Autorità per le garanzie nelle comunicazioni Quarterly Telecommunications Observatory (*) - Updated to 30 December 2011 - (*) All the information contained in the following figures is based on Agcom s elaborations of data provided by 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 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) 4Q2011 24,00 20,00 21,68 21,48 21,06 5,57 5,73 5,85 5,94 6,10 6,22 6,27 6,26 6,38 Italia; 8,1 BT Italia; 0,4 Tiscali; 1,8 Others; 0,7 Lines mln 16,00 12,00 8,00 16,12 15,93 15,77 15,61 15,38 15,17 14,99 14,86 14,68 ; 11,7 ; 7,7 4,00 0,00 Telecom Italia fixed access lines OLO access lines 4Q2010 Telecom Italia; 69,7 Compared to the 4 th quarter of 2010, direct fixed access lines decreased by 400 thousand units (growth of alternative operators lines: +300 thousands, decrease of TI lines: 700 thousands). Accordingly, Telecom Italia market share (74.3% at end-2009) in 2011 dropped of further 2 p.p. vs 2010, to below 70%. Italia; 7,4 ; 7,4 BT Italia; 0,4 Others; 0,6 Tiscali; 1,9 and have grown respectively by 0.7% and 1.1%. ; 10,6 Compared with 3Q2011, has consolidated its position as the third largest fixed network operator (8.1% vs 7.7% market share). Telecom Italia; 71,6 (1) Figures are consistent with AGCOM s Annual Report 2011, table 2.15. Includes: Telecom Italia s access lines, full unbundling (voice and data), Dsl Naked, Fiber - 3 -
2. Fixed access lines (new entrants) 4Q2011 Lines mln 7,00 6,00 5,00 4,00 3,00 2,00 5,57 6,10 6,38 0,10 0,10 0,09 0,08 0,08 0,06 0,06 0,06 0,06 4,27 4,37 4,46 4,55 4,70 4,83 4,88 4,86 4,95 26,8% Tiscali 5,9% Others 2,2% 38,5% 1,00 0,00 0,94 1,00 1,03 1,04 1,04 1,05 1,05 1,06 1,09 0,25 0,27 0,27 0,28 0,28 0,28 0,29 0,27 0,28 25,3% BT Italia 1,3% Fiber Naked dsl Unbundling (voice, voice+data) Virtual 4Q2010 In Q4, the number of new entrants direct access lines started increasing again, showing a 100 thousand growth, after the 3 rd Q reduction. At EoY full unbundled access lines reached about 5 millions, starting to decline in the 3 rd quarter. is the first operator (in terms of direct access lines) with a 38.5% share, increasing by 1% on the share at the end of 2010. 26,0% Tiscali 6,7% Others 2,3% 37,4% The second and third operators are (increasing to 26.8%) and (decreasing to 25.3%). 26,2% BT Italia 1,5% - 4 -
3. Retail broadband access lines 4Q2011 Lines mln 14,00 13,00 12,00 11,00 10,00 9,00 13,43 13,06 12,09 0,30 0,30 0,31 0,29 0,30 0,29 0,29 0,30 0,29 11,80 12,05 12,37 12,56 12,77 12,96 13,01 13,04 13,13 Tiscali 3,8% 11,9% Italia 12,6% Others 2,6% 8,00 DSL Other technologies 16,0% Telecom Italia 53,2% 4Q2010 YoY broadband growth was +400 thousands reaching 13.4 million lines at the end of Q4 (*). TI s market share (53,2%) falls, if compared to previous year, by 1.7%, and gain cumulatively about 2 p.p. Avg. download speed increased. YoY lines with nominal speed equal to or greater than 2 Mbit/s increased from 80.8% to 86.5%. 11,7% Tiscali 4,2% Italia 11,9% Others 2,5% 14,8% Telecom Italia 54,9% (*) This is consistent with the reduction of 197.000 units in the number of access lines operated by in the third quarter of 2011 that was due to the settlement of a litigation - 5 -
4. Mobile subscribers customer base (excl. Mvno, see figure 8) 92,00 4Q2011 Lines mln 90,00 88,00 86,00 84,00 88,02 88,50 89,08 89,88 90,60 90,89 91,13 91,60 92,30 22,7% 3 Italia 10,0% Telecom Italia 34,9% 82,00 80,00 32,5% On an annual basis, the growth of overall SIMs slows down (1.7 in 2011 vs. 2.6 millions in 2010). 4Q2010 Almost all of the increase in the number of SIMs is due to the success of postpaid contracts. 45% of the growth in the customer base is due to business customers. TI and market shares grow up (both +0.7%), market share slows down by 1.3%. 22,0% 3 Italia 10,0% Telecom Italia 34,2% YoY, telephone traffic (more than 130 billion minutes) increased of almost 8%, SMSs sent (about 89 billion) increased by 3.7%. 33,8% - 6 -
