Telecom Italia is a leading telecommunications company operating globally with over 141 million customers. In 2012, some of its key initiatives included launching fiber optic ultra broadband services in Italy at speeds of 30 Mbps, testing 4G mobile networks, and expanding its Latin American operations. In Brazil, TIM Brasil extended its 4G network and launched new broadband offerings, while in Argentina, Personal strengthened its mobile leadership position and launched number portability.
2. 2 Connected Life Connected Life 3
Contents
4
Telecom Italia
in brief
Find out more online:
connectedlife.telecomitalia.com
Sustainability in
Telecom Italia 18
Innovation in
Telecom Italia 14
Key facts
2012 8
Telecom Italia
around the world 6
New industry
-university
partnership,
and support
for start-ups 22
Telecom Italia
Foundation 20
Strategy 23
Discover augmented reality
Connected Life by Telecom Italia contains a wealth
of special interactive content. Download Telecom
Italia’s “L’Editoria+” app (on Android and iOS) to
access enhanced video and other content.
To access augmented content, all you have to do
is activate the app and, holding your mobile phone
20-30 cm away, scan the paper image you are
interested in using the icon of the mobile phone
with the eye.
Online: #iovivoconnesso
Communicate, Connect, Live.
Vision & Innovation
Responsibility
& Community
Culture
Commitment & Territory
Main commercial
launches in 2012 10
Focus on
Latin America 12
141.8
million customers
around the world
3. 4 Connected Life Connected Life 5
Telecom Italia in brief
The Telecom Italia Group operates in the entire range of advanced communications services:
fixed telecommunications, mobile and Internet telecommunications, research & development,
and office & system solutions
Data at 31 December 2012
141.8
million
customers around
the world
7,500 km submarine cable network in the Mediterranean region
85,000 km network in Europe and South America
5,700,000 kmfibre optic network in Italy
114,500,000 kmcopper cable network in Italy
of which
123.8
million are
mobile phone
customers
31cities in which work has
started on building next-
generation fibre optic
(NGAN) infrastructure
60%
of Italy’s population to
be covered by LTE (the
new 4G mobile network)
by the end of 2015 (15%
at the end
of 2012)
25
cities covered by
LTE and 9 tourist
areas
~ 35%
of the fixed network
population to be covered
by next-generation fibre optic
(NGAN) with FTTCab Fiber To
The Cabinet architecture
by 2015
98%
ADSL coverage
in Italy
(January 2013)
Customers
Industrial assets
Revenues:
29.5billion euros
(0.5% organic growth
compared with 2011)
EBITDA:
11.7billion euros
(2% decrease in organic
terms compared with 2011)
Adjusted Net
Financial Position: 28.3billion euros
(2.1 billion euros
down on 2011)
3%reduction
in CO2 emissions compared with 2011
83,141 employees
54,380 Italy
16,803
Argentina
and Paraguay
11,622 Brazil
336 rest of the world
52,493 men30,648 women
Financial data at 31 December 2012
+4.6% training hours per employee
compared with 2011 (total of 27.4 hours)
As proof of its commitment to sustainability,Telecom Italia is included
in the most prestigious global sustainability indexes,including the
Dow Jones Sustainability Indexes (DJSI) and the Financial Times
Stock Exchange for Good (FTSE4Good)
Environment and Social Employees
+19% investment
in the community and social arena compared
with 2011, totalling 36.4 million euros
(measured according to the LBG model)
3.1bn
inItaly
1.5bn
inBrazil
0.6bninArgentina
Capital expenditure:
5.2billion euros
4. 6 Connected Life Connected Life 7
Telecom Italia
around the world
Data at 31 December 2012
Main markets
Sparkle Group offices
Telecom Italia is Italy’s leading telecommunications and ICT, one of the largest operators
in Latin America and one of the major global operators
Brazil
Revenues: 7.5billion
euros (+1.8% vs 2011)
Mobile lines: 70.4 mln
(+9.8% vs 2011)
ARPU mobile (average
revenue per user - including
turnover from visitors):
19.1reais
(=7.6 euros per month)
Employees: 11,622
Argentina and Paraguay
Revenues: 3.8billion
euros (+17.5% vs 2011)
Mobile lines: 21.3 mln
(Argentina and Paraguay)
Fixed lines: 4.1 mln
(1.6 mln broadband accesses)
Telecom Personal ARPU: 57.7pesos
(=9.9 euro per month)
Employees: 16,803
Italy
(Domestic Business Unit)
Revenues: 17.9 billion
euros (-5.8% vs 2011)
Mobile lines: 32.1mln
Retail fixed lines: 14mln
(7 million retail broadband accesses)
ARPU Retail mobile
(average revenue per user):
15.5euros per month
ARPU Broadband: 18.5euros per month
Employees: 53,224
Telecom Italia Sparkle is a leading global
operator with a wide range of Voice and
Data over IP,mobile and corporate
services designed to meet the needs
of fixed and mobile carriers,ISP/ASP,
content providers,multimedia players
and corporate clients through a global
telecommunications network.
Key numbers:
• over 500,000 km global network
• Largest IP operator in the
Mediterranean region*
• 3rd largest IP operator in Europe*
• 9th largest IP operator in the world*
and for international voice traffic
*Source: Ranking Renesys
5. 8 Connected Life Connected Life 9
Key facts 2012
1 February
Distance monitoring service launched:
patients of Turin’s Molinette Hospital can
be monitored from home via mobile phone
13 June
TIM Brasil wins
tender for the
award of 4G
frequencies in
Brazil
14 September
“Changemakers” – 10 new ideas to
change the lives of 10 million people –
launched in partnership with Expo 2015
15 February
Testing of ultra broadband services
based on next-generation mobile
network LTE begins in Turin Marketing
of service with TIM starts in November
14 September
Telecom Italia and Fastweb join forces to
expedite development of ultra broadband
infrastructure (FTTCab)
4 April
Telecom Italia and Microsoft launch
“Prospettiva Impresa” to promote IT
solutions based on cloud computing in
small and medium-sized businesses
22 October
Testing of contactless
payment with NFC
technology starts in Milan
5 December
Fibre optic ultra broadband
services with a speed of 30
Mbps become available,
thanks to next-generation
network (FTTCab)
10 October
Business, environmental policy and
sustainable innovation.
