Autorità per le garanzie nelle comunicazioni Quarterly Telecommunication Markets Observatory (*) - Updated to 30 September 2014 - (*) – Data provided by operators and elaborated by Agcom. - 1 - Index Focus – Price in the sector 1. Fixed network: access lines (total) 2. Fixed network: access lines (new entrants) 3. Fixed network: retail broadband access lines 4. Mobile lines: MNO + MVNO 5. Mobile lines: MNO 6. Mobile lines: by customer/contract type (MNO) 7. Mobile lines: MVNO 8. Mobile broadband (MNO+MVNO) 9. Mobile telephony: number portability - 2 - Focus – Telecommunications prices in Europe [1] Fixed voice 30,0 26,8 25,0 26,5 20,0 15,0 10,0 5,0 Mobile voice and 24,6 Mobile broadband - 7,7 16,0 data 22,4 (**) 21,3 23,0 Ita EU (*) Fixed broadband Fixed Network – Italy is in line with Europen average price value for traditional fixed voice service, and above the average prices for broadband services Mobile network – Italy is above the average prices for bundle offers (data and voice), but lower for only data mobile service [1] – Data (July 2014) make reference to average prices (with respect to £ (PPP)/mese) of some baskets of services designed to catch different consumers profile. For greater details, looking at Ofcom, “The Telecommunications market 2014” (Dec. 2014) – pages 83-113 (Chap. “2.Comparative international pricing” and “Appendix B, - Comparative international pricing methotology “, pages. 338-365 - http://stakeholders.ofcom.org.uk/market-data-research/market-data/communications-market-reports/cmr14/ (*) – Average value of Germany, France , Spain, UK (**) - Values about “dedicated data-only mobile broadband connections” Source: Agcom evaluation on Ofcom data - 3 - 1. Fixed network: access lines (total) (1) 3Q2014 24,00 21,75 21,21 20,64 20,00 BT Italia Tiscali 7,59 7,75 7,86 7,89 2,0% 7,84 7,88 7,97 8,05 7,99 0,4% 16,00 Vodafone Others 9,6% 3,5% 12,00 Fastweb 8,00 10,0% 14,16 14,00 13,78 13,55 13,37 13,21 13,03 12,83 12,65 Lines [mln] Lines 4,00 0,00 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Wind Telecom 13,2% Italia Telecom Italia fixed access lines OLO access lines 61,3% On yearly basis, direct fixed access lines decreased by about 560 thousands (-1.1 millions in the last two year). 3Q2013 In the last two years the customer base of Telecom Italia, has decreased by about 1.5 million lines. Of these, only 400 thousand (25%) has been “recovered” by OLOs. BT Italia Tiscali Vodafone 0,3% 2,0% In the last twelve months, Telecom Italia’s market share further decreased by 1.7%, to 9,4% Others 61.3%. 2,7% Fastweb confirms his growth trend, reaching a market share about 10% (YoY +0.9%). Fastweb 9,1% The market share of the other main OLOs remain stables only Wind decrease his market share (-0.3%). The weight of other operators has grown (+0.8%), mainly due FWA services. Telecom Wind Italia 13,5% 63,0% Source: Agcom evaluation on data provided by operators (1) Including Telecom Italia physical access, full unbundling (voice and data), SLU, Dsl Naked, WLR, FWA and fiber lines. - 4 - 2. Fixed network: access lines (new entrants) 7,84 7,99 7,59 3Q2014 9,00 8,00 0,32 0,36 0,45 0,49 0,24 0,28 0,38 0,41 0,52 7,00 Others 9,1% Wind 6,00 Tiscali 5,1% 34,2% 5,00 5,18 5,26 5,35 5,38 5,36 5,38 5,42 5,49 5,39 4,00 Lines [mln] Lines 3,00 0,28 0,30 2,00 0,29 0,30 0,29 0,30 0,31 0,31 0,31 1,06 1,11 1,12 1,11 1,10 1,11 1,13 1,13 1,16 BT Italia 1,00 Vodafone 0,83 0,80 0,77 0,74 1,0% 0,70 0,67 0,66 0,64 0,61 24,8% Fastweb 0,00 25,8% 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Wholesale Line Rental Naked dsl Fiber Unbundling (voice, voice + data) (1) FWA On a yearly basis the number of accesses lines grew by about 150 thousands (400 3Q2013 thousands compared to September 2012), slight decreasing with respect to the previous quarter (-60 thousands). Others Full LLU lines (1) remain stable, mainly due the growth of SLU services (150 Tiscali 7,2% thousand at end of September), while the WLR lines decreased by about 90 5,3% thousands. Wind 36,5% With respect to access lines indicator, Wind ranks at the first place (34.2%), while it Vodafone has experienced a decline on a YoY by 2.3%. 