As per Industry Minister, Paolo Romani, Italian telecoms operators have signed a memorandum of understanding (MOU) for the formation of a new company to build a high-speed broadband infrastructure.

According to Romani, the new company will be responsible for building a basic fiber-optic infrastructure, avoiding duplications and coordinating investments by Italy’s seven leading operators. The companies include Italy’s largest operator Telecom Italia SpA, Fastweb SpA, Wind SpA, Vodafone Italia, Tiscali SpA, BT Group PLC’s Italian unit, and 3 Italia.

The new company, which will be based on both public and private funds, will have an executive committee chaired by the Industry ministry and will include one representative from each of the seven telecoms operators. The committee will be in charge of defining the new company’s governance and business plan within the next three months.

Romani confirmed that state-controlled fund Cassa Depositi e Prestiti (CDP) will play a role in the new broadband infrastructure company, providing the company’s capital or loans.

Telecom Italia , Chief Executive Franco Bernabe has welcomed the agreement among the operators stating that it will contribute to the re-launch of broadband in Italy.

According to Fastweb’s board member Stefano Parisi, the new company was an important step forward, but added its success will be influenced by the action of Italy’s telecoms regulator AGCOM, which will have to set clear rules.