Tim, all the slaps from Labriola to Amazon, Google, Apple and Microsoft
Wishes, criticisms and scenarios by Pietro Labriola. What Tim's number one said at the Mobile World Congress in Barcelona
Tim's number one, Pietro Labriola, returns to tug Over the tops such as Amazon, Google, Apple and Microsoft.
WHAT LABRIOLA SAID ABOUT TIM IN BARCELONA
Telcos are not indivisible subjects: the vertically integrated company model "is outdated because it no longer responds to the needs of markets such as the Italian one, where the path to value creation passes through the separation of infrastructure and services", through delayering: Pietro Labriola , CEO of Tim, opened up to this possibility in his key note speech at the Mobile World Congress in Barcelona.
According to the number one of the Italian group, "these are two worlds that can do better if managed separately, because this would allow greater concentration on their respective strengths and potential growth, also allowing for a better allocation of capital".
LABRIOLA: THE RULES NEED TO CHANGE
Labriola also insisted on the fact that, for the relaunch of the telecommunications sector, "a change in the regulatory context is needed". "It is necessary – Labiola articulated – to allow the consolidation of the sector and to encourage the leap towards new technologies to introduce mechanisms for a more equitable redistribution of the costs linked to the growth of traffic, through the so-called 'fair share'".
According to the CEO of the Italian TLC "the renewal of the political and regulatory framework for TLCs is a fundamental piece of the puzzle to be put together to arrive at a more balanced digital ecosystem".
LABRIOLA'S NUMBERS AND WISHES
"Network management is no longer a traditional business, a very high capex is needed", continued Labriola, explaining that the capex of telcos in Europe varies between 25 and 27% of revenues, a level deemed "unsustainable". Labriola recalled Tim's structure, with the business in Brazil – a market where there has been consolidation and which generates cash – then there is the domestic market with three different business models: consumer, enterprice and precisely the network.
HOW IS THE CONSUMER PART
The consumer part, continued Labriola, "no longer generates cash and in Italy there are 5 mobile operators", considered too many: "It is not possible to have 5 operators in Italy" and therefore "this is a consolidation market". Then there is the part of business services, "which is growing a lot and fast". In this framework, to survive "we must innovate and once again we need to separate between consumer and enterprise", continued Labriola.
SECTOR IN THE WIDTH OF THE “PERFECT STORM”
Labriola then went back to emphasizing the fact that the telecommunications sector in Europe is facing unsustainable market trends, with falling retail prices and growing data consumption, combined with the need to increase investments to support costs of network modernization.
A real "perfect storm", defined Tim's number 1 speaking at the Mobile World Congress. For this reason, the sector is also awaiting an urgent intervention by the legislator to ensure that the Big Tech giants contribute to the strengthening of the network infrastructure and has reiterated the need for market consolidation.
LABRIOLA (TIM) ON LINKEDIN HAD PUSHED GOOGLE AND NOT ONLY
It is not the first time that Labriola has touched on these issues, pressing the Otts. An implicit accusation from the world of telcos against online streaming companies and against Gafam , the acronym that encompasses the 5 major western IT multinationals (Google, Apple, Facebook, Amazon, Microsoft).
“The six largest digital players generate 55 per cent of traffic in Europe, but do not contribute anything to the infrastructure that carries it. This would be enough to remind us how today the network market is unbalanced, inefficient, unsustainable for telecommunications operators", wrote Pietro Labriola, CEO of Tim, on his LinkedIn profile in January . A figure that, since last May, when – as Il Foglio recently recalled – the study carried out by Axon Partners for Etno was released, has alarmed all European operators. We are talking about money, a lot of money, given that around 500 billion have been invested in Europe in the last 10 years alone.
“All of this is unsustainable for the economy, but also for the environment – added Labriola – If the transmission capacity were correctly remunerated, the digital players would not use it without any brakes, causing enormous energy waste. We find ourselves in the classic situation of "market failure", one in which, in order to achieve the economic and social well-being of citizens, regulatory intervention at an international level is necessary", according to Labriola.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/tim-tutte-le-sberle-di-labriola-a-amazon-google-apple-e-microsoft/ on Wed, 01 Mar 2023 06:49:53 +0000.