Italy's telecommunication regulator Agcom Friday approved a proposal to increase unbundling tariffs, which Italy's largest telecoms group Telecom Italia SpA (TI) charges its rivals to access its fixed-line network.

In a statement, Agcom said that under its proposal, the unbundling tariff will be increased to EUR8.70 a month from May 1, 2010; to EUR9.26/month from Jan. 2011 and to EUR9.67/month from Jan. 2012.

The proposal has to be submitted to a public consultation with alternative operators, which includes Fastweb SpA (FWB.MI), Vodafone (VOD) and Tiscali SpA (TIS.MI).

Agcom said the tariff hikes are subject to the following conditions: an improvement of Telecom Italia's traditional fixed-line network through larger investments by the company; an update of the access network towards the creation of a broadband next-generation network able to offer high-speed services and to bridge the gap with other European countries.

-By Giada Zampano, Dow Jones Newswires; 39 06 69766920; giada.zampano@dowjones.com
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