Telecoms: Italy

In fiscal year 2005 ended on 31 March 2006, BT Albacom had revenues of 753 M€ (+13,4% ), excluding the effect of the Atlanet acquisition, due to be consolidated in next year’s results.
EBITDA was 62,3 M€ (+62,3%) and EBIT – 4M€ (+94%).

BT Albacom claims to have 250.000 business customers in Italy, of which 30.000 use its VoIP services.

In fiscal year 2006 ended on 31 March 2006, Vodafone had revenues of 8,324 M€ (+2% ). EBITDA was 4,334 M€ (-0.5%) and EBIT 3,197 M€ (-0.5%).

Vodafone Italia claims to have at end of March 2006 24.056.000 (+6.9%) total customers and 2.928.000 UMTS customers in Italy.

ARPU was down to 28.5 € (-1 €) and churn rate went up to 18.7 % (+ 1.5%).

In fiscal year 2005, Elitel had revenues of 155 M€, 25% of which came from wholesale service, 33% from small business retail, 14% from large accounts, 19% from premium services and 9% from call center operations.
Elitel claims to serve 2.274 large accounts in Italy, of which 773 already use its VoIP services.

After a seven years long legal battle, Telecom Italia is getting back around 500 millions € from the Italian State for a previous tax charge (3% on revenues) declared illegal. In a similar court case, Vodafone won the right to get back 190 millions €.

Fastweb reported approximately 874,000 customers at 30 June 2006, an increase of approximately 160,000 subscribers in the first half of the year.

Telecom Italia sold to Turk Telekom its 40.5% shareholding in AVEA for a total price of $ 500 million.

Metroweb, a company controlled by the city of Milan, is considering selling its fiber optic and cable duct metropolitan infrastructure.

As of June 2006, Vodafone Italia has 24.146.000 customers, 2% more than it had at end of 2005.
UMTS users grew 43% to 3.196.000.

Elitel Telecom today announced that it has acquired a controlling share of Alpikom, regional telecom operator based in North Eastern Italy.

In the first half of 2006, Telecom Italia’s fixed wireline division reported domestic revenues of € 8,550 million (1,2% lower than in 1H 2005).
TIM (Telecom Italia Mobile) domestic operation reported revenues of € 4,982 million (1,1 % higher than in 1H 2005).

Since 1995, Telecom Italia has been Castro’s best friend in the telecom business. Although the fact is probably little know, the Italian incumbent is the only foreign shareholder (30%) of the Cuban monopoly telecom service provider Etecsa.

The strategic rationale of Telecom Italian owning a big stake in the Cuban operator is frankly hard to understand and, apparently, as long as Fidel Castro is alive, no change is expected.

As of June 2006, 3 Italia, part of Hutchison Whampoa has 6.8 million UMTS customers, 16% more than it had at the end of 2005.

Fixed-mobile convergence, “one company” model, multi-platform content delivery, … Telecom Italia was just kidding. The new stategy of the Italian incumbent is to sell its mobile subsidiary TIM (Telecom Italia Mobile), that was merged into the main company less than two years ago with much fanfare about synergies and “strategic advantages” of the fixed-mobile convergence.

According to an official press release issued today, the Board of Directors of Telecom Italia, examined and approved the roadmap for the reorganization of the Telecom Italia Group.

Convergence has been the most quoted word by Telecom Italia’s top management during the last couple of years.

Here is a peculiar summary of what they though about the importance of fixed-mobile convergence:

A few days after announcing a sudden change of strategy, Marco Tronchetti Provera stepped down as chairman of Telecom Italia.

Despite the current turmoil in the company, Telecom Italia was able to successfully bid for the German operation of AOL.
The Italian incumbent bought AOL Germany from Time Warner for € 675 million.

The regional IT and telecommunications provider Infracom bought Netscalibur Italia, a Milan-based provider of carrier services, housing and networking solutions for € 27 million.

During the first half of 2006 Elitel registered 61% growth in turnover compared to same period in 2005, to € 101,4 million. The Group has launched new services in particular in the wholesale area with the introduction of the pre paid cards and the signing of agreements for the distribution of the cards.

