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Telecom Italia Hives Off Access Network

Telecom Italia (TIM) today overhauled the management structure of its network infrastructure and announced that it will separate its fixed-line access network into a separately run business unit called Open Access. (See Italians to Separate and Italians Head for the Splits.)

Open Access will operate independently from the rest of Telecom Italia's business. The idea behind this kind of network separation is to make access networks more competitive in the country.

Today's announcement follows BT Group plc (NYSE: BT; London: BTA)'s lead. BT and the Ofcom started the access network separation trend when the British incumbent formed Openreach in September 2005 as part of an agreement with the regulator. Swedish regulator National Post and Telecom Agency (PTS) was reviewing last year the possibility of a similar network separation for Telia Company . (See BT Opens Up Access and Telcos Consider the Splits.)

The Italian incumbent has also created a new business division called Technology and Operations, led by Stefano Pileri. The division consists of four departments:

  • The new Open Access unit, responsible for maintaining the access network and delivering access services
  • The Network department, which will oversea innovation in the telecom network
  • Information Technology, responsible for IT systems
  • Technical Infrastructures, in charge of the maintaining the group's facilities management, such as real estate
Italian regulator Agcom likes what it hears from Telecom Italia so far. — Michelle Donegan, European Editor, Light Reading

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