2014 Italy - Telecoms, IP Networks, Digital Media and Forecasts

Publication Overview

This report analyses the key aspects of the Italian telecom market, providing the latest data and statistics on the country and the fixed network services sector. It also reviews the key regulatory issues including number portability and local loop unbundling. The report also provides statistics on the wireless and fixed-line broadband market, including the burgeoning fibre sector. On the mobile market it provides statistics, an assessment of key regulatory issues and of mobile data services, and also profiles the major providers and the likely impact of emerging technologies on their strategies for coming years.

Researcher:- Henry Lancaster
Current publication date:- September 2014 (12th Edition)

Executive Summary

Municipal fibre deployments help push up fibre penetration

Italy’s large telecom market boasts one of the highest rates for mobile penetration in Europe, while the fibre-optic sector has seen significant development in recent years, both in operator investment and in regulatory measures to encourage network sharing. Broadband uptake is growing steadily as a result of fibre and ADSL2+ infrastructure upgrades, though the country still lags behind benchmark countries for average broadband access speeds. The fixed-line sector continues to dwindle as consumers adopt mobile-only solutions and VoIP.

The broadband market has a competitive the DSL sector. In the absence of effective cross-platform competition from cable networks, services based on upgraded DSL networks have benefited from the market entry of new players such as Vodafone. Several operators have invested in ADSL2+ and VDSL infrastructure, propelling the market for high-bandwidth bundled services. Although the DSL sector has benefited from investment and technology upgrades, the need to deliver faster services will encourage a deeper emphasis on fibre deployments. Here, operator efforts have been supplemented by investment from regional governments. Regulatory measures have also been taken to ease access to NGNs.

Italy’s market for bundled services and converging media applications has been strengthened by the excellent DSL broadband network and the expanding fibre footprint. The digital TV market has progressed well, with a number of regions having switched to digital terrestrial TV and with broadcasters having set up a second DTH satellite platform to compete with SKY Italia. Satellite TV remains the main pay TV platform in the absence of cable TV, while IPTV has an increasing presence strengthened by upgraded fixed-line delivery networks. This report analyses Italy’s market for bundled services and digital media, providing an overview of the country’s digital TV markets and an assessment of regulatory and market measures following analogue switchover.

Italy’s vibrant mobile market is dominated by three operators, TIM, Vodafone Italia and Wind, while the fourth player 3 Italia has steadily made progress with customer growth. All four providers now operate LTE networks, and significant investments in network upgrades have provided rich opportunities for mobile data use among consumers.

Key developments:

Regulator addresses fibre network open access; proposed FiberCo to coordinate fibre deployments to 20 million people in 15 cities by 2015; Telecom Italia commits to deliver FttP/FttB to an additional 138 cities by 2018, suspends decision to spin off access network into separate company; 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; Sky Italia sold to Twentieth Century Fox; Fastweb buys 11% of Metroweb and begins deploying vectoring DSL; Metroweb proposes €4,5 billion FttP network covering 30 cities; Vodafone Group secures 100% of Vodafone Italy; government aims to quadruple tax on smartphones; Vodafone to extend LTE coverage to 90% of the population by the end of 2016; regulator extends 3G licences to 2029 and GSM licences to 2027; TIM closes mobile TV service; spectrum auction opens up LTE sector and delivers €3.945 billion for the government; MVNO customer base exceeds four million; regulator’s 2013 market report and q1 2014 market update; telcos’ operating and financial data to Q2 2014; market developments into 2014

Companies and subsidiaries mentioned in this report include:

Telecom Italia, Fastweb, Wind, BT Italia, Tiscali, Metroweb, Vodafone Italia, Tiscali, Sky Italia, TivùSat, 3 Italia

