Italy’s biggest towerco has options to buy the other 49% of Boldyn Networks unit that won the contract to build wholesale 5G infra across Italy’s capital just six months ago
INWIT has formalised an agreement giving it the option to buy an exclusive, controlling share (51%) of Boldyn Networks Smart City Roma. INWIT is Italy’s largest towerco, which also builds and operates infrastructure for distributed antenna systems (DAS) and small cells, aka neutral host networks.
Boldyn Networks Smart City Roma was awarded the concession for the Roma #5G project at the end of last year. The project was a joint venture between the neutral host infrastructure specialist, and Roma Capitale, the city’s administrative authority and provider of public services.
Scale and scope
The project’s scope is to build 5G infrastructure in the city, available to all mobile operators on a wholesale basis. The public-private partnership comes with a 25-year concession for the construction, management, operation and maintenance of an infrastructure. Overall, the envisages more than €€90 million investment in the infrastructure over the next five years, part of which will come from the public sector.
The project includes: coverage of all metro lines; installation of more than 2200 small-cells; public Wi-Fi with 850 access points in 100 squares; installation of 1800 IoT sensors; and 2000 5G CCTV cameras.
The plan is to provide connectivity in all of Rome’s busiest locations, increase public safety and enable smart services for the city’s 3 million residents and more than 15 million tourists annually. This number of visitors is expected to rise to 32 million next year due to Jubilee 2025.
The infrastructure is intended to enable a range of digital services offered by Roma Capitale.
Importance of the Italian market
Boldyn Networks said at the time it entered into the arrangement for Networks Smart City Roma that it would be working “with all industry players for the benefit of all citizens and visitors to Rome” and that the project “represents the importance of the Italian market for the expansion of Boldyn’s presence in Europe”.
So why is it bailing out six months later? We’ve asked the question and will update if and when we receive a response.
The new agreement with Boldyn includes an option in favour of INWIT to acquire the remaining shares, under certain conditions, and a right of sale in favour of Boldyn Networks Italia, subject to certain conditions.
These options for the purchase of the other 49% of Boldyn Networks Smart City Roma could be acted on after the official test (or ‘collaudo’) of the project.
Consistent with strategy
INWIT said the agreement is consistent with its 2024-2026 business plan and strategy which envisages investments in neutral host infrastructure to support the network plans of telecommunications operators. It expects growing demand from its operator customers for integrated digital infrastructure, macro-grid and micro-grid, outdoor and indoor. The latter is particularly in significant smart city projects.
If INWIT actions all the options, the transaction is expected to close in the third quarter of 2024. This is subject to approvals from the relevant authorities and “to termination and suspensive conditions in line with market practices”.