Shares in Telecom Italia drop as uncertainty clouds single network project

Shares in Telecom Italia (MI:TLIT) fell 5% with traders in Milan citing uncertainty over the single broadband network project after comments in past days by ministers in the government led by Mario Draghi.

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 (MI:ENEI), with the landline grid assets of former phone monopoly Telecom Italia (TIM).

But the plan, for which TIM and CDP struck a preliminary accord last year, has not been finalised yet as negotiations between parties stalled.

“There is contrasting news and a bit of confusion regarding the single-network project,” a Milan-based trader said.