BT’s Italian subsidiary finally changed its brand to simply BT Italia, abandoning the previously used ‘Albacom’ brand.

After having recently disposed also of its Dutch operation, Tiscali announced a new three-year plan (2007- 2010) focusing on Italy and the UK only.
According to an official statement of the Board of Directors,

Tiscali will transition from Isp to full-service provider, delivering telecommunication and media integrated services to the end customer (with the relevant expansion on the physical access, voice and Iptv markets), through a full network and service IP model combining product innovation and marketing aggressiveness.

Telecom Italia’s Board of Directors has mandated senior management to negotiate the possible sale of the Group’s mobile activities in Brazil, with a commitment to refer to the Board of Directors speedily for the formalization of the relative final decisions.

Fastweb announced preliminary consolidated results for the fourth quarter 2006. Fastweb generated positive free cash flow on a quarterly basis for the first time since inception.

Freenet.de AG will acquire Tiscali’s narrowband and broadband customer base in
Germany.

According to pro-forma preliminary results for 2006, Tiscali’s revenues in Italy stood at € 217 m, up 15% compared to 2005.

The controlling stake of Italian operator Elitel Telecom (AIM:ETM) has been sold by investment fund Kiwi II to another Italian small OLO: Vive La Vie.

Revenues for Telecom Italia group in FY 2006 reached € 31,275 m, with an organic growth of 2.9%. EBIDTA was € 12,850 m, with an organic growth of 0.8%.

Swisscom expressed its intention to acquire, through a public tender offer, the shares representing the entire capital stock of Fastweb at a price of € 47 per share.

According to what Telecom Italia told earlier this week to the financial community, the customer portfolio for international operations would in 2009 account for around 48% of the entire Group and revenues from international operations would grow from the current 16% (approx.) of the total revenues to 30% (approx.) in 2009.

Italtel's revenue for 2006 totalled € 546.1 m, in line with € 545.8 m in 2005; Ebitda amounted to € 114.8 m corresponding to 21% of revenue.

AT&T and América Móvil made a preliminary offer to but a controlling stake of Telecom Italia owned by Pirelli.

Italian antitrust banned Yell Group from selling its Italian subsdidiary 1288 SCT (inherithed from the former acquisition of Telefonica Publicidad e Informacion) to Seat Pagine Gialle.

71 years old Pasquale Pistorio, who served for more than 25 year as CEO of ST Microelectronics, was named president of Telecom Italia.

Former CEO of Telecom Italia and of Eni, Franco Bernabè took a controlling stake of mobile M2M specialist Telit through a consortium of investors named Boostt.

A group of Italian banks and insurance companies allied with Telefonica will buy the controlling stake of Telecom Italia owned by Pirelli.

Another Italian OLO is in trouble and its 400k users experience the worst nightmare: no service and no advance notice.

Tiscali is to buy the broadband and voice division of UK-based Pipex for an agreed enterprise value of £ 210 million.

According to press reports, Italian mobile operators Wind and 3 are considering selling their towers to would be investors.

In a deal valued € 775m, Vodafone bought the Italian and Spanish arm of Tele2.

Telecom Italia is considering selling its undeperforming French assets.

According to the Spanish daily El Economista, Italtel is negotiating the buy-out of Spanish equipment and infrastructure company Avanzit.

The national regulatory authority (AGCOM) reiterated its previous decision concerning asymmetric termination rates for fixed lines operators, aimed to help infrastructure-based OLOs to recoup their investments.

Iliad, owner of French internet service provider Free, is the likely new owner of Alice France, Telecom Italia's French brand with an estimated 1 m broadband customers.

Iliad and Telecom Italia are aiming to complete the transaction by the end of September 2008 on the basis of an enterprise value of € 800 m.

Combination of Pirelli's PGT Photonics and CyOptics supports development of a new generation of optical components. Pirelli to take an approximately 30% stake in CyOptic.

TI Media, the ailing broadcaster owned by Telecom Italia, is selling its pay-per-view operation over DVB-T digital terrestrial television to Swedish company Airplus TV.