Italy - Telecoms, Mobile and Broadband - Statistics and Analyses

Publication Overview

This report provides a comprehensive overview of trends and developments in Italy’s telecommunications market. The report analyses the fixed-line, mobile and broadband sectors. Subjects include:

Market and industry analyses, trends and developments;
Facts, figures and statistics;
Industry and regulatory issues;
Infrastructure developments;
Major Players, Revenues, Subscribers, ARPU, MoU;
Mobile Voice and Data Markets;
Broadband (FttP, DSL, cable, wireless);
Mobile subscribers and ARPU;
Broadband market forecasts;
Government policies affecting the telecoms industry;
Market liberalisation and industry issues;
Telecoms operators – privatisation, IPOs, acquisitions, new licences;
Mobile technologies (GSM; 3G, HSPA, LTE, 5G).

Researcher:- Henry Lancaster
Current publication date:- October 2018 (16th Edition)

Executive Summary

Italy’s multi-spectrum auction paves the way for 5G services in 2019

Italy’s large telecom market has one of the highest mobile penetration rates in Europe and has benefitted from progressive government programs aimed at developing the fibre broadband sector.

The broadband market has effective competition within the DSL sector and is supplemented by a vibrant fibre sector spearheaded by investment efforts from Telecom Italia, other telcos and municipal governments. Regulatory measures have also been introduced to facilitate access to NGNs, while the government is investing €4 billion to provide broadband across the country. The wholesale provider Open Fibre has extended fibre-based broadband access to underserved areas and signed wholesale access agreements with a number of operators, including Sky Italia which is expected to launch broadband services in the northern Spring of 2019.

The vibrant mobile market has seen a fall in the number of subscribers in recent years as customers respond to attractive off-net pricing and bundled offers from the main providers. The market underwent considerable changes following the merger of Wind and 3 Italia (becoming Wind Tre). As a result of the merger the market gained a new entrant in the form of Iliad, which secured access to spectrum and to part of Wind Tre’s infrastructure to enable it to offer services while its own network is being developed. The company launched services in May 2018 and by the following August had secured more than two million subscribers. The evident popularity of its offers has considerably disrupted the market, leading competitors to rethink their strategies. Wind Tre in particular struggled with customers losses in 2018, while the continuing effort to merge the networks of Wind and 3 Italia was disrupted by the brief ban on commercial ties with its principal vendor ZTE.

Network operators have been among the first in Europe to trial services based on 5G. To this end they have been helped by the regulator which made available spectrum in the 3.5GHz band for trial licenses. An auction of spectrum in a range of bands for 5G was completed in October 2018, raising €6.55 billion. The sum was higher than the government anticipated, and though the licence fees are payable over five years the cost will place a strain on licensees financing future network development. Operators are looking at cost-saving options and, in the case of Wind Tre, have considered the sale of their base station portfolio.

This report analyses the key aspects of the Italian telecom market, providing key data and statistics on the country and the fixed network services sector. It also reviews the main regulatory issues including number portability and local loop unbundling. The report also covers the fixed and fixed-wireless broadband markets, including the burgeoning fibre sector. In addition the report analyses the mobile market, including statistics, regulatory issues and developments with mobile data services as operators plan for 5G in 2019.

Key developments:

Global Cloud Xchange building the EAGLE submarine cable system linking Italy to Hong Kong;
Fastweb's fibre network reaching about 60% of the population;
SINFI infrastructure registry helping to reduce cost of deploying fibre by a third;
Fastweb extends TIM fibre venture;
Regulator raises €6.55 billion in multi spectrum auction, considers 30% cut in MTRs;
CK Hutchison completes purchase of VEON's 50% stake in Wind Tre;
Vodafone Italy extends its 550Mb/s LTE-A service to seven cities;
TIM trials LTE broadcast technology, preps for 5G applications and services;
Regulator extends 3G licences to 2029 and GSM licences to 2027;
Report update includes the regulator's market data to March 2018, telcos' operating and financial data to Q2 2018, recent market developments.

