2. 2 Connected Life Connected Life 3Contents4Telecom Italiain briefFind out more online:connectedlife.telecomitalia.comSustainability inTelecom Italia 18Innovation inTelecom Italia 14Key facts2012 8Telecom Italiaaround the world 6New industry-university partnership,and supportfor start-ups 22Telecom ItaliaFoundation 20Strategy 23Discover augmented realityConnected Life by Telecom Italia contains a wealthof special interactive content. Download TelecomItalia’s “L’Editoria+” app (on Android and iOS) toaccess enhanced video and other content.To access augmented content, all you have to dois activate the app and, holding your mobile phone20-30 cm away, scan the paper image you areinterested in using the icon of the mobile phonewith the eye.Online: #iovivoconnessoCommunicate, Connect, Live.Vision & InnovationResponsibility& CommunityCultureCommitment & TerritoryMain commerciallaunches in 2012 10Focus onLatin America 12141.8million customersaround the world
3. 4 Connected Life Connected Life 5Telecom Italia in briefThe Telecom Italia Group operates in the entire range of advanced communications services:fixed telecommunications, mobile and Internet telecommunications, research & development,and office & system solutionsData at 31 December 2012141.8millioncustomers aroundthe world7,500 km submarine cable network in the Mediterranean region85,000 km network in Europe and South America5,700,000 kmfibre optic network in Italy114,500,000 kmcopper cable network in Italyof which123.8million aremobile phonecustomers31cities in which work hasstarted on building next-generation fibre optic(NGAN) infrastructure60%of Italy’s population tobe covered by LTE (thenew 4G mobile network)by the end of 2015 (15%at the endof 2012)25cities covered byLTE and 9 touristareas~ 35%of the fixed networkpopulation to be coveredby next-generation fibre optic(NGAN) with FTTCab Fiber ToThe Cabinet architectureby 201598%ADSL coveragein Italy(January 2013)CustomersIndustrial assetsRevenues:29.5billion euros(0.5% organic growthcompared with 2011)EBITDA:11.7billion euros(2% decrease in organicterms compared with 2011)Adjusted NetFinancial Position: 28.3billion euros(2.1 billion eurosdown on 2011)3%reductionin CO2 emissions compared with 201183,141 employees54,380 Italy16,803Argentinaand Paraguay11,622 Brazil336 rest of the world52,493 men30,648 womenFinancial data at 31 December 2012+4.6% training hours per employeecompared with 2011 (total of 27.4 hours)As proof of its commitment to sustainability,Telecom Italia is includedin the most prestigious global sustainability indexes,including theDow Jones Sustainability Indexes (DJSI) and the Financial TimesStock Exchange for Good (FTSE4Good)Environment and Social Employees+19% investmentin the community and social arena comparedwith 2011, totalling 36.4 million euros(measured according to the LBG model)3.1bninItaly1.5bninBrazil0.6bninArgentinaCapital expenditure:5.2billion euros
4. 6 Connected Life Connected Life 7Telecom Italiaaround the worldData at 31 December 2012Main marketsSparkle Group officesTelecom Italia is Italy’s leading telecommunications and ICT, one of the largest operatorsin Latin America and one of the major global operatorsBrazilRevenues: 7.5billioneuros (+1.8% vs 2011)Mobile lines: 70.4 mln(+9.8% vs 2011)ARPU mobile (averagerevenue per user - includingturnover from visitors):19.1reais(=7.6 euros per month)Employees: 11,622Argentina and ParaguayRevenues: 3.8billioneuros (+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: 16,803Italy(Domestic Business Unit)Revenues: 17.9 billioneuros (-5.8% vs 2011)Mobile lines: 32.1mlnRetail fixed lines: 14mln(7 million retail broadband accesses)ARPU Retail mobile(average revenue per user):15.5euros per monthARPU Broadband: 18.5euros per monthEmployees: 53,224Telecom Italia Sparkle is a leading globaloperator with a wide range of Voice andData over IP,mobile and corporateservices designed to meet the needsof fixed and mobile carriers,ISP/ASP,content providers,multimedia playersand corporate clients through a globaltelecommunications network.Key numbers:• over 500,000 km global network• Largest IP operator in theMediterranean 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 9Key facts 20121 FebruaryDistance monitoring service launched:patients of Turin’s Molinette Hospital canbe monitored from home via mobile phone13 JuneTIM Brasil winstender for theaward of 4Gfrequencies inBrazil14 September“Changemakers” – 10 new ideas tochange the lives of 10 million people –launched in partnership with Expo 201515 FebruaryTesting of ultra broadband servicesbased on next-generation mobilenetwork LTE begins in Turin Marketingof service with TIM starts in November14 SeptemberTelecom Italia and Fastweb join forces toexpedite development of ultra broadbandinfrastructure (FTTCab)4 AprilTelecom Italia and Microsoft launch“Prospettiva Impresa” to promote ITsolutions based on cloud computing insmall and medium-sized businesses22 OctoberTesting of contactlesspayment with NFCtechnology starts in Milan5 DecemberFibre optic ultra broadbandservices with a speed of 30Mbps become available,thanks to next-generationnetwork (FTTCab)10 OctoberBusiness, environmental policy andsustainable innovation.Telecom Italia CEO Marco Patuano andItaly’s Managing Director Corrado Clinidiscuss in Twitter time31 MarchPersonal is the firstoperator to launchnumber portability inArgentina20 DecemberTIM Brasilcelebrates its 70millionth customerin Rio de JaneiroFoto:DomenicoGiampàFind out more online:connectedlife.telecomitalia.com
