MILAN, Dec 23 (Reuters) - Italy's antitrust watchdog has

opened an investigation into the business relationship between

Telecom Italia (TIM) and FiberCop, the fixed-line

network company spun-off from the former phone monopoly.

After the 22 billion euro ($22.90 billion) sale of FiberCop

to a consortium led by U.S. investment fund KKR last

July, TIM signed a 15-year master service agreement (MSA) to

regulate business with its former network company, which offers

connectivity capacity to TIM and rivals operating in the Italian

telecoms market.

TIM's contract with the operator of its former fixed-line

fibre and copper network "contains provisions that could result

in an anti-competitive agreement", the competition authority

said on Monday.

TIM declined to comment on Monday. It has previously said

that the contract meets regulatory standards. A FiberCop

representative was not immediately available to comment.

($1 = 0.9607 euros)