Italy Operators Reach Technical Deal On Broadband Network

Italian telecoms operators have reached an agreement on technical aspects to build up a high-speed broadband network, paving the way to a final deal for the creation of a countrywide fiber-optic infrastructure.

In a statement, Deputy Minister for Communications Paolo Romani said Friday the telecom operators had agreed on the technical model for the transition to fiber from the current copper network, which may support different types of technologies.

Romani added that the next step will be a public consultation on existing fiber-optic infrastructure in Italy and investment plans to develop it.

The Italian government and the main telecoms operator have long debated the best way to expand access to high-speed broadband across the country, as Italy lags the rest of Europe in broadband penetration.

But questions over financing and former monopoly Telecom Italia SpA's (TI, TIT.MI) refusal to share control over its key fixed-line network have delayed Italy's broadband plans.

Romani said Friday a new meeting of telecom operators will be convened in two weeks to discuss plans for a combined private and public partnership to build the high-speed network needed to meet European goals on broadband access.

Italy's alternative operators Fastweb SpA (FWB.MI), Wind and Vodafone Italia earlier this year announced plans to jointly invest EUR2.5 billion over a five-year period to build fiber in Italy's 15 largest cities, covering about 10 million more people.

Telecom Italia has dismissed calls to join the rival broadband project and said it will push ahead with its own plans to offer 100 megabits per second broadband to 50% of the Italian population by 2018, pledging to invest EUR9 billion in its network infrastructure by 2012.

Plans for a coordinated effort on broadband faced a new setback last week when the alternative operators pulled out of a consultative body discussing fiber-optic plans, saying it did not adequately represent their opinions.

-By Giada Zampano, Dow Jones Newswires; [phone]; [e-mail]