Telecom Italia has successfully completed the sale of its fixed infrastructure unit, NetCo, to a consortium led by investment company KKR. This move, initiated by CEO Pietro Labriola, is aimed at promoting sustainable and rapid growth for the company. The €22 billion deal, which has been in progress for two and a half years, faced criticism from some of Telecom Italia’s investors. However, the operator believes it will allow the company to reduce its debt by €13.8 billion.
In addition to the sale of NetCo, Telecom Italia has signed a master service agreement that outlines the commercial relationship between the operator and the sold spin-off. This agreement provides the company with an opportunity to adopt a new business model, allowing it to compete more effectively in the consumer and enterprise markets in Italy. The focus will be on the industrial and commercial aspects of its business, supported by a solid financial structure.
Labriola emphasized that this sale marked a new milestone and a fresh starting point for the company. The decision to separate fixed network infrastructure services from other services was made to ensure sustainable and rapid development of Telecom Italia. This strategic move aims to position the company for success in an ever-evolving telecommunications industry.
Telecom Italia has been undergoing significant changes in recent years as it seeks to adapt to changing market conditions and competition from other telecommunications companies. The sale of NetCo is just one step towards achieving this goal. With its solid financial structure and new business model in place, Telecom Italia is well-positioned for long-term success in Italy’s competitive telecommunications market.
The sale of NetCo is also expected to have a positive impact on other areas of Telecom Italia’s business. By focusing on industrial and commercial aspects of its business, the operator can improve its ability to provide innovative solutions and services to customers in both markets.
Overall, this strategic move by Telecom Italia represents an exciting opportunity for growth and innovation in Italy’s telecommunications industry. With its new ownership structure and focus on sustainability, speedy development and innovation in place, Telecom Italia is well positioned for success as it enters this new phase of its evolution as a leading player in Italy’s telecommunications market
