Published by Global Banking & Finance Review®
Posted on November 18, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleItaly may extend 5G licenses with reduced costs tied to investment pledges, addressing telecom revenue challenges and promoting network upgrades.
MILAN (Reuters) -Italy is considering extending 5G licences while limiting costs for operators in return for investment pledges, a cabinet undersecretary said on Tuesday, as the telecom sector contends with falling revenue and lower margins.
Telecoms operators are lobbying for a free extension of their 10-year licences after Italy raised 6.5 billion euros ($7.5 billion) from a 5G mobile auction in 2018 that drew ferocious bidding.
"The renewal cannot be automatic, but you know I’ve long been one of the strongest supporters of avoiding a cash-driven approach in favour of clear investment commitments,” Alessio Butti said at a business conference in Rome.
Italian telecoms operators are expected to ramp up spending in the coming years to upgrade 5G mobile networks, delivering faster speeds and enabling a wide range of AI-driven applications for businesses.
Butti said that the government is working on several options that will be discussed with national telecoms regulator AGCOM.
"The 2018 auction was disastrous, with operators caught in a bidding spiral. As a result, they were left without resources to invest," said Butti, who oversees innovation and digital transformation policies.
Revenue at Italian telecoms operators has dropped by nearly a third since 2010 while cash generation after investment has collapsed to zero from 10.5 billion euros that year, according to data from industry lobby Asstel.
($1 = 0.8625 euros)
(Reporting by Elvira PollinaEditing by David Goodman)
Investment pledges are commitments made by companies or individuals to invest a certain amount of money in a project or initiative, often in exchange for benefits like reduced costs or extended licenses.
Telecom revenue refers to the income generated by telecommunications companies from providing services such as voice calls, data transmission, and other communication services to consumers and businesses.
AI-driven applications are software solutions that utilize artificial intelligence technologies to perform tasks, analyze data, and enhance user experiences, often leading to increased efficiency and innovation.
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