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TIM and Vodafone together for 5G: the official agreement arrives

TIM and Vodafone together for 5G: the official agreement arrives

TIM and Vodafone they decided to join forces for jointly develop the 5G infrastructure. An agreement that should help them implement this new technology more quickly, in the meantime expanding the geographical area concerned – currently limited to the cities of Milan and Rome – and reducing costs.

For Vodafone, the agreement will lead to the receipt of 2,140 million euros immediately, a figure that should then reach over 1 billion euros in the near future and which will help the company reduce its debt.

For TIM the financial effect of the expected synergies will be 800 million euros, an amount in addition to the 200 million euros deriving from the synergies for the new INWIT. The deleverage effect on debt is expected to decrease by over 1.4 billion euros over time.

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TIM and Vodafone together: what does the agreement envisage?

Ok, the partnership will bring some economic benefits to both of us, but what changes for users? First of all the two telephony giants will work together for identify the best technical and commercial methods for the joint installation of its 5G equipmentthus ensuring a wider and more widespread diffusion of technology. Instead, the management of frequencies and the control of the quality and functionality of its network will remain separate, an element that will allow both to compete on the market.

TIM and Vodafone will also share the active equipment of their respective existing 4G networks, so as to support active sharing of the 5G network, and will adapt mobile transmission networks to take advantage of 5G features such as higher speed and low latency.

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The two companies will also extend the agreement as well share passive infrastructures too, an important step to strengthen the development of 5G and use the network infrastructure more efficiently, both in urban and rural areas.