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Sources: Telecom Italia and Fastweb are looking to save money on 5G with Italy's network agreement

Three sources said that Telecom Italia and Swisscom's Italian division Fastweb were close to a deal for a network sharing agreement. This would help them cut the costs of upgrading and operating 5G infrastructure in Italy.

According to Asstel, Italian telecom firms want to revamp their "business model" after losing almost a quarter of their revenue in 2010 and having their post-investment funds drop to zero. In 2010, they had 10.5 billion euro ($12 billion), but that year it was down to zero.

The deal will help TIM, and its rival Fastweb, upgrade their'mobile networks' to 5G, a technology that was built from scratch, rather than based on 4G. Meanwhile, the sector is still being squeezed by fierce competition.

According to a source with knowledge about the deal, TIM could save up to 300 million Euros over ten years.

The project is code-named Prism internally and has not been reported previously. It covers active network components, such as antennas and base stations.

The people declined to name themselves as the plans were not made public.

Two sources stated that the parties aim to complete a final agreement by early march after reaching a preliminary agreement in recent weeks.

Fastweb and Telecom Italia representatives declined to comment.

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Fastweb became Italy's leading mobile operator in 2013 after buying out Vodafone's local operations for 8 billion euros.

The agreement with TIM will revive a network sharing plan that TIM,?Vodafone and INWIT agreed on but never implemented after their merger in 2019.

People said that the?deal' would require each operator to upgrade the technology in specific areas, to avoid duplication of investment and manage costs. Spectrum sharing is also expected.

(source: Reuters)