Tiscali commits to FiberCop, signs co-investment contracts with TIM
In late August, TIM approved an agreement with KKR Infrastructure and Fastweb to create FiberCop, a new company to which TIM’s ‘last-mile’ access network will be transferred, as well as the fibre network developed by FlashFiber, a TIM–Fastweb joint venture.
The idea behind the project is to allow TIM, Fastweb and other operators to co-invest in fibre coverage across the country. As such, at the same time as announcing FiberCop’s creation, TIM also announced a MoU with one such operator, Tiscali, who agreed to take part in the FiberCop co-investment plan.
Today, this MoU is taking the next step, with executory contracts signed confirming Tiscali’s participation in the project and outlining the initial stages of the project.
For Tiscali, streamlining their existing network is reportedly their first concern, helping to build an environment where customers can easily be transferred to FiberCop’s new broadband network, thus allowing them to reduce their infrastructure and operational costs. This, they hope, will lead to an increase in EBITDA as early as Q4 this year, aiming for an increase of around €12 million per year by the time the FiberCop network is fully operational in 2022.
In the longer term, the agreement will allow Tiscali to activate a significant part of its accesses through FiberCop. In addition, Tiscali and TIM will also subsequently assess the possibility of Tiscali acquiring a stake in FiberCop.
Naturally, these new contracts still remain subject to regulatory approval, expected to be received by the end of the year.
FiberCop held its first board meeting earlier this month, confirming their intention to begin operations in the first quarter of 2021.
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