Vodafone, VimpelCom’s Wind Telecomunicazioni and dark fire provider Metroweb have reportedly extended, for a third time, talks to build out a fibre optic network in Italy. The news comes a few weeks after Telecom Italia, which Vodafone and Wind had invited to participate as a partner, reportedly presented a plan to acquire Metroweb.
Vodafone (LSE:VOD), VimpelCom’s (NASDAQ:VIP) Wind Telecomunicazioni and dark fire provider Metroweb have reportedly extended, for a third time, talks to build out a fibre optic network in Italy.
Milan-based Metroweb has extended its letter of intent, signed in May 20015, with the two mobile operators from 29 February to the end of March, local media reported. The deadline to turn the document into a binding letter was originally set for 31 October 2015, extended to the end of the year and then to 29 February 2016 before the latest extension.
Vodafone and Wind 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. A few weeks ago, the Italian incumbent reportedly presented its plan to acquire Metroweb and, last month, said it was aiming to reach 84% fibre coverage by 2018. Government-backed Infratel would cover the remaining area.
Local energy firm Enel is also reported to be eyeing Metroweb to deploy a national fibre network.
In mid-February, Metroweb 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 Crédit 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 could also offer some backing.
Metroweb is owned by Fastweb (10.6%) and Metroweb Italia (87%), which is itself owned by infrastructure fund F2i (54%) and CDP’s Fondo Strategico Italiano (46.2%).
Vodafone has declined to comment, while Metroweb and Wind were not immediately available.