6. 10 Connected Life Connected Life 115 DecemberLaunch of fibreoptic ultra Internetenabling homebrowsing at a speedof 30 Mbps courtesyof the next-generationnetwork based onFTTCab architectureMain commerciallaunches in 2012Nuvola It Hyperway è la nuova offerta Telecom Italiache permette di integrare i vantaggi della connettivitàHyperway con i servizi IT della Nuvola Italiana.I clienti che attivano Nuvola It Hyperway riceveranno delle Gocce di Nuvola, che permettono diavere 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 HYPERWAYi servizi della Nuvola Italianasono già nelle tue mani.nuvolaitaliana.itcloudpeople.itSeguici 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 duenuovi gioielli della tecnologia. Olipad Graphos, abilitato allacompilazione dei documenti che richiedono una firma autografae Olipad 3, il tablet che può essere personalizzato a secondadelle esigenze più specifiche. Solo chi è da sempre vicino alleaziende poteva pensarci. Oli you, Olivetti.Scoprili su www.olipad.it7 NovemberMarketing starts for ultra Internetservices based on HSPA+ technologyat 42 Mbps on the new 4G-LTE network10 DecemberLaunch in Argentinaof the new ultrabroadband portfolioof solutions withspeeds of up to50 Mbps based onVDSL and GPON(FTTH) technology,for high-value fixedbroadbandcustomers13 JanuaryCommunicationscampaign gets underway for the newversion of Superinternet: the optionthat meets theincreasing demandfor faster broadbandspeeds for downloads and – moreimportantly – uploads.23 MayOlivetti launchestwo new tablets withinnovative technology7 NovemberPartnership between Telecom Italia andSony Computer Entertainment Italia totest the Internet Play ADSL solution andthus improve competitiveness and respon-siveness in multiplayer network games12 MarchTelecom Italia launchesNuvola It Hyperway, thefirst offer that combinesconnectivity and cloudcomputing services5 JulyLaunch of Nube Argentina, thesuite of cloud solutions offeringArgentine businesses datacentre, digital PA, virtualisation,security, communication andadvanced collaboration services10 OctoberTelecom Italia at SMAU 2012 speeds up“IT IS” (Information Technology ImpresaSemplice) programme, the specialist ITsales channel for small and medium-sizedbusinessesTelecom Italia’s on-demandTV channel for watching films,TV series andvideos on TV,smart TV and mobile devicesTelecom Italia’s digital store,one of the best-stocked Italian stores withover 40,000 titlesservice for Telecom Italiaand TIM customers to listen to unlimitedmusic online,with a catalogue of one millionItalian and international songsFind out more online:connectedlife.telecomitalia.com20 JulyLaunch of innovative fixed broadbandoffer – Live TIM – with speeds of over35 Mbps, which, in only six months onthe market, has achieved a total of10,000 installed customers in SãoPaolo and Rio de Janeiro
7. 12 Connected Life Connected Life 13In 2012 TIM Brasil, the second-largest mobile operator inBrazil,continued its strategy of innovation through technologicaldevelopment and the coverage of increasingly large areas of thecountry.At the end of October 2011, it acquired control of two AESAtimus Group companies, now renamed TIM Fiber RJ and TIMFiber SP, which will operate in the provision of residential broadband services. The company increased its industrial investmentby 210 million euros in 2012 to acquire usage rights for fre-quency bands for fourth-generation (4G) mobile telephony (140million euros) and to develop the quality of the network infra-structure.In June 2012, TIM invested around 400 million Brazilian reaisto acquire seven blocks in the tender for the 2.5 GHz frequencyband and will develop 4G digital infrastructure, starting with thecities 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, TIMalso 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 itscommitment to this campaign by building the “Portas Abertas”platform in October 2012. The company’s customers can followthe 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 ofits communications to customers, comes alongside the recentrevamp of its website, which is now even more dynamic andinteractive. TIM Participações is listed on the São Paulo stockexchange and has American Depositary Receipts (ADRs) on theNew York stock exchange (NYSE). TIM’s focus on sustainabledevelopment, environmental balance, ethical responsibility andcorporate governance has led to the company’s inclusion in theCorporate Sustainability Index of the São Paolo stock exchangefor the fifth year runningAmazonas sem FronteirasTIM’s investment of over BRL 200 million to lay 1,800 km of fibreoptic cables in north Brazil (Amazonas, Pará and Amapá)reaffirms the