TIM Challenges KKR-Backed FiberCop Over Costly New Grid Tariffs in Italy
Legal Dispute Over New Grid Tariffs and Financial Implications
By Elvira Pollina
Background of the Dispute
MILAN, June 24 (Reuters) - Telecom Italia (TIM) has filed a case with a Milan court against new grid tariffs set by KKR-backed FiberCop, to whom TIM sold its telecoms network in 2024, two sources said.
TIM decline to comment. FiberCop was not immediately available to comment.
Terms of Access and Debt Restructuring
The dispute centres around the terms governing TIM's access to the fixed-line network assets it sold to a KKR-led consortium as part of a broader restructuring aimed at slashing TIM's debt by 14 billion euros.
Legal Proceedings
The court complaint was filed under a fast-track procedure, with a first hearing on the case scheduled in early July, two people with knowledge of the matter told Reuters on condition of anonymity because the matter is not public.
Financial Impact of the New Tariff Scheme
Additional Costs for TIM
A third person said that the new tariff scheme entails dozens of million of euros each year in additional costs for TIM, which now pays to use the grid it once owned.
Ownership Structure of FiberCop
FiberCop, which operates Italy's main telecommunications landline network, is 37.5% owned by U.S. investment firm KKR, with the Italian Treasury holding a 16% stake.
(Reporting by Elvira Pollina, editing by Gavin Jones and Valentina Za)
