Telecom Italia Considers Spinning off its Network

Telecom Italia's chief executive said the idea of spinning off its fixed network  had become "interesting" and that talks with a state-backed financing body over joint broadband projects were under way. "There is a dialogue that continues," Marco Patuano said. 

"The possible separation of the access network into another company is an option that both Telecom and Cassa Depositi e Prestiti are looking at with interest," Patuano said. 

In April, Telecom Italia first suggested a separation of the network, an asset valued at an estimated 9-15 billion euros ($11.6-$19.4 billion).

Telecom Italia and Fastweb, controlled by Switzerland's Swisscom AG, also have signed a memorandum of understanding to develop a  fiber access network in Italy, the companies said.

The two companies will share costs and investments in infrastructure construction, but "will retain total freedom and autonomy in the development of their own network platforms, technology decisions and commerical offerings."

Fastweb has pledged to invest  EUR 400 million investment plan to bring fiber optic technology to 20 percent of Italian companies and homes by 2014.