The Italian government is considering a plan to set up a single high-speed fixed broadband network that would initially be majority-owned by Telecom Italia (TIM) but would grant equal access to all operators, according to an unnamed source cited by Reuters. The government is keen to play a more active role in the creation of a national high-speed broadband network by merging TIM’s fibre assets with those of wholesale operator Open Fiber and is looking to address the key issue of governance of the single network by structuring it to guarantee “its independence from the incumbent”, said the source, adding that the inspiration for the proposal is the Openreach model used in UK.
TIM has repeatedly insisted it wants to retain control of any merged entity with Open Fiber but European regulations favour the adoption of a non-vertically integrated model. Earlier this month, Italy’s economy minister Roberto Gualtieri asked TIM to sign a memorandum of understanding on the issue with Open Fiber’s 50 percent owner Enel by the end of July, said the report.
The idea is for other operators to be invited to invest in the single grid, said the source, suggesting that TIM is ready to accept such a condition. TIM is currently in the process of setting up a newco called ‘FiberCop’ for its fibre and copper last-mile network and may sell 40 percent of it to US private equity fund KKR. A second source cited in the report said a binding offer from KKR could come as early as this week
