Telecom Italia and Fastweb Near 5G Network-Sharing Deal to Cut Costs Across Italy
GeokHub
MILAN, Jan 6 — GeokHub Telecom Italia (TIM) and Fastweb, the Italian unit of Swisscom, are close to finalising a mobile network-sharing agreement aimed at significantly reducing the cost of upgrading and operating 5G infrastructure across Italy, according to industry sources familiar with the discussions.
The proposed arrangement comes as Italy’s telecommunications sector struggles with shrinking revenues and intense price competition. Industry data show Italian telecom operators have lost nearly one-third of their revenue since 2010, while post-investment cash flow has dropped sharply over the same period.
Focus on Standalone 5G
The agreement would allow both companies to accelerate the rollout of standalone 5G, a next-generation network architecture built independently from existing 4G systems. Standalone 5G is seen as essential for advanced services but requires heavy capital investment — a major challenge in Italy’s low-margin market.
Under the deal, each operator could save an estimated €250 million to €300 million over the next decade, according to one source.
Project ‘Prism’ Targets Smaller Cities
The project, internally known as “Prism,” would involve sharing active network components, including antennas, base stations, radio units, backhaul systems and other core transmission equipment.
The cooperation would focus primarily on towns with fewer than 35,000 residents, where duplicating infrastructure is considered economically inefficient. The companies aim to complete the agreement by early March, the sources said.
Neither Telecom Italia nor Fastweb has commented publicly on the negotiations.
Market Pressures Drive Collaboration
Fastweb emerged as Italy’s largest mobile operator last year following its €8 billion acquisition of Vodafone Italy, a move that reshaped the country’s telecom landscape.
A network-sharing partnership with Telecom Italia would revive an earlier, unimplemented plan between TIM and Vodafone, which stalled after their passive mobile infrastructure was merged into tower operator INWIT in 2019.
Under the current proposal, each company would be responsible for upgrading and managing technology in specific geographic areas, avoiding duplicated investment. Spectrum sharing is also expected to be part of the agreement.
The plan reportedly includes the creation of a joint venture that would oversee a shared grid of roughly 15,500 mobile sites by the end of 2028, while keeping assets and supplier contracts separate.
Cheap Data, Thin Margins
Italy remains one of Europe’s most competitive mobile markets, with some plans offering 100GB of data for under €10, significantly limiting profitability for operators.
At the same time, industry group Asstel is urging regulators to renew spectrum licences after operators collectively spent €6.5 billion in a fiercely competitive spectrum auction in 2018.
