UPDATE: Telecom Italia To Boost Ultra Broadband Coverage In Italy

10th Jun 2010 13:57

(Adds details.) By Giada Zampano of DOW JONES NEWSWIRES NAPLES (Dow Jones)--Italy's largest telecommunications operator Telecom Italia SpA (TIT.MI) told regulators Thursday it will push ahead with its own plans to boost broadband coverage in Italy, aiming to offer ultra broadband services to 50% of the Italian population by 2018. Telecom Italia pledged to reach half of the Italian population with 1OO megabit fiber optic infrastructure, able to deliver high-speed services and huge amount of data. It didn't specify the amont of this investment. After a hearing with telecoms regulator Agcom in Naples, Telecom Italia Chief Executive Franco Bernabe told reporters the company wants to stick to its investment plans, which include investing EUR7 billion on the fixed-line network upgrade in the next three years. He added that Telecom Italia also asked Agcom for the go-ahead to start selling ultra broadband services in Italy's main cities Milan and Rome. Asked about an alternative plan by rival operators Fastweb (FWB.MI), Vodafone Group PLC (VOD), Wind and Tiscali (TIS.MI) to invest EUR2.5 billion to bring broadband to Italy's 15 largest cities in the next five years, Bernabe said: "We know there's a plan by alternative operators, but we're going ahead with our plan." The Italian regulator has in the past called for a common effort by Italy's telecoms operators to boost broadband investment in the country, but Telecom Italia has always said it isn't willing to share control of its key fixed-line and broadband infrastructure with other operators. On the other hand, the alternative operators have asked the Italian government to start the process allowing for the creation of a fiber-optic company with both operators and public bodies as investors. In particular, they hope Cassa Depositi e Prestiti SpA (CdP), a state-controlled fund in which Italy's banks also have stakes, would join the project. The alternative operators have said the plan might be expanded to include up to EUR8.5 billion in investment so as to cover all Italian towns with more than 20,000 inhabitants, or around 50% of the population. They have said the project is open to Telecom Italia and to any other interested party. -By Giada Zampano, Dow Jones Newswires, +39 348 7678 016; [email protected] (END) Dow Jones Newswires June 10, 2010 08:57 ET (12:57 GMT)