Telecom Italia CEO Marco Patuano and
Italy’s Managing Director Corrado Clini
discuss in Twitter time
31 March
Personal is the first
operator to launch
number portability in
Argentina
20 December
TIM Brasil
celebrates its 70
millionth customer
in Rio de Janeiro
Foto:DomenicoGiampà
Find out more online:
connectedlife.telecomitalia.com
6. 10 Connected Life Connected Life 11
5 December
Launch of fibre
optic ultra Internet
enabling home
browsing at a speed
of 30 Mbps courtesy
of the next-generation
network based on
FTTCab architecture
Main commercial
launches in 2012
Nuvola It Hyperway è la nuova offerta Telecom Italia
che permette di integrare i vantaggi della connettività
Hyperway con i servizi IT della Nuvola Italiana.
I clienti che attivano Nuvola It Hyperway riceveranno delle Gocce di Nuvola, che permettono di
avere accesso ai servizi della Nuvola Italiana più adatti alle proprie esigenze a condizioni vantaggiose.
Un’offerta integrata unica nel suo genere che permette di creare soluzioni IT complete e flessibili,
per rendere la vostra impresa più innovativa e competitiva.
La Nuvola Italiana di Telecom Italia. L’unico cloud con la rete dentro.
Con NUVOLA IT HYPERWAY
i servizi della Nuvola Italiana
sono già nelle tue mani.
nuvolaitaliana.it
cloudpeople.it
Seguici su:
Oli you.
Personalizzabile al 100%. Il tablet con la firma grafometrica.
I tablet perfetti per te e per la tua azienda.
Olivetti rivoluziona il tuo mondo e il tuo business con due
nuovi gioielli della tecnologia. Olipad Graphos, abilitato alla
compilazione dei documenti che richiedono una firma autografa
e Olipad 3, il tablet che può essere personalizzato a seconda
delle esigenze più specifiche. Solo chi è da sempre vicino alle
aziende poteva pensarci. Oli you, Olivetti.
Scoprili su www.olipad.it
7 November
Marketing starts for ultra Internet
services based on HSPA+ technology
at 42 Mbps on the new 4G-LTE network
10 December
Launch in Argentina
of the new ultra
broadband portfolio
of solutions with
speeds of up to
50 Mbps based on
VDSL and GPON
(FTTH) technology,
for high-value fixed
broadband
customers
13 January
Communications
campaign gets under
way for the new
version of Super
internet: the option
that meets the
increasing demand
for faster broadband
speeds for down
loads and – more
importantly – uploads.
23 May
Olivetti launches
two new tablets with
innovative technology
7 November
Partnership between Telecom Italia and
Sony Computer Entertainment Italia to
test the Internet Play ADSL solution and
thus improve competitiveness and respon-
siveness in multiplayer network games
12 March
Telecom Italia launches
Nuvola It Hyperway, the
first offer that combines
connectivity and cloud
computing services
5 July
Launch of Nube Argentina, the
suite of cloud solutions offering
Argentine businesses data
centre, digital PA, virtualisation,
security, communication and
advanced collaboration services
10 October
Telecom Italia at SMAU 2012 speeds up
“IT IS” (Information Technology Impresa
Semplice) programme, the specialist IT
sales channel for small and medium-sized
businesses
Telecom Italia’s on-demand
TV channel for watching films,TV series and
videos on TV,smart TV and mobile devices
Telecom Italia’s digital store,
one of the best-stocked Italian stores with
over 40,000 titles
service for Telecom Italia
and TIM customers to listen to unlimited
music online,with a catalogue of one million
Italian and international songs
Find out more online:
connectedlife.telecomitalia.com
20 July
Launch of innovative fixed broadband
offer – Live TIM – with speeds of over
35 Mbps, which, in only six months on
the market, has achieved a total of
10,000 installed customers in São
Paolo and Rio de Janeiro
7. 12 Connected Life Connected Life 13
In 2012 TIM Brasil, the second-largest mobile operator in
Brazil,continued its strategy of innovation through technological
development and the coverage of increasingly large areas of the
country.
At the end of October 2011, it acquired control of two AES
Atimus Group companies, now renamed TIM Fiber RJ and TIM
Fiber SP, which will operate in the provision of residential broad
band services. The company increased its industrial investment
by 210 million euros in 2012 to acquire usage rights for fre-
quency bands for fourth-generation (4G) mobile telephony (140
million euros) and to develop the quality of the network infra-
structure.
In June 2012, TIM invested around 400 million Brazilian reais
to acquire seven blocks in the tender for the 2.5 GHz frequency
band and will develop 4G digital infrastructure, starting with the
cities where the next international sporting events will be held.
In so doing it will comply with all the obligations of the licence.
With an eye to efficient investment in mobile broadband, TIM
also concluded an agreement with Oi to share networks in accor-
dance with the most advanced global standards (RAN Sharing).
In October 2012, TIM launched an institutional campaign cal-
led “Trem Azul” (Blue Train), in which a train symbolically repre-
sented the company’s ongoing commitment to promoting com-
munication and access to the Internet among its customers.
As leading operator in Brazil, TIM further demonstrated its
commitment to this campaign by building the “Portas Abertas”
platform in October 2012. The company’s customers can follow
the development of the network, by connecting to the website:
qualidade.tim.com.br where they can view a map of TIM’s cove-
rage and the related development plans.
