MILAN, Italy-The Italian government has proposed to use a two-stage process to award five Universal Mobile Telecommunications System licenses later this year. The proposal combines a “beauty contest” with an auction, with the government expecting to raise more than $11.2 billion.
The first phase of the procedure would evaluate bidders’ technical and economic plans, and the second phase would be based on prices. A government decision on the time frame of the licensing is expected later this month.
Italy originally planned a beauty contest, but then announced in April the 15-year licenses would be awarded through an auction.
The proposal would be the first hybrid UMTS licensing. The U.K. government’s auction of five UMTS licenses earlier this year raised more than $35 billion. Spain and Finland have awarded UMTS licenses through beauty contests.
Seven groups have been named as potential bidders in the Italian process, including the country’s three incumbent operators, Telecom Italia Mobile, Omnitel Pronto Italia, Wind Telecomunicazion and Blu. In addition, Dix.it, a consortium including Pirelli and Banco di Roma; Andala, a consortium comprised of Tiscali and CIR; and a combined Telefonica and Acea consortium will vie for third-generation licenses.
