Information and communications technology to Italy

(Last updated: 12 Jul 2007)

Trends and opportunities

The market

Internet

Internet and the network still have room for improvement due to high growth rate of Internet Access Devices (IADs), eg. desktop, notebook, thin client, set-top-box, gaming console, which pose market opportunities for services value added. Active Internet users in Italy (at least one connection per week) is 13.7 million.

E-commerce

B2C market size is A$10.5 million while B2B market value is A$82.5 million. Both segments are still at an early stage of growth.

Telecommunications

The sector is going through structural changes fuelled by government incentives to TLC operators to widespread Internet technology among all population. Currently 75 per cent of country is connected to Internet via ADSLs line. Mobile communication traffic reached a turnover of  approximately A$36 million due to SMS, MMS, MP3 downloads, and video phone calls.

The coming of WiFi, RF-ID and recently EDGE-UMTS communication services will lead either to innovative business models and consumer products.

Broadband

Broadband is considered to have big potentials of growth in Italy, both in the consumer and business sectors, besides that in the e-government one. Due to heavy presence of RTG (86.2 per cent of population) and ISDN lines (11.1 per cent of population) among private consumers, broadband services are delivered via DSL signal compression technology. Private and public companies exchanging big amounts of data in long distance national network mostly use optic-fibre linked to ATM Internet working infrastructure for data e-voice communication.

Implementation of broadband technology to allow small and medium firms, local government offices, and citizens to access Internet at fast speed and benefit of Internet business southern Italy A$1.11 billion will be allocated to build broadband infrastructure to connect on Internet remote areas. A task force between the Italian Ministry of Innovation and Technologies, Sviluppo Italia, Ministry of Treasury, has been set up. Its aim is to monitor the realisation of the facilities required and the possible government interventions to fund rising.

Mobile communication

Prepaid cards are most favourite contract type used by Italians compared to contracts with direct debit on bank accounts.

The SMS keeps growing due to heavy adoption of such protocol by businesses, however, it is important to point out the fast development of the Multimedia Message Service (MMS), MP3 downloads and the sales of the phone models supporting it.

During 2002 the mobile communication operators completed the conversion of the existing nets to the General Pocket Standard Radio Service (GPRS) standard, which now covers the entire Italian territory.

Software

All segment components application softwares, middleware and system software registered a decrease of demand, especially system software due to decreased budgets allocated by firms on high-end, mid-range, volume servers systems. Less marked has been the slowdown of the application software due to investments done for standard applications such as content management, data warehouse, and business intelligence.

Opportunities

Currently the best prospects for ICT in Italy can be noted in the e-government sector. The Italian Government has undergone many developments with the aim to digitalise the public administration. To this effect the government has drafted a strategy, currently under implementation, which has resulted in the following services being available:

• Ongoing national web-portal - Italia: development is in place in order to expand the current framework, contents and level of interaction among local governments and citizens.
• Tax and fiscal payments: Italy is one of the first European countries to have developed tax and fiscal payments directly online. For this reason the Italian Finance Ministry has recently been awarded with the 'e-government label'. These services are accessible on the following websites: Italian Finance Ministry and Istituto Nazionale della Previdenza Sociale
• Social Connectivity System - budget €30 million.
• Public administration social services access to citizen and professionals from home or ATM machines in public sites.
• Public access point centre at digital advanced services - budget €29.5 million. Project aims to widespread ICT knowledge to citizens and small and medium firms.
• VoIP for public administration office - budget €26 million.
• Specialised telemedicine services - budget €28.3 million.
• E-learning oncology sector - budget €26 million.
• General medicine professionals network - budget €16.1 million.
• Virtual school for public administration - budget €16.1 million.
• Internet @ school (broadband for school) - budget €25 million.
• Libraries @ school - budget €18 million.
• School @ Hospital - budget €14 million.
• Tourism and cultural network - budget €32.2 million.
• Local southern Italian public administration e-procurement platform - budget €150 million.
• Value added chain platform for food southern Italy industry - budget €26 million.
• Value added chain platform for textile southern Italy industry - budget €10.5 million.

Value added services for:

• Broadband technology
• Wireless fidelity (WiFi) technology
• UMTS Technology
• RF-ID Technology

Tariffs, regulations and customs

The way products are packaged, sold and or produced, will dictate the tariffs that apply. Italy is part of the harmonised trade system of the European Union (EU). However Austrade Milan recommends that Australian suppliers check out each situation individually. Twenty per cent VAT (Italy’s GST) must be added to the CIF value of products.

