UPDATE 1-Italy regulator eyes fibre optic grid operator
* Operator should be modelled on utilities' grids - Agcom
* Tariffs could cover investment needs
* CEO: Plan depends on regulations, business backing
(Adds comments from Telecom Italia head)
ROME, July 7 (Reuters) - Italy's move to a fibre-optic telecoms network should be overseen by a private-public company, the head of the telecoms authority said on Tuesday.
Corrado Calabro, chairman of the authority, said the proposed company should be modelled on the way existing utilities operate networks and the authority could set tariffs adequate for investment needs.
Former monopoly Telecom Italia (TLIT.MI) is investing in the move to fibre optic from copper wire based on demand and clients' willingness to pay for it. [ID:nL81003404]
"The practical route seems to be a company formed around a strong nucleus of industrial partners with a mix of business expertise to develop the fibre optic project," Calabro told the lower house of Italy's parliament.
"We will evaluate with the operators (rules) which while guaranteeing competition would most encourage and adequately compensate investments in fibre optic," he added.
Telecom Italia Chief Executive Franco Bernabe said on Tuesday any such plan would have to depend on business support and the regulatory framework.
"At the moment, it's just an idea. The company can only walk on the legs of businessmen," Bernabe told reporters in parliament.
Some lawmakers have proposed splitting off Telecom Italia's fixed-line network to spur Italy's broadband ambitions, an option that Telecom Italia is resisting.
A report by a government adviser has suggested one option could be creating an integrated fibre-optic and copper national network for broadband coverage of 50 percent of households. [ID:nLJ962181]
The report said this would involve investment of 10 billion euros over five years. Creating a fibre-optic network to cover 25 percent of households could involve 5.4 billion euros of investment over four years.
(Reporting by Alberto Sisto; writing by Jo Winterbottom; editing by Simon Jessop)
