Telecom Italia denies rumours of network spin-off

16 October 2014 | Kavit Majithia

Telecom Italia has quashed rumours that the government is planning to spin off its fixed-line network and establish a majority stake in the new company.

The reports emerged from the Italian press, which claimed the government was studying plans to divest Telecom Italia’s fixed-line operation.

Telecom Italia has struggled in its domestic market in recent years, and it is not the first time there have been questions over the government’s commitment to maintaining its stake in the network.

Italian newspaper La Repubblica reported the government could exercise its power to veto ownership changes in companies, and was analysing the possibility of an operation like this in order to boost broadband investments in the country.

Telecom Italia’s chairman Guiseppe Recchi has refuted the claim, stating that evidence for the plans does not exist.

“I have already heard about this four or five times since I arrived in Telecom and there is no legal basis for the spin off,” Recchi stated.