(Reuters) – French telecoms group Iliad sees consolidation in the Italian market as an opportunity, but not as a necessity, for the group’s operations in Italy, CEO Thomas Reynaud said on Tuesday.
Reynaud declined to comment specifically on a potential tie-up between Iliad’s Italian operations and Telecom Italia (TIM) during a press briefing after full-year results.
WHY IT IS IMPORTANT
Iliad in February sounded out the Italian government over a potential combination between Iliad and TIM in Italy. Rome, which has special vetting powers over TIM, put any consideration on hold.
Any tie-up would reduce the number of mobile network operators in Italy to three from four, as the sector grapples with shrinking revenue and lower margins amid stiff price competition.
KEY QUOTES
“We are in a beautiful adventure in Italy and consolidation is an opportunity but not mandatory,” Reynaud said.
CONTEXT
Iliad’s entry into Italy six years ago spurred aggressive price competition in the Italian retail telecoms market, especially in the mobile segment.
Last week, TIM’s single-largest investor, Vivendi, began reducing its stake in the former phone monopoly, which it no longer considers strategic.
BY THE NUMBERS
Iliad added 906,000 mobile subscribers and 142,000 new fibre customers last year in Italy.
(Reporting by Leo Marchandon and Elvira Pollina; Editing by Sharon Singleton)
