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Italian regulator starts reviewing TIM’s network separation proposal

AGCOM will examine the proposal through a public consultation.

The first step towards a nationwide single network: In August 2020, TIM announced its intention to spin off its copper and fibre fixed access network. TIM is creating a separate company called FiberCop, which includes the Flash Fiber joint-venture between TIM and Fastweb, and is based on a co-investment model. This is likely to be the first step towards the creation of a single network in Italy, since FiberCop could be merged with Open Fiber during 2021.

Regulators are getting involved: The project will be subject to regulatory approval from either the European Commission or the Italian competition authority, the AGCM. The telecoms regulator AGCOM will have to evaluate the impact of the separation, and of the possible merger, on the wholesale fixed market. On 22 October 2020, AGCOM published its preliminary view on the proposed voluntary separation. Given TIM’s serious intention to proceed with the spin-off, AGCOM considers it worthy of an in-depth review.

A public consultation is on the cards: AGCOM will now open a public consultation, through which it will seek input from stakeholders. The regulator will evaluate the impact of the proposal, with regard to the existing regulatory remedies and to the guarantees of equivalence in the provision of network access services.