Tim day cto presentation - lc

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TIM Brasil Day in NY Nov 13, 2017

Chief Techonoly OfficerLeonardo Capdeville

2TIM DAY in NY 2017CTO – Leonardo Capdeville

Further Advancing on Infrastructure

301Cities with 4G

700MHz

177Cities with

VoLTE

Leadership in4G coverage

86% of urban pop

Best 4G Coverage leveraged by 1.8GHz refarming and Leadership in LTE 700MHz

Brazil(Ookla Speedtest; % of tests in 4G Network)

São Paulo(Ookla Speedtest; % of tests in 4G Network)

Rio de Janeiro(Ookla Speedtest; % of tests in 4G Network)

65%

79%

3Q16 4Q16 1Q17 2Q17 3Q17

77%88%

3Q16 4Q16 1Q17 2Q17 3Q17

79%

90%

3Q16 4Q16 1Q17 2Q17 3Q17

P2P1

P3

TIM

17,7859,858 +80%4G

Sites

746

2,401

3Q16 4Q16 1Q17 2Q17 3Q17

1st in Latam and unique operator in

Brazil

4G Coverage Evolution (EoY > 2.600)

(# of cities)

EoY > 90%

EoY >1.000 cities

P1P2

P3

TIM

P2P1

P3

TIM

P2

P1

P3

TIM

51%

70%

49%

3Q16 4Q16 1Q17 2Q17 3Q17

4G 2G+3G

Network Data Usage(% of data traffic by technology)

25%

75%

Traffic generated by 4G Devices

* Until Aug/17

*

EoY >1.000 cities


Benefits 4G + LTE 700Mhz

Network Effect

i.e. Benefits of the 700Mhz deployments in Brasilia

2.600 MHz 1.800 MHz 700 MHz

About 50% indoor

coverage

About 60% indoor

coverage

About 99% indoor

coverage

2x indoor Coverage

Customer Effect Opportunity 2018

41% Urban pop.

31% GDP

59% Urban pop.

69% GDP

2018

2017

700 MHz +

Differential on Coverage

and Quality with

3G 4G

Churn

1,6x

3G 4G

Usage (GB)

2,5x

Throughput (Mbps)

3G 4G

3,2x

63%1,6x Data Traffic in 24 days

Vol. Traf. Total (MB)

Vol. Traf. 700 (MB)

Vol. Traf. 1800 (MB)

Vol. Traf. 2600 (MB)


TIM Brasil – Pillars of TIM turnaround

Shift internal Culture from “Excusability” to Accountability, redesign Platforms and Processes from analogue to Digital to allow a full Digital Transformation.

Customer Experience

Offer Infrastructure Efficiency

Digitalization

Culture

Mobile Offer based on Customer Segmentation(Advanced Analytics and Big Data) to maximize ARPU

Attack Residential UBB market through FTTH/WTTX

Push on 3/4P Convergent Offer in selected regions taking benefit of our Zero Legacy approach

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Accelerate 4G expansion in 700MHz to reaffirm UBB Leadership in coverage and quality

Push Fiber rollout to sustain E2E CEx in Data and support Residential UBB coverage expansion

Use Big Data and CEx driven approach to drive Network Capex

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Continue to focus on recurring Efficiency inIndustrial Cash Cost (zero base approach, strategic sourcing, make vs buy)

Disruptive Efficiencies from Digital Transformation

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Accelerate Digital Capabilities deployment in both commercial and administrative IT systems

Increase Digitalization of Customers’ Interactions along the entire lifecycle to improve CEx and allow disruptive efficiencies

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Accountability and “Sense of Ownership” as part of a deep cultural transformation

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How to apply Customer Experience concept to the infrastructure

Enhanced and dynamic customer expectations demands a robust plan of network expansion driven by analytic insights, on top of a major cultural transformation

Customer Experience

Spectrum Fiber Sites

Big Data/Analytics

Culture/Knowledge

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Use spectrum opportunities to maximize TIM assets1

Spectrum Refarming Plan (average Brazil)

* 10MHz Refarming for LTE will take place in areas where TIM owns the 850MHz band,keeping the UMTS in this frequency. In the other areas it will be refarmed 5MHz for theLTE, keeping the other 5MHz to the UMTS.

