Venture creates new carrier in Italy

Deutsche Telekom and France Telecom last week joined Enel, the Italian electric company, to create an alternative carrier aiming to bid for the third mobile license and apply for national voice telephony licenses in Italy.

The German and French PTTs own equal stakes in the company, totaling 49%, while Enel holds 51%. Sprint, the international partner of Deutsche Telekom and France Telecom in Global One, will have the chance to participate in the venture at a later date.

The partners expect the new carrier, which will use fixed and mobile technologies, to significantly grow in Italy, the fourth-largest telecommunications market in Europe. The venture's timing coincides with deregulation, strong customer demand and new service offerings that will take place in the next decade.

"The joint venture will contribute to open the Italian market to competition," said Franco Tato, chief executive officer of Enel in a statement. "Enel will have the opportunity to better exploit available assets and skills as well as creating new employment," he said.

Enel is the world's second-largest electric utility in terms of installed power and number of customers.