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Can Iliad Repeat Its Disruptive Impact in Italy?

Report Summary:

Iliad’s mobile market entry in Italy is an aggressive opening shot that significantly undermines prevailing prices. The 30GB €6 plan is an enormous discount on market rates that will squeeze EBITDA margins in an already challenging market environment as the incumbents look to manage costs and protect their customer bases. As it begins its journey towards its 25% long term market share goal, Iliad will have a lasting impact on the service landscape in Italy. The best defense is an active offense and, while Iliad’s approach could kill off the nascent zero-rating market, incumbents need to react fast with an increased focus on converged bundles and loyalty incentives, and an acceleration of their digital transformation strategies. They should also make tough choices about which customer segments they are willing to lose.

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