Italy’s Digital Power Play!

A €700m subsea cable deal marks Italy’s latest move to reclaim control over vital digital infrastructure.

18 Apr 2025

Italy has taken control of one of Europe’s largest subsea cable networks, acquiring Sparkle for €700mn in a move aimed at strengthening national oversight of digital infrastructure.

The acquisition, signed on April 14, brings Sparkle under the control of Boost BidCo, a consortium led by Italy’s Ministry of Economy and Finance in partnership with telecom operator Retelit. Sparkle operates more than 600,000km of undersea cables, forming a significant part of Europe’s internet backbone.

Italian officials described the transaction as crucial for national security, citing rising cyber threats and growing concerns over geopolitical risks. “This ensures a key part of our digital backbone remains secure,” an official told local media.

The deal is expected to accelerate Retelit’s expansion by giving it immediate access to a global network that would have taken years to build organically. The company is set to become a more prominent player in international telecom markets.

Analysts suggest the acquisition marks the start of a broader shift in European telecom policy. “Italy is spearheading a European push for direct control over telecom infrastructure to guarantee security and resilience,” said Paolo Mancini, an industry analyst.

However, some market participants have raised concerns that increased state involvement could slow decision-making and reduce competition within the sector. To mitigate these risks, the agreement includes performance-based pricing mechanisms intended to balance government oversight with commercial efficiency.

The purchase reflects a growing European focus on digital sovereignty, with governments moving to secure control over critical communications infrastructure. Italy’s intervention may encourage other nations to follow suit as the continent reassesses its digital security strategies.