Italy Telecom Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 1.30 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Italy Telecom Market Analysis
The Italian telecom market is expected to register a CAGR of 1.3% over the next five years. Key telecom companies, such as TIM, Vodafone, Wind Tre, Cellnex, and Fastweb, are based in Italy and promote innovation by making significant R&D investments consistently.
- The growing demand for high-speed connectivity services by customers and increasing spending on the deployment of 5G infrastructure has a positive influence on the growth of the Italian telecom market. For instance, TIM expanded its 5G network, now available in Bari and Padua, and 16 new locations across the country. It offers 5G services with downloading speeds of up to 2 Gbps.
- The transition from 4G to 5G is still rising in the country due to expanding new networks and the expansion of the device ecosystem. The government plans to deploy 5G networks across the country. For instance, Telecom Italia (TIM) won a government contract worth EUR 725 million (USD 756 million) to deploy 5G networks in rural areas of Italy.
- In the future, all the customers will slowly migrate from 3G and 4G networks to the 5G network. For instance, Wind Tre and Ericsson have signed a long-term 5G agreement. The deal is to power its 5G Standalone (SA) network with a dual-mode 5G Core on cloud infrastructure.
- Growing demand for fixed broadband services will significantly create new growth opportunities for the telecom market. For instance, in October 2022, Open Fiber signed an agreement with EOLO (Equal Opportunity Lifestyle Organization) to provide fixed broadband service in rural areas.
- Due to the COVID-19 pandemic, a large portion of the Italian population was forced to at home constantly. Many people opt to work from home, due to which there is increased broadband consumption. Offering high-speed broadband services will further support the growth of the telecom market.
Italy Telecom Market Trends
This section covers the major market trends shaping the Italy Telecom Market according to our research experts:
Rising Demand for Fixed Broadband Services
- Key players in the market are deploying high-speed broadband services in the country. The government has forward-looking plans to expand its broadband coverage to support 3G, 4G, and 5G networks.
- For instance, in August this year, Fastweb expanded its 5G Fixed Wireless Access (FWA) network to more than 1,000 municipalities across the country. Services are available at download rates of up to 1 Gbps using a 26 GHz spectrum and up to 100 Mbps using 3.5 GHz band equipment. The continued expansion of 5G networks and 5G services across the country will increase 5G adoption and provide opportunities for telecom players to offer 5G FWA services.
- The Italian telecom market made further strides in expanding its network capacity with fiber cable-based broadband deployments. For instance, in May this year, FiberCop and Open Fiber won a government tender worth USD 3.63 billion; the tender is expected to be completed by the end of 2026. Through this contract, they offer fixed broadband connectivity services of at least 1 Gbps/200 Mbps (download/upload) to 7 million households in underserved areas (rural areas).
- According to Ookla Speedtest Global Index, Italy ranked 70th with a median fixed broadband download speed of 54.22 Mbps in September this year. The demand for fixed broadband services is growing significantly, creating new growth opportunities for the telecom market.
Rising Demand for OTT and PayTv Services
- The revenue from Pay-TV services is likely to drop over the next five years because of a steady decline in DTH subscriptions and emerging competition from OTT service providers.
- Increasing mobile subscribers will significantly increase the demand for OTT (over-the-top) services. OTT service providers, such as Netflix, Disney+, and Amazon Prime, offer on-demand videos for customers, thus creating new growth opportunities for the telecom market.
- According to Ookla Speedtest Global Index, Italy ranked 48th with a median mobile download speed of 40.62 Mbps in September this year. OTT services will further increase mobile data consumption.
- According to GSMA, smartphone adoption in the country was 77% last year, and it is expected to reach 81% in 2025. Adults in the country are increasingly using smartphones. The smartphone penetration will further increase the demand for OTT services.
- During the COVID-19 outbreak, people adopted work-from-home practices and spent more time watching videos, games, and other forms of entertainment at home. OTT service providers offering on-demand videos will further drive the growth of the Italian telecom market.
Italy Telecom Industry Overview
The Italian telecom market is moderately fragmented due to ongoing partnerships and recent advancements in the market. Some major players in the market studied include TIM, Vodafone, Wind Tre, Cellnex, and Fastweb.
