By Erin Harrison
Senior Editor
Three of Italy’s biggest telecom groups are expected to announce a $3.1 billion plan to build a super fast broadband network in 15 cities, according to a report in the Financial Times on Wednesday.
The companies – Vodafone (News – Alert), mobile operator Wind and broadband provider Fastweb – have agreed to co-invest in an optical fiber network to reach millions of homes, a plan that could pressure Telecom Italia (News – Alert), Market Watch reported.
The group is looking for other network investors and have not ruled out including Telecom Italia — the plan could hurt Telecom Italia’s revenue if it decides not to participate, said the FT. Speaking to the FT on Wednesday evening, Telecom Italia’s chief executive Franco Bernabe, said he welcomed the competition and is ready to “respond aggressively.”
As TMCnet reported, the merger of Telefonica and Telecom Italia which is already a formidable force in telecom sector of Spain as well as Spanish-speaking countries in Latin America, will strengthen its position in the European continent. If European telecom giant Telefonica successfully acquired the cash-strapped rival Telecom Italia, the merger will lead to the creation of “New Spanish Empire” covering a vast consumer base spread across many countries and continents around the globe, says market research firm Strategy Analytics (News – Alert).
In February, Telecom Italia announced that it created a new, integrated, voice, video and data network based on Voice over IP technology – or VoIP – for Asea Brown BOveri “ABB” Italia, a company specializing in power and automation technologies, with the technological support from Italtel, a provider of next generation networks and services.
Erin Harrison is a senior editor with TMCnet, primarily covering telecom expense management, politics and technology and Web 2.0. She serves as senior editor for TMC’s (News – Alert) print publications, including “Internet Telephony”, “Customer Interaction Solutions”, “Unified Communications” and “NGN” magazines. Erin also oversees production of TMCnet’s weekly iPhone (News – Alert) e-Newsletter. To read more of Erin’s articles, please visit her columnist page.
Edited by Erin Harrison
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