Telecom Italia Weighs Merger With Hutchison

Bain & Company partner Alex Bhak acknowledges the large impact that the go-ahead with the merger talks between Telecom Italia and Hutchinson Whampoa will have on the Italian mobile telecommunications market. This would essentially reduce the number of competitors in the market from four to three. Bahk points out that, on average, "being the third mobile competitor in a market of three operators is about 5 percentage points more profitable than being third in a market of four rivals."

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