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TIM-Open Fiber: agreement on the Openreach model?

Following up on aindiscretion circulated in recent weeks through the agency, Reuters returns today to talk about the possible handshake between TIM e Open Fiber (controlled by Enel and Cassa Depositi e Prestiti) for the creation of the so-called Single Network in Italy. The next few days will prove to be of crucial importance according to what was declared by a source that remained anonymous, but believed to be aware of the facts.

While the collapse of any possibility of a short-term solution was indicated by several parties, describing a bogged down situation destined to be resolved only in the space of many months, now instead a short-term scenario is reopening which would be of fundamental importance in many points of view.

TIM-Open Fiber: agreement on the Openreach model?

The goal is to speed up the digitalization process in the country by moving from a more widespread distribution of connections to ultra-wide bandby involving third-party operators and offering a better service and greater freedom of choice to end users. Before being able to reach the agreement, however, there are some issues to be addressed due primarily to the claims made by TIM that would like to keep control of the newborn reality. It is for this reason that Roberto Gualtieri, Minister of Economy, would have asked the parties to sign a letter by the end of the month Note d’intesa so that we can take a significant step forward.

It would be a historic step, let’s be clear: from the pressure on the incumbent to the possibility of expropriation on the Network, passing through the hypotheses of agreement in the years following the birth of OpenFiber as a new entity to create a competitive lever on which to start any negotiation on the future management of the the country’s network infrastructure.

To further complicate the situation, the openings of TIM and Open Fiber towards foreign realities: the first would have started a discussion with the US fund Kohlberg Kravis Roberts to sell about 40% of its business related to the management of the last mile, the second would instead be in negotiation with the Australian Macquarie to sell at least part of the package controlled by Enel for a multi-billion dollar investment. We need money, but there are great ambitions on the plate: reaching a point of balance is as complex as it is delicate every move in a situation so crucial for the fate of the project. Any foreign interference must also be examined very well for security reasons: with the presence of a “One Network” this aspect will also be of fundamental importance in the eyes of the institutions.

According to today’s indiscretion, the Openreach model in the United Kingdom, while keeping the network structure open and accessible to every market operator. Openreach is 100% managed by BT (formerly British Telecom) and controls the broadband network on British territory, allowing third parties such as Sky and TalkTalk to use it for the provision of connectivity services to customers.


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