Telecom Italia Mobile: Making Profits in a Mature Market
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Code : BSM0015
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Region : Italy
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The Telecom Industry in Italy Italy was amongst the top five countries in the world in terms of mobile penetration. The tremendous popularity ofmobile phones in Italy stemmed from various reasons including outdated and expensive fixed line network, family cohesiveness, communication and style amongst the Italians... Making Profits in a Mature Market TIM greatly benefited from the Italians’ desire to acquire the latest inmobile technology. It chose not to subsidize its handsets in Italy wheremobile phones were viewed as a lifestyle product. Itmanaged to enhance its revenue and growth by offering new and exciting services to the enthusiastic Italianmobile customers. Innovation has been the key to TIM’s success in Italy... Future Outlook TIM could exploit several future growth opportunities including 3G, the FreeMove Alliance and the rapidly growing mobilemarket in Brazil.H3G launched its 3G services first, spending a substantial amount ofmoney on promoting the new services available with 3G.Although TIM launched its 3G service later, it was expected to be one of the biggest winners when 3Gservices becomemore popular in Italy because of its brand name and size. Limitedmodels of 3Genabled phones were available but as the number ofmodels increased and the prices of the 3G phones fell, increased demand for 3Gwas expected. The FreeMove alliance would help TIM to counter Vodafone's extensive presence in Europe. The alliance members would benefit fromeconomies of scale, improved quality of service and enhanced sales potential... |
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