The new head of Italy’s communications ministry said the government expects to hold its tender for a fourth mobile phone license by the middle of next year.
The ministry originally said the tender would get underway by the end of this year, but that was under former communications minister Antonio Maccanico. Since then, Italy’s government created by former Premiere Romano Prodi collapsed following his resignation. The new left-of-center government led by Massimo D’Alema renamed Michele Lauria head of the communications division, which will oversee the tender.
The winner of the fourth license will compete against three incumbents-Wind, a consortium that won the third license this year; Omnitel, controlled by Olivetti and Germany’s Mannesman; and Telecom Italia Mobile, the wireless division of Telecom Italia.
Telecom Italia Chairman Gian Mario Rossignolo last week ended 10 months of mismanagement accusations and high-level power struggles by resigning, following word the company’s shareholders were planning to hobble his executive powers. Berardino Libonati, chairman of the company’s mobile phone division, was named his successor-further signifying shareholders’ intent to move to a more nonexecutive chair structure.
Rossignolo was accused of snubbing shareholder, manager and political concerns throughout his reign, particularly when he failed to complete global alliance deals with AT&T Corp. and Cable & Wireless plc.
The recently privatized company has watched its stock dip well below its initial offering price during Rossignolo’s term. Word of his departure spurred a 6.9-percent rise in stock value. Telecom Italia’s stock price fell to $5.38 on Oct. 9-19 percent below its initial offer price-which makes the company ripe for an international telecom firm to enter as a partner. Shareholders have said they want and the company needs to complete its privatization.
The Italian government, which recently experienced an upheaval of its own, said it plans to sell soon its remaining 5-percent stake in Telecom Italia to complete the company’s privatization.
Analysts speculate the executive changes could affect Telecom Italia’s Latin America operations, including Brazil, where its negotiating to buy a 25-percent stake in the Telemar consortium.
