Digitisation of the Country

social need
Innovative and secure IT infrastructure
22,200
jobs
results
1,906 mln
euros
social value
3,166 mln
euros
business value

Scenario

In line with the objectives established by the Digital Agenda in 2020, and the Governments super-fast broadband strategy, the Company’s investment plan is strongly oriented towards ensuring access to fixed and mobile super-fast broadband 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.

Aim

High quality super-fast broadband access becomes a distinctive asset on which to focus the Group’s strategy, both to consolidate its current position and, in the medium to long term, to complete its transition from a traditional Telco into a Digital Telco & Platform Company: the country’s digital life enabler. The plan provides for the position in multimedia entertainment to be strengthened to include activities in the fields of video, music, gaming and publishing, amongst others.

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, 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.

Strategy

By the end of 2015, the fixed super-fast broadband service was 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 2016-2018 plan also boosts the structural transformation of the Network. Investments in innovation, decommissioning and network modernisation will benefit and improve Network architectures and the operating model.

In the mobile arena, the operational plans will allow commercial LTE coverage of the outdoor population to increase by 2018 from the current 88% to 98%, supporting customer growth with positive effects on data traffic.

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.

Methodology

The Social Value consists of the following:

  • 1,236 million euros: investments made in Italy, in 2015, to build the fixed network (broadband and super-fast broadband) and mobile network (LTE and 3G) multiplied by 0.931.
  • 670 million euros: obtained by multiplying the 2015 GDP (ISTAT estimate for December 2015) by the increase in the penetration of broadband and super-fast broadband in 2015 compared to 2014 and multiplying this by 0.0256%2.

The Business Value is Telecom Italia S.p.A.’s revenue from broadband and super-fast broadband (fixed and mobile) for 2015.

1 Impact of broadband on the economy, ITU, 2012 – National Broadband Plan in Germany. The value expresses the euros of GDP generated per euro invested in building the super-fast broadband networks 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).

2 Penetration rate multiplier from the Impact of broadband on the economy study, ITU, 2012. The multiplier used comes from the R. 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.