TIM could give up control of networks to ease way for merger

5 Nov 2021

Telecom Italia (TIM) could be prepared to relinquish control of its fixed networks in order to push through a merger with government-backed wholesale operator Open Fiber. A report from Bloomberg cites people familiar with the matter who say that TIM has revised its merger plan to appease competition authorities who are worried that a combination of the two network owners would create a near monopoly. TIM hopes that it can get round this by taking a minority interest in the merged assets. The creation of a single network operator would avoid duplication of investments and help speed up fibre rollouts.

Meanwhile, TIM’s largest shareholder, Vivendi of France, is thought to be keen to see a revamp at the Italian telco. Reuters writes that it is unhappy with CEO Luigi Gubitosi’s recent handling of the firm which has issued two profit warnings in three months. Vivendi has called a board meeting for 11 November.

Italy, Open Fiber, Telecom Italia (TIM), Telecom Italia Group (TIM Group), Vivendi