TIM said it now forecast a low- to mid-single digit growth for its organic service revenues in the 2022-2023 period, versus a previous forecast for a low single digit growth
Losing 5G work from Telecom Italia, one of Huawei's biggest clients in Europe, would be a blow to the Chinese technology giant, which has already lost some business to rivals Nokia and Ericsson.
Telecom Italia has sent a letter informing Huawei of its intention to call off the contract, one of the sources said. Italian newspaper Il Sole 24 Ore first reported the letter.
Rome has been trying to create a national network by merging Open Fiber, a small broadband operator owned by state lender CDP and utility Enel, with Telecom Italia's landline grid assets.
Concerns about the project losing traction under new Prime Minister Mario Draghi's government have weighed on Telecom Italia's shares recently.
In March last year the regulator fined TIM 116 million euros for abusing its position in the broadband market in an attempt to obstruct the entrance of rivals.
In its 2020 annual financial report the former Italian phone monopolist said it would dispute the claims in court "with solid arguments".
The RAN infrastructure includes the base stations and antennas that connect smartphones to the mobile network, and accounts for the bulk of the cost of a new network.
Ericsson will provide the bulk of the equipment, while Huawei and Nokia will get a 20-25% each.
The yield on a bond maturing in May 2026, rose to 1.69pc from 1.60pc on Thursday, while a September 2025, bond yielded 1.60pc on Friday, up from 1.50pc the previous session.
The downgrade reflects our expectation that Telecom Italia will remain adversely affected by a very competitive operating environment in Italy.
we expect further investments in Brazil together with the restored dividend policy and the increasing complexity of the group structure to translate into higher business and financial risks.
Telecom Italia, partly owned by state lender CDP, has been in talks for months over a merger of its fibre assets with those of smaller rival Open Fiber.
To end the stalemate, Economy Minister Roberto Gualtieri asked TIM and Enel to sign a MOU by the end of July.
