Olivetti SpA is seeking to sell part of its stake in Omnitel Pronto Italia, Italy’s privately owned Global System for Mobile communications cellular carrier that is experiencing rapid subscriber growth rates.
Omnitel Pronto Italia said Olivetti has been negotiating with Mannesmann AG of Germany to sell 8 percent of its 59 percent ownership in Omnitel Sistemi Radiocellulari Italiana SpA, the company that owns 70 percent of Omnitel Pronto Italia. The 8 percent interest, which Olivetti purchased from Lehman Brothers several months ago, translates into a 5.6 percent stake in Omnitel Pronto Italia.
If the agreement is finalized, Olivetti would reduce its stake in Omnitel Pronto Italia from 41.3 percent to 35.7 percent, said Omnitel Pronto Italia. Mannesmann currently holds about a 6 percent interest in the cellular operator.
Olivetti is the lead owner in Omnitel Pronto Italia. Other holders include AirTouch Communications Inc., Bell Atlantic Corp., Cellular Communications International Inc., Telia of Sweden and several Italian companies.
Omnitel Pronto Italia launched service last December, competing with government-owned Telecom Italia Mobile SpA for the first time. Within 10 months of beginning operation, the carrier said it has gained about 560,000 subscribers. The company reported 300,000 customers in July and 100,000 in March. The network now covers 55 percent of Italy and serves about 82 percent of the population.
Omnitel Pronto Italia said its churn rate is about 1.1 percent per month, compared with worldwide averages that reach 3 percent per month.
This summer, Omnitel Pronto Italia contracted for Globalstar satellite services to be provided by Elsag Baily. The operator plans to use the satellite coverage to deliver mobile phone service in areas its GSM network does not cover.
The company also has roaming agreements in Europe and a few months ago announced agreements with eight GSM operators serving South Africa and Australia.
“Our rapid growth is based on the high quality of our network, on our customer-oriented service and on our ability to segment the market,” said Vittorio Colao, general director of Omnitel Pronto Italia.
