TELECOM ITALIA S.P.A.: NGN NETWORK: NEW COMPANY TO DELIVER FIBRE TO 60% OF TRENTINO HOUSEHOLDS
May 18 2012 - 9:40AM
Italian Regulatory (Text)
PRESS RELEASE
NGN NETWORK: NEW COMPANY TO DELIVER FIBRE TO 60% OF TRENTINO
HOUSEHOLDS Trentino NGN shareholders include the Autonomous
Province, Telecom Italia, McLink and La Finanziaria Trentina.
150,000 properties to be connected. 165 million investment foreseen
over ten years
Trento, 18 May 2012 Trentino NGN, the company that will deliver
fibre optic to the province of Trento, is fully operational. The
Shareholders' Meeting of the company today approved the entry,
alongside the Autonomous Province of Trento, of Telecom Italia, MC
Link and La Finanziaria Trentina. The aim is to connect over
150,000 homes, around 60% of the province's entire housing stock.
Local authorities, hospitals, universities, research bodies and
firms will also receive high speed links. Trentino NGN's investment
in the project is estimated at 165 million over the next 10 years.
During this first phase of activity, Trentino NGN will be
controlled by the Autonomous Province of Trento with a majority
52.2% stake, following a cash injection of 50 million. Telecom
Italia, meanwhile, will hold a 41.1% share of the capital via the
conferment of the rights to use available capacity on its existing
passive infrastructure throughout the region for 20 years, valued
at 39.4 million. MC Link and La Finanziaria Trentina have
contributed 1.5 million (for a 1.6% stake) and 5 million (a 5.2%
stake) respectively. Subsequently, once certain service penetration
levels have been reached, in three years' time, Telecom Italia will
hand over its copper network, thereby acquiring majority control of
the company. This will facilitate the migration of the copper to
fibre. Telecom Italia has also negotiated an option to acquire the
Province's stake in the company, to be exercised after six years.
The shareholders appointed Sergio Bettotti Chairman of the company
and Elio Salvadori CEO. The other board members will be Paolo
Simonetti, Fulvio Rigotti, Anna Dalpiaz, Pompeo Viganò, Alessandro
Talotta, Nicola Barone and Carlo Filangeri. Today's agreement,
which opens the operational phase of fibre in Trentino, follows
talks between the parties on 16 December and a memorandum of
understanding signed by the Autonomous Province of Trento and
Telecom Italia on February 8 after lengthy consultations with all
TLC operators in a spirit of transparency and non-discrimination.
Meanwhile, following a specific open tender, the two are already
working on a joint project to bridge the digital divide and deliver
ADSL at speeds of up to 20 megabits/second to the whole province by
spring 2013.
Autonomous Province of Trento Press Office
+39 0461 492662 http://www.provincia.tn.it
Telecom Italia Press Office
+39 06 3688 2610 http://www.telecomitalia.com/media
Telecom Italia Investor Relations
+39 02 8595 4131
http://www.telecomitalia.com/investorrelations
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