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Fastweb cancels INWIT, sparking a telecoms tower dispute in Italy

Swisscom's Italian subsidiary Fastweb terminated a long-term contract on Wednesday with INWIT. This escalated a dispute with the top telecom towers provider in the country.

Fastweb, who inherited the INWIT contract through its acquisition last year of Vodafone Italy, was pushing for a renegotiation, something that the tower company had refused to do.

Fastweb announced last week that it would form a joint venture to build up 6,000 telecoms masts in Italy with Telecom Italia, INWIT's 'other main customer.

Sources said that TIM will follow Fastweb in terminating its deal with INWIT. The decision is expected to be made at a weekend board meeting.

Fastweb stated that the decision to end the master service contract was due to INWIT's tower cost being above market levels and its refusal of formal negotiations in order to align with standard market conditions.

INWIT's shares dropped as much as 10 percent on Wednesday, and they were down 5.7% at 1245 GMT. The company said Fastweb’s move was illegal, and that it would file an urgent application to a Milan Court to block it.

The contracts that INWIT has signed with the two telecom operators to host their antennas on its 25,000 masts in Italy, which are owned by the tower company, account for the majority of its revenue of 1 billion euros ($1.16billion).

INWIT, which was born as a'spin-off' of TIM's mobile 'tower' assets, merged with Vodafone's 'Italian mast' business in 2020. Vantage Towers and infrastructure fund Ardian are its two largest investors.

(source: Reuters)