The Italian telecommunications authority has given the green light, officially creating the NewCo Fastweb + Vodafone. Discover the details of the merger, the financial figures, and what’s changing in the Italian telecommunications market in this article.
Swisscom, the leading telecommunications operator in Switzerland and majority-owned by the Swiss Confederation, strengthens its presence in the neighboring Italian market by finalizing the M&A between Vodafone and its subsidiary Fastweb.
In brief, here’s what we can tell you:
The merger was completed on 31/12 after receiving approval from the Italian government and the European Commission.
The acquisition cost €8 billion.
The NewCo will initially be named Fastweb + Vodafone, and the board will include executives from Swisscom, Fastweb, and Vodafone Italy.
For the next year, the three brands (Fastweb, Vodafone, and Ho. Mobile) will coexist.
Financial Details of the Vodafone Italy Acquisition
The sale agreement for Vodafone Italy was finalized with Vodafone Group for €8 billion, covering 100% of the shares. Excluded from this deal are Vodafone's IoT division, which remains under the British group’s control, and the management of multinational customers under the VGE division.
The acquisition and subsequent merger estimate €600 million in operational synergies, expected to have a neutral impact on Free Cash Flow in 2025 and a positive impact in 2026. This will result in an increased dividend per share starting in 2026, amounting to CHF 26 per share.
Fastweb + Vodafone Set to Become a Market Leader in Italy
The merger of these two operators will also lead to shared assets. Combined, the two infrastructures will create a giant controlling 20,000 mobile radio sites with comprehensive 5G coverage and 74,000 kilometers of fixed network infrastructure.
The customer base of the two operators includes 20 million mobile lines and 5.6 million fixed lines. This equates to a mobile market share of over 30%, positioning the NewCo as the market leader ahead of TIM. In broadband or ultra-broadband fixed-line services, the market share will exceed 29%, still behind TIM. However, for pure FTTH lines, the NewCo will lead the market with over 32% of fiber optic connections.
The New Fastweb + Vodafone Steering Committee
Walter Renna, the current CEO of Fastweb, has been appointed as the CEO of the new company.
The executive committee will also include the following representatives:
From Fastweb:
Fabrizio Casati (Wholesale)
Elenia Cerchi (Regulatory and Antitrust)
Lisa Di Feliciantonio (Communication & Sustainability)
Augusto Di Genova (B2B)
Federico Negri (B2B Commercial)
From Vodafone:
Anita Carra (Brand and B2C Marketing)
Silvia Cassano (HR)
Antonio Corda (Legal, Compliance, and Security)
Alessandro Magnino (Strategy and Transformation)
From Swisscom (interim appointments):
John de Keijzer (IT)
Mark Duesener (Technology)
Peter Grueter (CFO)
Changes for Customers
For now, it seems that Vodafone, Fastweb, and Ho. Mobile customers will not experience significant changes in the first year. Any billing adjustments or contractual migrations will be communicated in compliance with the applicable regulations.
For Ho. Mobile and Vodafone Italy customers, there’s hope for reduced roaming costs in Switzerland, similar to what Fastweb customers already enjoy. In the meantime, we recommend exploring prepaid SIM offers in Switzerland if you plan to visit for tourism.