company’s commitment to providing high-qualityservices in even the most remote and inaccessible areas of thecountry.Once the difficulties of building this type of infrastructure insuch a problematic region have been overcome, it is expectedthat the complete network will be laid by June 2013, providingextensive coverage to these remote regions of Brazil.TIM also announced in October 2012 that it would share thisand other infrastructure with the public operator, Telebras, withthe aim of expanding the National Broadband Program (PNBL).Commercial launchesMarch 2012 saw the launch of Liberty Passport, a serviceenabling 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 toyoung people, that includes voice, SMS and data for enhanceduse of social networks.The Telecom Argentina Group is one of the largest telecomsoperators in the country and provides fixed and mobile tele-phony (by Personal), Internet and transmission services. It alsooperates in Paraguay in the mobile sector. The company is listedon the Buenos Aires stock exchange.Investment in 2012, which was stable on the previous year,was directed towards three areas: the expansion and upgrade ofbroadband services in order to improve transmission capacityand increase access speeds offered to customers; the traditionalfixed segment to meet demand; and backhauling to support thedevelopment of mobile access. In addition, Telecom Personalinvested mainly in increasing capacity and expanding the 3Gnetwork to support the growth of mobile Internet. In the last quar-ter of the year, it implemented the LTE network in Paraguay, whichwas launched commercially in early 2013.ArgentinaIn fixed telephony, the residential segment showed moderategrowth 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 tothe replacement effect of the increased penetration of mobiletelephony,pushing up average revenues per user (ARPU).As regards mobile telephony, in March 2012 Personal was thefirst operator to launch Number Portability with a widespread,clear advertising campaign that - together with its flexible offertailored to the needs of customers – earned its position as themarket’s favourite operator.In 2012, Personal developed an innovative model for itsbusiness network based on close attention to the customerexperience. This included helping customers in their choicesand offering them the opportunity to personally try out new tech-nology.Personal pursued a strategy of introducing the most innovativesmartphones available on the market. It is leader in this segmentwith a market share of 39% (source: GFK).Personal has strengthened its leadership in the young peoplesegment with its strong connection to the music world. The eighthedition of Personal Fest,the largest international music festival inArgentina, attracted over 40,000 young people and received500,000 visits on YouTube.In 2012, Personal was recognised for the second year runningas a high-quality employer. This was achieved partly thanks to itsin-house corporate culture development programme aimed atimproving employees’ styles of working and quality of life, ack-nowledging the involvement of its people as a strategic variablethat cannot be separated from business management.ParaguayPersonal reached 2.3 million customers in Paraguay at the endof 2012,a 7% rise on the previous year.Revenues rose 21% on 2011, bolstered by its leading positionin the mobile Internet market. Following the introduction of Num-ber Portability, Personal focused its efforts on informing themarket 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 inParaguay. It was the first and only operator in the country tolaunch services on the LTE 4G network,and the second in LatinAmerica. This new technology enables the high-speed transferof data and thus provides a highly-interactive user experiencewith 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 of26.9% of mobile lines,and leader in the pay-as-you-go segment• Revenues: 7,477 million euros (+1.8%),representing 25.3% ofTelecom 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.brActivities 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-largestby 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% ofthe 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 15Mobile ultra broadband thanks to the next-generation 4G networkFor Telecom Italia, innovative LTE (Long Term Evolution) technology, marketed as the4G mobile network, represents the way in which its mobile radio access network willevolve towards ultra broadband.TIM customers can now enjoy performance and service levels that considerablyenhance their experience of Internet browsing,allowing them to use innovative multimedia content while on the move. The ability to make high-definition video-calls orsimultaneously download several films at high speeds and in excellent quality, hasnow become a reality, starting with HD video streaming.The LTE network considerably speeds up the rate of data transfer on the mobile network. Thanks to4G technology, digital transmission speeds of 100 Mbps for downloads and 50 Mbps for uploadscan be achieved. This enables Telecom Italia to guarantee the provision of high-definition servicesand multimedia content while on the move. In relative terms, the increase in speed is estimated tobe 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 asthe multi-service transport standard, enables Telecom Italia to respond to the increasing demandfor 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 Italianmunicipalities, 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 some14.9%. 