Infostrada SpA, the business communications company established by Ing C Olivetti & Co SpA last spring with Bell Atlantic Corp, yesterday acquired some heavyweight partners. Now doubt judging that the most effective way to compete with a rampant monopolist like Telecom Italia SpA, it’s best to get into bed with another rampant monopolist, Olivetti has reached preliminary agreement for France Telecom to take a 49% stake in the company, which will provide corporate value-added network services, the only part of the Italian market currently deregulated. France Telecom said that the aim is for Infostrada to become a distributor of services from Phoenix, its proposed joint venture with Deutsche Telekom and Sprint International. Over the next six months, we will negotiate with Deutsche Telekom and Sprint their participation in our 49%, with the aim of splitting it up. They are already in agreement in principle, she said. The three would then split a total investment of $60m over the next two years, she said. This is an extremely important agreement for France Telecom. In approaching a new market, you can either do it alone or with a powerful partner like Olivetti who can provide quicker access to the market, she said, adding that Italy’s business communications market is the fourth-largest in Europe. Depending on the US Federal Communications Commission decision on Phoenix, the spokeswoman said the three partners would be ready to go in Italy as of the first of the year. And, as the market con tinues to open up, we will expand the services as well, with the ul timate aim of challenging Telecom Italia’s supremacy in telephony.
OLIVETTI CALLS IN FRANCE TELECOM TO FIGHT TELECOM ITALIA
