TIM will not offer large handset subsidies for 3G

Italy’s largest mobile operator Telecom Italia Mobile (TIM) [TIM.MI] announced yesterday that it had no plans to offer big subsidies on its 3G handsets as its rival Hutchison Whampoa-owned 3 Italia has done, claiming that it will entice customers with other schemes while keeping the prices of handsets relatively high. According to the company’s chief executive Marco De Benedetti, TIM does not want to start a price war with 3, as it expects the price of 3G handsets to fall naturally from the current EUR700-EUR800, to around EUR200 by Christmas 2004. TIM hopes to launch its 3G services later this year.