Company Profile TIM - ENG

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Digital life
and society
Company profile

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TABLE OF CONTENTS
HOW TO FACILITATE THE ACCESS TO KNOWLEDGE AND THE WEB FOR EVERYONE,
OVERCOMING INFORMATION ASYMMETRIES AND THE DIGITAL GAP?
INCLUSION
HOW CAN WE STREAMLINE AND MAKE DEALING WITH HEALTH CARE, WORK, MOBILITY,
SCHOOL, PAYMENTS, AND THE CIVIL SERVICE EVERY DAY MORE EFFICIENT?
SMART LIFE
WHAT IS THE CONTRIBUTION OF BUSINESSES TO THE ECONOMY, SOCIETY AND THE
ENVIRONMENT? WHICH VALUES DO THEY BRING IN THEIR OPERATIONS?
TRUST
WHY SHOULD WE INVEST IN A COMPANY? WHAT GUARANTEES DO WE HAVE IN A
MARKET INCREASINGLY DRIVEN BY GLOBAL FINANCIAL DEVELOPMENTS?
SOLIDITY
HOW CAN WE GUARANTEE THE PROTECTION OF THE DIGITAL IDENTITY AND
PERSONAL DATA AS PART OF AN INCREASINGLY MULTI-CHANNEL MODEL?
SECURITY
HOW CAN PEOPLE STRENGTHEN THEIR SKILLS AND ACHIEVE
PROFESSIONAL SUCCESS? WHAT ARE THE JOBS OF THE FUTURE?
SKILLS
HOW CAN WE GO FROM A SERVICE-FOCUSED APPROACH TO ONE BASED
ON VARIOUS FORMS OF CONVERGENCE?
INTEGRATION
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6
10
15
19
24
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Find out more online: telecomitalia.com/company-profile/eng

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IN THE FUTURE, REGULAR ACCESS TO THE INTERNET AND INFORMATION
WILL NO LONGER BE A BENEFIT OF DEVELOPED ECONOMIES,
BUT A BASIC RIGHT JUST LIKE CLEAN WATER.
World Economic Forum 1
INCLUSION
n recent years, governments and institutions have been making
broadband a priority. Broadband connections positively contribute
to economic growth in terms of both employment and productivity
gains, boosting social inclusion and public engagement. As part
of its digital inclusion plan, the Broadband Commission2
approved 5
strategic targets:
I
MAKING BROADBAND POLICY UNIVERSAL
MAKING BROADBAND ACCESSIBLE TO EVERYONE
CONNECTING HOMES TO BROADBAND
GETTING PEOPLE ONLINE
ACHIEVING GENDER EQUALITY IN ACCESS TO BROADBAND
1.
2.
3.
4.
5.
Against this backdrop, institutions and technology companies are co-operating to guarantee all of us the right
to digital citizenship and achieve the goals concerning digital connectivity and literacy set out in national and
international digital agendas.
IT IS POSSIBLE TO BRIDGE THE DIGITAL DIVIDE BY:
• expanding broadband throughout Italy: currently, as a result of a project launched in 2006, basic broadband
reaches 99% of the country
• making a systemic effort to develop infrastructure as well as the technological expertise and skills to effectively
meet the constantly growing demand for digital life.
BY THE NUMBERS3
3.2 BILLION
PEOPLE ONLINE (43% OF
THE WORLD’S POPULATION)
57%
OF THE GLOBAL
POPULATION WITHOUT
ACCESS TO THE WEB
794 MILLION
FIXED-LINE BROADBAND
CONNECTIONS
3.46 BILLION
MOBILE BROADBAND
CONNECTIONS
60% of disadvantaged people use
the internet
15% of the population has never
used the internet
52% of disadvantaged people use
the internet
of the population has never
used the internet
TARGETS OF THE 2015 DIGITAL AGENDA FOR EUROPE ITALY IN 2015
28%
75% of the population regularly
uses the internet
of the population regularly
uses the internet
TARGETS OF THE 2020 DIGITAL AGENDA FOR EUROPE ITALY IN 2015
63%

3
he web is the backbone of an innovative system in which we, with our everyday needs, represent the
nervous centres fostering its development and growth.
Mile after mile, the Group upholds its commitment to cover the entire country with next-generation
broadband and ultrabroadband networks, enhancing the technology and performance of both
fixed-line and mobile connections.
Our coverage of Italy
ADSL
98.2% of the population
NGAN:
12.4%of homes
4G:
49%of the population
Municipalities served by 4G: 621
7.7% of total municipalities
ADSL
98.6% of the population
NGAN:
28.1% of homes
Municipalities served by NGAN: 131
4G:
77%of the population
Municipalities served by 4G: 3,013
ADSL
99.1%of the population
NGAN:
42%of homes
Municipalities served by NGAN: 772
4G:
88% of the population
Municipalities served by 4G: 4.778
T
THE VALUE OF ACCESS
2013
2014
2015
For TIM, being an investment-focused company means pledging up to 12 billion euros over the next 3 years to
help Italy grow-including nearly 7 billion euros for innovation.
Being a strategy-oriented company means setting for ourselves the goal of extending fibre-optic infrastructure
to approximately 84% of the population and the mobile LTE network to 98%. In March 2016, 45% of
Italian households was served by fibre-optic infrastructure and 92% of the population by the 4G network.
2015 Next Generation Access Network Infrastructure
MILION MILLION KM OF FIBRE-OPTIC
ACCESS AND TRANSPORT NETWORK
STATIONS TO PROVIDE
FIBRE-OPTIC ACCESS
NUMBER OF ACTIVE FTTC
CABINETS
10.4
44,984
1,105

4
INCLUSION
Telecom Italia Sparkle opens a next-generation Data Centre in
Palermo, but also something more. Sicily Hub is a gravitational
centre for IP traffic between Europe and North African,
MediterraneanandMiddleEasterncountries.SicilyHubiscloser
to Africa and the Middle East than any other European peering
point and is connected with all the international undersea
cable that land in Sicily and transport data between Asia, the
Middle East, and Europe. It is an international interconnection
marketplace that will allow customers to connect directly with
content providers.
We have replicated this model in Brazil, where Tim Brasil now boasts the most 4G coverage, contributing
to the progress of a great and complex country and striving to boost social inclusion through projects often
related to education.
122 POINTS-OF-PRESENCE
74 CITIES IN 37 COUNTRIES
69,000 KM OF FIBRE-OPTIC
CABLES IN EUROPE
36,000 KM OF FIBRE-OPTIC
CABLES IN AMERICA
10,800 KM OF UNDERSEA
CABLES IN THE MEDITERRANEAN
450,000 KM OF UNDERSEA
CABLES ACROSS THE WORLD
•
•
•
•
•
•
MILLION
MOBILE LINES
66.2
MOBILE CARRIER
IN BRAZIL IN
TERMS OF 4G
COVERAGE
1ST
OF THE URBAN
POPULATION
SERVED
59% CITIES SERVED
BY 4G
411 BILLION REAIS OF
INVESTMENTS IN
2016-18
UP TO
14
Technological progress is a slow and multi-stakeholder process that benefits from maintaining a constant
synergy with local communities. Investing is not enough-we need to foster a culture of innovation by
encouraging people and giving them opportunities to learn and make projects. Cases in point are the ongoing
co-operation with Italy’s Local Administrations (Italia Connessa project), the projects in partnership with
Central Government bodies (the Italian Ministry of Education, University and Research - MIUR), and the
sharing of Open Data (the Netbook).
Tackling the goals set in the Digital Agenda from the ground up by involving small- and medium-sized
communities, such as Municipalities with up to 51,000 residents. The TIM Comuni Connessi contest rewards the
municipalities that present the most innovative digital projects with early investments in fixed-line and mobile
NGN infrastructure.
ITALIA CONNESSA,
small scale and broad outlook
APPROXIMATELY 200 MUNICIPALITIES INVOLVED
3 WINNERS
7 AWARDED
•
•
•YEARS
3IN
}
/ TIM BRASIL 2015

