2012 Italy - Telecoms, IP Networks, Digital Media and Forecasts

Publication Overview

This report provides a comprehensive overview of trends and developments in Italy’s telecommunications market. The report analyses the mobile, internet, broadband, digital TV and converging media sectors. Subjects include:

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Infrastructure;
  • Major Players, Revenues, Subscribers, ARPU, MoU;
  • Internet, VoIP, IPTV;
  • Mobile Voice and Data Markets;
  • Broadband (FttH, DSL, cable TV, wireless);
  • Convergence and Digital Media;
  • 3G subscriber and mobile ARPU forecasts to 2015;
  • Broadband market forecasts for selective years to 2020.

Key developments:

NGN Committee works on open access network, Fastweb, Wind and Vodafone continue with €2.5 billion NGN project; Milan’s Metroweb sold to F2i and IMI Investimenti; TI sets up JV to build open access fibre network covering 80% of buildings in Milan; Fastweb bundles broadband with Sky Italia; Metroweb proposes €4.5 billion FttH network covering 30 cities; regulator extends 3G licences to 2029 and GSM licences to 2027; TIM contracts NSN for LTE base stations; mobile market value falls to an estimated €17.4 billion in 2011; TIM to close mobile TV service; 3 Italia contracts Ericsson for seven-year managed services deal; Digi Mobil launches mobile services tailored to Romanians in Italy; regulator proposes lower MTRs to 2015; spectrum auction opens up LTE sector and delivers €3.945 billion for the government; MVNO customer base exceeds four million; DTT spectrum auction expected later in 2012; Dahlia TV folds; SKY Italia and Fastweb team to provide bundled services; regulator addresses fibre network open access; FiberCo to coordinate fibre deployments to 20 million people in 15 cities by 2015; Telecom Italia commitment to deliver FttH/FttB to an additional 138 cities by 2018; TivùSat reports over one million active cards; regulator’s 2011 market data; telco operating and financial  data to March 2012; market developments to mid-2012.

Companies covered in this report include:

3 Italia, TIM, Vodafone, Wind, Telecom Italia, Metroweb, Fastweb, Tiscali, BT Italia, SKY Italia, Tivùsat.

Researcher:- Henry Lancaster
Current publication date:- July 2012 (10th Edition) 

Executive Summary

Concerted efforts to deliver widespread FttH by 2015

BuddeComm’s quarterly publication, Italy - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in one of southern Europe’s largest countries. The report includes the regulator’s market data to the end of 2011, telcos’ financial and operating data to March 2012, and market developments into mid-2012.

Economic background

Italy has become one of the principal casualties of the difficult economic conditions. The country’s economy has been stagnant for years, with small businesses unable to compete with Asian imports. Government fiscal difficulties, compounded by low tax revenue, resulted in government debt reaching some €1.9 trillion. Servicing this debt became unmanageable by the end of 2011. A government at the end of the year implemented a package of austerity measures designed to cut debt and avert financial collapse. Yet by mid-2012 the country had slid deeper into recession, with GDP expected to shrink by 1.9% in the year, while economic output is forecast to be 6% below its peak in 2008.

Telecom market overview

Italy has the fourth largest telecom market in Europe. Its value has fallen steadily since 2008, though partly buttressed by the internet access and mobile data markets. Telecom Italia dominates all market sectors despite effective competition. Mobile penetration is far higher than the EU average, while the four active MNOs have made great strides in developing LTE networks to support consumer use of mobile data services, and so develop a key revenue stream for coming years.

Fibre broadband market

The fast developing fibre market is largely directed by the NGN Committee, set up in late 2010 and formed around a nucleus of industrial partners and telcos. The Committee manages collaborative projects aimed at delivering FttX to 20 million people by 2015. In addition, Telecom Italia is committed to bringing FttH/FttB to 138 cities by 2018. A separate group of telcos set up FiberCo as a vehicle company to oversee passive infrastructure, with the regulator charged with developing a framework for equal infrastructure access. These schemes should bring much needed rationality to the country’s approach towards a fibre-based NGN, so reducing costs and effectively extending the network beyond urban areas.

