1. 1
TIM Brasil Day in NY
Nov 13, 2017
Chief Techonoly Officer
Leonardo Capdeville
2. 2
TIM DAY in NY 2017
CTO – Leonardo Capdeville
Further Advancing on Infrastructure
301
Cities with 4G
700MHz
177
Cities with
VoLTE
Leadership in
4G coverage
86% of urban
pop
Best 4G Coverage leveraged by 1.8GHz refarming and Leadership in LTE 700MHz
Brazil
(Ookla Speedtest; % of tests in 4G Network)
São Paulo
(Ookla Speedtest; % of tests in 4G Network)
Rio de Janeiro
(Ookla Speedtest; % of tests in 4G Network)
65%
79%
3Q16 4Q16 1Q17 2Q17 3Q17
77%
88%
3Q16 4Q16 1Q17 2Q17 3Q17
79%
90%
3Q16 4Q16 1Q17 2Q17 3Q17
P2
P1
P3
TIM
17,7859,858 +80%
4G
Sites
746
2,401
3Q16 4Q16 1Q17 2Q17 3Q17
1st in Latam and
unique operator in
Brazil
4G Coverage Evolution (EoY > 2.600)
(# of cities)
EoY > 90%
EoY >1.000
cities
P1
P2
P3
TIM
P2
P1
P3
TIM
P2
P1
P3
TIM
51%
70%
49%
3Q16 4Q16 1Q17 2Q17 3Q17
4G 2G+3G
Network Data Usage
(% of data traffic by technology)
25%
75%
Traffic generated
by 4G Devices
* Until Aug/17
*
EoY >1.000 cities
3. 3
TIM DAY in NY 2017
CTO – Leonardo Capdeville
Benefits 4G + LTE 700Mhz
Network Effect
i.e. Benefits of the 700Mhz deployments in Brasilia
2.600 MHz 1.800 MHz 700 MHz
About 50% indoor
coverage
About 60% indoor
coverage
About 99% indoor
coverage
2x indoor Coverage
Customer Effect Opportunity 2018
41% Urban pop.
31% GDP
59% Urban pop.
69% GDP
2018
2017
700 MHz +
Differential on Coverage
and Quality with
3G 4G
Churn
1,6x
3G 4G
Usage (GB)
2,5x
Throughput (Mbps)
3G 4G
3,2x
63%
1,6x Data Traffic in 24 days
Vol. Traf. Total (MB)
Vol. Traf. 700 (MB)
Vol. Traf. 1800 (MB)
Vol. Traf. 2600 (MB)
4. 4
TIM DAY in NY 2017
CTO – Leonardo Capdeville
TIM Brasil – Pillars of TIM turnaround
Shift internal Culture from “Excusability” to Accountability, redesign Platforms and Processes from analogue to Digital to
allow a full Digital Transformation.
Customer Experience
Offer Infrastructure Efficiency
Digitalization
Culture
Mobile Offer based on Customer Segmentation
(Advanced Analytics and Big Data) to maximize
ARPU
Attack Residential UBB market through
FTTH/WTTX
Push on 3/4P Convergent Offer in selected regions
taking benefit of our Zero Legacy approach
3 5
3
4
Accelerate 4G expansion in 700MHz to reaffirm
UBB Leadership in coverage and quality
Push Fiber rollout to sustain E2E CEx in Data and
support Residential UBB coverage expansion
Use Big Data and CEx driven
approach to drive Network Capex
4
Continue to focus on recurring Efficiency in
Industrial Cash Cost (zero base approach,
strategic sourcing, make vs buy)
Disruptive Efficiencies from Digital
Transformation
5
Accelerate Digital Capabilities deployment
in both commercial and administrative IT
systems
Increase Digitalization of Customers’
Interactions along the entire lifecycle to
improve CEx and allow disruptive
efficiencies
2
Accountability and “Sense
of Ownership” as part of a
deep cultural
transformation
1
1
2
5. 5
TIM DAY in NY 2017
CTO – Leonardo Capdeville
How to apply Customer Experience concept to the
infrastructure
Enhanced and dynamic customer expectations demands a robust plan of network expansion driven by analytic insights,
on top of a major cultural transformation
Customer Experience
Spectrum Fiber Sites
Big Data/Analytics
Culture/Knowledge
1 32
5
4
6. 6
TIM DAY in NY 2017
CTO – Leonardo Capdeville
Use spectrum opportunities to maximize TIM assets 1
Spectrum Refarming Plan (average Brazil)
* 10MHz Refarming for LTE will take place in areas where TIM owns the 850MHz band,
keeping the UMTS in this frequency. In the other areas it will be refarmed 5MHz for the
LTE, keeping the other 5MHz to the UMTS.
