Swisscom says could take years to solve Italian tower dispute
Finance

Swisscom says could take years to solve Italian tower dispute

Published by Global Banking & Finance Review

Posted on May 7, 2026

2 min read

· Last updated: May 7, 2026

Add as preferred source on Google

Swisscom Expects Long Resolution to INWIT Tower Dispute Amid Vodafone Italia Merger

Swisscom's Tower Dispute and Vodafone Italia Integration

By Cian Muenster

Swisscom's Reliance on INWIT and Revenue Impact

May 7 (Reuters) - Telecoms company Swisscom said it could take around five years to end its reliance on Italian tower operator INWIT and reported a 4.5% fall in its first-quarter Italian revenue year-on-year.

Integration of Vodafone Italia

Meanwhile, it said it was working to speed up the integration of Vodafone Italia, which it acquired with effect from January last year.

Fastweb's Tower-Sharing Contract Challenges

Efforts have been complicated as Fastweb wants to exit its tower-sharing contract with Italian infrastructure company INWIT to migrate to a new arrangement with Telecom Italia, or TIM. INWIT says the contract runs until 2038 and said in March it planned legal action.

CEO's Statement on Migration Timeline

CEO Christoph Aeschlimann said on a conference call on Thursday that the migration away from INWIT would take about five years.

INWIT's Position and Migration Process

“INWIT has an interest to sustain revenues on their towers. So we do expect that we can accommodate the full duration of the migration with a good faith discussion of migrating those towers in due time, one by one,” he said.

Financial Impact and Future Cooperation

The group said in a statement that savings from the merger of its Italian unit Fastweb and Vodafone Italia reached 77 million euros ($90.65 million) in the first quarter of 2026, with a target of 300 million euros for the full year.

Plans for Mobile Network Development

The combined business will cooperate with Telecom Italia on mobile network development, complementing existing plans to develop and operate up to 6,000 mobile tower sites. 

($1 = 0.8494 euros)

(Reporting by Cian Muenster; editing by Barbara Lewis)

Key Takeaways

  • Fastweb+Vodafone (Swisscom) issued valid termination of INWIT Master Service Agreement, effective end‑March 2028, but INWIT contests validity arguing contract runs to 2038, escalating into legal dispute (swisscom.ch)
  • Swisscom CEO Christoph Aeschlimann indicates migrating towers will take around five years, reflecting complexity in restructuring infrastructure reliance (swisscom.ch)
  • First‑quarter 2026 Italian revenue dropped 4.5% YoY to €1.74 billion, offset by cost synergies from Fastweb‑Vodafone Italia integration—€77 million in Q1, targeting €300 million full‑year savings (swisscom.ch)

References

Frequently Asked Questions

Why could it take Swisscom five years to end its reliance on INWIT?
Due to contractual obligations and gradual migration of tower arrangements, Swisscom expects about five years to fully resolve its reliance on INWIT.
What challenges complicate Swisscom's integration with Vodafone Italia?
Efforts are complicated as Fastweb seeks to exit its tower-sharing contract with INWIT, which is under dispute and involves possible legal action.
How much did Swisscom's first-quarter Italian revenue fall year-on-year?
Swisscom reported a 4.5% decrease in its first-quarter Italian revenue compared to the previous year.
What are the financial targets after merging Fastweb and Vodafone Italia?
Swisscom aims for savings of 77 million euros in Q1 2026 and a total of 300 million euros for the full year after the Fastweb and Vodafone Italia merger.
How will the new combined business cooperate with Telecom Italia?
The merged unit plans to cooperate with Telecom Italia on mobile network development, including up to 6,000 tower sites.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category