Telecom Italia SpA
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
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| LOCK|&% | LOCK|Fw | LOCK|<vfYCt |
Telecom Italia's Financials Hold as Poste Italiane Prepares to Launch Offer
Business Strategy and Outlook
Telecom Italia is the incumbent telecom operator in the Italian market. Since the entrance of Iliad in the mobile market in 2018, the Italian mobile market has become irrational, with extreme discounts that do not allow operators to earn their cost of capital. Iliad and mobile virtual operators, or MVNOs, own almost 30% of the mobile market, bringing constant pressure to larger operators like TIM and Vodafone. The Italian mobile market offers one of the lowest average revenue per user in Europe, with monthly prices of around EUR 10, with some MVNOs offering monthly plans for EUR 5 or less.
