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Iliad’s Rapid Growth in Italy: Challenging Traditional Telecom Giants

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Iliad’s mobile customer base in Italy has recently surpassed 10 million, a significant milestone achieved just days before the telecom operator’s fifth anniversary. Entering the Italian mobile market in 2017, Iliad has claimed a 12.2% market share as of the end of 2022, according to the Italian regulator Agcom’s figures. Traditional operators, such as Wind Tre and TIM, have experienced slight decreases in their market shares. At the same time, Vodafone lost half a percentage point, bringing its market share to 22.6%.

Iliad credits its success to “innovation, simplicity, and transparency,” focusing on the absence of hidden fees and offering guaranteed price plans. It also boasts a 99% customer satisfaction score, according to data collected by Doxa in March. The low prices offered by Iliad have affected the broader market, driving down the cost of mobile devices and services.

In the first quarter of 2022, Iliad reported a 12.6% year-on-year increase in revenues in Italy, amounting to €241 million. The consolidated EBITDAaL also grew by over 61%, reaching €64 million. During the same period, the company had 9.85 million mobile customers in Italy, along with 131,000 subscribers to its fiber broadband service, which was launched in early 2021. Iliad neither confirms nor denies the growing revenue per user in its Italian operations.

Despite being the smallest of the four major MNOs in Italy, Iliad has enjoyed significant success in the market. The company’s ability to maintain this momentum, especially in the face of increased convergence, has raised some questions. Iliad has discussed potential partnerships with Vodafone and collaborated with market leader Wind Tre to create a wholesale operator extending mobile coverage to hard-to-reach areas. The Italian market’s ongoing changes—stemming in part from Wind Tre and TIM‘s structural separation plans—are expected to impact all players in the near future. As the market landscape evolves, Iliad is unlikely to sit idle and risk being left behind.

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