The Italian government is pushing to merge the assets of Open Fiber and FiberCop to create a state-controlled wholesale telecommunications network.

To accelerate the rollout of a European Union-funded broadband network plan, Italy is considering reallocating some of Open Fiber's responsibilities to FiberCop, which has expressed readiness to take on the tasks at cost price.

However, negotiations between the two companies have proven challenging, particularly regarding the feasibility of a quick transition and ensuring a fair valuation of Open Fiber's assets.

A senior official from Prime Minister Giorgia Meloni's office has emphasized the urgency for the companies to reach a consensus, as time is running out for the rollout.

Current data shows that only about half of the targeted buildings have been upgraded, with Open Fiber lagging behind FiberCop in progress despite being responsible for deployment in 2.2 million buildings.

This slow progress is concerning, as Italy's broadband coverage is notably behind the EU average, with only approximately 60% of households accessing ultra-fast internet compared to the EU average of 79%.

The initiative aims to upgrade more than 3 million buildings across Italy by the end of June 2026, as part of a 3.4 billion euro ($3.9 billion) program for ultra-fast broadband.

Italy's government is urging both telecom firms to expedite their work on this broadband network plan, but negotiations are stalling due to disagreements over terms.

Open Fiber's board is set to discuss the situation, but the likelihood of reaching an agreement to transfer areas to FiberCop remains low at this time.

Open Fiber is primarily owned by the state lender CDP and Australian fund Macquarie, while FiberCop was spun off from Telecom Italia and sold to a KKR-led consortium.

As the deadline approaches, the urgency for a resolution becomes increasingly critical to enhance Italy's broadband infrastructure.

The outcome of these negotiations will significantly impact the future of Italy's telecommunications landscape.