Companies mentioned in this report:

Wind Tre (3 Italia / Wind Telecom), Telecom Italia (TIM), Vodafone Italia, VEON (VimpelCom), Metroweb, Fastweb, Tiscali, BT Italia.

Henry Lancaster
October 2018

Table of Contents

Key statistics

Country overview

Telecommunications market

Market analysis

Regulatory environment

Historical overview
Regulatory authority
Telecom sector liberalisation
Interconnect
Access
Number Portability (NP)
Carrier PreSelection (CPS)

Fixed network operators

Introduction
Telecom Italia (TIM)
Wind Tre
BT Italia
Tiscali
Fastweb

Telecommunications infrastructure

Overview of the national telecom network
International

Submarine cable networks
Satellite networks

Infrastructure developments

Next Generation Network (NGN)

Smart infrastructure

Smart Cities
Smart meters

Broadband market

Introduction and statistical overview

Broadband statistics
Government support
National Broadband Plan

Forecasts – broadband subscribers – 2019; 2021; 2023
Hybrid Fibre Coax (HFC) networks
Digital Subscriber Line (DSL) networks

Telecom Italia
Fastweb
Tiscali
Wind Tre
Vectoring DSL

Fibre-to-the-Premises (FttP) networks

Introduction
Telecom Italia
Fastweb
Other networks
Other developments

Other fixed broadband services

Mobile communications

Market analysis
Mobile statistics

General statistics
Operator market shares

Mobile infrastructure

Digital networks
Other infrastructure developments

Mobile voice
Mobile data

Short Messaging Service (SMS)
Multimedia Messaging Services (MMS)
Mobile broadband

Regulatory issues

Spectrum regulations and spectrum auctions
Roaming
Network sharing
Mobile Number Portability (MNP)
Mobile Termination Rates (MTRs)

Major mobile operators

Wind Tre (3 Italia/Wind)
TIM
Vodafone Italy
Iliad
MVNOs

Mobile content and applications

Mobile banking/ticketing
Payment services
Machine-to-Machine (M2M)

