Autorità per le garanzie nelle comunicazioni Quarterly Telecommunication Markets Observatory (*) - Updated to 30 June 2012 - (*) – Data provided by operators and elaborated by Agcom. - 1 - Index 1. Fixed access lines (total) 2. Fixed access lines (new entrants) 3. Retail broadband access lines 4. Mobile subscribers – customer base 5. Mobile subscribers by customer/contract type 6. Mobile broadband 7. Mobile virtual operators (MVNO) 8. Mobile telephony: number portability - 2 - 1. Fixed access lines (total) (1) 2Q2012 24,00 22,50 22,28 Tiscali; 1,7 Vodafone BT Italia; 0,4 22,00 21,69 Italia; 9,7 20,00 Others; 0,8 6,73 6,86 7,05 7,24 7,29 Fastweb; 7,24 7,34 7,39 7,39 18,00 7,8 16,00 14,00 15,77 12,00 15,61 15,38 15,17 14,99 14,86 14,68 Lines [mln] Lines 14,48 14,30 Wind; 13,8 10,00 8,00 Telecom 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Italia; 65,9 Telecom Italia fixed access lines OLO access lines 2Q2011 Compared to June 2011, direct fixed access lines decreased by about 590 thousands. The 1H2012 reduction (-328 thousands) is higher than the corresponding value in 1H2011 (-150 thousands). BT Italia; 0,4 Tiscali; 1,8 Vodafone In the last twelve months, Telecom Italia’s market share further decreased by Italia; 9,7 Others; 0,8 1.5%, up to ~66%. Fastweb; 7,1 The Vodafone Group market position is stable: Teletu experiences a decline balanced by the growth of “Vodafone Italia” fixed network activities. Wind has consolidated its position as the second largest fixed network operator (+0.8% compared with 4Q2011) and reached about 3 millions of subs. Wind; 13,0 Fastweb’s market share is increasing, both on a yearly (+0.7%) and a quarterly Telecom basis (+0,2% compared with 1Q12). Italia; 67,3 (1) – Compared to Dec. 2011 update, WLR lines have been included. Therefore, fixed access lines are given by the sum of full unbundling (voice and data), Dsl Naked, WLR and fiber lines. Data shown in the figure are in homogeneous terms. - 3 - 2. Fixed access lines (new entrants) 2Q2012 7,39 Others 7,29 8,00 6,73 Tiscali 2,3% 1,01 1,02 0,96 0,93 0,87 Wind ] 0,95 5,0% 7,00 0,88 0,92 0,98 40,4% Vodafone 6,00 mln 28,4% [ 5,00 5,02 5,09 5,15 4,00 4,54 4,63 4,78 4,89 4,94 4,92 Lines 3,00 2,00 1,00 1,03 1,04 1,04 1,05 1,05 1,06 1,09 1,08 1,08 BT Italia 0,27 0,28 0,28 0,28 0,29 0,27 0,28 0,28 0,28 Fastweb 0,00 1,1% 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 22,9% Fiber Naked dsl Unbundling (voice, voice+data) (1) Wholesale Line Rental 2Q2011 2Q2012 confirms - compared with March results - the overall new Others entrants customer base (~7.4 millions). Tiscali 2,3% 5,6% The growth of full LLU lines (1) (+60 thousands) comes along with a reduction of WLR lines of the same extent. Wind Vodafone 39,6% Wind gathers 40.4% of wholesale lines sold by Telecom Italia (+0,8% 29,5% compared to 2Q2011). The number of Fastweb’s lines is increasing too (+1,1%). All other main operators experience a reduction in the market share: Fastweb BT Italia -1,1% Vodafone, -0.1% BT Italia, -0.6% Tiscali. 21,8% 1,2% (1) – Including virtual LLU. - 4 - 3. Retail broadband access lines 2Q2012 13,45 14,00 13,32 Vodafone 12,66 0,30 0,31 0,29 0,30 0,30 0,30 13,00 0,30 Italia 0,29 Others 0,29 12,3% Tiscali 2,5% 12,00 3,7% 11,00 12,77 12,96 13,01 13,04 13,13 13,16 13,15 Fastweb 12,37 12,56 10,00 12,4% Lines [mln] Lines 9,00 8,00 Telecom 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Italia Wind 52,4% DSL Other technologies 16,7% YoY, broadband lines growth was about +150 thousands. Compared 2Q2011 with the beginning of the year, the customer base is stable (1). Telecom Italia’s market share (52,4%) falls (-1.5% compared to the last year) to the benefit of Wind’s and Fastweb’s (both +0,8%). Vodafone Italia Others Tiscali 12,7% 2,1% The number of Vodafone subscribers is reducing (albeit marginally, -30 3,9% Fastweb thousands) with a consequent decline in the market share as compared 11,6% to June 2011 (-0,4%). Avg. download speed increased: in the last year, lines with nominal speed equal to or greater than 2 Mbit/s increased from 82% to 88%. Wind 15,9% Telecom Italia 53,9% (1) Due to changes in the methodologies used in network systems surveys, 1Q12 data are not consistent with Observatory’s