Mediaset Withdraws from WiMax Frequencies' Auction - Source

MILAN -(Dow Jones)- Italy's largest commercial broadcaster Mediaset has withdrawn from the auction of 35 wireless broadband WiMax frequencies, a person close to the matter told Dow Jones Newswires Thursday.

Buying WiMax frequencies could have been a first step into telecommunications for Mediaset, which is owned by the family of former prime minister and media tycoon Silvio Berlusconi.

Italy's Communications Ministry said Wednesday that 22 bidders were still active at the end of the fifth round of the WiMax auction.

Among those who are still in the race is Italy's largest telecom operator, Telecom Italia.

Total bids so far have reached EUR106 million, the ministry said Wednesday. The auction is continuing Thursday with a sixth round.

Italy is one of the last European countries to introduce WiMax, a wireless broadband transmission system, while France and Germany failed to generate big revenues from their respective auctions.

Italy's Communications Ministry says the tender may be an opportunity for smaller operators to step forward.

-By Giada Zampano, Dow Jones Newswires; +39 02 5821 9907; giada.zampano@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 21st February 2008