Daily News Selection about the Italian Leading Incumbent Convergent Operator
Wednesday 4 June 2008
Telecom Italia to cut home costs base by 40 pct-report Reuters - USA MILAN, June 4 (Reuters) - Telecom Italia (TLIT.MI: Quote, Profile, Research) will cut its domestic operating spending by about 40 percent in the next few ...
Telecom Italia CEO continues highlighting cost cutting rather than business development in a consistent way with the "No fireworks" statement of March. The huge debt prevents new acquisitons in high growth markets and the main source of savings according to the CEO is the next generation network based on optical fiber. However next generation networks require timely and noteworthy investments that Telecom Italia is not addressing right now. The financial discipline should go with a helathy business development and business innovation otherways the game is over. Very soon, when the financial situation of Telecom Italia will keep improving in a stable way, the market will ask a different approach to address the real business and the game will become tough.
Telecom Italia CEO continues highlighting cost cutting rather than business development in a consistent way with the "No fireworks" statement of March. The huge debt prevents new acquisitons in high growth markets and the main source of savings according to the CEO is the next generation network based on optical fiber. However next generation networks require timely and noteworthy investments that Telecom Italia is not addressing right now. The financial discipline should go with a helathy business development and business innovation otherways the game is over. Very soon, when the financial situation of Telecom Italia will keep improving in a stable way, the market will ask a different approach to address the real business and the game will become tough.
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