The proposed deal would see the two operators collaborate on active 5G infrastructure, sharing elements such as antennas, base stations and backhaul in areas where duplicate networks are costly and inefficient.
The aim is to significantly reduce build-out and operating costs as both carriers focus on expanding standalone 5G coverage across the country.
Industry insiders say the initiative, internally referred to as Project Prism, could drive €250 million to €300 million in savings for each operator over the next decade by avoiding unnecessary duplication of equipment and boosting deployment efficiency in towns of fewer than 35,000 inhabitants.
Rather than merging assets or sharing supplier contracts, the agreement is expected to centre on forming a joint venture responsible for managing up to 15,500 shared sites by the end of 2028, while both TIM and Fastweb retain commercial independence.
The collaboration reflects growing pressure on Italian carriers, who have faced intense price competition and declining revenues over the past decade, making cost-effective 5G expansion increasingly challenging. Operators are under particular pressure to accelerate rollout of standalone 5G, which requires more advanced network infrastructure than previous 5G releases.
Fastweb, having recently acquired Vodafone Italy in a deal that created the country’s largest mobile operator, is a pivotal partner for TIM in this initiative. Talk of network sharing had earlier surfaced between TIM and Vodafone, but those plans were never finalised.
The Italian government and competition authorities are expected to scrutinise the agreement before it can be completed, weighing its potential to cut costs against broader market competition implications.
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