5G CRITICAL COMMUNICATION USE CASES

5G will help us reaching out new customers Extreme Mobile Broadband (xmbb) Up to 1 Gbps BBand access in dense area +50Mbps everywhere BBand access everywhere Massive MTC (mmtc) Massive IoT Connection density: 200.000 /km2 Speed up to 500Km/h Broadcast like services High user mobility Cost/ spectrum/ energy efficiency High Availability Industrial Control, Interactive Game Very Low Latency Emergency & Safety Ultra High Drone/Vehicle Reliability communications Critical Communication Yet Unknown Use cases New verticals are essential to generate new revenues for Telcos Business expansion already occuring with LTE (NB_IoT, Public Safety, ) 5G should address those markets more effectively/easily and open new ones 2 All rights reserved

Critical Communication: towards a fully Digitalized Society Market valute world-wide @2020 300-1000 bln 250-800 bln 1000-3000 bln ehealth Remote Surgery Health monitoring Automotive Traffic Safety & Control Realtime control of vehicles Connected Industry Factory Automation Industrial Control Cloud Robotics > 3000 bln Transport & Logistics Drones delivery services 350-650 bln > 100 bln Energy Public Safety Multimedia Gaming Smart grid Disaster and emergency response Smart office Stadium-OpenAir Gathering Virtual Reality Augmented Reality Value Added Applications characterised by: very low end to end latencies (< 1 to 10 ms, measured at application level) high reliability, i.e. successfully delivery packets within a time window (99.999%) high availability (coverage) 3 All rights reserved

Connected Industry enabling Industry 4.0 Applying 5G technologies to production equipment (robotics), smart finished products (connected cars), and data tools and analytics across the value chain Closed loop control applications Cloud Robotics Controller periodically submits instructions to a set of sensor/actuator devices, Remote which surgery return a response within a cycle time (2-20ms) Drone Delivery Offload computeintensive tasks (e.g. image processing) and receive in return information/action instructions Performance Performance Control commands to the sensor/actuator Small size messages Latency < 1 10 ms Reliability > 99,999% Upload synchronized audio, video and data in real time. Get control commands / information Latency < 1 10 ms Reliability > 99,999% High uplink data rates 4 All rights reserved

Other verticals: E health, Automotive E health drivers: Demographics (ageing population, decentralised care) Automotive drivers: Safety (reduce accidents) & Efficiency (improve capacity of transport infrastructure, reduce fuel) Remote Healthcare Diagnosis and treatments, eg. remotely adjust the dose of a prescribed medication Autonomous Driving Cars Exchange intentions, make cooperative decisions e.g. for collision avoidance Performance Performance (V2I) Realtime video / Augmented Reality for consultation, diagnosis, monitoring, treatment (realtime command) Latency < 1 10 ms Critical Reliability Data rate: 20 40Mbps Coverage incl. rural areas Environment modelling (sharing views among traffic partecipants) Coordinate trajectories among vehicles (e.g. at traffic signal) Latency< 5 10ms Reliability 99.999 Interworking 5 All rights reserved

Critical Communication: technical challenges Reduce latency & increase reliability by moving application processing closer to the user (Edge Computing) Exploit cloud computing capabilities and IT service environment at the edge Real time radio network conditions and context information to optimize the service operation Slicing is Key to cater for wide variety of requirements Dynamic allocation of capabilities/capacity only where & when needed, on the same shared infrastructure Control and user plane separation for independent scaling Business driven slice creation & governance, optimized for specific service scenarios / customers (API exposure) Last but not least security is not an option CyberSecurity, Privacy, Liability of different stakeholders 6 All rights reserved

and business implications 5G will deal with unprecedented high diversity types of communications (Human & Machine) with different performance attributes TIM considers same priority for xmbb, massive IoT and Ultrareliable Low latency Communications use cases 5G superior capabities in latency/reliability will enable new business Shift from B2C to B2B model: providing Platforms, technologies and data to Verticals B2B applications will account for 70% of the value for IoT in 2020 (McKinsey) Open API offered to Business Partners Depending on the Vertical, Telco could still be Service Provider (retail) 5G will fuel new end to end digital service ecosystems Enable new industrial Internet applications like 4G did for consumer Internet E-Health Automotive Gaming Services Software platform Connectivity Industry 4.0 Hardware (module/device) Connectivity & Platform Telco Roles Service Provider 7 All rights reserved