ROME: Telecom Italia (TIM) plans to put its network assets into a separate company fully controlled by the group, in a move that could ease strained relations with the Italian government.
Tensions between TIM and the Rome government have been rising in recent years, and took a turn for the worse when French media group Vivendi became its top shareholder.
Under so-called "golden powers", imposed by decree last year, Italy said it wanted a say in TIM's strategic decisions, such as mergers or asset sales in a company considered strategically important for the country.
"We presented a hypothesis of legal separation of the network, with a dedicated company, and we expect to discuss it at the next board," Genish said after meeting the Italian government and the industry regulator.
TIM's next board meeting is scheduled for March 6.
Genish added that "at this stage" the company would be fully controlled by TIM, and its governance would allow parity of access to sector operators.
Industry Minister Carlo Calenda welcomed the project saying he entertained "very positive" feedback.
"It's an epoch-changing (decision).. after talking for 20 years of the need to achieve separation of the network and manage it in a fair way for all operators (who need to) access it," Calenda said after the meeting with TIM.
He added that the government would evaluate the details of the "complex" operation with Italy's communications regulator.
The Rome-based group has come under pressure over the years from politicians, regulators and competitors to separate and upgrade its fixed line network, which analysts have valued up to 15 billion euros ($18.55 billion)
Milan listed shares in Telecom Italia rose 2.9 percent following the Genish and Calenda statements.
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