Newco Iliad-WindTre, green light from Agcom: “It will stimulate investments”

The newco announced by Iliad and WindTre for the making of youa joint mobile network in the less densely populated areas of Italy not only does it not limit competition but it even promotes itencouraging competitors to invest in the most disadvantaged areas and also boost the 5G infrastructure front. This is the conclusion he came to‘Agcom in greenlighting the establishment of the newco announced by the two companies in April.

Agcom’s opinion and the limitations of the joint venture

In the opinion of some fifty pages (DOWNLOAD THE DOCUMENT HERE) carried out at the request of the Ministry of Economic Development, an opinion that follows that of the Antitrust Authority, the terms of the transaction are examined in detail – also subject to further requests for clarification after the first hearing on April 29 – and black on white the restrictions and conditions to avoid imbalances in the use of frequencies.

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In the meantime, Agcom finds it necessary that the two telecommunications companies anticipate the possibility of early termination of the joint venture and related agreement, introduce an appropriate termination period to ensure flexibility. Change that must be notified to Mise, Antitrust and Agcom itself, which reserves the right to intervene if necessary.

Regarding the governance and management of information flows between the two companies, Agcom believes they should be prepared adequate guarantees to ensure compliance with the requirements of autonomy of the parties and independence and impartiality of the Jv, giving explicit proof of this in the agreementeither.

On the frequency front, the regulatory obligations remain with the two companies. and no modifications may be made during construction unless prior authorization is requested from the Mise and the competent authorities.

The guarantees assured by WindTre and Iliad

With respect to the merits of the applications, Iliad and WindTre pointed out that the establishment of the joint venture does not concern the rights to use the frequencies and that any rental or transfer of the frequencies from WindTre and Iliad to the Jv or from WindTre a The Iliad is anticipated. The companies emphasize that the project will be structured in such a way that both continue to develop their retail and wholesale services with total independence from each other and thus compete independently in the market. And taking into account the parameters specified by Berec, the parties affirm that the project would have no impact in terms of market shares and in terms of geographic impact it would be limited to specific areas of the national territory where the implementation of network coverage is expected. more demanding and expensive. The two companies also affirm that the project would guarantee better connectivity for the population in the areas affected by the joint venture and have given guarantees on the efficient use of the spectrum.

The concentration of spectral resources

Concentration of spectral resources such as to determine a gap with respect to other operators of just over 10 percentage points in the frequency bands above Ghz and of about 5 points in those of higher value, a concentration that would only occur in the areas affected by the settlement and therefore a relatively small percentage of the population. In conclusion: the imbalance of the frequency endowment does not in itself indicate specific criticalitiesa. Not only that: the project would increase the efficiency of investments in less populated areas. On the impact on market competition and operators’ investments according to Agcom the joint venture cannot create barriers to entry or expansion for competitors.

Analysis of competition in the market

Regarding the analysis of the competition of the wholesale and retail markets that could be affected by the project, the document shows that WindTre and Iliad are the third and fourth operators in the mobile electronic communications market with shares of 24.5% and 8% (considering the human sim + M2M). Few points separate WindTre from Vodafone with 28.4%. WindTre is the leading operator in the human simulation market with a 26.5% share higher than all other operators, starting with Tim (25.5%) and Vodafone (23.1%). WindTre is the fourth operator in the fixed network retail access services market, with a 14% share in broadband and ultraband accesses with DSL, Fttc and FTTH technologies.


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