Italian towerco gets the new board in place and signals it can succeed in delivering the Roma 5G project being developed with Roma Capitale
Following its announcements June and July 2024, Italian towerco INWIT has finalised its purchase of an exclusive controlling share of 52.08% of the share capital of Smart City Roma. The deal was first announced in June when the towerco announced its take acquire the controlling share in what was formerly Boldyn Networks Smart City Roma, a project company previously 93% owned by Boldyn Networks Italia. Boldyn had literally only signed up for the smart city project six months before so its rapid exit – after signing a 25-year agreement with Roma Capitale – was quite the voltafaccia.
Boldyn Networks won the contract in August 2023, with the deal worth over €97 million, €20 million of which from public funds, as part of a public-private partnership agreement. Overall however, connecting up Italy’s capital has had several stops and starts over this years, with partners coming and going. For example, Roma5G launched in September 2017 by Roma Capitale with Fastweb and Ericsson.
Smart City Roma won the tender called by Roma Capitale for the Rome 5G project concession at the end of last year. The deal was finalised on 30 October 2024 following the go-ahead of the competent Authorities and fulfilment of the various conditions. The deal is structured in a way that the towerco has options to buy the remaining 48% or so which it said it may exercise after project testing, scheduled for July 2029.
Following the acquisition, Smart City Roma has a new board comprising: Andrew Peter McGrath as chairman; Michele Gamberini as chief executive officer; Antonino Ruggiero; Emilia Trudu; and Andrea Mondo.
The Rome 5G project is being developed in collaboration with Roma Capitale to help all operators in the sector provide 5G connectivity in all the main hubs of the city (metro lines, squares and streets).
Specifically, it plans to create digital and shared infrastructure to enable 4G and 5G cellular coverage on the A, B, B1, and C metro lines, in 100 city squares, on 98 neighbouring streets, and in seven public buildings of the Municipality of Rome (including the Campidoglio). This will also involve the installation of small cells according to the operators’ needs. The plan also provides for the installation of wi-fi in 100 squares, 2,000 cameras and IoT sensors. Earlier this year, the famous Piazza del Campidoglio (above) became the first square to get connected as part of the project.
INWIT said the transaction is part of its 2024-2026 business plan and is consistent with the strategy providing for “neutral host” investments to support the network plans of all telecommunications operators, aimed at enabling the growing demand for integrated macro-grid and micro-grid digital infrastructure, outdoor and indoor, especially in significant smart city projects.
Sticking to the plan
INWIT’s 2024-2026 business plan envisages revenues growing during the period at an annual average “high-single-digit” rate in the range of €1,160-1,240 million in 2026, with an expansion of the EBITDA margin to approximately 92% and of the EBITDAaL margin to around 76%. This growth in margins translates into an expansion of cash generation in the range of €720-740 million in 2026.
The plan also envisages investments for a total of around €800 million between 2024 and 2026, up approximately €150 million compared with that forecast at March 2023, concentrated in three main areas of intervention: the construction of new sites, the deployment of DAS indoor coverage and the purchase of land.