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Italians to Allow 3G Spectrum Trading

August 13, 2003 - source: BWCS

The Italian government of Silvio Berlusconi, ever keen to foster harmony and unity with their European colleagues, has decided to lift restrictions on 3G spectrum trading. The move will come as a welcome relief to Spanish operator Telefónica Moviles, which is keen to sell its Italian frequency as part of a process of “battening down the hatches” on the 3G front.

Telefónica, which has been steadily pulling back from its once mighty pan-European 3G ambitions, still owns 45.54% in the Italian Ipse 2000 consortium. Back in December 2000 Ispe, whose other stakeholders include Sonera, Atlanet, Banca de Roma, Xera and Eddisson Flack paid a whopping 4.68 trillion Lira (US$2 billion) for its national 3G licence.

Italian rivals Omnitel/Vodafone and Telecom Italia Mobile have both indicated their interest in purchasing some of Ipse’s spectrum in the past. It is thought that the consortium will receive a much lower price than it paid for the 5MHz of 3G spectrum.

According to reports in the Spanish and Italian press, Berlusconi’s government has put two conditions on the sale. It announced that the Minister for Communications must grant his authority for any change in frequency ownership. The government has also decreed that any sale will have to be passed by the Italian competition authorities.

Any money from the sale will help Telefónica reduce its massive debt pile of €6.49 billion (US$7.37 billion) which it built up as it tried to expand into Switzerland, Germany, Italy, and Austria.

 


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