2013 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;
  • Fastweb buys 11% of Metroweb and begins deploying vectoring DSL;
  • Metroweb proposes €4.5 billion FttH network covering 30 cities;
  • regulator extends 3G licences to 2029 and GSM licences to 2027;
  • Hutchison fails in bid to merge H3 with TIM;
  • TIM closes mobile TV service;
  • 3 Italia signs seven-year managed services contract with Ericsson;
  • Dahlia TV folds;
  • SKY Italia and Fastweb team to provide bundled services;
  • Fastweb closes IPTV service;
  • State Council allows SKY Italia withdraws from tender for DTT frequencies;
  • SKY Italia reaches five million subscribers by end-2011;
  • TivùSat reports over one million active cards;
  • WiMAX operator Linkem trials LTE;
  • Digi Mobil launches mobile services tailored to Romanians in Italy;
  • regulator proposes lower MTRs to 2015;
  • Vodafone launches LTE;
  • spectrum auction opens up LTE sector and delivers €3.945 billion for the government;
  • MVNO customer base exceeds four million. 

Companies covered in this report include:

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

Researcher:- Henry Lancaster
Current publication date:- Date (11th Edition)

Executive Summary

Regulated pricing brings down wholesale fibre access costs, stimulates fibre deployment

BuddeComm’s annual publication, Italy - Telecoms, IP Networks, Digital Media and Forecasts, provides a comprehensive overview of the trends and developments in the telecommunications and digital media sectors of one of Europe’s largest markets. The report includes the regulator’s 2012 market data, telcos’ operating and financial data to Q1 2013 and market developments to mid-2013.

Telecom market overview

Italy has the fourth largest telecom market in Europe. Deeply affected by the country’s continuing economic difficulties, there remains deflationary pressure on telecom services as consumers cut back on discretionary spend. The base price for services continues to fall year-on-year, exacerbating operator’ falling revenue. This trend is expected to continue into 2014 as competition and regulated tariffs combine with changing customer usage of services. This has had a knock-on effect on investment as operators struggle to meet their investment commitments. Nevertheless, considerable efforts are being made to extend fibre networks, though outside a select few towns the cheaper FttC architecture dominates.

Mobile market

Mobile penetration is far ahead of the EU average, though distorted by the popular use of multiple SIM cards. The three largest MNOs have struggled with falling revenue and lower subscriber numbers during the last two years while the MVNO market has strengthened, broaching some five million subscribers by mid-2013. Market consolidation remains a possibility, with 3 Italia a distant fourth player. Talks on the operator’s potential merger with TIM were suspended in mid-2013 following the announcement that Telecom Italia would spin off its fixed-line infrastructure. Investments in LTE have led to a number of commercial launches, with operators planning to cover at least half of the population by the end of 2014. The trial of LTE by the WiMAX operator Linkem has shown the dominance of LTE over WiMAX among operators having access to technology-neutral spectrum.

Key telecom parameters – 2010; 2013

Sector

2010

2013 (e)

Subscribers by sector (million):

Fixed broadband subscribers

13.2

13.9

Mobile broadband

16.9

35.5

Mobile phone

91.1

93.1

Fixed-line telephony

22.5

21.1

Penetration by sector:

Fixed broadband

22.1%

22.9%

Mobile

148%

161%

Fixed-line

29%

26%

(Source: BuddeComm) 

Market Highlights

  • TI plans to invest €10 billion in its fibre-optic infrastructure over the next ten years. The spending will help the company’s new network unit Opac to extend broadband access. The regulator’s pricing for wholesale access to TI’s infrastructure are lower than TI’s suggested pricing, making it cheaper for ISPs to provide FttC and FttH services.
  • LTE trials by the WiMAX operator Linkem showcase the dominance of LTE for mobile broadband and the flexibility of spectrum usage.
  • The IPTV sector has suffered from cross platform competition, with a number of services closing in recent years. At the end of 2012 Fastweb also closed down its IPTV offer, having seen the number of subscribers fall to about 200,000.
  • In a bid to encourage greater competition, in 2013 the regulator banned RAI, Mediaset and Telecom Italia from applying for frequencies in the auction for three DTT multiplexes (L1, L2 and L3), reserving them for new entrants alone. Two lots are available to operators which already hold two multiplexes: RAI and Mediaset have four multiplexes and TI Media has three.
  • Italy’s parliament has passed legislation to implement the EU’s Digital Agenda which requires faster broadband services to be delivered nationally by 2020. Part of this legislation includes a €750 million investment to expand broadband access in underserved areas.
  • Fastweb’s €300 million project with TI and the local energy utility operator in Rome, ACEA, will extend fibre-optic coverage across in the city, delivering 100Mb/s services to over one million premises by the end of 2014 via a newly deployed 4,000km network. 

