Italian state financing company Cassa Depositi e Prestiti (CDP) has agreed to inject up to €500m in a project designed to bring fibre optic to the nation’s major cities.
Media reports quoted Maurizio Tamagnini, CEO of CDP’s Italian Strategic…
Italian state financing company Cassa Depositi e Prestiti (CDP) has agreed to inject up to €500m in a project designed to bring fibre optic to the nation’s major cities.
Media reports quoted Maurizio Tamagnini, CEO of CDP’s Italian Strategic Fund (ISF), as saying at a recent press conference that the fund has decided to invest an initial €200m in Reti TLC, which controls fibre optic company Metroweb. In doing so, ISF will acquire a 46.2% stake in Reti, while infrastructure fund F2i will own the remainder.
Metroweb and F2i are spearheading a €4.5bn project designed to bring fibre optic to 30 Italian cities by 2017.
Tamagnini reportedly said at the conference that the ISF has an option to invest a further €300m in the project at a later stage.
FSI chairman Giovanni Gorno Tempini said other telecoms companies can join the project and that it is intended to be “in synergy” with Telecom Italia.
However, Bernstein Research commented in a recent report the development could negatively affect the Italian incumbent unless it decides to join forces with Metroweb. In this scenario, Bernstein said it would be in the best interests of Telecom Italia shareholders if the company chooses to spin off its wireline infrastructure.
Meanwhile, Telecom Italia has announced it has signed an agreement with Udine City Council that will see the two develop a new fibre optic network. According to a company statement, the parties intend the network to be operational within six months.
“The initiative is part of a national programme of fibre investment by Telecom Italia to realise a Next Generation Access Network (NGAN) which will reach 75% of the inhabitants of Italy’s biggest 100 towns over the next 30 months, and make a major contribution to meeting the European Digital Agenda objectives,” the company stated.
The ISF and Telecom Italia were not immediately available for comment.