Key telecom parameters – 2010; 2012

Sector

2010

2012

Subscribers by sector (million):

Fixed broadband subscribers

13.2

14.1

Mobile broadband

16.9

21.5

Mobile phone

91.1

94.4

Fixed-line telephony

22.4

21.5

Penetration by sector:

Fixed broadband

21.9%

24.8%

Mobile

148%

156%

Fixed-line

30%

28%

(Source: BuddeComm)

 

Market Highlights

  • In 2004, only 4% of mobile subscribers in Italy used 3G technology, but by mid- 2012 this had increased to about 50%, one of the highest proportions in Europe.
  • Revenue per active SIM card has fallen by about 15% since 2008 in the wake of competitive pressure and regulatory measures.
  • An auction to reallocate TV frequencies, expected in late 2012, will address efficiency in spectrum use as well as the need for the government to secure up to €1.2 billion in revenue. Licences for frequencies in the 700MHz range will be focussed on enabling broadband access from 2015.
  • Fibre broadband developments are quickening, with Metroweb planning a scheme worth some €4.5 billion and covering 30 major cities by 2015.
  • The drive towards LTE has been facilitated by operators gaining access to the 1800MHz band at the end of 2011. The 2.6GHz band will be available by the end of 2012, and the 800MHz band at the start of 2013, following analogue switch-off by broadcasters.

This report is essential reading for those needing high level strategic information and objective analysis on the telecom sector in Italy. It provides further information on:

  • Market liberalisation and regulatory issues;
  • The impact of the global economic crisis;
  • Telecoms operators – privatisation, acquisitions, new licences;
  • Mobile data market developments in coming years in light of spectrum auctions and new license awards;
  • 3G developments, regulatory issues and technologies including HSPA and LTE;
  • Broadband migration to an FttH architecture;
  • Historical and current subscriber statistics and forecasts;
  • ARPU statistics and forecasts.

Data in this report is the latest available at the time of preparation and may not be for the current year.

