Frequency Trading Boost for Italian 3G Ops

date: April 23, 2002 - source: BWCS

The Italian government’s communications minister has announced plans to relax the rules on bandwidth trading among the country’s five 3G mobile licensees. Speaking to German financial newspaper Handelsblatt, minister Maurizio Gasparri confirmed his intention to allow operators to buy and sell frequencies from their competitors. Current legislation across much of the European Union forces any company with excess spectrum to return this to the government, but the Italian government is hoping to set a precedent which will be adopted by other EU countries; licensing authorities in the UK are already considering the introduction of similar legislation. In Germany, however, the regulator has stated on several occasions that licensees will not be able trade in frequencies.

The introduction of legislation allowing frequency trading would open up the way for struggling 3G companies to downsize their operations or even sell off their entire spectrum allocation rather than go out of business and see their frequencies returned to the government. Mergers between 3G concession holders would also be possible, with operators able to offload excess spectrum. Minister Gasparri says he intends to introduce the new law in Italy within the next few months and he will be campaigning for his EU counterparts to follow suit.

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