25,4% FWA access exceed 500 thousands lines, with principal operators in this market segment Linkem (41.9%), NGI (28.9%) and Aria (24.5%).(2) Fastweb BT Italia 24,6% 0,9% Source: Agcom evaluation on data provided by operators (1) – Including virtual LLU and Subloop ULL. (2) – Including Aria, Linkem, Mandarin and Go Internet (ex WaveMax) and NGI - 5 - 3. Fixed network: retail broadband access lines 14,23 14,50 13,94 13,68 14,00 3Q2014 0,64 0,67 0,71 0,79 0,91 1,04 1,17 13,50 0,54 0,59 13,00 Vodafone Others 12,50 Tiscali 12,3% 6,1% 12,00 3,4% 13,14 13,17 13,28 13,29 13,23 13,22 13,23 13,16 11,50 13,06 Fastweb 14,2% 11,00 Lines [mln] Lines 10,50 10,00 Telecom 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Italia Wind 48,7% DSL Other technologies 15,2% YoY, broadband lines growth of about +290 thousands. Compared with last June, the customer base increased by about +30 thousands lines. From the beginning of the year the number of xDSL lines has decreased by about -170 3Q2013 thousand. The access lines that use other technologies reached about 1.2 million, mainly due to FWA lines (+104 thousands) and NGA lines (+277 thousands). NGA lines (640 thousands as a whole) represent the 4,5% of the broadband lines (2,3% in Tiscali Vodafone Others September) 3,7% 11,8% 5,5% Telecom Italia market share has been reduced on a yearly basis of 0.8%, falling to 48.7%. Fastweb 13,7% Also Wind has lost market share (-0.7%) reaching a value of 15.2%. Fastweb and Vodafone are the main beneficiaries (+0.5%), and mainly FWA operators Telecom Italia (+0.6%) as smaller companies. 49,5% Wind Compared with 3Q13, Wind market share shows a slight decrease (-0.6%) 15,9% Source: Agcom evaluation on data provided by operators - 6 - 4. Mobile lines: MNO + MVNO 100,00 3Q2014 95,00 Poste Mvno Others Mobile Telecom 90,00 3,7% H3G 3,3% Italia 97,56 10,3% 32,1% 96,92 97,18 97,20 97,34 96,85 96,32 95,84 85,00 94,65 Lines [mln] Lines 80,00 75,00 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Wind Vodafone 23,0% 27,5% Compared to previous quarter, the customer base decreased by about 1.2 million 3Q2013 lines. The reduction reaches -2.7 millions on yearly basis, value obtained through Poste Mvno Mobile Others a reduction of 4.4 millions for the MNO and a growth of 1.7 for MVNO. Telecom H3G 2,8% 2,3% A pronounced decrease of Vodafone market share (-2.1%) is recorded, from this 9,8% Italia reduction takes advantage mainly the MVNO (+2.9%); H3G increases his market 32,5% share (+0.5%) taking advantage from Telecom Italia (-0.4%). At the end there has been a reduction of market concentration. Wind 23,0% Vodafone 29,6% - 7 - 5. Mobile lines: MNO 95,00 3Q2014 90,00 H3G Telecom 11,1% Italia 85,00 34,5% 92,56 92,72 92,54 92,68 92,34 Wind 91,66 90,60 89,28 24,8% 87,97 Lines [mln] Lines 80,00 75,00 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Vodafone 29,6% From the beginning of the year the customer base has declined more than 3.7 million. YoY the “only voice” sim decreased about 11.1 million (-16.3 million with respect to September 2012). 3Q2013 In the same time, the number of prepaid lines decreased by 3.8 millions, but, although to a lesser extent, also the number of postpaid lines decreased (-600 thousands). YoY, voice traffic (more than 118 billion minutes) increased by 5.8%. Telecom H3G Italia In the same time the SMS traffic continues to decline (with 36 billion SMS sent, the reduction 10,4% 34,2% is about 41% on an yearly basis). Wind 24,3% Vodafone 31,2% Source: Agcom evaluation on data provided by operators - 8 - 6. Mobile lines: by customer/contract type (MNO) Customer type Contract type Market share by customers – 3Q2014 (%) 80,85 79,97 75,21 73,54 74,59 69,76 Residential Business 80,00 80,00 60,00 60,00 Wind H3G 40,00 11,72 40,00 17,35 H3G (11,0) 12,37 18,80 12,1% 10,5% 4,9% 20,00 13,38 20,00 18,21 (5,7) 0,00 0,00 Wind (6,8) 28,1% 3Q12 3Q12 3Q13 3Q13 Lines [mln] Lines 3Q14 3Q14 TI Business lines Residential lines Postpaid lines Prepaid lines 29,8% Voda (29,6) 30,0% Voda TI Customer type (1) (31,7) 30,1% 54,5% Business customers (13.4 millions of SIM in September) increased on a yearly basis by (30,6) (57,0) about 1 million lines, while the residential segment (74.6 millions of SIM) experienced a decrease by about 5.4 millions.