TI ponders spinning off fixed line network

5 Apr 2012

Telecom Italia (TI) is considering spinning off its fixed line network in a move that could help it to relieve its mounting debt pile and boost fibre-optic investments. In an interview with business daily Il Sole 24 Ore, CEO Franco Bernabe admitted: ‘It is one of several studies we have conducted to identify the best solutions to increase Telecom’s value. If a [spin-off] creates a more favourable regulatory environment, it is a hypothesis that we could take into consideration’. In a separate article the newspaper valued the network infrastructure at around EUR15 billion (USD19.76 billion), although it is unlikely that the entire network would be divested, with TI only estimated as needing around EUR4 billion to cut debt and complete the rollout of its nationwide fibre-optic network.

Italy, Telecom Italia (TIM)