What does the text of the National Recovery and Resilience Plan provide for Ultra-Broadband, Digitalization, and Innovation.

PNRR, the Draghi Government's Plan to overcome the crisis triggered by the pandemic: an opportunity to restart. However, resources must be invested in a targeted manner.

18.7% of the total funds from the PNRR are allocated to incentives and tax credits for businesses: what are the opportunities for Proximity Operators, ISP, and WISP?

Let's find out in this in-depth analysis.

The 5 most important opportunities for ISPs

The main opportunities for Proximity Internet Services are in Mission 1 Component 2 of the PNRR, which focuses on digitalization, innovation, and competitiveness in the productive sector.

There are five planned investments, on which Operators in particular can seize various opportunities.

Transition 4.0 (Investment 1)

The transition to Industry 4.0 (Research, Development, and Innovation in areas such as IoT sensors and the automation of production processes) is one of the fundamental components of the future of business. 

The PNRR includes:

• The expansion of potentially beneficiary enterprises;
• Recognition of credit for investments throughout the 2021-2022 biennium;
• Extension of eligible intangible investments, thanks to the increase in credit percentages and the maximum amounts of incentivized investments.

Specifically, the tax credit is reserved for companies that invest in:

• Capital goods, tangible and intangible, related to the digital transformation of production processes;
• Research and development;
• Digitalization training.

Not only tax credits: resources can also be allocated to the retraining of managers through specific training programs and to the continuous training of workers on furlough, incentivized by the reduction of the tax wedge.

High Technological Value (Investment 2)

Investments in machinery, plants, equipment for cutting-edge productions and ICT are part of this second investment of the PNRR, which aims to modernize the manufacturing and export-oriented sectors, which have always been the backbone of the Italian economy.

This line is complementary to the measures of the Piano Transizione 4.0.

Ultra-broadband and 5G (Investment 3)

Among the most interesting investments for Providers, for obvious reasons, is the development of a fixed and mobile Very High Capacity Network infrastructure. It is from this infrastructure, in fact, that other types of previously mentioned investments, such as the Internet of Things, also depend. It is a so-called General Purpose Technology, capable of triggering cascading improvements in productivity and further growth across all sectors of the economy.

In this context, investments are planned to reduce the well-known Digital Divide, namely the percentage of households and businesses still not covered by an ultra-fast connection: Italy, according to the latest DESI index, ranks 17th out of 28 countries in Europe for household coverage rate.

Satellites and Space (Investment 4)

Space research has also now earned a role as a strategic activity for the economic development of the entire country. The PNRR specifically foresees improvements in these areas:

• Satellite communications
• Monitoring of territories through enhanced observation systems
• Strengthening skills in the Space Economy sector
• Access to Space
• In-Orbit Economy
• Downstream

Internationalization (Investment 5)

Another key objective of the PNRR is the Internationalization of SMEs: foreign markets, including the countries of the European Union, have always represented an important outlet market for Italian companies.

In the sub-measure of refinancing and redefining the Fund 394/81, managed by SIMEST (Società Italiana per le imprese Miste all'Estero), grants and subsidized loans are provided for Italian Small and Medium Enterprises, with the aim of improving their competitiveness in terms of innovation and sustainability. 

Among the most interesting insights for the TLC world are the development opportunities in e-commerce.

Would you like to know more about the PNRR? APRO2021, the annual national event of Assoprovider, was focused precisely on the Government Plan. You can review the entire live stream at this link.