The document discusses the evolution and future prospects of the telecom industry in Italy, particularly focusing on 5G technology and its implementation through various programs by TIM. It highlights the investment challenges, potential use cases in sectors like health, mobility, and smart cities, and emphasizes the importance of regulatory frameworks for sustainable growth. Privacy concerns and the need for equitable competition between traditional telecoms and over-the-top (OTT) services are also underscored.

1. Data Driven Innovation
Attilio Somma
Innovation VP, TIM

2. 2
ANALOGUE
WORLD
Fixed and
mobile
networks
Telcos
Business
Models
Voice
Digital Solutions
(smart connectivity, security,
convergence, big data, IoT..)
Connectivity
RETICULAR
BUSINESS
MODELS
• Knowledge
• Value Chain
• Ecosystems
LINEAR BUSINESS
MODELS
Goods & Services
production
COMPETITIVE
BUSINESS MODELS
Disruption
Simplicity Challenge Cooperation -
Opportunity
PAST PRESENT FUTURE
GIGABIT
SOCIETY
5G,UBB, AI,
IoT, Security,
Analytics,
(Platforms
and Services)
CONNECTED
WORLD
UBB
networks

3. 3
45.8 Bn.
2007
Telco Industry - Return on Investments
2007-2017
2007 20172010 2014
0
100
200
150
50
-1.7%
Cagr
2007-2017
-3.5%
4.1%
6.7%
Europe Telecom
Global Telecom
S&P Global BMI Index
S&P Europe BMI
Index
Telco Industry in Italy
2007-2016
Total
Revenues
- 30%
2016
31.9 Bn.
16.8 Bn.
2007
Ebitda
- 29%
2016
11.9 Bn.
16%
2007
Investments /
Profits
+ 4 p.p.
2016
20%
Source: S&P Capital IQSource: ASSTEL

4. 4
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Spending on Telco Services
- Italy
202x
5G
~ -10 Bln € *
Offer
Enrichment
New 5G services
MKT Demand
Growth
18,9 17,6 19,1
Telco
Investments
Italy*(€ bln)
‘08-’10 ‘11-’13 ‘14-’16
14,5
%
15,5
%
20%
Investments/Revenues
Telco Italy* (%)
Increased productivity
GDP increase
Digital Knowledge
** 5G Market Italy - 2026 (Share of Value). Source: Arthur D. Little data, 2017* Excluding license fees – Source : Asstel

5. 5
Health: predictive and customized
medicine, robotic surgery
 Quality of life
 Customized care
 Biometric remote
monitoring
 Medical records in
the Cloud
At home: Security and entertainment
 Security and
Automation
 New
Entertainment
Models
 Reliability, Security
and Comfort
 Collaboration &
Entertainment
Mobility: connected car
 Automation
 Security
 Productivity
 Competitiveness
 Security
 Sustainability
 Quality of life
 Energy saving
Smart city: services to
citizens and sustainability
At work: a new Industrial sector more efficient and sustainable

6. 6
eMBB
(enhanced Mobile Broadband):
from 2019+
mMTC
(massive Machine Type
Communication):
from 2020+
uRLLC
(ultra-Reliable Low Latency
Communication):
from 2023+
 UHD + VR/AR live video in mobility
 5G to home (Fixed Wireless Access)
Improve user experience data
rate and reduce cost/GB
Challenges
Evolving NB-IoT to 5G IoT
and new business models
Strong & exclusive value
proposition for enterprises
 Attractive 5G Devices availability
 Data traffic monetization
 Smart cities, Public Utilities
 E-Health, Industry 4.0
 Low cost devices availability
 5G IoT uptake to gain ROI
 Industry 4.0 & Automotive
 Public Safety
 Massive coverage deployment cost
 Laggard Verticals (low expertise and huge
investments)
Challenges Challenges
Service Scenarios Service Scenarios Service Scenarios

