Telecom separates network and services: what changes for customers

Telecom Italia is working for the separation of its products: on the one hand the network infrastructure, on the other the services. The project approved by Board of Directors will see the birth of a company called ServiceCo and another called NetCo. But what changes for us end users?

Telecom Italia towards the separation of network and services: what changes?

The Board of Directors led by Pietro Labriola approved the separation of the Telecom Italia company, in what in the jargon is called “carve out”: cutting and extraction. On the one hand there will be ServiceCo, the company for services. We are therefore talking about fixed and mobile telephony, the cybersecurity service Telsythe ICT services of Olivetti and the Italian cloud of Noovle.

On the other side NetCowhich groups together the services of “Wholesale network”. Both the primary one (therefore from the control unit to the cabinet) and the secondary one (from there to your home). But also Sparkle’s submarine cables to connect us to the internet in its entirety.

The differences for end users will initially be small. Many customers already use mobile rei and services controlled by other operators, such as those of Inwit e OpenFiber. Indeed, according to analysts, this operation could increase market competition, perhaps by lowering the prices of offers.

In the future, however, a possible merger between Open Fiber and the TIM network could increase the prices for the rental of the network by other operators, which consequently they will have to raise the price to us end users as well. This could lead to increased bills for fiber in the home and mobile connection, according to analysts heard by La Repubblica.

It remains to be seen how this process will continue: the telecommunications sector is changing much faster than in the past, and there are uncertainties. We will keep you informed.