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 Financial and operating performance
      • 4.2.2 Organisational change
      • 4.2.3 Functional separation
      • 4.2.4 Spin-off plan aborted
      • 4.2.5 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-Premises (FttP) 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
      • 7.1.1 Key general trends
      • 7.1.2 Business models
      • 7.1.3 Regulatory issues
    • 7.2 Digital TV (DTV)
      • 7.2.1 Broadband (IPTV)
      • 7.2.2 Cable TV (CATV)
      • 7.2.3 Satellite-based digital pay TV developments
      • 7.2.4 Digital Terrestrial TV (DTTV)
      • 7.2.5 Analogue switchover
      • 7.2.6 Digital TV network
      • 7.2.7 Digital cinema
      • 7.2.8 Video-on-Demand (VoD)
      • 7.2.9 Personal Video Recorders (PVRs)
      • 7.2.10 Free-to-Air (FTA) TV
      • 7.2.11 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 Downlink Access (HSDPA)
      • 8.7.4 High Speed Uplink Packet Access (HSUPA)
      • 8.7.5 Evolved HSPA (HSPA+)
      • 8.7.6 Long-term Evolution (LTE)
      • 8.7.7 Femtocells
      • 8.7.8 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
      • 8.8.4 Machine-to-Machine (M2M)
  • 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
    • Table 1 – Country statistics – 2014 (e)
    • Table 2 – Telecom revenue and investment statistics – 2012
    • Table 3 – Telephone network statistics – 2014 (e)
    • Table 4 – Internet user statistics – 2014 (e)
    • Table 5 – Broadband statistics – 2014 (e)
    • Table 6 – Mobile statistics – 2014 (Mar)
    • 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 - 2012
    • Table 10 – Share of fixed-line and mobile sector investment by operator – 2010 - 2012
    • Table 11 – Telecom market share of subscribers, fixed and mobile services – 2008 - 2010
    • Table 12 – Fixed and mobile market revenue – 2006 - 2014
    • Table 13 – Retail revenue, fixed and mobile market – 2008 - 2012
    • 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 - 2014
    • Table 17 – Cumulative numbers ported – 2002 - 2009
    • Table 18 – CPS lines – 2005 - 2010
    • Table 19 – Telecom Italia fixed-network accesses – 2008 - 2014
    • Table 20 – New entrant fixed-line accesses by type – 2008 - 2014
    • Table 21 – New entrant fixed-line access market share – 2013 - 2014
    • Table 22 – Fixed-line services revenue market share by operator – 2009 - 2010
    • Table 23 – Telecom Italia fixed network revenue by sector (old reporting) – 2006 - 2012
    • Table 24 – Telecom Italia domestic revenue by sector – 2012 - 2014
    • Table 25 – Telecom Italia Group financial data – 2005 - 2014
    • Table 26 – Telecom Italia domestic revenue – 2005 - 2014
    • Table 27 – Telecom Italia fixed-line accesses by sector – 2006 - 2014
    • Table 28 – Wind subscribers by sector – 2006 - 2014
    • Table 29 – Wind annualised fixed-line ARPU – 2006 - 2014
    • Table 30 – Wind financial data – 2006 - 2014
    • Table 31 – Tiscali subscribers (Italy) – 2007 - 2014
    • Table 32 – Tiscali revenue by sector – 2006 - 2014
    • Table 33 – Fastweb financial data (€) – 2005 - 2009
    • Table 34 – Fastweb financial data (CHF) – 2008 - 2014
    • Table 35 – Fastweb financial data (CHF) – 2008 – 2014
    • Table 36 – Fastweb broadband subscribers – 2005 - 2014
    • Table 37 – Fixed-line accesses (Telecom Italia and altnets) – 2008 - 2014
    • Table 38 – Fixed-line access market share by operator – 2010 - 2014
    • Table 39 – New entrant fixed-line accesses by type – 2011 - 2014
    • Table 40 – Historic - Internet subscribers and penetration rate – 1991 - 2004
    • Table 41 – Internet subscribers and penetration rate – 2005 - 2014
    • Table 42 – Total fixed retail broadband subscribers by access type – 2002 - 2015
    • Table 43 – Broadband penetration by technology – 2004 - 2013
    • Table 44 – Broadband revenue – 2008 – 2014
