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Telecom Italia U-turn

Just as we discussed in our last post the limited value of FMC, so we see that Telecom Italia has U-turned on it’s convergence plans with the likely divestment of TIM in Europe and Brazil. Lots of uncertainty about why exactly (but probably nothing to do with the subtleties of user value we describe below!)

Here are some useful perspectives from analysts today:
Communications Breakdown Blog
Disruptive Analysis

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I'd add to the other analysis of the Telecom Italia decision that the break-up will force a much needed workforce reduction and "rebirth" by adding some new talent to the legacy business units.

No suprise then that the telecom workers union in Italy was quick to oppose the plan.

I just wish that the forced separation of wholesale and retail would migrate to the U.S. market -- where, frankly, it's needed ASAP to inject a new wave of competition into the collusive status quo of the big players.

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