Tim’s Historic Transition: The Birth of Netco and Sale to Kkr Marks a New Chapter in Italian Telecommunications

Tim is entering a new era as the country’s main telephone company undergoes a historic transition. The separation of the network is finally completed, and the birth of Netco, the network company that Tim sells to the US fund Kkr, is set for July 1st. This marks the beginning of a new chapter for Tim.

The company currently owns and operates a primary access network in copper and fiber optics that serves cabinets and ultra-broadband connections for end customers. In addition, it has a secondary access network that reaches individual homes. With approximately 89% of homes covered by its fixed network, Tim’s infrastructure plays a crucial role in the Italian telecommunications industry.

By selling Netco, Tim aims to focus on core telephony and internet services, as well as more advanced services like Clouds, Data Centers, and content distribution. The sale will also help alleviate the debt burden that has been hindering development plans since the 90s. With 16 thousand employees in Italy joining the network company, Tim is making strategic moves to improve its financial position.

Kkr, an American fund acquiring Tim’s access network, values the assets at up to 22 billion euros. The deal includes earn-outs and potential future combinations with Open Fiber. The Italian infrastructure fund F2i and other international investors are also part of the project, reflecting the global interest in Italy’s telecommunications sector.

The government is closely monitoring the deal given