The Italian market for telecommunications equipment and services is the fourth largest in Europe. In 2005, the Italian telecommunication services market is estimated at $42.493 billion, a 4 percent growth in Euro currency over 2004.

The telecommunication service companies confirm their growth is continuing (+3.9%), if at a slower speed. In the first semester of 2005, telecommunication services were assessed at Euro 17,060 million (3.9% greater than the first semester of 2004, when they increased 5.1%). This data shows a minor, but appreciable growth in mobile services.
In the first semester of 2005, mobile services showed an estimated volume of business of Euro 8,270 million, an increase of 5.6% over the first semester of 2004 (against growth of 12% of 2003).
This data shows both the increase in active phone lines (66.4 million units in June 2005, a growth rate of 12.8% over June 2004) and an increase in the average cost per month of the line (32.2 Euro; 4.9% more than the first semester of 2004).
The value-added services of the mobile network (data communication, messaging and internet access) have increased the average cost per month, moving from 15% to 19%, and have increased +31.4%.
Fixed line services have increased 2.3 percent, with a total market estimated at Euro 8.790 million, after a drop in sales from the previous years.
The voice telephony component is estimated at 7.190 million Euros (+0.8%), while the remaining component of value-added services reached 1.600 million Euros, a significant increase of 9.6%.

Most growth is in wireless (mobile) communications, which continues to grow faster than wire-line (fixed) services.  Italy is one of the largest mobile communications markets in Western Europe.
Mobile phone diffusion in Italy is among the highest in the world, with over 63 million mobile phone lines activated, serving more than 42 million clients and equaling a penetration rate of 72 percent. The introduction of third-generation phone terminals has been very successful thanks to very aggressive promotional campaigns by the operators and the availability of new digital content.

In 2004, revenues from mobile telephone services are estimated at approximately $22.1 billion, an increase of close to 14 percent in Euro currency over 2003, with value added services (messaging, data communication, photographic and entertainment services) within that component growing more than 40 percent over 2003.

Revenues from fixed line network telecom services, including voice telephony, data communication, Internet access and fixed line network value added services, are assessed at $19.6 billion, a decrease of 0.6 percent in Euro currency over 2003.

With regard to Internet usage, Italy has experienced explosive growth in the past five years and the number of business and home Internet users has boomed: assessed at 25.5 million in 2004, it is estimated to have reached over 28 million in 2005.  Italian Internet users are relatively less mature in the use of this medium with respect to the European average, but they are rapidly catching up. 
Broadband access is developing very rapidly, with 6 million users connected at the end of 2005, mainly due to the increasing offer of interactive digital content...(continues)

Please note:
This Industry Sector Profile is also part of the more comprehensive
ITALY COUNTRY COMMERCIAL GUIDE 2006.