UPDATE 2-Italy probes possible market abuse by T.Italia

(Adds Telecom Italia’s comment, paragraph 5)

ROME, Oct 26 (Reuters) - Italy's antitrust authority has opened an investigation into possible abuse of market dominance by former telecoms monopoly Telecom Italia TLIT.MI, the regulator said in a statement on Friday.

The antitrust authority said it had decided on the inquiry into voice services, as well as certain Internet and broadband services, after complaints by Fastweb FWB.MI, owned by Swisscom SCMN.VX, and Wind.

The regulator said Telecom Italia held information not available to competitors, which could mean it was able to personalise offers to woo back customers who had switched or were in the process of switching to Fastweb or Wind.

Such a practice may amount to an abuse of Telecom’s dominant position, it said.

Telecom Italia said in a statement the allegations made by its competitors were “groundless.”

The probe must be completed by the end of 2008, the regulator said.

((Editing by David Holmes; Rome newsroom +39 06 85224392, fax +39 06 8540568)) Keywords: TELECOMITALIA PROBE/

C Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nL26457374