Marriage in sight in the telecommunications segment. The global giant Vodafone and Iliad, one of the most innovative companies in the telecommunications sector, are in talks to conclude an agreement in Italy that would combine their respective activities in an attempt to put an end to the cutthroat competition in the third largest economy in the euro zone. This was reported by sources close to the dossier to the Reuters news agency. Discussions between the two companies are ongoing and both sides are actively investigating ways to conclude a bond of their respective businesses in Italy, the sources said speaking on condition of anonymity to Reuters.
2022 opens with the announcement of a possible wedding between the giants of the telephone networks. While Tim embraced the new CEO Pietro Labriola, Vodafone and Iliad are studying counter-moves. Iliad, which will make its fixed broadband debut in Italy on Jan.25, is working with investment bank Lazard on its strategic plans in Italy, one of the sources told Reuters, warning that a deal was uncertain. If successful, the Anglo-Saxon news agency notes, the agreement would create a telecommunications powerhouse with a mobile market penetration of around 36% and combined revenues of nearly € 6 billion. Currently, both Iliad and Vodafone have refused to comment on the rumors, as has Lazard.
In addition to the Iliad deal, Vodafone is also analyzing other moves, always in view of a greater concentration of the sector on a continental scale. The group led by Nick Read has reopened the Three Uk dossier, the British mobile phone company controlled by Ck Hutchinson, after last year’s failed attempt. The news was launched by the Bloomberg agency. Read himself, on 17 November, said that consolidation is necessary in Europe, in particular in Italy, Spain and Portugal, where “all the players are suffering”. The impression is that the risk has just begun.