List of Tables

Table 1 – Top Level Country Statistics and Telco Authorities - Italy – 2018 (e)
Table 2 – Fixed and mobile market investment – 2004 – 2015
Table 3 – Share of fixed-line and mobile sector investment by operator – 2010 – 2015
Table 4 – Fixed and mobile market revenue – 2010 – 2017
Table 5 – Fixed market revenue by type – 2016 – 2017
Table 6 – Telecom Italia wholesale access lines – 2007 – 2018
Table 7 – Fixed number portings – 2010 – 2015
Table 8 – Telecom Italia fixed network revenue by sector (old reporting) – 2006 – 2012
Table 9 – Telecom Italia domestic revenue by sector – 2012 – 2018
Table 10 – Telecom Italia Group financial data – 2005 – 2018
Table 12 – Telecom Italia accesses by sector – 2006 – 2018
Table 13 – Wind subscribers by sector – 2006 – 2018
Table 14 – Wind annualised fixed-line ARPU – 2006 – 2018
Table 15 – Wind financial data – 2006 – 2018
Table 16 – Wind Tre fixed-line revenue – 2015 – 2018
Table 17 – Tiscali subscribers (Italy) – 2007 – 2017
Table 18 – Tiscali revenue by sector – 2006 – 2017
Table 19 – Tiscali financial data – 2008 – 2017
Table 20 – Fastweb financial data (€) – 2005 – 2009
Table 21 – Fastweb financial data (CHF) – 2008 – 2018
Table 22 – Fastweb financial data (CHF) – 2008 – 2018
Table 23 – Fixed-line accesses (Telecom Italia and altnets) – 2008 – 2018
Table 24 – Fixed-line in service and teledensity – 2008 – 2018
Table 25 – Fixed-line accesses by type – 2013 – 2017
Table 26 – Fixed-line access market share by operator – 2010 – 2018
Table 27 – International internet bandwidth – 2005 - 2016
Table 28 – NGA lines and proportion of total lines – 2011 – 2016
Table 29 – Historic - Internet subscribers and penetration rate – 1991 – 2009
Table 30 – Internet subscribers and penetration rate – 2010 – 2018
Table 31 – Total fixed retail broadband subscribers by access type – 2002 – 2018
Table 32 – Broadband penetration by technology – 2004 – 2017
Table 33 – Broadband market share of subscribers by operator – 2009 – 2018
Table 34 – Proportion of broadband connections by speed – 2009 – 2018
Table 35 – Broadband lines by speed – 2010 – 2018
Table 36 – Forecast broadband subscribers – 2019; 2021; 2023
Table 37 – Ultra-fast broadband lines (above 30Mb/s) in service – 2013 – 2018
Table 38 – DSL subscribers – 2002 – 2018
Table 39 – Fixed-line broadband market share by operator – 2011 – 2018
Table 40 – Telecom Italia broadband subscribers by sector – 2006 – 2018
Table 41 – Telecom Italia broadband ARPU – 2006 – 2018
Table 42 – Telecom Italia internet revenue – 2007 – 2018
Table 43 – Fastweb broadband subscribers – 2005 – 2018
Table 44 – Tiscali broadband subscribers – 2007 – 2017
Table 45 – Tiscali financial data – 2008 - 2017
Table 46 – Wind Tre broadband subscribers – 2005 – 2018
Table 47 – Fibre broadband lines – 2013 – 2017
Table 48 – Altnet fibre broadband lines – 2012 – 2017
Table 49 – Fastweb broadband subscribers – 2015 – 2018
Table 50 – Vodafone fixed-line broadband subscribers – 2014 – 2018
Table 51 – Fixes Wireless Access (FWA) subscribers– 2013 – 2018
Table 52 – Historic - Mobile subscribers and penetration rate – 1995; 1997; 1999 – 2009
Table 53 – Mobile subscribers and penetration rate – 2010 – 2019
Table 54 – Mobile subscribers and penetration (excluding M2M) – 2013 – 2019
Table 56 – Mobile device and service price index – 2013 – 2018
Table 57 – Mobile market share of subscribers by operator – 2004 – 2018
Table 58 – Prepaid and contract cards in service – 2009 – 2018
Table 59 – Proportion of prepaid and contract cards in service – 2010 – 2018
Table 60 – TIM LTE subscribers – 2015 – 2018
Table 61 – M2M connections – 2013 – 2017
Table 62 – SMS/MMS and other data revenue – 2008 – 2013
Table 63 – SMS traffic – 2008 – 2018
Table 64 – Mobile data traffic – 2008 – 2018
Table 65 – Average data per SIM card per month – 2012 – 2018
Table 66– Vodafone SMS traffic – 2014 – 2016
Table 67 – Active mobile broadband subscribers – 2008 – 2018
Table 68 – Wind Telecom mobile internet subscribers – 2012 – 2016
Table 69 – Wind Telecom mobile internet revenue – 2013 – 2016
Table 70 – TIM mobile internet subscribers – 2013 – 2018
Table 71 – European roaming charges – 2007 – 2016
Table 72 – European data roaming charges – 2014 – 2017
Table 73 – Cumulative mobile numbers ported – 2003 – 2018
Table 74 – Annual mobile numbers portings – 2002 – 2018
Table 75 – Historic - Wind mobile registered subscriber statistics – 2005 – 2015
Table 76 – Wind Tre registered mobile subscribers – 2008 – 2018
Table 77 – 3 Italia (Wind Tre) active mobile subscribers – 2012 – 2018
Table 78 – 3 Italia (Wind Tre) annualised ARPU – 2008 – 2018
Table 79 –Wind Tre operational statistics and mobile revenue – 2005 – 2018
Table 80 – Wind annualised mobile ARPU – 2005 – 2017
Table 81 – Wind Tre mobile revenue – 2008 – 2018
Table 82 –Wind Tre mobile EBITDA, capex – 2011 – 2018
Table 83 – TIM mobile subscribers – 2005 – 2018
Table 84 – TIM mobile revenue by sector – 2008 – 2018
Table 85– Vodafone subscribers – 2001 – 2018
Table 87 – Vodafone mobile service revenue by sector – 2010 – 2019
Table 88 – Vodafone prepaid, contract and blended ARPU (€) – 2004 – 2018
Table 89 – Vodafone mobile customer cost – 2007 – 2018
Table 90 – MVNO mobile subscribers – 2008 – 2018
Table 91 – Tiscali mobile subscribers – 2013 – 2017
Table 92 – Fastweb mobile subscribers – 2016 – 2018
Table 93 – MVNO market share of MVNO subscribers – 2010 – 2018
Table 94 – M2M connections – 2013 – 2018

