Telecom Italia network spin-off 'bold and innovative' - regulator

ROME, July 9 Tue Jul 9, 2013 5:00am EDT

ROME, July 9 (Reuters) - The president of Italy's telecommunications regulator AGCOM said on Tuesday the plan of Telecom Italia to spin off its domestic fixed-line network was a "bold and innovative" move.

In an annual speech to parliament, Angelo Marcello Cardani said the spin-off "could represent a permanent solution to the incumbent/new entrant conflict that is typical of network industries."

"The broader and deeper the separation, the greater the regulatory concessions that can be offered," Cardani said.

The board of Italy's biggest phone company approved in May a plan to hive off fixed-line grid assets into a new company, a move that could help it raise cash and trigger a regulatory overhaul of the industry. (Reporting by Alberto Sisto, editing by Stephen Jewkes)