Initial bids for govt auction worth combined €2.3 billion.

Telecom Italia SpA, Italy\'s largest telecommunications operator, will invest at least EUR1 billion in the new fourth-generation mobile frequencies that the Italian government has put up for auction, Chief Operating Officer Marco Patuano said Friday.

Italy\'s government said it had received initial offers worth a combined EUR2.3 billion for the 4G mobile frequencies in the auction, which started Wednesday. Telecoms operators that are participating in the auction--including Telecom Italia, Vodafone Group Plc, Wind Telecommunicazioni SpA of VimpelCom Ltd., and Hutchison Whampoa Ltd.\'s 3 Italia--will now be allowed to raise their bids.

Industry Minister Paolo Romani has previously said he expects proceeds from the auction to total at least EUR3.1 billion.