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Vodafone and TIM to create the biggest mobile towers firm in Italy

Vodafone and TIM to create the biggest mobile towers firm in Italy
Vodafone and TIM to create the biggest mobile towers firm in Italy
5G network is all set to become the future of connectivity and telecom companies everywhere have now begun to welcome it with open arms. Recently, Telecom Italia (TIM) and Vodafone made a similar move when they inked a deal to create Europe’s biggest mobile towers firm. The two parties are now looking to obtain conditional EU antitrust approval, which would enable them to offer lucrative 5G services.

Reportedly, both the firms had earlier planned to form Italy’s biggest mobile towers group last July by investing Vodafone’s Italian mobile masts to TIM’s subsidiary, INWIT. After the completion of this 10-billion-euro merger, both Vodafone and TIM would own a 37.5% stake and would be entitled to equal governance rights. Additionally, the agreement also includes a partnership as well as network sharing agreement to launch 5G infrastructure across Italy jointly.

Meanwhile, in a bid to address the rising EU antitrust concerns, both the telecom providers agreed to offer their rivals access to their infrastructure for approximately nine years. This would involve them sharing their resources from 400 - 630 highly populated sites annually with their competitors, allowing them to offer future and current fixed telephony and mobile services.

For the record, telecom companies often take part in such collaborative deals like sharing networks or combining towers in order to share costs and reduce debt. Besides, these moves also help telecoms get around the reluctance of EU antitrust regulators to approve mergers that might create a monopoly in the market.

Meanwhile, Vodafone Ukraine, a Ukrainian telecom operated by Bakcell under Vodafone’s brand, has extended its access and branding partnership with Vodafone Group. Apparently, Vodafone Partner Markets has signed such agreements with nearly 28 firms across 43 markets.

Besides, the deal allows the Ukrainian telecom to directly access Vodafone Group’s roaming and procurement services. By extending this deal, Vodafone Ukraine would be able to work with the group on enterprise and consumer products.

Source Credit: https://in.reuters.com/article/telecom-it-m-a-vodafone-group-eu-exclusi/exclusive-vodafone-tim-to-win-conditional-eu-approval-for-tower-deal-sources-idINKBN20S2E1