In Italy, a historic transition is taking place for the country’s main telephone company, Tim. After years of attempts and projects, the separation of the network is finally completed with the birth of Netco set to take place on July 1st. Tim’s primary access network serves cabinets and ultra-broadband connections for end customers. The company also operates a secondary access network, reaching individual homes across Italy.
The sale of Netco to US fund Kkr marks a new chapter for Tim. With this move, the company will 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. However, not everyone is happy with this change – 16 thousand employees in Italy will join the network company as Kkr and other investors take ownership of Tim’s access network.
Kkr is a US fund founded in 1976 that manages over $400 billion in assets. The fund has made investments in various sectors, including infrastructure, energy, and real estate. The sale of Netco represents a significant milestone for Kkr as it expands its portfolio into telecommunications infrastructure.
Vivendi, Tim’s largest shareholder, has opposed the sale of Netco and argues for a higher valuation of the network. The French media giant has taken legal action to prevent the completion of the sale. While Vivendi has expressed concern about losing control over Tim’s network assets, it remains unclear whether its legal actions will be successful or not.
The Italian government is closely monitoring the sale of Tim’s network under Giorgia Meloni’s leadership 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. This move aligns with Italy’s broader goal to develop its digital economy and stay competitive globally.
Overall, the sale of Netco represents a significant milestone for both Tim and Kkr as they embark on their respective journeys towards growth and expansion in their respective fields.
