Telecom Italia (TIM) and broadband network company Open Fiber are reportedly in talks to reach a deal to share fast fibre infrastructure in the more remote parts of Italy, sources have revealed.
An agreement, which is still under discussion, would allow Open Fiber to use TIM infrastructure in the hard-to-reach areas in return for a fee, as well as give Open Fiber access to their clients.
It comes as the new TIM Chief Executive Pietro Labriola looks to develop a business plan for the heavily indebted group which has received a €10.8bn takeover offer from private equity group KKR.
KKR already owns 37.5 per cent of TIM’s “last-mile” grid after a 1.8 billion euro investment in 2020.
State lender Cassa Depositi e Prestiti, a key shareholder in both TIM and Open Fiber, has been looking to create conditions for a merger of the two groups’ network assets to boost fibre rollout and avoid a duplication of investments, according to Reuters.
This ambition predates the KKR approach for TIM.
Labriola’s new three-year standalone plan for Telecom Italia hinges on a separation of the group’s infrastructure assets from its services operations, according to reports from Reuters, opening up the possibility that the board could reject KKR’s non-binding offer.
The Italian telecoms giant is due to hold a board meeting on Monday to discuss Labriola’s plans.