Tim is entering 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 is finally 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.
By selling Netco, Tim aims to focus on core telephony and internet services, as well as more advanced services like Clouds, Data Centers, and content distribution. The sale 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, the 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. The Italian infrastructure fund F2i and other international investors are also part of the project, reflecting the global interest in Italy’s telecommunications sector.
The government is closely monitoring the deal, given the strategic importance of the national telecommunications infrastructure. The Minister for Business and Made in Italy has emphasized the need for a national network under public control to ensure equitable access to advanced infrastructures across all regions. The involvement of the ‘Golden power’ indicates the government’s commitment to safeguarding national interests.
Kkr, founded in 1976 in New York, manages a significant investment portfolio globally. Despite initial opposition from Vivendi, Tim’s largest shareholder, the deal is progressing, reflecting the complexities of strategic decisions in the telecommunications sector. The outcome of this transition will have wide-ranging implications for Italy’s digital future.