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2008 Europe - Telecoms, Mobile and Broadband in Italy and Malta

This report covers Italy and Malta, together representing one of the largest and most influential telecom markets in Europe, as well as one of the smallest yet technologically proficient. The report analyses trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP, VoD and IPTV developments.

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Research, marketing, benchmarking;
  • Major players, revenues, subscribers, prepaid;
  • VoIP, IPTV, VoD, digital TV and DTTV;
  • Converging media, mobile broadband.

Researcher:- Henry Lancaster
Current publication date:- December 2008 (7th Edition)
Next publication date:- December 2009


EXECUTIVE SUMMARY

BuddeComm’s Italy and Malta annual publication, 2008 Telecoms, Mobile and Broadband in Italy and Malta, profiles key developments in one of Europe’s most sophisticated telecom markets, as well as one of its smallest.

Italy’s mobile market remains among the more dynamic in Europe, supported by a large population keen to adopt new services and favouring the use of multiple SIMs. The DTH platform, Tivu, is supported by RAI, Mediaset and Telecom Italia Media and is expected to be launched in mid-2009.

Italy also has one of the most advanced fibre infrastructures, with FASTWEB and Telecom Italia among the top tier in Europe. Upgraded networks and the widening fibre footprint will provide a strong foundation for IPTV, VoD and IP delivered content in coming years. For the country overview, see chapter 1, page 1.

Malta has not lagged behind in technological developments, with the incumbent, GO, offering quad play services and Vodafone having built a national WiMAX network to complement its mobile offerings and provide more comprehensive bundled packages. For the country overview, see chapter 2, page 66.

This report presents a concise overview of the telecom markets in Italy and Malta, providing key statistics on operators’ offers and performances together with their strategies to adapt to the increasingly competitive scenarios expected in coming years. It also assesses regulatory changes and their implications, and analyses the emergence of convergence between the sectors and quad play services.

Key highlights:

  • Malta’s third 3G operator, 3G Telecommunications, will enable its network builder, Melita Cable, to rival GO as the country’s second full service quad play provider in coming years. For more information, see chapter 2.9.3, page 83.
  • Italy’s mobile market is one of the most advanced in Europe. Take-up of 3G is expected to reach more than 40% by 2009, among the highest proportions in Europe. Continued growth in coming years will be supported by the ongoing popularity of emerging mobile data services. For more information, see chapter 1.8.3, page 51.
  • Italy’s broadband market is supported by the high proportion of people living in apartment blocks, short local loops, sympathetic regulatory measures and the co-operation of municipalities. For more information, see chapter 1.6.1.3, page 25.
  • Italy’s fibre market remains one of the strongest in Europe, and will continue to mature in 2009 on the back of an important infrastructure sharing deal between FASTWEB and Telecom Italia and recent legislation to streamline administrative procedures. Lower building costs will help spread fibre beyond the main cities and to the majority of the population in coming years. For more information, see chapter 1.6.4, page 30.

Broadband penetration in Italy and Malta - 2005 - 2008
Year Italy Malta
2005 12% 12%
2006 15% 13%
2007 17% 19%
2008 22% 24%
(Source: BuddeComm)

Henry Lancaster
December 2008

The following notes provide some background to our scenario forecasting methodology:

  • This report includes what we term scenario forecasts. By describing long-range scenarios we identify a band within which we expect market growth to occur. The associated text describes what we see as the most likely growth trend within this band.
  • The projections shown in the tables in this report are based on our own historical information, as well as on telecommunication sector statistics from official and non-official, national and international sources. We assume a possible deviation of 15-20% around this data.
  • All statistics for GDP, revenue, etc are shown in US$, in order to maintain consistency within and between markets. At the same time we acknowledge that this can introduce some irregularities.

Data in this report is the latest available at the time of preparation and may not be for the current year.

