2015 Italy - Telecoms, Mobile, Broadband and Digital Media - Statistics and Analyses

Italian government begins funding multi-billion Euro broadband program

Italy’s boasts one of the largest large telecom markets in Europe, supported by a population approaching 61 million. The fibre-optic sector has seen significant development in recent years, both in operator investment and in regulatory measures aimed at improving access to networks for smaller operators. The government has also set in train a multi-billion Euro investment program to ensure super-fast broadband connectivity for most Italians by 2020. This program is being supplemented by the efforts of the main telcos including Telecom Italia and Fastweb. Vodafone Italia, too, has encroached on the fixed-line sector as it’s the company improves on its ability to compete in the provision of bundled services.

As a result of these developments, the take up of broadband services in Italy has grown rapidly in recent years. The mobile sector is also performing well, particularly in mobile data services as consumers respond positively to the improved capacity and reach of LTE infrastructure. This has also led to the continuing dwindle of the fixed-line sector as consumers adopt mobile-only solutions and VoIP as alternatives to PSTN.

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 in securing customers. The owners of 3 Italia and Wind in mid-2015 agreed to merge their units, a process which requires regulatory clearance but would, if cleared, create the county’s largest MNO and even out the relative market shares among the three.

The broadband market enjoys strong competition within the DSL sector, supplemented by a vibrant fibre sector spearheaded by efforts from Telecom Italia and supplemented by investments from other telcos and municipal governments. 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.

This report analyses the key aspects of the Italian telecoms market, providing the latest data and statistics on the fixed network services sector including the key regulatory issues such as number portability and local loop unbundling, In addition, the report assesses the fixed-line and wireless broadband markets, as also the mobile market, providing statistics, analyses of regulatory measures, an assessment of mobile data services and an overview of the strategies of the major providers as they adopt emerging technologies and focus on the challenges for coming years.

Key developments:

• 3 Italia and Wind reach agreement to merge;
• Vodafone pledges to extend LTE coverage to 90% of the population by the end of 2016;
• Telecom Italia Mobile trials LTE broadcast technology;
• Regulator extends 3G licences to 2029 and GSM licences to 2027;
• Spectrum auction opens up LTE sector and delivers €3.945 billion for the government;
• Government releases first tranche of public funds towards its €2.2 billion broadband investment program;
• Fastweb planning 500Mb/s service to 7.5 million premises during 2016;
• SINFI infrastructure registry helping to reduce cost of deploying fibre by a third;
• Vodafone and Wind jointly roll out fibre with Metroweb;
• Fastweb bundles broadband with Sky Italia;
• Fastweb buys into Metroweb and deploys vectoring DSL technology;
• Telecom Italia proceeds with rebranding exercise as TIM;
• EC evaluates Rome smart grid deployment;
• Report update includes the regulator’s market data to June 2015, telcos’ operating and financial data to Q3 2015, recent market developments.

Companies mentioned in this report:

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