"Two important new trend reversals occurred in the third quarter; there was less demand for access to fixed-line by alternative operators, and there were overall fewer broadband lines overall," said Bernabe.
"These results meant that all operators are going to have to cut their labor force," he added. The warnings follow those by the Organisation for Economic Cooperation and Development, which said that the Italian economy is likely to contract next year.
In September, Telecom Italia made moves to extend revenue outside its domestic market by offering its expertise to carriers in emerging markets to help them look for growth opportunities. The global partnership programme includes Africa, the Middle East, Asia and South America.