Telecom Italia shares are falling like an uncertain cloud project

MILAN (Reuters) – Shares in Telecom Italia fell 5% on Friday, with traders in Milan announcing uncertainty over Italy’s single broadband network project following recent ministerial comments.

Rome has been trying to create a national network by merging Open Fiber, a small broadband operator owned by state lender CDP and utility Enel, with landline grid funding Telecom Italia ( Former TIM).

But the plan, for which TIM and CDP struck a start-up contract last year, was not finalized as talks between parties ceased.

“There is different news and some confusion about the single network project,” said one trader.

TIM was the main loss on the Italian blue index, down 4.67% at 0900 GMT.

Industry Minister Giancarlo Giorgetti said on Wednesday that Italy would review a single government-planned single broadband network project to ensure it was feasible, adding that it would only make sense if the network was under state control.

Innovation minister Vittorio Colao called on Thursday for the situation to be resolved as soon as possible so that they do not keep up with the broadband rollout plan.

He also said that the government was considering other options to ensure superfast broadband connection across the whole country by 2026.

(Narrated by Giancarlo Navach and Elvira Pollina. Written by Giulia Segreti. Ediitng by Mark Potter)