Telecom Italia COO: Looking With Interest At Network Spin-Off

MILAN--Telecom Italia SpA's (TIT.MI) Chief Operating Officer Marco Patuano said Friday that Italy's incumbent telecommunications operator is looking with interest at the idea of spinning off its copper-wire network, according to MF-Dow Jones.

"It's a complicated negotiation," he said, stressing that the possibility of creating a new company controlling the network has been looked at with interest.

Telecom Italia is holding talks with state-owned lender Cassa depositi e prestiti, known as CDP, on the possibility of creating a new company which could control the copper-wire network.

Telecom Italia has previously expressed interest in keeping control of the network because it deemed it one of its most important assets. But it has been exploring alternatives to upgrade the network, the most extensive in the country.

Earlier Friday, the company announced a memorandum of understanding with another broadband operator in the country, Fastweb, controlled by Swisscom AG (SCMN.VX), to develop a fiber optic network in the country.

Patuano said Friday that the Fastweb/Telecom Italia memorandum of understanding is not closed to other players in the country.

Write to Manuela Mesco at [e-mail]

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