2013-03-22 17:01:40 - New Fixed Networks research report from Business Monitor International is now available from Fast Market Research
BMI View: Operators in Italy's mobile and broadband markets faced considerable operating challenges in 2012, and the outlook remains challenging in the medium term. The local economy has entered recession and will likely lead to higher customer churn rates and customer winback/retention costs, even as the operators continue engaging in price wars focused on the mass consumer market and invest heavily in additional spectrum, to further 3G/3.5G/3.75G network infrastructure and begin developing their next generation 4G services. At the same time, further mobile termination rate (MTR) reductions hit operators' revenues in 2012 and will again in early 2013, leaving them little room to manoeuvre. The main bright spot is in the value-added services (VAS) market, where consumption of non-voice services,
particularly video and games, is booming.
Full Report Details at
- www.fastmr.com/prod/552329_italy_telecommunications_report_q2_20 ..
* Data from Vodafone and Telecom Italia show mobile ARPU declined sharply during2012, down 12.9% and 11.8% respectively y-o-y to Q412. A key factor was the implementation of steep MTR cuts in July 2012.
* Uptake of 3G subscriptions remained robust even in a difficult economic climate as consumer demand for smartphones drove growth. AGCOM reported 15.1% y-o-y growth in 3G subscriptions to the end of September 2012.
* The dedicated mobile broadband market returned to growth after a contraction in Q212. As such, we forecast continued growth in total broadband subscriptions for the duration of our forecast to 2017, but growth will be limited by saturation in the fixed-line broadband segment.
Key Trends And Developments
The final months of 2012 saw LTE services launched by three operators, with subsequent expansion of coverage in Q113. Between October and November 2012, Vodafone, Telecom Italia and 3 Italia launched LTE services for the first time in Italy. Vodafone became the first operator to launch LTE services in October 2012, with its 4G LTE network available in Rome and Milan, before expanding coverage to a further six cities in December 2012. It aims to cover 20 cities by March 2013. Telecom Italia is also pursuing aggressive roll-out and expects to achieve 40% population coverage by 2014. BMI believes the 4G LTE market is a significant opportunity for Italian operators because of the capacity to make gains not only with smartphone users, but also for dedicated data subscriptions. The country's wireline broadband service providers currently provide the majority of services over ageing infrastructure not capable of providing comparable download speeds to LTE and we therefore argue gains are possible in the short term before FTTx roll-out gathers pace.
There may not be too long a window based on recent developments in terms of next generation wireline infrastructure investment. The most recent investment announcement came from Fastweb, which agreed to work with Huawei Technologies in a US$557mn roll-out of fibre infrastructure. This adds to announcements in 2012 from the incumbent, Telecom Italia, which is committed to investing in upgrading its network to fibre, as well as the investment group catalysing around Metroweb, which plans an extensive fibre roll-out to 30 large Italian cities by 2015. These investments will dramatically increase access to highspeed wireline services in Italy.
Partial Table of Contents:
BMI Industry View
- Executive Summary
- Fixed Line/Broadband
- Business Environment
Industry Business Environment Overview
- Western Europe Risk/Reward Ratings
- Table: Western Europe Risk/Reward Ratings, Q213
- Table: Telecoms Sector - Mobile - Historical Data And Forecasts, 2010-2017
- Table: Telecoms Sector - Mobile ARPU - Historical Data & Forecasts (EUR)
- Table: Telecoms Sector - Fixed Line - Historical Data And Forecasts, 2010-2017
- Table: Telecoms Sector - Internet - Historical Data And Forecasts, 2010-2017
- Regional Perspective
- Table: Italy Mobile Market Regional Comparisons, 2011
- Key Developments
- Mobile Growth
- Table: Italy Mobile Market, Q312
- Market Share And Net Additions
- Table: Net Additions By Operator ('000), 2011-2012
- Subscription Divisions
- Usage (MOU/ARPU)
- Mobile Content/Value-Added Services
- Mobile Operator Database
- Table: Italy Mobile Market Overview
- Table: Telecom Italia
- Table: Vodafone
- Table: WIND
- Table: 3 Italia
- Western Europe Mobile Content
- Financialising Footfall
- Interoperable M-Commerce A Stronger Proposition
- Positioning Key To M2M Success
- Local Loop Unbundling
- Table: Telecom Italia OLO Accesses, Q411-Q412
- Wholesale Access
- Table: Italian Fixed Broadband Market Subscriptions By Operator (mn)
Industry Trends And Developments
- LTE Arrives In Italy
- Wind Proposes LTE Infrastructure Sharing
- Telecom Italia Restructuring
- WIND And Vodafone Partner With Metroweb For Fibre
- Fastweb Commits To Fibre Future
- Mobile Banking
- Table: Italy: Regulatory Bodies And Their Responsibilities
- Regulatory Developments
- Table: Key Players - Italy Telecoms Sector
- Table: Selected Operators Financial Indicators (US$mn)
- Telecom Italia
- Vodafone Italia
- 3 Italia
Full Table of Contents is available at:
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