Industry standards

No specific standards are required. It is, however, suggested to verify each time before venturing into new business abroad.

The Telecommunication Code has been updated by the article 41, law 1/8/2002, n.166, in order to reach the harmonisation with the new European outline. The aim of the new Code is to unify the regulations about the different communication services alike, no matter the support technology utilised.

A detailed Frequency Allocation Scheme was set up to cover all services (mobile, fixed, audio and TV radio diffusion, radio amateurs, satellite and scientific). The publication of this scheme follows the recommendations of the European Telecommunications Conference.

The CE marking and telecommunications comply with EU requirement. All manufacturers of telecommunication products selling within the EU must display CE marking on their products and packaging. The EU itself has set out common essential safety requirements for products.

Marketing your products and services

Market entry

Italian users are used in buying imported IT products, but they are concerned about the distance between Italy and Australia, considering it a barrier to trade.

There is no one best way to approach the Italian IT sector. A joint venture may be appropriate for larger organisations, whereas an agent or distributor might be more suitable for small suppliers.

Strategic alliances, including joint ventures and partnerships established with suitable local firms, provide access to market sectors and local support. Partners may be systems integrators, consultants, and distribution companies.

Australian companies are encouraged to establish a presence in Italy. This can be important commercially, as it is seen as sign of commitment to the market concerned.

Italy can offer good prospects for Australian products and services. The following suggestions have to be taken into consideration:

• Technology partnerships are mostly required, since off-the-shelf solutions are seldom suitable, and close cooperation and customisation are mandatory.
• Italy demands top quality maintenance/after-sales services. Having a representative office in Europe can be helpful for offsetting distance problems when technical matters arise.
• Loan/lease services are common in larger enterprises.
• An Italian representative office is generally appreciated (and in some cases fundamental) for raising confidence levels and providing local support.
• For high volume consumer products, television commercials and newspaper ads are generally the most effective channels for marketing new products and services. Billboards and banners can also be effective. In order to promote specific brand names, sporting events should also be considered as they attract a wide audience (especially soccer, basketball, car racing and cycling).
• Exhibit in a major trade fair in Italy, in order to gain wide exposure in a short period of time. The SMAU fair may be a good window for Australian products/services on the Italian market.

In Italy, the Internet is essential for importers of IT products and services. Some rely only on the Internet for taking the initial steps in a new business venture. Milan’s international information and communications technology fair, SMAU offers a platform for IT producers and buyers.

Links and industry contacts

ICT–related resources

European IT Observatory - www.eito.com
Smau - www.smau.it
Infosecurity - www.infosecurity.it
SatExpo - www.satexpo.it

Assinform (Italian IT Companies Association) - www.assinform.it
Via Larga, 23
20122 Milan – Italy
Tel: +39 02 5830 4141
Fax: +39 02 5830 4457
Email: assinform@assinform.it 

Federcomin - www.federcomin.it
Via Barberini, 11
00187 Rome, Italy
Tel: +39 06 421 401
Fax: +39 06 4214 0444
Email: info@federcomin.it  

ASSINTEL - www.assintel.it
Corso Venezia, 47/49
20122 Milan, Italy
Tel: +39 02 7750 231/235
Fax: +39 02 7750 413/435
Email: assintel@assintel.it

Italian Association Internet Providers - www.aiip.it
Via Caldera, 21
20153 Milan, Italy
Tel: +39 347 419 2974
Fax: + 39 02 700 517 563
Email: info@aiip.it 

Italian Telecommunications Users Association - www.anuit.it/defaulte.htm
Viale Europa, 175
00144 Rome, Italy
Tel: +39 06 5958 5369
Fax: +39 06 5958 5370
Email: staff.anuit@anuit.it

Government, business and trade resources for Italy

Italian Telecommunications Ministry - www.comunicazioni.it/english/index.htm
Italian Ministry of Industry - www.minindustria.it
Italian Ministry of Innovation & Technologies - www.mininnovazione.it
Italian Ministry of Education - www.istruzione.it

Media

Il Sole 24 Ore - www.ilsole24ore.com
La Repubblica - www.repubblica.it
Corriere della Sera - www.corriere.it
SMAU online newsletter - www.smau.it
Istituto di Cibernetica, Cybernetic Institute - www.cib.na.cnr.it

Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

• Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
• Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
• Administers the Export Market Development Grants scheme.
• Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
• Provides advice to the Australian Government on its trade and investment development activities.
• Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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