TIM reportedly plans an even split between NetCo and ServCo

It looks like Italian operator group TIM expects its restructure to be close to a 50-50 split of staff and debt into the resulting new companies.It looks like Italian operator group TIM expects its restructure to be close to a 50-50 split of staff and debt into the resulting new companies. The latest bit of incremental news out of TIM comes, as it so often does, from anonymous sources whispering into the ears of Reuter reporters. They reckon around half of its current workforce of 42,500 Italian staff will be allocated to NetCo, which is the working name of the half of the company that will concern itself with domestic fixed line stuff and the Sparkle international carrier unit. It looks like a similar proportion of the company’s debt will also be assumed by NetCo. It stands to reason, therefore, that whoever doesn’t go to NetCo will instead be signed up for ServCo, which will concern itself with the mobile network as well other enterprise businesses. Having said that, it remains to be seen what the total headcount will be when the great schism finally takes place, because TIM also has plans to make at least a thousand of them redundant. The debt picture may also be very different at the moment of truth too, as the proposed merger with Open Fiber stands to raise a handy chunk of change. TIM could well use those funds to pay down debt and thus saddle its offspring with less debt at the start of their corporate lives. There are a lot of moving parts involved in the resolution of the TIM situation. It has been focus of many a predatory corporate player for some time, with the apparent calculation that the sum of its parts are greater than the whole. A big part of the reason for this split seems to be to make it easier to realise that latent value but there are likely to be many more twists to that tale before it’s resolved.   Get the latest news straight to your inbox. Register for the Telecoms.com newsletter here. Your email address will not be published. Required fields are marked * Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment. This site uses Akismet to reduce spam. Learn how your comment data is processed. Do you agree public funding should be used to support mobile operators to more broadly deploy Open RAN? NEC acquires Aspire to fuel Open RAN plan. Japan's NEC has strengthened its Open RAN systems integration (SI) crede hhttps://t.co/pBDsIRr9tT 04 July 2022 @ 11:56:56 UTC The #GlotelAwards are back live and in-person with a gala dinner full of exciting entertainment, celebrity guests a hhttps://t.co/kJwgPAy8pd 01 July 2022 @ 14:40:44 UTC BT retains majority of rights to UEFA football until 2027. UK telco group BT says it has secured the rights to the hhttps://t.co/LxtpbB43gq 01 July 2022 @ 13:38:00 UTC