BMI View: A mobile penetration rate of over 142% is testament to the maturity of the Italian mobile market. However, operators have become over-reliant on simplistic low-cost service offerings to retain customers. In consequence, profit margins are slim and operating costs are being scrutinised closely with respect to return on investment. Market forces are once again driving consolidation, with WIND set to be acquired by 3 Italia in the near future. We believe newcomer Iliad’s low-value strategy will prevent the Italian market from pursuing new competitive dynamics.
A saturated market, unable to progress
Italy ranks 14th out of 20 Western European telecommunications markets surveyed in BMI’s proprietary Risk/Reward Index, scoring 56.7
