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Cambridge, Massachusetts October 27, 2006—Telecom Italia’s separation of the wholesale fixed-line network from its retail operations will boost competition, according to Pyramid Research’s latest Analyst Insight.
“The restructuring should lead to lower tariffs and higher adoption in the broadband segment,” comments Juliano Torii, author of the Insight.
Torii found that the degree of success is dependent on a number of key issues that remain to be determined such as how independent the new entity will be, how it will set prices and investments and how it will be regulated.
“Lacking vigilance from the regulator, TI could get away with mostly cosmetic measures, or with a pricing model that does not adequately remunerate capital employed,” continues Torii.
The Insight also found that if the reorganization takes a long time, TI would be able to consolidate its retail broadband market share ahead of further liberalization, delaying its impact.
If you would like to speak to Juliano Torii about further implications of Telecom Italia’s restructuring, please contact Amalia Vega using the details below.
About Pyramid Research
For twenty years, Pyramid Research has helped companies in the converging communications, media and technology industries stay ahead of market trends, understand competitive threats and capitalize on opportunities. We advise the world’s leading vendors, service providers, equipment manufacturers, and the financial community on how to implement best practices, build offensive growth strategies and drive profitability.
Press Contact:
Amalia Vega
Pyramid Research
E: avega@pyr.com
P: (617) 494-1515
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