Telecom Italia reveals drop in investment in H1

Telecom Italia CEO Flavio Cattaneo
Telecom Italia announced that its Capex (capital expenditure) reached 1,983 million euros (–163 million euros) in the first half of 2016.

As part of its long-term strategy, Telecom Italia has taken up an investment efficiency plan in Q2 2016 to increase its efficiency with respect to high UBB coverage levels and service quality.

Telecom Italia has made an investment of 1,575 million euros (+69 million euros) in Italy, its domestic business, in the first half of 2016. The company has accelerated growth of innovative investments for developing new generation networks and services (+184 million euros), which accounted for 49 percent of total investments against 39 percent in H2 2015.

Telecom Italia has invested 408 million euros (–229 million euros) in Brazil focused mainly on the evolution of the business infrastructure and the sales support platforms.
Telecom Italia investment

Telecom Italia revenue

Telecom Italia said its revenue reached 9,096 million euros (–9.9 percent) in the first half of 2016.

Telecom Italia generated 7,247 million euros (–1.7 percent) revenue in Italy, 649 million euros (+2.2 percent) from international wholesale and 1,858 million euros (–31 percent) from Brazil.

Meanwhile, TIM and Fastweb announced 80-20 joint venture for creating broadband infrastructure – on FTTH technology platform — in 29 cities in Italy for connecting around 3 million homes with connection speeds of 1 Gigabit per second 2020. The total investment is 1.2 billion euros.

TIM will also buy from Fastweb over the next 18 months the infrastructure with FTTH technology that will allow around 650 thousand homes in 6 cities to connect to TIM’s network one year earlier than envisaged in the Business Plan.

Telecom Italia CEO Flavio Cattaneo said: “Fastweb sells 650,000 FTTH connections in six prime cities for a gross cost of about €200 per unit or a net one of €150 each. There is also €1.2 billion co-investment agreement for this development of FTTH infrastructure in 29 cities in the next five years through a dedicated joint venture.”

Baburajan K