Fastweb agrees to buy Tiscali Business

6 Dec 2016

Italian ISP Fastweb has agreed to acquire the enterprise business of its domestic rival Tiscali. Fastweb is paying EUR45 million (USD51 million) for the ‘Tiscali Business’ unit, made up of EUR25 million in cash plus EUR20 million in services, which includes giving Tiscali access to Fastweb’s fibre backbone and access networks. As part of the deal Fastweb has agreed to lease Tiscali’s 3.5GHz spectrum in major cities to enable it to provide mobile data services; the rental fee has been set at EUR2.5 million a year for the first five years.

Tiscali plans to concentrate on providing fixed-wireless time division duplex LTE (TD-LTE) services to consumer, SoHo and SME customers, particularly in areas poorly served by fixed infrastructure, while also using Fastweb’s fibre access networks to serve small businesses in more urban areas. Meanwhile, Fastweb is keen to expand its presence in the corporate sector and will also take over Tiscali’s framework contract which provides connectivity for the public sector. The agreement is subject to approval by Italian regulators.

Italy, Fastweb, Tiscali