French service provider, Iliad has confirmed that it has signed a contract with Hutchison and VimpelCom to form a new company in the Italian telecom market. This deal is subject to EC’s approval of the deal combining 3 Italy and Wind.
With this deal, Iliad stands to gain 450 million Euro worth of spectrum in multiple bands besides several thousand base stations, owned or rented by Wind. Iliad hopes to be in a position to offer competitive mobile services and become the fourth mobile service provider with national coverage.
Iliad’s entry in the French market earlier disrupted the market and had a significant impact on the incumbents. The service provider would be looking to replicate the situation in Italy as well.
Iliad also addressed the issue of Xavier Niel, its majority shareholder, and his involvement with Telecom Italia. Niel had built up an interest in the incumbent late last year. “He does not currently hold any stake in the voting rights or capital of Telecom Italia, whether directly or indirectly, and has only a marginal financial interest (of less than €25 million), which will be sold in the next few weeks,” says the company communication.