5
We can promote innovation and a country’s progress through strong schools and by disseminating culture.
In keeping with this vision, we are contributing to initiatives promoting digital literacy.
In Italy
As part of the process for digitising schools-
currently, in Italy there is 1 device for every 8
students4
-TIM, in partnership with the Italian
Ministry of Education, University and Research
has come up with a project to teach students and
teachers how to use digital technology.
22 million social reach
4initiatives
For students: online safety, coding, and using Social
Networks creatively. For teachers: educational tour
of digital and new technology
185,000 video views
233,350 page views
CULTURE OF INNOVATION
EducaTI
In Brazil
Expanding professional and technological education
is a priority for the Brazilian government. TIM
Brasil is addressing this challenge with a distance
learning platform modelled after MOOCs (Massive
Open Online Courses). The courses are available
for free to all high school and vocational school
students.
16,626 registered students
17 courses published at December 2015
20,000 students served
partnerships with 15Brazilian federal institutions
7 MOOC platforms already published in
partnership with federal institutions
TIM TEC
We have embraced the concept of “sustainable technology” as a gateway to art and culture-capable of
enhancing social empowerment, and a powerful instrument for collective sharing.
Science is for everyone, innovation is for everyone:
9 Lectures on Progress
Lectures on Progress is an initiative of the TIM Foundation
• 129 PROJECTS SINCE 2009
• 2.8 MILLION EUROS CONTRIBUTED IN 2015
• 2008 LAUNCH YEAR
• 14 PROJECTS IN 2015
PAPPANOINWEB:
great classical music on the web
5
YEARS
19
CONCERTS IN LIVE
STREAMING
200,000OVER
VIEWS
>24
HOURS OF
CONCERTS
15
LISTENING
GUIDES
4IN 2016
NEW CONCERTS
AND LISTENING GUIDES
3
EVENTS IN 2015
1.5
MILLION FB REACH
ON AVERAGE PER
LECTURE
6,000
VIEWS
6
IN 2016
2
CITIES
INVOLVED
1,500
PARTICIPANTS
2.2
MILLION TW REACH
ON AVERAGE PER
LECTURE

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DIGITAL OR NON-DIGITAL, IT IS MAINLY A QUESTION OF CONTENT-EXPERIENCE. THE
REAL CHALLENGE IS PROVIDING CUSTOMISED AND STIMULATING EXPERIENCES THAT
CAN BE SHARED. THE MODERN CONSUMER TAKES THE PROLIFERATION OF CONTENT
AND ACCESS DRIVEN BY DIGITAL TECHNOLOGY FOR GRANTED, AND TRIES TO HARNESS
ITS POTENTIAL IN TERMS OF FLEXIBILITY AND FREEDOM.
PwC 5
INTEGRATION
he technological convergence between fixed-line and mobile
connectivity under an “ALL-IP” framework is driven by the
demand from consumers and businesses to stay connected
anytime and anywhere. Since in the sharing economy the
consumption of digital content is based on the notion of access, rather
than ownership, the concepts of sharing and relationship are taking on
increasing importance. Finally, a third substantial change concerns the
strong personalisation of ICT services. It is a true on-demand economy,
based on the demand for high-quality content that can be flexibly accessed
from multiple devices.7
T
1 OUT OF 3 ITALIANS CONNECT TO THE INTERNET THROUGH FIXED-LINE
BROADBAND CONNECTIONS
18.6% OF HOUSEHOLDS HAVE ONLY MOBILE BROADBAND CONNECTIONS
(+12% FROM 2014)
11.5% OF HOUSEHOLDS HAVE MOBILE AND FIXED-LINE BROADBAND
CONNECTIONS (+10% FROM 2014)
1.
2.
3.
BY THE NUMBERS6
By 2018, spending to access content is expected to overtake ownership-spending globally9
.
-8.4%
global spending on buying content
(physical home video, physical recorded
music, and digital downloads) in 2014
+31%
global spending to access content
(digital video and audio streaming)
in 2014
94.4% OF COMPANIES WITH AT LEAST 10 EMPLOYEES USE FIXED-LINE OR MOBILE BROADBAND CONNECTIONS
60.7% OF COMPANIES USE BOTH FIXED-LINE AND MOBILE CONNECTIONS
70.7% OF COMPANIES HAVE A WEBSITE
15.5% OF COMPANIES USE E-INVOICING
10% OF COMPANIES SELL ONLINE
29.6% OF COMPANIES USE SOCIAL MEDIA FOR MARKETING PURPOSES
1.
2.
3.
4.
5.
6.
Digital transformation of Italian SMEs10
Citizens and the ICTs8
71%
OF ITALIAN INTERNET USERS
USED THE WEB TO ACCESS
CULTURAL CONTENT IN 2015
26%
OF THE POPULATION
SHOPPED ONLINE
25.1%
OF ITALIANS CONNECTED
TO THE INTERNET TO
WATCH MOVIES IN
STREAMING
1/3
OF USERS OVER 15 USED
CLOUD SERVICES TO STORE
DOCUMENTS, PICTURES OR
OTHER FILES

7
t TIM, we meet the growing demand for integration and personalisation from both individuals and
businesses with innovative broadband and cloud services and solutions-modular packages that
can be tailored to the stage of digital development of the consumer or company.
Technological convergence goes hand in hand with the integration
between media and telecoms. This trend has now entered a new era
characterised by the increasingly close ties between TV publishers,
digital platforms, and IT networks. The separation between
networking (content transport) and multimedia services (content
offering) has increasingly blurred. Conventional broadcasters no
longer play a predominant role, but rather co-exist with several
different players, spawning partnerships that benefit consumers in
terms of the quality and performance of the services.
Online video distribution and TV is indisputably the greatest
success story.
A
DIGITAL PLATFORMS AND CONTENTS
TIM in 2015 by the numbers
A fully dedicated kit for SMEs including integrated communication services, connectivity, advanced ICT
and IT services based on Cloud services provided by NuvolaStore.
TIM IMPRESA SEMPLICE
EACH MINUTE, NETFLIX
SUBSCRIBERS STREAM 77,000
HOURS OF VIDEO AND YOUTUBE
USERS UPLOAD 300 HOURS
OF NEW VIDEO.
11
VIDEO ALREADY ACCOUNTS
FOR 50% OF MOBILE DATA
TRAFFIC, AND WILL RISE TO
70% OVER THE NEXT 5
YEARS.
12
IN THE UNITED STATES, VIDEO
AND MUSIC ALREADY ACCOUNT
FOR 70% OF IP TRAFFIC.
13
MILLION TIM MOBILE
CUSTOMERS IN ITALY, INCLUDING
11.5 MILLION BB MOBILE USERS
30
MILLION FIXED-LINE RETAIL
CONNECTIONS IN ITALY, INCLUDING
7 MILLION BROADBAND CONNECTIONS
11.7

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SALE OF DIGITAL
SERVICES
THROUGH DIGITAL PROCESSES
MANAGED JOINTLY WITH
CONSUMERS
THROUGH THE DEVELOPMENT
OF NETWORK PLATFORMS
IN AN OPEN ECOSYSTEM
WITH ALL IP CLOUD BASED
ARCHITECTURE
THROUGH ULTRABROADBAND
ACCESSES
Against this backdrop, several conventional telecoms service providers are revising their positioning and
business model in light of social and consumption trends, and have started on a journey towards the
distribution of even premium digital content on customisable platforms.
The convergence between media and telecoms is pushing the market towards new production structures,
promoting cross-sector partnerships throughout the value chain.
TIM has taken this path as well: from commercial bundle offers including internet connections, services and
content, to the creation of integrated and “open” digital platforms that can host premium contents from
other digital entertainment providers.
DATA TRAFFIC
GROWTH
VIDEO IS
A KEY
COMPONENT
MULTI-CONNECTED
MULTI-DEVICE AND
MULTI-SCREEN
FOCUS ON THE
QUALITY OF THE
EXPERIENCE
CO-OPETITION WITH
COMPLEMENTARY
PLAYERS
DIGITAL TELCO
INTEGRATION
2015
> 8,000 TITLES
25 MILLION VIEWS
>500,000 SUBSCRIBERS
>120,000 e-BOOK
> 50 MAGAZINES
55,000 MEMBERS
25 MILLION SONGS
> 2 MILLION PREMIUM CUSTOMERS
> 200AVERAGE MONTHLY STREAMINGS
FOR USER
> 2,000 GAMES FROM
LEADING PUBLISHERS
240,000 MEMBERS
> 150 CHANNELS
60 HD CHANNELS
2,500 SKY ON DEMAND TITLES
THE TV ON BROADBAND
TIM Sky_Spectrum_2016.indd 1 15/01/16 12:16

