Masters of the art of conversation

The Italians are among the most enthusiastic mobile users and it is estimated there will be 60 million of them by 2007. The number using internet services via the new 3G cellphones should reach 50 million by 2010, according to a European Union study. While the incumbent Telecom Italia holds the lion's share of the present market, there are other players eager to grab a share.
Marco de Benedetti, chief executive of Telecom Italia Mobile (TIM), the largest European mobile operator using a single network, says: "The web has been a key factor in the advance of mobile technology. This is especially true in a market such as Italy, where more than 35 million people have a mobile phone and only three million own a personal computer. "In the United States, the route to the internet has been through a PC, but in Italy we are confident that the majority of our users will access the same information through their cellphone." However, Mr De Benedetti points out that size isn't everything. "Economies of scale cannot be obtained simply through cross-border expansion," he says. "There are specific differences that distinguish the single European markets. If we compare the British market to the Italian one, there are factors which differentiate the two in substantial ways.
"The British market is highly subsidised, a phenomenon that is not true in regard to the Italian market. In the UK, the majority of mobile telephony consumers choose the option to underwrite a contract with their provider, whereas in Italy more than 90 per cent of our clients are pre-paid users." TIM has launched a new platform called UniTIM, which enables consumers to use their cellphone number as an e-mail address and fax number in addition to voice communication. Telecom Italia, of which TIM is a part, is the fixed-line operator.
It is also an internet service provider (ISP) and, following restructuring and the arrival of Andrea Granelli, the company has also created a venture capital and innovation division to break into new markets. Mr Granelli, who spent four years as the head of Telecom Italia's ISP, TIN.IT, is now the executive vice-president of the new division. "The telecommunications sector is changing and becoming much more data-driven," he says. "In terms of ISPs or con-tent, every country has its own specialities and elements of difference, so it is not easy to tackle the European market, at least not for the internet. With regard to mobile telecommunications, the case is quite different because the infrastructure needs are much greater, and one can develop economies of scale by applying common branding strategies."
Marco de Benedetti, chief executive of Telecom Italia Mobile (TIM), the largest European mobile operator using a single network, says: "The web has been a key factor in the advance of mobile technology. This is especially true in a market such as Italy, where more than 35 million people have a mobile phone and only three million own a personal computer. "In the United States, the route to the internet has been through a PC, but in Italy we are confident that the majority of our users will access the same information through their cellphone." However, Mr De Benedetti points out that size isn't everything. "Economies of scale cannot be obtained simply through cross-border expansion," he says. "There are specific differences that distinguish the single European markets. If we compare the British market to the Italian one, there are factors which differentiate the two in substantial ways.
"The British market is highly subsidised, a phenomenon that is not true in regard to the Italian market. In the UK, the majority of mobile telephony consumers choose the option to underwrite a contract with their provider, whereas in Italy more than 90 per cent of our clients are pre-paid users." TIM has launched a new platform called UniTIM, which enables consumers to use their cellphone number as an e-mail address and fax number in addition to voice communication. Telecom Italia, of which TIM is a part, is the fixed-line operator.
It is also an internet service provider (ISP) and, following restructuring and the arrival of Andrea Granelli, the company has also created a venture capital and innovation division to break into new markets. Mr Granelli, who spent four years as the head of Telecom Italia's ISP, TIN.IT, is now the executive vice-president of the new division. "The telecommunications sector is changing and becoming much more data-driven," he says. "In terms of ISPs or con-tent, every country has its own specialities and elements of difference, so it is not easy to tackle the European market, at least not for the internet. With regard to mobile telecommunications, the case is quite different because the infrastructure needs are much greater, and one can develop economies of scale by applying common branding strategies."


