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Broadband

Italian govt pressing Enel over single network plan - report

Tuesday 24 November 2020 | 09:39 CET | News
The Italian government has written to the board of utility giant Enel to urge it to resolve the possible sale of its stake in wholesale operator Open Fiber on an urgent basis in view of the strategic importance of creating a nationwide fibre-optic network, according to sources cited by Reuters. Open Fiber is jointly owned by state lender CDP and utility giant Enel, with the latter currently assessing a binding offer for its 50 percent stake in Open Fiber from Australian infrastructure fund Macquarie. In the letter, Italy’s economy and industry ministers said plans to create a unified broadband infrastructure independent of TIM and open equally to all market players were a matter of urgency that could not be delayed.

The government is keen to merge TIM’s landline grid with the fixed network assets of Open Fiber and has reportedly urged Macquarie to buy less than 50 percent of the latter to allow CDP to take control. “The terms of any sale must fit in with the government blueprint for creating a single network,” said a source, with others adding that CDP has asked to raise its stake to 60 percent, leaving Macquarie the option of acquiring the remaining 40 percent.

The project to create a nationwide entity called AccessCo open equally to all operators was put forward by CDP in August but faces numerous regulatory issues. Earlier this month, TIM CEO Luigi Gubitosi reiterated that the company was keen to kickstart the initiative. “We are ready to proceed, as soon as Open Fiber’s shareholders, I would say shareholder, takes a decision on the matter,” he said.


 



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Categories: Fixed
Companies: Open Fiber / Telecom Italia / TIM
Countries: Italy
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