Marco Patuano, CEO of Telecom Italia, met the Trade Unions today to illustrate the new 2014-2016 industrial plan, focused on accelerating and improving the quality of the investments for new generation fixed and mobile networks, developing converging innovative services and strengthening the financial position.
In detail, the new industrial plan envisages a programme of investments that in the 2014-2016 three year period will total approximately 9 billion euros in Italy, 3.4 billion of which in latest generation technologies to develop fixed and mobile ultrabroadband, and create new data centres for cloud computing.
"Thanks to this significant increase in innovative investments compared to the previous 2013-2015 plan - Patuano said - NGN will reach over 50% of the population in 2016; mobile LTE will cover 80% of the population, making a notable contribution towards the achievement of the objectives set out in the European Digital Agenda".
Patuano recalled that the plan includes support measures to strengthen the financial position of the Group which will contribute approximately 4 billion euros, in total. These actions include issuing bonds for mandatory conversion into Telecom Italia shares for a maximum of 1.3 billion euros, the sale of the holding in Telecom Argentina, the valuation of the towers in Italy and Brazil and of the TI Media multiplexes.
As for the access network, the unions were assured that the company wants to continue with the project for functional separation of the infrastructure, giving priority to the creation of the "Equivalence of Input" (EoI) model. "Equivalence of Input - Patuano explained - is coherent with the EU recommendations and represents excellence in terms of equality of treatment in the supply of services".
Internationally, the Telecom Italia CEO confirmed the strategic importance of Brazil, which continues to represent a core market for Telecom Italia. "Tim Brasil is a strategic asset of the Group, where we want to continue to grow and increase our investments. In Brazil, the traditional Voice-based component continues to be important, while at the same time we will be accelerating the Data segment, through the development of 3G and 4G infrastructure. Over the life of the plan the Capex will exceed 11 billion reais", Patuano said.
Particular attention has also been paid to employment issues, the industrial development of the business and the professional retraining deriving from the growing drive towards technological innovation. This will also happen thanks to a process to enhance the professional and generational mix, a more incisive policy to improve business productivity and the simplification of processes also to protect employment levels. This programme, which maintains the spirit of the agreement signed on 27 March last, will be implemented through continuous dialogue with the trade unions.
Rome, 19 November 2013