Overview
Owners of Italy's two major telecommunications infrastructure companies - FiberCop and Open Fiber - are negotiating the parameters of a commercial agreement intended to accelerate the country's high-speed broadband rollout, according to multiple people familiar with the matter. The talks are framed around a government-supported scheme that stops short of an outright merger, which Rome and KKR had previously debated.
Stakeholder positions
FiberCop counts the Italian government and U.S. private equity firm KKR among its main investors following a 2024 partnership in a 19-billion-euro ($22 billion) buyout, a transaction identified as KKR's largest in Europe. Open Fiber is majority controlled by the Italian state through state lender CDP, with Australia’s Macquarie as a co-investor.
The discussions reflect a shift in tone after earlier conflicts between Italy and KKR over proposed merger plans between FiberCop and Open Fiber, which had been complicated by disagreements on valuation and debt ratings. Participants in the current talks say Rome has acknowledged that conditions are not presently conducive to a merger and has instead encouraged the parties to pursue alternative measures to further the broadband rollout without duplicating expensive investments.
Proposed commercial scheme
Under the government-sponsored option being examined, KKR-backed FiberCop would take responsibility for building fibre infrastructure across most of the so-called 'grey' areas - locations that lack ultra-fast broadband but are not slated for public subsidies. Open Fiber would continue to operate as the sole full-fibre provider in subsidised remote areas. The two operators would provide each other with access to their respective networks to enable broader service availability, according to the sources.
The companies would remain direct competitors in the most commercially lucrative zones where both already run rival fibre networks. The participants cautioned that the arrangement remains subject to change and that any final agreement could prompt antitrust authorities to require remedies in certain targeted areas to preserve competition.
Official responses and ownership
KKR, Macquarie, CDP, FiberCop and Open Fiber all declined to comment. Italy directly holds a 16% stake in FiberCop and, through CDP, controls 60% of Open Fiber.
Market context
Despite recent improvements, Italy still lags the European average in full-fibre coverage. Digital consultancy iDate estimates that roughly 70% of Italian households are passed by full-fibre infrastructure, while customer take-up sits at approximately 30%.
Implications
The talks aim to strike a balance between accelerating network deployment and avoiding the cost inefficiencies of parallel infrastructure. They also reflect ongoing sensitivities around valuation, debt profiles and regulatory approval that have complicated previous efforts to consolidate operators.
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