Wind and Fastweb sign agreement to share network infrastructure

AUGUST 12, 2009 -- Rival operators in Italy agree to share network infrastructure in order to address network costs.

AUGUST 12, 2009 -- Rival Italian telcos Wind and FASTWEB have signed a memorandum of understanding (MOU) regarding network sharing in Italy, specifically regarding local loop unbundled (LLU) exchanges and fiber-optic infrastructure. The aim of the agreement is to rationalize network costs following recent decisions on increased unbundling fees.

Both parties have indicated that as a result of the increase in unbundling fees applied by local fixed-line incumbent Telecom Italia, the alternative fixed-line operators are having difficulty in undertaking further investment in areas not directly covered by their networks, a situation that is "harmful to the development of competition in the fixed-line market." With this agreement, the two companies will make joint requests to Telecom Italia for the opening of access to unbundling.

The agreement also comprises the mutual transfer of usage rights of civil infrastructure, dark fiber, and other forms of transport capacity, such as base transceiver stations (BTSs).

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