9
2015 main partnerships
US MAJORS
Agreements with major content
producers and distributors (Disney, 20th
Fox, Paramount Pictures, MGM, Universal
Pictures, CBS) that, together with the
library of leading independent producers,
expand TIMvision’s offerings: thousands of
movies, TV series, and children’s television
programmes, including many that are
available exclusively for TIM customers.
The world’s largest online streaming
platform, with over 81 million
subscribers. Agreement for the
distribution of the service, offering
a massive library of original content
catering to digital consumers and
their habits.
POSITIVE COLOR VERSION
NEGATIVE COLOR VERSION
The agreement includes a selection of
over 70 movies of the last four years
and 200 movies from RAI’s library, as
well as 500 hours of TV series and
programmes per year. In addition, the
best RAI TV shows of the last 7 days
are available on any device, sorted by
original air date and time.
Besides ensuring a comprehensive on
demand offering, the agreement also
brings 22 live TV channels to TIM’s
ultra-fast network, including the best
of Serie A TIM and Champions League
matches available exclusively for TIM
customers until 2018.

10
IT COULD BE THAT THE EARLY PART OF THE 21ST CENTURY IS SEEN AS THE ERA
WHEN SYSTEM-WIDE CONNECTIONS CHANGED THE ECONOMY AND OUR WAY
OF LIFE MORE PROFOUNDLY THAN WE REALIZED AT THE TIME.
SMART LIFE
n developed countries, the concept of “digital life” and the digital needs for convergence and multichannel
models are now comparable to their conventional counterparts; the Internet of Things(IoT) is blurring the
line between the real and the virtual.
“Internet of Things” means the transformation of several sectors, industries and lifestyles driven mostly by the
interconnections between all manner of objects, processes and systems. The goal is turning every kind of object,
including those not intended to be digital, into an internet-connected device that can benefit from the features
of products designed for the web:
monitoring: the object can serve as, or be equipped with, a sensor, generating information about itself or its
surroundings;
control: objects can be remote controlled.
Over nine billion devices are expected to be connected in Smart Cities around the world by 2020. By then, the
installed base of the Internet of Things will reach 25 billion units.15
I
•
•
BY THE NUMBERS
The sheer number of possibilities stemming from the ability to monitor and control objects has spurred a wave of
innovation and enthusiasm. IoT applications could dramatically change the way we interact with the environment.
Some examples are thermostats, light and humidity sensors, wearables (such as internet-connected bracelets
and watches), or environmental and territorial sensors.
Expected growth of IoT installed base in Smart Cities (millions of units) 16
55.7 82.6
Sectors
Health Care
Public Services
Smart Commercial Construction
Smart Housing
Transport
Utilities
2015 2016 2017 2018 2019 2020
9.7 15 23.4 36.4
97.8 126.4 159.5 196.9 238.2 283.2
206.2 354.6 648.1 1,182.4 2,079.7 3,428.8
294.2 586.1 1,067.0 1,803.4 2,888.1 4,420.6
237.2 298.9 371 450 540.4 643.8
252 304.9 371.1 453.2 553.8 674.7
Other 10.2 18.4 33.9 60.7 103.5 166.4
Total 1,107.3 1,704.2 2,674 4,183 6,459.3 9,700.2

11
ven in Italy, the Internet of Things is starting to have a positive impact on everyday life, changing the
way people behave and relate to others in the urban environment, the workplace, at school, when
dealing with the Civil Service, and at home too. From “digital consumers” that passively accept
technology we are turning into “digital citizens”, using it consciously and creatively.
As a company, we support the acceleration of the digitisation process and the development of a digital
citizenship by providing smart services in several sectors.
E
OUR FUTURE IN THE DIGITAL LIFE
Digitising schools is a strategic priority-so much so that it is one of the key items of the education reform
“La Buona Scuola” and the Italian digital agenda.
First, we must equip school buildings with enabling infrastructure, i.e. the internet and web-connected devices.
But that is not enough: without widespread digital literacy, it is not possible to fully harness the advantages
offered by new technology.
Digital School
We have long been investing in this area and contributing to its transformation, offering solutions that can
generate new opportunities and help change teaching practices.
The Digital School Kit addresses four types of needs:
INTERNET CONNECTIVITY, EITHER WIRED OR WIFI, AND NETWORK SECURITY;
EDUCATION SOLUTIONS SUCH AS APPLICATIONS INTEGRATED WITH E-COMMERCE STORES FOR SCHOOL
EBOOKS AND LEARNING MANAGEMENT SYSTEM SOLUTIONS
MANAGEMENT SOLUTIONS, SUCH AS THE CLOUD ELECTRONIC CLASS REGISTER,
DEVICES FOR CLASSROOMS AND STUDENTS, SUCH AS INTERACTIVE WHITEBOARDS, PCS AND TABLETS.
•
•
•
•
ITALIAN SCHOOLS BY THE NUMBERS17
OF CLASSROOMS CONNECTED
TO THE WEB (THROUGH WIRED
OR WIRELESS CONNECTIONS)
NEARLY 70% 41.1%
OF SCHOOLS HAVE OVER 10
COMPUTERS OR MOBILE DEVICES
FOR TEACHING PURPOSES
41.9%
OF CLASSROOMS
HAVE INTERACTIVE
WHITEBOARDS

12
Civil Service
E-Government services can make Italy’s Civil Service (Pubblica Amministrazione, PA) more efficient, offering
simpler and faster solutions to the public and reducing the costs of red tape.
The digital identity of individuals and businesses is key to the digitisation of the PA.
Previously, citizens had to use a different account for each service. Now, with the Digital Identity Public System
(SPID, Sistema Pubblico di Identità Digitale), they have a single digital identity for online school, banking, health,
social security, and e-commerce services. TIM is spearheading this change through its role as manager of SPID
digital identities (TIMid).
Concerning health care, the services that improve the quality of care and hospital management allow to remotely
perform several operations and streamline the communication between doctors and patients.
The goal is making health care more efficient and personalised.
Our e-health services, designed for all facilities at national, regional, and local level include:
the management of health care processes;
the co-ordination of operations control centres;
digital medical records;
health care telemonitoring.
•
•
•
•
TIMlab, TIM’s research centre, has developed the Smart Aging platform in partnership with the University
of Bari and Sapienza University of Rome. The platform processes the data gathered by medical devices
and surveys to advance the prevention of cognitive decline in elderly adults. The project was tested at the
Institute of Oncology in Bari.
SMART AGING
Smart Working is an innovative model that leverages digital technology to make working and working hours
more flexible, thus improving the quality of life of employees as well as business productivity.
In Italy, we are seeing a growing interest in Smart Working. On the one hand, new law bills are encouraging the
adoption of smart working arrangements, and on the other, companies are ready to explore projects in this area.
We considered how we could support companies in their journey towards Smart Working with services
allowing to:
be on call anywhere, thanks to a single flexible number and the access to corporate services while on the go;
streamline communications with customers and promote collaboration among employees securely through
e-mail, fax, and texts;
curb travel costs by hosting high-definition videoconferences;
working more flexibly thanks to the integration of e-mail with unified messaging, web tools, and real-time
collaboration (virtual spaces to share information, instant messaging, web conferences, and sharing of
applications and documents).
Smart Working
•
•
•
•
SMART LIFE

