Telecom Italia Mobile: Making Profits in a Mature Market



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Code : BSM0015

Year :
2004

Industry : Telecommunications

Region : Italy

Teaching Note:Not Available

Structured Assignment :Not Available

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Introduction:Telecom Italia Mobile (TIM), established in 1995, was the largest mobile operator in Italy and one of the largest in Europe. TIM had over 26 million subscribers in Italy with an additional 22 million through its international operations in Greece, Turkey and SouthAmerica. In Italy,where themobile phonemarketwas amaturemarketwith penetration level of over 90%, TIM relied on constant innovation and aggressive marketing to attain revenue growth. In addition to voice transmissions, TIMprovided its customerswith various other services such asmessaging, games, access to the Internet and real-time TV over mobile phones.

TIM planned to enhance its service offering, in terms of number of services and quality of service, as well as increase the number ofmarkets in which it operated in order to sustain growth. TIM together with T-Mobile of Germany, Telefónica Móviles of Spain and Orange, which had a presence in UK and France, formed the FreeMove marketing alliance to enhance the quality of service across national boundaries and to compete effectively against Vodafone that had 130million subscribers.

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