Optimize Spectrum Performance

LTE Evolution (4,5G)2015 2016 2017 2018 2019 2020

Ca

rrie

rA

gg

reg

ati

on

2017 2018 2019 2020

25% 75% 100% 100%

20% 70% 100%

10% 75%

70% 100% 100% 100%

40% 100% 100% 100%

5% 10% 20%

10% 20%

2x CC

3x CC

4x CC

64 QAM UL

256 QAM DL

MIMO 4x2

MIMO 4x4

LTE

2600MHz

2100MHz*

1800MHz

900MHz

850MHz

700MHz ND NDLTE

10 MhzLTE

10 MhzLTE

10 MhzLTE

10 Mhz

UMTS10 MHz

UMTS10 MHz

UMTS10 MHz

UMTS10 MHz

GSM 2,5 MHz

GSM 2,5 MHz

GSM 2,5 MHz

GSM 2,5 MHz

GSM 2,5 MHz

GSM 2,5 MHz

GSM 20 MHz

GSM 15 MHz

GSM 10 MHz

UMTS10 MHz

UMTS10 MHz

UMTS10 MHz

LTE10 MHz

LTE10 MHz

LTE10 MHz

LTE10 MHz

LTE10 MHz

LTE10 MHz

LTE10 MHz

LTE10 MHz

10 MHz 15 MHz 30 MHz 35 MHz 50 MHz 50 MHz

UMTS 5 MHz

LTE 5 MHz

UMTS 5 MHz

LTE 5 MHz

LTE 5 MHz

LTE 10 MHz

GSM 10 MHz

LTE 10 MHz

LTE15 MHz

GSM5 MHz

LTE15 MHz

GSM5 MHz

UMTS 5 MHz

LTE 5 MHz

In test with Anatel LTE TDD for 3.5GHz frequency wide band 200MHz release

New Spectrum

3.5GHz

NEXT STEP


Fiber deployment to support an Ultra broadband Convergent Network

* Considers urban area densification. **Optical line termination

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Incremental Plan

Boost fiber deployment to accelerate FTTH and

FTTS increase in the new industrial plan

Incremental Plan


Demand to increase site density3

CALIFORNIA ~1.772

NEW YORK ~2.200

BRASIL MAIN CITIES

São Paulo 8.479

Rio de Janeiro 4.271

Curitiba 4.987

Brasília 5.208

Belo Horizonte 6.219

Brasil has a High density of inhabitants per site Bio Sites: opportunity to increase site density using Sustainable Bio Sites

Lower OPEX

4,8 xFaster deployment

12 x

City FriendlyNo visual impact

In 2018 more than 80% of

new sites will be Bio Sites

RJ: + 350 installed Bio Sites in 2017

SP: New Partnership SP City Hall +300 Bio Sites in 2018

inhab/site

inhab/site

inhab/site

TRADITIONAL TOWER BIO SITE


Advanced analytics tools (Big Data, Watson, SQM Huawei) to evolve CEX management

NETWORK FAULT MANAGEMENT

NETWORK PERFORMANCE MANAGEMENT

SERVICE MANAGEMENT

CUSTOMER MANAGEMENT

< 2015

2016

2017

> 2018

Watson

Machine Learning

Big Data

SMART INVESTMENT

AUTOMATION

CANNONSHOT

SNIPERSHOT

REACTIVEAPPROACH

PREDICTIVEAPPROACH

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Dynamic Customer Expectations and new Technologies driving a disruption in the current Telcos operating model

Paradigm Shift

HARDWARE SOFTWARE

SILO SHARED / CROSS

THEORETICAL DRIVEN ANALYTICAL DRIVEN

REACTIVE SELF HEALING

FIELD MAINTENANCE RELEASE PATCH

TALENTDeveloping talents to generate skilled workforce operating in an innovative social, mobile, collaborative environment

CULTUREBuilding a foundation of shared conducts inspired by Customer Centricity, Trust and Openness, Borderless Collaboration, Agility, and Empowered, Self-Driven Employees and Accountability

ORGANIZATION AGILITYInnovating the operating model to enhance Agile processes and position as a competitive, leading-edge digital Telco

Culture Shift

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Tim day cto presentation - lc

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