Connect with us

International Circuit

Italy working with CDP, International funds on TIM’s network

Italy’s government is working with state lender Cassa Depositi e Prestiti (CDP) and international funds on options for Telecom Italia’s network grid and still aims to sketch out a plan by the end of the year, its industry minister said on Monday.

Shares in Telecom Italia (TIM) jumped by over 5% as minister Adolfo Urso’s words fueled optimism that the government would soon clarify its intentions and could secure control of the network grid early in 2023, a Milan-based trader said. The shares eventually closed up by 4.3%.

“We should sketch out the indications on the solutions by the end of this year,” Industry Minister Adolfo Urso told a news conference, referring to TIM’s network as well as other issues of national relevance such as the future of ITA Airways and Taranto’s ex-Ilva steelworks.

Urso said the government was talking to “public and private” players, including CDP, TIM’s other existing shareholders, and “international funds” who are interested in the Italian network. French media group Vivendi is TIM’s top shareholder, while CDP is its second largest.

Prime Minister Giorgia Meloni’s administration is trying to secure control of TIM’s landline grid, an asset deemed of strategic importance, to create a wholesale-only player that would boost broadband roll-out and speed for Italians.

Last week the Italian government started talks with Vivendi and CDP to identify “the best market-friendly options” for the phone group. A new meeting is scheduled for Tuesday in Rome.

Speaking at the Foreign Press Association in Rome, Urso also said that the government was working to safeguard TIM’s submarine cable unit Sparkle, effectively confirming what Reuters had previously reported.

Sparkle, an international wholesale telecoms operator, entirely owned by TIM, manages fibre cables that stretch over 500,000 kilometres.

Its submarine network transmits information, some of it sensitive in nature, between countries in Europe, the Mediterranean and the Americas.

Industry sources have indicated a valuation of almost 1 billion euros ($1.06 billion) for the unit.

Debt-laden TIM is looking to sell assets to reduce its debt pile, which stood at 25.5 billion euros at the end of September. Reuters

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2022 Communications Today

error: Content is protected !!