Italy’s mobile market has undergone a wave of change, led by the four major operators in a transformation that has evolved over more than a decade. Over the last eleven years, one player has consistently directed the pace of the sector, while Vodafone, Tim, Wind Tre, and Iliad have faced market volatility. From the early days to today, the sector’s net income reached 25.1 billion euros in 2021, underscoring the scale of the industry even amid shifts in value among operators.”
Regulatory data from Agcom show a decade of price competition and note a 33.3 percent drop in prices overall. This price decline stands as the most pronounced among the main European markets. Yet consumers can still secure generous mobile tariffs, with offers exceeding 50 GB of data at roughly 10 euros. Between 2020 and 2021, mobile data traffic more than doubled while fixed data traffic grew by about 75 percent as demand expanded across both mobile and fixed networks.
Operating costs for Italian telcos rose as well, climbing about 3 percent in 2021 driven by higher raw material prices and energy costs. The human impact of industry shifts is substantial: around 18,000 people work directly in the sector and an additional 31,500 are employed indirectly. Those who remain are increasingly required to embrace new technologies and pursue further training to stay competitive in a fast-changing environment.
Investing in the country
Despite these challenges, operator investments in Italy remained robust, totaling around 7.2 billion euros in 2021. The focus has been on building high-capacity fixed networks and advancing 5G capabilities. In 2020, the sector reinvested about 27 percent of its profits into network modernization. European Commission data indicate that a large majority of households already have 5G access, reflecting strong progress in coverage and readiness for advanced services.
Coverage gains have been supported by Dynamic Spectrum Sharing technology, which enables 5G deployments by repurposing spectrum that was originally allocated for 4G. Without this approach, Italy would trail several European peers in 5G availability. Average mobile download speeds rose by around 9 percent in 2022, reaching roughly 26.9 Mbps, signaling steady performance improvements across the network landscape.
Energy consumption remains a notable consideration for the Italian telecommunications sector. In 2021 total energy use approached 4.3 terawatt-hours, according to research from the Energy & Strategy Observatory. European funding, notably through Next Generation EU programs, has supported digitalization efforts while aligning with climate action and social solidarity goals. The investment strategy emphasizes digital infrastructure, data-driven innovation, and the prudent deployment of artificial intelligence to bolster efficiency and resilience in the sector while contributing to broader societal objectives.