BT to Launch as MVNO in Italy

Following its recent decision to become a mobile network virtual operator (MVNO) in Spain, BT has announced plans to do the same in Italy. The UK fixed line operator has signed a deal with Vodafone which will supply the network backbone and airtime for BT Italia to resell.

In what the pair describe as a "long-term deal", BT Italia says it will be the first mobile operator in Italy to solely target business customers. Vodafone said that it will make available its network infrastructure and will guarantee a wide portfolio of wholesale mobile services, from voice to SMS and from roaming to data traffic, on which BT Italia will be able to base its own offer of integrated fixed and mobile services to clients.

The service is due to launch by the end of the year and BT Italia says that it is targeting a 10% share of the market for mobile business revenues within five years.

Last month, the UK operator signed a deal with Vodafone to use the mobile giant's Spanish infrastructure. At the time, BT said in a statement that it plans to target mainly business and public sector customers in Spain. The company aims to offer them "value-added mobility services" including mobile video-telephony, audio/video streaming services, location based services and fixed-mobile convergence services.

The Spanish business daily, Cinco Dias, reported that BT believes it has a potential market of around one million mobile customers. Initially, at least, BT will concentrate on supplying its existing Spanish fixed line customer base of 30,000 small-and-medium-sized businesses and 2,000 large companies and institutions.