Neutral hosts such as INWIT will allow operators to share part of the access network, which will ensure better coverage and efficiency in terms of timing and development costs. The agreement will also significantly reduce the technological gap between the country`s major urban centres and rural areas. In this context, the Commission welcomed the decision taken by Telecom Italia and Vodafone (during the Commission`s review) to reduce their active sharing plans, leaving the most densely populated cities and centres of economic importance. This change has had the effect of increasing the areas (and the share of the Italian population) in which Telecom Italia and Vodafone will continue to compete for the quality of the network, while preserving the benefits of network use in other cities and towns as well as in rural areas. The Commission considered that these adjustments were sufficient to allay the fears raised by network-sharing agreements and to eliminate the need for further measures. The current agreement on the sharing of passive infrastructure is extended to national coverage in order to accelerate and promote the development of 5G technology and to make more efficient use of network infrastructure, both in urban and rural areas. Vodafone and TIM will enter into a three-year shareholder contract, including an initial three-year freeze and a point of non-compliance with their interests, unless otherwise agreed. The blockage provides that the contracting parties can, by mutual agreement, reduce their participation during this initial prohibition period, provided that a common minimum shareholding of more than 50% is maintained. Over time, Vodafone and TIM intend to reduce their stakes in INWIT from 37.5% to at least 25.0% (representing a potential revenue of more than 1 billion euros for Vodafone based on the 30-day VWAP and before the recapitalisation effect). Vodafone Italia and TIM have also extended their existing passive allocation agreement from approximately 10,000 sites today (approximately 45% of the combined passive towers of the contracting parties) to a national agreement. The goal is to accelerate and improve the use of 5G technology and make more efficient use of network infrastructure in urban and rural areas. “We are very pleased to announce this transaction, which will add value to all of our shareholders, INWIT stakeholders and the country as a whole. The agreement will create significant operational synergies and make the company`s financial structure much more efficient.

Through this agreement, INWIT will become the main M`D agreement in the history of the industry, the most important platform for mobile connections in Italy and a leading platform at European level. The tower connection is part of a wider agreement between TIM and Vodafone, which will see the development of the 5G network on economically difficult points; mainly in areas with fewer people. This will reduce the financial burden for both. And for Vodafone, the Italian agreement is only a segment of its entire mega-strategy for towers which, as we have mentioned several times in recent months, could bring in billions of euros. The agreement signed today will enable the new INWIT to achieve a turnover of more than 700 million euros under a long-term service contract. As a result, TIM and Vodafone`s total revenue will exceed 80% of total revenue, with more than 70% of master service agreements. While the TIM service contract has so far only 10,000 users, the new TIM-Vodafone agreement will have a total of more than 30,000 users.