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TI.A - Telecom Italia SpA News Story

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Last Trade - 05/07/19

Sector
Telecoms
Size
Large Cap
Market Cap £9.80bn
Enterprise Value £33.02bn
Revenue £13.69bn
Position in Universe th / 6850

TIM doesn't see Iliad starting Italian broadband price war

Fri 20th November, 2020 4:00pm
PARIS, Nov 20 (Reuters) - French telecoms firm Iliad
 ILD.PA  is unlikely to trigger an Italian broadband price war
when it enters the market next year, Telecom Italia's  TLIT.MI 
boss said on Friday. 
    Paris-based Iliad, founded and controlled by French tycoon
Xavier Niel, launched its mobile business in Italy in 2018 and
has gained 6.8 million customers since then through low-cost
offers. 
    This commercial success led Iliad to bring forward its
planned launch in broadband, which is now expected in 2021.
    "I don't expect a price war (in the fixed-line business),"
Telecom Italia's (TIM) chief executive Luigi Gubitosi told the
Morgan Stanley European Technology, Media and Telecom conference
in a virtual meeting.
    "I have confidence that Iliad will be rational .... They
bought a company in Poland, they got leverage for that. I'm sure
they made a good deal  but that means they're stretching their
resources further," he said. 
    Iliad said in September it would buy Polish mobile group
Play  PLY.WA  for 3.5 billion euros ($4.2 billion), including
debt.  urn:newsml:reuters.com:*:nL5N2GI0FR
    "They're burning 700 million euros in Italy this year,"
Gubitosi said. "How much money they want to burn more? They will
want to finally have some cash out."
    Iliad had no immediate comment. 
    ($1 = 0.8424 euros)

 (Reporting by Mathieu Rosemain; Editing by Mark Potter)
 ((Mathieu.Rosemain@thomsonreuters.com; +33 1 4949 5182; Reuters
Messaging: mathieu.rosemain.thomsonreuters.com@reuters.net;
Twitter: https://twitter.com/MathieuRosemain))
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