The Dawn of a New Era for Tim: A Historic Transition in the Italian Telecommunications Industry

A new chapter begins for Tim as the country’s main telephone company undergoes a historic transition. After years of attempts and projects, the separation of the network is finally complete, with Netco set to take off on July 1st. Tim’s primary access network, which includes copper and fiber optics, serves cabinets and ultra-broadband connections for end customers. The company also operates a secondary access network that reaches individual homes across Italy. With the sale of Netco to US fund Kkr, Tim is able to focus on core telephony and internet services, as well as more advanced offerings like Clouds, Data Centers, and content distribution. This move will also help reduce the company’s significant debt, improving its financial leverage.

The sale of Netco will allow Tim to concentrate on its core business while leaving behind its non-core activities like network infrastructure management. The Italian government has closely monitored the sale of Netco as it considers it a strategic asset for national development. The government aims to ensure public control over telecommunications infrastructure and extend high-speed internet connections to all regions of the country, including underserved areas like small municipalities and mountain regions.

Kkr is a US fund founded in 1976 that manages over 400 billion dollars in assets across various sectors such as infrastructure, energy, and real estate. With this acquisition, Kkr will gain ownership of Tim’s access network and enter into Italy’s telecommunications market. However, this move has not been without controversy as Vivendi, Tim’s largest shareholder has opposed the sale of Netco arguing for a higher valuation of the network. Vivendi has taken legal action to prevent the completion of the sale but it remains uncertain if their actions will be successful or not.

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