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 willenable it to enhance its range of services for customers and much more. In 2012, the companyundertook work to assess and optimise the energy efficiency of the mobile network,with the aim ofachieving 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 tocapture live video signals from unmanned ground and aerial vehicles. The initiative enabledproduction costs to be reduced and avoided the use of helicopters for radio links and filming, witha positive environmental impact in terms of reduced energy consumption and hence feweratmospheric emissions.5-10times fasterthan the HSPAnetwork60%populationcoverage by201515%populationcoverage atthe end of201250Mbpsuploadspeed100MbpsmaximumdownloadspeedFixed ultra broadband based on FTTCabarchitectureOne of Telecom Italia’s points of excellence is thenext-generation fibre optic network NGAN (NextGeneration Access Network), based essentially onFTTCab (Fiber To The Cabinet) architecture. This solu-tion enables the company to bring ultra broadband ser-vices with guaranteed transmission speeds of 30 Mbpsdownload 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 Mbpsupstream via FTTCab access. This constitutes a very user-frien-dly solution for customers. The system is based on a fibremodem to which customers can connect all the telephones inthe house and all internet-browsing devices such as PCs,tabletsand smartphones. VoIP (voice over IP) calls can also be made.As a result of this strategic decision, Telecom Italia is now at theforefront of the process to develop increasingly digital homesand companies, which can benefit from an ever-broadeningrange of services offering a wealth of real-time apps and high-de-finition multimedia content.FTTCab architecture allows several users to simultaneouslytake part in a variety of online activities. It means that userscan, at the same time, play multiplayer games with high levels ofperformance, watch streaming videos in full HD without pausesor interruptions, and simply and easily share content such asphotos, videos and music. All this can be obtained using themost 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 thoseprovided by yesterday’s telecoms technology. But what is theFTTCab solution on which NGAN is based? FTTCab representsthe next-generation network architecture that runs the fibrecable to the “cabinet” located in the street at around 500metres, on average, from people’s homes. Connecting the cabi-net to customers is then practically a fait accompli and canbe done using traditional copper cables. There are numerousbenefits to this: the infrastructure can be built more quickly,there is less inconvenience for residents and it costs less thanother high-tech solutions. It is the best technology available inEurope today, as demonstrated by the fact that the majority ofEuropean telecoms operators – in Germany, France, the UK andSwitzerland – are in the process of adopting it.With this project Telecom Italia is providing a strong impetusto the national programme to develop ultra broadband in Italy. InMarch 2013, work had already begun on laying fibre optic cablesin 31 cities. This will rise to 125 by 2015, covering about eightmillion 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 objectiveof 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 speedingup the growth and digitalisation of Italian businesses to relaunchthe Italian economy, in accordance with the Italian DigitalAgency’s programmes.Innovation inTelecom Italia35%populationcoverage by20153Mbpsupstream30Mbpsdownstream
9. 16 Connected Life Connected Life 17Near Field Communication (NFC) – the new technologyUsing 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 areality 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 alreadylaunched a number of initiatives with major partners in Milan inOctober 2012,designed to show that future services are alreadya reality. During the Mobile Money Summit, a group of over athousand people tested the new NFC services in the streets ofMilan. Mobile phones have thus become a type of credit card,making it easy to pay for a bus, tram, metro or train ticket, makepurchases with a credit card on your smartphone’s SIM card inaround a thousand retail outlets, and use coupons and discountvouchers: this can all be done whilst ensuring the security andprivacy of the transactions carried out. And that’s not all. NFCtechnology has also been used for some time by the employeesof three of Telecom Italia’s offices to access company buildings,pay for food and drink in the canteen or bar,and make purchasesat vending machines. It also