The Coming Week in Europe: Telcos Face Off in Italian Wireless-License Auction

BERLIN -- Contrary to popular stereotypes, Italians do not do everything more passionately than their traditionally more staid German and British neighbors.

Perhaps it's merely the exception confirming the rule, but the beginning of the auction for Italian third-generation mobile-phone licenses last week was a rather tepid affair compared to the bidding in Germany and the U.K. earlier this year.

Whereas the U.K. auction brought in $32 billion and German bidding nearly topped $50 billion, the Italian auction is expected to garner only around $25 billion for Rome's government coffers. To be fair, that's partly due to the Italians' passion for their mobile phones, which means there is less room for cellular operators to grow in Italy's mature market. Six bidders are vying for five licenses, with the country's four incumbent operators expected to be successful, along with one of two new entrants. ...