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Swisscom strengthens its operations in Italy
The subsidiary Fastweb acquires a specific frequency band from Tiscali, which is expected to play an important role in the next generation of 5G mobile communications. In addition, Fastweb Tiscali buys the so-called fixed wireless infrastructure, a technology to bridge the "last fixed kilometer" over the airwaves.
The transaction has a total value of about 150 million euros, said Swisscom Monday evening. It will be financed with cash reserves from Fastweb. The agreement, which still needs to be approved by the relevant authorities, is expected to come into service in November 2018.
According to the announcement, 835 radio towers and 34 employees pass to Frequency Fastweb
as main value [19659005] However, the largest value of the transaction lies in the frequency spectrum of 40 MHz in the frequency band 3.5 GHz, explained a spokesman for Swisscom on request. This is important for the upcoming 5G frequency auction in Italy. Overall, the acquisition is an important step for Fastweb in its convergence strategy of offering fixed and mobile products.
Fastweb has only entered the mobile market since last year, thanks to a collaboration with Telecom Italia. However, Fastweb does not have the ambition to become the fifth largest mobile network operator in Italy, the spokesman said. However, investments are planned in 5G with a focus on big cities. Fastweb is also exploring opportunities at the upcoming spectrum auction in Italy.
Meanwhile, Tiscali completes a 40 million euro wholesale contract with Fastweb, according to the company. This is also part of the transaction price of 150 million euros. 100 million would be paid in cash, half in 2018 and 2019. 10 million are also debts of 10 million to suppliers.
Bern (awp)
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