Telecom Italia SpA ADR
TIIAY: PINX (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $5.80 | Plskd | Dzq |
Telecom Italia's Era as a Service Provider Begins This Summer; Maintaining EUR 0.25 Fair Value
Business Strategy and Outlook
Telecom Italia, or TIM, is the incumbent in the extremely competitive Italian telecommunications 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 own almost 30% of the mobile market, and players like TIM and Vodafone have seen their top lines decline substantially, pressured by customer losses and lower pricing. Average revenue per user is one of the lowest in Europe, and once market stability is broken, prices never recover.