Italian mobile operator Iliad Italia has intensified discussions with wholesale provider Open Fiber about launching a fixed broadband offer, reports Milano Finanza (MF). Negotiations between the subsidiary of France’s Iliad and the fibre-optic venture of Italian utility giant Enel and state lender CDP started several months ago but have accelerated in recent weeks, said the report, adding that the low-cost operator is keen to enter the fixed-line market to meet customer demand for convergent offers and increase ARPU as a means of supporting its ambitious investment strategy.
Iliad Italia had nearly 6 million customers and accounted for over 7 percent of the Italian mobile market (excluding M2M) at the end of March, less than 2 years after launching its first offers. CEO Benedetto Levi last year confirmed that the company was evaluating “if and when to launch a dedicated fixed line offer” while insisting that it remained focused on the mobile market, having acquired 5G-ready spectrum in the 700MHz, 3.7 GHz and 26 GHz band for EUR 1.2 billion in Italy's October 2018 auction.
Levi also recently told Corriere delle Comunicazioni that Iliad was close to launching a fibre offer in view of the "great demand for a fixed line from our mobile customer base", adding that entering the fixed market in Italy does not in principle require large initial investments in view of the wholesale offers currently available from TIM, Open Fiber and Fastweb.
The local fixed broadband market is set to become even more competitive this year with the imminent entry of satellite broadcaster Sky Italia, which last year signed a long-term agreement to access Open Fiber’s FTTH network.
