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.
Italian fibre network operator Metroweb has announced plans for a EUR900 million (USD1.01 billion) investment to deploy new fibre infrastructure in ten cities. According to a report from Reuters, work is being carried out in Rome, Naples, Bari, Florence, Venice, Palermo, Verona, Genoa, Bologna and Turin and is expected to be completed within three years. Metroweb, which is part-owned by the government holding company Cassa Depositi e Prestiti (CDP), is being seen as a likely vehicle for the state to push ahead with its EUR12 billion plan to deploy broadband networks nationwide in partnership with other Italian telcos.

Key developments:

• Telecom Italia proceeds with rebranding exercise as TIM; EC evaluates Rome smart grid deployment; regulator addresses fibre network open access;
• FiberCo coordinating fibre deployments to 20 million people in 15 cities;
• Telecom Italia commits to deliver FttP/FttB to an additional 138 cities by 2018, suspends decision to spin off access network into separate company; regulator again reduces LLU prices, Vodafone sues Telecom Italia for €1 billion for anti-competitive market behaviour;
• 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 licenses to 2029 and GSM licenses 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