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Digitalisation of the country

05/25/2016 - 04:00 PM

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The TIM investment plan aims to guaranteeing ultrabroadband cover to the greatest possible number of Italians. We have measured this project in terms of value generated and here are the results.

The project for the digitalisation of the country is an integral part of our commitment to create shared value for both the business and society and contributes towards ensuring economic growth through the impact on the country's GDP and the creation of jobs.

TIM

NOTES

The method used to calculate the contribution made by TIM  thanks to investments in BB and UBB (fixed and mobile) envisages the following:

1.  The impacts on the GDP deriving from the construction of the broadband and ultrabroadband infrastructure (fixed and mobile) of 1,236 mln €, are calculated using a parameter deriving from the study Impact of broadband on the economy, International Telecommunication Union, 2012 - National Broadband Plan in Germany. This multiplier (0.93) expresses the euros of GDP generated per euro invested in building the super-fast broadband network and includes direct (generated by the companies that build the network), indirect (generated by supplier companies) and induced impacts (generated by greater consumption deriving from direct and indirect impacts). This economic impact has not been considered in the total 2015 Shared Value as it was already included in the Employment Impact project.

2.   The impacts on the GDP deriving from the deployment of the broadband and ultrabroadband network (fixed and mobile) of 662 mln €, are calculated using a parameter deriving from the study Impact of broadband on the economy, International Telecommunication Union, 2012. The multiplier used (0.025%) comes from the Katz et al. study (2010) and refers to countries with a high penetration (over 31% of the population served by broadband connections). This multiplier estimates the effects of implementing the network (e.g. on increasing productivity) and indicates the potential growth in GDP per percentage point of increased penetration. The increase in ultrabroadband penetration considered is 1.6. The GDP considered is 1,616,047.6 mln €. (2014 data)

3.   The workers employed for the construction of the broadband and  ultrabroadband network (fixed and mobile) number 20,000, calculated considering the total investments made in fixed and mobile BB and UBB, by the multiplier factor deriving from the study Impact of broadband on the economy, International Telecommunication Union, 2012 - National Broadband Plan in Germany. This multiplier expresses the jobs created (15.1) per mln € invested in building the ultrabroadband network and includes direct (generated by the companies that build the network), indirect (generated by supplier companies) and induced impacts (generated by greater consumption deriving from direct and indirect impacts).

4.   The potential impact on employment deriving from the deployment of the broadband and ultrabroadband network (fixed and mobile) numbering 2,200, are calculated using the penetration rate from the study Impact of broadband on the economy, International Telecommunication Union, 2012. The multiplier used (0.0061%) comes from the Katz et al. study (2010) and refers to countries with a high penetration (over 31% of the population served by broadband connections). This multiplier estimates the effects of implementing the network (e.g. on increasing productivity) and indicates the potential growth of employment per percentage point of increased penetration. The increase in ultrabroadband penetration considered is 1.6. Employees considered in Italy number 22,470,000 (figure as at 2014).

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Already in 2009, the Lisbon strategy assigned broadband connectivity a central role in terms of the use and development of ICT in the economy and society, and the Commission has always actively supported generalised access to broadband services for all European citizens. The growing need for the global dissemination of information has led telecommunications operators to direct investments towards infrastructural development. As confirmation of this trend, we have the definition of the objectives of the Digital Agenda for Europe (DAE), which acknowledges the role played by ICT in achieving the objectives of intelligent, sustainable, inclusive growth. In line with the objectives established by the Digital Agenda in 2020, and the Government’s ultrabroadband strategy, TIM’s investment plan is strongly oriented towards ensuring cover of the fixed and mobile ultrabroadband access to the greatest possible number of Italians, reducing the gap that still separates them from more developed European countries, providing ever faster connection speeds and making the most of technological evolution.

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High quality ultrabroadband access becomes, for TIM, even more of a distinctive asset, on which to hinge the plan strategy, both to consolidate the current position and to complete the medium/long-term transition from traditional Telco to Digital Telco & Platform Company, enabling the country’s digital life: a business model based on innovative infrastructure and an excellent customer service, increasingly aimed at disseminating premium services and digital content within a customisable platform, accessible anywhere and on any device. The Plan provides for the position in Multimedia Entertainment, which includes activities, among others, in the field of Video, Music, Gaming and Publishing, to be strengthened. Thanks to its ICT and Cloud services, TIM will also continue to work with Italian businesses in their digital transformation process, with a differentiated approach depending on customer base characteristics, aiming to achieve a distinctive positioning in the vertical markets deemed to be of greatest interest.

A basic aim of the new plan's development strategy is also gradually to cover an increasing number of areas with the FTTCab service and 100 cities and 51 municipalities with FTTH technology by 2018. The achievement of the Digital Agenda objectives and the increasing demand for connectivity and services that require large amounts of bandwidth on the move, are also supported by the deployment of TIM's LTE network. In addition to extending 4G cover, TIM will continue to invest in “Carrier Aggregation” (commercially 4G+) the first feature of LTE ADVANCED, enabling increasingly high speeds to be achieved.

Fixed, pervasive, high quality ultrabroadband access.

TIM

At the end of 2015, the fixed super-fast broadband service was already available in 772 municipalities, covering 42% of the country's households in total. As a result of the new investments, this will increase to 84% by the end of 2018.

The TIM investment plan does not only involve the municipalities offering a certain economic return, but also the territorial areas in greatest difficulty. The greater cover will also facilitate increasing penetration by ultrabroadband clients, thanks to the numerous strategic partnerships stipulated with some of the most important media players on the national market (SKY, MEDIASET, NETFLIX) for the PayTV service.

The new 2016-18 Plan also boosts the structural transformation of the Network. The innovative investments and those dedicated to decommissioning and network modernisation will act on the network architectures and the operating model, making the network more modern, more capable (in terms of ultrabroadband cover and manageable traffic intensity) and more efficient in the operative management (significant savings on energy, maintenance and delivery/assurance).

In the mobile area, the operational plans will allow commercial LTE coverage of the outdoor population to exceed 98% in 2018 (to date, TI covers 4,778 municipalities with LTE, with a total national outdoor coverage that exceeds 88%), supporting the growth of clients with positive effects on data traffic. Developments are also expected for the solution of the Three Carrier Aggregation, for which the first “live” implementations are already available in 6 cities (Rome, Genoa, Turin, Naples, Turin and Prato), with speeds of up to 300 Mbps and native voice on LTE network thanks to the implementation of “VoLTE” (Voice Over LTE).

The expected increase in customer numbers will be supported by bundle offers (fixed/mobile, voice/data/video) that will provide Internet access from a variety of devices (PC, TV, smartphone, tablet) while promoting the replacement of old terminals with next generation ones. On the mobile side, new solutions are also being developed that enrich the current 4G "user experience", increasing quality of service, progressively introducing new features for broadcasting and the transmission of video channels (e-MBMS) and developing heterogeneous (mobile + wifi) networks to manage the increased traffic and satisfy client’s needs “everywhere and anytime”.

The new 2016-18 plan boosts the structural transformation of the Network.

TIM