(Finance) – “The delayering it makes sense even without debt”. She said it Peter LabriolaCEO Tim , speaking at a conference in memory of Franco Morganti organized by the Italian International Institute Of Communications.
“It is anachronistic to still define ourselves today incumbent, if we think that we have market shares of around 20% in cities such as Turin, Bologna and Genoa”, he pointed out, underlining that “the vertically integrated operator model is obsolete because it does not adapt to the current challenges of the market. There road to value creation passes through the separation of infrastructure and services. It’s time to adopt a bold business model based on delayering, so far never experienced”.
“Using a metaphor, let’s imagine we are a manufacturing companyof wanting to manage the income statement taking into account the various businesses in which it operates: electric bicycles, luxury yachts and high-speed train engines. All activities flow into a single income statement and management becomes impossible. What happens with electric bicycles is a market that is increasingly becoming one commodities, exactly like the fixed and mobile telephony consumer market in Europe, unlike United States, South America and Asia where few operators operate. The large customer segment, on the other hand, is much more similar to the production of luxury yachts, and then we have the infrastructure that deals with business models much more similar to those of the construction of ultra-fast train engines. Any company that dealt with those three businesses, if it had them within the same income statement, would have difficulty in evaluating the cash generation and what theto a more correct capital allocation”.