Telecom Italia is forming a new joint venture designed to deliver next generation broadband to 150,000 homes in the province of Trento.
The telco has been approved as a 41.1% shareholder in Trentino NGN, a joint venture with the regional government, McLink and La Finanziaria Trentina that will pump €165 million into fiber rollout over the next decade. Shareholders in the firm approved Telecom Italia’s involvement on Friday, with its stake covered by it granting rights to use capacity on its current passive infrastructure in the region over the next 20 years – an agreement valued at €39.4 million.
Telecom Italia will take over the regional government’s 52.2% stake in Trentino NGN in three years, provided pre-agreed service penetration levels are achieved, and hand over control of its current copper network. McLink will maintain its current 1.6% stake – in which it has invested €1.5 million -, and La Finanziaria Trentina a 5.2% holding based on investment of €5 million.