Table of Contents

  • 1. Key Statistics
  • 2. Telecommunications Market
    • 2.1 Overview of Italy’s telecom market
    • 2.2 Economic difficulties
  • 3. Regulatory Environment
    • 3.1 Overview
    • 3.2 Regulatory authority
      • 3.2.1 Communications Regulatory Authority (AGCOM)
    • 3.3 Telecom sector liberalisation in Italy
      • 3.3.1 Privatisation of Telecom Italia
      • 3.3.2 Interconnect
      • 3.3.3 Access
      • 3.3.4 Number portability (NP)
      • 3.3.5 Carrier PreSelection (CPS)
  • 4. Fixed Network Operators
    • 4.1 Overview of operators
    • 4.2 Telecom Italia
      • 4.2.1 Performance in 2012
      • 4.2.2 Organisational change
      • 4.2.3 Functional separation
      • 4.2.4 Company sale
    • 4.3 Wind Telecom
    • 4.4 BT Italia
    • 4.5 Tiscali
      • 4.5.1 Tiscali operational data
    • 4.6 Fastweb
      • 4.6.1 Fastweb operational data
  • 5. Telecommunications Infrastructure
    • 5.1 National telecom network
    • 5.2 International
      • 5.2.1 Submarine cable networks
      • 5.2.2 Satellite networks
    • 5.3 Infrastructure developments
      • 5.3.1 Next Generation Network (NGN)
  • 6. Broadband Market
    • 6.1 Overview
      • 6.1.1 Broadband statistics
      • 6.1.2 Government support
      • 6.1.3 Regional development
    • 6.2 Cable modems
    • 6.3 Asymmetrical Digital Subscriber Line (ADSL)
      • 6.3.1 Wholesale market
      • 6.3.2 Telecom Italia
      • 6.3.3 Fastweb
      • 6.3.4 Tiscali
      • 6.3.5 Wind
      • 6.3.6 ADSL2+
      • 6.3.7 Naked DSL
    • 6.4 Fibre-to-the-Home (FttH) networks
      • 6.4.1 Overview
      • 6.4.2 Telecom Italia
      • 6.4.3 Fastweb
      • 6.4.4 Rival networks
      • 6.4.5 Other developments
    • 6.5 Wireless broadband
      • 6.5.1 Wireless Local Loop (WLL)
      • 6.5.2 Wireless LANs/WiFi
      • 6.5.3 WiMAX
    • 6.6 Mobile broadband
    • 6.7 Internet via satellite
  • 7. Digital Media
    • 7.1 Overview
    • 7.2 Key general trends
    • 7.3 Business models
      • 7.3.1 Bundled services
    • 7.4 Regulatory issues
      • 7.4.1 VoIP
    • 7.5 Digital TV (DTV)
      • 7.5.1 Broadband (IPTV)
      • 7.5.2 Cable TV (CATV)
      • 7.5.3 Satellite-based digital pay TV developments
      • 7.5.4 Digital Terrestrial TV (DTTV)
      • 7.5.5 Analogue switchover
      • 7.5.6 Digital TV network
      • 7.5.7 Digital cinema
      • 7.5.8 Video-on-Demand (VoD)
      • 7.5.9 Personal Video Recorders (PVRs)
      • 7.5.10 Free-to-Air (FTA) TV
      • 7.5.11 VoIP
  • 8. Mobile Communications
    • 8.1 Overview of Italy’s mobile market
      • 8.1.1 Mobile statistics
      • 8.1.2 Operator market shares
    • 8.2 Regulatory issues
      • 8.2.1 Spectrum regulations and spectrum auctions
      • 8.2.2 Roaming
      • 8.2.3 Network sharing
      • 8.2.4 Mobile Number Portability (MNP)
      • 8.2.5 Mobile termination
      • 8.2.6 Fixed-mobile convergence (FMC)
    • 8.3 Mobile technologies
      • 8.3.1 Digital
      • 8.3.2 Third Generation (3G) mobile
    • 8.4 Major mobile operators
      • 8.4.1 3 Italia
      • 8.4.2 TIM
      • 8.4.3 Vodafone Italy
      • 8.4.4 Wind
      • 8.4.5 MVNOs
    • 8.5 Mobile voice services
      • 8.5.1 Prepaid
    • 8.6 Mobile Messaging
      • 8.6.1 Short Messaging Service (SMS)
      • 8.6.2 Multimedia Messaging Services (MMS)
    • 8.7 Mobile data services
      • 8.7.1 Overview
      • 8.7.2 General Packet Radio Service (GPRS)
      • 8.7.3 High-Speed Packet Access (HSPA)
