Telecom Italia (TIM) has presented a provisional plan to spin off its fixed network arm, in a move CEO Amos Genish described as a "game changer".
Genish made the proposals to Italian Economic Development Minister Carlo Calenda yesterday (7 February), as the Italy-based seeks to dispel government concerns that the move would not ensure equal access by all Italian providers.
Under the proposed plan, exact details of which were not disclosed, the fixed network would become an autonomously governed company, 100 percent owned and controlled by TIM.
Genish’s proposals are subject to approval by TIM’s Board of Directors, which will meet on 6 March.
If the board gives it the green light, the separation process is expected to take at least one year.
“It was a very positive meeting,” Genish told reporters.
“We have presented a hypothesis for the voluntary network separation that would lead to the creation of a separate legal entity 100 percent controlled by TIM, with a high level of corporate governance.
“This project is a giant step forward and a game changer, creating a model of equal treatment for all operators which is unique in Europe; it further strengthens equality of access to the network, having as priority the quality of the service and the investments to ensure the prosecution of the UBB coverage in Italy and the achievement of the goals set by the 2025 European Digital Agenda.”
Further, the move would not impact cooperation between TIM's fixed and mobile arms, a spokesperson said, with the latter planning to use the former’s fibre roll-out to support its roll-out of 5G small cells.
Last month declared its support for Genish, scotching exit rumours that appeared in the Italian press.