    • Table 45 – Broadband market share of revenue by operator (historic) – 2008 – 2010; 2012 - 2013
    • Table 46 – Broadband market share of subscribers by operator – 2009 - 2014
    • Table 47 – New broadband subscribers by year – 2005 - 2013
    • Table 48 – Proportion of broadband connections by speed: OLOs – 2009 - 2013
    • Table 49 – Proportion of broadband connections by speed: Telecom Italia with OLOs– 2009 - 2013
    • Table 50 – Telecom Italia NGN2 FttX deployment – 2009 - 2011
    • Table 51 – DSL subscribers – 2002 - 2014
    • Table 52 – DSL market share by operator – 2011 - 2012
    • Table 53 – Telecom Italia share of broadband connections – 2008 - 2014
    • Table 54 – Telecom Italia broadband subscribers by sector – 2006 - 2014
    • Table 55 – Telecom Italia wholesale access lines – 2007 - 2014
    • Table 56 – Telecom Italia broadband ARPU – 2006 – 2014
    • Table 57 – Telecom Italia internet revenue – 2007 - 2014
    • Table 58 – Fastweb financial data – 2005 - 2014
    • Table 59 – Fastweb broadband subscribers – 2005 – 2014
    • Table 60 – Tiscali subscribers (Italy) – 2007 - 2014
    • Table 61 – Tiscali financial data – 2008 - 2014
    • Table 62 – Wind broadband subscribers – 2005 - 2014
    • Table 63 – Naked DSL lines – 2009 – 2012
    • Table 64 – FttP accesses – 2004 – 2014
    • Table 65 – NGN lines (FttX with VDSL/ADSL2+) – 2007 – 2016
    • Table 66 – Mobile broadband subscribers – 2010 - 2014
    • Table 67 – Mobile broadband traffic – 2011 - 2014
    • Table 68 –TV revenue by operator – 2009 - 2012
    • Table 69 – TV market share of subscribers by broadcaster – 2009 - 2012
    • Table 70 – Pay TV market share of subscribers by broadcaster – 2009 - 2012
    • Table 71 – Pay TV subscribers by technology – 2003 - 2010
    • Table 72 –TV revenue by platform (Pay, FTA) – 2009 - 2012
    • Table 73 –TV subscribers by platform – 2010; 2012 - 2013
    • Table 74 – Telecom Italia IPTV subscribers – 2007 - 2012
    • Table 75 – Cable TV subscribers and penetration rate – 1996 – 2011; 2015
    • Table 76 – Forecast satellite TV penetration – 2007 - 2015
    • Table 77 – SKY Italia subscribers – 2006 - 2014
    • Table 78 – SKY Italia financial data – 2007 - 2013
    • Table 79 – Mediaset financial data (Italy) – 2006 - 2014
    • Table 80 – Mediaset Premium active clients – 2007 - 2011
    • Table 81 – DTTV receivers, forecasts and annual change – 2004 - 2013
    • Table 82 – Telecom Italia VoIP subscribers – 2006 - 2012
    • Table 83 – Historic - Mobile subscribers and penetration rate – 1995; 1997; 1999 - 2004
    • Table 84 – Mobile subscribers and penetration rate – 2005 - 2015
    • Table 85 – Mobile market revenue – 2008 – 2014
    • Table 86 – Annual revenue per active SIM – 2008 - 2012
    • Table 87 – Revenue by service – 2009 - 2012
    • Table 88 – Revenue per user, by service – 2009 - 2012
    • Table 89 – Mobile market investments – 2009 - 2013
    • Table 90 – Mobile market share of subscribers by operator – 2004 - 2014
    • Table 91 – Total spectrum outlay by operator (€) – 2011
    • Table 92 – European roaming charges – 2007 – 2011; 2014
    • Table 93 – Cumulative mobile numbers ported – 2003 – 2014
    • Table 94 – Annual mobile numbers portings – 2002 – 2014
    • Table 95 – Mobile termination rates – 2008 - 2013
    • Table 96 – UMTS/HSPA subscribers – 2004 - 2013
    • Table 97 – 3 Italia registered mobile subscribers – 2008 - 2014
    • Table 98 – 3 Italia active mobile subscribers – 2013 - 2014
    • Table 99 – 3 Italia annualised ARPU – 2008 - 2014
    • Table 100 – 3 Italia mobile revenue – 2008 - 2014
    • Table 101 – 3 Italia mobile EBITDA, capex – 2011 - 2014
    • Table 102 – TIM mobile subscribers – 2005 - 2014
    • Table 103 – TIM mobile revenue by sector – 2008 - 2014
    • Table 104 – Vodafone subscribers – 2001 - 2014
