Telecom Italia, Vodafone Sign Active Mobile Network Sharing Partnership for 5G Rollout

Telecom Italia, Vodafone Sign Active Mobile Network Sharing Partnership for 5G Rollout Image Credit: porover/Bigstockphoto.com

Following on from the announcement early this year, TIM and Vodafone have signed agreements for an extension of their existing passive network sharing agreement with INWIT and for an active mobile network sharing partnership.

With reference to active network sharing, the agreement will enable TIM and Vodafone to jointly roll out 5G infrastructure, enabling more efficient deployment of the new technology over a wider geographic area and at a lower cost.

In Vodafone’s case, the agreement will result in synergies worth over €800m, in addition to indirect benefits resulting from INWIT’s synergies. Vodafone will also receive a consideration of €2,140m and expects to receive over time incremental proceeds over €1bn which it intends to use to cut debt.

TIM is expected to benefit from expected synergies of over €800m, in addition to estimated synergies for the new INWIT in terms of an annual €200m improvement in EBITDA by 2026, through synergies, commitments and new potential opportunities. The transaction is also expected to enable TIM to cut debt by more than €1.4bn over time.

At the same time, the two companies will extend their existing passive sharing agreement from the current 10,000 sites to achieve nationwide coverage, with the aim of accelerating and enhancing the deployment of 5G technology and using their network infrastructure more efficiently, both in urban and rural areas.

Aldo Bisio, CEO of Vodafone Italia
This agreement will enable us to step up the rollout of 5G for the benefit of our customers and the community as a whole. 5G has a key role to play in modernising the country.

Luigi Gubitosi, CEO of TIM
Completion of this transaction is key for the country’s infrastructure and technological development and will enable us to further accelerate the deployment of 5G.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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