13
In 2016, 21% of IoT’s total usage will derive from smart home applications, and this will be the fastest-growing
segment over the next five years (+24% in 2020).18
In a few years, home automation innovations will no longer be considered a luxury, but rather become part of
our everyday life. Wireless sensors and systems will be embedded into an increasing number of devices, and
homes will not just be interconnected-they will become integrated service environments that can enhance
comfort and security as well as curb energy consumption.
Smart Home
Currently, we offer the following for Smart Homes: security systems, such as cameras, motion sensors, alarm
systems, smart services for air conditioning and lighting automation, and boiler monitoring devices.
AUTOMATION
• Interacting with the washing
machine, dishwasher and fridge
remotely
• Updating oven settings via the
web
• Remote diagnosis of faults
ENERGY MANAGEMENT
• Smart home air conditioning
services
• Tips for saving and minimising
waste
• Remote detection of anomalies
LEISURE
• Video and music streaming
• On demand video services
HEALTH AND FITNESS
• Rehabilitation
• E-health services
• Remote diagnostics
SECURITY
• Alarm systems and
emergency services in the
event of intrusions
BROADBAND GATEWAY
• It orchestrates the
communication between
home devices
SHADING
• Automated shades for
temperature and lighting
control
MONITORING
• Cameras and sensors alerting
to any situation at home

14
Smart City
In 2050, over 75% of the global population will live in urban centres.19
Based on this scenario, urban development models have been increasingly shifting their focus to smart solutions
to reduce the impact of urban growth and improve the quality of life of citizens. “Smart City” means an urban
area in which all urban planning strategies are related to beneficial applications of new ICT technology.
In recent years, the Smart City has been taking hold also in Italy as a solution to urban problems, and this topic
has moved up on the agenda of Italian municipalities. In the last three years, 50% of municipalities with more
than 40,000 residents have launched at least one Smart City project, and three out of four municipalities say
they want to do it over the next 12 months.
Every day, several civil service bodies and private companies, in their journey towards the digitisation of the
services they provide to their community, choose our fixed-line and mobile network infrastructure, Data Centres,
cloud platforms, and IT solutions.
TIM contributes to Smart Cities to:
enhance security through video surveillance systems, installing Wi-Fi access points and cameras on public
street lights;
improve waste management by tracking urban waste disposal operations;
reduce the environmental footprint of buildings by remotely monitoring facilities, reporting gas leaks, flooding,
and power outages, and generating energy consumption reports;
prevent traffic congestion by managing public transport fleets, monitoring the use of parking spaces on public
streets, and managing traffic flows;
empower citizens to take charge of problems in their city by reporting incidents concerning safety, incivility and
urban neglect through apps;
monitor the community and the environment in real time through sensors for pollutants, noise pollution,
humidity, and temperature.
•
•
•
•
•
•
Joint Open Lab and Politecnico di Milano (Milan scientific-technological university) are testing technologies
for future smart spaces featuring special characteristics. The “Playful Supervised Smart Spaces” project is
an environment for children with special care needs, e.g. those suffering from autism.
PLAYFUL SUPERVISED SMART SPACES
SMART LIFE

15
WITHOUT AN INTENSE EFFORT TO PROTECT THE INTERNET, ONE AT LEAST ON
THE SCALE OF THAT WHICH SENT MANKIND TO THE MOON IN THE LATE 1960S,
THE POLITICAL, ECONOMIC, AND HUMAN POTENTIAL OF THE DIGITAL ECONOMY
MAY WELL GO UNREALIZED.
SECURITY
he opportunities for economic development associated with the
internet also bring new security challenges. The digital opening
to international markets makes IT systems more vulnerable
to attacks by criminals, hackers or terrorists seeking to disrupt
them to illicitly obtain personal or business information.
Developing new capabilities and instruments to improve Italy’s cybersecurity
is a national challenge of paramount importance for the sake and security
of individuals, companies, and the civil service. Several countries are
implementing national strategic plans that bring together the public and the
private sector, as well as the research community, to bolster the defences
of the “highly sensitive” infrastructure of governmental organisations,
companies and individuals against cyber attacks. The global IT security
market is expected to grow at an average annual rate of 7.9% from today
to 2019. 22
In recent years, the risk landscape has changed as computer criminals have
considerably stepped up their efforts not only in terms of quantity, but also
quality.
What can we do? In Italy, only 42.9% of companies connected to the
internet have formal ICT security procedures in place. However, Italy
ranks fourth in Europe on this measure, beating the European average by
nearly 11 percentage points (32%)24
Italian companies with an ICT security policy by sector
79.1% Telecoms
69.2% IT
68.0% Publishing
18.0% Catering
19.8% Postal and delivery services
T
•
•
•
•
•
BY THE NUMBERS23
24.2%
OF ITALIANS SAY THEY LOST
TIME AND/OR DATA BECAUSE
OF COMPUTER VIRUSES
5.9%
REPORT PRIVACY
BREACHES
54.3%
OF ITALIANS SAY THEY
DID NOT CONDUCT ANY
ACTIVITY ONLINE DUE
TO SECURITY CONCERNS,
SPECIFICALLY:
IN 2015
31.5%
DID NOT DISCLOSE
PERSONAL INFORMATION
ON SOCIAL NETWORKS
OR PROFESSIONAL
PLATFORMS;
23.8%
DID NOT CONDUCT ANY
BANKING TRANSACTIONS
OR MANAGE THEIR BANK
ACCOUNT ONLINE;
19.2%
DID NOT CONNECT TO
THE INTERNET THROUGH
A WIRELESS CONNECTION
ANYWHERE BUT HOME;
25.1%
DID NOT DOWNLOAD
SOFTWARE, MUSIC,
VIDEOS, GAMES, OR
OTHER FILES, NOR
BOUGHT OR ORDERED
GOODS.

16
NETWORK SECURITY
urrently, no product or software can make a system completely secure, therefore preventing all cyber
attacks is all but impossible. However, we can deploy a set of tools and skills that, by combining
different approaches and technologies, allow reducing the time it takes to identify attacks and stop
them in their tracks.
Within the Group, cyber attack prevention and mitigation are delegated to dedicated units, such as:
Security Lab: it assesses cybersecurity threats, analyses new risk scenarios, as well as identifies and develops
innovative solutions and tools and tests them in the lab to provide remedies and approaches to handle or
prevent potential risk situations, associated for instance with the adoption of new technology. The Security
Lab also maintains international relationships with standard-setting organisations, the open-source community,
academia, software vendors, and other players. In addition, it contributes to the European Union’s Cyber Security
research programmes.
Security Operation Centre (SOC): this is the actual monitoring centre that handles security alarms coming from
the telecommunication networks and Data Centres hosting TIM’s applications as well as those of our customers.
The SOC uses state-of-the-art tools and, most importantly, is comprised of IT security professionals with several
years of experience in managing and preventing IT incidents.
•
•
C
A prerequisite for fully exercising our digital freedoms in the internet age is being aware that the data we share
online is a crucial part of our identity, is invaluable, and must not be recklessly disclosed.
Public institutions will have to increasingly focus on protecting our digital identity and, more generally, online
security, making these priorities a reality at the national and European level. But how companies address these
issues is just as key.
TIM’s broad notion of “human rights” encompasses not only fundamental human rights, but also those inherent
to the information society, such as the right to access information, freedom of speech (especially online), and
privacy and online security-all important concerns for a TLC company.
In 2015, we adopted a Human Rights Policy to further reaffirm our commitment to making the respect of human
rights a prerequisite for all the company’s employees.
THE NEW RIGHTS OF THE DIGITAL AGE
SECURITY
2015 by the numbers
PROFESSIONALS
NEARLY 200 7,735
INCIDENTS HANDLED
(+32% VS. 2014)
124
GBPS WORTH OF DISTRIBUTED
DENIAL OF SERVICE ATTACKS
(116 GBPS IN 2014)

