TIM CEO Amos Genish reveals DigiTIM strategy and investment

TIM Italy and technology
TIM CEO Amos Genish today revealed the company’s DigiTIM strategy and growth plans including Capex.

As per the DigiTIM strategy, TIM focuses on investment in digital innovation for leadership in the Gigabit market targeting mobile and fixed line business.

TIM said it will be making investment in big data and analytics as part of strategy for the digitalisation of all processes to enhance the digital experience for customer engagement

in order to sustain the customer base and grab new growth opportunities.

Increase in digital engagement, grow the self-care App penetration to 85 percent and reduce human-operated interactions by 30 percent are the main targets of digital investments aimed at process improvement.

TIM said LTE penetration will increase from 76 percent to >95 percent.

TIM will tie up with Italian and international content companies for targeting 3-fold increase in TIMVISION customers from 1.3 million on fixed in 2017. TIM aims to grow the fixed broadband user base to over 5 million in consumer segment.

TIM wants to enhance attention on ICT business, focusing on fixed/mobile/IT convergence and broadband for business customers.

TIM aims to generate 25 percent of its total business revenue from ICT and Cloud by 2020. TIM will increase its fibre customer base by 3x. TIM said the Wholesale business will return to growth and improve efficiency with new digital and automation tools.

Broadband lines with OLOs are expected to increase from 1 million to about 3 million. TIM Brasil will focus on the migration of mobile post-paid from 17.8 million, representing 30 percent of the customer base.

Fixed residential UBB will reach 1 million fibre customers. 4G will reach more than 4,000 cities by 2020, accounting for 96 percent of the entire urban population.

Inwit will strengthen its leadership by increasing its customer base, reaching a tenancy of 2.1x customer per site, and deploying next generation infrastructure such as new 5G-ready sites with fiber backhauling and thousands of small cells.

Sparkle will focus on data services, taking advantage of market growth trends by integrating its portfolio with Cloud-based, data centre, network security and disaster recovery solutions, while also consolidating its offer for voice and mobile services. Sparkle will expand its infrastructure presence to 11 new countries.

Sparkle will dedicate 30 percent of Capex to expand infrastructure, virtualise and digitalise the network. TIM will use data analytics to improve investment efficiency by prioritising value-driven Capex and by leveraging the current broadband infrastructure.

TIM said the addressable domestic cost base will increase to around 80 percent of the total. Fibre coverage will reach 80 percent of households and 100 cities with FTTH, with 9 billion euros investment in Italy. TIM will keep over 50 percent of Capex in network expansion and innovation in Italy.

TIM Brazil will keep 12 billion reais Capex mainly targeting for broadband expansion. The Capex plans will improve in the Capex-sales ratio to < 20 percent by 2019 in the domestic business and to around 20 percent in Brazil by 2020.