5. Mobile subscribers by customer/contract type Customers type Contracts type Market share by customers 4Q2011 (%) Mln lines 80,0 60,0 40,0 20,0 0,0 10,1 78,0 79,7 80,6 10,9 11,7 80,0 60,0 40,0 20,0 0,0 12,8 75,2 76,3 76,4 14,3 15,9 25,1% "3" 10,4% Residential TI 31,6% 5,7% "3" 7,2% Business 4Q09 4Q10 4Q11 Business lines Residential lines 4Q09 4Q10 Postpaid lines 4Q11 Prepaid lines Vod 33,0% Vod 29,0% TI 58,1% Customer type Business customers (11.7 mlns in December) have increased during the year by almost 800 thousands, in line with 2010 results. The business segment share on the total customer base increased from 12 to 12.7%. leads the residential market (33%), followed by Telecom Italia and. Telecom Italia holds a strong position in the business segment (58,1%). Contract type 82.7% of total lines are prepaid, a slight decrease from the end of 2010 share (84.2%). In the last two years postpaid lines increased by 3 millions. This is mainly due to the widespread use of smartphones and tablets which are usually sold in bundle with postpaid offers. Telecom Italia and market shares are both slightly below 33% in the prepaid segment, while Telecom Italia exceeds 45% in the postpaid segment at EoY. 25,7% Market share by contracts 4Q2011 (%) Prepaid "3" 8,9% Vod 32,6% TI 32,7% 8,0% Vod 31,6% Postpaid "3" 15,0% TI 45,4% - 7 -
6. Mobile broadband Sim data traffic (*1000) Connect card (internet key) (*1000) 20.000 15.000 10.000 16.728 +13,6% 19.006 6.500 6.000 5.500 5.000 4.500 4.000 5.504 +12,2% 6.175 5.000 0 4Q10 4Q11 3.500 3.000 2.500 2.000 4Q10 4Q11 Data traffic from beginning year (terabyte) In 4Q 2011, SIMs with broadband data traffic exceeded 19 million (+13.6% compared to Q4 2010), internet keys reached about 6.2 millions (+12.2%). This gives rise to an increase of 2.3 million active data SIMs, out of which 600 thousands are used in conjunction with internet keys and 1.7 millions with smartphones (with an increasing weight of tablets). During 2011, data traffic has grown more than 53%, with an increase of data traffic per SIM by about 35%. 100.000 80.000 60.000 40.000 20.000 0 +53,6% 123.888 190.332 4Q10 4Q11-8 -
7. Mobile virtual operators (MVNO) 4Q2011 Lines * 000 4,00 3,50 3,00 2,50 2,00 1,50 2,40 2,77 3,13 3,42 3,54 3,78 3,94 4,08 4,10 Erg Petroli 6,2% Others Daily Telecom 9,2% 5,7% Carrefour 6,2% Coop Italia 10,0% Poste Mobile 49,5% 1,00 13,2% 4Q2010 The growth of MVNO subscribers continues (+0.6 millions in the last twelve months), leading to a total that exceeds 4.1 millions (around 4.3% of the total customer base). The MVNO customer base seems stabilized in the second half the year (+200 thousands). Poste Mobile market share is nearly 50% (+1.7 percentage points) due to the integration of mobile and postal services. of Daily Telecom 6,2% Carrefour 6,3% Erg Petroli 5,0% Others 8,8% Poste Mobile 47,7% YoY, voice traffic and SMS sent increased by about 43% and more than 80%. Coop Italia 11,9% 14,2% - 9 -
8. Mobile telephony: number portability Lines mln 40,0 35,0 30,0 25,0 20,0 15,0 23,2 25,0 26,0 27,2 28,8 30,9 32,8 34,7 37,1 10,0 5,0 0,0 4Q11 - Lines as donor (in the quarter) 24,7% 29,2% Mvno 5,3% H3G 10,4% Telecom Italia 30,4% 4Q11- Lines as recipient (in the quarter) In 4Q, the number of ported mobile lines reached 37.1 million (cumulative). Mobile virtual operators were able to gain more than 1m net adds in the number of lines. On a quarterly basis, H3G balance donating-recipient" returns to be positive (from -31 thousand to +27 thousand ported lines). 25,0% Mvno 8,9% H3G 11,5% s net adds are constant, while TI s (from -138 to -181 thousands ported lines) and s decreased (from +57 to +9 thousands). 31,6% Telecom Italia 22,9% - 10 -