      • 8.7.4 Evolved HSPA (HSPA+)
      • 8.7.5 Long-term Evolution (LTE)
      • 8.7.6 Femtocells
      • 8.7.7 Mobile TV
    • 8.8 Mobile content and applications
      • 8.8.1 Location-based services
      • 8.8.2 Mobile banking/ticketing
      • 8.8.3 Payment services
  • 9. Forecasts
    • 9.1 Forecasts – broadband subscribers – 2009 - 2013; 2020
      • 9.1.1 Scenario 1 – higher broadband subscriber growth
      • 9.1.2 Scenario 2 – lower broadband subscriber growth
    • 9.2 Forecasts - Mobile
      • 9.2.1 Forecasts – Mobile ARPU – 2009 - 2015
      • 9.2.2 Forecasts – UMTS subscribers – 2009 - 2010; 2015
  • 10. Glossary of Abbreviations
  • Table 1 – Country statistics – 2012 (e)
  • Table 2 – Telecom revenue and investment statistics – 2010
  • Table 3 – Telephone network statistics – March 2012 (e)
  • Table 4 – Internet user statistics – 2012 (e)
  • Table 5 – Broadband statistics – 2012 (e)
  • Table 6 – Mobile statistics – 2012 (e)
  • Table 7 – National telecommunications authority
  • Table 8 – Index of base prices, fixed and mobile services – 2007 - 2012
  • Table 9 – Fixed and mobile market investment – 2004 - 2010
  • Table 10 – Telco market share, fixed and mobile services – 2008 - 2010
  • Table 11 – Fixed and mobile market revenue – 2006 - 2012
  • Table 12 – Retail revenue, fixed and mobile market – 2008 - 2010
  • Table 13 – Economic parameters: GDP, investment – 2009 - 2012
  • Table 14 – Fixed termination rates by company – 2007 - 2010
  • Table 15 – Telecom Italia wholesale access lines – 2007 - 2012
  • Table 16 – Cumulative numbers ported – 2002 - 2009
  • Table 17 – CPS lines – 2005 - 2010
  • Table 18 – Fixed-network access by type – 2008 - 2012
  • Table 19 – Fixed-line services revenue market share by operator – 2009 - 2010
  • Table 20 – Fixed-line voice revenue – 2009 - 2013
  • Table 21 – Telecom Italia fixed-line accesses by sector – 2006 - 2012
  • Table 22 – Telecom Italia fixed network revenue by sector – 2006 - 2012
  • Table 23 – Telecom Italia Group financial data – 2005 - 2012
  • Table 24 – Telecom Italia domestic revenue – 2005 - 2012
  • Table 25 – Wind subscribers by sector – 2006 - 2012
  • Table 26 – Wind annualised fixed-line ARPU – 2006 - 2011
  • Table 27 – Wind financial data – 2006 - 2012
  • Table 28 – Tiscali subscribers (Italy) – 2007 - 2011
  • Table 29 – Tiscali revenue by sector – 2006 - 2012
  • Table 30 – Tiscali revenue breakdown by sector – 2007 - 2012
  • Table 31 – Fastweb financial data (€) – 2005 - 2009
  • Table 32 – Fastweb financial data (CHF) – 2008 - 2012
  • Table 33 – Fastweb broadband subscribers – 2005 - 2012
  • Table 34 – Fixed-line accesses (Telecom Italia and altnets) – 2008 - 2012
  • Table 35 – Fixed-line access market share by operator – 2010 - 2012
  • Table 36 – Altnet fixed-line accesses by type – 2010 - 2012
  • Table 37 – Internet subscribers and penetration rate – 1991 - 2013
  • Table 38 – Total fixed retail broadband subscribers by access type – 2002 - 2012
  • Table 39 – Broadband penetration by technology – 2004 - 2011
  • Table 40 – Broadband revenue – 2008 – 2013
  • Table 41 – Broadband market share of revenue by operator – 2008 - 2010
  • Table 42 – Broadband market share of subscribers by operator – 2009 - 2012
  • Table 43 – New broadband subscribers by year – 2005 - 2013
  • Table 44 – Proportion of broadband connections by speed – 2009 - 2010
  • Table 45 – Telecom Italia NGN2 FttX deployment – 2009 - 2011