This initiative, which affirms TIM’s commitment to continuou-
sly improving the quality of its services and the transparency of
its communications to customers, comes alongside the recent
revamp of its website, which is now even more dynamic and
interactive. TIM Participações is listed on the São Paulo stock
exchange and has American Depositary Receipts (ADRs) on the
New York stock exchange (NYSE). TIM’s focus on sustainable
development, environmental balance, ethical responsibility and
corporate governance has led to the company’s inclusion in the
Corporate Sustainability Index of the São Paolo stock exchange
for the fifth year running
Amazonas sem Fronteiras
TIM’s investment of over BRL 200 million to lay 1,800 km of fibre
optic cables in north Brazil (Amazonas, Pará and Amapá)
reaffirms the company’s commitment to providing high-quality
services in even the most remote and inaccessible areas of the
country.
Once the difficulties of building this type of infrastructure in
such a problematic region have been overcome, it is expected
that the complete network will be laid by June 2013, providing
extensive coverage to these remote regions of Brazil.
TIM also announced in October 2012 that it would share this
and other infrastructure with the public operator, Telebras, with
the aim of expanding the National Broadband Program (PNBL).
Commercial launches
March 2012 saw the launch of Liberty Passport, a service
enabling customers with international roaming to have unlimi-
ted daily access to voice and data.
In the pay-as-you-go segment, there have been further deve-
lopments in Tim Beta, a service offering a daily tariff, mainly to
young people, that includes voice, SMS and data for enhanced
use of social networks.
The Telecom Argentina Group is one of the largest telecoms
operators in the country and provides fixed and mobile tele-
phony (by Personal), Internet and transmission services. It also
operates in Paraguay in the mobile sector. The company is listed
on the Buenos Aires stock exchange.
Investment in 2012, which was stable on the previous year,
was directed towards three areas: the expansion and upgrade of
broadband services in order to improve transmission capacity
and increase access speeds offered to customers; the traditional
fixed segment to meet demand; and backhauling to support the
development of mobile access. In addition, Telecom Personal
invested mainly in increasing capacity and expanding the 3G
network to support the growth of mobile Internet. In the last quar-
ter of the year, it implemented the LTE network in Paraguay, which
was launched commercially in early 2013.
Argentina
In fixed telephony, the residential segment showed moderate
growth in the voice business in 2012,based mainly on the incre-
ase in sales of monthly tariff plans and supplementary services.
The aim was to halt the decline in minutes of use (MOU) due to
the replacement effect of the increased penetration of mobile
telephony,pushing up average revenues per user (ARPU).
As regards mobile telephony, in March 2012 Personal was the
first operator to launch Number Portability with a widespread,
clear advertising campaign that - together with its flexible offer
tailored to the needs of customers – earned its position as the
market’s favourite operator.
In 2012, Personal developed an innovative model for its
business network based on close attention to the customer
experience. This included helping customers in their choices
and offering them the opportunity to personally try out new tech-
nology.
Personal pursued a strategy of introducing the most innovative
smartphones available on the market. It is leader in this segment
with a market share of 39% (source: GFK).
Personal has strengthened its leadership in the young people
segment with its strong connection to the music world. The eighth
edition of Personal Fest,the largest international music festival in
Argentina, attracted over 40,000 young people and received
500,000 visits on YouTube.
In 2012, Personal was recognised for the second year running
as a high-quality employer. This was achieved partly thanks to its
in-house corporate culture development programme aimed at
improving employees’ styles of working and quality of life, ack-
nowledging the involvement of its people as a strategic variable
that cannot be separated from business management.
Paraguay
Personal reached 2.3 million customers in Paraguay at the end
of 2012,a 7% rise on the previous year.
Revenues rose 21% on 2011, bolstered by its leading position
in the mobile Internet market. Following the introduction of Num-
ber Portability, Personal focused its efforts on informing the
market about the benefits of portability. The company also intro-
duced initiatives to foster the loyalty of high-value customers,
mainly through handset replacement campaigns.
In February 2013, Personal launched 4G technology in
Paraguay. It was the first and only operator in the country to
launch services on the LTE 4G network,and the second in Latin
America. This new technology enables the high-speed transfer
of data and thus provides a highly-interactive user experience
with fast response times.
Focus on Latin America
• 70.4 million mobile lines in Brazil (+9.8% vs 2011),
the fourth biggest mobile phone market in the world
• Second largest mobile operator in Brazil with a market share of
26.9% of mobile lines,and leader in the pay-as-you-go segment
• Revenues: 7,477 million euros (+1.8%),representing 25.3% of
Telecom Italia Group’s total revenues
• EBITDA: 1,996 million euros (+0.3%)
• Capital expenditure: 1,500 million euros (+16.3%)
• Employees: 11,622 (+10.3%)
Website: tim.com.br
Activities in Brazil Activities in Argentina and Paraguay
• 4.1 million fixed lines
• 1.6 million broadband accesses
• 19 million mobile lines in Argentina (+4% vs 2011)
• 2.3 million mobile lines in Paraguay (+7%)
• Largest Argentine mobile operator by revenues,second-largest
by market share (33.5%) and leader in the pay-as-you-go market
• Revenues: 3,784 million euros (+17.5% vs 2011),or 12.8% of
the Telecom Italia Group’s total revenues
• EBITDA: 1,121 million euros (+8.3%)
• Capital expenditure: 557 million euros (unchanged)
• Employees: 16,803 (+2.8%)
Website: telecom.com.ar
8. 14 Connected Life Connected Life 15
Mobile ultra broadband thanks to the next-generation 4G network
For Telecom Italia, innovative LTE (Long Term Evolution) technology, marketed as the
4G mobile network, represents the way in which its mobile radio access network will
evolve towards ultra broadband.
TIM customers can now enjoy performance and service levels that considerably
enhance their experience of Internet browsing,allowing them to use innovative multi
media content while on the move. The ability to make high-definition video-calls or
simultaneously download several films at high speeds and in excellent quality, has
now become a reality, starting with HD video streaming.