7. 7
TIM is rolling out 4 big programs to test and develop 5G in Italy: We aims to be the market leader in the new mobile
ultra-broadband paradigm
«5G for Italy» program 5G MISE TrialTurin 5G
MAY 2016 MARCH 2017 NOVEMBER 2017
TIM first in Italy to set up a
business partnership platform
to develop 5G vertical
ecosystems and service use
cases
• TIM (in partnership with
Huawei and Fastweb)
5G pre commercial trial
in Bari & Matera Area
@3.6GHz
• Agreement with Turin
Municipality
• Turin will be the first ‘5G
powered’ town by TIM
• Focus on Smart
City/Automotive UCs
5G San Marino
San Marino
5G
• The Republic of San Marino
will be the first state of
Europe - and one of the first
in the world - to have a 5G
mobile network
• Focus on Smart City and e-
tourism UCs

8. 8
Use Cases
WHY
Building a "permanent 5G laboratory" designed for the
needs of the Public Administration, Industry and citizens
of Bari and Matera
Experimenting innovative and scalable network and
service solutions to be replicated on the national territory
Promote the digital acceleration of the Lucanian/Apulian
territory, enhancing the specificities of the local places
WHAT & WHEN
Demonstrating 10 application areas with over 70 usage
scenarios: start in June 2018
Realizing a full coverage of Bari and Matera by end of
2019
MEDIA - VR
Video distribution
and production
MOBILITY
Assisted driving,
logistics
INDUSTRY 4.0
Operation,
production chain
SMART CITY
Mobility &
monitoring
TOURISM
Virtual Presence,
Augmented Reality
SMART PORT
Security, Logistics
SANITÀ 4.0
Remote diagnostic,
hospital e-learning
PUBLIC SAFETY
Security,
supporting Police
SMART
AGRICULTURE
Precision farming
ENVIRONMENT
Smart Environment,
Smart Infrastructure

9. 9
 Cloud Robotics: real time process control, robot
automation & security
5G
WHO WHAT WHY
 Smart Agriculture: Connected Vineyard to manage and
monitor pruning and fertilization process using a remote
app (Agri Robot Zucchetti)
 Industry 4.0 paradigm enablement: ‘
The Factory of the future’
 Enablement of Drones usage in
mission crital scenarios
 IoT: Connected drones in 5G for remote real time pilot and
monitoring (bridges/railways & public safety)
 Smart Logistics: Real time control and automated
management of logistics in Livorno’s Harbour
 Enhancement productivity efficiency
and cost optimization
 Enhancement security and
management efficiency
Privacy & Security are critical factor for all UCs, expected to be technically strengthened by scalable
identity management, distributed authentication and network slices mechanisms

10. 10
Adequate
Regulatory
Environment
Enrichment
of the Offer
New Profitable
Use Cases
Growth in
Demand
Privacy and Security harmonized rules are the
right combination for an enriched offer and a
wider sustainable demand growth of profitable
5G use cases
Rules
Harmonization
An adequate regulatory approach is a
necessary prerequisite for a full
development of all 5G opportunities

11. 11
March: Private information of 87 million Facebook users
(more than Germany population) was shared with data
analysis company Cambridge Analytica
April: Rumors on possible launch by Facebook of
Cryptocurrency
$
27 MARCH 18:
16 MARCH 18:
11 MAY 18:
$$
A true level playing field with OTTs is a
necessary prerequisite for a full
development of all 5G opportunities …
But it is still to come
Given the actual framework, a light
regulatory approach for 5G is
necessary in order to regain trust –
otherwise, it will be a missed
opportunity

12. 12
 5G is at the moment a work In Progress but is entering in the live use cases test on field
 There is an issue of Infrastructures and Open Collaboration, while the complexity of the new
scenario will bring to new business models
 Privacy will be a crucial factor for services like eHealth, and new services and devices must be
designed with privacy requirements already embedded
 5G a huge opportunity, provided that a level playing field will be ensured for all the players on
the pitch  Today OTTs and Telcos are not playing with the same rules, and “Self Regulation”
will not work

13. 13
Thank You