What changes now with TIM’s sale of NetCo to KKR?
What Changes Now with the Sale of NetCo Network to KKR?
On July 1, 2024, TIM officially announced the sale of its NetCo network, including FiberCop, to the US investment fund KKR (Kohlberg Kravis Roberts & Co.
L.P.).
This historic agreement, overseen by CEO Pietro Labriola, involves the transfer of NetCo, the Telecom Italia group company responsible for the management of the fixed network, to KKR through Optics BidCo.
The operation, valued at up to 22 billion euros, includes an earn-out linked to certain conditions and represents a significant step forward for TIM in reducing its financial debt.
Changes for Customers
With the sale of NetCo network to KKR, TIM customers may witness several changes in the services offered and the structure of commercial offerings.
One of the main advantages for customers will likely be a reduction in the costs of fiber optics.
Additionally, customers could benefit from an enhancement in service quality, as KKR’s experience and financial resources could lead to investments in network infrastructure upgrades and expansions, improving connectivity and service reliability.
Changes for Employees
The sale of NetCo network to KKR also entails a significant change for TIM employees.
Approximately 20,000 employees, mainly working in Wholesale & Network, will see their employer change, with significant implications for the entire corporate ecosystem and the Italian telecommunications market.
For employees remaining at TIM, there will be a shift in the company’s structure and responsibilities, focusing more on customer services and advanced solutions for businesses, operating as a service company rather than an integrated operator.
Changes for the Company
The sale of NetCo network to KKR represents a strategic turning point for TIM, profoundly influencing its operational and competitive future.
Without direct control of the network, TIM will transform into a service-focused operator for both consumers and businesses, potentially becoming more agile and responsive to market dynamics and customer needs.