Italy clashes with ex-monopoly over future of phone network

Conte backs Telecom Italia’s (pic) plan to merge with its smaller rival Open Fiber SpA because it would avoid duplicate investments as Italy tries to close a gap in digital infrastructure that was laid bare by the coronavirus lockdown. However, his government wants Telecom Italia to give up control of the combined business to ensure competitors get fair and equal access to the national infrastructure. — Reuters

Italy’s drive to reassert control over its patchy broadband network has opened a conflict with the country’s largest telecommunications company, in the latest episode of state interventionism by Premier Giuseppe Conte’s government.

With Italy’s private sector reeling from the pandemic, Conte has pushed for a larger state role in the economy, giving the government more power to veto foreign investments and orchestrate state-backed takeovers in industries ranging from highways to the Milan stock exchange. The latest run-in with former state monopoly Telecom Italia SpA shows just how contentious this push can be.