In October 2022, Telecom Italia (TIM) launched its first commercial 10 Gbps fixed broadband service in 33 cities. These new fixed broadband services will be able to offer services for 1.2 million premises.
In October 2022, Vodafone introduced its fixed wireless access (FWA) services for home users. This 5G FWA service provides download rates of up to 300 Mbps.
Italy Telecom Market Leaders
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TIM
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Vodafone
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Wind Tre
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Cellnex
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Fastweb
*Disclaimer: Major Players sorted in no particular order
Italy Telecom Market News
- October 2022: Fastweb upgraded its 5G network maximum download speed up to 1.6 Gbps. Through this development, the company can offer high-speed 5G services to customers.
- October 2022: Telecom Italia (TIM) switched off its 3G network. The company aims to offer future 4G and 5G services.
- October 2022: Iliad Italy signed an agreement with Fastweb. The company jointly works to expand its fiber-to-the-home (FTTH) service footprint. This project is expected to be completed by the end of 2025. The expanded fiber-to-the-home (FTTH) service is to cover more than ten million homes across Italy.
Italy Telecom Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Ecosystem Analysis
4.3 Industry Attractiveness-Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of the Impact of COVID-19 on the Industry Ecosystem
4.5 Regulatory Landscape in Italy
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Demand for 5G
5.1.2 Growth of IoT Usage in Telecom
5.2 Market Restrain
5.2.1 The Emergence of Stiff Competition is a Concern for the Industry
5.3 Analysis of the Market based on Connectivity (Coverage to include In-depth Trend Analysis)
5.3.1 Fixed Network
5.3.1.1 Broadband (Cable Modem, Wireline-fiber, Wireline DSL, and Fixed Wi-Fi ), Trends regarding ADSL/VDSL, FTTP/B, Cable Modem, FWA, and 5G FWA)
5.3.1.2 Narrowband
5.3.2 Mobile Network
5.3.2.1 Smartphone and Mobile Penetration
5.3.2.2 Mobile Broadband
5.3.2.3 2G, 3G, 4G, and 5G Connections
5.3.2.4 Smart Home IoT and M2M Connections
5.4 Analysis of Telecom Towers (Coverage to include in-depth trend analysis of various types of towers, like, lattice, guyed, monopole, and stealth towers)
6. MARKET SEGMENTATION
6.1 By Services
6.1.1 Voice Services
6.1.1.1 Wired
6.1.1.2 Wireless
6.1.2 Data and Messaging Services (Coverage to include Internet & Handset Data packages, and Package Discounts)
6.1.3 OTT and PayTV Services
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 TIM
7.1.2 Vodafone
7.1.3 Wind Tre
7.1.4 Fastweb
7.1.5 Huawei Technologies Italia SRL
7.1.6 Telecom Italia Sparkle
7.1.7 Iliad Italia
7.1.8 INWIT
7.1.9 Ericsson
7.1.10 Sielte SPA
7.1.11 Cellnex
7.1.12 Tiscali
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Italy Telecom Industry Segmentation
Telecom or telecommunication is the long-range transmission of information by electromagnetic means.
The Italian telecom market includes an in-depth trend analysis based on connectivity, like fixed networks, mobile networks, and telecom towers. Telecom services are divided into voice services (wired and wireless), data and messaging services, and OTT and PayTV services. Several factors, including an increasing demand for 5G, likely drive the adoption of telecom services. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Services | ||||
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| Data and Messaging Services (Coverage to include Internet & Handset Data packages, and Package Discounts) | ||||
| OTT and PayTV Services |
Italy Telecom Market Research FAQs
What is the current Italy Telecom Market size?
The Italy Telecom Market is projected to register a CAGR of 1.30% during the forecast period (2024-2029)
Who are the key players in Italy Telecom Market?
TIM, Vodafone, Wind Tre, Cellnex and Fastweb are the major companies operating in the Italy Telecom Market.
What years does this Italy Telecom Market cover?
The report covers the Italy Telecom Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Italy Telecom Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
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