Italy considers 5G telecoms licence extensions with lower costs tied to investment pledges

MILAN: Italy is considering extending 5G licences while limiting costs for operators in return for investment pledges, a cabinet undersecretary said on Tuesday, as the telecom sector contends with falling revenue and lower margins.

Telecoms operators are lobbying for a free extension of their 10-year licences after Italy raised 6.5 billion euros ($7.5 billion) from a 5G mobile auction in 2018 that drew ferocious bidding.

“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,” Alessio Butti said at a business conference in Rome.