TIM Brasil Day in NY Nov 13, Chief Techonoly Officer Leonardo Capdeville

Transcription

1 TIM Brasil Day in NY Nov 13, 2017 Chief Techonoly Officer Leonardo Capdeville 1

2 Further Advancing on Infrastructure 4G Coverage Evolution (EoY > 2.600) 746 4G Sites 1 st in Latam and unique operator in Brazil (# of cities) 9, % 2,401 TIM 3Q16 4Q16 1Q17 2Q17 3Q17 17,785 P1 P2 P3 Leadership in 4G coverage 86% of urban pop 177 Cities with Vo 301 Cities with 4G 700MHz EoY > 90% EoY >1.000 cities 70% EoY >1.000 cities 51% 49% 3Q16 4Q16 1Q17 2Q17 3Q17 * * Until Aug/17 Network Data Usage (% of data traffic by technology) 4G 2G+3G Traffic generated by 4G Devices 75% 25% Best 4G Coverage leveraged by 1.8GHz refarming and Leadership in 700MHz Brazil (Ookla Speedtest; % of tests in 4G Network) 65% 79% TIM P2 P1 P3 São Paulo (Ookla Speedtest; % of tests in 4G Network) 79% 90% TIM P1 P2 P3 77% Rio de Janeiro (Ookla Speedtest; % of tests in 4G Network) 88% TIM P1 P2 P3 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 2

3 Benefits 4G + 700Mhz Network Effect i.e. Benefits of the 700Mhz deployments in Brasilia Customer Effect Opportunity 2018 Throughput (Mbps) 2x indoor Coverage MHz MHz 700 MHz 3,2x % Urban pop. 3G 4G 31% GDP 2018 About 50% indoor coverage About 60% indoor coverage About 99% indoor coverage Usage (GB) 59% Urban pop. 2,5x 69% GDP 1,6x Data Traffic in 24 days 63% Vol. Traf. Total (MB) Vol. Traf. 700 (MB) 3G Churn 4G Differential on Coverage and Quality with Vol. Traf (MB) Vol. Traf (MB) 1,6x 700 MHz + 3G 4G 3

4 TIM Brasil Pillars of TIM turnaround 3 4 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 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 Customer Experience Continue to focus on recurring Efficiency in Industrial Cash Cost (zero base approach, strategic sourcing, make vs buy) Disruptive Efficiencies from Digital Transformation 2 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 Use Big Data and CEx driven approach to drive Network Capex Offer Infrastructure Efficiency Digitalization 2 1 Accountability and Sense of Ownership as part of a deep cultural transformation Culture 1 Shift internal Culture from Excusability to Accountability, redesign Platforms and Processes from analogue to Digital to allow a full Digital Transformation. 4

5 How to apply Customer Experience concept to the infrastructure Customer Experience Spectrum Fiber Sites Big Data/Analytics 4 Culture/Knowledge 5 Enhanced and dynamic customer expectations demands a robust plan of network expansion driven by analytic insights, on top of a major cultural transformation 5

6 Carrier Aggregation Use spectrum opportunities to maximize TIM assets 1 Spectrum Refarming Plan (average Brazil) 700MHz ND ND 850MHz 900MHz 1800MHz 2100MHz* 2600MHz MHz 15 MHz 5 MHz 10 Mhz 10 Mhz 5 MHz 5 MHz 10 Mhz 5 MHz 5 MHz 5 MHz 15 MHz 10 Mhz 5 MHz 5 MHz 5 MHz 15 MHz 15 MHz 30 MHz 35 MHz 50 MHz 50 MHz * 10MHz Refarming for will take place in areas where TIM owns the 850MHz band, keeping the in this frequency. In the other areas it will be refarmed 5MHz for the, keeping the other 5MHz to the. Optimize Spectrum Performance Evolution (4,5G) % 75% 100% 100% New Spectrum 3.5GHz 20% 70% 100% 10% 75% 70% 100% 100% 100% NEXT STEP 40% 100% 100% 100% 5% 10% 20% 10% 20% In test with Anatel TDD for 3.5GHz frequency wide band 200MHz release 2x CC 3x CC 4x CC 64 QAM UL 256 QAM DL MIMO 4x2 MIMO 4x4 6

7 Fiber deployment to support an Ultra broadband Convergent Network 2 Incremental Plan Incremental Plan Boost fiber deployment to accelerate FTTH and FTTS increase in the new industrial plan * Considers urban area densification. **Optical line termination 7

8 Demand to increase site density 3 Brasil has a High density of inhabitants per site Bio Sites: opportunity to increase site density using Sustainable Bio Sites TRADITIONAL TOWER BIO SITE NEW YORK ~2.200 inhab/site CALIFORNIA ~1.772 inhab/site BRASIL MAIN CITIES inhab/site São Paulo Rio de Janeiro Curitiba Brasília Belo Horizonte City Friendly No visual impact 4,8 x Lower OPEX 12 x Faster deployment In 2018 more than 80% of new sites will be Bio Sites RJ: installed Bio Sites in 2017 SP: New Partnership SP City Hall +300 Bio Sites in

9 Advanced analytics tools (Big Data, Watson, SQM Huawei) to evolve CEX management < > NETWORK FAULT MANAGEMENT NETWORK PERFORMANCE MANAGEMENT SERVICE MANAGEMENT CUSTOMER MANAGEMENT Watson Machine Learning Big Data REACTIVE APPROACH AUTOMATION PREDICTIVE APPROACH CANNON SHOT SMART INVESTMENT SNIPER SHOT 9

10 Dynamic Customer Expectations and new Technologies driving a disruption in the current Telcos operating model 5 Paradigm Shift Culture Shift HARDWARE SILO THEORETICAL DRIVEN FIELD MAINTENANCE REACTIVE SOFTWARE SHARED / CROSS ANALYTICAL DRIVEN RELEASE PATCH SELF HEALING TALENT Developing talents to generate skilled workforce operating in an innovative social, mobile, collaborative environment CULTURE Building a foundation of shared conducts inspired by Customer Centricity, Trust and Openness, Borderless Collaboration, Agility, and Empowered, Self-Driven Employees and Accountability ORGANIZATION AGILITY Innovating the operating model to enhance Agile processes and position as a competitive, leading-edge digital Telco 10

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