TIM, COOP agree to MVNO
Telecompaper writes…Telecom Italia Mobile has agreed to lease its network to retailer COOP in what is being called Italy’s first MVNO arrangement. The company will launch services under the name COOPVoce in April, aimed at its existing customers initially. COOP members will be able to make domestic and international calls, send and receive SMS and MMS messages, browse the web and access value-added services. The COOP will be setting its own pricing and rolling out a range of sales offerings. The company is directly responsible for customer acquisition and customer relations during the sales and after-sales phase through a dedicated number. COOP has around 1,300 outlets across Italy and 6.5 million members.
German regulator lowers LLU fee by EUR 0.15 per month
Telecompaper writes…The German telecommunications regulator BNA has decreased the price for local loop unbundling (LLU) to EUR 10.50. This means a lowering of the charge by EUR 0.15, while Deutsche Telekom applied for an increase to EUR 12.03. Additional staff restructuring costs were not accepted in this particular case. The LLU charges are determined on the basis of recovery costs which exceed the historic costs which are to be recognised. Transitional restructuring costs are hence already covered by this difference. Furthermore, the restructuring expenses are intended to lower costs and increase efficiency in the medium term. This was also one of the reasons as as such they are not “long-term” additional costs required to provide the offering why these costs could not be taken into account.
AT&T, America Movil in talks to acquire Telecom Italia stake
Telecompaper writes…AT&T is in negotiations for a potential indirect investment in Telecom Italia. The proposal is for AT&T to purchase a one-third stake in Olimpia, a holding company with approximately 18 percent of Telecom Italia’s ordinary shares, subject to satisfactory completion of AT&T’s due diligence, agreement on other terms of the transaction, and satisfaction of other conditions. As part of these negotiations, Mexican telecommunications operator America Movil also is considering an investment for one-third of the shares of Olimpia. AT&T’s investment is contingent on America Movil’s investment. AT&T is in negotiations on the potential investment to acquire the interest from Pirelli, which owns 80 percent of Olimpia. The valuation of the stakes in Olimpia which are the object of the possible sale would be based on a price per Telecom Italia share equal to EUR 2.82, minus the net debt of Olimpia on the closing date of the transaction, subject to the satisfaction of the terms of the proposal. An agreement could value Pirelli’s 18 percent stake in TI at nearly EUR 7 billion, a premium of almost a third to its market value.