17
Global Cybersecurity Agenda
We contribute to updating the Child Online Protection guidelines of the ITU (International
Telecommunication Union) for the broadcasting, internet and mobile industries.
Global Trends in Online Safety: Creating a National Framework
We were the first in Italy to join the FOSI (Family Online Safety Institute). In September 2015, we were
among the organisers of the conference “Global Trends in Online Safety: Creating a National Framework”,
which allowed to share international best practices with high-profile stakeholders, including the European
Commission.
GSMA – Mobile Alliance against Child Sexual Abuse Content
We work together with the GSM Association, and specifically with the GSMA – Mobile Alliance against
Child Sexual Abuse Content, on all technological and communication initiatives to protect children in the
mobile industry.
•
•
•
The growing use of the internet, especially among
the young, implies a greater exposure to risks such
as “cyberbullying”, i.e. bullying that takes place
online.
In Italy, the attention to this problem has grown
considerably. The Ministry of Education, University
and Research has disseminated among all Italian
schools the new “Guidelines on anti-bullying and
cyberbullying”, and said that in 2015-2016 it will
continue acting as coordinator of Italy’s Safer
Internet Centre (SIC), which consists of a National
Consortium.
EDUCATION ON INTERNET SECURITY AND USE
22.2%
OF 11-17-YEAR-OLDS HAVE BEEN BULLIED
USING NEW TECHNOLOGY OVER THE LAST YEAR
7.1%
OF 11-17-YEAR-OLD GIRLS HAVE BEEN REPEATEDLY
HARASSED ONLINE (COMPARED TO 4.6% AMONG
BOYS)
NEARLY 7%
OF 11-13-YEAR-OLDS SAY THEY HAVE BEEN BULLIED
ONLINE AT LEAST ONCE A MONTH. THE PROPORTION
DECLINES TO 5.2% IF THE VICTIM IS AGED 14-17 YEARS.
CYBERBULLYING BY THE NUMBERS
As soon as in 2014, Istat25
reported the prevalence of
cyberbullying among the young:
Even the Italian National Police combats cyberbullying with public awareness campaigns and projects to help
promote online best practices.

18
At TIM, we consider the digital education of the young as crucial, and therefore we have prepared initiatives that
leverage their passions, such as sports or technology.
Football and volleyball tournaments for teens to promote the culture of sports and digital well-being, combating
any form of cyberbullying.
Junior TIM Cup - Volley TIM Cup
•
•
•
•
A nearly 7-hour marathon intended to introduce girls to coding and help bridge the technological skills gap
between boys and girls. The challenge is creating an App on cyberbullying and the safe use of the internet in just
one day.
#TIMgirlsHackathon
A short and intense project conducted between October and November 2015 featuring
ten Web Stars as ambassadors for the 10 rules for responsible internet use by children,
which were developed together with the Italian National Police. Each Web Star
interpreted one rule by posting an image on his or her social channel, inviting viewers
to share it. The website dedicated to the initiative includes also a section for scientific
discussion: ten real-life cases, each referring to one of the rules, commented by the
experts of the Italian Postal and Communication Police Service and Milan’s Minotauro
Institute. By the numbers: 14 million reach, nearly 11,000 shares and 178,000 likes on FB,
over 72,000 page views.
TIMWebRulez
2,953PARISH CENTRES INVOLVED
42,000 CHILDREN INVOLVED
NEARLY 20THOUSAND MATCHES
APPROXIMATELY 50MEETINGS WITH THE CHAMPION
210 PARISH CENTRES INVOLVED
36 MEETINGS WITH SERIE A1 PLAYERS IN SPORTS ARENAS
16 MEETINGS WITH STUDENTS IN SCHOOLS
5,600 YOUNG VOLLEYBALL PLAYERS INVOLVED
6,000 STUDENTS INVOLVED.
Volley TIM Cup 2014-2016 by the numbers
•
•
•
•
•
Junior TIM Cup 2012-2016 by the numbers
•
•
•
•
2 EDITIONS: 2015 and 2016
700 GIRLS
70 SCHOOLS
11 CITIES
BY THE NUMBERS
SECURITY

19
A BUSINESS’S LONG-TERM SURVIVAL AND SUCCESS DEPENDS
ON ITS ABILITY TO BUILD AND SUSTAIN TRUST.
PwC26
TRUST
oday, companies must be ready to meet the expectations of
those consumers that are socially responsible and concerned
with protecting the environment, such as the “Millennials”-
young people aged 18-30 years that do not trust big business
and disapprove of the concentration of wealth, and demand simplicity and
transparency in product and service offerings as well as communication.27
After years in which Italian consumers’ trust in businesses gradually declined,
in 2014 the trend reversed, and this continued also in 2015.29
Establishing a fiduciary relationship with customers is complex and becomes
a key strategic goal for companies, as showed by the commitment to, and
investments in, transparency policies, brand reputation, and Corporate Social
Responsibility.
T
BY THE NUMBERS28
80%
OF PEOPLE BELIEVE THAT
COMPANIES MUST HELP
ADDRESS THE NEEDS OF
SOCIETY (+6% 2015 VS. 2014)
60%
TRUST RATING
OF TLC COMPANIES IN 2016
(+1% 2015 VS.2014)
57%
TRUST RATING
OF ITALIAN TLC
COMPANIES IN 2015
(+9% 2015 VS.2014)
he logo is the first impression of a company: therefore, we decided to start from our brand to meet
the demands for quality, security and proximity. Those are the three pillars of our offering: we strive
for quality through technological innovation; ensure the security of data and individuals by making
the web reliable; and stay close to our customers by streamlining the user experience of our services
as well as contacts.
By simplifying and repositioning our brand architecture, TIM has become the one-stop-shop brand for fixed-line
and mobile communication services, internet services, digital content, and cloud platforms and solutions.
SIMPLIFICATION AND TRANSPARENCY
T
In 2015
MILLIONLETTERS
ANDMAILS SENT TO
CUSTOMERS
NEARLY 10 52,000
MAILS SENT TO TIM
EMPLOYEES
9,000
TECHNICIAN
UNIFORMS
BY 2016
156 NEW CONCEPT STORES
AND 1,700 SIGNS

20
The birth of the new TIM is a cultural and industrial shift that impacts the professional identity of thousands of
people. It is key that employees identify with the company’s values and feel represented.
The respect and care for our employees led us to overhaul the organisation of work inside our company,
expanding it with remote working arrangements and placing increasing emphasis on trust. We launched a
Smart Working project that encompasses all aspects concerning the flexibility of work, chief among them the
opportunity to work from home or satellite offices. We are also reimagining the workplace by equipping it with
state-of-the-art technology and several services to improve work-life balance.
Offering increasingly better working conditions requires a comprehensive vision ranging from the on-boarding
of new hires to training and development programmes, performance and leadership, career management,
compensation, values, and culture. In 2015, over 200 young new hires across Italy became our Employer Brand
Ambassadors, welcoming young students, i.e. potential candidates, to career days, telling their on-boarding
experience, sharing our initiatives on Social Media, and posting innovative video-selfies that showed a typical
day at work.
The digitisation and spreading of social media are dramatically changing the way consumers establish and
manage their relationships with brands. They demand attention and to interact directly with companies, as
well as fast and effective responses. This is why having a presence on new digital platforms and social networks
is increasingly seen as the future of customer support, care and loyalty.
65 million calls
11,000
Support - 187, 191, 119
people assisting retail
customers
68 offices in 59 cities
1,400professionals in 13offices
assisting large businesses
800,000
Social Network - TIM official
In the 4th quarter of 2015:
response rate: 99%
response time: 24 minutes
5th
on Social Baker’s global ranking
interactions
during the year
In 2015
TRUST
For the fourth year in a row, we obtained the international Top Employers certification,
which is only awarded to organisations that achieve the highest standards of excellence
in employee conditions.
We ranked 14th on the Best Employer of Choice ranking for 2015, moving up 18
positions and thus making the Top 20 of the companies preferred by young graduates.