    • Table 105 – Vodafone revenue by sector – 2009 - 2013
    • Table 106 – Vodafone revenue by sector – 2013 - 2015
    • Table 107 – Vodafone prepaid, contract and blended ARPU (€) – 2004 - 2014
    • Table 108 – Vodafone mobile customer cost – 2007 - 2014
    • Table 109 – Wind operational statistics and mobile revenue – 2005 – 2014
    • Table 110 – Wind annualised mobile ARPU – 2005 - 2014
    • Table 111 – Wind mobile ARPU by service– 2012 - 2013
    • Table 112 – Wind mobile subscriber statistics – 2005 - 2014
    • Table 113 – Wind mobile internet subscribers – 2012 - 2013
    • Table 114 – MVNO mobile subscribers and revenue – 2008 - 2014
    • Table 115 – MVNO market share of MVNO subscribers – 2010 - 2014
    • Table 116 – Prepaid and contract cards in service – 2009 - 2014
    • Table 117 – SMS/MMS and other data revenue – 2008 - 2013
    • Table 118 – Vodafone data as proportion of service revenue – 2005 - 2013
    • Table 119 – Mobile data revenue as proportion of total – 2004 - 2014
    • Table 120 – Mobile data traffic – 2008 - 2015
    • Table 121 – M2M deployments – 2005 - 2015
    • Table 122 – Forecast broadband subscribers – higher market growth scenario – 2010 - 2013; 2020
    • Table 123 – Forecast broadband subscribers – lower market growth scenario – 2009 - 2013; 2020
    • Table 124 – Forecast mobile ARPU – 2005 - 2015
    • Table 125 – Forecast UMTS subscribers and penetration rate – 2008 - 2010; 2015
    • Chart 1 – Fixed and mobile market investment – 2004 - 2012
    • Chart 2 – Total fixed and mobile market revenue – 2006 - 2014
    • Chart 3 – Retail revenue, fixed and mobile market – 2008 - 2012
    • Chart 4 – Telecom Italia wholesale access lines – 2007 - 2014
    • Chart 5 – Telecom Italia domestic revenue by sector – 2012 - 2014
    • Chart 6 – Telecom Italia Group financial data – 2006 - 2014
    • Chart 7 – Telecom Italia domestic revenue – 2005 - 2014
    • Chart 8 – Telecom Italia fixed-line accesses by sector – 2006 - 2014
    • Chart 9 – Wind subscribers by sector – 2006 – 2014
    • Chart 10 – Wind financial data – 2006 – 2014
    • Chart 11 – Tiscali subscribers (Italy) – 2007 - 2014
    • Chart 12 – Tiscali revenue by sector – 2006 - 2014
    • Chart 13 – Fixed-line accesses (Telecom Italia and altnets) – 2008 – 2014
    • Chart 14 – Fixed-line access market share by operator – 2010 – 2014
    • Chart 15 – Internet subscribers and penetration rate – 2002 - 2014
    • Chart 16 – Total fixed broadband subscribers by access type – 2002 – 2015
    • Chart 17 – Broadband market share of subscribers by operator – 2009 – 2014
    • Chart 18 – Telecom Italia broadband subscribers by sector – 2006 - 2014
    • Chart 19 – Telecom Italia wholesale access lines – 2007 - 2014
    • Chart 20 – Tiscali subscribers (Italy) – 2007 - 2014
    • Chart 21 – Tiscali financial data – 2008 - 2014
    • Chart 22 – Mediaset financial data (Italy and Spain) – 2006 – 2014
    • Chart 23 – Mobile subscribers and penetration rate – 2002 - 2015
    • Chart 24 – Mobile market revenue – 2008 - 2014
    • Chart 25 – Annual revenue per active SIM – 2008 - 2012
    • Chart 26 – Revenue by service – 2009 – 2012
    • Chart 27 – Mobile market share of subscribers by operator – 2004 – 2014
    • Chart 28 – 3 Italia mobile subscribers – 2008 - 2014
    • Chart 29 – 3 Italia annualised ARPU – 2008 – 2014
    • Chart 30 – TIM annualised ARPU – 2005 – 2014
    • Chart 31 – TIM revenue by sector, annual change – 2008 – 2014
    • Chart 32 – Vodafone prepaid, contract and blended ARPU (€) – 2004 - 2014
    • Chart 33 – SMS/MMS and other data revenue – 2008 - 2013
    • Exhibit 1 – EU – The New Regulatory Framework (NRF)
    • Exhibit 2 – Access and the local loop
    • Exhibit 3 - Principal backbone providers
    • 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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