Italy’s Open Fiber Lenders Pick Adviser Amid €2 Billion Fund Gap
Italy’s Open Fiber lenders have chosen an adviser to help them fill a €2 billion ($2.4 billion) funding gap, as the country’s government-backed broadband network seeks to expand its reach.
Open Fiber’s Expansion Plans
Open Fiber, a joint venture between state-controlled utility Enel SpA and state lender Cassa Depositi e Prestiti, is aiming to build a fiber-optic network that will provide high-speed internet access to the entire country. The company has already connected more than 5 million households and businesses to its network, and is now looking to expand its reach to cover the entire country.
The company has already secured €3 billion in funding from the European Investment Bank and other lenders, but it needs an additional €2 billion to complete its expansion plans.
Adviser Selected to Help Secure Funding
To help secure the additional funding, Open Fiber has chosen Rothschild & Co. as its financial adviser. Rothschild & Co. will be responsible for helping the company secure the additional €2 billion in funding, as well as helping it to structure the financing.
The company is also looking to raise additional funds through the sale of bonds and other debt instruments. It is also considering the possibility of selling a stake in the company to a strategic investor.
Open Fiber’s Impact on Italy’s Broadband Market
Open Fiber’s expansion plans are expected to have a major impact on Italy’s broadband market. The company is aiming to provide high-speed internet access to the entire country, which will make it easier for businesses and consumers to access the internet.
The company is also looking to reduce the cost of broadband access in Italy. Currently, broadband access in Italy is among the most expensive in Europe, and Open Fiber is hoping to reduce the cost of access by providing a more competitive market.
Open Fiber’s Challenges
Open Fiber faces several challenges in its expansion plans. The company is facing opposition from some of Italy’s incumbent telecom operators, who are concerned that Open Fiber’s expansion plans will hurt their businesses.
The company is also facing regulatory challenges. Italy’s telecom regulator, Agcom, has proposed a number of measures that could limit Open Fiber’s ability to expand its network. These measures include limits on the amount of spectrum that Open Fiber can use, as well as limits on the amount of infrastructure that the company can build.
Open Fiber’s Future
Despite the challenges, Open Fiber is confident that it can secure the additional funding it needs to complete its expansion plans. The company is also confident that it can overcome the regulatory challenges it is facing.
If Open Fiber is successful in its expansion plans, it could have a major impact on Italy’s broadband market. The company’s plans could lead to lower prices for broadband access, as well as improved access to high-speed internet for businesses and consumers.