Telecom Italia chief executive officer Flavio Cattaneo has recently revealed a three-year strategic plan to transform the telecom network operator.
Telecom Italia aims to grow revenues and EBITDA with financial discipline and efficiency focusing on maximizing the return on investments.
The telecom operator targets to establish TIM as a reference point in terms of quality in fixed and mobile services through an approach based on content, convergence, ICT services, innovation and customer proximity.
Highlights
# Turnover and domestic EBITDA to grow
# Capex / Group turnover ratio at the end of the 3-year period below 20%
# Ratio of adjusted net financial debt to reported EBITDA below 2.7x in 2018
Telecom Italia indicates that the technology company will be making investment of nearly 11 billion euros in Italy including around 5 billion for speeding up the development of the ultra-broadband networks in the home country.
TIM plans to enhance Italy’s coverage with new generation networks reaching over 99 percent of the population with the LTE mobile network and 95 percent of the population with optic fibre by the end of 2019.
Telecom Italia said 50 major towns and cities will have connection speeds of up to 1GB by the end of the Strategic Plan.
Telecom Italia will give focus on convergence and content, also thanks to the launch of national and international co-productions through TIMvision. This will strengthen the business model based on the best infrastructure and excellent customer services with an increased focus on the dissemination of premium digital services and content.
Telecom Italia will focus on content in order to boost revenue from mobile broadband, strengthened by the reach of its 4G network.
LTE customers are expected to account for around 90 percent of mobile broadband customers by 2019. Telecom Italia aims to offer 75 Mbps, with peaks of 500 Mbps – the first operator in Europe – in the main cities thanks to the use of carrier aggregation technologies.
Telecom Italia aims to stop losses in the fixed domestic segment by 2018 through the acceleration in the adoption of optic fibre. Telecom Italia will focus on Internet of Things (IoT).
The telecom operator said financial discipline and cash-flow generation will enable the Group to cut the ratio of adjusted net financial debt to reported EBITDA to below 2.7x in 2018.
The efficiencies expected by 2019 on the Opex and Capex amount to 1.9 billion euros, through three levers also aimed at increasing the cash-flow generation: cost optimization, streamlined organisation and process transformation.
TIM Brazil, by the end of the Plan 95 percent of the population, will offer 4G in nearly 3,600 cities – and convergent offers thanks to agreements with the main producers of premium content.
Baburajan K
