Italy’s government has created a new National Connectivity Fund to reallocate €700 million in savings from its delayed ultrafast broadband project
Italy’s government has agreed on a series of measures to strengthen its Gigabit Italy plan, aimed at ensuring nationwide access to ultra-broadband services, following the latest meeting of the National Recovery and Resilience Plan (PNRR) steering committee.
The review, endorsed on 26 September by the Cabina di Regia presided over by Prime Minister Giorgia Meloni, introduces new financial instruments to guarantee completion of the Italy at 1 Giga project, one of the key digital initiatives funded under the PNRR. The revision forms part of the broader reshaping of Italy’s €194.4 billion PNRR package to meet the European Commission’s requirements ahead of the 2026 deadline for disbursement of NextGenerationEU funds.
Central to the new measures is the creation of a National Connectivity Fund, designed to secure resources for additional tenders covering so-called grey areas where coverage gaps remain. The fund will operate as a financial facility managed independently, in line with Commission guidance, ensuring that the 1 Giga target can be met nationwide even where market conditions are less favourable.
The steering committee, which included ministers and representatives from regional and local authorities, confirmed that safeguarding broadband investment was a priority, with digital connectivity placed alongside housing for students and water infrastructure in a small group of areas receiving dedicated financial instruments.
The Italy at 1 Giga scheme, initially launched in 2021, is one of the flagship projects under the digital transition component of the PNRR. It provides subsidies for operators to roll out gigabit-capable networks to underserved parts of the country. However, delays and challenges in implementation had raised concerns about completing the project by the 31 August 2026 milestone set by Brussels.
Mitigating risks
The new fund is intended to mitigate those risks by ensuring flexibility and continuity of financing. According to CorCom, the rebalanced measures for the broadband plan include reallocating about €700 million in savings from the Italia a 1 Giga plan to programme new coverage tenders, €95 million to strengthen satellite backhaul in low-density areas, and €50 million to bolster broadband voucher schemes.
The PNRR revision approved by the Cabina di Regia also confirmed that a total of 34 measures across different ministries would be rebalanced financially to maximise absorption of EU resources. According to government data, Italy has achieved 334 milestones and targets out of 614 (54.4%), and has received roughly €140 billion – about 72% of its PNRR allocation – a rate of implementation that the government claims is well ahead of the EU average of about 38% for milestones achieved.
For the telecoms sector, the revised plan definitely underlines Italy’s determination to meet its connectivity commitments despite broader adjustments elsewhere. The new National Connectivity Fund will be crucial for financing work in the final phase of the Italy at 1 Giga project, complementing existing tenders and supporting the transition to full digital inclusion. It will also provide a buffer against potential slippage in delivery schedules, given the hard deadline of 31 August 2026 for completion of milestones.
The proposal will now go to Parliament for debate on 30 September and 1 October before being formally submitted to the European Commission by 8 October. Preliminary approval is expected on 23 October, with a final decision scheduled for the 13 November ECOFIN meeting. If endorsed, the revised Gigabit Italy plan will become the foundation for the country’s last phase of ultra-broadband deployment, ensuring the project remains on track to deliver gigabit connectivity nationwide within the EU’s set timeframe.
