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Iliad seeks to stop 5G network sharing agreement between Wind Tre and Fastweb in Italy

It is understood the operator is also trying to stop a joint venture between TIM and Vodafone, since it would be the only Italian MNO left out of sharing agreements.

Background: Italian operators Wind Tre and Fastweb signed a 5G network sharing agreement in June 2019. The companies committed to deploy a shared 5G radio access and backhauling network across Wind Tre and Fastweb’s macro and small cells, connected through dark fibre from Fastweb. The venture will have an initial 10-year duration and aims to cover 90% of the Italian population with 5G by 2026. As part of the deal, Wind Tre will also allow Fastweb to roam on its existing mobile network, while Fastweb will provide Wind Tre with wholesale access to its FTTH and FTTC network. In October 2019, the Ministry of Economic Development (MISE) gave the green light to the agreement.

Iliad opposes the agreement: On 21 January 2020, it emerged that Iliad, which had entered the Italian mobile market following the Wind–Tre merger, filed an appeal in October 2019 against the MISE’s decision to authorise the joint venture, and against a decision of the Italian regulator AGCOM of 30 September 2019. The document issued by the Tribunal, and seen by Assembly, does not specify the merits of the appeal, but schedules a preliminary audience for 12 February 2020, in which the court will decide whether to grant Iliad access to the agreement deed. A ruling on merit on whether the MISE’s decision should be annulled is scheduled for 7 October 2020.

Why does this matter? The Fastweb–Wind Tre deal follows the network sharing agreement between TIM and Vodafone, which was announced in July 2019. The combined effect of these two JVs would leave Iliad as the sole MNO in the country left out of a sharing agreement. It is understood Iliad also tried to stop the TIM–Vodafone deal, which is pending regulatory approval and under investigation by the European Commission. A decision on this is expected in late February 2020. As the new entrant following the Wind–Tre merger, Iliad has a transitional agreement to use Wind Tre’s network, but only until Iliad’s own network is rolled out. If the two sharing agreements go ahead, they could allow the relevant MNOs to make efficiencies and respond to the disruptive effect Iliad has had on the Italian mobile market until now, putting pressure on retail prices.