Iliad an agreement with Hutchison and VimpelCom that could open up the Italian market – L’Express

By acquiring antennas and frequencies to Hutchison and VimpelCom, Iliad could allow them to get the green light from European authorities for Competition to merge their respective mobile subsidiaries in the peninsula, H3G and Wind.

This “ a unique opportunity for the Iliad Group to enter the Italian telecommunications market, which is accelerating its transition ” digital, welcomed the parent company of Free.

Iliad could thus “ offer competitive mobile services and become the fourth mobile network operator with national coverage “, the company said, noting that this agreement remains “ subject to the approval of the European Commission, the authorization by the European Commission of the merger H3G / Wind .”

Wind is currently the third largest mobile operator H3G Italy, which offers mobile telecommunications services under the “ 3 Italia ” the fourth.

Their merger must give birth to the first Italian operator in terms of subscribers, followed by two mobile network operators of similar size, Tim (Telecom Italia) and Vodafone.

But on 30 March, the European Commission said it had opened a detailed investigation to determine whether the proposed merger was in accordance with regulations of the European Union (EU) Merger. She said fear that the operation would lead to higher prices, reduced choice and decreased innovation for mobile customers in Italy.

The Commission stressed that such a transaction would reduce the number of players from four to three. The sale of certain assets was therefore the condition laid down by the authority of European competition to give its approval to the merger between Wind and 3 to allow the emergence of a fourth mobile operator with infrastructure.

While the Commission has blocked a merger between Telia and Sonera in Denmark and between O2 and H3G UK, Wing and H3G in Italy, according to Italian press, sought to work in intelligence with European authorities to find a framework to ensure the success of the operation.

– One foot in Italy without massive investment –

In Italy, besides the four mentioned above, a number of mobile virtual network operators such as Fastweb and Postemobile are currently on the market. Fastweb, Swisscom subsidiary, was also in the running to buy assets the two operators wishing to merge, according to Italian newspapers.

Thanks to this agreement with Hutchison and VimpelCom, Iliad could launch on the Italian market without investing heavily early in the construction of its own network. This agreement gives effect to a transfer of a 3G and 4G frequencies portfolio “ for an amount of EUR 450 million which payment is spread between 2017 and 2019 ,” said Iliad.

The group also obtained a commitment to purchase several thousand sites in dense areas proposed by Wind / H3G or leased to third parties. In rural areas, it provides either a network sharing agreement with Wind / H3G or to acquire this area several thousand sites with Wind / H3G or third parties.

Finally Iliad won “ a 2G roaming agreement, 3G and 4G on the network merged for a period of 5 years renewable at the initiative of Iliad once for the same duration “.

Both in terms of commercial offers that network quality, Italy is late, especially in the very high speed fixed and mobile. The Iliad arrival should – if it acts as it did in France – disrupting the sector.

In addition Iliad said its major shareholder Xavier Niel would withdraw completely from Telecom Italia, which he holds “ less than 25 million ” of shares: staff, the company said.

This new attempt of internationalization, comes after a failure in the US, where the group had given in 2014 to buy T-Mobile US after months of negotiations.