previous release. - 5 - 4. Mobile subscribers – customer base (excl. Mvno, see page 9) 2Q2012 92,0 3 Italia Telecom 90,0 10,0% Italia 34,9% Wind 88,0 23,0% 86,0 91,60 92,39 92,60 92,35 90,60 90,89 91,13 Lines [mln] Lines 89,88 89,08 84,0 82,0 Vodafone 80,0 32,1% 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 YoY, the customer base has increased of 1.2 millions and is stable 2Q2011 from the beginning of the year. In 1H2012 the number of residential lines decreased (-417 Telecom 3 Italia Italia thousands), balanced by a growth of business lines (about +373 10,0% 34,3% thousands). Wind 22,6% The number of prepaid lines decreased of 960 thousands, while the number of postpaid lines increased of about 916 thousands. Telecom Italia’s and Wind’s market shares grow up (+0.6% and +0.4% YoY, respectively) at Vodafone’s expense (-1.1%). YoY, voice traffic increased by 5.5% (69 billion minutes as a whole) YoY, the number of SMSs sent has increased by 8.8% (48 billions as a Vodafone whole). 33,2% - 6 - 5. Mobile subscribers – by customer/contract type Customer type Contract type Market share by customers – 2Q2012 (%) 78,6 75,5 76,1 Residential Business 79,9 80,3 75,5 80,0 80,0 60,0 "3" 60,0 "3" TI 7,0% 40,0 10,5% 31,3% Wind 40,0 10,5 13,6 (7,3) 20,0 11,3 20,0 15,0 16,9 Wind (10,4) (30,9) 6,0% 12,1 25,5% (5,6) 0,0 0,0 (24,9) Lines [mln] Lines 2Q10 2Q10 Vod 2Q11 2Q11 2Q12 28,5% TI 2Q12 (28,8) Vod 58,6% 32,6% (58,2) Business lines Residential lines Postpaid lines Prepaid lines (33,8) Customer type Business customers (12.1 mlns in June) have increased on an annual basis of almost 800 thousands, a value higher than the one for the residential customers segment (+396 thousands lines). Market share by contracts – 2Q2012 (%) The business segment’s share increased by 0.7% (from 12.4% to 13.0% of the total customer base). Prepaid Postpaid Vodafone leads the residential market (32.6%; 33,6% in 2011), followed by Telecom Italia and Wind. Telecom Italia holds a strong position in the business segment (58.6%). "3" TI 8,6% 32,8% Wind (9,2) "3" Contract type (31,8) 26,2% Wind 16,4% 81.7% of total lines are prepaid, a slight decrease from June 2011 share (83,5%). (14,0) (25,6) 8,5% Postpaid lines increased of 3.2 millions in the last two years, prepaid lines are stable. (7,3) This is mainly due to the widespread use of smartphones and tablets, usually sold in bundle with postpaid offers. Vod Vod TI 32,4% 30,7% 44,4% Telecom Italia’s and Vodafone’s market shares are both slightly below 33% in the prepaid (33,4) (31,9) (46,9) segment. Slightly less than 45% of the postpaid segment is controlled by Telecom Italia. (the corresponding values for June 2011 are shown in brackets) Source: Agcom evaluation on data provided by operators - 7 - 6. Mobile broadband Sim data traffic (*1000) Connect card (internet key) (*1000) 7.000 25.000 6.000 20.000 +12,3% 5.000 +11,2% 15.000 4.000 5.862 6.518 18.695 20.987 3.000 10.000 2.000 5.000 1.000 0 0 2Q11 2Q12 2Q11 2Q12 Data traffic from the beginning of the year (terabyte) In 1H2012, SIMs with broadband data traffic reached about 21 millions (+12,3% compared to 1H2011) (1). The dedicated "connect card" (the keys) exceed 6.5 millions 60.000 (+11.2%), albeit showing a slight decrease in comparison with the 50.000 +36,5% first quarter’s value. This event may be due to an effect of 40.000 substitution with "smartphones“ and "tablet". 85.190 116.251 30.000 In 1H2012, data traffic has grown by 36.5%, with an increase of 20.000 data traffic per SIM by about 21%. 10.000 0 2Q11 2Q12 (1) As a result of a change in the methodologies used in data management by an operator, the values are not consistent with the corresponding data in previous updates of the Observatory. - 8 - 7. Mobile virtual operators (MVNO) 2Q2012 4,00 Erg Mobile 6,9% 3,50 Others Daily 9,5% Telecom 3,00 5,7% 2,50 3,93 4,29 3,61 3,63 Coop Italia 3,25 3,44 2,00 2,91 3,05 7,2% 2,65 Lines Lines [*‘000] 1,50 Poste Mobile Fastweb 1,00 56,8% 14,0% 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 2Q2011 The growth of MVNO subscribers continues (+656 thousands in the last twelve months), leading to a number of SIMs that exceeds 4,3 millions (about 4.4% of the total customer base).