TI board agrees to spin off fixed assets; plots EUR10bn fibre investment

31 May 2013

Telecom Italia (TI) says that its board has backed a proposal to spin off its fixed network assets, valued at EUR13 billion (USD16.9 billion) to EUR15 billion, into a separate company with a view to selling a stake in the new entity to state-backed fund Cassa Depositi e Prestiti (CDP). The decision was made yesterday, despite objections from Spain’s Telefonica, the largest investor (46%) in Telco, the shell company that controls 22.39% of TI.

Meanwhile, in related news, Bloomberg Business Week reports that TI is planning to invest EUR10 billion in its continued deployment of fibre-optic infrastructure over the course of the next ten years. The spending will help the firm’s new network unit Opac to offer faster broadband access, and will be funded by cash generated by the network unit – as well as through contributions from investors.

Italy, Telecom Italia (TIM)