Italy’s telecoms foyer asks to reschedule 5G spectrum funds – letter

MILAN, Feb 16 (Reuters) – Italy’s telecoms foyer is asking the federal government to reschedule greater than 4 billion euros ($4.54 billion) in funds due later this yr from its fifth-generation cellular spectrum public sale, a letter seen by Reuters confirmed on Wednesday.

In 2018 Italy raised a bumper 6.5 billion euros in its 5G cellular public sale that drew ferocious bidding from telecoms operators vying for an edge in new digital companies.

Since then stiffer worth competitors has led to a gentle drop in income which has put the sector’s margins below strain, Massimo Sarmi, head of telecoms foyer Asstel, stated in a letter to Italy’s Trade Minister Giancarlo Giorgetti.

Sarmi added within the letter dated Feb. 16 that it could be laborious for cellular operators to make the funds in a single yr because it may dampen their capacity to finance different areas of enterprise.

Italy’s greatest telecoms firm Telecom Italia (TLIT.MI) and rival Vodafone (VOD.L), the highest spenders on the public sale, are on account of pay about 1.7 billion euros ($1.93 billion) respectively by end-September. Each declined to remark.

($1 = 0.8804 euros)

Reporting by Elvira Pollina; Enhancing by Jan Harvey

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