Tim is embarking on a new era as the country’s main telephone company undergoes a historic transition. After years of attempts and projects, the separation of the network has finally been completed. The birth of Netco, the network company that Tim sells to the US fund Kkr, is set for July 1st. This marks the beginning of a new chapter for Tim.
Tim owns and operates a primary access network in copper and fiber optics that serves cabinets and ultra-broadband connections for end customers. The company also has a secondary access network that reaches individual homes. With approximately 89% of homes covered by its fixed network, Tim’s infrastructure plays a crucial role in the Italian telecommunications industry.
The sale of Netco will allow Tim to focus on core telephony and internet services, as well as more advanced services like Clouds, Data Centers, and content distribution. The transaction will also help alleviate the debt burden that has been hindering development plans since the 90s. With 16 thousand employees in Italy joining the network company, Tim is making strategic moves to improve its financial position.
Kkr, an American fund acquiring Tim’s access network, values the assets at up to 22 billion euros. The deal includes earn-outs and potential future combinations with Open Fiber. Italian infrastructure fund F2i and other international investors are also part of this project, reflecting global interest in Italy’s telecommunications sector.
The government is closely monitoring this deal due to its strategic importance in ensuring equitable access to advanced infrastructure across all regions in Italy. The Minister for Business and Made in Italy emphasized this need for public control over national telecommunications infrastructure to safeguard national interests. Kkr was founded in New York in 1976 and manages significant investments globally but faces opposition from Vivendi, Tim’s largest shareholder initially opposed to this acquisition decision.
This transition will have far-reaching implications for Italy’s digital future as it allows companies like Tim to focus on their core competencies while leveraging their vast resources through partnerships with other companies such as Kkr or Open Fiber.
