Telecom Italia and Fastweb Eye Network-Sharing Deal to Reduce 5G Costs
According to Telecoms Tech News, Telecom Italia and Fastweb, the Italian arm of Swisscom, are nearing a groundbreaking network-sharing agreement designed to lower the financial strain of 5G infrastructure upgrades. This partnership could result in significant cost savings for both companies while addressing the challenges faced by the Italian telecom industry.
Inside the Telecom Italia and Fastweb Collaboration
The proposed agreement, internally referred to as Project Prism, focuses on shared 5G network development in towns with populations under 35,000. This arrangement would encompass active-sharing components such as antennas, base stations, radio units, and backhaul infrastructure while preserving independent service operations for both companies. It is estimated that this partnership could save each operator between €250 million and €300 million over a decade.
Under the agreement, Fastweb and Telecom Italia would divide the responsibility for upgrading technologies in specific territories, aiming to eliminate overlapping investment while achieving greater operational efficiency. The shared network is expected to cover approximately 15,500 sites by the end of 2028.
Standalone 5G, which offers lower latency and enhanced enterprise-use capabilities, requires significant investment beyond 4G systems. This makes infrastructure collaboration a more sustainable model, especially in price-sensitive markets.
Market Context: The Struggles of Italy’s Telecom Sector
The Italian telecom industry faces unique challenges. As reported by Asstel, the sector has seen a 30% decline in revenues since 2010, with post-investment cash flow plummeting from €10.5 billion to zero. Competition among operators has forced pricing to unsustainable levels, with large data plans selling for under €10 per month. These economic realities make it nearly impossible for companies to recover costs from spectrum licenses and network upgrades.
Additionally, Italy remains one of Europe’s lowest-priced mobile markets, highlighted in JPMorgan’s 2026 telecom outlook. Operators are still reeling from the country’s 2018 spectrum auction, where €6.5 billion was collectively spent on airwaves. With returns capped, partnerships like the one proposed by Telecom Italia and Fastweb might provide a much-needed lifeline to fund the rollout of advanced 5G networks and ensure long-term viability.
Industry Implications and Expert Perspectives
The Telecom Italia–Fastweb collaboration underscores a growing trend across Europe, where network sharing is gaining traction as telcos struggle with shrinking profit margins. Similar collaborations have been explored previously; for example, in 2019, Telecom Italia partnered with Vodafone on a passive network-sharing initiative, which ultimately failed to materialize. However, analysts believe the shifting market dynamics, particularly Fastweb’s expansion post its €8 billion acquisition of Vodafone Italy, make the current proposal more viable.
Industry analysts argue that network-sharing agreements offer a balance between cost savings and maintaining service-level competition. Regulatory bodies, however, will likely play a major role in shaping these partnerships by ensuring fair competition while promoting sustainable infrastructure development.
From an enterprise perspective, the immediate impacts of such collaborations may be minimal. Over time, though, they could significantly influence 5G availability in underserved areas, rollout timelines, and service innovations. Rural and less urbanized regions stand to benefit the most, as the shared investment model enables expanded coverage in areas with limited commercial potential.
Will Network Sharing Define the Future of European Telecom?
The pending deal between Telecom Italia and Fastweb signals a shift in how telecom firms manage infrastructure in challenging markets. As 5G emerges as a cornerstone for enterprise innovation—ranging from IoT to cloud applications—collaborations like this could redefine the competitive dynamics of the industry.
Looking ahead, the successful implementation of this agreement could set a precedent for other European operators to adopt similar models. Amid declining returns and rising costs, network sharing might be less an exception and more the norm.
What do you think? Could network sharing reshape the future of 5G development across Europe—and will it strike the right balance between competition and collaboration? Share your views in the comments below.
