The CEO of Telecom Italia said consolidation in Italy would help the improvement it is seeing in its home market as it unveiled its latest financial results.
Three Italia and Wind are to merge, creating a mobile operator with a roughly equal share of the market to the incumbent.
Marco Patuano suggested the deal would continue the “cooling off” of competitive pressure that the operator alluded to in its financials, which saw group revenues fall 4.3 percent year-on-year to €10.1 billion in the first half of the year.
In Italy, sales were down over two percent to €7.4 billion but the operator pointed to the fact that the declines continued to slow.
The Q2 fall was less than the 2.6 percent drop recorded in Q1 and the 5.0 percent decline recorded for the fourth quarter of 2014, for example.
It said it had reduced the number of mobile offers from 100 to 12 and expected to increase the number of Pay TV customers from 395,000 to 550,000 by end of the year.
In Brazil, meanwhile, revenues fell by 10 percent to €2.7 billion in what TIM described as a “difficult” quarter.
Group EBITDA was down 16 percent to €3.6 billion, partly due to the negative impact of non-recurring items worth €399 million.
Capex rose by a quarter as the operator continued its multi-billion euro network investment programme, as outlined in February.
Inwit, the mobile tower business TIM listed in May, strengthened the balance sheet by €253 million.
Telecom Italia CEO Marco Patuano said: "The results of the second quarter of the year show solid improvement in turnover in Italy, which has grown by 113 million euros as compared with the first three months of the year, rising both in fixed and mobile.
“TIM is once again confirmed as the country's top mobile operator, increasing revenues from innovative services by 21.8% on 2014.
"The fixed ultrabroadband clearly shows the benefits of the agreements we are stipulating with contents providers, increasing the demand for connection.”