of 2020, dispelling rumors he was set to quit the operator. Reports circulated that Vivendi had already lined-up a three-pronged leadership team to replace the CEO.
Tensions continued to soar, but the relationship completely broke down when it emerged that Vivendi planned to appoint its CCO Amos Genish as Telecom Italia’s new Managing Director in order to work alongside Catteneo.
The latest high-profile departure represents a recurring and worrying trend at Telecom Italia. Catteneo’s imminent exit means that the Italian telecommunications colossus will now have its third CEO in just two years. Marco Patuano left the firm in March, 2016, amidst reports of clashes with Vivendi. The French company which is the operator’s largest shareholder is increasingly attempting to extend its control on the operator.
Vivendi now is total control of both the Telecom Italia board and installed its own CEO Arnaud de Puyfontaine as the chairman of the operator earlier this year. In addition, the company gained permission from the European commission to assume control of the operator in May 2017.
However, the company’s progress has not gone unnoticed by Italy’s authorities. Italian regulator Agcom ordered Vivendi to cut its stake in either Telecom Italia or broadcast firm Mediatek in April, to meet stringent Italian media ownership rules. Vivendi is contesting the decision.
Italian operator Telecom Italia has announced that the Republic of San Marino will become the first country in Europe to have a 5G mobile network. Telecom Italia made the prediction following the disclosure of a memorandum of understanding (MOU) with government officials from San Marino.
In a statement issued to the press, Telecom Italia indicated that it plans to update mobile sites of its network with 4.5G in order to enable it to conduct trials on some features of 5G technology, such as evolved mast towers and carrier integration. The interim 3GPP standards for the revolutionary next-generation technology will be released in March 2018.
The Italian operator which is headquartered in Rome also disclosed its intentions to double the amount of existing mobile sites in San Marino, it also plans to install several dozen small cells in the innovative project which would make the microstate the first in Europe to have a 5G mobile network.
In a joint-statement in relation to the MOU between Telecom Italia and government representatives of San Marino, it said, “The particular geographical shape of this territory - and the distribution of its industries favor the use and development of innovative technologies. Thanks to this work, it will be possible to start the first testing of 5G technology on a national scale within the next year.”
San Marino is one of smallest countries in the world with a population of around 30,000 people. Some of the objectives of the project include a new mobile infrastructure with considerable transmission capacity that would be ten times that of 4G. The infrastructure would also be able to connect to large objects ahead of the 2020 deadline set by the EU.
According to Telecom Italia Mobile’s head of technology the scale of the project would see San Marino being established as the first 5G state in the world, which would place it ahead of technological superpowers such as South Korea and Japan. The race to deploy 5G continues to intensify between government bodies and operators.
Reports emerging from Italy suggest that the leading Italian operator has already begun installing 100 small cells in Turin as part of 5G network trials being led by the Italian government. However, it’s being suggested that it has more freedom to experiment in San Marino because there are fewer restrictions on the use of airwaves.
Earlier this month, a consortium of European operators including Telecom Italia expressed its desire to launch 5G services quickly. Industry analysts have predicted that the work currently underway in San Marino will be crucial to 5G in Europe.
The European Commission has approved the acquisition of de facto control over Telecom Italia by Vivendi. The decision is conditional on the divestment of Telecom Italia's stake in Persidera.
Telecom Italia is an Italian company, which provides voice and data services through mobile and fixed technologies, digital content services and IT services to enterprises. It is also active, through its subsidiary Persidera (a joint venture with Gruppo Editoriale L'Espresso), in the market for the wholesale access to digital terrestrial networks for the broadcast of TV channels.
Vivendi is a French company, which controls a group of companies active in the music, TV, cinema, video sharing and games businesses. Vivendi's affiliate company, Havas, is active in the advertising industry in Italy. Vivendi holds a significant minority stake in Mediaset, which is also active in the market for the wholesale access to digital terrestrial networks for the broadcast of TV channels.
The Commission found that, post-transaction, Vivendi would have had an incentive to raise prices charged to TV channels in the market for wholesale access to digital terrestrial television networks, where Persidera and Mediaset each hold a significant share.
The benefits of such a strategy would be obtained either directly through Persidera or indirectly via the minority shareholding in Mediaset, since other players active in the market do not represent a viable alternative for TV channels. As a result, TV channels would have found it more expensive to reach their audiences in Italy.
The Commission also investigated whether the relationship between Vivendi's activities in Italy in advertising, music, TV and mobile gaming and Telecom Italia's activities in fixed and mobile telecommunications raised competition concerns. In this respect, the Commission concluded that Vivendi would not have the ability or incentive to shut out other competitors from the relevant markets.
In order to address the competition concerns identified by the Commission, Vivendi committed to divest Telecom Italia's stake in Persidera. In view of the remedies proposed, the Commission concluded that the proposed transaction, as modified, would not significantly reduce competition in the European Economic Area (EEA) or any substantial part of it, including Italy. The Commission's decision is conditional upon full compliance with the commitments.
The Commission has exclusive jurisdiction to assess the impact of the proposed transaction on competition in the various markets affected within the EEA. However, the EU Merger Regulation recognizes that Member States may take appropriate measures, including prohibiting proposed transactions, to protect other legitimate interests, such as media plurality. A media plurality assessment typically looks at wider concerns about whether the number, range and variety of persons with control of media enterprises are sufficiently diverse.
In a decision issued on 18 April 2017, the Italian Communications Authority (Autorità per le Garanzie nelle Comunicazioni, 'AGCOM') found that Vivendi's position in the Italian markets for media and content is in violation of Italian media plurality rules.
As the Commission's investigation and findings concern solely the competition aspects of the proposed transaction, the Commission’s conditional clearance decision is without prejudice to the Italian media plurality review process.