s to compete with top named producers like IBM, COMPAQ, DELL, APPLE, and HP. At the end of 1997 it is estimated that 82 million PC's will be connected to the Internet. 20 % of Italians own a personal computer. Over 300 ISP’s in Italy offer Internet service via the PC. Telecom Italia and Infostrata, (Omnitel), are the two major competitors. The telecommunication industry is looking into using satellite and cable lines in the future to access the Internet. Italians are accessing the Internet mainly with Personal Computers through landline, dedicated phone lines, ISDN digital lines, and PSTN analog lines. The competition for personal computers is very competitive. The threat of new entrants is very low because of Italians strong brand loyalty.DIGITAL TELEVISIONDigital Television is available in Italy. Telepiu currently dominates it, which is a subsidiary of Canal+. Stream Digital Cable Service, a parent company of Telecom Italia, has been introduced into this industry through an alliance with RAI, the Italian public broadcaster. Strong market growth in digital television is expected due to the demand for premium sports and film programming from the Italian public. Deregulation of the broadcasting industry allows pay-television operators to control premium programming rights. RAI plans to expand its Italian network penetration from the present 2.5 % to 25%. There are fewer than 20 million television households in Italy with only 1.3 million of them connected to cable and satellite services. Italy has provided more free television than other country in Europe making consumers reluctant to pay for digital service. This divided market means greater risks for all participants. SATELLITE TELEVISIONSatellite television has recently been introduced to the Italians. As of November 1998, Telecom Italia and RAI have been working together with "Skyplex, " a multimedia satellite transmission system, to broadcast digital TV via s...
