Italian Operators Join to Build 6,000 Towers

Telecom Italia formed a joint venture with Swisscom’s Fastweb + Vodafone to build and manage 6,000 telecoms towers in Italy. The move should cut future costs and boost the development of next-generation infrastructure.

The pair stated they had signed a non-binding agreement for the initiative, with each taking an equal share in the JV. There is an opportunity for third-party investors to be included in the company’s ownership structure at a later stage, and the infrastructure is to be made available to other telecoms operators on an open-access model basis.

Both operators flagged the opportunity to improve operational efficiency and bring costs into line with the European average, while maintaining high infrastructure quality standards and the technological flexibility required to develop next-generation networks. Construction is to be carried out in line with a multi-year development plan, with the duo acting as anchor tenants for the new infrastructure and entering long-term agreements for the use of towers at market prices.

The JV also flagged the potential to launch other services and accelerate the nationwide rollout of 5G. The agreement between the pair builds on a preliminary RAN sharing agreement, struck at the start of the year, to improve efficiency and boost the country’s 5G infrastructure. Potentially, the new JV could pose a threat to Inwit, which is currently Italy’s largest tower company. It counts both Telecom Italia and Fastweb + Vodafone as its customers.