The Italian Competition Authority (AGCM) has launched an investigation into a Flash Fiber, a FTTH joint venture between Telecom Italia (TIM) and Swisscom subsidiary Fastweb.
Flash Fiber, which was established by the two operators last July, plans to invest €1 billion to upgrade the broadband networks in 29 Italian cities from FTTC to FTTH technology.
The AGCM is looking into whether the JV, which unites the owners of the two biggest fibre broadband networks in Italy, will prevent, restrict or distort competition in the market.
TIM released a statement saying it would comply with the investigation and insisting that the JV had merit.
“TIM confirms that it has behaved correctly and the industrial project is valid, which enables the acceleration of the dissemination of FTTH services, in line with the objectives of the National Ultrabroadband Strategy, increasing competition and bringing about benefits for consumers,” the statement read.
Fastweb released a similar statement, which said it remained “convinced of the correctness of its actions and of the validity of the Flash Fiber industrial project”.
TIM unveiled a new strategy last week, which included a promise to expand its fibre network to reach 95 percent of the Italian population by the end of 2019.
It has just over one million fibre broadband subscribers, currently.
Fastweb saw revenues rise 3.4 percent to €1.8 billion in 2016, as the total number of broadband customers rose seven percent to 2.35 million.
Of these, 810,000 are signed up to fibre services.
Its fibre network passes 5.3 million premises with FTTC-based tech, and 2.2 million with FTTH.