Price Competition, Rate Reductions Shrink Italian Telecoms Market Value By 3.4%

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Italy's electronic communications services regulator, Autorita per la Garanzie nelle Comunicazioni (AgCom), reports that revenues from the provision of telecommunications services shrank by 3.4% to EUR43.8bn in 2010. This builds on the 3.3% decline seen in the previous year and chimes with BMI's view that falling tariffs caused by increased price competition, as well as regulator-mandated reductions in traffic termination and interconnection rates are making it more difficult for Italy's smaller players to provide an effective challenge to the market leaders.