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Italian government to hike 3G licence value

By Tony Hallett

Published: 25 April 2000 16:49 GMT

The Italian government is to revise its pricing structure for third-generation (3G) mobile network licences, rising the asking price of each to E15bn (£8.8bn) from E1.2bn (£704m).

The pricing will be in line with the large sums set to swell the UK Treasury's coffers from its ongoing auction process.

The change of licence value, as the Wall Street Journal Europe reported on Tuesday, is unlikely to deter those looking for a future mobile licence. Telecom Italia Mobile (TIM) is Europe's largest mobile network operator and needs a 3G licence for additional capacity as much as next-generation data and video services.

Meanwhile, existing players Blu, Omnitel (now owned by Vodafone AirTouch), and Wind are also considered likely winners, with a fifth licence to go to a new entrant, possibly from overseas or Italy's ISP community.

The Italian system is based on the "beauty contest" principle also being used in Finland and France.

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