Bell Atlantic Corp. announced it sold its 33-percent ownership stake in the Italian telephone carrier Infostrada to its partner in that venture, Olivetti spa, which already holds the remaining 67 percent.
Bell Atlantic unloaded its Infostrada share for $43 million and additional power in its other Italian interest, Global System for Mobile communications operator Omnitel Pronto Italia spa, through increased board representation in both it and the Omnitel Sistemi Radiocellulari Italiani consortium, which owns 70 percent of OPI.
Shareholders in that consortium include Olivetti, Bell Atlantic, Cellular Communications International and Telia. Pronto Italia, mostly owned by AirTouch Communications Inc. and Mannesmann AG of Germany, holds the remaining 30 percent of OPI. The exact percentage Bell Atlantic now holds on the governing boards of both OPI and OSR was not disclosed.
After the sale, Olivetti and Mannesmann will together own 100 percent of Infostrada through a new joint venture. Infostrada is an alternative telephone carrier in Italy, which provides local, wireless local loop, long-distance and international voice and data services.
According to Bell Atlantic spokesman Steve Fleischer, the company felt Omnitel was deserving of greater emphasis than Infostrada. “We wanted to focus our attention and experience on the Omnitel investment, which we believe is best positioned for the trends toward increased competition,” he said. “This is one of the fastest-growing wireless businesses in the world. It got to 2 million customers in 24 months. That’s incredible.”
Omnitel was the first private GSM operator to launch service in Italy and currently is the country’s only privately owned wireless operator. Its competitor, Telecom Italia Mobile, is controlled by the government, which is working to privatize the company. Plans to tender a third mobile license in the country have suffered repeated delays.
The company also is interested in securing a Digital European Cordless Telephone license to offer a supercordless service in Italy.
Fleischer said the factors behind the company’s growth include Omnitel’s existing infrastructure buildout of 2,100 cell cites, a robust direct distribution channel and an award-winning customer care service.
“The growth is what most people focus on, but not enough credit can be given to management,” he said.