List of Charts

Chart 1 – Fixed and mobile market investment – 2004 – 2015
Chart 2– Total fixed and mobile market revenue – 2010 – 2017
Chart 3 – Telecom Italia wholesale access lines – 2007 – 2018
Chart 4 – Telecom Italia domestic revenue by sector – 2012 – 2018
Chart 5– Telecom Italia Group financial data – 2006 – 2018
Chart 6 – Telecom Italia domestic revenue – 2005 – 2018
Chart 7– Telecom Italia accesses by sector – 2006 – 2018
Chart 8 – Wind subscribers by sector – 2006 – 2018
Chart 9 – Wind financial data – 2006 – 2018
Chart 10 – Tiscali revenue by sector – 2006 – 2017
Chart 11 – Tiscali financial data – 2008 – 2017
Chart 12 – Fixed-line accesses (Telecom Italia and altnets) – 2008 – 2018
Chart 13 – Fixed-line in service and teledensity – 2008 – 2018
Chart 14 – Fixed-line access market share by operator – 2010 – 2018
Chart 15 – Internet subscribers and penetration rate – 2002 – 2018
Chart 16 – Total fixed broadband subscribers by access type – 2005 – 2018
Chart 17 – Broadband market share of subscribers by operator – 2009 – 2018
Chart 18 – Fixed-line broadband market share by operator – 2011 – 2018
Chart 19 – Telecom Italia broadband subscribers by sector – 2006 – 2018
Chart 20 – Mobile subscribers and penetration rate – 2013 - 2019
Chart 21 – Mobile market revenue – 2008 – 2017
Chart 22– Mobile market share of subscribers by operator – 2004 – 2018
Chart 23 – Active mobile broadband subscribers – 2008 – 2018
Chart 24 – 3 Italia mobile subscribers – 2008 – 2018
Chart 25 – 3 Italia annualised ARPU – 2008 – 2018
Chart 26 – TIM annualised ARPU – 2005 – 2018
Chart 27 – TIM revenue by sector, annual change – 2008 – 2018
Chart 28 – Vodafone prepaid, contract and blended ARPU (€) – 2004 – 2018

List of Exhibits

Exhibit 1 – Access and the local loop
Exhibit 2- Principal backbone providers
Exhibit 3 – WiMAX licensees – 2010
Exhibit 4 – UMTS auction results – 2000
Exhibit 5 – UMTS auction results – 2009
Exhibit 6 – Spectrum allocations at auction – 2011
Exhibit 7 – Total spectrum outlay by operator – 2011
Exhibit 8 – 3 Italia spectrum concessions

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Strategies & Analyses (Industry & Markets)
Telecoms Infrastructure

Number of pages 150

Status Current

Last updated 30 Oct 2018
Update History

Analyst: Henry Lancaster

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