Communications Regulatory Authority

But the fixed-mobile convergence is not just limited to integrated operators: it
also concerns, in different forms, operators present in just one of the two
telecommunications markets. The operators that do not hold mobile infrastructure can
offer integrated service packages by acquiring mobile operators or by entering into
collaborative arrangements with them (ranging from partnership agreements to mobile
network leasing contracts, as in the case of virtual mobile operators). On the other hand,
as for the operators operating only in the mobile sector, these can counter the integrated
offerings by acquiring fixed operators or Internet Service Providers (with whom they
can provide broadband activities and, as necessary, Internet Protocol voice services),
launching initiatives aiming to encourage the replacement of fixed with mobile
telephony (proposing, for example, convenient rates for calls to fixed network numbers
made from home), or focusing on the availability of wireless broadband networks as an
alternative to fixed ones (to completely replace the fixed line).
A second route concerns the converging offers of telecommunications services
and audiovisual contents. Last year saw the launching of numerous converging
initiatives ranging from offerings of Internet Protocol TV (IPTV) to mobile television
(in various technological standards, such as DVB-H, MediaFLO, and DMB).
In short, the convergence is adding further services to the by now traditional
voice and broadband Internet access (double play) services provided by fixed network
operators; the integration of telecommunications with the audiovisual sector broadens
the offering of services to include television (triple play), while the fixed-mobile
convergence makes it possible to complete the range, offering consumers a single allinclusive
package of communication services (quadruple play).
The advent of finally converging products and services is thus determining
profound changes in the sector’s competitive scenario. Indeed, during the past year there
has been a significant upswing in merger & acquisition activities.
In the United States, the main operation concerned the merger of AT&T with
BellSouth, which followed the completion of the acquisition of AT&T by SBC in 2005,
and Verizon’s acquisition of MCI.
In Europe, too, there have been numerous events on the corporate structure
change front, among which worthy of mention are:
− the acquisition, in late July 2005, of Amena by France Télécom, through its
Orange mobile division; the Spanish operator Amena will then be merged
with France Télécom España, a company of the French incumbent operator
which offers ADSL connectivity in Spain;
− Telefónica’s purchase of O2 and Cesky Telecom, thanks to which the
Spanish operator is now able to offer fixed-mobile services in the Czech
Republic and Germany;
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