forms the basis of the prototype ofthe “Share IT” service for sustainable transport, which enablescustomers with an NFC-enabled smartphone to book a car or anelectronic key for access to,and use of,the car.So how does near field communication work? In its simplestform, it is a technology that uses radio frequencies for theexchange of fast and secure information between two devices pla-ced near to each other, within a radius of a few centimetres. Ithas 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 couldbe provided, such as an interactive visit to the Leonardo da VinciGallery of Milan’s Science and Technology Museum or to placesof cultural interest in Italy via interaction with electronic displayindicators relating to tourist information.In 2012, a number of innovative prototypes of services usingthis technology were introduced, such as a car with doors thatcan be controlled via an NFC-enabled mobile phone, the fruit ofTelecom 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 wholesystem, guarantees security and privacy. These crucial ele-ments are a distinctive feature of the project developed byTelecom Italia. Close attention has been paid to managing thecredentials of the services, especially as regards payment bycredit card and the convenience of changing from one phoneto another simply by transferring the SIM card along with allthe services used.Simplicity of use is one of the advantages of this technology.NFC is directly integrated in the mobile phone and no specialsettings 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 dailyactivities. Last but not least, it provides fast data transfer. Theprospects for NFC technology are promising given that there arecurrently over 50 models of handset on sale around the worldand by 2015 50% of all smartphones will be NFC-enabled. Butrevenues are expected to be even more impressive. Estimatesstate that global transactions will be worth some USD 1,300billion by 2018.50%of all smartphones will beNFC-enabled by 2015Estimates state that global tran-sactions will be worth some USD1,300billion by 2018IT SecurityThe security risk landscape haschanged dramatically in recentyears, with both the volume andtype of cyber-crime assumingincreasing importance. TelecomItalia has a Security Lab and aSecurity Operations Center toensure the best protection ofinformation,networks and services,and to combat cyber attacks.The Security Lab studies threats tocyber-security, analyses new risk scena-rios, and researches and develops inno-vative solutions and tools, which it testsin its labs. The Security Operations Cen-ter is the monitoring and control centrefor security alerts that come from tele-coms networks and data centres thathouse Telecom Italia’s applications andthose of its customers. Telecom Italiaemploys 100 cyber-security experts inits labs and operations centre.There are no products currently avai-lable that can prevent a cyber attackbefore it happens. However, we do havean array of tools at our disposal, which, bycombining different approaches andtechnologies, increase the likelihood ofrecognising that an attack is under wayand therefore enable appropriate inter-vention to be planned.Take, for example, the phenomenon ofAdvanced Persistent Threats (APT). Thisis defined as criminal intrusion into thevictim’s IT system,which can happen extre-mely slowly without raising suspicion.Traditional security technology - boththat 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 URLfiltering – can do little against attacks thatare carried out with malware that hasnever been used before and that exploitsas 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 usedwith technology specifically designed toidentify 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 phoneAugmented Reality (AR) technology makes it possibleto superimpose interactive objects onto a screenand thus make the surrounding reality “clickable andconnected”. And therefore richer. A wealth of ideasand high-tech solutions in the field of augmentedreality are currently on the drawing board or at thetesting 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 inthe world around them with their phone, users can obtain arange of useful information that fully satisfies their require-ments. The app displays a number of “cartoons”,overlaid on themobile 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 tosee 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 theadditional information overlaid on it, which can be easily calledup later by means of a simple click.The augmented reality platform “ARTES” makes it possibleto create mobile client applications that add AR functionality toTelecom Italia services. In addition,a number of AR applicationsare now available to promote the local region; these are integra-ted in Nuvola It Turismo’s current offer, with a particular focus onthe Smart App for Expo 2015 in Milan.You can test augmented reality in this document; simply scanthe icon of the mobile phone with the eye (see above) with yoursmartphone, after downloading Telecom Italia’s L’Editoria+ appfrom major mobile stores.
