On December 31, 2024, Swisscom successfully closed its acquisition of Vodafone Italia, officially launching the integration with Fastweb to create Fastweb + Vodafone, the leading convergent telecommunications operator in Italy. This new entity will combine the strengths of both companies, aiming to drive innovation and improve service quality for millions of customers.
The merger signifies the culmination of strategic maneuvers, originally announced in March 2024 for 8 billion euros. With over 20 million mobile lines and 5.6 million fixed lines, Fastweb + Vodafone intends to revolutionize the Italian telecommunications sector by offering integrated services at competitive prices to families, businesses, and public administrations.
Walter Renna, CEO of Fastweb + Vodafone, stated, "With the official closing, the most significant consolidation operation in recent years within the Italian telecommunications market is completed. Starting from the next few days, we will work on integrating the two companies, unlocking their potential to provide even more innovative and high-performance services to customers across all market segments.”
The newly formed company will also benefit from significant economies of scale, with anticipated annual synergies of around 600 million euros, enabling continued investment in infrastructure and technology. This integration is projected to lead to enhanced service offerings, as outlined by the new corporate strategy.
Fastweb + Vodafone will maintain the existing commercial brands: Fastweb, Vodafone, and ho., which will continue to be used operationally to retain customer loyalty. This decision reflects the commitment to preserving established brand identities, all the whilst maximizing the positives from the merger.
A key aspect of the merger involves the management structure, with all operational leadership drawn from both Fastweb and Vodafone. The executive committee includes notable figures such as Anita Carra (Chief Brand & B2C Marketing Officer) and Fabrizio Casati (Chief Wholesale Officer). Their diverse backgrounds are expected to facilitate the seamless integration of operations and corporate culture.
Christoph Aeschlimann, CEO of Swisscom, expressed satisfaction with the completion of the acquisition, emphasizing its long-term benefits for stakeholders. “The improved positioning in Italy will generate long-term value for all stakeholders, increasing cash flows and dividends moving forward,” he remarked.
Customer experience will remain unchanged during the transition, as no immediate changes to contracts or service conditions are anticipated. Customers from both existing brands will continue to use their services as they have been. “All existing contracts, including the current economic conditions, will remain unchanged. Any future modifications will be communicated transparently and timely,” said sources from the new entity.
To maintain high service quality, Fastweb + Vodafone plans to gradually migrate Fastweb mobile services to the Vodafone infrastructure, which is now under its ownership. This migration is expected to improve overall service performance without requiring customers to change physical SIM cards.
Fastweb + Vodafone will operate with the largest telecom infrastructure market share, controlling over 20,000 mobile sites and owning 74,000 kilometers of fixed network, with a substantial portion able to support fiber connections. The company aims to lead the digitization process across Italy, ensuring competitiveness and high-quality telecommunications services.
According to recent data from the Italian telecommunications authority (AGCOM), the combined market share for Fastweb + Vodafone is 30.1%, surpassing competitors such as TIM and Wind Tre. This solidifies the new operator’s significant presence and fosters increased competition within the industry.
Swisscom's financial outlook has been recalibrated due to the integration costs associated with the acquisition, projected at up to 200 million euros. Consequently, Swisscom revised its 2024 EBITDA expectations to between 4.3 and 4.4 billion Swiss francs, down from the previously estimated 4.5 to 4.6 billion.
Fastweb + Vodafone's goal is clear: to become the main point of reference for digital transition across all its customer segments. With dedicated service frameworks and plans for progressive innovations, the newly formed entity is charting its course for technological advancement and superior customer experiences in the telecommunications arena.
Moving forward, Fastweb + Vodafone aims to build on this foundation of stability and growth, focusing on infrastructure investments and continuous technological innovation, ensuring the best quality of service for Italian consumers and businesses. The phase of integration marks not just the joining of two corporate entities, but the emergence of a formidable player set to influence the future of telecoms in Italy.