For those needing high level strategic information and objective analysis on this region, this 100+ page report is essential reading and gives further information on:

  • The quad-play offers from Malta’s GO and Melita Cable, together with Vodafone’s WiMAX ambitions to enable it to compete effectively;
  • The structural separation plans for Telecom Italia and the company’s commitment to convergence;
  • The improved Local Loop Unbundling conditions in Italy and their effect on increasing broadband competition;
  • The strong demand for triple play services stimulating higher bandwidth connections in both Italy and Malta;
  • The changing face of converged media with widespread triple play services becoming a standard feature in homes.

This report covers Italy and Malta, together representing one of the largest and most influential telecom markets in Europe, as well as one of the smallest yet technologically proficient. The report analyses trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP, VoD and IPTV developments.

  • Market and industry analyses, trends and developments;
  • Facts, figures and statistics;
  • Industry and regulatory issues;
  • Research, marketing, benchmarking;
  • Major players, revenues, subscribers, prepaid;
  • VoIP, IPTV, VoD, digital TV and DTTV;
  • Converging media, mobile broadband.

1. ITALY
1.1 Key statistics
1.2 Telecommunications market
1.2.1 Overview of Italy’s telecom market
1.3 Regulatory environment
1.3.1 Regulatory authority
1.3.1.1 Communications Regulatory Authority (AGCOM)
1.3.2 Telecom sector liberalisation in Italy
1.3.2.1 Privatisation of Telecom Italia
1.3.2.2 Interconnect
1.3.2.3 Access
1.3.2.3.1 Wholesale Line Rental (WLR)
1.3.2.3.2 Bitstream access
1.3.2.4 Number Portability (NP)
1.3.2.5 Carrier PreSelection (CPS)
1.4 Fixed network operators in Italy
1.4.1 Overview of operators
1.4.2 Telecom Italia
1.4.2.1 Performance into 2
1.4.2.2 Aims to 2
1.4.2.3 Losing direction?
1.4.2.4 Organisational change
1.4.2.5 Functional separation
1.4.2.6 Company sale
1.4.3 Wind
1.4.3.1 2007 results
1.4.3.2 Going into 2
1.4.4 BT Italia
1.4.5 Tiscali
1.4.5.1 Company break-up
1.4.6 FASTWEB
1.4.6.1 Company sale
1.5 Telecommunications infrastructure
1.5.1 National telecom network
1.5.2 International
1.5.2.1 Submarine cable networks
1.5.2.2 Satellite networks
1.5.3 Infrastructure developments
1.5.3.1 Next Generation Network (NGN)
1.5.3.1.1 Financial crisis
1.5.3.1.2 Major network contracts
1.6 Broadband market
1.6.1 Overview
1.6.1.1 Broadband statistics
1.6.1.2 Government support
1.6.1.2.1 Overview of National Broadband Plan
1.6.1.3 Regional development
1.6.2 Cable modems
