Italian telecoms operators Wednesday signed a memorandum of understanding, or MOU, for the creation of a new company to build a high-speed broadband infrastructure, Industry Minister Paolo Romani said in a press conference.

Romani added 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 (TI), Fastweb SpA (FWB.MI), Wind SpA, Vodafone (VOD) Italia, Tiscali SpA (TIS.MI), BT Group PLC's (BT) Italian unit, and 3 Italia.

The Italian government and the main telecoms operators have long debated the best way to expand access to high-speed broadband across the country, as Italy lags the rest of Europe in broadband penetration.

The new company, which will be based on 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 Wednesday 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 welcomed the agreement among the operators saying it will contribute to the relaunch of broadband in Italy.

Fastweb's board member Stefano Parisi said 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.

-By Giada Zampano, Dow Jones Newswires, and Carlo Renda, MF-Dow Jones; +39 06 69766925; djitaly@dowjones.com
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