After Fastweb+Vodafone, Tim also breaks ties with Inwit over telecom towers.
The board of directors of the telecom operator led by Pietro Labriola has resolved to terminate the framework contract with Inwit, which governs the use of transmission tower infrastructures.
The decision follows a similar move by Fastweb + Vodafone: last week the Swiss group Swisscom, which controls Fastweb and integrated Vodafone Italy at the end of 2024, 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.
The dispute affects contracts fundamental to the tower company’s revenues. Meanwhile, the market reacts negatively: Inwit’s stock opened lower at Piazza Affari, dropping 3.2%, then reduced losses by midday and stood around 6.78 euros at 1 PM. In the background remains an uncertain industrial scenario, also in light of the joint venture project between Tim and Fastweb+Vodafone Italy to build up to 6,000 new towers to support 5G development in Italy. On this front, Inwit expresses strong opposition, arguing that duplicating infrastructures is “lacking industrial, economic, and environmental logic,” as well as requiring “biblical times for completion” and “would slow down the essential development of 5G.”
All details.
TIM’S DECISION
In a statement released Sunday, Tim announced that its board resolved to terminate the contract governing the relationship between the parties for the use of the infrastructure, “effective at the contractual expiration in August 2030, following the change of control clause exercised in 2022.”
Furthermore, the company explained that, after Fastweb+Vodafone’s termination of the Msa with Inwit, “in the event it is established – either judicially or by agreement between the parties – that the change of control occurred in December 2020 triggered the applicability of the related contractual clause,” the communication “shall also be understood as termination effective with respect to the original deadline of March 31, 2028.”
Tim justified the decision by stating it falls “within the company’s ongoing efforts to optimize its infrastructure cost structure,” declared the former Italian telephone monopoly. It will now initiate negotiations with Inwit for a multi-year migration plan that ensures operational continuity.”
In conclusion, Tim stated it “will start negotiations to agree with Inwit on a multi-year migration plan that ensures operational continuity after the contract expires.” The telecom operator led by Labriola said it is “willing to consider with Inwit a comprehensive revision of the economic and service conditions of the agreement” also with a view to “continuing the development of the country’s strategic infrastructure investments.”
INWIT’S RESPONSE
For its part, the tower company led by Diego Galli reiterates that the Msa with Tim is valid until 2038 and the termination is “legally unfounded.”
Specifically, Inwit contests the termination notified by Tim, considering it contrary to contractual clauses. Following the 2022 change of control, both parties had exercised the right of automatic contract renewal for 8+8 years, extending its validity until 2038 and making termination unenforceable. According to Inwit, this “cross” renewal made the agreement’s duration irrevocable for both companies. Moreover, any legal decisions related to the contract with Fastweb do not apply to Tim. For these reasons, Inwit deems the termination ineffective and interprets it as a tactical move to obtain more favorable economic conditions in contract renegotiation.
AFTER FASTWEB+VODAFONE’S MOVE
As mentioned, last week Fastweb+Vodafone notified the termination of the Msa contract with Inwit, with cessation scheduled for March 2028 after the notice period. The decision by the Swisscom-controlled company is motivated by service costs considered above market benchmarks and Inwit’s unwillingness to renegotiate them, factors that would limit investment capacity in networks. According to the Swiss group, exiting the agreement will allow reallocating resources towards new infrastructures, improving quality and coverage, and accelerating 5G development, with annual investments of about 1.5 billion euros. Fastweb+Vodafone also asserts the full legitimacy of the withdrawal, highlighting that Inwit did not exercise the renewal option after the 2020 change of control, thus keeping the original contract expiration valid.
Moreover, the company also announced it has “initiated legal action in competent courts to assert its contractual right to terminate the agreement.”
Therefore, for Inwit, the front opened by Fastweb+Vodafone has expanded also with Tim, which nonetheless leaves the door open to negotiation “of the economic and service conditions of the agreement in the interest of all stakeholders.”
THE LETTER FROM ARDIAN TO TIM
Meanwhile, according to what was reported yesterday by Bloomberg, Inwit’s shareholder Ardian sent a letter to Tim warning that any early termination of the contract with Inwit would constitute a serious breach of the contracts underlying the operation through which Ardian acquired control of the corporate vehicle previously also participated in by the telecom operator. Therefore, the termination would expose former Telecom Italia to “extremely serious liabilities.” The letter, Bloomberg specifies, was sent by Daphne 3, controlled by Ardian, which holds about 32% of Inwit.