1.6.3 Asymmetrical Digital Subscriber Line (ADSL)
1.6.3.1 Wholesale market
1.6.3.2 Telecom Italia
1.6.3.3 FASTWEB
1.6.3.4 Tiscali
1.6.3.5 Wind
1.6.3.6 ADSL2+
1.6.3.7 Naked DSL
1.6.4 Fibre-to-the-Home (FttH) networks
1.6.4.1 Telecom Italia
1.6.4.2 FASTWEB
1.6.5 Wireless broadband
1.6.5.1 Wireless Local Loop (WLL)
1.6.5.2 Wireless LANs/WiFi
1.6.5.2.1 AFT-Linkem
1.6.5.2.2 Telecom Italia
1.6.5.3 WiMAX
1.6.5.3.1 Auction for 3.5GHz licences
1.6.6 Mobile broadband
1.6.6.1 Internet via satellite
1.7 Convergence
1.7.1 Overview of media convergence
1.7.2 Key general trends
1.7.3 Triple play models
1.7.4 Quad play models
1.7.5 Regulatory issues
1.7.5.1 VoIP
1.7.6 Digital TV (DTV)
1.7.6.1 Broadband (IPTV)
1.7.6.1.1 Telecom Italia
1.7.6.1.2 Wind
1.7.6.1.3 FASTWEB
1.7.6.1.4 Tiscali
1.7.6.1.5 Other developments
1.7.6.2 Cable TV (CATV)
1.7.6.3 Satellite-based digital pay TV developments
1.7.6.3.1 Sky Italia
1.7.6.4 Digital Terrestrial TV (DTTV)
1.7.6.5 Analogue switchover
1.7.6.6 The digital TV network in Italy
1.7.6.7 Digital cinema
1.7.6.8 Video-on-Demand (VoD)
1.7.6.9 Personal Video Recorders (PVRs)
1.7.6.10 Free-to-Air (FTA) TV
1.7.6.11 VoIP
1.8 Mobile communications
1.8.1 Overview of Italy’s mobile market
1.8.1.1 Mobile statistics
1.8.1.2 Operator market shares
1.8.2 Regulatory issues
1.8.2.1 Spectrum regulations and spectrum auctions
1.8.2.1.1 Spectrum trading
1.8.2.1.2 Other frequencies
1.8.2.2 Roaming
1.8.2.3 Network sharing
1.8.2.4 Number portability
1.8.2.5 Mobile termination
1.8.2.6 Fixed-mobile convergence (FMC)
1.8.3 Mobile technologies
1.8.3.1 Digital
1.8.3.2 Third Generation (3G) mobile
1.8.3.2.1 3 Italia
1.8.3.2.2 Telecom Italia Mobile (TIM)
1.8.3.2.3 Vodafone Italy
1.8.3.2.4 Wind
1.8.3.2.5 Trial SCDMA network
1.8.4 Major mobile operators
1.8.4.1 3 Italia
1.8.4.2 TIM
1.8.4.3 Vodafone Italy
1.8.4.4 Wind
1.8.4.5 MVNOs
1.8.5 Mobile voice services
1.8.5.1 Prepaid
1.8.6 Mobile data services
1.8.6.1 Short Messaging Service (SMS)
1.8.6.2 Multimedia Messaging Services (MMS)
1.8.6.3 Mobile banking/ticketing
1.8.6.4 General Packet Radio Service (GPRS)
1.8.6.5 High-Speed Downlink Packet Access (HSDPA)
1.8.6.6 BlackBerry
1.8.6.7 i-mode
1.8.6.8 Femtocells
1.8.6.9 Vodafone live!
1.8.6.10 iPhone
1.8.6.11 Mobile TV
1.8.6.11.1 3 Italia
1.8.6.11.2 TIM
1.8.6.12 WiBro
1.8.6.13 Long-term evolution (LTE)
1.8.6.14 Mobile broadband
1.8.7 Mobile content and applications
1.8.7.1 Location-based services
1.9 Forecasts
1.9.1 Forecasts - broadband subscribers to 2
1.9.1.1 Scenario 1 - higher broadband subscriber growth
1.9.1.2 Scenario 2 - lower broadband subscriber growth
1.9.2 Forecasts - mobile ARPU to 2
1.9.3 Forecasts - UMTS subscribers to 2


