FILE PHOTO: the Telecom Italia logo is seen at its headquarters in Rozzano district in Milan, Italy, May 25, 2016. REUTERS/Stefano Rellandini/File Photo/File Photo
ROME (Reuters) – as A single network entity, controlled by Italy’s former monopoly in the phone group Telecom Italia (TIM) (TLIT.MI), it would be a “step back”, the country’s communications watchdog, the chef, Angelo Cardani said on Friday.
Last month, TIM has signed a non-disclosure agreement with the state lender CDP’s utility Enel (ENEI.MI) with the start of a conversation about the possibilities for the integration of its fiber optic network to that of its smaller rival, Open-Fibre, including a possible business combination.
TIM’s Chief Executive, Luigi Gubitosi, said earlier this year that it will merge and Open Grain, with TIM, the networks could have a positive impact on both the businesses and the addition of TIM would make a certain amount of control of the new entity.
“The incumbent (TIM) the control of the new entity would not only be a major U-turn, but it will also take a step back,” Cardani told reporters when asked about a possible merger between TIM and the Open Fiber optics networks.
In a later statement, Cardani said that he was not talking about a specific case, but in general, it is a deal because it reduces the benefits of competition.
Cardani, seven-year mandate at the helm of the communications watchdog, AGCOM, which is in addition to the authority to give the green light to a deal between TIM and to Open the Grain, is next week.
Report by the police saw the adoption of an Writing by Elvira Pollina; editing by Giselda Vagnoni and Emelia Sithole-Matarise