Market Trends of Italy Telecom Industry
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.
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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.
