MILAN (Reuters) - Italy's government sought to end a stalemate between telephone incumbent Telecom Italia (MI:TLIT) and fibre-optic rival Open Fiber over plans for a unified ultra-fast broadband network, by urging parties involved to find an accord quickly.
Telecom Italia (TIM) has been talking since last June with Open Fiber's owners - utility Enel (MI:ENEI) and state lender Cassa Depositi e Prestiti - on ways of combining their fibre broadband operations.
Sources familiar with the matter have told Reuters a deal has proven difficult to reach, prompting Telecom Italia to explore solutions with investment funds whose help it had sought to jointly buy Enel's stake in Open Fiber.
Economy Minister Roberto Gualtieri said in a statement on Wednesday an ultra-fast broadband network was a strategic asset for the country on which speedier progress was necessary.
"The government encourages constructive discussions among parties to set conditions to integrate existing assets and boost ... investments so as to meet expectations ... for the creation of an integrated infrastructure," he said.
Separately, in a newspaper interview on Wednesday, TIM Chairman Salvatore Rossi said it was key for the group to reach a solution on the unified fibre-network project quickly.
"A company such as TIM, which competes on the market, cannot wait for too long. A solution must be found rapidly," he said.
Rossi also said TIM should remain in charge of the combined network once a possible deal went through because of its maintenance and investment capabilities.