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Telecom Italia invests in alpine fibre
19 December 2011
Telecom Italia signs deal with Italy’s Trento province to build next-generation fibre optic network
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Telecom Italia
MCLink
Italy
Trento
Trentino
fibre
NGN
Telecom Italia is to build a fibre-based next generation network for the Alpine north Italian province of Trento in association with local broadband operator MCLink and investment company Finanziaria Trentina.
Franco Bernabè, chairman of Telecom Italia, said: “Migration to fixed and mobile ultra-broadband networks is a complex process that requires huge investments at a time of great economic distress and uncertainty of the demand.”
The deal encompasses fibre optic connection to around 60% of the province’s entire housing stock. The network will be built by a new company, Trentino NGN, which will have an initial capital of €96 million. The province will hold a 52% stake. Telecom Italia will contribute by allowing access to civil infrastructure for the fibre. McLink and Finanziaria Trentina will use cash to acquire their stakes. The project is expected to spend €165 million over the next 10 years to complete the project.
Telecom Italia would contribute its copper network in the capital city after the project reaches a certain penetration level. It also has an option to acquire the province’s stake in the company, to be exercised after six years for a sum equal to the investment made plus an annual interest rate of 7.5%.
Trento is an autonomous province in north-eastern Italy which, with the autonomous province of Bolzano, makes up the country’s Trentino-Alto Adige region.
Bernabè said: “Experimenting collaboration and co-investment models of the public and private sector can speed migration towards the next generation networks and Trentino NGN represents one of the first concrete examples of public private partnership in Europe.” GTB
Further reading from Global Telecoms Business:
Vodafone looks at stake in Italy's Metroweb 02 Dec 2011
Vivendi says no Telecom Italia stake 09 Nov 2011
3 Italia aims for LTE in 2012 08 Nov 2011
Five Italian operators to bid for 4G licences 28 Jul 2011
Focus on customers, not bankers, says Bernabè 30 Mar 2011