It is still a tug of war between Inwit and its main clients Tim and Fastweb+Vodafone over telecom towers.
The latest act took place on May 7 when the tower company led by Diego Galli (in the photo) responded to statements by Swisscom, the Swiss group that controls Fastweb and integrated Vodafone Italy at the end of 2024, rejecting accusations of unwillingness to engage in dialogue, while the dispute between the parties has reached the courts.
At the end of March Swisscom announced the termination of the Master Service Agreement with Inwit, initiating a process that will lead to the contract’s cessation by March 2028, in line – according to the Swiss conglomerate – with the stipulated clauses, while Inwit has filed a lawsuit and awaits a decision which, according to the company’s expectations, could come by May. Furthermore, Inwit has also filed a precautionary appeal against Tim. The telecom operator led by Pietro Labriola followed Fastweb’s move: on March 29 Tim’s board resolved to terminate the framework contract with Inwit, which governs the use of transmission tower infrastructures.
Inwit will publish its first quarter results on May 12, while the market closely watches the developments of the dispute and its implications on the group’s future prospects. The dispute indeed affects fundamental contracts for the tower company’s revenues.
All the details.
THE JV PROJECT FOR 6,000 TOWERS BETWEEN FASTWEB+VODAFONE AND TIM
During the conference call with analysts on May 7, Swisscom CEO Christoph Aeschlimann recalled that “We have signed a JV with Tim to develop up to 6,000 new towers under sustainable market conditions, we are in the phase of defining the agreement and obtaining approval from authorities.”
According to Inwit, the new JV project conflicts with the Msa agreements, which assign the company the role of preferred supplier for the construction of new sites. These contracts indeed provide a preferential right, with a “last call,” obliging operators to involve Inwit before turning to third parties.
At the same time, the Swiss conglomerate’s CEO recalled that “we have terminated the Msa (Master Service Agreement) with Inwit, we believe we have the right to exit in 2028. This will also help us shift the infrastructure from Inwit to a new infrastructure at sustainable market prices, helping reduce our costs and compete effectively in this highly competitive market.”
THE WORDS OF THE SWISSCOM CEO
Regarding the Msa with the tower company, Aeschlimann also stated that operational discussions with Inwit on managing the tower migration will only begin after the legal proceedings conclude.
“So far, there has been no discussion about provisional measures; I assume Inwit is awaiting the outcome of the ongoing legal process which we expect to conclude by summer,” Aeschlimann explained.
“After that, I expect to start discussions with Inwit about the migration. Once we have substantially agreed internally on how this will happen, we will communicate and update the market, perhaps by the end of this year or maybe next year. But what I can assure you is that we are working very seriously and intensively on this matter to ensure a sustainable path for our business,” the manager added.
INWIT’S RESPONSE
For its part, Inwit issued a statement to contest the declarations made by Swisscom regarding the relationship with Fastweb+Vodafone and the Master Service Agreement (Msa) contract, judging them “false and tendentious.”
“Inwit is reluctantly forced to correct what Swisscom has once again recklessly communicated today in the name and on behalf of the Italian subsidiary Fastweb,” stated the tower company.
“It is not true – the note reads – that Inwit ‘refused to start discussions’ with Fastweb, ‘ultimately forcing [it] to terminate the entire Msa contract.'”
“The exact opposite is true – the company reiterates – as easily documented, Inwit repeatedly offered concrete improvements to the Msa terms with a view to creating value for both parties, also suggesting addressing the issue of the Msa duration through assisted negotiation or arbitration. Fastweb unreasonably chose not to accept these proposals, opposing an unfair revision of the Msa conditions with economically exorbitant terms, always in a ‘take it or leave it’ manner, followed by the initiation of a merit judgment for delaying purposes, within which Inwit had to file a precautionary request to assert, with urgency, its reasons.”
TIM’S STRATEGY FOR EXITING INWIT
Meanwhile, Tim also addressed the Msa issue with Inwit during the presentation to analysts. The CEO of the Italian telco, Pietro Labriola, explained that the group has developed an alternative plan in case an agreement with Inwit is not reached.
“We have defined a new strategy for towers, clear and realistic. It offers us flexibility and control while preserving value, and provides significant savings in operating and investment costs if a satisfactory agreement with Inwit is not reached,” Labriola declared.
The strategy is based on three pillars. The first concerns the use of already existing third-party towers. “The market currently offers about 30,000 towers, excluding Inwit, and we plan to use about 8,500, less than 30% of the total available. This offers considerable flexibility and avoids the need for further investments,” the manager explained.
The second component concerns the construction of new towers by third-party operators. “We are already seeing strong market interest for the development of about 6,000 towers, with a feasible implementation plan of about 500 sites per year, shared among various operators,” Labriola added.
The third pillar is represented by the joint venture announced with Fastweb+Vodafone. “This will add another 6,000 sites over the next 12 years, with maximum flexibility to adjust the implementation pace based on market conditions.”
According to Labriola, “we believe we have a clear and achievable path for a complete exit from Inwit in about 10 years, maintaining operational continuity and improving long-term efficiency.”
