Italian Internet Service Provider(ISP), Fastweb and Telecom Italia(TIM) have partnered to build and sell FTTH (Fiber to the Home network) to other providers in the country, paving way for increased level of competition in the segment. Both operators plan to spend €1.2 billion on the project between now and 2020.
The infrastructure construction and the laying of the fiber will be realized through a joint venture(JV) co-owned by Fastweb and TIM with respective shareholding of 20% and 80%. The JV will be financed by debt and equity.
Both companies aim to connect 3 million housing units in the main 29 cities already covered in FTTC (Fibre to the Cabinet) by 2020. The JV will carry out the civil works and laying of optical fibers along the secondary network (by street cabinets up to the customer's house) allowing each of the two operators to share the excavation costs.
Through this agreement, Fastweb aims to bring the number of residential and business premises units covered by their own FTTH network from the current 2 million to 5 million, ie 20% of the Italian population by 2020. New connections to the customer's home will be built leveraging the fiber infrastructure laid by Fastweb up to the street cabinet and therefore not give rise to any duplication of investments and will complement the architecture developed to date, said the Operator.
Alberto Calcagno, CEO of Fastweb
With this agreement Fastweb confirms its commitment to the infrastructure development of the country through an industrial project in which the company will be featured. Our position in the ultra broadband market, where we are co-leaders, will be further strengthened thanks to the quality and connection speeds that will provide our customers.