The LTE network considerably speeds up the rate of data transfer on the mobile network. Thanks to
4G technology, digital transmission speeds of 100 Mbps for downloads and 50 Mbps for uploads
can be achieved. This enables Telecom Italia to guarantee the provision of high-definition services
and multimedia content while on the move. In relative terms, the increase in speed is estimated to
be five to ten times higher than that offered by the HSPA network at 14.4 Mbps and more than dou-
ble that provided by HSPA technology at 42 Mbps.
The new technology, which uses “flat” architecture, based on the adoption of the IP protocol as
the multi-service transport standard, enables Telecom Italia to respond to the increasing demand
for mobile data and to offer users a vastly improved experience in connecting to the network.
Mobile ultra broadband services were launched in November 2012 by Telecom Italia, the first com-
pany to offer next-generation 4G mobile – a significant improvement on the 3G of the UMTS - in Italy.
LTE services are already available to both consumers and business customers in 30 Italian
municipalities, following its launch in the country’s main cities of Rome, Naples, Turin and Milan.
Right from the start, Telecom Italia’s mobile ultra broadband service supply surpassed all expecta-
tions. The 2012 population coverage target was exceeded by 9%, with a penetration rate of some
14.9%. The next targets are even higher. By the end of 2015, Telecom Italia aims to achieve 60%
coverage of the Italian population.
The development of LTE technology has given Telecom Italia an array of advantages, which will
enable it to enhance its range of services for customers and much more. In 2012, the company
undertook work to assess and optimise the energy efficiency of the mobile network,with the aim of
achieving energy savings targets of 10% in the infrastructure components (energy and air conditio-
ning) and 20% in the transmission equipment (radio access network) in five years.
RAI’s live TV coverage of the Turin Marathon is an example of the efficiency that can be achie-
ved in developing LTE services. Innovative architecture based on the 4G network was used to
capture live video signals from unmanned ground and aerial vehicles. The initiative enabled
production costs to be reduced and avoided the use of helicopters for radio links and filming, with
a positive environmental impact in terms of reduced energy consumption and hence fewer
atmospheric emissions.
5-10times faster
than the HSPA
network
60%population
coverage by
2015
15%population
coverage at
the end of
2012
50Mbps
upload
speed
100Mbps
maximum
download
speed
Fixed ultra broadband based on FTTCab
architecture
One of Telecom Italia’s points of excellence is the
next-generation fibre optic network NGAN (Next
Generation Access Network), based essentially on
FTTCab (Fiber To The Cabinet) architecture. This solu-
tion enables the company to bring ultra broadband ser-
vices with guaranteed transmission speeds of 30 Mbps
download and 3 Mbps upload into Italian homes.
Recent testing in this field has enabled the company to add spe-
eds of around 50 Mbps downstream and over 10 Mbps
upstream via FTTCab access. This constitutes a very user-frien-
dly solution for customers. The system is based on a fibre
modem to which customers can connect all the telephones in
the house and all internet-browsing devices such as PCs,tablets
and smartphones. VoIP (voice over IP) calls can also be made.
As a result of this strategic decision, Telecom Italia is now at the
forefront of the process to develop increasingly digital homes
and companies, which can benefit from an ever-broadening
range of services offering a wealth of real-time apps and high-de-
finition multimedia content.
FTTCab architecture allows several users to simultaneously
take part in a variety of online activities. It means that users
can, at the same time, play multiplayer games with high levels of
performance, watch streaming videos in full HD without pauses
or interruptions, and simply and easily share content such as
photos, videos and music. All this can be obtained using the
most up-to-date communications devices, including tablets,
smartphones,smart TVs and digital readers.
Thanks to next-generation fibre optic network NGAN,compa-
nies can now offer services with vastly higher speeds than those
provided by yesterday’s telecoms technology. But what is the
FTTCab solution on which NGAN is based? FTTCab represents
the next-generation network architecture that runs the fibre
cable to the “cabinet” located in the street at around 500
metres, on average, from people’s homes. Connecting the cabi-
net to customers is then practically a fait accompli and can
be done using traditional copper cables. There are numerous
benefits to this: the infrastructure can be built more quickly,
there is less inconvenience for residents and it costs less than
other high-tech solutions. It is the best technology available in
Europe today, as demonstrated by the fact that the majority of
European telecoms operators – in Germany, France, the UK and
Switzerland – are in the process of adopting it.
With this project Telecom Italia is providing a strong impetus
to the national programme to develop ultra broadband in Italy. In
March 2013, work had already begun on laying fibre optic cables
in 31 cities. This will rise to 125 by 2015, covering about eight
million homes, or 35% of the population. In this first phase, con-
nection speeds will reach up to 30 Mbps, in line with the foreca-
sts of the European Digital Agency,which has stated its objective
of making this connection capacity available to the entire popu-
lation by 2020.
Telecom Italia will not restrict its attention to private custo-
mers. It also aims to make a concrete contribution to speeding
up the growth and digitalisation of Italian businesses to relaunch
the Italian economy, in accordance with the Italian Digital
Agency’s programmes.
Innovation in
Telecom Italia
35%population
coverage by
2015
3Mbps
upstream
30Mbps
downstream
9. 16 Connected Life Connected Life 17
Near Field Communication (NFC) – the new technology
Using a mobile phone as a “virtual ticket” on public transport, making purchases in shops, paying taxi fares, fin-
ding out information on art or architecture or interacting with smart advertising posters. All this is becoming a
reality thanks to NFC (near field communication), the technology that enables you to carry out electronic tran-
sactions using your mobile phone.
