Small and Medium Enterprises (SMEs) Competition Towards Gigabit Society: A Tussle for Super-Fast Internet Access

Tackling the Digital Divide: A Peek into Italy's SME Landscape

Small and Medium Enterprises (SMEs) Competition Towards Gigabit Society: A Tussle for Super-Fast Internet Access

Welcome to the beating heart of Italy’s economy, where small and medium-sized enterprises (SMEs) are burning the midnight oil in the digital transformation race. Sadly, their speed isn't always akin to a speeding bullet train. While we've obsessed over the rollout of fiber optics for about ten years now (with Open Fiber entering the scene during the Renzi government's reign as a game-changer), it’s feared that the looming technological revolution could leave behind those who need to catch up the most.

The Brick and Mortar of the Gigabit Society

Over the past decade, Italy has been busily investing - with substantial public funds - in the development of Ftth (Fiber to the Home) networks, the primary infrastructure that would pave the way for the Gigabit Society envisioned at the European level. However, a joint study by Agcom and the Digital Innovation Observatory of the School of Management at the Politecnico di Milano has unveiled a disappointing statistic: while over 59% of Italian homes now boast Ftth coverage, only 49% of SMEs can claim the same. This figure is concerning considering these businesses significantly impact the national economy.

The paradox escalates further when we consider availability versus usage. Only slightly over 20% of Italian SMEs have adopted connections of at least 1 Gbps. Copper, the relic of bygone telephone networks, is still stubbornly hanging on, while fiber - fast, stable, and low-latency - struggles to truly enter business processes.

Regional Differences: Digital Cities vs. Dark Corners

The joint study by Agcom and the Politecnico di Milano reveals an even more intricate situation as we pan out on a territorial level. Italy’s map of digital SMEs is a mosaic of contrasts - from Prato, Milan, Genoa, and Trieste, which shine like beacons of progress with Ftth coverage percentages over 70%, to Oristano, South Sardinia, and Bolzano, where broadband remains a distant dream and connections struggle below 30 Mbit/s.

But it's not merely geography that's at play, nor a North-South tug-of-war. While regions like Lombardy, Lazio, and Campania - with high entrepreneurial density - show good coverage levels (over 58%), we even find Molise and Sicily thriving positively. Conversely, regions like Valle d'Aosta, Marche, and Basilicata trail far behind.

Leave No SME Behind

While there's progress to be celebrated, it's a double-edged sword. Regional disparities and specific barriers to SMEs' adoption of high-speed internet persist as significant challenges. Bridging the digital divide will prove crucial for ensuring a level playing field in Italy’s digital development.

1. The finance sector must consider the existing digital disparities among Italy's SMEs, particularly in the areas where high-speed internet adoption is low, to invest in equalizing access and ensuring every business has the opportunity to partake in the technological advancements of the Gigabit Society.
2. As regional differences exist in the adoption of fiber-optic connections for Italy's SMEs, it's essential for businesses within the technology industry to collaborate with regional authorities and provide targeted solutions, making technology accessible and affordable for SMEs in less developed areas and ensuring no SME is left behind in the digital race.

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