Emerging Europe Telecommunications Europe (Region) Power And Politics Risks For TIM-Open Fiber Merger

摘要

1. Government-driven TIM-Open Fiber merger would benefit the Italian telecoms sector, improving fibre accessibility and avoid duplication of next-generation access infrastructure. 2. Unresolved issues of control among TIM’s shareholders and political interests pose downside risks. The Italian government is pushing for a merger of TIM and Open Fiber to create a single wholesale fibre network. In principle, we believe this deal would be positive overall for the country’s telecoms sector, where the uptake of next-generation access infrastructure and advanced services is lower than the EU average. Nevertheless, the consolidation of two of Italy’s largest networks is not without risk and would be burdened by several issues that could undermine the merged entity’s ability to grow and ultimately jeopardise its potential to revitalise the Italian broadband market.