- Telecom Italia and Swisscom‑owned Fastweb near a mobile network‑sharing agreement to reduce 5G rollout and operational costs across Italy.
- The deal, codenamed Project Prism, could save each operator around €250–300 million over 10 years and revives earlier network collaboration plans.
What happened: Network-sharing deal to cut 5G costs
Telecom Italia (TIM) and Fastweb are nearing an agreement to share their 5G network infrastructure in Italy. This initiative, referred to as Project Prism, aims to reduce the cost of deploying 5G technology. By sharing network components like antennas and base stations, both companies can avoid investing in duplicate infrastructure, especially in smaller towns with populations under 35,000.
This collaboration is designed to optimise their resources and improve cost-efficiency. Along with sharing infrastructure, the two companies will also pool spectrum to maximise network performance. The goal is to roll out 5G faster and more affordably across Italy, particularly in areas that are less economically viable for a single company to invest in.
Fastweb, which recently expanded its presence in the Italian mobile market after acquiring Vodafone’s Italian business, now stands as the country’s largest mobile operator. The joint venture to manage 15,500 shared sites is expected to be completed by 2028. The deal is set to be finalised by early March 2026, although neither company has publicly confirmed the terms.
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Why it’s important
The agreement between Telecom Italia and Fastweb is vital as both companies are facing significant pressure in Italy’s telecom market. Revenue growth has stagnated, and price competition remains intense, making it difficult for operators to invest heavily in new technologies like 5G.
By sharing infrastructure, the two companies will be able to significantly reduce costs while accelerating the rollout of next-generation networks. This collaboration can also help address Italy’s cheap mobile data plans, which are among the lowest in Europe. In order to improve profitability, Telecom Italia and Fastweb are pooling resources to deliver cutting-edge services.
However, this partnership raises concerns about reduced competition and service differentiation. With fewer distinct networks, the market could see less innovation, and consumers may have fewer choices. Despite these potential drawbacks, the deal could become a model for other European operators facing similar market conditions and regulatory pressures.
