New statements from TIM on Iliad. The former monopolist Telecom Italia is still speaking through CEO Gubitosi, trying to calm the minds of shareholders and analysts. Ilias, you will see that, say in TIM, no price war against fiber will start either.
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No to a new price war
After a revolution in the mobile telephony market with disruptive rates, Iliad is preparing to also land on the fixed line with a fiber-optic offering. But according to TIM, Ilias will not make the mistake of a new tariff battle this time and adapt to market prices, without disturbing them too much and thereby giving up his revolutionary vocation.
Overall, the manager TIM reassures the markets by explaining (and hoping) that the Ilias phenomenon of mobile will not repeat itself on the landline. In fact, TIM has been in the spotlight in recent weeks and one of the most critical points is the entry of Iliad into the fiber optic market and the complex issue of merging the network with Open Fiber.
In fact, TIM maintains a privileged position in the landline, where it has always been the dominant operator in terms of the number of active lines. Iliad’s arrival could scratch much of this hard core of customers, indispensable to the TIM accounts already strained by the crisis triggered by the Covid-19 pandemic.
TIM’s statements about Iliad
“Why should they be interested in a price war in the end? Rationality will prevail “
“I am convinced that Ilias will take a rational approach”
These are the statements of the CEO of TIM reported by YahooFinanza.
About two weeks ago, Gubitosi had already talked about Ilias, but on that occasion he discussed the merits of the mobile offers. The ex-monopolistic manager’s CEO returned to his hypothesis that Ilias would be forced to raise the prices of his tariffs as early as 2021 to recoup the massive investments. Even Ilias will soon be forced into the obnoxious practice of remodeling, according to TIM.
TIM apparently doesn’t understand how Iliad can do this at such low rates. And as a competitor, he hopes that some price adjustment can somehow be determined diplomatically on the solid, new possible battlefield. Not a cartel, of course, but not even a battle without restrictions.
At Tim, they know very well that when Iliad plays to topple the gaming table, he knows how to do it right. And today the cost of a second revolution would be, yes, really unsustainable for TIM.
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