Italian telco Fastweb has signed a €300m (US$399m) loan with the European Investment Bank (EIB) to help fund the rollout of high-speed broadband and VDSL2-based networks nationwide.
The EIB first released details of the then-proposed financing in…
Italian telco Fastweb has signed a €300m (US$399m) loan with the European Investment Bank (EIB) to help fund the rollout of high-speed broadband and VDSL2-based networks nationwide.
The EIB first released details of the then-proposed financing in March, explaining that the three-year project will enable Fastweb to offer ultra high-speed fixed broadband services in competition with incumbent Telecom Italia and other fixed and mobile broadband platforms.
“Accordingly, the project is in line with the [European Union’s] Europe 2020 Strategy to foster smart growth and develop an economy based on knowledge and innovation.”
The total cost of the broadband project, which runs from the beginning of 2013 to the end to 2015, is €750m, according to the EIB.
Swisscom-owned Fastweb claimed earlier this month that the expansion of its fibre-optic network was at an advanced stage. According to the Milan-based company’s H1 2013 results, fibre-optic investments accounted for €28m (12.3%) of its €256m capex for the period.
Fastweb reported revenues of €785m for the first half of the year, down 1.6% from €798m in the same period in 2012. EBITDA stood at €210m. The company claimed to have 1.89 million customers at the end of June, representing a 12.8% increase year-on-year.
In early July, Swisscom’s late CEO Carsten Schloter said his company had no intention to sell Fastweb, following media speculation that UK-based Vodafone had expressed interest.
Schloter told a Swiss newspaper that Swisscom believes it can further increase the value of the Italian unit, saying its fibre infrastructure “plays an increasingly important role” in the local market.
