TI breaks off News Corp talks

20 Sep 2006

Telecom Italia (TI) has reportedly suspended talks with News Corp over a deal to use media content. The telco began negotiations with News Corp earlier this month with a view to carrying its content over its broadband networks. Dow Jones says the two firms have already reached an agreement which will see TI using content from News Corp’s 20th Century Fox film archive and this will remain in place, but further discussions have now been postponed indefinitely. The Italian telco is currently embroiled in a row over the future of its cellular subsidiary TIM.

Meanwhile, Italy’s prime minister says he will make a statement to parliament about the affair on 28 September. The government has been accused of meddling in Telecom Italia’s affairs in an attempt to ensure that its national infrastructure is not acquired by a foreign investor.