In Catania 10 gbit Internet costs 35 euros/month and is available everywhere in the city and even in a big slice of the small towns around Catania. And indeed public incentives played a big role. But what I believe it is more interesting is that 1 gigabit was common like 10 years ago or even more. Infrastructure is a bit too important to be left to what the market believes will be profitable.

Btw the paradox I have is that my local lan is 1 gbit...

Interesting to read. I actually did not really looked into the rest of Italy's fibre build out state, but FWIW here in South Tyrol - basically the other end of the country - there's fully build out fibre access into every municipality since 2013. And basically every village (outside the cities most municipalities consist of a handful of villages here) got access a few years too, even the ones with sub 1k population.

Once you have 1Gbps Fiber it's not particularly hard to go to 25 if some other entity other than the Telco is covering the costs.