10. 18 Connected Life Connected Life 19Telecom Italia SMARTAs part of its provision of public sector services,Telecom Italia continued to consolidate and developits range of Smart Services in 2012. The aim of thisfamily of services, designed to meet the needs of thegeographical region and cities, is to bring about ageneral improvement in residents’ quality of life.Smart Town is an integra-ted platform of servicesfor “intelligent” cities thatuses existing street lightingequipment, integrated withtelecoms networks, to activate a range of innovative servicesrelating to regional management, security and energy savings.These services can be used by both municipal authorities andresidents.An example of smart regional management is Wireless Patrol,a suite of advanced ICT applications that can assist police forcesin safety monitoring, the prevention of urban decay and efforts toensure observance of road safety codes, enabling resources forstreet and back-office operations to be optimally deployed.Smart Building is the company’s intelligent managementand 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 municipalbuildings and private companies. Here too, video-monitoringand digital communication form a major part of the project, andit will also be possible to provide additional internet/intranet(LAN) access using the power network simply by connectinga 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 inhospital 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 viewand update patients’ clinical notes.Smart Hospital is the solution for hospital management,resource consumption services and patient care. It providesservices for monitoring energy consumption, lighting systems,security and heating equipment, but also provides hospitalpatients with the facility to make video calls and access theInternet. It also provides hospital facilities for nursing staffsuch 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 conditionsor who are undergoing post-hospitalisation follow-up to monitorphysiological parameters (such as body weight, blood pressureor 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 mobilephone (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 healthcarecosts, is operational in a number of Italian healthcare organisa-tions including the Molinette and Regina Margherita Hospitalsin Piedmont, and the Palermo and Rieti area health authorities.Digital Inclusion and Digital EducationTelecom Italia is committed to overcomingthe cultural digital divide for the over 60swith “Navigare Insieme” (“Browsingtogether”). The project, launched in 2012,promotes the use of new communicationstechnologies among the oldest populationgroup. In 16 Italian cities,free digital culturecourses,run by very young Internet coaches– middle school and high school students –are held in schools. The training, reportingand 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 raiseawareness among children, students, tea-chers and parents about how to use theweb carefully and safely. Telecom Italiaaims to talk to Italian families with chil-dren about this great resource withoutconcealing its dangers.In 2010–2012, the “Navigare Sicuri”roadshow visited 40 Italian cities in 20regions,covering over 15,000 km and invol-ving around 100,000 children,in its drive tofully exploit the potential of new technologyas a knowledge resource and a forum forsocialising,information and growth.BrazilInBrazil,TelecomItalia,viaitssubsidiaryTimParticipações,aimstofostersocialinclusion in the disadvantaged sections of the population, especially childrenand young people,through the development of educational plans that reinforcetheconceptof“businesswithoutfrontiers”,includinginthesocialarena.TIM Plural conectados (timpluralconectados.com.br), a project thatoffers web applications training courses, aims to create wellbeing andsocial mobility by providing opportunities for increased earnings andemployment for low-income individuals, and thereby facilitates thematching of supply and demand in employment.But Telecom Italia’s social investment in Brazil does not stop there. Thecompany also continues to promote and support important initiatives thatare not closely connected with its business. One example is TIM ArtEdu-cAção (arteducacao.art.br). This project, which arose from the partnershipbetween Tim Participações and non-governmental organisation Humani-zarte,aims to stimulate young people’s interest in learning at school,and tohelp them develop self-esteem and social inclusion via courses in dance,capoeira (a Brazilian martial art), storytelling and other forms of artisticexpression. In 2012, a total of some 4,360 young people from 109 schoolsin 12 cities in the state of Minas Gerais attended lessons.Telecom Italia GreenTelecom Italia Green identifies the com-pany’s eco-friendly products and greenprojects and initiatives.The Green line comprises products forboth business and private customers,andincludes two models of the ADSL wi-fimodem, which, compared with the sameprevious-generation products, results inaverage energy savings of 46% a year anda corresponding reduction in CO2 emis-sions. Across one million units, this isequivalent to keeping over 12,000 carson the road for a year or planting a forestof over 30,000 trees.The Green line also includes the latestmodel of Cubovision Light and threemodels of fixed-line telephone (one tradi-tional and two cordless).Telecom Italia has also added 12electric saloon cars to managers’ carpools, and for the Open Access technicaldepartments,25 industrial electric trucksand 15 MP3 hybrid (fuel/electric)scooters.ArgentinaTelecom Italia is present in Argentina via TelecomArgentina, which is responsible for its communityrelations 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 digitalinclusion.In 2012, the company held a meeting with repre-sentatives of a number of charities, and conducteda survey to identify the major needs and expec-tations of the community, and stakeholdersgenerally.One of the largest projects is Aula Movil, dedi-cated to education and social inclusion. Computerstations have been installed in a real mobile classroom, which travels to the most remote regionsof northern Argentina and provides knowledgetransfer of basic IT skills.Sustainability inTelecom ItaliaTelecom 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 vulnerablesections of society such as children, elderly people, the sick and those with disabilities. TelecomItalia also looks after the people who work for the company, with initiatives such as PeopleCaring. 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 throughthe provision of innovative services. The company also pays close attention to the sustainabilityof the supply chain.
