Telecom Italia (TIM) has notified Italian communications regulator Agcom that it has formally begun the procedure to spin off its fixed access network and create a separate legal entity (Netco) that’s 100 percent controlled by the operator. In a statement, TIM said Netco would have its own assets (access network infrastructure, from the exchange to customers’ homes, as well as buildings, electronic equipment and IT systems) and the personnel necessary to provide wholesale services independently. “The model will guarantee full equality of treatment thanks to a single access point; a “one-stop shop” for regulated and unregulated wholesale services for all operators, including TIM,” said the company.
The Netco project was finally approved by TIM’s board earlier this month, with the company keen to stress that it will comply with the country’s so-called “golden power” rules over companies regarded as being of strategic national importance. TIM said the project will follow the procedures laid down in the country’s Electronic Communications Code and the timing defined by Agcom.
TIM has been exploring the separation of its last-mile network for some time with a view to addressing concerns from the Italian government, competitors and regulators, Activist fund Elliott recently called for the company to go even further and list or partially sell off Netco as part of a bid for major change at the operator.
