AGCOM seeks separation of Telecom Italia's network

Italy's telecommunications regulator AGCOM wants Telecom Italia to put its fixed-line network under separate management by the end of the year to increase competition in the market, an Associated Press report said.

The Associated Press report quoted AGCOM chairman Corrado Calabro as saying that Telecom Italia is still the dominant operator in both wholesale and retail fixed-line markets, and the 'functional separation' of its network is a solution in the interest of all operators.

AGCOM has already proposed putting Telecom Italia's fixed-line network under independent management, following the model used in Britain to grant fair access to all industry players, the report said.

Under the proposal, the network would be put in a ring-fenced division that would be separated from the rest of Telecom Italia activities and controlled by a board made up mostly of members nominated by the watchdog, the report further said.

Earlier, Telecom Italia said its first-half EBITDA fell 3.1% compared to the same period in 2006, the report further said.