New fund shores up delayed broadband expansion

Following a meeting of its National Recovery and Resilience Plan (PNRR) steering committee, Italy's government has unveiled fresh measures designed to reinforce the Gigabit Italy plan, which aims to deliver ultra-broadband access across the entire nation. The Cabina di Regia, chaired by Prime Minister Giorgia Meloni, approved the measures on 26 September, introducing financial tools meant to guarantee delivery of the Italy at 1 Giga project—a cornerstone digital initiative under the PNRR framework. These changes are part of a wider restructuring of Italy's €194.4 billion PNRR allocation, undertaken to satisfy European Commission demands before the 2026 deadline for NextGenerationEU disbursements.

The centerpiece of the new approach is the establishment of a National Connectivity Fund, which will channel resources toward additional procurement rounds in so-called grey areas where broadband gaps persist. Operating as an independent financial mechanism in accordance with Commission guidance, the fund is intended to guarantee that the 1 Giga objective is achieved nationwide, even in regions where commercial viability is limited. The steering committee, comprising government ministers and officials from regional and municipal bodies, reaffirmed that protecting broadband spending ranked among the government's top priorities, alongside student housing and water systems as areas warranting dedicated financial backing.

Launched in 2021, the Italy at 1 Giga scheme represents a flagship undertaking within the PNRR's digital transformation pillar. The initiative offers financial support to network operators deploying gigabit-capable infrastructure in underserved regions. Implementation setbacks and operational hurdles had sparked anxiety regarding whether the project could be finished by the 31 August 2026 target set by Brussels.

Resource reallocation and implementation progress

The fresh fund is designed to reduce these dangers by enabling greater financial adaptability and sustained funding. Per CorCom reporting, the restructured broadband measures encompass redirecting roughly €700 million in unspent funds from the Italia a 1 Giga initiative to finance new coverage procurement, allocating €95 million to enhance satellite backhaul infrastructure in sparsely populated zones, and dedicating €50 million to expand broadband subsidy programmes.

The PNRR revision endorsed by the Cabina di Regia also noted that 34 measures spanning multiple government departments would undergo financial rebalancing to optimise the uptake of European funding. Government figures indicate that Italy has fulfilled 334 out of 614 milestones and targets (54.4%), and has drawn approximately €140 billion—roughly 72% of its PNRR entitlement—a performance level the government asserts surpasses the EU median of approximately 38% for milestones accomplished.

For the telecommunications industry, the updated framework signals Italy's commitment to fulfilling its broadband targets despite adjustments elsewhere in the programme. The National Connectivity Fund will prove essential for bankrolling activities in the closing stages of the Italy at 1 Giga rollout, supplementing current procurement efforts and facilitating the path toward comprehensive digital access. The fund additionally serves as a safeguard against potential delays in implementation timelines, given the binding deadline of 31 August 2026 for milestone completion.

Parliamentary and Commission approval timeline

The revision will undergo parliamentary scrutiny on 30 September and 1 October before submission to the European Commission by 8 October. Preliminary approval is anticipated on 23 October, with final sign-off scheduled for the 13 November ECOFIN gathering. Upon approval, the revised Gigabit Italy plan will serve as the blueprint for Italy's concluding phase of ultra-broadband expansion, positioning the initiative to achieve nationwide gigabit-level connectivity in line with the EU's prescribed schedule.

Source: Mobile Europe