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Telecom Italia: is gov’t “unbundling” the network a right choice?

Sometimes they strike back. Italian Prime Minister on. Romano Prodi and the Ministry of communication, on. Paolo Gentiloni are talking again about the idea of “unbundle” the telephone network propriety from the service provided through the lines. It seems that the chosen model would be the UK way: a public company “owns” the wires, while the operators (including Telecom Italia) will compete on the market services.

It might have been the former mr. Prodi’s governement mistake to sell Telecom Italia the telephone network, but nevertheless it doesn’t seem that fair – now – to take the network back, thus reducing ex lege the value of a company. This “pendulum-based” approach (swinging back and forth from private to public ownership) it is not a good signal for both the market and the foreign investor who will continue staring at Italy as an unreliable country to do business with (or in.)

Truth is that Italy is paying the almost total lack – in the last 15 years – of a telecommunications political strategy. Television market has been, is and will be politicians main concern, while lasting everything else back.

Pretending that a problem doesn’t exist is not an option, because – it is just matter of time – the bill always come at the end of the dinner.

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