A disagreement is brewing between Italy’s state-backed investment bank CDP and Australian investment firm Macquarie regarding the future of their jointly owned telecom infrastructure company, Open Fiber. According to sources familiar with the situation, the conflict centers on how to proceed with the struggling fiber network operator, whose losses threaten to derail broader government plans for telecom consolidation.

Open Fiber, currently 60% owned by CDP and 40% by Macquarie, has been operating at a loss and recorded a deficit of €364 million last year. Despite its financial troubles, CDP remains committed to merging Open Fiber with FiberCop, the network unit of Telecom Italia, in hopes of creating a unified, wholesale-only national broadband provider. Such a merger aligns with the Italian government's ambition to retain public control over essential digital infrastructure.

Macquarie, however, holds a different view. The Australian firm, which invested €2.12 billion for its stake in 2021, believes that a merger with FiberCop would face regulatory hurdles from EU antitrust authorities. To ease approval, Macquarie has proposed carving out and selling Open Fiber’s most lucrative assets—its fiber networks in densely populated urban areas—arguing that this would prevent a monopoly and facilitate a smoother deal.

Sources indicate that Macquarie would be willing to acquire these high-value assets itself, but CDP is resisting the idea. CDP considers these urban networks the crown jewels of Open Fiber, not only crucial to the company’s valuation but also instrumental in strengthening its negotiating position in any potential deal with FiberCop. Analysts estimate these areas could be worth between €4 billion and €6 billion, including existing debt.

The proposed consolidation remains in its early stages. A final deal structure has yet to be agreed upon and could take up to a year to materialize. Any potential merger would also require approval from European competition regulators, who may insist that certain portions of the combined network be divested to maintain fair market conditions.

Meanwhile, CDP remains optimistic that Brussels may only require the sale of a small segment of Open Fiber’s network in major urban areas, rather than the large-scale spin-off Macquarie is proposing. With FiberCop previously valued at €18.8 billion—including €9 billion in debt—there is significant pressure to ensure that any merger preserves asset value and addresses regulatory concerns. Open Fiber, tasked by the government nearly a decade ago with nationwide fiber rollout, does not expect to achieve positive cash flow until 2028 at the earliest, further complicating the road ahead.