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Almost half of TIM staff would go to new NetCo unit

5 Jul 2022

Telecom Italia Group (TIM Group) will transfer almost half of its 42,500 workforce to a new network company under a restructuring plan. The telco intends to split its retail and infrastructure operations into two separate companies, dubbed ServCo and NetCo respectively. According to sources cited by Reuters, NetCo will take around 21,000 TIM employees. It will include TIM Group’s domestic fixed access network plus international submarine cable unit Sparkle, and will assume around EUR10 billion to EUR11 billion (USD10.4 billion-USD11.5 billion) of the group’s EUR23 billion debt. ServCo, meanwhile, would comprise the group’s domestic retail business plus the Brazilian telco subsidiary TIM Brasil.

TIM’s CEO Pietro Labriola is set to present his restructuring plan to stakeholders tomorrow (6 July). He aims to complete the ServCo and NetCo split before then pushing ahead with a merger of NetCo and state-backed wholesale provider Open Fiber to create a single nationwide fixed network company. While the executive is hoping to have a merger agreement in place by end-October, TIM’s largest shareholder, Vivendi of France, has complained that valuations of NetCo of around EUR20 billion fall well short, with Vivendi saying a price of EUR31 billion is more realistic.

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