Telecom Italia reportedly bid more than €820 million for fibre company Metroweb, as it steps up plans to develop a national high-speed network in the face of increasing competition.

According to Reuters, Telecom Italia is ready to buy all of Metroweb, or a stake of 67.7 per cent, and is likely to compete with utility firm Enel for the deal, which is also readying its own offer.

Enel revealed in March it would invest €2.5 billion on building a national high-speed fibre network in Italy, a move which led to speculation that Telecom Italia would cut 15,000 jobs, which it has since denied.

Metroweb, which is seen as vital to the success of both company’s ambitions in broadband, is the Italian government’s vehicle for rolling out a national fibre network, and the state has in the past shunned bids for the company, preferring to opt for partnerships.

Telecom Italia has seen talks stall in the past, while Vodafone and Wind have also jointly attempted to strike a deal with the company, and even signed a letter of intent with Metroweb to jointly roll out fibre coverage in June.

However, in October, both F2i and CDP reportedly sent a letter to Telecom Italia, which set no limits to Telecom Italia’s possible stake in the company, meaning it could end up taking full ownership.

Telecom Italia made an all cash offer for the company after shelving plans to fund the acquisition by exchanging it for a stake in its wholesale business Sparkle, which was its original plan, as it failed to reach an agreement on how much Sparkle was worth, added sources.