Telecom Italia SpA going in for a split

Telecom Italia SpA going in for a split

Telecom Italia SpA has said in a statement that they would be going in for a split as they aim to separate their fixed and mobile units into two new companies.

The company also went on to report a 15.7 per cent drop in first-half net profits. In addition, they announced a media content deal with News Corp.’s unit 20th Century Fox.

Chairman Marco Tronchetti Provera spoke on the formation of these two companies: “Telecom Italia will name the board members of the two companies.” The two new companies will be 100 per cent controlled by Telecom Italia.

They have however not given anytime specific timeline on this upcoming split. They are already the dominating player in the market of providing fixed and cellular telephone services in Italy. In addition, the company is also the dominating provider of ISP services in the country.