Digital Italia moves into the post-PNRR era: following the roll-out of fibre, growth is now essential

The roll-out of ‘Italia a 1 Giga’ and ‘Italia 5G’ has been more bumpy. The initial plan had been designed to guarantee connections of at least 1 Gbps download and 200 Mbps upload in the ‘grey’ areas (where the market had partially failed) and ‘black’ areas (where competition was at its highest) that were still uncovered. The tender had divided the country between TIM-Fibercop, which was awarded seven lots, and Open Fiber, which had been awarded eight lots.

However, operational complexities have necessitated a review of the plan. Some of the targets have been rescheduled for 2030 and, for the properties not included, the National Connectivity Fund has been set up, covering 402,896 mandatory properties and up to 368,186 optional ones. Only Fibercop submitted a bid.

Italia 5G, too, has had to contend with bureaucratic and administrative hurdles. The first call for tenders for the fibre-optic connection of mobile radio sites received no bids. It was necessary to reduce the budget from 974 to 567 million euros and halve the number of areas to be covered, from 2,403 to 1,201. In the end, Inwit, together with TIM and Vodafone, was awarded all the lots.

“Italia is successfully continuing its infrastructure development, as evidenced by the figures in the Report on the State of the Digital Decade. Of course, there is still a long way to go, as standalone 5G coverage remains insufficient and the roll-out of fibre – although well advanced – needs a final push,” comments I-Com Vice-President Silvia Compagnucci, who adds that “the real crux of the matter, however, is the take-up of these networks and the development of the skills needed to maximise the benefits they offer and to ensure a competitive edge that is essential for the country’s economy”.

In the post-PNRR era, “it will now be necessary to consolidate an industrial transition that prioritises the capacity, quality and resilience of infrastructure, moving beyond the logic of geographical coverage alone”, warns Laura Di Raimondo, Director-General of Asstel. The challenge is to bring the networks to life. “We need to invest in the development and roll-out of digital services and, consequently, in innovation. This means promoting the roll-out of advanced 5G, high-performance gigabit networks, the cloud, artificial intelligence and cybersecurity solutions, thereby achieving the full digital transformation of businesses and the public sector.”

Operators have already invested an average of over seven billion a year over the last four years. But the sector continues to suffer from a chronic skills shortage. In the labour market, there is one ICT professional for every two vacancies, whilst over 222,000 job advertisements have been published in the sector in less than two years. And the energy issue remains unresolved: the wholesale cost of electricity in Italia has reached 119 euros per megawatt-hour, up to 80 euros more than in France.

The NRRP has raised the country’s digital baseline. But a network alone is not enough to bring about transformation. We need demand, services, STEM skills, lifelong learning and stable regulations. This is the real test once European funding comes to an end.