  • Table 46 – DSL subscribers – 2002 - 2013
  • Table 47 – DSL market share by operator – 2011 - 2012
  • Table 48 – Telecom Italia share of broadband connections – 2008 - 2011
  • Table 49 – Telecom Italia broadband subscribers by sector – 2006 - 2012
  • Table 50 – Telecom Italia wholesale access lines – 2007 - 2012
  • Table 51 – Telecom Italia broadband ARPU – 2006 – 2012
  • Table 52 – Telecom Italia internet revenue – 2007 - 2011
  • Table 53 – Fastweb financial data – 2005 - 2012
  • Table 54 – Fastweb broadband subscribers – 2005 – 2012
  • Table 55 – Tiscali subscribers (Italy) – 2007 - 2012
  • Table 56 – Tiscali financial data – 2008 - 2012
  • Table 57 – Wind broadband subscribers – 2005 - 2012
  • Table 58 – FttH accesses – 2004 – 2012
  • Table 59 – Telecom Italia fibre accesses – 2007 - 2010
  • Table 60 – Telecom Italia projected network cabinets – 2008 - 2010
  • Table 61 – Mobile broadband subscribers by type – 2008 - 2009
  • Table 62 – Mobile broadband subscribers – 2010 - 2012
  • Table 63 – Mobile broadband traffic – 2011 - 2012
  • Table 64 – Market share by broadcaster – 2009 - 2010
  • Table 65 – Revenue by broadcaster – 2009 - 2010
  • Table 66 – Pay TV subscribers by technology – 2003 - 2010
  • Table 67 – Pay TV revenue by platform – 2008 - 2009
  • Table 68 –TV revenue by platform (Pay, FTA) – 2009 - 2010
  • Table 69 – Pay TV market share by operator – 2009 - 2010
  • Table 70 – Telecom Italia IPTV subscribers – 2007 - 2012
  • Table 71 – Cable TV subscribers and penetration rate – 1996 – 2011; 2015
  • Table 72 – Forecast satellite TV penetration – 2007 - 2015
  • Table 73 – SKY Italia subscribers – 2006 - 2012
  • Table 74 – SKY Italia financial data – 2007 - 2011
  • Table 75 – Mediaset financial data – 2006 - 2012
  • Table 76 – Mediaset revenue (Italy) – 2007 - 2011
  • Table 77 – Mediaset Premium active clients – 2007 - 2011
  • Table 78 – DTTV receivers, forecasts and annual change – 2004 - 2013
  • Table 79 – Telecom Italia VoIP subscribers – 2006 - 2012
  • Table 80 – Mobile operators, subscribers and annual change – Mar 2012
  • Table 81 – Mobile subscribers and penetration rate – 1995; 1997; 1999 - 2013
  • Table 82 – Mobile market revenue – 2008 – 2012
  • Table 83 – Mobile market share of revenue by operator – 2008 - 2010
  • Table 84 – Revenue per active SIM – 2008 - 2012
  • Table 85 – Revenue by service – 2009 - 2010
  • Table 86 – Revenue per user, by service – 2009 - 2010
  • Table 87 – Mobile market investments – 2009 - 2012
  • Table 88 – Mobile market share of subscribers by operator – 2004 - 2012
  • Table 89 – Mobile market share of subscribers by operator – 2004 - 2012
  • Table 90 – European roaming charges – 2007 – 2011; 2014
  • Table 91 – Cumulative mobile numbers ported – 2003 – 2012
  • Table 92 – Annual mobile numbers portings – 2002 – 2012
  • Table 93 – Mobile termination rates – 2008 - 2012
  • Table 94 – Proposed mobile termination rates – 2012 - 2015
  • Table 95 – UMTS/HSPA subscribers – 2004 - 2012
  • Table 96 – 3 Italia mobile subscribers – 2008 - 2012
  • Table 97 – 3 Italia annualised ARPU – 2008 - 2011
  • Table 98 – 3 Italia mobile revenue – 2008 - 2010
  • Table 99 – TIM mobile subscribers – 2005 - 2012
  • Table 100 – TIM mobile revenue by sector, annual change – 2008 - 2012
  • Table 101 – Vodafone subscribers – 2001 - 2011
  • Table 102 – Vodafone revenue by sector – 2008 - 2012
  • Table 103 – Vodafone prepaid, contract and blended ARPU (€) – 2004 - 2012
