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Growth drivers

08/30/2017 - 05:00 PM

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A summary of growth factors and actions aimed at achieving that, is provided below separating the markets where TIM is present. 

TIM continues its transformation and transition from Traditional Telco to Digital Telco, enabler of the country's digital life: a business model based on the development of innovative infrastructure and an excellent quality of customer service, increasingly aimed at disseminating premium services and digital content.
On February 6, 2017, TIM presented its 2017–2019 three-year strategic plan, named “A Transforming Company”. The Plan aims to significantly transform the Company and establish TIM as a market leader in terms of quality in fixed and mobile services through an approach based on content, convergence, ICT services, innovation and customer proximity. The Plan includes the following strategic priorities over the next three years.

Domestic Market

The main strategic priorities in the Domestic Market are:

  • Excellent network infrastructure, the roll out of which will be further accelerated over the Plan period. By the end of 2019, TIM’s business plan aims to reach over 99% of the population with the LTE mobile network (4G) and 95% of the population (household passed) with optic fiber.
  • A commercial approach focused on convergent offers and content, also thanks to the launch of national and international co-productions through TIMVision. Such commercial approach is expected to strengthen the business model, further exploiting best infrastructure and excellent customer services with an increased focus on the dissemination of premium digital services and content, including on an exclusive basis.
  • In the Domestic Mobile segment, in a context characterized by data consumption that is expected to continue to grow, TIM will focus on speeding up the penetration of mobile ultrabroadband, strengthened by the extensive reach of its 4G network and the dissemination of quality content.
  • In the Fixed Domestic segment, TIM plans to accelerate the spread and adoption of optic fiber. The commercial strategy is expected to play a key role, aimed at retaining current customers through, for example, the supply of technologically evolved home devices connected to the domestic network—Internet of Things—which can be paid for directly in the bill.
  • Relaunch of the main subsidiaries of the Group: synergies with INWIT will be targeted for maximization; Olivetti is expected to be able to leverage the value of its brand to offer products with a cutting-edge design and ICT services; Telecom Italia Sparkle is expected to continue its growth phase by identifying synergies with the Business department of TIM for the management of international customers and through other growth options.

Brazil

In Brazil the Plan envisages continuing the relaunch of TIM Brasil, repositioning, if any, the company through leveraging the quality of the offer and of the networks and through convergence, to compete successfully in the post-paid segment at the same time returning to solid profitability.

In particular, a further boost will be given to the creation of the UBB mobile infrastructure—it is expected that by the end of the Plan 95% of the population will have access to 4G with coverage in approximately 3,600 cities—and to the development of convergent offers also thanks to agreements with the main producers of premium content.

 

Source: 2016 Form 20F

For further details and disclaimer, read the document 2016 Form 20F.