2. MALTA
2.1 Key statistics
2.2 Telecommunications market
2.2.1 Overview of Malta’s telecom market
2.3 Regulatory environment
2.3.1 History
2.3.2 Regulatory authority
2.3.3 Telecom sector liberalisation in Malta
2.3.4 Privatisation of Telemalta
2.3.5 Interconnect
2.3.6 Access
2.3.7 Carrier PreSelection (CPS)
2.3.8 Number Portability (NP)
2.4 Fixed network operators in Malta
2.4.1 GO
2.4.2 Melita Cable
2.5 Telecommunications infrastructure
2.5.1 National telecom network
2.5.2 International infrastructure
2.6 Fixed voice market
2.6.1 Overview
2.7 Broadband market
2.7.1 Overview
2.7.1.1 Broadband statistics
2.7.2 Bitstream access: DSL and cable networks
2.7.3 Cable modems
2.7.4 Asymmetrical Digital Subscriber Line (ADSL)
2.7.5 Satellite broadband
2.7.6 Wireless broadband
2.7.6.1 WiFi
2.7.6.2 WiMAX
2.7.7 Wholesaling
2.8 Convergence
2.8.1 Overview of media convergence
2.8.2 Triple play models
2.8.3 Digital TV
2.8.3.1 Digital Terrestrial TV (DTTV)
2.8.3.2 TV-over-DSL (IPTV)
2.8.3.3 Voice over Internet Protocol (VoIP)
2.9 Mobile communications
2.9.1 Overview of Malta’s mobile market
2.9.2 Regulatory issues
2.9.2.1 Roaming
2.9.2.2 Mobile termination rates
2.9.2.3 Mobile Number Portability (MNP)
2.9.2.4 Spectrum regulations and spectrum auctions
2.9.3 Mobile technologies
2.9.3.1 Digital
2.9.3.2 Third Generation (3G) mobile
2.9.4 Major mobile operators
2.9.4.1 Vodafone Malta
2.9.4.2 GO mobile
2.9.5 Mobile voice services
2.9.5.1 Prepaid
2.9.6 Mobile data services
2.9.6.1 Short Message Service (SMS)
2.9.6.2 Multimedia Messaging Service (MMS)
2.9.6.3 General Packet Radio Service (GPRS)
2.9.6.4 Enhanced Data for GSM evolution (EDGE)
2.9.6.5 High-Speed Downlink Packet Access (HSDPA)
2.9.6.6 Mobile Internet
2.9.6.7 Mobile TV
2.10 Forecasts
2.10.1 Forecasts - broadband subscribers to 2
2.10.1.1 Scenario 1 - higher broadband subscriber growth
2.10.1.2 Scenario 2 - lower broadband subscriber growth


