March 19, 2026, 08:18March 19, 2026, 08:18
Swisscom is once again teaming up with competitor Telecom Italia in Italy: The Milan-based Swisscom subsidiaries “Fastweb + Vodafone Italia” are setting up a joint venture with Telecom Italia Mobile (TIM) to build and operate up to 6,000 mobile phone masts.
Swisscom CEO Christoph Aeschlimann.Image: keystone
The joint project between Fastweb + Vodafone and TIM is also intended to promote the rapid expansion of 5G networks nationwide, Swisscom announced in a communiqué on Thursday. The construction work is expected to take place gradually over several years. With the project, Italy’s two major mobile phone providers want to reduce costs and increase operational efficiency.
The joint venture will build and operate the masts. These would then be rented from Fastweb + Vodafone and TIM. Both mobile phone providers will conclude long-term service contracts with the joint venture at market prices. “In addition, Fastweb + Vodafone and TIM will jointly examine whether additional services should be provided,” it said.
Third shareholder expected
The joint venture is initially owned half by Fastweb + Vodafone and half by TIM. The contribution from Fastweb and Vodafone will probably be limited to an equity contribution of a single-digit million amount, said a Swisscom spokesman when asked by the AWP news agency.
It is expected that a third minority investor will join at a later date once the long-term agreements (including investment agreement, shareholder agreement) with TIM have been concluded. This would lead to three co-controlling shareholders.
The financing of the project will be covered by a combination of equity from third-party investors and debt capital. “We are not making any further comments on the financial figures at this time,” said the spokesman.
The joint venture is consolidated in Swisscom’s annual financial statements using the equity method and has no influence on free cash flow or the financial outlook, the Swiss telecom group wrote. The implementation of the project is still subject to the usual approvals.
Faster expansion of 5G
This is not the first collaboration between Fastweb + Vodafone Italia and competitor TIM: at the beginning of January, both telecom providers decided to work together to accelerate the expansion of 5G mobile technology in rural areas in communities with fewer than 35,000 inhabitants.
Each group is expanding the network in 10 regions, so that a network with around 15,500 locations per operator should be created by the end of 2028. Both operators should then use each other’s radio access network (RAN) in the relevant areas to avoid duplication. In the medium term, Swisscom expects annual savings in the mid double-digit million euro range.
The difference to the current agreement is that the agreement from the beginning of January grants technical access to the mobile network. In contrast, the new joint venture only wants to build and operate the masts on which the various mobile phone antennas from Fastweb + Vodafone Italia and TIM will be hung. Both mobile phone providers then pay rent for this. (dab/sda/awp)