During 2006, Telecom Italia—the most important of Italy’s entirely privatized
companies and one of the largest in the country in terms of market
capitalization, profit, employment, and technological wealth—ran into
political controversy. On 11 September, CEO Marco Tronchetti Provera
presented the company’s board with a strategic plan that, breaking with
the course followed the previous year, foresaw the unbundling of three
divisions: Telecom Italia (TI, landline telephone services, Internet, and
media operations), Telecom Italia Mobile (TIM, mobile telephone services),
and Telecom Italia Rete (the network operator). In the days following
the announcement, the government claimed that it had been kept
in the dark about the proposal despite a series of meetings with the TI
board. The press nevertheless revealed that one of Romano Prodi’s advisers
had sent Tronchetti an alternative plan that would have allowed the
purchase of the landline network by the Cassa Depositi e Prestiti (Deposit
and Loans Fund), a holding group controlled by the Ministry of Finance.
Prodi denied any knowledge of this plan in Parliament (his adviser subsequently
resigned).