The European Commission has given the green light to the joint venture in our country between 3Italia e wind, respectively controlled by the Chinese Hutchison Whampoa and the Russian VimpelCom. But he called for significant adjustments to the project: approval, under the EU merger regulation, is conditional on the divestment of sufficient assets to allow the market entry of a new operator. This operation should therefore allow the landing in Italy of Iliad, which, according to rumors reported by La Repubblica, aims to reach a 10% share of the mobile market in our country, a level that would guarantee operational break-even.
The new entity that will arise from the merger between Wind and 3Italia will be led by Maximo Ibarra, the current CEO of Wind. Completion of the transaction, subject to approval by national regulatory bodies, is expected to occur by the fourth quarter of 2016, producing efficiencies of over 5 billion euros, net of integration costs.
“Today's decision ensures that the sector remains competitive in Italy – he said Margrethe Vestager, Commissioner responsible for Competition – so that consumers can continue to enjoy innovative mobile services at fair prices and on quality networks. We can approve the deal because Hutchison and VimpelCom have proposed substantial remedies, which allow a new mobile network operator, Iliad, to enter the Italian market. This case demonstrates that in Europe telecommunications companies can grow not only by consolidating within the same country, subject to effective competition, but also by expanding across borders, like Iliad in this case”.
The integration of 3 Italia and Wind will create a new operator with over 31 million mobile customers and 2,8 million landline customers (of which 2,5 million broadband). “The financial capacity and industrial dimension of the new reality, with 21 sites and greater availability of frequencies – reads a note from the companies – will make it possible to provide innovative and quality services to business and consumer customers in Italy. Customers will also benefit from better network coverage, faster diffusion of ultra mobile broadband (4G/LTE), as well as greater reliability and download speed”.
The new operator that will arise from the joint venture “will benefit from significant economies of scale and synergies that will allow it to unlock investments of 7 billion euros in digital infrastructures in Italy - continues the note -. Furthermore, the contribution provided by the joint venture to the development of mobile ultra-broadband will play an important role in achieving the objectives of the Digital Agenda launched by the Italian Government, which plans to bring 100 Mbps to 85% of the population by 2020. investment will also be complementary to the Enel Open Fiber project, already supported by Wind".
