Italian operators have been lobbying for a free extension of the 10-year spectrum licences that cost them €6.5 billion in 2018, starving them of funds to invest in networks
Italy is considering extending 5G licences while limiting costs for operators in return for investment pledges, a cabinet undersecretary, Alessio Butti, was reported saying by Reuters.
In response to the telecom sector struggling with lower revenues and margins, operators are lobbying for a free extension of their 10-year licences after Italy raised €6.5 billion from auctioning 5G spectrum in 2018.
“The renewal cannot be automatic, but you know I’ve long been one of the strongest supporters of avoiding a cash-driven approach in favour of clear investment commitments,” Butti reportedly said at a business conference in Rome. He oversees innovation and digital transformation policies.
Italian telecoms operators will need to increase investment to upgrade 5G networks in the coming years to provide faster transmission speeds and to support a range of AI-driven applications for businesses and consumers.
Butti said that the government is working on several options which will be discussed with telecoms regulator AGCOM.
“The 2018 auction was disastrous, with operators caught in a bidding spiral. As a result, they were left without resources to invest,” Butti was quoted saying.
Revenue at Italian telecoms operators has dropped by nearly a third since 2010 and cash generation after investment has collapsed to zero from €10.5 billion in that year, according to data from industry lobby Asstel, cited by Reuters.
