A person familiar with Italian dark fibre operator Metroweb has dismissed press reports that the fibreco is due to sign a letter of intent with Wind Telecomunicazioni over a possible collaboration to speed up fibre deployment across the country.
The…
A person familiar with Italian dark fibre operator Metroweb has dismissed press reports that the fibreco is due to sign a letter of intent with Wind Telecomunicazioni over a possible collaboration to speed up fibre deployment across the country.
The person told TelecomFinance that the company has received no such a document, although he confirmed that there are ongoing discussions with both Vodafone, with which Metroweb signed a letter of intent in March, and Wind.
However, he said it is not possible to develop a business plan, which would include financial terms, before the decree detailing the timing and procedures of the government’s broadband plan is made public.
The decree, which should reportedly be published by the first week of June, is expected to include specifics on the financial incentives and tax breaks to be granted to the project’s winning bidders.
The person said that Wind, owned by Russia-focused Vimpelcom, is evaluating whether or not to acquire a stake in Metroweb or ink a commercial agreement.
Unlike Telecom Italia, which failed to reach an agreement with Metroweb as it aimed to secure full control of the company, Wind and Vodafone have agreed to work together with the partly state-owned operator to help the government implement its €12bn high-speed broadband plan designed to bridge the digital gap between Italy and its European counterparts.
However, Wind, which is in merger talks with Hutchinson Whampoa’s wireless unit 3 Italia to create an “equal joint venture”, might not have adequate financial resources to make a significant direct investment in the project, as it struggling to reduce its nearly €10bn debt burden.
Telecom Italia in talks with Enel
A partnership between Metroweb, Wind and Vodafone would deal a blow to Telecom Italia’s ambitions to lead the country’s transition to fibre.
The incumbent, which has recently announced it will raise investments in fiber–to-the-home in 40 Italian cities from an initial €500m to €650-700m, is in early-stage talks with the country’s largest utility Enel over a possible collaboration, its president Giuseppe Recchi told Reuters.
The telco’s technical team is evaluating the technical feasibility of the project, as well as its industrial and financial sustainability, Recchi was quoted saying, pointing out that it is still too early to discuss the timing of a potential agreement.
“The press reports increase the possibility of forming two opposed partnerships for the deployment of ultra-fast fixed networks,” ICBPI telecom analyst Stefano Vulpiani said.
He added that chances of a newco involving Telecom Italia, which could form an alliance with Enel, are slim, since Vodafone has reportedly requested that no company other than CDP, F2i or FSI [Metroweb’s current shareholders] have a majority stake in the potential fibre infrastructure venture.
Hutch, Vimpelcom mull listing of merged 3/Wind entity
Hong Kong-based Hutchison Whampoa and Vimpelcom, partly owned by Russian billionaire Mikhail Fridman, are considering an IPO of the combined 3-Wind entity, Bloomberg reports.
The new entity, which would be valued at up to US$18bn and have about 30 million customers, would become a direct competitor of former incumbent Telecom Italia, Italy’s only major listed carrier.
Regulatory approval for the deal could reportedly take up to a year.
The two companies, which have discussed a tie-up for years and, before that, a combination of their tower operations, last year reported some €6.4bn (US$7.2bn) in revenues.
Hutchison has been leading four-to-three mobile consolidation in Europe, buying O2 Ireland and Orange Austria, and agreeing to buy O2 in the UK. In Germany, Telefonica’s local business merged with KPN’s E-Plus. European competition officials have so far cleared each in-market consolidation deal, with conditions.
Metroweb and Hutchison declined to comment, while Vimpelcom and Vodafone did not respond to requests for comment.
