Italy, a country of 58 million people, has more than 55 million cellphone subscriptions and fewer than 30 million for fixed-line service.

In addition to fixed-line services, Tele2 Austria is using their infrastructur for carrier services.

In fixed-line services, networks would be consolidated and purchasing and product development pooled.

More important, the companies said, the new licenses let them offer cellular and fixed-line service in the same areas.

Revenue from fixed-line services, which makes up more than half the company's sales, fell 3.3 percent.

Traditionally, access to the Web has been via fixed-line services on large-screen laptops and desktop computers.

Many people simply do without fixed-line service to avoid large upfront payments, enormous delays and onerous monthly charges.

Mauritel, which was privatized in 2001, maintains a monopoly over fixed-line service.

Telephone companies that provide fixed-line services will be able to add mobile service on a limited basis under a new court ruling.

Many areas have never had conventional fixed-line service.