21
The growth in FB and TW interactions from 2013 to 2015
Jan 13 Dec 15
4.2k2011
0
22,500
45,000
57,500
80,000
800k
2016
To maintain sustainable economic development, we need to shift our focus from speed to quality.30
The transformation of the way people relate to each other in the digital age is affecting both individuals and
companies. In the telecoms industry, the opportunities for discussion and collaboration among the various
players have grown in number and importance; above all, they will represent the way to improve service
quality and efficiency.
This is why we created in early 2016 a new equivalence model: a project to transform how we provide and
maintain access services for our copper and fibre-optic network, in order to ensure equivalence of inputs
between TIM and other service providers.
The goal is ensuring that our structures and those of other providers are treated equally. This is why
provision and maintenance operations will be carried out using the same organisational unit, processes,
systems, and databases. This will ensure a consistent level of transparency, service quality, response time
internally and externally, and flexibility.
A NEW EQUIVALENCE MODEL
By the numbers:
MONTHS: TIME REQUIRED
TO IMPLEMENT THE MODEL
18 120
MILLION EUROS IN
INVESTMENTS
NEARLY 60
QUALITY INDICATORS
MONITORED

22
OUR COMMITMENT TO SUSTAINABILITY
“The Fourth Industrial Revolution is also a values revolution”.31
Corporate strategies are increasingly oriented to creating “value” not only in terms of profits, but also by
striking a balance between the expectations of the different stakeholders.
The Corporate Shared Value model we have adopted is intended to help create shared value through all the
company’s operations as well as by designing and implementing projects that generate Business Value as well
as Social Value. The goal is enabling a digital ecosystem that meets the social needs of Italy in accordance
with the Italian Digital Agenda.
The CSV approach puts the demands of the community, the expectations of stakeholders, and the new role of
the company in society front and centre, building on the principle that we cannot achieve long-term economic
growth without improving social conditions and protecting natural resources.
The CSV model which consists of three strategic areas, also raises awareness inside the company about
Environmental Protection, allowing to adopt innovative and virtuous alternative solutions. For instance, in
2015 Shared Value measured as TIM’s internal energy efficiency totalled 25.5 million euros, thanks to
declining energy costs (Business Value) and lower CO2
emissions (Social Value).
The Information and Communication Technology (ICT) industry contributes to achieving the goals of the green
economy, which is part of the Italian Digital Agenda.
Consistently with European sustainability policies, we have promoted initiatives such as purchasing energy
exclusively from renewable sources, self-generating power, and adopting led lighting. For the next few years,
we have set ambitious goals to reduce our energy and environmental footprint.
Domestic Business Unit
Total power purchased and generated (GWh)
Power self-generated from co-generation (GWh)
Eco-efficiency indicator (bit/joule)
Reduction in CO2
emissions from the purchase and
generation of power (tonne)
2,071
130
4,707
697,500
2,015
151
5,300
680,000
1,974
151
6,100
680,000
1,925
151
7,250
680,000
2015
Results
2015
Target
2015
Target
2015
Target
€
17
An innovative model monitoring
and reconciling operating and
financial performance with social
progress
€
17
Multistakeholder approach,
definition of material topics and
CSV projects
€
17
3 strategic areas for intervention
to meet Italy’s needs:
• Digitisation, connectivity, and
social innovation
• Digital culture
• Environmental protection
€
17
17 projects carried out for a total
CSV of 12.44 bn euros up to 2015
TRUST

23
Our efforts to reduce our environmental footprint is reflected also in the products that end up in consumers’
homes. We have developed a line of “Green” eco-friendly products, certifying their environmental sustainability
and the benefits for users in terms of energy savings. For instance, the Green ADSL modems are designed to
automatically go into stand-by, thus saving at least 40% compared to the previous generation, all things being
equal.
TIM Brasil Biosite, Tim Brasil has launched the Biosite, a multi-purpose facility that improves data
transmission quality and can be used also for public lighting and video surveillance, consumes less energy,
and has a lower environmental impact, since it uses 99% less steel than a conventional station. Currently,
there are over 100 Biosites across Brazil, including in Rio De Janeiro, Brasilia, and 6 other cities. The goal
is adding 300 new installations in Rio De Janeiro for the 2016 Olympics.
Sustainability is also increasingly driving investment decisions. Markets acknowledge and reward Socially
Responsible Investments, characterised by low risk profiles, in the medium/long-term.
Being part of sustainability indices is an important achievement for companies, and
positively impacts their reputation.
In 2015, we made both the Dow Jones Sustainability World and Europe Indices for the
twelfth year running, and, for the second year in a row, the Climate Disclosure Leadership
Index (CDLI) of the Carbon Disclosure Project (CDP).
Evolution of financial markets
0
200
400
600
800
1000
1200
1400
Dec.
1999
158
June.
2001
249
Dec.
2001
278
June.
2003
311
June.
2004
352
June.
2005
375
June.
2006
388
June.
2007
437
June.
2008
537
June.
2009
683
June.
2010
879
June.
2011
886
June.
2012
884
June.
2013
922
June.
2014
957
June.
2015
1204
+26%
+29%
+27%
Cumulative number of SRI funds in Europe (at 30 June 2015)
Source: Vigeo (2015)

24
THE SHARING OF KNOWLEDGE AND INFORMATION, PARTICULARLY THROUGH
INFORMATION AND COMMUNICATION TECHNOLOGIES (ICTS) HAS THE POWER TO
TRANSFORM ECONOMIES AND SOCIETIES.
UNESCO – Building Knowledge Societies
SKILLS
igital skills are crucial for Italy’s economic, cultural and social growth, and represent a crucial part
of the Digital Agenda - which is key for the modernisation of Italy and its ability to compete in
international markets32
D
45%
OF HOUSEHOLDS IN EUROPE DID NOT ACCESS TO THE
INTERNET DUE TO A LACK OF SKILLS IN 2015.
40% OF THE EU POPULATION HAD AN INSUFFICIENT
LEVEL OF DIGITAL SKILLS IN 2014. 22% HAD NONE AT ALL.
32%
OF THE EU LABOUR FORCE HAD AN INSUFFICIENT
LEVEL OF DIGITAL SKILLS IN 2014. 13% HAD NO
DIGITAL SKILLS AT ALL.
We rank first in Europe and third in the world on R&D investments in the TLC industry, according to the EU
Industrial R&D Investment Scoreboard 2015.
Our role in fostering digital innovation is twofold: constantly updating internal skills in order to offer infrastructure,
products and services for the purposes of driving digital innovation. This is why TIM is on an all-encompassing
journey that combines conventional infrastructure Research and Development with a focus on digital and
service innovation through:
interactions with internal and external research centres to develop and scout for technology;
partnerships with Universities in both research and education;
the co-innovation process through start-ups.
All this is intended to develop skills that can meet increasingly sophisticated demands, developing ever more
competitive and innovative offerings.
1.
2.
3.
BY THE NUMBERS33
n an era of globalisation and growing technological complexity, the way businesses think of and develop
innovation has changed. Today, they must increasingly collaborate with external entities, rather than
conducting R&D only internally, adopting a fluid and open model for exchanging knowledge.34
I
A NETWORK FOR INNOVATION

25
Patents
3,143 REGISTERED PATENTS
33NEW PATENTS OBTAINED IN 2015
2nd EUROPEAN TELCO IN MOBILE PATENTS
Our Open Innovation model encompasses an ecosystem of players and knowledge, allowing us to develop
innovative ideas and bring them to market through several collaborative arrangements. The external Ecosystems
we tap into consist of startups, academic talent, and mature companies that engage to varying degrees in our
business, such as OTT (Over The Top) players and other telcos.
To foster relationships between research centres and the business community, we have created a “company
on campus” model to promote synergies between the two. This is a physical space (co-location) where the top
academic talents work with TIM employees to co-design and co-develop innovative solutions, expanding the
business in new directions.
*Dynamic and evolving model involving potential areas for collaboration and cross-pollination between partners
INTERNATIONAL
UNIVERSITIES
SUPPLIERS
VENDORS
STARTUP
ECOSYSTEM
PEERS*
UNIVERSITIES
BUSINESS SCHOOL