11. 20 Connected Life Connected Life 21Case history: Telecom Italia alongside NikyEvery day, Niky, 17, wakes up, has his breakfast and then, like so many ofhis 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 ofthe way his studies are going.What is special about this story? Niky Francisco, to give this student hisfull 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 formof asthma that means he can’t live on dry land, and for this reason, from theage 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 cando all this. The Foundation has supported the Francisco family right fromthe start, enabling Niky to enjoy a normal education, while at the same timeproviding a practical demonstration of the importance of telecoms andmultimedia technology for study and academic inclusion. Thanks to avideo-conferencing system, an interactive multimedia blackboard and otherinnovative tools, Niky has been able to attend school “remotely”, interact inreal time with teachers and classmates and, on top of this, obtain excellentresults in terms of learning and social integration with his friends. As aresult of his unusual experience, Niky was nominated as Italy’s Junior UNI-CEF Ambassador to promote the right to education for all children in theMediterranean region.Case history: Dyslexia Programme2012 saw the completion of a number of projects supported bythe Telecom Italia Foundation in collaboration with the ItalianDyslexia Association – the national association for the careof individuals with specific learning difficulties (SpLD) – toimprove knowledge about these conditions, care for peoplewith 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 thepast few years has been to promote the promulgation and useof IT tools and PC-based applications for helping dyslexicchildren overcome the condition, mainly through specificspeech 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 inchildren and adults. The ultimate goal is to obtain at least 2,000diagnoses in one year of operations. The Foundation is continu-ing to work with the Italian Dyslexia Association in 2012-2013on Project Diagnosis and on the compilation of “The ItalianDyslexia Association Book – The Digital Online Library”.Case history: ICT for marine protected areasThe project concerning ICT for marineprotected areas is one of the many fun-ded by Telecom Italia Foundation thatstands out. It consists of a web platformshared by two marine protected areas,Torre Guaceto and Porto Cesareo. Theareas are located in Salento with TorreGuaceto on the Adriatic coast and PortoCesareo bordering the Ionian Sea. Bothareas constitute a complex but homoge-neous system, which bears witness to aheritage of immeasurable environmental,historical, cultural, archaeological andarchitectural merit in one of the oldestrural farming landscapes of the Mediter-ranean regionThe aim of the web platform funded bythe Telecom Italia Foundation is to providevisitors with a more organised touristexperience,offering access to customisedinformation and dedicated functionality,e.g. the opportunity to select virtual itine-raries on specific themes, with interactivemultimedia content relating to the sce-nery,historical sites or flora and fauna.All this can be done by browsing thewebsite on mobile phones or smartpho-nes. In this way, it is hoped that relationswill strengthen between local authoritiesand private and public bodies operatingin the tourist and heritage sector. It provi-des effective support to the implementa-tion of an innovative joint strategy for thepromotion of the region and tourismdevelopment based on off-peak traveland the sustainability of tourist flows. Asa result, partly due to the integration ofcertain processes, the project will deliverimprovements in the managementsystem of the two areas.Telecom ItaliaFoundation17years:Niky’s age234,720eurosgrant required1.5mlnpeople with dyslexiain ItalyTo find out more:nikyproject.it (in italian)10yearsspent at sea76%portion of the projectfunded by the TelecomItalia Foundation4–5%dyslexic students18monthsproject duration900projectssubmittedby schoolsListen, participate, monitor needs, supportinnovation. The Telecom Italia Foundation livesout this commitment every day as it operates inthe social arena.Its main motivation is to promote the right toeducation and knowledge, a crucial factor ingaining qualifications and social inclusion.Pantone 384CMYK 25 5 100 30Pantone 716CMYK 0 60 100 0Pantone 7530CMYK 40 45 50 5Education HISTORIC/ARTISTIC HERITAGEAND THE ENVIRONMENTTHE SOCIAL ARENA2008the Foundationwas created40projectsfunded to a total cost of6,507,000euros18 social17 historic/artisticheritage and theenvironment5 educationalBreakdown of projectsTo find out more:riservaditorreguaceto.itampportocesareo.it(in italian)Follow us on fondazionetelecomitalia.itand on facebook.com/FondazioneTelecomItalia(in Italian)
