Silvio Berlusconi’s Mediaset and Telecom Italia are among 24 bidders competing for WiMAX frequencies in Italy, according to the country’s Communications Ministry. Orascom-owned telco Wind, and ISP FastWeb, which is now owned by Swisscom, are also participating in the auction for 35 WiMAX frequencies nationwide. In the two rounds of bidding completed by Friday last week, total offers had reached €64.3 million (US$94.1 million), with a 30% increase between the first and the second round. The tender has seen Telecom Italia, Wind and Mediaset, which is participating through its unit Elettronica Industriale, compete for all frequencies.

Should Mediaset eventually emerge with WiMAX licences, Berlusconi’s broadcasting company would likely expand into the telecoms sector for the first time. Analysts are unsure whether the group plans to lease the frequencies or produce its own wireless products. Earlier this month Telecom Italia announced plans to break up its business into network operations and services. The telco says it will create a separate division that will oversee all its infrastructure activities and will have separate management, but will still be wholly owned by Telecom Italia. The global market for mobile WiMAX services will generate revenues of US$23 billion by 2013, according to Juniper Research. The research firm forecasts that the market will not significantly take off until 2010, with demand in the US, Japan and South Korea driving growth.