Telecom Italia management has presented its strategic business plan for the next two years, that is 2016 to 2018 to the trade unions. The information shared by the management to the unions reveals the operator’s investment program during years from 2016 to 2018 and is also based on what the operator could achieve last year.
Specifically, the plan presented by the CEO provides for investments in Italy close to 12 billion euros. An approximate amount of 6.7 billion euros will be exclusively dedicated to innovative technologies such as Next-generation networks, Long term evolution, Cloud and platforms, Sparkle, and Transformation).
Telecom Italia faces competition from its rivals in the Italian market and by investing to update and build new networks, the operator is all ready to take the driving seat of the development of infrastructure and in the digitization of the country. Telecom Italia says by the end of 2018 they expect to reach 84% of the population with fiber optics and 98% with the LTE (4G) mobile network’.
In detail, the innovative investments will be aimed at developing the fiber optic network, with an allocation of 3.6 billion euros, the expansion of the LTE mobile ultra-broadband network, for which 1.2 billion euros are planned, and the development of Telecom Italia Sparkle activities, to which around 400 million euros will be allocated over the three-year period.
The strategic focus of the new Plan will be on Multimedia Entertainment which includes activities in the field of Video, Music, Gaming, and Publishing, among others. Thanks to its ICT and Cloud services, Telecom Italia will also continue to support Italian businesses in their digital transformation process, with a differentiated approach depending on the customers’ characteristics.
TIM aims to accelerate the distribution of smart devices and to market bundle-offers that can generate a higher ARPU, even supported by exclusive agreements with device manufacturers. LTE customers are expected to account for around 70% of Mobile Broadband customers by 2018, thanks to almost blanket coverage of the country at 75 Mbps, with peaks of 300 Mbps in the eight main cities thanks to the use of carrier aggregation technologies.
In the Domestic Fixed segment, the Group plans to reduce the drop in customer numbers starting in 2016, tending to achieve equality by 2018, thanks to the acceleration in the adoption of fiber by customers, which in total – retail and wholesale – should reach 5 million in 2018 (1 million more than the previous Plan for the retail component), approximately 40% of the total number of Broadband customers.