12. 22 Connected Life Connected Life 23The 2013–15 Strategic Plan confirms the TelecomItalia Group’s priorities to maintain cash generationto service the debt reduction programme alreadyunder way, and to continue to seek value protectionthrough the distribution of a “sustainable” dividend toshareholders and other actions aimed at reducingfinancial pressure.These objectives mesh with the decision to dedicateincreasing resources to investment in next-generation networks over the three years of the plan –innovation that is relevant to all markets in whichthe Group operates and all types of service in whichtechnology is the key driver and enabling factor.Italy’s poor economic figures in 2012 and forecasts for 2013do not point to an easy recovery in consumer confidence. Howe-ver, the performance of the Italian telecoms sector, which wasless affected than others, even in a declining market, reflectsthe ongoing erosion of revenues from traditional services andthe transformation of the “voice” business into a commoditythat 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 bystrengthening the provision of innovative services, improvingthe penetration of fixed and mobile broadband and promotinga more widespread take-up of bundles (packages that offerintegrated solutions with voice,broadband and other services),all in a fiercely competitive environment.The Group’s activities in Brazil and Argentina are estimatedto grow in the next few years,although at different rates. Brazil,the fourth-largest mobile market in the world, offers highergrowth potential for broadband penetration, while Argentina,which currently has a greater level of fixed and mobile broa-dband penetration, offers reduced potential for developmentas a result.Given that technology is the enabling factor in the telecomsindustry, the Group has decided to increasingly focus itsefforts on developing both fixed and mobile next-generationnetworks.In Italy, the proprietary copper infrastructure offers exceptio-nal opportunities to create value,with fibre optic networks alsobeing developed. The Group is already working speedily on theimplementation of FTTCab (Fiber To The Cabinet), which willprovide users with browsing speeds of over 100 Mbps. Inmobile Internet, the launch of LTE technology is a further steptowards providing customers with an extremely efficientservice and a high-quality browsing experience, capable of pro-pelling Telecom Italia into a leading position and enabling it tobeat the competition on price alone.The Group intends to invest around 16 billion euros over thethree years of the plan; its aim is to significantly increase theproportion 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 fixedand mobile telephony in Italy, Brazil and Argentina – the threekey growth areas identified – the Group will continue with itsunstinting efforts to reduce costs and identify efficiencysavings over the three-year period 2013-2015.In the domestic market, the Group also intends to stabiliserevenues 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 loyaltyprogrammes, simplify tariff plans and protect a churn rate thatis 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 basevia fixed-mobile substitution; to exploit the high potential formobile broadband penetration; and to continue with itsnetwork development plan, fully exploiting the possibilitiesoffered by the development of the data business while simulta-neously optimising investment.• in Argentina, its strategic objective is to consolidate andimprove its leadership position in revenues. To achieve this,the Group intends to increase market share and the number offixed and mobile proprietary platforms, expand network capa-city, bolster its premium positioning in mobile telephony inorder to drive broadband revenues, and fully satisfy the highdemand for data traffic in the country.StrategyWorking CapitalSupport for start-upsNew industry-university partnershipChangemakersChangemakers numbers:• 583 applications from teams from 21 countries• Deadline for call for ideas: 31 December 2012• Intensive eight-week incubation programme withprofessionals from various sectors• 2015: year of the Expo in MilanWebsite: changemakers.expo2015.orgTwitter:@cm4expoWorking Capital numbers for 2009 – 2012:• 4,000 projects received• 79 research grants supported via research agreementsand Telecom Italia Lab tutoring• 19 business projects supported via incubation agreements• 36 start-ups in their initial phase supported viapre-incubation schemesWebsite: workingcapital.telecomitalia.itTwitter: @workingcapital (in Italian)This initiative, which was started in 2009, aims to foster newtalent 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 andCatania. Thirty 25,000 euro business grants will be awarded.Launched at the end of 2012 in partnership with Expo 2015,theproject aims to identify and support ten new business ideasfrom talented young people that can improve the quality of life ofat least 10 million citizens.Joint Open Labs (JOLs), research and innovation laboratories set up within universitycentres, are the result of partnerships and agreements between Telecom Italia and themajor 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 ofAdvanced Studies,Pisa,Polytechnic University of Milan,Polytechnic University ofTurin 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 organisationssuch as the European Institute of Technology and MIT• Investment of 13 million euros (2012-2015)MilanPisaCataniaTurinTrento