26
These Joint Open Labs (JOLs) live inside university campuses and work together with local business ecosystems
(Trento, Turin, Milan, Pisa, Catania) on specific areas of scientific and technological interest, consistently with the
company’s business strategy.
Joint Open Labs in 2015
8 main lines of research, each spawning a dedicated
joint open lab. From Big Data to Assisted Living,
from Technologies and services enabling “smart”
interactions between people and the environment
to Cloud robotics, from the Internet of Things to
Augmented Reality, and from social media to digital
transformation.
Another important innovation ecosystem is represented by startups-small, highly dynamic companies that in
Italy we support through TIM Ventures and TIM #Wcap, providing financing to accelerate their maturation and
time to market.
•
•
•
•
8JOLs
5 WORLD-CLASS ITALIAN UNIVERSITIES
10INTERNATIONAL PARTNER UNIVERSITIES
1.6MILLION EUROS IN MEASURED SOCIAL VALUE
•
•
•
27PATENT APPLICATIONS
30 PARTNERSHIPS WITH INTERNATIONAL
UNIVERSITIES AND RESEARCH CENTRES
7MILLION EUROS IN FUNDING FROM EUROPEAN
PROJECTS GRANTED TO TIM AND THE UNIVERSITIES
JOLs in the 2013 – 2015 period:
MILAN
TURIN
TRENTO
PISA
CATANIA
SKILLS
•
•
•
•
2014 START OF OPERATIONS
2015 13 INVESTMENT ROUNDS, INCLUDING 2 ABROAD
STARTUPS FINANCED: WIMAN, PEDIUS, ECO4CLOUD, CROWDWAY, EDO, INNAAS, UNFRAUD,
ARMNET, KOPJRA, OILPROJECT, CLOUDESIRE, MOLTIN, SHOPPIMON
600,000EUROS IN CLOUDESIRE, THE MOST RECENT INVESTMENT MADE IN 2015

27
The TIMLabs in Turin are the Group’s research centres. They have been operating for over 50 years now and
contribute to the creation of new patents, often by collaborating with leading Italian universities.
By the numbers:
A Foundry where technological innovation projects stem from a co-creation process between TIM and select
suppliers. The goal is leveraging the research of strongly innovative technological partners to pool knowledge
and bring new solutions to market as fast as possible.
•
•
437 EMPLOYEES HAVE PATENTED AT LEAST AN INVENTION OVER THEIR CAREER
>12,000 SQ M OF TILAB SPACE IN TURIN, ROME, TRENTO, NAPLES, AND MILAN
By the numbers:
•
•
•
•
2015 LAUNCH YEAR
FIRST SUPPLIERS - PARTNERS: HUAWEI, ERICSSON, INDRA, IBM
3-9 MONTHS PROJECT DELIVERY TIME
350 SQ M OF LAB SPACE TO TEST PROTOTYPES, INCLUDING WITH CUSTOMERS
from 2009 to 2015
•
•
•
•
•
•
8,000 BUSINESS IDEAS
268 PROJECTS SELECTED AND SUPPORTED
OVER 10 STARTUPS HAVE BECOME OUR SUPPLIERS
5.5MILIONI DI EURO ASSEGNATI
4,000SQ M OF OFFICE SPACE
4 ACCELERATORS (MILAN, BOLOGNA, ROME, CATANIA)
Since digital innovation does not stop at national borders, we are investing also in the scouting for startups
in those regions where innovation moves at a frantic pace, such as Silicon Valley and Israel. TIM’s world-class
leadership is reflected also in our chairing of international decision-making fora, where the most disruptive
innovations take shape. TIM is a vector for innovation, also thanks to the next-generation technological solutions
conceived, designed and tested in its Innovation Centre department.

28
SHARED KNOWLEDGE
We live in a “knowledge society” where knowledge plays a crucial economic, social, and political role. This
knowledge constantly feeds on research and innovation. Therefore, universities and research centres must
promote and apply the knowledge generated from their collaboration with businesses and other local
players.
At TIM, we have strengthened our relationships with leading Italian and international research centres and
universities, entering into more than 40 conventions and agreements, in order to promote talent, develop
new capabilities, and bring innovation into the Company. This is a two-way process that boosts our ability to
innovate as well as helps the young develop their skills, offering them the opportunity to gain new knowledge
and experiences.
TIM and Academia (2015)
•
•
•
•
•
•
•
APPROX 2.3MLN EUROS IN INVESTMENTS
MORE THAN 50 INTERNS
40 THESIS STUDENTS
OVER 100HOURS OF CLASSES taught by our internal experts at university campuses
2525 THREE-YEAR PHD scholarships granted in 2015. From 2011 until today: 165
4 SPONSORED MASTER’S PROGRAMMES: “Digital Life and Smart Living” and “Service
Management, Innovation and Engineering” with the Sant’Anna School of Advanced Studies,
“Master in Inventive Engineering” with Sapienza University in Rome. In 2016, the Master’s
Programme “Big Data in Business: discovering & leveraging for Value Creation” with the
University of Tor Vergata
“TIM CHAIR IN MARKET INNOVATION” at BOCCONI UNIVERSITY (2012-2017)
Among the new models for sharing knowledge, in 2016 the Company created TIM Academy in close synergy
with internal and external innovation and research observatories and centres. This is both a physical space,
with 17 locations, and a virtual space, consisting of a digital and social platform, for the Group’s nearly 53,000
employees in Italy. “Digital-social educators” and a broad community of employees transfer and share their
know-how and promote the digital skills required to support the company’s transformation and evolution in
the new technological, market and cultural scenario.
Our people in 2015
52,555 IN ITALY
AND 13,312
ABROAD
65,867 MEN
41,725
WOMEN
24,139
HOURS
OF TRAINING
2,498,571
HOURS OF
TRAINING PER
CAPITA
38
OF EMPLOYEES
HAVE PARTICIPATED
IN AT LEAST ONE
TRAINING ACTIVITY
89%
SKILLS

29
THE TLC INDUSTRY IS KEY TO ITALY’S DIGITISATION, AS IT HAS
THE NETWORK INFRASTRUCTURE ENABLING THE DEVELOPMENT
OF THE SO-CALLED DIGITAL ECONOMY.
TLC Italian Forum 2016
37
SOLIDITY
he consequences of the global economic-financial crisis and the
growing production capacity of several developing countries led
to a comprehensive revision of European industrial policies in
recent years.
In the aftermath of the crisis, Europe has been pushing the market towards
high-technology manufacturing-a fourth industrial age (Industry 4.0)
characterised by the significant impact of technology throughout the
production chain. Data, computing power, connectivity, and innovative skills
play an increasingly important role in the economic growth and stability
of Italy, bringing it into the Digital Economy. All international analyses and
studies forecast that GDP growth will rise steadily in those countries that
will seize the opportunities offered by digital technology.
T
BY THE NUMBERS
THE TLC INDUSTRY
ACCOUNTED FOR 20%
OF ITALY’S GDP IN 201435
THE TLC INDUSTRY
ACCOUNTED FOR 5,1%
OF ITALY’S TOTAL
INVESTMENTS IN 201436
THE DIGITAL ECONOMY WAS
WORTH 35BILLION EUROS
IN 2014, AND IS EXPECTED TO
REACH 50 BILLION EUROS BY 201737
THE DIGITAL ECONOMY GREW
BY OVER 10 BILLION EUROS
BETWEEN 2010 AND 201437
IN 2014, OVER 50%
OF THE DIGITAL ECONOMY
REFERRED EXCLUSIVELY
TO THE IT SECTOR37
n a challenging period for the Italian and world economies, we reaffirmed our role as a reliable strategic
partner to promote innovation in Italy, gaining the trust of institutional as well as other entities.
PARTNER FOR GROWTH
IIn the year just ended, the Corporate Reputation Index grew by 5 percentage points, reaching the highest level
in more than 10 years.
In Italy, during 2015 we invested approximately 3.9 billion euros, up 1.1 billion euros from 2014, continuing to
develop our infrastructure and enhance our network. In Brazil, we invested 1.3 billion euros, of which nearly 61%
in innovative infrastructure. The 2016-2018 three-year plan reaffirmed the Group’s commitment to innovation,
in both Italy, where we will extend our fibre-optic and 4G network, and Brazil, where we will bolster the 3G
network and become technological leaders in 4G coverage.