Optimize Spectrum Performance
LTE Evolution (4,5G)2015 2016 2017 2018 2019 2020
Carrier
Aggregation
2017 2018 2019 2020
25% 75% 100% 100%
20% 70% 100%
10% 75%
70% 100% 100% 100%
40% 100% 100% 100%
5% 10% 20%
10% 20%
2x CC
3x CC
4x CC
64 QAM UL
256 QAM DL
MIMO 4x2
MIMO 4x4
LTE
2600MHz
2100MHz*
1800MHz
900MHz
850MHz
700MHz ND ND
LTE
10 Mhz
LTE
10 Mhz
LTE
10 Mhz
LTE
10 Mhz
UMTS
10 MHz
UMTS
10 MHz
UMTS
10 MHz
UMTS
10 MHz
GSM
2,5 MHz
GSM
2,5 MHz
GSM
2,5 MHz
GSM
2,5 MHz
GSM
2,5 MHz
GSM
2,5 MHz
GSM
20 MHz
GSM
15 MHz
GSM
10 MHz
UMTS
10 MHz
UMTS
10 MHz
UMTS
10 MHz
LTE
10 MHz
LTE
10 MHz
LTE
10 MHz
LTE
10 MHz
LTE
10 MHz
LTE
10 MHz
LTE
10 MHz
LTE
10 MHz
10 MHz 15 MHz 30 MHz 35 MHz 50 MHz 50 MHz
UMTS 5 MHz
LTE 5 MHz
UMTS 5 MHz
LTE 5 MHz
LTE
5 MHz
LTE
10 MHz
GSM
10 MHz
LTE
10 MHz
LTE
15 MHz
GSM
5 MHz
LTE
15 MHz
GSM
5 MHz
UMTS 5 MHz
LTE 5 MHz
In test with Anatel LTE TDD for 3.5GHz
frequency wide band 200MHz release
New Spectrum
3.5GHz
NEXT STEP
7. 7
TIM DAY in NY 2017
CTO – Leonardo Capdeville
Fiber deployment to support an Ultra broadband
Convergent Network
* Considers urban area densification. **Optical line termination
2
Incremental Plan
Boost fiber deployment to accelerate FTTH and
FTTS increase in the new industrial plan
Incremental Plan
8. 8
TIM DAY in NY 2017
CTO – Leonardo Capdeville
Demand to increase site density 3
CALIFORNIA ~1.772
NEW YORK ~2.200
BRASIL MAIN CITIES
São Paulo 8.479
Rio de Janeiro 4.271
Curitiba 4.987
Brasília 5.208
Belo Horizonte 6.219
Brasil has a High density of inhabitants per site Bio Sites: opportunity to increase site density using Sustainable Bio Sites
Lower OPEX
4,8 x
Faster deployment
12 x
City Friendly
No visual impact
In 2018 more than 80% of
new sites will be Bio Sites
RJ: + 350 installed Bio Sites in 2017
SP: New Partnership SP City Hall +300 Bio Sites in 2018
inhab/site
inhab/site
inhab/site
TRADITIONAL TOWER BIO SITE
9. 9
TIM DAY in NY 2017
CTO – Leonardo Capdeville
Advanced analytics tools (Big Data, Watson, SQM
Huawei) to evolve CEX management
NETWORK FAULT
MANAGEMENT
NETWORK
PERFORMANCE
MANAGEMENT
SERVICE
MANAGEMENT
CUSTOMER
MANAGEMENT
< 2015
2016
2017
> 2018
Watson
Machine Learning
Big Data
SMART
INVESTMENT
AUTOMATION
CANNON
SHOT
SNIPER
SHOT
REACTIVE
APPROACH
PREDICTIVE
APPROACH
4
10. 10
TIM DAY in NY 2017
CTO – Leonardo Capdeville
Dynamic Customer Expectations and new Technologies
driving a disruption in the current Telcos operating
model
Paradigm Shift
HARDWARE SOFTWARE
SILO SHARED / CROSS
THEORETICAL DRIVEN ANALYTICAL DRIVEN
REACTIVE SELF HEALING
FIELD MAINTENANCE RELEASE PATCH
TALENT
Developing talents to generate skilled workforce operating in an
innovative social, mobile, collaborative environment
CULTURE
Building a foundation of shared conducts inspired by Customer
Centricity, Trust and Openness, Borderless Collaboration, Agility,
and Empowered, Self-Driven Employees and Accountability
ORGANIZATION AGILITY
Innovating the operating model to enhance Agile processes and
position as a competitive, leading-edge digital Telco
Culture Shift
5
