Italian Ministry Confirms Mediaset's Exit from WiMax Auction

ROME -(Dow Jones)- Italy's Communications Ministry said Thursday Mediaset pulled out of the sixth round of the auction of 35 broadband wireless-access technology, or WiMax, frequencies, but 16 bidders remain in the race.

Earlier Thursday, Dow Jones Newswires reported a person familiar with the matter saying Mediaset's Elettronica Industriale had withdrawn.

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

Among those who bid for the frequencies were Italy's largest telecom operator, Telecom Italia, the Ministry said in a statement.

It also said Mercurio FVG and Progetto 2 pulled out of the race.

Total bids so far have grown to about EUR113 million, the ministry said. The auction will continue Friday with a seventh round, the ministry added, without saying when the auction will end.

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

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

-By Liam Moloney, Dow Jones Newswires; +39 06 678 2543; liam.moloney@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 21st February 2008