FibreConnect receives €50 million from the EIB for the development of fiber-optic technology infrastructure in Italy
Summary
The telecom infrastructure is a key element in fostering the countrys digital transition by covering businesses, especially small and medium-sized ones, that are based in areas not yet reached by the Internet access and not included in the National Recovery and Resilience Plan (PNRR) funding. Construction of the infrastructure began in 2023 and the project is scheduled for completion by 2027.The EIBs support is an acknowledgement of FibreConnects business model, which partners with territory-based internet service providers (ISP) to develop the network, guaranteeing a revenue share. In a landscape where the traditional infrastructure financing model - which relies on public incentives and regulatory schemes aimed at guaranteed returns - is coming under increased scrutiny, FibreConnect adopts an innovative approach that ensures that the funds raised are invested in the network and that the company focuses on areas where a strong market demand exists. The agreement is extremely relevant from a financial point of view: under our business model, we draw on financing when market demand exists, and such resources are used for infrastructure development. FibreConnect also activated the long-distance network consisting of around 4,000 km of optic fiber connecting 20 PoPs (Points of Presence) and the main national Internet Exchanges, equipped with very high-capacity transmission systems.Even though the PNRR planned significant investments (approx.