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 Market and Operators
    • 4.1 Overview of operators
    • 4.2 Telecom Italia
      • 4.2.1 Performance in 2013
      • 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 Vectoring DSL
      • 6.3.8 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 Key general trends
    • 7.2 Business models
      • 7.2.1 Bundled services
    • 7.3 Regulatory issues
      • 7.3.1 VoIP
    • 7.4 Digital TV (DTV)
      • 7.4.1 Broadband (IPTV)
      • 7.4.2 Cable TV (CATV)
      • 7.4.3 Satellite-based digital pay TV developments
      • 7.4.4 Digital Terrestrial TV (DTTV)
      • 7.4.5 Analogue switchover
      • 7.4.6 Digital TV network
      • 7.4.7 Digital cinema
      • 7.4.8 Video-on-Demand (VoD)
      • 7.4.9 Personal Video Recorders (PVRs)
      • 7.4.10 Free-to-Air (FTA) TV
      • 7.4.11 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 Rates (MTRs)
      • 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 ARPU – 2009 - 2015
    • 9.3 Forecasts – UMTS subscribers – 2009 - 2010; 2015
    • 9.4 Notes on scenario forecasts
    • Table 1 – Country statistics – 2012 (e)
    • Table 2 – Telecom revenue and investment statistics – 2011
    • Table 3 – Telephone network statistics – 2012
    • Table 4 – Internet user statistics – 2012
    • Table 5 – Broadband statistics – 2012
    • Table 6 – Mobile statistics – 2012
    • 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 - 2011
    • Table 10 – Share of fixed-line and mobile sector investment by operator – 2010 - 2011
    • Table 11 – Telco market share of subscribers, fixed and mobile services – 2008 - 2010
    • Table 12 – Fixed and mobile market revenue – 2006 - 2013
    • Table 13 – Retail revenue, fixed and mobile market – 2008 - 2011
    • Table 14 – Economic parameters: GDP, investment – 2009 - 2012
    • Table 15 – Fixed termination rates by company – 2007 - 2010
    • Table 16 – Telecom Italia wholesale access lines – 2007 - 2013
    • Table 17 – Cumulative numbers ported – 2002 - 2009
    • Table 18 – CPS lines – 2005 - 2010
    • Table 19 – Fixed-network access by type – 2008 - 2012
    • Table 20 – Fixed-line services revenue market share by operator – 2009 - 2010
    • Table 21 – Fixed-line voice revenue – 2009 - 2013
    • Table 22 – Telecom Italia fixed-line accesses by sector – 2006 - 2013
    • Table 23 – Telecom Italia fixed network revenue by sector – 2006 - 2013
    • Table 24 – Telecom Italia Group financial data – 2005 - 2013
    • Table 25 – Telecom Italia domestic revenue – 2005 - 2013
    • Table 26 – Wind subscribers by sector – 2006 - 2013
    • Table 27 – Wind annualised fixed-line ARPU – 2006 - 2013
    • Table 28 – Wind financial data – 2006 - 2013
    • Table 29 – Tiscali subscribers (Italy) – 2007 - 2013
    • Table 30 – Tiscali revenue by sector – 2006 - 2013
    • Table 31 – Tiscali revenue breakdown by sector – 2008 - 2013
    • Table 32 – Fastweb financial data (€) – 2005 - 2009
    • Table 33 – Fastweb financial data (CHF) – 2008 - 2013
    • Table 34 – Fastweb financial data (CHF) – 2008 - 2013
    • Table 35 – Fastweb financial data (CHF) – 2008 – 2013
    • Table 36 – Fastweb broadband subscribers – 2005 - 2013
    • Table 37 – Fixed-line accesses (Telecom Italia and altnets) – 2008 - 2012
    • Table 38 – Fixed-line access market share by operator – 2010 - 2012
    • Table 39 – Altnet fixed-line accesses by type – 2010 - 2012
    • Table 40 – Internet subscribers and penetration rate – 2005 - 2013
