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MILAN, April 20 (Reuters) – Sky Italia, the satellite TV

unit of News Corp, is considering taking part in an

upcoming auction of television frequencies in Italy but has

still not decided, its chief executive was quoted as saying on

Friday.

“It’s still early to say,” Andrea Zappia told Italy’s Il

Sole 24 Ore. “We will decide … only when all the details are

known.”

The Rome government said this week a competitive auction of

frequencies will be called within 120 days, reversing plans by

the previous administration led by Silvio Berlusconi – the key

shareholder in Italy’s biggest commercial broadcaster Mediaset

– to give them away in a so-called beauty contest.

Zappia said he recognized the government of Mario Monti had

taken an important step forward by “choosing a neutral

approach”.

The previous process for assigning frequencies drew

criticism for favouring incumbent broadcasters Mediaset and

state-owned RAI.

Mediaset refused to say on Wednesday whether it would take

part in the auction, already billed by some market observers as

unattractive.

Asked about an interest in buying Swisscom’s

Italian broadband unit Fastweb, Zappia said “at this moment

there are no talks in that regard”.