Telecom Italia COO Marco Patuano today met with the trade unions to present the company's 2012-2014 Industrial Plan that foresees cumulated capital expenditure beyond €15 billion and a steady reduction in indebtedness (€27.5 billion by the end of 2012, €25 billion by year-end 2013).
Economists are predicting a 1.3% contraction in Italy's GDP in 2012, and a sharp fall in consumer spending. Due to the worsening economic outlook, Telecom Italia's priority remains debt reduction through efforts to grow the market, careful cost controls and measures to raise efficiency.
Company growth will nevertheless be guaranteed by investments in Italy of €9 billion over the three-year period.
The technological challenges on the domestic front are the build-out of NGAN to cover 100 cities by 2014, and the implementation of the LTE mobile network to reach 40% of the population in the next three years, both to be carried out through coordinated action.
Telecom Italia will continue in 2013 and 2014 to pursue its policy of cost control with a continual focus on efficiency gains, engaging in active dialogue with the trade unions.
Together with the labour organisations it will work to ensure that the government provides the conditions for the completion of the social security plan outlined in the agreement signed with the Ministry of Economic Development and the Ministry of Labour on 4 August 2010.
Rome, 6 June 2012