Swisscom, owner of Fastweb + Vodafone, says it has entered into a non-binding strategic agreement with Italy’s incumbent operator to build up to 6,000 news basestation sites
Swisscom says it has entered into a non-binding agreement to develop and operate new mobile towers – passive infrastructure – building up to 6,000 new sites in Italy with incumbent TIM.
The joint initiative is intended to speed the deployment of 5G nationwide and allow the two companies to “align operational efficiency and costs to the European average”, while ensuring the quality of infrastructure and its “technological flexibility”.
The initiative will offer other telecom service providers access to sites built by the 50/50 joint venture (JV). The two also plan attract third-party investors as shareholders to “improve capital efficiency”.
The parties expect construction will take place over several years. As anchor tenants, Fastweb + Vodafone and TIM will enter into long-term service agreements with the JV for use of passive infrastructure services at market prices. The two parties will jointly evaluate the provision of further related services.
Implementation of the project remains subject to customary approvals. Financing the project will be covered by a combination of equity from third-party investors and debt. The joint venture will be consolidated at equity within the financial statements of Swisscom and will have no impact on free cash flow and the guidance.
