Telecom Italia and Fastweb Forge 5G Network-Sharing Deal to Cut Costs
According to Telecoms Tech News, Telecom Italia and Fastweb, the Italian arm of Swisscom, are close to finalizing a groundbreaking network-sharing agreement. The deal, internally dubbed ‘Prism,’ aims to reduce the burdensome costs associated with upgrading to standalone 5G infrastructure while addressing falling revenues and intense market competition in Italy’s telecom sector.
The ‘Prism’ Agreement: What It Means for Telecom Infrastructure
The proposed partnership between Telecom Italia and Fastweb revolves around sharing active network components such as antennas, base stations, and backhaul networks. Focused on towns with less than 35,000 residents, where returns on investment are limited, the shared grid strategy is expected to save each operator between €250 million and €300 million over a 10-year period. By collaborating on infrastructure, both companies can improve cost efficiency while maintaining operational independence and service-level differentiation.
The plan also integrates spectrum-sharing elements, with designated responsibilities for upgrading technology across specific regions. Once completed, the shared network is projected to cover approximately 15,500 sites by 2028, significantly advancing the rollout of standalone 5G in underserved areas.
Market Context: Why This Matters for the Telecom Industry
Italy’s telecom market, one of Europe’s most price-sensitive, has long been grappling with dwindling revenues. Since 2010, mobile operator revenues in the country have dropped by nearly 30%, while post-investment cash flow has fallen from €10.5 billion to zero, according to data from industry group Asstel. Competitive pricing pressures, including €10-per-month large data plans, have made it increasingly difficult for operators to recover capital for spectrum licenses and 5G network buildouts.
Meanwhile, standalone 5G capabilities—which promise reduced latency and advanced enterprise applications like IoT and edge computing—require significant upfront investments that incremental upgrades to existing 4G networks cannot fulfill. With this context, network sharing is emerging as a practical and necessary approach to advancing technology while keeping costs manageable.
The challenges extend beyond Italy. Europe’s telecom operators are collectively under pressure to address high spectrum costs, unsustainably low pricing models, and the capital-heavy nature of 5G infrastructure. In its 2026 outlook, JPMorgan identified Italy as one of Europe’s lowest-margin markets, underscoring the financial constraints operators face on a regional scale.
Future Outlook: Reshaping Competition and Collaboration
The Prism initiative reflects a broader shift toward cooperation in a traditionally competitive industry. Asstel’s recent push for regulatory reforms, including longer spectrum license terms, aligns with these moves toward sustainable infrastructure strategies. However, network sharing doesn’t come without challenges, as it requires balancing collaboration with the need to protect competitive differentiation.
Analysts believe joint infrastructure models like Prism are likely to gain traction as telecom companies seek to balance financial sustainability with technological advancement. For enterprise customers, this could mean accelerated deployment of advanced 5G capabilities in suburban or rural areas, enabling businesses to leverage next-generation technologies like IoT and edge computing sooner than expected.
While Telecom Italia and Fastweb have not provided formal timelines, sources indicate an agreement could be finalized by March 2026. If successful, this collaboration could redefine the infrastructure strategies of European telecom operators and set a precedent for other markets grappling with similar profitability constraints.
Wrapping Up: What’s Next for Telecom in Europe?
As telecom operators navigate the complexities of rolling out 5G in cost-sensitive markets, the line between competition and collaboration continues to blur. The Telecom Italia-Fastweb deal demonstrates how partnerships could become the norm under current economic constraints.
Do you think network-sharing models like this will become standard practice in the global telecom industry? Share your thoughts in the comments below!
