Swisscom-owned telco Fastweb+Vodafone has informed Infrastrutture Wireless Italiane (Inwit) that it intends to terminate its Master Service Agreement (MSA) with the cell tower provider.

The timing of Fastweb+Vodafone's announcement comes a week after the carrier, along with Telecom Italia (TIM), announced plans to form a tower-focused joint venture in Italy.

The two telcos confirmed that a non-binding agreement has been signed for the development and management of up to 6,000 new mobile phone towers under the JV.

Following on from the JV agreement, Swisscom said that its MSA with Inwit in Italy will terminate at the end of March 2028, stating that Inwit's tower costs were too high.

The company noted that it will initiate talks with Inwit to agree on a migration plan that will span multiple years as per the provisions of the MSA and to ensure operational continuity until and after March 2028.

This plan will rely on agreements with third-party passive infrastructure providers and initiatives with Fastweb+Vodafone participation, stated Swisscom.

"The decision to terminate the MSA stems from Inwit's tower costs being above market level and its refusal to engage in formal negotiations to align with standard market conditions," said Fastweb+Vodafone. "Inwit’s above‑market prices reduce Fastweb + Vodafone’s ability to make the investments necessary to maintain high‑quality mobile networks and support Italy’s digitalization."

Inwit currently operates around 25,000 towers in the country, while reports suggest that TIM and Fastweb+Vodafone generate a large bulk of Inwit's €1 billion ($1.15bn) revenue.

According to the telco, the termination will enable Fastweb+Vodafone to fund the development of new infrastructure, bolster network coverage, and ramp up its 5G rollout.

The JV with Telecom Italia aims to accelerate their respective nationwide 5G rollouts. As part of this, TIM and Fastweb+Vodafone will share the infrastructure, while it will also be made available to third-party telecommunications operators on the basis of an open-access model.

The JV's ownership could potentially include third-party investors in the future, added the companies.