Tim without his network anymore, what changes for customers?

Tim without his network, sells it to Kkr (an international operator based in New York), thus marking the end of an era.
For years, TIM maintained possession of the network used by Italian telecommunications operators, often without being able to capitalize on this advantage, but rather being penalized by regulatory constraints.
With the sale of the network, the company will gain greater freedom in the market, which will inevitably also translate into services for consumers.
Also thanks to the reduction in debt, Tim will be able to change its fixed and mobile network proposals, probably also recovering points compared to the competition with other operators.
Here's what's changing for customers and what the prospects are for the moment.
What changes for customers and why The sale of Tim's network should bring various benefits to customers, because the company will be able to use greater resources and propose new offers with fewer regulatory constraints.
The issue was illustrated by Cristoforo Morandini, a telecommunications consultant, who expects "greater freedom in prices and in the innovative composition of offers".
Naturally, the benefits for end customers will go hand in hand with the greater competitiveness of the company, which will no longer have to submit to special constraints.
Francesco Sacco, economist at Insubria University and supporter of grid separation, also expects numerous advantages from the sale of the grid.
Tim will in fact be freer in the composition of offers, especially in the combination of mobile and fixed services.
This has not been possible until today due to the constraint on the replicability of the offer which required Tim, holder of a large market power (former monopolist) and owner of the national network used by competitors, to show the possibility of other operators to propose offers similar to their own.
Tim has been so severely limited in its landline telephony offers, so much so that to date the company's fiber prices are a few euros higher than those of its cheaper competitors.
Not only that, about twenty years ago Agcom (Communications Authority) blocked the launch of 20 Megabit ADSL by Tim.
It was the fastest internet service in Italy, which was blocked due to its non-replicability by competitors.
Over the years these constraints have been eased in some areas of Italy thanks to the presence of more fixed networks, but without bringing substantial benefits to Tim's possibilities and consequently to prices for customers.
This is due to the difficulty of selling geographically differentiated commercial services, which has led Tim to have decidedly limited freedom.
read also TIM, Vivendi against the agreement with KKR.
What to expect on the stock market? How Tim's prices will change The effect of the sale will undoubtedly be positive for the telecommunications company, but it is decidedly premature to think about precisely quantifying the change in Tim's prices.
According to Morandini, however, we can expect an alignment of the prices applied by competitors.
It cannot be ruled out that network separation will renew the competition and competitiveness of telecommunications companies, but it is difficult to assume a significant impact.
This is because, as explained by the consultant, "Italian rates are among the cheapest in Europe and have remained unchanged despite the increase in inflation rates".
However, we must also consider an important obstacle to the price war, namely the consolidation of multiple business units, which has long been requested by European operators and which will certainly be favored by the sale of the network.
From this perspective, it is also possible that the liberation of the internet will not have significant effects for consumers, as Marco Pierani (of Altroconsumo) also fears.
Apart from the pricing issue, it is reasonable to expect that the release from constraints will allow Tim to propose new and more complete offers, with a set of mobile, fixed and television services, as several competitors already do.
read also Best mobile internet operator in Italy: 2023 ranking

Author: Hermes A.I.

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