The move is part of a cunning plan by Chief Executive Luigi Gubitosi aimed at reviving the former monopoly, an underperforming business saddled with a 24 billion euro debt.

TIM, which owns 22 data centres across Italy and has its own cloud business, will invest in new top-tier data facilities to host Google Cloud, Gubitosi told analysts during a call, adding the Italian cloud market is expanding by 20 percent a year.

Gubitosi said the new company, which has a core profit target of 400 million euros by 2024, will look for one or more infrastructure funds to become minority partners to finance its expansion.

Later, TIM, which would keep control of the new entity, could consider listing a stake of it.

Gubitosi has set cutting TIM’s mountain of debt and extracting value from its network assets as the company’s main objectives.

An easing of tensions between the group’s top investors, French conglomerate Vivendi and U.S. activist fund Elliott, which took control of the board last year, could help the CEO deliver on promises.