Italian broadband business Fastweb is hoping to work with local rivals Vodafone and Wind to invest E2.5bn over five years in fibre-optic networks across Italy, reported the Wall Street Journal.
Fastweb CEO Carsten Schloter wants to replicate the success…
Italian broadband business Fastweb is hoping to work with local rivals Vodafone and Wind to invest E2.5bn over five years in fibre-optic networks across Italy, reported the Wall Street Journal.
Fastweb CEO Carsten Schloter wants to replicate the success of Collina Flemming, a residential area near Rome, where more than 7,000 homes have been connected to a fibre network that is linked to terminals owned by one of the three operators. Competition remains because the terminals, which are not fibre, determine the performance of the connections.
The three Italian operators are in ongoing talks with regulators to set up a JV to help roll-out fibre in the country’s 15 biggest cities.
However, the report adds that incumbent Telecom Italia has so far refused to back the plan, claiming a lack of demand for the network. Despite this, Schloter is cited insisting that Telecom Italia, which controls nearly all the country’s phone lines, will eventually agree to join the partnership out of necessity.
Last Wednesday, Swiss mobile operator Swisscom launched an E256m bid to acquire the 18% it does not already own in Fastweb. Credit Suisse and Banca IM are advising Swisscom, while Legance Studio Legale Associato is providing legal advice, a Swisscom spokesperson told TelecomFinance.
Fastweb is also currently being probed over an alleged E2bn money laundering scam, involving Telecom Italia’s Sparkle.
Seven executives from the two companies, including Fastweb founder Silvio Scaglia and CEO Stefano Parisi, will attend a trial starting on November 2.