3. GLOSSARY OF ABBREVIATIONS


LIST OF TABLES
Table 1 - Country statistics Italy - 2008
Table 2 - Telecom revenue and investment statistics - 2006
Table 3 - Telephone network statistics - March 2008
Table 4 - Internet user statistics - June 2008
Table 5 - Broadband statistics - March 2008
Table 6 - Mobile statistics - March 2008
Table 7 - National telecommunications authority
Table 8 - Fixed and mobile market investment (historic) and annual change - 2004 - 2005
Table 9 - Fixed termination rates by company - 2007 - 2010
Table 10 - Telecom Italia unbundled lines - 2005 - 2007
Table 11 - Unbundled loops and access lines - 2004 - 2008
Table 12 - LLU, shared access price − connection, monthly rental - 2004 - 2007
Table 13 - Forecast wholesale market share - 2007 - 2010
Table 14 - Numbers ported - 2002 - 2007
Table 15 - CPS lines - 2005 - 2008
Table 16 - Fixed telephony and broadband market forecasts - 2006 - 2011
Table 17 - Comparative fixed network expenditure - 2007
Table 18 - Fixed network market share per quarter - 2007 - 2008
Table 19 - Telecom Italia accesses by sector - 2006 - 2008
Table 20 - Telecom Italia financial data: domestic and total - 2005 - 2007
Table 21 - Telecom Italia fixed network revenue by sector - 2006 - 2007
Table 22 - Telecom Italia financial data by sector and annual change - 2007 - 2008
Table 23 - Wind subscribers by sector - 2006 - 2008
Table 24 - Wind annualised fixed-line ARPU - 2006 - 2008
Table 25 - Wind financial data by sector and annual change - 2006 - 2007
Table 26 - Wind financial data by sector and annual change - 2007 - 2008
Table 27 - Tiscali subscribers by sector (Italy) - 2007 - 2008
Table 28 - Tiscali revenue by sector (Italy) - 2006 - 2008
Table 29 - Tiscali revenue breakdown by sector - 2007 - 2008
Table 30 - Tiscali ARPU - 2006 - 2008
Table 31 - Tiscali Group financial data - 2006 - 2008
Table 32 - FASTWEB financial data - 2005 - 2008
Table 33 - FASTWEB broadband subscribers - 2005 - 2008
Table 34 - FASTWEB broadband ARPU - 2006 - 2007
Table 35 - Telecom Italia network distances - June 2008
Table 36 - Broadband market share by operator - 2007
Table 37 - Internet subscribers and penetration rate - 1991 - 2008
Table 38 - Total fixed broadband subscribers by access type - 2002 - 2008
Table 39 - Broadband penetration by technology - 2004 - 2008
Table 40 - Broadband penetration and market growth - 2001 - 2008
Table 41 - Broadband lines by operator and technology - 2006 - 2008
Table 42 - Operator share of broadband net adds - 2007
Table 43 - Broadband lines by access speed - March 2008
Table 44 - ADSL subscribers - 2002 - 2008
Table 45 - Telecom Italia broadband subscribers - 2006 - 2008
Table 46 - Telecom Italia broadband ARPU - 2006 - 2008
Table 47 - Telecom Italia broadband revenue - 2007 - 2008
Table 48 - FASTWEB broadband subscribers - 2005 - 2008
Table 49 - FASTWEB broadband ARPU - 2006 - 2007
Table 50 - Tiscali subscribers (Italy) - 2007 - 2008
Table 51 - Tiscali broadband revenue and ARPU (Italy) - 2006 - 2008
Table 52 - Wind Internet subscribers by sector - 2005 - 2007
Table 53 - Naked DSL access charges - 2006
Table 54 - Fibre accesses - 2004 - 2008
Table 55 - Telecom Italia fibre accesses - 2007 - 2010
Table 56 - Telecom Italia fibre cabinet network - 2008 - 2010
Table 57 - TIM mobile broadband subscribers - 2006 - 2008
Table 58 - Bundled offers by operator - 2008
Table 59 - Statistical overview of Italy’s broadcasting market - March 2008
Table 60 - Pay TV subscribers by technology - 2003 - 2008
Table 61 - Digital pay TV revenue and growth in Italy - 2000 - 2005
Table 62 - Alice TV subscribers - 2007 - 2008
Table 63 - FASTWEB TV subscribers - 2006 - 2008
Table 64 - Forecast IPTV subscribers - 2006 - 2010
Table 65 - Cable TV subscribers and penetration rate - 1996 - 2007
Table 66 - Forecast cable TV subscribers and annual change - 2007 - 2013
Table 67 - Forecast satellite TV subscribers - 2007 - 2013
Table 68 - Sky Italia subscribers - 2006 - 2008
Table 69 - Sky Italia financial data - 2007
Table 70 - Mediaset financial data (Italy) - 2007 - 2008
Table 71 - Mediaset net revenue and profit by sector - H1 2008
Table 72 - Mediaset Premium active clients - 2007 - 2008
Table 73 - DTTV receivers and annual change - 2004 - 2006
Table 74 - Forecast DTTV households and annual change - 2007 - 2013
Table 75 - Telecom Italia VoIP subscribers - 2006 - 2008
Table 76 - Mobile operators, subscribers and annual change - March 2008
