The new entity, Zefiro Net, will enable them to share networks in rural areas
Iliad Italy and WindTre have finalised a joint venture called Zefiro Net to manage their shared mobile network infrastructure “less densely populated areas” of Italy. This includes 5G RAN equipment.
A statement from Iliad said that each partner will hold 50% share capital and that the shared networks, approved by the authorities, will cover 26.8% of Italy’s total population of about 59 million.
According to Iliad, this approach will speed the expansion of mobile telephone networks, including the provision of ultra-broadband services via 5G.
Zefiro Net now owns and will be responsible for the technical management of the physical infrastructure on behalf of the two operators.
Italian woes
Italy is a tough mobile market. The cut-price French operator Iliad had attracted 8.5 million subscribers since entering the market in May 2018 under the brand name Free. In February 2022 it tried to acquire Vodafone’s Italian opco for €11.25 billion with investment house Apax Partners. The offer was rebuffed despite Vodafone’s desire to consolidate assets.
In January 2022, Iliad entered the fixed broadband market in Italy, and in October 2022 stepped up its efforts, entering a deal with Fastweb (owned by Swisscom) to extend its fibre coverage. In November 2022, it reported Q3 increases of 18,000 new broadband subscribers and 261,000 new mobile ones.
WindTre is in a less happy situation. Its former CEO, Jeffrey Hedberg left in April 2022 having overseen an unfortunate downturn in the new operator’s fortunes: in December the merger of CK Hutchison’s Tre and Wind, formerly part of VEON, in December 2016 created the largest mobile operator in the country, with 31 million subscribers.
VEON sold its entire share in the company in September 2018. The two halves came under the single WindTre brand in March 2020.
Under new management
Ironically, Iliad’s entry into the market has contributed significantly to WindTre’s woes, as did a heavy reliance on ZTE kit after the US’ embargo of the Chinese firm and Italy’s many successful MVMOs. The reins were passed into the hands of Gianluca Corti, Chief Commercial officer and CTO Benoit Hanssen after Hedberg’s departure.
While it has stabilised its mobile subscriber base, revenues continued to fall – by 6% year on year for Q1 2022 – but were flat in Q2 which finished at the end of September.