    • Table 41 – Total fixed retail broadband subscribers by access type – 2002 - 2013
    • Table 42 – Broadband penetration by technology – 2004 - 2012
    • Table 43 – Broadband revenue – 2008 – 2013
    • Table 44 – Broadband market share of revenue by operator – 2008 - 2010
    • Table 45 – Broadband market share of subscribers by operator – 2009 - 2012
    • Table 46 – New broadband subscribers by year – 2005 - 2013
    • Table 47 – Proportion of broadband connections by speed – 2009 - 2011
    • Table 48 – Telecom Italia NGN2 FttX deployment – 2009 - 2011
    • Table 49 – Proportion of DSL lines by speed – Jan 2012
    • Table 50 – DSL subscribers – 2002 - 2014
    • Table 51 – DSL market share by operator – 2011 - 2012
    • Table 52 – Telecom Italia share of broadband connections – 2008 - 2011
    • Table 53 – Telecom Italia broadband subscribers by sector – 2006 - 2013
    • Table 54 – Telecom Italia wholesale access lines – 2007 - 2013
    • Table 55 – Telecom Italia broadband ARPU – 2006 – 2013
    • Table 56 – Telecom Italia internet revenue – 2007 - 2013
    • Table 57 – Fastweb financial data – 2005 - 2013
    • Table 58 – Fastweb broadband subscribers – 2005 – 2013
    • Table 59 – Tiscali subscribers (Italy) – 2007 - 2013
    • Table 60 – Tiscali financial data – 2008 - 2013
    • Table 61 – Wind broadband subscribers – 2005 - 2013
    • Table 62 – Naked DSL lines – 2009 – 2012
    • Table 63 – FttH accesses – 2004 – 2013
    • Table 64 – NGN lines (FttX with VDSL/ADSL2+) – 2007 – 2016
    • Table 65 – Mobile broadband subscribers – 2010 - 2012
    • Table 66 – Mobile broadband traffic – 2011 - 2012
    • Table 67 – Revenue by broadcaster – 2009 - 2011
    • Table 68 – Pay TV subscribers by technology – 2003 - 2010
    • Table 69 – TV revenue by platform (Pay, FTA) – 2009 - 2011
    • Table 70 – Pay TV market share by operator – 2009 - 2011
    • Table 71 – TV subscribers by platform – 2010; 2012
    • Table 72 – Telecom Italia IPTV subscribers – 2007 - 2012
    • Table 73 – Cable TV subscribers and penetration rate – 1996 – 2011; 2015
    • Table 74 – Forecast satellite TV penetration – 2007 - 2015
    • Table 75 – SKY Italia subscribers – 2006 - 2012
    • Table 76 – SKY Italia financial data – 2007 - 2012
    • Table 77 – Mediaset financial data (Italy) – 2006 - 2013
    • Table 78 – Mediaset Premium active clients – 2007 - 2011
    • Table 79 – DTTV receivers, forecasts and annual change – 2004 - 2013
    • Table 80 – Telecom Italia VoIP subscribers – 2006 - 2012
    • Table 81 – Mobile subscribers and penetration rate – 2005 - 2014
    • Table 82 – Mobile market revenue – 2008 – 2013
    • Table 83 – Annual revenue per active SIM – 2008 - 2012
    • Table 84 – Revenue by service – 2009 - 2011
    • Table 85 – Revenue per user, by service – 2009 - 2011
    • Table 86 – Mobile market investments – 2009 - 2013
    • Table 87 – Mobile market share of subscribers by operator – 2004 - 2012
    • Table 88 – Total spectrum outlay by operator (€) – 2011
    • Table 89 – European roaming charges – 2007 – 2011; 2014
    • Table 90 – Cumulative mobile numbers ported – 2003 – 2012
    • Table 91 – Annual mobile numbers portings – 2002 – 2012
    • Table 92 – Mobile termination rates – 2008 - 2013
    • Table 93 – UMTS/HSPA subscribers – 2004 - 2013
    • Table 94 – 3 Italia mobile subscribers – 2008 - 2012
    • Table 95 – 3 Italia annualised ARPU – 2008 - 2012
    • Table 96 – 3 Italia mobile revenue – 2008 - 2012
    • Table 97 – TIM mobile subscribers – 2005 - 2013
