Italy’s Telecommunications Odyssey: Navigating the Past, Present and Future

30 August, 2023

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From the origins of telegraphy in the mid-19th century to the current era of 5G aspirations, Italy’s telecommunications journey is a tale of innovation, strategic shrewdness and unwavering determination to provide connectivity. Telegraph lines in the late 1840s. The 19th century connected Italian cities, preparing the way for the rapid exchange of information. In 1889, Milan welcomed Italy’s first telephone exchange, signaling the transition to voice communication. The rebirth of the state-owned telecommunications company after World War II in 1947 propelled Italy’s return to growth.

Italy’s venture into satellite communications, particularly with the launch of Italsat in 1964 in cooperation with NASA, expanded its global connectivity. The 1980s. i 90. witnessed groundbreaking innovations, including the launch of the first national mobile network in 1986. The emergence of Telecom Italia in 1994, resulting from the merger of various entities, marked a watershed moment in shaping Italy’s telecommunications destiny.

Italy’s transition from analog to digital in the late 20th century, with Internet services such as ISDN becoming an integral part, liberalization fostered competition, innovation and expansion of its telecommunications portfolio. Continuing its telecommunications odyssey, a legacy of innovation and a relentless pursuit of connectivity defines Italy’s narrative. In a world dependent on seamless communications, Italy’s telecommunications evolution remains a testament to its commitment to remaining at the forefront of connectivity through various eras.

Telecom Italia S.p.A. – In 1994, Italy witnessed the creation of telecom giant Telecom Italia through the strategic merger of several STET subsidiaries. The following years marked the birth of TIM for mobile services, the privatization of Telecom Italia, financial turbulence and the introduction of high-speed Internet services. The company underwent a rebranding in 2015, adopting the unified TIM brand, and officially became TIM S.p.A. in 2016. In recent years, the KKR deal and strategic moves, including the sale of its fixed-line network and network assets, have demonstrated TIM’s ability to adapt in a competitive market.

Italy’s telecommunications landscape is shaped by major players such as Telecom Italia, Vodafone and Wind Tre, while disruptors such as Ho-mobile, Coopvoce and Iliad are challenging the established order. Wind Tre, formed from the merger of Wind and 3 Italia, has become a major player with 31 million mobile customers. An alliance with Enel Open Fiber facilitated the expansion of high-speed Internet. However, Iliad’s entry into the market, facilitated by Wind Tre’s sale of spectrum and infrastructure assets, brought a new dynamic to the Italian telecommunications sector.

Iliad Italia – In 2016

, the Italian subsidiary of France’s Iliad S.A., Iliad Italia has entered Italy’s dynamic telecommunications scene with a strategic focus on acquisitions, network expansion and technological excellence. A key moment in 2017 was Iliad Italia’s acquisition of spectrum from Wind Tre, expanding its network by securing nearly 300 sites. The company strengthened its infrastructure in 2018 through a significant partnership with Cellnex, gaining access to more than 7,700 cellular antennas and officially launching operations on May 29, 2018.

Iliad Italia’s growth was evident in 2018 with the acquisition of two million customers, showing rapid market penetration. Regulatory successes in 2020 allowed the company to provide telephony services to the public, leading to further expansion into fixed telephony with agreements signed in 2020 and 2022 with Open Fiber FTTH and FASTWEB, respectively. In 2021, Iliad Italia joined FiberCop, underscoring its commitment to innovation.

As of 2023, Iliad Italia’s mobile network has 16,200 active nodes, covering much of the country through some 9,470 network sites and 6,730 sites in less densely populated areas through its Zefiro Net joint venture with Wind Tre. Actively deploying 3G, 4G and 5G networks, Iliad Italia is strategically leveraging national coverage through RAN sharing and roaming agreements with Wind Tre. Agreements with Cellnex and INWIT strengthen its network infrastructure.

Wind Tre S.p.A. – In 2016, Wind Tre, formed from the strategic merger of 3 Italy and Wind Telecomunicazioni, became a major force in Italy’s telecommunications industry under CK Hutchison Holdings Limited. By 2022, CK Hutchison Holdings became the sole shareholder, consolidating Wind Tre’s dominance. The company is now the leading mobile operator in Italy for SIM HUMAN and the third largest overall.

The company underwent a rebranding in 2020, uniting under the WINDTRE, WINDTRE BUSINESS and Very Mobile brands in response to growing competition. In 2022, Wind Tre’s progressive approach led to the authorization of a partnership with Iliad to share 5G in rural areas. The completion of the Zefiro Net joint venture in 2023 with Iliad demonstrates Wind Tre’s strategic foresight, solidifying its position as an industry innovator.

Vodafone Italia S.p.A. – In the dynamic field of telecommunications in Italy, Vodafone Italia, a subsidiary of Vodafone Group Plc, has been a transformative force, with 30,153,000 mobile customers and 3,182,000 fixed phone lines. The company’s journey began in 1995 with the merger of Omnitel Sistemi Radiocellulari Italiani and Pronto Italia, challenging Telecom Italia’s monopoly. In 1999, a strategic move by Olivetti led to a majority stake for Mannesmann, and the subsequent Vodafone-Mannesmann merger in 2000 zaow

ocated Vodafone Omnitel N.V. The company continued to make waves, acquiring Tele2 subsidiaries in 2007 and Verizon shares in 2013.

In 2015, a name change to Vodafone Italia S.p.A. reinforced its Italian identity. The introduction of ho-mobile in 2017 targeted frugal consumers, and the bold decision to shut down the 3G network in 2021 underscored the focus on 4G and 5G capabilities.

FASTWEB S.p.A. – Offering a wide range of services from fixed and mobile telephony to broadband Internet and IPTV, FASTWEB is synonymous with advanced communications solutions. In 2007, a significant investment by Swisscom AG marked a seismic shift, increasing FASTWEB’s financial position and enabling diversification.

In 2008, FASTWEB became a Mobile Virtual Network Operator (MVNO), introducing the Quadruple Play service. Swisscom’s continued involvement led to FASTWEB’s delisting in 2010. The strategic move to full MVNO in 2015, coupled with the acquisition of Tiscali’s fixed-wireless business in 2018, demonstrated FASTWEB’s pursuit of technological excellence.

Securing a 5G license in 2019 has positioned FASTWEB as the fifth mobile network operator in Italy. By 2023, 60% of its revenues will come from business customers, highlighting its adaptability and responsiveness. FASTWEB’s role as a key player in the government sector further underscores its position in the market.

Italy’s Telecommunications Dilemma: High Towers, Legal Prevention and Economic Tides.

Over the past decade, due to the needs of efficiency and cash flow, mobile operators have transferred these assets to companies specializing in their management, such as Inwit and Cellnex. Today, these two Tower Companies are in a position of significant oligopoly in the market, controlling some 98% of existing radio base stations in Italy. This fact appears to be an anomaly and should be further investigated by the antitrust authorities.

In addition, a law (Legislative Decree No. 207/2021, Article 51 of the right of first refusal) was enacted in December 2021, effectively strengthening their position by introducing the concept of the right of first refusal and causing harm to smaller companies operating in the market, but most importantly.

This results in significant economic damage to site owners, who, in the presence of less competition and sometimes even an intimidating attitude, find themselves accepting lower commercial offers than they might accept under normal competitive conditions. All of this results in damage to the Italian economy.

TIP Italia’s business does not target the major tower companies in the market, but is legitimately aimed at owners of sites on which telecommunications systems are installed, who have the opportunity to capitalize on future fees agreed upon for the location of these sites.

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Italy’s Telecommunications Odyssey: Navigating the Past, Present and Future

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