FibreConnect receives €50 million from the EIB for the development of fiber-optic technology infrastructure in Italy
June 24 2024 - 5:00AM
FibreConnect receives €50 million from the EIB for the development
of fiber-optic technology infrastructure in Italy
FibreConnect, an independent, wholesale-only,
operator that offers high-performance connectivity services for
businesses in Italy's Industrial and Artisanal Areas,
has
signed a €50 million financing agreement with the European
Investment Bank.
The goal is rolling out fiber optics
network in Italian Industrial areas, land plot identified by
municipalities as location of manufacturing activities.
The telecom infrastructure is a key element in fostering the
country's 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 EIB's support is an acknowledgement
of FibreConnect’s business model, which partners with
territory-based internet service providers (ISP) to develop the
network, guaranteeing a revenue share. Partners are identified
basing on market needs and, hence, business demand for
services. 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 EIB's support demonstrates the relevance of
our project for Italy's development and the digital transition of
the Country. 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. This is a unique approach for the
infrastructure sector in Italy and Europe” – Giovanni
Cialdino, CFO and Co-Founder of FibreConnect,
commented.
The new technological infrastructure is
a key element in fostering the country's digital transition
granting companies – especially SMEs – the proper technological
infrastructure to let their business grow. From the beginning of
2023 to date, FibreConnect had made optic fiber available to more
than 40,000 businesses located in 85 different Industrial and
Artisanal Areas (AIA) across Italy. In Italy there are
more than 14,000 business areas without enough digital services for
companies. 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. €7 billion) and the network coverage for
residential customers reached 54%, according to an analysis by
FibreConnect, in industrial and artisanal areas it is less than
20%. Italy ranks 18th among EU countries according to the Digital
Economy and Society Index 2022 (DESI), which summarises relevant
indicators on Europe's digital performance and tracks the evolution
of EU member states in digital competitiveness. Although between
2017 and 2022, Italy's score increased from 28.2 to 49.3, recording
the most significant progress in the EU, it remains below the
European average (52.3), such as Spain (60.8), France (53.3) and
Germany (52.9).
FibreConnect was born in 2022 from the intuition
of experienced professionals who have been working in the ICT
industry for many years and who decided to start an entrepreneurial
activity, with a unique business model, to enable the innovation
capacity of small and medium-sized Italian companies in the Italian
Industrial and Artisanal Areas. The model involves cooperation with
Internet Service Providers (ISPs) and a focus on meeting customer
needs through a network architecture that enables the delivery of
top-quality services. Thanks to FibreConnect, within four years,
hundreds of Italian Industrial and Artisanal Areas will be
interconnected to the main national Internet Exchange Points and
Data Centres.
Press contact - Marco Pedrazzini, +393470369222,
mpedrazzini@webershandwickitalia.it