To grow beyond its home market, Swisscom AG has offered to acquire Italian Internet company Fastweb SpA.
Government-owned Swisscom, Switzerland’s largest telephone company, has agreed to pay €3.7 billion (US$4.9 billion) for Fastweb, Italy’s second-largest provider of fixed-network services after incumbent telco Telecom Italia SpA, Swisscom said Monday.
Fastweb provides service to more than 1 million customers in 130 cities. The company was among the first in the world to launch a network based fully on IP (Internet Protocol) technology and offer “triple-play” bundled voice, video and broadband data services.
Swisscom called the move “a logical step” in the company’s strategy to grow its core broadband business and expand its customer base. Fastweb acknowledged receiving the offer and said it is interested, but hasn’t decided whether it will accept it.
The Swiss operator would also support Fastweb’s plan to establish itself in Italy as an MVNO (mobile virtual network operator) and launch a “quadruple-play” offering, it said.
The bid is the first major move abroad for Swisscom since the government imposed restrictions on foreign purchases in 2005, blocking a bid by the company for Ireland’s Eircom Group PLC.
The government’s strong hand led to the resignation of Swisscom Chief Executive Officer Jens Alder.
