In recent years, fiber optics has become synonymous with fast and reliable connectivity, an essential infrastructure for businesses in any industry. However, many people take it for granted that simply contacting an Internet service provider (ISP) is enough to get ultra broadband immediately. The reality is quite different: the availability of FTTH (Fiber to the Home) or FTTP networks, in the case of reaching businesses directly, is uneven across the country, and in many areas fiber optics is not yet a reality.
In this in-depth study, we explain why not all areas are covered and the key role of operators engaged in the deployment of new networks.
Market failure areas: why is fiber not (yet) available everywhere?
One of the main obstacles to the widespread deployment of ultrabroadband is the so-called “market failure areas.” These are areas of the country, often peripheral or with low population density, where private investment is not sufficiently profitable for telecommunications operators. In these contexts, the cost of deploying the fiber network far exceeds the potential revenues from user subscriptions, making it unprofitable for Internet Service Providers to expand the infrastructure without external incentives.
White area coverage: where do we stand?
The problem of market failure areas has been recognized by institutions, which have defined specific geographical areas as “white areas.” These are the areas where no private investment is planned for the deployment of ultrabroadband networks in the short term. To bridge the digital divide, the state has initiated public financing plans (the BUL plan) involving specialized operators in the deployment of fiber optic networks in these areas as well.
Thanks to these interventions, many areas previously excluded from ISP plans are gradually gaining access to state-of-the-art fiber optic connections. However, these interventions mainly affect residential areas, leaving behind areas dedicated to productive activities.
On this part of the territory and users, the Italian situation still lags behind other European countries. According to DESI 2024 data, which show FTTP coverage updated to 2023, Italy records fiber coverage of about 65 percent of business facilities. This value places it below the European Union average (75 percent) and significantly behind countries such as Spain, Romania and Portugal, which exceed 90 percent coverage. This gap highlights the need for further efforts to bring fiber to areas still unserved.
Furthermore, according to the State of the Digital Decade 2024 report, overall European FTTP coverage has reached 64 percent, with a target set at 100 percent by 2030. This shows significant room for improvement for the entire continent.
In how much time? The role of firms and municipalities
Even in areas where fiber is scheduled to arrive, infrastructure deployment is not immediate. In addition to investment, a number of bureaucratic and technical challenges must be addressed. Laying fiber requires permits from local governments, municipalities, and operators of existing infrastructure. Each municipality has its own regulations and timelines for issuing permits, which can result in long waits and slow down the work.
In addition, networks must be designed taking into account geographic and urban planning conditions, factors that can significantly affect implementation time. This means that, even in areas covered by expansion plans, the time required to achieve connectivity can vary significantly depending on local administrative processes.
Another critical issue is the role of specialized fiber-laying firms. These firms are essential for turning projects into reality, but the industry is facing a shortage of skilled labor, resulting in further slowdowns with respect to overall network deployment time.
The future of fiber optics: the need for continued commitment
Net of these “technical” delays with respect to the planned timetable, however, one thing remains certain: to ensure that ultrabroadband becomes truly accessible to all Italian businesses, it is critical that operators continue to invest in network expansion. Technologies are advancing rapidly, and the demand for low-latency, ultra-high-capacity connectivity is constantly growing. The success of business digitization will depend not only on the presence of fiber, but also on the quality of infrastructure and its ability to evolve over time.
Fiber is not a universal service like telephone
Taking fiber-optic access for granted is a mistake that can lead one to underestimate the challenges and efforts needed to ensure widespread coverage. Unlike traditional telephone utilities, whose infrastructure experienced rapid development in the second half of the last century, with ubiquity capable of reaching virtually every home and business, the ultrabroadband network is still in the process of expansion.
Deploying a nationwide FTTH network is a complex process, requiring investment, technical expertise and public-private collaboration. According to European Digital Progress data, overall coverage for 5G is currently at 89 percent, while for fiber broadband we are still at 64 percent, with the goal of reaching all homes and businesses by 2030.
Step by step, ultra broadband is becoming a concrete reality even in underserved areas. For Italian companies, this means new opportunities for growth and development, supported by connectivity that is up to the challenges of the future.