Italian court rejects TIM's precautionary appeal in network tariff dispute


Telecom Italia (TIM) logo is seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration

MILAN, July 21 (Reuters) - A Milan ⁠court has rejected a request for precautionary measures filed by Telecom ⁠Italia (TIM) against KKR-backed FiberCop over new tariffs for access to Italy's ‌main fixed-line telecoms network, grid owner FiberCop said.

The dispute centres on the terms governing TIM's access to the fixed-line network it sold to a KKR-led consortium in 2024 under a restructuring ​aimed at cutting the former phone monopoly's debt.

TIM ⁠had asked the court, under ⁠a fast-track procedure, to order FiberCop to notify telecoms regulator AGCOM of the ⁠economic ‌conditions set out in a long-term service agreement governing TIM's access to the network assets.

In a ruling issued on Tuesday, the Milan ⁠court rejected TIM's request, saying the interpretation of the ​Master Service Agreement (MSA) put ‌forward by TIM was not supported by the contract, FiberCop said ⁠in a statement.

TIM ​declined to comment.

The court also said the prices set out in the MSA did not apply in areas subject to AGCOM's regulatory framework and ruled that FiberCop was ⁠not required to make the disclosure sought ​by TIM, the company said.

"FiberCop welcomes the decision of the Milan court, which fully rejected the precautionary appeal filed by TIM," the company said, adding the ruling ⁠confirmed the correctness of its conduct.

FiberCop revised its pricing framework after AGCOM in March classified it as a wholesale-only operator and granted it a lighter regulatory regime.

The decision removed previous cost-oriented price controls across most of Italy, replacing ​them with a "fair and reasonable" pricing assessment and giving ⁠FiberCop greater flexibility in setting tariffs.

Sources previously told Reuters that the new tariff ​scheme could result in dozens of millions of ‌euros of additional annual costs for TIM. ​The new pricing framework is due to take effect from September 16 after a transition period.

(Reporting by Valentina ZaEditing by Keith Weir)

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