State of the Telco Industry, Italy

The Italian Telecommunication Industry is under pressure, with decreasing margins and increased competition with new players in 2018 (Iliad) pushing for a price war . 6.5 Bln Euro in 5G licence investments are driving the delta EBIDTA-CAPEX below zero for the first time ever. Operators need to improve their core operations while contextually find new innovative applications to their technology platform.

In order to leverage the stellar 5G Licences Investment Operators will need to:
1. increase prices. It’s a hard to follow path, due to the push of the new low-cost competitors
2. increase efficiency and savings in the core operations, possibly including network assets sharing/ incorporation and layoffs
3. find new value propositions to be built on top the existent and new tech platforms. Agile, Machine Learning, Blockchain, Big Data and Data Analysis, IOT, e-Government & Smart Cities, is the name of the game here, but profound cultural and organizational changes are needed.

Quality of this effort will make the difference between winners and losers in the next 3 years