Rumors of a merger between Telecom Italia Mobile and Deutsche Telekom’s T-Mobil wireless network emerged again last week, with the Italian press reporting such a move is being considered by Telecom Italia’s chief executive officer.
Ever since Deutsche Telekom lost its takeover bid for Telecom Italia to Italian rival Olivetti last year, many have expected some kind of partnership between TIM and T-Mobil. The Italian newspaper Il Messaggero reported TIM would take over T-Mobil, as TIM is the larger company, in a move designed to defend against increased competition expected as a result of Vodafone AirTouch plc’s takeover of Mannesmann AG.
With more than 15 million customers, TIM is the largest wireless carrier in Europe, with wireless interests in almost every European nation save Germany and Switzerland. The company wants to fill those holes in an effort to become a pan-European player.
TIM earlier in the month agreed to start technical trials of Universal Mobile Telecommunications System technology with NEC Corp. Meanwhile, T-Mobil and Motorola Inc. entered into an agreement for a General Packet Radio Services data network.
Deutsche Telekom recently said it will collect its mobile assets, including T-Mobil, into a separate holding company to be called T-Mobil International AG.