Swisscom has a lot of work with another billion Euro acquisition in Italy. But to tackle this, the state-owned company is teaming up with competitors.
The Swisscom Group has launched a joint venture in Italy.
On Thursday, the Swiss state-owned company presented a joint project involving the money pit Fastweb and the debt-financed billion-dollar acquisition of Vodafone Italia and TIM.
Faster Expansion
It was stated, somewhat cryptically, that this would allow Fastweb, Vodafone, and TIM to align their operational efficiency and costs with the European average.
At the same time, the quality of the infrastructure and technological flexibility in the development of next-generation networks would be ensured.
The implication is that Italy would make faster progress in expanding 5G networks than it would without the cartel.
It has long been known that network businesses require high levels of investment. This is particularly true in the telecommunications sector.
Swisscom has already had to announce several profit slumps as a result of the multi-billion-dollar acquisition, as reported by muula.ch.
Half Off-Balance Sheet
The participating companies have reached a non-binding agreement on the construction and operation of new cell towers at up to 6,000 new locations in Italy.
But the project will be carried out first as a 50/50 joint venture, with the intention of bringing in third-party investors as shareholders, thereby expanding the consortium.
The financing of the joint project over the coming years will be covered by a combination of equity from third-party investors and debt.
The joint venture will be consolidated in Swisscom’s financial statements using the equity method, meaning that it will be recognized only proportionally in equity and not fully in the books.
Less and Less Competition
“The implementation of the project is still subject to the usual approvals,” wrote the Swisscom media spokesperson in a press release designed to resemble a newspaper article.
This means that the antitrust authorities still have a say in the matter.
In early January, Swisscom had already announced a partnership with TIM regarding the use of mobile access networks (RAN).
This, too, was subject to regulatory approval. But now the scope of the cooperation and its separation from Swisscom’s financial statements is growing.
March 19, 2026/kut./ena.
