Tim and state network, the government is preparing an incentive plan

The government, erring on optimism, had already promised a solution by the end of the year on the publicly controlled national network for ultra-broadband. However, it is not yet the time for announcements: it will take more time to find a complex squaring of the circle. At the end of the fourth meeting, via videoconference, of the technical table between the executive and the two main shareholders of Tim, namely Vivendi (23.75%) and Cdp (9.8%), it was decided to “open a second phase” of discussion, as reported by sources familiar with the matter. On the one hand, it is a question of investigating “possible incentive measures for the sector”, or rather resources and tools that the government will be able to put in place, on the other, the shareholders will have to “formulate proposals” to “reach a final solution, in a shared framework and sustainable”. He will talk about it again in January, after the Epiphany. The table may also be open to Tim’s management but only on specific issues and if asked.

In the morning, Prime Minister Giorgia Meloni gives the impression of wanting to speed up the dossier by reiterating the “double objective” of the state to “reassume control of the network” for strategic issues and to “work as much as possible to maintain employment levels”. On “how” to get there, Meloni professes “prudence”. The declaration of intent is enough to warm up the stock on the Stock Exchange, where it closes up by 2.88% at 22.48 cents. But for now everything is stuck on hypotheses and divisions remain. Faced with the difficulties, the French (represented at the table by Rothschild’s advisors, with CEO Alessandro Daffina, partner Irving Bellotti and Carmen Zizza, as well as by Daniele Ruvinetti, a consultant with long managerial experience in telecommunications) and Cassa (for which deals with the director of investments Francesco Mele, with the assistance of Credit Suisse) appear confident as already Arnaud de Puyfontaine, CEO of Vivendi, who a few days ago had spoken of a constructive climate with the government, present at the table with the head of the cabinet of the Ministry of Enterprise, Federico Eichberg, the head of the digital transformation department of Palazzo Chigi, Angelo Borrelli, plus a Treasury executive. There is no shortage of points of contact: it is now undisputed that Tim’s destiny is to be divided between a NetCo dedicated to the network and a ServCo dedicated to services. Both will need to be debt-sustainable. Not only that: the government is thinking about fiscal, financial and regulatory incentives that would increase the value of both entities. “Risk-benefit” assessments are underway for an expansion of the electromagnetic limits for 5G antennas; a reduction in VAT is being considered but coverage must be found; to support network investments, attention is being paid to development contracts, among the items on the agenda of the working group which, also in January, will open with the telecommunications.

To make the solution for the national grid complex, however, the unresolved issues remain, starting with the evaluation. At the table it seems that Cdp has not dropped the cards on the price it would be willing to pay (in a possible consortium with Kkr, the fund already the second shareholder of FiberCop, Tim’s secondary network) to take over the infrastructure of the former monopolist, such as provided for the memorandum dropped by the government. If the figures were those circulating in recent months, within 19 billion euros, they would hardly convince Vivendi, which has so far hinted that it is aiming for at least 31 billion. Precisely to overcome the impasse, however, the French are ready to favor the spin-off of the network with a proportional split of the title: in doing so, the market would make the evaluation. Everyone would find themselves shareholders of both companies in the first instance, only to then divide the loaves and fishes with share swaps and cash adjustments: Cdp the relevant influence on the network, Vivendi a greater grip on services. We’ll talk about it again in January.