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Incumbent disputes claim it may have abused its dominant position.
Telecom Italia, also known as TIM, insisted late on Tuesday it has done nothing wrong, after Italy’s antitrust watchdog launched an inquiry into possible anticompetitive behaviour related to its rural fibre rollout.
L’Autorità Garante della Concorrenza e del Mercato (AGCM) is investigating whether the incumbent obstructed government broadband tenders for fibre network deployments in unprofitable, so-called ‘white’ areas of the country. It is also investigating whether TIM attempted to preemptively lock customers into long-term, low-cost contracts to discourage competition.
"TIM…is certain to have acted in compliance with the rules and will demonstrate it in the appropriate venues," TIM said, in a statement emailed to Total Telecom.
The Italian government launched three tenders to subsidise ultrafast network deployment in white areas, which were identified via a consultation in which TIM participated.
TIM signed up to the first tender, but later withdrew, opting instead to roll out its own networks. This change of course riled the government because it calls into question the classification of white areas.
With Tuesday’s antitrust proceeding, the dispute has become more acrimonious.
The AGCM claims that TIM has held up the tender process by proposing numerous appeals.
"By slowing down the selection procedures for entities entrusted with the creation of ultra-wide bandwidth in white areas, TIM could hinder the development of forms of infrastructure competition and the entry of new competitors," the watchdog said.
The AGCM also claims that TIM has sought to preemptively lock customers into long-term contracts for its rural fibre networks at price points that alternative operators might struggle to match.
This would have the affect of "limiting competition in the market for ultra-wide retail telecommunications services at a time when vigorous competition would be particularly desirable," the AGCM said.
Unsurprisingly, TIM does not see it that way at all.
"TIM is confident that, already when the case is under investigation, the rightness of the company’s operations will emerge," the telco said.
