MILAN (Reuters) – Telecom Italia (MI:TLIT) has put its arrange to roll out ultrafast broadband in rural elements of Italy on ice, two sources said, suspending a task in the centre of any row with all the government that may be seen as a cause of the imminent departure of the group's boss.
Chief Executive Flavio Cattaneo, that is anticipated to step down soon, have been at loggerheads with Italy's government for weeks over the group's offers to roll out superfast Internet in so-called non-economically viable areas – an undertaking dubbed Cassiopea.
It will be the deteriorating relationship with Rome that other sources have said concluded in clashes between Cattaneo and Telecom Italia's (TIM) top shareholder Vivendi (PA:VIV) and ultimately prompted the manager's early exit.
"Cassiopea has become place on ice," on the list of sources said.
A second source said TIM had told Italy's antitrust watchdog that the connections so far running on those areas isn’t activated without other work had been planned for the present time.
TIM initially said it will not unveil broadband in spots where it couldn’t guarantee returning on its investment, forcing Rome to component of with state subsidized tenders.
But in March TIM said hello would invest its very own money in among those areas, arguing industry had changed. This shift angered Rome, which claimed it undermined the state tenders.
TIM's change of heart came following the phone group lost in the primary in the tenders to spread out Fiber, a broadband unit set up by power utility Enel (MI:ENEI) the fact that state drafted into help after claiming TIM was dragging its feet.