Fusion 3-Wind here is what can happen now – Mobile Magazine

It’s yesterday’s news of officialdom of the 3 fusion between Italy and Wind . The agreement, which most likely will begin to show the first fruits and to make the first changes no earlier than 12 months, already provide an interesting food for thought.

How will change after this event , the market for telecoms in Italy? What will be the most visible consequences?

To answer these questions tried Paul Iacopino , Director for Europe of the Institute for analysis and research Pyramid Research. First, the new company is presented with a business card important:

– the second Italian operator revenues by 6.4 billion combined revenue in 2014, compared with 5.8 for Vodafone and 15 , 3 billion of Telecom Italy (20% market share).

– mobile operator with the largest number of customers (31 million, with 34% market share).

– second fixed operator, with 2.8 million customers with fixed line.

This is a perfect picture to take advantage of the convergence between fixed and mobile . This segment in our country has moved up to this time in a very slow, mainly because of the restrictive regulations, by the absence of “cable operators” and the lack of integration between the TLC and media services (satellite and digital Earth still dominate the market for pay-TV in Italy). In the latter sector things have begun to change recently, thanks to players like Sky , Mediaset and, recently, Netflix .

However, the “ quadruple play ” (broadband internet, TV, telephone and wireless services) is not the only recipe for success. Offers bundled fixed-mobile also devoid of content for pay-TV have been successful in many parts of Western Europe (as in Spain and Belgium) and could be replicated in Italy.

The proposition commercial domestic-centric 3 and Wind could revive the demand for convergent fixed-mobile and open up new areas of the market to other players.

In addition, it is expected a ‘ intensification in price battle as Wind-3 may participate to their users of the results come from their synergies concerning operational expenditure (Opex) and capital expenses (Capex). The new company, in fact, expects to realize approximately 700 million euro synergy (90% of this amount in the third year of operations) that could easily result in savings for users, thanks to Prices and promotions more aggressive.

If the new legal entity decides to stake for their consumers also only 200 of the 700 million euro saved in synergies, users could result in cost savings of around Mobile 5%. And that could be strategic to stimulate both converged services and those brought dall’LTE.

Wind and 3 aim at accelerating the expansion of the 4G coverage , with the objective of 90% of the population by 2017, in line with the statements made by Tim and Vodafone. However, further flexibility could result from a possible obligation to sell part of the frequency spectrum of 2.6 GHz, that with the union of the two entities would be slightly higher than that currently allocated to competitors, Telecom and Vodafone Italy.

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