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Italy’s CDP, TIM reach preliminary agreement on single broadband network plan


Italy’s CDP, TIM reach preliminary agreement on single broadband network plan

Italian state lender CDP and Telecom India (TIM) said they had signed a preliminary agreement to pave the road to a single broadband network as its former phone monopoly works to spread its landline grid.

The plan aims to combine TIM’s fixed network with CDP-controlled broadband rival Open Fiber as Pietro Labriola, CEO of TIM, looks to revive TIM’s fortunes via a complete split of its landline grid from service operations.

TIM’s second-largest investor, with a 10% stake in the firm, is CDP. The state entity also owns 60% of Open Fiber and will control the combined network. The statement from the firm also added that the parties aim to negotiate a binding agreement by the end of October.

The much-awaited preliminary agreement was signed by global infrastructure funds KKR and Macquarie, which hold minority stakes in TIM’s last-mile network unit and Open Fiber.

Both international funds will remain minority investors in the single network entity.

KKR joined the TIM-CDP project after TIM spurned a 10.8 billion euro ($12 billion) proposal by the American fund to gain control of TIM and delist it before splitting its services and fixed assets.

Italy is keen to establish a single broadband network champion to avoid duplicating investments and speed up a fibre optic roll-out and digitalization of the country’s economy.

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