30
SOLIDITY
•
•
•
•
•
•
Domestic innovative investments (nearly 6.7 billion euros in cumulative investments over three years)
About 3.6 billion euros in Fixed Line Ultrabroadband (NGN)
About 1.2 billion euros in Mobile Ultrabroadband (LTE)
About 0.7 billion euros in Cloud and Platforms
About 0.5 billion euros in the Transition of the Network to All-IP
About 0.4 billion euros in Telecom Italia Sparkle
About 0.3 billion euros in the Commercial Development of the Fibre-Optic Network
In 2015, Telecom Italia Sparkle increased its revenues by 5.6% and made 109 million euros in investments,
considerably up from 2014 (+29%). 50% of this amount went towards upgrading the networks to meet
growing demand, 45% towards expanding the networks in developing geographies (Latin America, Asia and
the Middle East) and 5% towards innovative services.
The needs of an increasingly connected and digital Italy-as showed by the rise in data traffic in 2015: compared
to 2014, +37% on our fixed-line network and +45% on our mobile network-have inspired strategic decisions
focusing on investing in next-generation infrastructure as well as offering digital services.
TELECOM ITALIA GROUP:
PLAN UPDATE
2016 2018
INVESTMENTS*
IN ITALY
IN BRAZIL
TOTAL
INVESTMENTS }}
WITHIN
14 BLN REAIS
OF WHICH ABOIUT 6.7 BLN €
DEDICATED TO INNOVATION
(NGN, LTE, Cloud and Platforms,
Sparkle and Transformation)
MAINLY FOR THE
DEVELOPMENT OF NETWORK
INFRASTRUCTURE
3G AND 4G
DOMESTIC CAPEX
PLAN 12 BLN €
Becoming a Digital Telco and Platform Provider to offer world-class infrastructure as well
as digital content and services available on open and flexible platforms
Providing the best infrastructure and digital platforms
Being a lean and solid company committed to innovation
Maximising shareholder returns as well as shared value for all stakeholders
•
•
•
•
Strategic goals
*Excluding Domestic and Brazilian Frequencies.

31
In the current market scenario, which presents great challenges as well as significant growth opportunities, we
set for ourselves the following goals for the 2016-2018 three-year period:
Italy Brazil
•
•
EBITDA year-on-year stabilization
in 2016
EBITDA year-on-year growth in 2017
and 2018
•
•
Growing Revenue Share
Increasing EBITDA margin
We will accelerate our investments as showed above while maintaining a strong financial discipline and
identifying actions to boost efficiency, so as to reduce net adjusted financial debt below 3 times reported
EBITDA by the end of 2018.
We are ready to meet the growing demand for innovative digital services: on the one hand, by supporting Italian
businesses in their digital transformation through ICT and Cloud services, and on the other, by tackling the
transition from a conventional TLC provider to a Digital Telco & Platform Company. In accordance with the
2016-18 Strategic Plan, we will bolster our Multimedia Entertainment offering by distributing video, music,
publishing and gaming content.
ALSO THANKS TO
STRONG FINANCIAL
DISCIPLINE
FURTHER ACTIONS AIMED
TO REALIZE EFFICIENCIES
2018 NET DEBT/EBITDA REPORTED < 3X**
BY THE AND OF 2018
**Average and YE€/Real 2018: 4.6. Ratio includes Mandatory Convertible equity strengthening effect for 1.3 € Bln in November 2016, Argentina
Disposal (completed in March 8, 2016) Inwit Valorisation.
STRATEGIC FOCUS ON
MULTIMEDIA
ENTERTAINMENT
ICT
AND CLOUD

32
SOLIDITY
OUR RESULTS
After a protracted downturn, in 2015 Italy’s GDP started growing again, even if only by a modest +0.8%.
What we did in 2015 reflected positively on our share price. After reasing over 1 euro in late January, our
ordinary shares rose by 33.2%, while our savings shares climbed 37.1%. We clearly outperformed both the
European telecommunications index, which grew by 8.9% over the same period, and the Italian index, which
rose 12.7%. The Group’s market capitalisation increased from 16 billion euros at the end of 2014 to 20 billion
euros at 31 December 2015.
Telecom Italia Shares Italian Stock Market (FTSEMib index)
ordinary shares + 33.2%
savings shares + 37.1%
+ 12.7%
In 2015, our domestic business operations once again registered growth in mobile service revenue and early
signs of improvement in the historical trend of fixed-lines losses, thanks to the gradual increase in broadband
customers. This represents a solid foundation to achieve further progress in 2016. We strongly supported the
fixed-mobile convergence by distributing enabling devices and service bundles increasingly tied to fixed-line
and mobile ultrabroadband services to customers.
In 2015, we established INWIT (Infrastrutture Wireless Italiane), transferring the radio transmission equipment
for mobile telephone networks, both for Telecom Italia and other operators. In June, we successfully floated
40% of the subsidiary on the Italian stock exchange, raising 854 million euros, and started the still ongoing
process to sale a further part of the stake in the company.
Finally, in light of the favourable market conditions, we bought back nearly 3.8 billion euros’ worth of bonds,
refinancing our debts at lower rates and longer maturities. This will lead to a significant reduction in the cost
of debt.
Group Results in 2015
•
•
•
REVENUES: 19.7 BILLION EUROS, -4.6% ON AN ORGANIC BASIS COMPARED TO 2014
ORGANIC EBITDA (excluding non-recurring items):
8.1 BILLION EUROS, -4.5% FROM 2014
INVESTMENTS: 5.2 BILLION EUROS, +213 MILLION EUROS FROM 2014
Telecom Italia 2015 stock performance

INCLUSION
1
World Economic Forum - Deep Shift Technology Tipping Points and Societal Impact – September 2015
2
ITU and UNESCO Annual Report 2015, Broadbandcommission.eu
3
WEF, September 2015; WEF, September 2015; ITU, May 2015 ITU; May 2015
4
Italian Ministry of Education, University and Research’s Technological Observatory, 2014-2015 school year
INTEGRATION
5
Global Entertainment and Media Outlook – PwC 2015
6
Citizens, enterprises and the ICTs - Istat December 2015
7
Business of sharing, PWC 2015
8
9
Global Media Report 2015 – McKinsey 2015
10
11
Data never sleeps 3.0 – DOMO August 2015
12
Ericsson Mobility Report- November 2015
13
Business Insider UK – December 2015
SMART LIFE
14
World Economic Forum, Intelligent Assets Unlocking the Circular Economy Potential, December 2015
15
Predicts 2015: The Internet of Things, Gartner 2015.
16
Predicts 2015: The Internet of Things, Gartner, 2015. Note: Some column totals may not add up due to rounding.
17
MIUR – Statistical and research office, February 2015
18
Predicts 2015: The Internet of Things, Gartner, 2015
19
Forecast: Internet of Things, Endpoints and Associated Services, Worldwide, 2014
20
Observatory on Digital Innovation of Politecnico di Milano, April 2015
SECURITY
21
“How can we secure our data?”, Daniel Wellers World Economic Forum, 2015
22
Forecast Analysis: Information Security, Worldwide, 3Q15 Update”, Gartner, January 2016
23
“Citizens, enterprises and the ICTs”, Istat December 2015
24
“Citizens, enterprises and the ICTs”, Istat December 2015
25
“Bullying in Italy: offensive and violent behaviour among early teens”, Istat 2014
SOURCES

TRUST
26
Trust: the overlooked asset, PwC
27
“Millennials’ lifestyle: web, new media, startups and much more. The new players of Italy’s recovery facing
challenges” , Censis 2015
28
2016 Edelman Trust Barometer
29
2014, 2015, 2016 Edelman Trust Barometer
30
World Economic Forum Annual Meeting 2016
31
World Economic Forum, Annual Meeting 2016
SKILLS
32
2015 Strategy of the Italian Coalition for Digital Skills, March 2015
33
European Commission - Human capital: Digital Inclusion and Skills - Digital Agenda Scoreboard 2015
34
International Chamber of Commerce 2014 – The Open Innovation Model
SOLIDITY
35
AGCOM based on ISTAT data, 2015 Annual Report on the activity carried out and on the work programmes,
7 July 2015
36
Mediobanca Research Department, R&S 2015 Annual Report
37
ASSTEL, SLC/CGIL, FISTEL/CISL, UILCOM/UIL - Report on the TLC industry in Italy – 2015 Edition

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