Ahead of making the NFC payment service available to all its Ita-
lian customers by the end of 2013, Telecom Italia has already
launched a number of initiatives with major partners in Milan in
October 2012,designed to show that future services are already
a reality. During the Mobile Money Summit, a group of over a
thousand people tested the new NFC services in the streets of
Milan. Mobile phones have thus become a type of credit card,
making it easy to pay for a bus, tram, metro or train ticket, make
purchases with a credit card on your smartphone’s SIM card in
around a thousand retail outlets, and use coupons and discount
vouchers: this can all be done whilst ensuring the security and
privacy of the transactions carried out. And that’s not all. NFC
technology has also been used for some time by the employees
of three of Telecom Italia’s offices to access company buildings,
pay for food and drink in the canteen or bar,and make purchases
at vending machines. It also forms the basis of the prototype of
the “Share IT” service for sustainable transport, which enables
customers with an NFC-enabled smartphone to book a car or an
electronic key for access to,and use of,the car.
So how does near field communication work? In its simplest
form, it is a technology that uses radio frequencies for the
exchange of fast and secure information between two devices pla-
ced near to each other, within a radius of a few centimetres. It
has numerous applications. It could be used in the tourist indu-
stry, for example, as Italy is one of the world’s most popular holi-
day destinations. Using NFC, high-tech tourist experiences could
be provided, such as an interactive visit to the Leonardo da Vinci
Gallery of Milan’s Science and Technology Museum or to places
of cultural interest in Italy via interaction with electronic display
indicators relating to tourist information.
In 2012, a number of innovative prototypes of services using
this technology were introduced, such as a car with doors that
can be controlled via an NFC-enabled mobile phone, the fruit of
Telecom Italia’s partnership with the Fiat Research Centre, ter-
minals at bike sharing stations and vending machines for advan-
ced smart city services.
The use of the SIM card, which is fundamental to the whole
system, guarantees security and privacy. These crucial ele-
ments are a distinctive feature of the project developed by
Telecom Italia. Close attention has been paid to managing the
credentials of the services, especially as regards payment by
credit card and the convenience of changing from one phone
to another simply by transferring the SIM card along with all
the services used.
Simplicity of use is one of the advantages of this technology.
NFC is directly integrated in the mobile phone and no special
settings are required to make it operational. And that’s not all.
The technology is intuitive and user-friendly. It is also flexible:
it can be used in various ways and can simplify a number of daily
activities. Last but not least, it provides fast data transfer. The
prospects for NFC technology are promising given that there are
currently over 50 models of handset on sale around the world
and by 2015 50% of all smartphones will be NFC-enabled. But
revenues are expected to be even more impressive. Estimates
state that global transactions will be worth some USD 1,300
billion by 2018.
50%of all smartphones will be
NFC-enabled by 2015
Estimates state that global tran-
sactions will be worth some USD
1,300billion by 2018
IT Security
The security risk landscape has
changed dramatically in recent
years, with both the volume and
type of cyber-crime assuming
increasing importance. Telecom
Italia has a Security Lab and a
Security Operations Center to
ensure the best protection of
information,networks and services,
and to combat cyber attacks.
The Security Lab studies threats to
cyber-security, analyses new risk scena-
rios, and researches and develops inno-
vative solutions and tools, which it tests
in its labs. The Security Operations Cen-
ter is the monitoring and control centre
for security alerts that come from tele-
coms networks and data centres that
house Telecom Italia’s applications and
those of its customers. Telecom Italia
employs 100 cyber-security experts in
its labs and operations centre.
There are no products currently avai-
lable that can prevent a cyber attack
before it happens. However, we do have
an array of tools at our disposal, which, by
combining different approaches and
technologies, increase the likelihood of
recognising that an attack is under way
and therefore enable appropriate inter-
vention to be planned.
Take, for example, the phenomenon of
Advanced Persistent Threats (APT). This
is defined as criminal intrusion into the
victim’s IT system,which can happen extre-
mely slowly without raising suspicion.
Traditional security technology - both
that commonly used to protect worksta-
tions, such as anti-virus software or anti-
malware, and that used to protect com-
pany networks such as IDS, IPS and URL
filtering – can do little against attacks that
are carried out with malware that has
never been used before and that exploits
as yet undiscovered zero-day vulnerabili-
ties. At the moment the only way to pro-
vide a greater level of security is to com-
plement the tools that are already used
with technology specifically designed to
identify the presence of ATP attacks.
A defensive strategy in which Telecom Ita-
lia is already investing heavily.
Augmented Reality: the opportunity to explore and interact with the real world around us,
using a mobile phone
Augmented Reality (AR) technology makes it possible
to superimpose interactive objects onto a screen
and thus make the surrounding reality “clickable and
connected”. And therefore richer. A wealth of ideas
and high-tech solutions in the field of augmented
reality are currently on the drawing board or at the
testing phase in Telecom Italia’s research and innova-
tion laboratories.
SeeAR is the smartphone app that makes this new type of inte-
raction with the world around us possible. By scanning objects in
the world around them with their phone, users can obtain a
range of useful information that fully satisfies their require-
ments. The app displays a number of “cartoons”,overlaid on the
mobile phone’s camera, through which users can access a com-
prehensive array of information, including the address and tele-
phone number of the shop or pub searched for, institutional con-
tent and any website relating to the point of interest scanned,
reviews and user comments, the opportunity to “check in” or to
see which of their friends have already done so, menus and spe-
cial offers at restaurants and so on.
The “freeze” mode enables users to “photograph” this aug-
mented reality. It is another way of facilitating access to informa-
tion content about the environment in which users live and work,
allowing them to “freeze” the scene in front of them with all the
additional information overlaid on it, which can be easily called
up later by means of a simple click.
The augmented reality platform “ARTES” makes it possible
to create mobile client applications that add AR functionality to
Telecom Italia services. In addition,a number of AR applications
are now available to promote the local region; these are integra-
ted in Nuvola It Turismo’s current offer, with a particular focus on
the Smart App for Expo 2015 in Milan.
