Telcos in Italy are going to be squeezed by increased competition in coming years.

A newly completed joint-venture between Wind Italy and 3 Italia (Wind Tre) and the entry of Iliad as fourth mobile network operator are expected to put pressure on Italy’s first- and second-placed operators, TIM and Vodafone, over the next five years.

At the end of 2016, the top three operators (TIM Italy, Vodafone Italy and Wind Tre), contributed towards 84.3 percent of the estimated total telecom service revenue.

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Iliad is expected to enter the market in 2017 and will likely use similar aggressive pricing strategies to those it used previously in France.

Current operators will fight back with continued focus on fixed line and mobile convergence, using a combination of 4G and fiber.

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By GlobalData