Metroweb, the Milan-based dark fibre provider, has lined up a reported 15 banks to help finance a €750m-€800m plan to deploy cable in 10 cities.
Metroweb, the Milan-based dark fibre provider, has lined up a reported 15 banks to help finance a €750m-€800m (US$832m-US$887) plan to deploy cable in 10 cities.
According to Il Messaggero, Santander is arranging the financing, while Unicredit, Banca Monte dei Paschi di Siena, UBI Banca, Banca Popolare di Milano, BBVA, ING, HSBC and Credit Agricole have offered to provide up to €400m (US$443.5m).
The remaining funding would reportedly come from Metroweb shareholders. It is possible that Vodafone (LSE:VOD) could also offer some backing. The UK player and Wind Telecomunicazioni, which is owned by Russia’s Vimpelcom (NASDAQ:VIP) have a letter of intent with Metroweb that expires on 29 February.
The two companies have proposed setting up a newco that would deploy Italy’s €12bn (US$13.3bn) national broadband plan. Telecom Italia (BIT:TIT), which they invited to participate as a partner, has said it wishes to lead the plan on its own. This week, the incumbent said it would reach 84% fibre coverage by 2018, with the government-backed Infratel covering the remaining area, which is less economically viable.
The cities to be covered reportedly include Milan, Rome, Turin, Verona, Genoa, Florence, Naples, Bari and Palermo.