You can test augmented reality in this document; simply scan
the icon of the mobile phone with the eye (see above) with your
smartphone, after downloading Telecom Italia’s L’Editoria+ app
from major mobile stores.
10. 18 Connected Life Connected Life 19
Telecom Italia SMART
As part of its provision of public sector services,
Telecom Italia continued to consolidate and develop
its range of Smart Services in 2012. The aim of this
family of services, designed to meet the needs of the
geographical region and cities, is to bring about a
general improvement in residents’ quality of life.
Smart Town is an integra-
ted platform of services
for “intelligent” cities that
uses existing street lighting
equipment, integrated with
telecoms networks, to activate a range of innovative services
relating to regional management, security and energy savings.
These services can be used by both municipal authorities and
residents.
An example of smart regional management is Wireless Patrol,
a suite of advanced ICT applications that can assist police forces
in safety monitoring, the prevention of urban decay and efforts to
ensure observance of road safety codes, enabling resources for
street and back-office operations to be optimally deployed.
Smart Building is the company’s intelligent management
and building automation project. This project is being develo-
ped on the basis of a system to monitor and reduce the consu-
mption of electricity, water and other resources in municipal
buildings and private companies. Here too, video-monitoring
and digital communication form a major part of the project, and
it will also be possible to provide additional internet/intranet
(LAN) access using the power network simply by connecting
a device to the electric sockets.
Smart Inclusion, in use at some of Italy’s paediatric hospi-
tals, is a unique technology platform that enables children in
hospital to take an active part in their school lessons, commu-
nicate with their family and friends, and access various enter-
tainment programmes. It also enables hospital staff to view
and update patients’ clinical notes.
Smart Hospital is the solution for hospital management,
resource consumption services and patient care. It provides
services for monitoring energy consumption, lighting systems,
security and heating equipment, but also provides hospital
patients with the facility to make video calls and access the
Internet. It also provides hospital facilities for nursing staff
such as video calls, video monitoring of patients and electro-
nic patient record systems.
One example is Nuvola IT Home Doctor, the remote monito-
ring system that enables patients suffering chronic conditions
or who are undergoing post-hospitalisation follow-up to monitor
physiological parameters (such as body weight, blood pressure
or heart rate) at home or in appropriately equipped premises
(clinics, consulting rooms, etc). The system comprises a tech-
nology platform and software configured on the patient’s mobile
phone (or his/her PC or tablet) and the healthcare professio-
nal’s PC. The service, which delivers benefits in terms of impro-
vements in patient quality of life and optimised healthcare
costs, is operational in a number of Italian healthcare organisa-
tions including the Molinette and Regina Margherita Hospitals
in Piedmont, and the Palermo and Rieti area health authorities.
Digital Inclusion and Digital Education
Telecom Italia is committed to overcoming
the cultural digital divide for the over 60s
with “Navigare Insieme” (“Browsing
together”). The project, launched in 2012,
promotes the use of new communications
technologies among the oldest population
group. In 16 Italian cities,free digital culture
courses,run by very young Internet coaches
– middle school and high school students –
are held in schools. The training, reporting
and publishing activities held in these “digi-
tal gyms” are intended to create real edito-
rial hubs rooted in the region.
The “Navigare Sicuri” (“Browse Safely”)
project, on the other hand, aims to raise
awareness among children, students, tea-
chers and parents about how to use the
web carefully and safely. Telecom Italia
aims to talk to Italian families with chil-
dren about this great resource without
concealing its dangers.
In 2010–2012, the “Navigare Sicuri”
roadshow visited 40 Italian cities in 20
regions,covering over 15,000 km and invol-
ving around 100,000 children,in its drive to
fully exploit the potential of new technology
as a knowledge resource and a forum for
socialising,information and growth.
Brazil
InBrazil,TelecomItalia,viaitssubsidiaryTimParticipações,aimstofostersocial
inclusion in the disadvantaged sections of the population, especially children
and young people,through the development of educational plans that reinforce
theconceptof“businesswithoutfrontiers”,includinginthesocialarena.
TIM Plural conectados (timpluralconectados.com.br), a project that
offers web applications training courses, aims to create wellbeing and
social mobility by providing opportunities for increased earnings and
employment for low-income individuals, and thereby facilitates the
matching of supply and demand in employment.
But Telecom Italia’s social investment in Brazil does not stop there. The
company also continues to promote and support important initiatives that
are not closely connected with its business. One example is TIM ArtEdu-
cAção (arteducacao.art.br). This project, which arose from the partnership
between Tim Participações and non-governmental organisation Humani-
zarte,aims to stimulate young people’s interest in learning at school,and to
help them develop self-esteem and social inclusion via courses in dance,
capoeira (a Brazilian martial art), storytelling and other forms of artistic
expression. In 2012, a total of some 4,360 young people from 109 schools
in 12 cities in the state of Minas Gerais attended lessons.
Telecom Italia Green
Telecom Italia Green identifies the com-
pany’s eco-friendly products and green
projects and initiatives.
The Green line comprises products for
both business and private customers,and
includes two models of the ADSL wi-fi
modem, which, compared with the same
previous-generation products, results in
average energy savings of 46% a year and
a corresponding reduction in CO2 emis-
sions. Across one million units, this is
equivalent to keeping over 12,000 cars
on the road for a year or planting a forest
of over 30,000 trees.
The Green line also includes the latest
model of Cubovision Light and three
models of fixed-line telephone (one tradi-
tional and two cordless).
Telecom Italia has also added 12
electric saloon cars to managers’ car
pools, and for the Open Access technical
departments,25 industrial electric trucks
and 15 MP3 hybrid (fuel/electric)
scooters.
Argentina
Telecom Italia is present in Argentina via Telecom
Argentina, which is responsible for its community
relations strategy for social investment: the finan-
cial, technical and human investment that a busi-
ness makes in the wellbeing of the local commu-
nity, with a specific focus on education and digital
inclusion.
