Italian judges have this week rejected Italian infrastructure company Infrastrutture Wireless Italiane's (Inwit) efforts to suspend Telecom Italia (TIM) and Fastweb+Vodafone's withdrawal from tower lease agreements.
Both Italian carriers TIM and Fastweb+Vodafone informed Inwit earlier this year of plans to terminate their respective tower agreements with the company in quick succession.
TIM and Fastweb+Vodafone announced plans to form a tower-focused joint venture back in March, shortly before informing Inwit of their plans to terminate existing tower Master Service Agreements (MSA).
Fastweb+Vodafone was first to get on the bad side of Inwit, informing the tower company that it plans to terminate its tower agreement with the company from 2028. Days later, TIM followed suit, stating it would end the contract when it expires in August 2030.
Because of this, Inwit has become embroiled in a legal dispute with the two carriers. It's estimated that 85 percent of Inwit's €1 billion ($1.15bn) revenue comes from the MSA it has in place with the two telcos.
The company has hit out at the two carriers' plans, previously calling them "unlawful" and having "no legal grounds."
However, Inwit's challenge has been knocked back by Italian judges this week.
"Inwit expresses its firm and radical disagreement with the partial assessments formulated at this stage by the court, on a brief basis, regarding the complex matter submitted for its review," said Inwit in a statement.
"Indeed, the ruling has completely ignored the genesis of the MSA within the framework of the complex sale and leaseback transaction of the towers; likewise, it has ignored the concept of joint control over Inwit exercised by TIM and Vodafone, around which the entire transaction was structured, reaching the paradoxical conclusion that any transfer of corporate shareholdings could imply a change of control relevant to the overall duration of the relationship."
Inwit noted that it will continue its legal challenge against the decision via an appeal and will take its case against TIM and Fastweb+Vodafone to court.
TIM welcomed the judge's decision this week.
"The Court of Milan has rejected the application for interim relief filed by Inwit, confirming the lawfulness of the Group’s withdrawal from the Master Service Agreement (MSA)," stated TIM.
"In particular, in the order filed today, the judge found that the conditions for granting the interim measures sought by Inwit were not met, both in terms of admissibility and with respect to the requirements for such a decision."
Telecom Italia and Fastweb+Vodafone signed a non-binding agreement for the development and management of up to 6,000 new mobile phone towers under the planned JV.
Meanwhile, Inwit operates around 26,000 towers in Italy.
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