  • Table 104 – Vodafone mobile customer cost – 2007 - 2011
  • Table 105 – Wind operational statistics and revenue – 2005 – 2012
  • Table 106 – Wind annualised mobile ARPU – 2005 - 2011
  • Table 107 – Wind mobile subscriber statistics – 2005 - 2012
  • Table 108 – MVNO mobile subscribers and revenue – 2008 - 2012
  • Table 109 – MVNO market share of revenue, subscribers – 2009 - 2011
  • Table 110 – MVNO subscribers by operator – 2009 - 2010
  • Table 111 – MVNO market share of MVNO subscribers – 2010 - 2012
  • Table 112 – Prepaid cards in service – 2009 - 2012
  • Table 113 – SMS/MMS and other data revenue – 2008 - 2010
  • Table 114 – Vodafone data as proportion of revenue – 2005 - 2012
  • Table 115 – Mobile data revenue as proportion of total – 2004 - 2013
  • Table 116 – Growth in mobile data use – 2007 - 2012
  • Table 117 – Mobile data traffic – 2010 - 2015
  • Table 118 – Forecast broadband subscribers – higher market growth scenario – 2009 - 2013; 2020
  • Table 119 – Forecast broadband subscribers – lower market growth scenario – 2009 - 2013; 2020
  • Table 120 – Forecast mobile ARPU – 2009 - 2015
  • Table 121 – Forecast UMTS subscribers and penetration rate – 2009 - 2010; 2015
  • Chart 1 – Fixed and mobile market investment – 2004 - 2010
  • Chart 2 – Total fixed and mobile market revenue – 2006 - 2012
  • Chart 3 – Retail revenue, fixed and mobile market – 2008 - 2010
  • Chart 4 – Telecom Italia wholesale access lines – 2007 - 2012
  • Chart 5 – Telecom Italia fixed-line accesses by sector – 2006 - 2012
  • Chart 6 – Telecom Italia fixed network revenue by sector – 2006 - 2012
  • Chart 7 – Telecom Italia Group financial data – 2006 - 2012
  • Chart 8 – Telecom Italia domestic revenue – 2005 - 2012
  • Chart 9 – Wind financial data – 2006 – 2012
  • Chart 10 – Tiscali subscribers (Italy) – 2007 - 2011
  • Chart 11 – Tiscali revenue by sector – 2006 - 2012
  • Chart 12 – Internet subscribers and penetration rate – 2002 - 2013
  • Chart 13 – Total fixed broadband subscribers by access type – 2002 – 2012
  • Chart 14 – Telecom Italia broadband subscribers by sector – 2006 - 2012
  • Chart 15 – Telecom Italia wholesale access lines – 2007 - 2012
  • Chart 16 – Tiscali subscribers (Italy) – 2007 - 2012
  • Chart 17 – Tiscali financial data – 2008 - 2012
  • Chart 18 – Revenue by broadcaster – 2009 – 2010
  • Chart 19 – Pay TV revenue by platform – 2008 - 2009
  • Chart 20 – Mediaset financial data – 2006 – 2012
  • Chart 21 – Mobile subscribers and penetration rate – 2002 - 2013
  • Chart 22 – Mobile market revenue – 2008 - 2012
  • Chart 23 – Revenue per active SIM – 2008 - 2012
  • Chart 24 – Revenue by service – 2009 – 2010
  • Chart 25 – 3 Italia mobile subscribers – 2008 - 2012
  • Chart 26 – 3 Italia annualised ARPU – 2008 – 2011
  • Chart 27 – TIM annualised ARPU – 2005 – 2012
  • Chart 28 – TIM revenue by sector, annual change – 2008 – 2012
  • Chart 29 – Vodafone prepaid, contract and blended ARPU (€) – 2004 - 2012
  • Chart 30 – SMS/MMS and other data revenue – 2008 - 2010
  • Exhibit 1 – EU – The New Regulatory Framework (NRF)
  • Exhibit 2 – Access and the local loop
  • Exhibit 3 - Principal backbone providers – 2012
  • Exhibit 4 – WiMAX licensees – 2010
  • Exhibit 5 – Overview of digital media
  • Exhibit 6 – DTTV ASO by region – 2008 - 2012
  • Exhibit 7 – UMTS auction results – 2000
  • Exhibit 8 – UMTS auction results – 2009

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