Autorità per le garanzie nelle comunicazioni

Quarterly Telecommunications Observatory (*)

- Updated to 30 September 2011 -

(*) – Informations showed in the following figures represent Agcom evaluation on data provided by the operators

- 1 - Index

1. Fixed access lines (total) 2. Fixed access lines (only new entrants) 3. Retail broadband access lines 4. Mobile subscribers – customer base 5. Mobile broadband 6. Mobile virtual operators (MVNO) 7. Mobile telephony: number portability

- 2 - 1. Fixed access lines (total) (1) 3Q2010

BT Italia; 0,4 Tiscali; 2,0 21.555 21.477 21.398 21.264 21.113 Vodafone Italia; 7,0 24.000 Others; 0,6 Fastweb; 7,3 20.000 5.941 6.096 6.224 6.274 6.257 16.000 Lines * ‘000 Lines 12.000 Wind; 10,2

8.000 15.614 15.380 15.174 14.990 14.856

4.000

0 Telecom Italia; 3Q10 4Q10 1Q11 2Q11 3Q11 72,4 Telecom Italia fixed access lines 3Q2011 OLO access lines

Tiscali; 1,8 BT Italia; 0,4 Vodafone Italia; 7,9 Others; 0,6  Over the past twelve months, direct wireline access lines were down - Fastweb; 7,4 0.4 million (growth of alternative operators ca. + 0.3 million, TI - 0.7 million). Wind; 11,4  Consequently, TI’s Italy market share was 2% down.  Vodafone Italy and Wind have grown respectively by 0.9% and 1, 2%.  Vodafone has consolidated its position as third largest fixed network Telecom Italia; operator (7.9% vs 7.4% for Fastweb). 70,4

(1) – Figures consistent with AGCOM’s Annual Report 2011. Includes: Telecom Italia’s access lines, full unbundling (voice and data), Dsl Naked, Fiber

Source: Agcom on data provided by operators - 3 - 2. Fixed access lines (only new entrants) 3Q2010

5.941 6.096 6.224 6.274 6.257 Others Tiscali 2,3% 7.000 7,1% 56 83 79 64 60 6.000 Wind 5.000 Vodafone 37,0% 25,3% 4.000 4.545 4.703 4.826 4.880 4.862 Lines * ‘000 Lines 3.000

2.000

1.000 1.038 1.036 1.048 1.047 1.065 276 279 285 287 274 BT Italia 0 Fastweb 3Q10 4Q10 1Q11 2Q11 3Q11 26,6% 1,6%

Fiber Naked dsl Unbundling (voice, voice+data) Virtual 3Q2011  In Q3 (cutoff date: 30 Sept.), compared with the previous quarter, for the first time the number of the new entrants direct access lines, even though Others Tiscali 2,2% Wind slightly, decreases in absolute value. 6,1% 38,4%  In Q3, unbundled access lines (full and virtual) exceeded 4.9 million, an Vodafone increase of 0.3 million compared to Sept. 2010, but compared to Q2, due 26,8% to a decline in TeleTu customers, decreased by about 18,000 access lines.  In the distribution of direct access, Wind holds the first place (38.4%).  Vodafone up to 26.8%, Fastweb down to 25.2%. BT Italia Fastweb 1,4% 25,1%

Source: Agcom on data provided by operators - 4 - 3. Retail broadband access lines 3Q2010 13.048 13.259 13.458 13.516 13.333 14.000 306 295 300 292 291 Vodafone Italia 13.000 Others 10,9% Tiscali 2,4% 12.000 4,4% Fastweb 11.000 13,1% Lines * ‘000 Lines 13.210 12.757 12.964 13.159 13.041 10.000

9.000 Wind 8.000 14,0% Telecom Italia 3Q10 4Q10 1Q11 2Q11 3Q11 55,1% DSL Other technologies

 In absolute values, broadband lines down compared to the previous quarter 3Q2011 (approximately -0.18 m) (*).  YoY broadband growth was + 0.3 million hits, reaching an aggregate 13.3 Vodafone Italia million at the end of Q3. 12,5% Others 2,6%  Avg. download speed increased. YoY lines with nominal speed equal to or Tiscali 3,8% greater than 2 Mbit /s increased from ca. 80% to 86%.  TI’s market share (53.6%) falls YoY by 1.5%, Vodafone and Wind gain Fastweb 11,7% cumulatively about 3.5 percentage points.  Fastweb market share down 1,4%. (*)

Telecom Italia Wind 53,6% (*) - As a result of the settlement of litigations Fastweb reduced the number of access lines by 197,000 in 15,8% the third quarter of 2011. Source: Swisscom Interim Report January-September 2011, pag. 34.

