Telecom Italia secures loan; network spin-off still under scrutiny

16 Feb 2009

Telecom Italia has signed an agreement with the European Investment Bank (EIB) for a EUR600 million eight-year loan. The funds will cover the telco’s investments to deploy broadband internet infrastructure in rural areas. According to a report from Telecompaper, the loan comes as part of EIB’s commitments under the Lisbon Agenda under which the bank has agreed to provide finance to support the development of ICT services across the European Union.

Separately, Francesco Caio, the Italian government’s advisor on telecoms, is recommending that Telecom Italia spin off its fixed line networks into a new company. Local newspaper Il Sole 24 Ore says that Caio is to present a plan to the government at the end of this month which will also cover the reorganisation of the country’s broadband market. Telecom Italia CEO Franco Bernabe has stated that he is against the separation of the incumbent’s networks into a separate division.

Italy, Telecom Italia (TIM)