Executive Summary BMI View: The outlook for Italy’s telecommunications sector remains challenging, with few obvious areas for investment upside, even in the medium- to long term. The incumbent is weighed down with debt, compromising its ability to execute and innovate. Several solutions are being examined at present, including divestiture of non-core media and international capacity businesses, as well as a more audacious plan to spin-off the core fixed-line business. Meanwhile, a merger of the Telecom Italia Mobile and 3 Italia business is contemplated. Although regulatory approval may not stretch that far, Hutchison Whampoa could still become the lead investor in …
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