In 2012, the company held a meeting with repre-
sentatives of a number of charities, and conducted
a survey to identify the major needs and expec-
tations of the community, and stakeholders
generally.
One of the largest projects is Aula Movil, dedi-
cated to education and social inclusion. Computer
stations have been installed in a real mobile class
room, which travels to the most remote regions
of northern Argentina and provides knowledge
transfer of basic IT skills.
Sustainability in
Telecom Italia
Telecom Italia’s customer-focused approach is not only a question of customer care and gre-
ater access to broadband but of making the technology widely available to the more vulnerable
sections of society such as children, elderly people, the sick and those with disabilities. Telecom
Italia also looks after the people who work for the company, with initiatives such as People
Caring. It is also well aware that it has a significant impact on the communities and environ-
ment of the countries in which it operates, and can play a crucial role in the battle against cli-
mate change, by limiting its CO2 emissions and helping other sectors reduce emissions through
the provision of innovative services. The company also pays close attention to the sustainability
of the supply chain.
11. 20 Connected Life Connected Life 21
Case history: Telecom Italia alongside Niky
Every day, Niky, 17, wakes up, has his breakfast and then, like so many of
his friends, goes to school, where he is doing well. He interacts with his tea-
chers, and smiles and jokes with his classmates. And he can be proud of
the way his studies are going.
What is special about this story? Niky Francisco, to give this student his
full name, does all this while living in the middle of the Mediterranean Sea,
on a completely self-sufficient 26-metre yacht, built by his parents in the gar-
den of their home. This is not a lifestyle choice. He suffers from a rare form
of asthma that means he can’t live on dry land, and for this reason, from the
age of 7,he has been sailing the Mediterranean on the yacht Walkirye.
It is thanks to the support of the Telecom Italia Foundation that Niky can
do all this. The Foundation has supported the Francisco family right from
the start, enabling Niky to enjoy a normal education, while at the same time
providing a practical demonstration of the importance of telecoms and
multimedia technology for study and academic inclusion. Thanks to a
video-conferencing system, an interactive multimedia blackboard and other
innovative tools, Niky has been able to attend school “remotely”, interact in
real time with teachers and classmates and, on top of this, obtain excellent
results in terms of learning and social integration with his friends. As a
result of his unusual experience, Niky was nominated as Italy’s Junior UNI-
CEF Ambassador to promote the right to education for all children in the
Mediterranean region.
Case history: Dyslexia Programme
2012 saw the completion of a number of projects supported by
the Telecom Italia Foundation in collaboration with the Italian
Dyslexia Association – the national association for the care
of individuals with specific learning difficulties (SpLD) – to
improve knowledge about these conditions, care for people
with SpLD, and raise awareness among professionals, acade-
mics and the public about developmental dyslexia. The Foun-
dation’s aim in supporting the Dyslexia Programme over the
past few years has been to promote the promulgation and use
of IT tools and PC-based applications for helping dyslexic
children overcome the condition, mainly through specific
speech synthesis programmes.
In 2012, the Telecom Italia Foundation launched Project Dia-
gnosis, creating 12 scholarships in diagnostic centres in Italy,
with the aim of increasing research and diagnosis of SpLD in
children and adults. The ultimate goal is to obtain at least 2,000
diagnoses in one year of operations. The Foundation is continu-
ing to work with the Italian Dyslexia Association in 2012-2013
on Project Diagnosis and on the compilation of “The Italian
Dyslexia Association Book – The Digital Online Library”.
Case history: ICT for marine protected areas
The project concerning ICT for marine
protected areas is one of the many fun-
ded by Telecom Italia Foundation that
stands out. It consists of a web platform
shared by two marine protected areas,
Torre Guaceto and Porto Cesareo. The
areas are located in Salento with Torre
Guaceto on the Adriatic coast and Porto
Cesareo bordering the Ionian Sea. Both
areas constitute a complex but homoge-
neous system, which bears witness to a
heritage of immeasurable environmental,
historical, cultural, archaeological and
architectural merit in one of the oldest
rural farming landscapes of the Mediter-
ranean region
The aim of the web platform funded by
the Telecom Italia Foundation is to provide
visitors with a more organised tourist
experience,offering access to customised
information and dedicated functionality,
e.g. the opportunity to select virtual itine-
raries on specific themes, with interactive
multimedia content relating to the sce-
nery,historical sites or flora and fauna.
All this can be done by browsing the
website on mobile phones or smartpho-
nes. In this way, it is hoped that relations
will strengthen between local authorities
and private and public bodies operating
in the tourist and heritage sector. It provi-
des effective support to the implementa-
tion of an innovative joint strategy for the
promotion of the region and tourism
development based on off-peak travel
and the sustainability of tourist flows. As
a result, partly due to the integration of
certain processes, the project will deliver
improvements in the management
system of the two areas.
Telecom Italia
Foundation
17years:
Niky’s age
234,720euros
grant required
1.5mln
people with dyslexia
in Italy
To find out more:
nikyproject.it (in italian)
10years
spent at sea
76%portion of the project
funded by the Telecom
Italia Foundation
4–5%dyslexic students
18months
project duration
900projects
submitted
by schools
Listen, participate, monitor needs, support
innovation. The Telecom Italia Foundation lives
out this commitment every day as it operates in
the social arena.
Its main motivation is to promote the right to
education and knowledge, a crucial factor in
gaining qualifications and social inclusion.
