MILAN, June 24 (Reuters) - Italian broadband companyMetroweb is in talks with mobile phone operators Vodafone Italia and Wind, a unit of Russia's Vimpelcom, toextend a broadband commercial deal to other cities, two sourcesclose to the matter told Reuters.
"Metroweb has already a commercial agreement with Vodafoneand Wind covering Milan," one of them said. "It is verifying thepossibility of replicating the deal in other cities."
Metroweb, controlled by state-backed financing agency CassaDepositi e Prestiti (CDP) and infrastructure fund F2i, has aninvestment plan which aims to bring fiber optic cables to 30Italian cities.
To be economically viable, the investment plan needs toensure that there are enough clients to use the infrastructure.
Talks with the two mobile operators, however, have beenslowed by Telecom Italia's recent decision to spin-off itsfixed-line access network. Any deal with Vodafone and Wind isexpected to be finalised in the medium term.
The companies could not be reached for comment.
The spinoff, which could be completed in up to 18 months,could pave the way for a sale of a stake in the network companyto CDP. The second source said under the spinoff plan, Metrowebwould be incorporated into the new entity.
The board of Telecom Italia approved on May 30 a plan tohive off fixed-line network assets into a new company, a movethat could help it raise cash and that could trigger aregulatory overhaul.
Vodafone (VOD)