Table 77 - Mobile subscribers and penetration rate - 1995; 1997; 1999 - 2008
Table 78 - Mobile market share by operator - 2004 - 2008
Table 79 - Share of new subscribers by operator - 2005 - 2007
Table 80 - European roaming charges - 2007 - 2009
Table 81 - Cumulative mobile numbers ported - 2003 - 2007
Table 82 - Mobile interconnection charges - 2004 - 2007
Table 83 - Mobile termination rates - 2008 - 2011
Table 84 - Vodafone 3G subscriber - 2005 - 2008
Table 85 - TIM mobile subscribers and traffic in minutes - 2005 - 2008
Table 86 - TIM monthly ARPU - 2005 - 2008
Table 87 - TIM revenue by sector and annual change - H1 2008
Table 88 - TIM revenue - 2005 - 2008
Table 89 - Vodafone subscribers - 2001 - 2008
Table 90 - Vodafone revenue - 2007 - 2008
Table 91 - Vodafone prepaid, contract and blended ARPU - 2004 - 2008
Table 92 - Wind operational statistics and revenue - 2005 - 2008
Table 93 - Wind annualised mobile ARPU - 2005 - 2008
Table 94 - Wind mobile subscriber statistics - 2005 - 2008
Table 95 - Vodafone data as proportion of revenue - 2004 - 2008
Table 96 - Vodafone live! subscribers (Italy) - 2002 - 2007
Table 97 - Forecast broadband subscribers - higher market growth scenario - 2007 - 2013; 2018
Table 98 - Forecast broadband subscribers - lower market growth scenario - 2007 - 2013; 2018
Table 99 - Forecast mobile ARPU − 2005 - 2013
Table 100 - Forecast UMTS subscribers and penetration rate - 2006 - 2010; 2013
Table 101 - Country statistics Malta - 2008
Table 102 - Telephone network statistics - June 2008
Table 103 - Internet user statistics - June 2008
Table 104 - Broadband statistics - June 2008
Table 105 - Mobile statistics - June 2008
Table 106 - National telecommunications authority
Table 107 - Telecom market value - 2004 - 2007
Table 108 - Interconnection rates - 2008
Table 109 - Number porting charges by sector - 2008
Table 110 - Fixed-number portings - 2007 - 2008
Table 111 - Domestic outgoing fixed-line traffic in minutes - 2005 - 2008
Table 112 - Fixed-line subscribers - 2005 - 2008
Table 113 - GO financial data - 2004 - 2007
Table 114 - GO financial data - 2007 - 2008
Table 115 - GO revenue by sector - 2006 - 2007
Table 116 - GO revenue by sector - H1 2008
Table 117 - Fixed lines in service and penetration - 2001 - 2008
Table 118 - Outgoing fixed-line traffic - 2007 - 2008
Table 119 - Total Internet subscribers - 2002 - 2008
Table 120 - Internet subscribers by technology - 2005 - 2008
Table 121 - Broadband technologies: availability and coverage - 2008
Table 122 - Dial-up traffic in minutes - 2005 - 2008
Table 123 - Proportion of households with Internet access - 2003 - 2008
Table 124 - Broadband penetration - 2002 - 2008
Table 125 - Broadband subscribers by access method - 2002 - 2008
Table 126 - Broadband subscribers per operator - 2006 - 2008
Table 127 - Cable broadband penetration - 2000 - 2008
Table 128 - Forecast WiMAX network national coverage timetable, by operator - 2007 - 2009
Table 129 - WiMAX subscribers - 2007 - 2008
Table 130 - Wholesale broadband access market share by operator - 2003 - 2008
Table 131 - TV subscribers by connection type - 2006 - 2008
Table 132 - VoIP market share by operator - 2007
Table 133 - VoIP Minutes of Use (MOU) - 2005 - 2007
Table 134 - Mobile ARPU: contract and prepaid - 2004 - 2008
Table 135 - Mobile operators, subscribers and annual change - March 2008
Table 136 - Mobile subscribers and penetration rate - 1998 - 2008
Table 137 - European roaming charges - 2007 - 2008
Table 138 - Mobile termination rates - 2007 - 2008
Table 139 - Mobile number portings - 2006 - 2008
Table 140 - Vodafone Malta subscribers and ARPU - 2005 - 2008
Table 141 - Proportion of contract and prepaid subscribers, all operators - 2005 - 2008
Table 142 - SMS messages - 2005 - 2008
Table 143 - MMS messages - 2006 - 2008
Table 144 - Forecast broadband subscribers - higher market growth scenario - 2007 - 2012; 2018
Table 145 - Forecast broadband subscribers - lower market growth scenario - 2007 - 2012; 2018


LIST OF EXHIBITS
Exhibit 1 - EU - The New Regulatory Framework (NRF)
Exhibit 2 - Access and the local loop
Exhibit 3 − Principal backbone providers − 2008
Exhibit 4 - WiMAX licensees - March 2008
Exhibit 5 - Overview of media convergence
Exhibit 6 - UMTS auction results - October 2000
Exhibit 7 - BlackBerry services defined
Exhibit 8 - Mobile operators and spectrum allocation range - 2006
Exhibit 9 - 3G licence allocations - 2005; 2007

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