    • Table 98 – TIM mobile revenue by sector, annual change – 2008 - 2013
    • Table 99 – Vodafone subscribers – 2001 - 2013
    • Table 100 – Vodafone revenue by sector – 2009 - 2013
    • Table 101 – Vodafone prepaid, contract and blended ARPU (€) – 2004 - 2013
    • Table 102 – Vodafone mobile customer cost – 2007 - 2013
    • Table 103 – Wind operational statistics and mobile revenue – 2005 – 2013
    • Table 104 – Wind annualised mobile ARPU – 2005 - 2013
    • Table 105 – Wind mobile subscriber statistics – 2005 - 2013
    • Table 106 – MVNO mobile subscribers and revenue – 2008 - 2013
    • Table 107 – MVNO subscribers by operator – 2009 - 2010
    • Table 108 – MVNO market share of MVNO subscribers – 2010 - 2012
    • Table 109 – Prepaid cards in service – 2009 - 2012
    • Table 110 – SMS/MMS and other data revenue – 2008 - 2011
    • Table 111 – Vodafone data as proportion of service revenue – 2005 - 2013
    • Table 112 – Mobile data revenue as proportion of total – 2004 - 2013
    • Table 113 – Growth in mobile data use – 2007 - 2012
    • Table 114 – Mobile data traffic – 2008 - 2015
    • Table 115 – Forecast broadband subscribers – higher market growth scenario – 2007 - 2013; 2020
    • Table 116 – Forecast broadband subscribers – lower market growth scenario – 2007 - 2013; 2020
    • Table 117 – Forecast mobile ARPU – 2005 - 2015
    • Table 118 – Forecast UMTS subscribers and penetration rate – 2008 - 2010; 2015
    • Chart 1 – Fixed and mobile market investment – 2004 - 2011
    • Chart 2 – Total fixed and mobile market revenue – 2006 - 2013
    • Chart 3 – Retail revenue, fixed and mobile market – 2008 - 2011
    • Chart 4 – Telecom Italia wholesale access lines – 2007 - 2013
    • Chart 5 – Telecom Italia fixed-line accesses by sector – 2006 - 2013
    • Chart 6 – Telecom Italia fixed network revenue by sector – 2006 - 2013
    • Chart 7 – Telecom Italia Group financial data – 2006 - 2013
    • Chart 8 – Telecom Italia domestic revenue – 2005 - 2013
    • Chart 9 – Wind financial data – 2006 – 2013
    • Chart 10 – Tiscali subscribers (Italy) – 2007 - 2013
    • Chart 11 – Tiscali revenue by sector – 2006 - 2013
    • Chart 12 – Internet subscribers and penetration rate – 2002 - 2013
    • Chart 13 – Total fixed broadband subscribers by access type – 2002 – 2013
    • Chart 14 – Telecom Italia broadband subscribers by sector – 2006 - 2013
    • Chart 15 – Telecom Italia wholesale access lines – 2007 - 2013
    • Chart 16 – Tiscali subscribers (Italy) – 2007 - 2013
    • Chart 17 – Tiscali financial data – 2008 - 2013
    • Chart 18 – Revenue by broadcaster – 2009 – 2011
    • Chart 19 – Mediaset financial data (Italy and Spain) – 2006 – 2013
    • Chart 20 – Mobile subscribers and penetration rate – 2002 - 2014
    • Chart 21 – Mobile market revenue – 2008 - 2013
    • Chart 22 – Annual revenue per active SIM – 2008 - 2012
    • Chart 23 – Revenue by service – 2009 – 201
    • Chart 24 – Mobile market share of subscribers by operator – 2004 – 2012
    • Chart 25 – 3 Italia mobile subscribers – 2008 - 2012
    • Chart 26 – 3 Italia annualised ARPU – 2008 – 2012
    • Chart 27 – TIM annualised ARPU – 2005 – 2013
    • Chart 28 – TIM revenue by sector, annual change – 2008 – 2013
    • Chart 29 – Vodafone prepaid, contract and blended ARPU (€) – 2004 - 2013
    • Chart 30 – SMS/MMS and other data revenue – 2008 - 2011
    • 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
    • Exhibit 9 – Spectrum allocations at auction – 2011

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