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Business Areas and Competitors: Overview on the Italian market

06/01/2016 - 00:30 PM

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The Italian telecommunications market

The Italian TLC market continues to be highly competitive with significant use of the pricing as a lever, which has led to an ongoing impoverishment of the traditional service components, particularly voice service. In this context, the key element in the evolution of the market has been the increased penetration of broadband, first fixed and now also mobile, and above all greater penetration of new generation handsets. At the same time, the evolution of the competitive scenario continues to veer towards a situation of increased complexity, with more inter relationships between players of different markets, opening the field to the competition of non-traditional operators,  particularly OTTs (Over the Top) companies and producers of electronic and consumer devices), as well as giving telecommunication operators the possibility of developing new so-called “network based” services (mainly in the IT and Media fields).


For the telecommunications operators, in addition to the core competition from the other traditional operators in the sector, the field has been invaded by OTTs and device producers who take advantage of their full understanding of the evolution of consumer trends, consumer electronics and software environments and who operate entirely in the digital world, basing their behavior on competition approaches that are completely different to those of TLC players. Conversely, with regard to the positioning of the telecommunications operators in the converging markets, it should be noted that there are, at varying levels of development:

  • initiatives to enter IT market of innovative services by expanding Cloud services from the business to the consumer world
  • new wireless applications such as Machine-to- Machine and mobile payment
  • significant presence as facilitators of online digital content use on the living room screen using Over The Top TV multidevice solutions.