Talkline GmbH, the mobile service provider unit of German power company RWE AG, call centre service company EuropAssistance and Italian cellular distributor Spal have joined forces to form Italy’s first cellular service provider, Startel SpA. Earlier in the year Germany’s largest service provider, Debitel GmbH in Stuttgart, unveiled plans to expand into the Italian and Spanish markets, but ran into resistance by the new GSM operators in each country to cooperate with service providers. To strengthen its case, Startel president Carlo Loi points to legislation drafted by the European Commission calling on member states to introduce service provision for mobile communications and to new opportunities for GSM operators to generate greater traffic by allowing more companies to sell airtime. The European Commission has recommended service provision as a way to stir up more competition, Loi said. In the meantime, he said Startel is talking to both cellular operators, Telecom Italia Mobile and Omnitel Pronto Italia, about buying airtime. While Talkline, Germany’s second largest service provider, will contribute its expertise in billing, administration and customer care, Spal will bring its muscle as Italy’s largest independent distributor Talkline has begun forging partnerships in major GSM markets across Europe. But whether Telecom Italia Mobile and Omnitel Pronto Italia are prepared to cooperate with Startel as well as other service providers still remains to be seen. Sure, a service provider has the right to begin operating in Italy, but how is it going to operate here?, said Fabrizio Bona, OPI’s market development director. The distribution situation is pretty equitable; there is no great difference in the paybacks to dealers, from either us or TIM. Plus, there are no handset subsidies. How can a service provider operate in a market with no handset subsidies? I just don’t see service provision taking off. Startel will invest in a call ce! ntre, in marketing and sales and offices, said Loi, but will remain a lean organization. In a nod to things maybe yet to come, Loi quipped that: No blood has yet been shed in mobile telephony in Italy.
