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Telecom Italia looks at network split
07 December 2012
Telecom Italia approves proposal to consider plan to separate access network into a new company with state investment
Cassa Depositi e Prestiti
The board of directors of Telecom Italia has given the
management its approval to explore splitting off its access
network into a separate company with state investment.
Under the proposed scheme, Cassa Depositi e Prestiti, a
state-controlled savings bank, would invest in the access
network company, which is being called Newco. The company would
also offer access services to other companies in the Italian
market, including Vodafone and Swisscom’s Fastweb.
A board meeting in Milan, chaired by Telecom Italia executive
chairman Franco Bernabè, decided to allow the management
team to "to further investigate the conditions for the possible
participation of Cassa Depositi e Prestiti in the capital of a
company to be created to manage the access network.
The company gave no further details of the proposed structure
of the access company, which is expected to be able to function
in a similar way to Chorus, split off from Telecom New Zealand
in 2012, or Openreach, BT’s independently managed
local access operator.
The Italian government owns 70% of CDP and the rest is owned by
Meanwhile the same board meeting decided to shun Naguib
Sawiris, the Egyptian businessman who has been indicating his
wish to invest up to €3 billion in Telecom Italia.
"Following the evaluations carried out the board has decided
not to proceed further," said a Telecom Italia statement.
Sawiris owned rival Italian operator Wind until he sold that to
VimpelCom in 2011.
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Telecom Italia open to sell
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Telecom Italia 'considers
network spin-off' 05 Apr