Pantone 384
CMYK 25 5 100 30
Pantone 716
CMYK 0 60 100 0
Pantone 7530
CMYK 40 45 50 5
Education HISTORIC/ARTISTIC HERITAGE
AND THE ENVIRONMENT
THE SOCIAL ARENA
2008the Foundation
was created
40projects
funded to a total cost of
6,507,000
euros
18 social
17 historic/artistic
heritage and the
environment
5 educational
Breakdown of projects
To find out more:
riservaditorreguaceto.it
ampportocesareo.it
(in italian)
Follow us on fondazionetelecomitalia.it
and on facebook.com/FondazioneTelecomItalia
(in Italian)
12. 22 Connected Life Connected Life 23
The 2013–15 Strategic Plan confirms the Telecom
Italia Group’s priorities to maintain cash generation
to service the debt reduction programme already
under way, and to continue to seek value protection
through the distribution of a “sustainable” dividend to
shareholders and other actions aimed at reducing
financial pressure.
These objectives mesh with the decision to dedicate
increasing resources to investment in next-genera
tion networks over the three years of the plan –
innovation that is relevant to all markets in which
the Group operates and all types of service in which
technology is the key driver and enabling factor.
Italy’s poor economic figures in 2012 and forecasts for 2013
do not point to an easy recovery in consumer confidence. Howe-
ver, the performance of the Italian telecoms sector, which was
less affected than others, even in a declining market, reflects
the ongoing erosion of revenues from traditional services and
the transformation of the “voice” business into a commodity
that is increasingly under pressure to reduce its price.
It is possible to protect the healthy cash generation of tradi-
tional services but losses must be offset; this can be done by
strengthening the provision of innovative services, improving
the penetration of fixed and mobile broadband and promoting
a more widespread take-up of bundles (packages that offer
integrated solutions with voice,broadband and other services),
all in a fiercely competitive environment.
The Group’s activities in Brazil and Argentina are estimated
to grow in the next few years,although at different rates. Brazil,
the fourth-largest mobile market in the world, offers higher
growth potential for broadband penetration, while Argentina,
which currently has a greater level of fixed and mobile broa-
dband penetration, offers reduced potential for development
as a result.
Given that technology is the enabling factor in the telecoms
industry, the Group has decided to increasingly focus its
efforts on developing both fixed and mobile next-generation
networks.
In Italy, the proprietary copper infrastructure offers exceptio-
nal opportunities to create value,with fibre optic networks also
being developed. The Group is already working speedily on the
implementation of FTTCab (Fiber To The Cabinet), which will
provide users with browsing speeds of over 100 Mbps. In
mobile Internet, the launch of LTE technology is a further step
towards providing customers with an extremely efficient
service and a high-quality browsing experience, capable of pro-
pelling Telecom Italia into a leading position and enabling it to
beat the competition on price alone.
The Group intends to invest around 16 billion euros over the
three years of the plan; its aim is to significantly increase the
proportion of investment in innovation compared with invest-
ment in the network. For Italy,this proportion will rise from 12%
in 2012 to 28% in 2015.
To help finance its technological development plans in fixed
and mobile telephony in Italy, Brazil and Argentina – the three
key growth areas identified – the Group will continue with its
unstinting efforts to reduce costs and identify efficiency
savings over the three-year period 2013-2015.
In the domestic market, the Group also intends to stabilise
revenues from services, by protecting its retail market shares,
preserve the quality of its customer base, increase cross-sel-
ling and fixed-mobile convergence activities, expand loyalty
programmes, simplify tariff plans and protect a churn rate that
is already very low compared with other market operators.
Activities in Latin America:
• in Brazil, Telecom Italia intends to seize the growth opportu-
nities offered. Its objectives are to expand its customer base
via fixed-mobile substitution; to exploit the high potential for
mobile broadband penetration; and to continue with its
network development plan, fully exploiting the possibilities
offered by the development of the data business while simulta-
neously optimising investment.
• in Argentina, its strategic objective is to consolidate and
improve its leadership position in revenues. To achieve this,
the Group intends to increase market share and the number of
fixed and mobile proprietary platforms, expand network capa-
city, bolster its premium positioning in mobile telephony in
order to drive broadband revenues, and fully satisfy the high
demand for data traffic in the country.
Strategy
Working Capital
Support for start-ups
New industry-
university partnership
Changemakers
Changemakers numbers:
• 583 applications from teams from 21 countries
• Deadline for call for ideas: 31 December 2012
• Intensive eight-week incubation programme with
professionals from various sectors
• 2015: year of the Expo in Milan
Website: changemakers.expo2015.org
Twitter:@cm4expo
Working Capital numbers for 2009 – 2012:
• 4,000 projects received
• 79 research grants supported via research agreements
and Telecom Italia Lab tutoring
• 19 business projects supported via incubation agreements
• 36 start-ups in their initial phase supported via
pre-incubation schemes
Website: workingcapital.telecomitalia.it
Twitter: @workingcapital (in Italian)
This initiative, which was started in 2009, aims to foster new
talent in Italy, and to assist with the creation of new web compa-
nies and technologies. 2013 sees the launch of a new strategy:
in addition to providing know-how, financial resources and visibi-
lity, it will open three accelerator centres in Milan, Rome and
Catania. Thirty 25,000 euro business grants will be awarded.
Launched at the end of 2012 in partnership with Expo 2015,the
project aims to identify and support ten new business ideas
from talented young people that can improve the quality of life of
at least 10 million citizens.
Joint Open Labs (JOLs), research and innovation laboratories set up within university
centres, are the result of partnerships and agreements between Telecom Italia and the
major Italian universities in specific fields of scientific and technological interest.
JOLs in brief:
• 5 universities involved in the first phase (Trento University,Sant’Anna School of
Advanced Studies,Pisa,Polytechnic University of Milan,Polytechnic University of
Turin and Catania University)
• 350 young people,of whom 200 are working in Telecom Italia’s areas of innovation
• Interdisciplinary teams focusing on university areas of excellence
• “Open” research at international level in collaboration with organisations
such as the European Institute of Technology and MIT
• Investment of 13 million euros (2012-2015)
Milan
Pisa
Catania
Turin
Trento