Source: Agcom on data provided by operators - 5 - 4. Mobile subscribers – customer base 3Q2010

92.000 3 Italia Telecom Italia 9,9% 34,1% 90.000 Wind 21,8% 88.000

Lines * ‘000 Lines 86.000 90.889 91.132 91.599 89.880 90.605 84.000

82.000

80.000 3Q10 4Q10 1Q11 2Q11 3Q11 Vodafone 34,1%

Active lines grew YoY(1.7 million) mainly due to the adoption of SIMs used for data traffic. 3Q2011 45% of the total growth in customer base is due to business customers. 3 Italia Telecom Italia 9,9% Growing market share of TI (+0.5%) and Wind (+0.9%), Vodafone down by 34,6% 1.3%. Wind 22,7% 83, 2 % of the active lines are "prepaid", a slight decrease compared to Q3 2010 (84.2%). Business customers reached 11.5 million rising from 11.9% to 12.5% of the total customer base. The telephone traffic (more than 98 billion minutes) increased almost 10% compared with the first nine months of 2010. Vodafone 32,8% The SMS sent (over 66 billion in Q1 2011) were 3.7% up.

Source: Agcom on data provided by operators - 6 - 5. Mobile broadband

Sim data traffic (*1000) Connect card (*1000)

20.000 6.500 +9,8% 6.000 15.000 5.500 5.000 +16,3% 4.500 6.065 10.000 16.500 18.120 4.000 5.216 3.500 5.000 3.000 2.500 0 2.000 3Q10 3Q11 3Q10 3Q11 Data traffic from beginning year (terabyte)

100.000  In the 9M2011, SIMs with broadband data traffic exceeded 18.1 million (+9.8% compared with Q3 2010). 80.000 +54,4%  The "connect cards" passed the 6 mln mark (+16.3%). 60.000 135.474 87.741 40.000

20.000

0 3Q10 3Q11

Source: Agcom on data provided by operators - 7 - 6. Mobile virtual operators (MVNO) 3Q2010

4.000 Erg Petroli 4,7% Others Poste Mobile 3.500 11,1% 46,1% 3.000

3.922 4.073 Daily Telecom Lines Lines *‘000 2.500 3.783 3.418 3.543 6,1% 2.000 Carrefour 6,6% 1.500 Coop Italia 1.000 12,1% 3Q10 4Q10 1Q11 2Q11 3Q11 Fastweb 13,3% 3Q2011  Continued growth of MVNO subscribers (+0.7 million in the last twelve months), for a total which exceeds 4 million SIMs, with 4,4% market share. Daily Others Telecom 7,5%  Poste Mobile exceeds 50% (+4.7 percentage points) due to the 5,6% Erg Petroli integration of mobile and postal services. Carrefour 5,7% 6,2%  Fastweb, in the last year, gains more than 100,000 subscribers and Poste Mobile gets just under 14% of the market to strengthen its position, 50,8% distancing Coop Italia. Coop Italia  Voice Traffic and SMS sent in the 9M2011 increased respectively by 10,5% 23% and 52%.

Fastweb 13,8%

Source: Agcom on data provided by operators - 8 - 7. Mobile telephony: number portability

35.000 3Q11 - Lines as donor (in the quarter)

30.000

25.000 Mvno Wind H3G 5,6% 20.000 23,0% 10,9% 34.737 Lines * ‘000 Lines 30.912 32.821 15.000 27.229 28.760 10.000

5.000 Telecom Vodafone Italia 0 29,2% 31,2% 3Q10 4Q10 1Q11 2Q11 3Q11

 In 3Q, the number of mobile lines ported reached 34,7 million (cumulative). 3Q11- Lines as recipient (in the quarter)  The mobile virtual operators subscribers were up 900k in 3Q (out of which about 50,000 in the third quarter of 2011.  With reference to Telecom Italia, on a quarterly basis, the balance Mvno H3G “donating-recipient" although still negative in the third quarter (- Wind 8,1% 9,3% 138,000) confirms upper trend since the last quarter of 2010. 26,0%  Vodafone back to positive growth (from -31,000 for the second quarter to +69,000 of the third), while Wind was still positive but slowing (from +131,000 to +57,000). Telecom Italia Vodafone 24,0% 32,5%

Source: Agcom on data provided by operators - 9 -