Telecom Italia CEO Pietro Labriola (pictured) reportedly said the Italian operator intends to exploit its planned fixed network spin-off to cut its €23 billion net debt, among other factors.

According to Reuters, Labriola indicated that the purpose of the plan to split the operator’s fixed network infrastructure from its service operations is to reduce debt and “maximise the value of all assets in the interest of all shareholders”.

However, it still appears to be unclear whether or not Telecom Italia plans to fully exit its fixed-line business with an outright sale.

Telecom Italia last week signed a preliminary agreement with state lender CDP to combine its fixed assets with those of Open Fiber in order to create a single fibre provider for the nation. Reports suggested the operator was hoping to get a valuation of around €20 billion for its fixed-line network, and that CDP could take a 70 per cent to 77 per cent stake in the combined broadband network operator.

US investor KKR and Australia-headquartered Macquarie Asset Management are expected to hold smaller stakes.

Labriola told Reuters that the creation of a single fibre network could be completed in 12-18 months. The CEO intends to reveal more details on the plan to separate the Italian operator into two units at its capital market day on 7 July.

Italy’s Innovation Minister Vittorio Colao also told Reuters the success of the plan to create a national wholesale network will depend on the “goodwill of foreign investors”, including Vivendi, KKR and Macquarie.

Vivendi, which owns 24 per cent of Telecom Italia, reportedly warned last week that it would be ready to evaluate other opportunities if the value of the fixed assets is not recognised in the single fibre network plan.