Tim’s sale of its access network to Kkr paves the way for a new era in Italy’s telecommunications industry

The Italian telecommunications industry is about to undergo a significant transformation, with Tim selling its access network to the US fund Kkr. This historic transition marks the beginning of a new era for Tim, as it focuses 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.

Tim owns and operates a primary access network in copper and fiber optics that serves cabinets and ultra-broadband connections for end customers. The company also 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.

The deal with Kkr values the assets at up to 22 billion euros and 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. Despite initial opposition from Vivendi, Tim’s largest shareholder, the deal is progressing, reflecting the complexities of strategic decisions in the telecommunications sector.

The government is closely monitoring the deal given its strategic importance to national interests. The Minister for Business and Made in Italy has emphasized the need for a national network under public control to ensure equitable access to advanced infrastructures across all regions. The involvement of Kkr indicates that foreign investment is welcome but must be balanced with safeguarding national interests.

Kkr was founded in 1976 in New York and manages a significant investment portfolio globally. This acquisition shows their confidence in Italy’s digital future and reflects their commitment to investing in key sectors that drive economic growth. As this transition unfolds, we can expect wide-ranging implications for Italy’s digital landscape.

In conclusion, this historic transition marks a new chapter for Tim as it focuses on core telephony and internet services while selling its access network to Kkr for up to €22 billion euros. With this move, Tim aims to improve its financial position while reducing debt burden hindering development plans since the 90s