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Telecom Italia beyond numbersInnovation for everyone

Company Profile 2013

2 | | 3TELECOM ITALIA BEYOND NUMBERS TELECOM ITALIA BEYOND NUMBERS

STRATEGY4

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TELECOM ITALIA FOR SOCIETY10SAFEGUARDING THE ENVIRONMENT

BRINGING ABOUT THE SMART CITY

BUILDING DIGITAL SCHOOLS

NURTURING TALENTS

CREATING DIGITAL HEALTHCARE

INTEGRATING DIVERSITY

SUSTAINING INTELLIGENT MOBILITY

SIMPLIFYING PAYMENTS

CONTRIBUTING TO THE DIGITAL AGENDA

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“For change to happen, we will have to stay true to our primary function, which is to enable people to communi-cate, but with a decisive change of perspective. We will need to change our focus to the concept of digital life by looking at all our customers: individuals, businesses and public administration.” Marco Patuano, Telecom Italia Chief Executive Officer

Telecom Italia intends to take part in the digital transfor-mation currently underway, confirming its historic role as an engine of Italy’s modernisation, helping attain the goals of the European Digital Agenda and participating in the transformation of Brazil, a strategic asset and the Group’s second most important market.

In order to meet these objectives, it is essential to in-crease investments in next-generation networks and in innovation, as is called for in the 2014-2016 industrial plan. At the same time, the company will keep an eye on costs and will continue to seek efficiencies and fi-nancial flexibility (including through extraordinary ope-rations, aimed at generating value from towers in Italy and Brazil).

The new plan will also give a strong impulse to efforts to create a unique and distinctive offer focused on a conver-gence of high-quality services, also thanks to strategic deals with content providers (Sky) and credit card networ-ks (Visa). Similar deals will move the Group’s focus from traditional communication between individuals to digital life solutions that will involve individuals, companies and the public administration.

In the three-year period 2014-2016 the company will invest some 14 billion euros, of which 9 billion euros in Italy. In our home market, 3.4 billion euros will be dedicated exclusively to the development of innovative assets –nearly triple the figure in the previous plan.

Investments 2014-20169 billion euros in Italy of which 3.4 billion euros devoted to the most innovative technologies (compared with 1.3 billion euros in the previous plan);

11 billion reais in Brazil

These investments will be deployed as follows: 1.8 billion euros for the development of fixed-line broadband through the use of Fibre-to-the-Cabinet and Fibre-to-the-Home; 900 million euros for mobile UltraBroadBand networks; 700 million euros for cloud computing solutions and the Sparkle international infrastructure.

All this will enable Telecom Italia to keep the pace with the Digital Agenda and guarantee, by the end of the plan, an UltraBroadBand coverage of 50% of the Italian population on the fixed, Next Generation Access Network (NGAN) and 80% of the population on mobile, Long Term Evolution (LTE) networks. By the end of last year, 42 Italian cities had fibre-optic cabling, while TIM’s 4G LTE service reached 50% of the population (651 municipalities), making it the widest-reaching mobile 4G network in the country.

In this context, Telecom Italia has also renewed its commitment to develop next-generation networks not only in big cities and industrial districts but also in so-called “white areas” where the time horizon in terms of return on investment is so long that it discourages investors from building infrastructure.

Investing in technology for new networks also means acting as a stimulus to the country’s economy. The result is an improvement in services, quality and guarantees – also in terms of data security and energy efficiency, which is even more important considering that the Group is the second-largest energy consumer in the country.

In South America, the strategic interest in Brazil remains confirmed. TIM Brasil’s market share continues to grow in a high-potential country. Here also the focus is on developing next-genera-tion networks, to which the company has committed more than 11 billion reais in investments through 2016, a sum which comes on the heels of the 3.9 billion reais invested in 2013.

“It is an industrial plan that extends our commitment, in terms of investments in new genera-tion networks, data centres and new services, supported by a strict efficiency plan - alongside the cost reduction programme that has characterised the last few years. A plan for a company that is totally focused on two main objectives: re-launching the Italian market and growth in the Brazilian market.”Marco Patuano, Telecom Italia Chief Executive Officer

Communication represents Telecom Italia’s past, present and

future. But times are changing: the future will be increasingly

about “digital life” and “advanced digital experiences” made

possible by the evolution of technology, by UltraBroadBand

and the spread of new services that contribute to sustainable

economic growth and the improvement of people’s quality of life.

ITALY

Strong increase in

UltraBroadBand (UBB)

investments to favour

structural differentiation

Change the mix between “innovative” and “traditional” investments to sustain faster development of UBB

Delayering network architecture to gain operational flexibility and reduce running costs

Access public funds (“Anti-Digital Divide” and “EuroSud” programmes) to accelerate fibre deployment in black and grey areas

BRAZIL

Constant attention to

quality and increased

focus on innovative

components to fully

capture the growing

potential of data

Increase investments to immediately complete 3G offer and develop 4G

Higher focus on network infrastructure and efficiency in terms of quality and coverage

Continuous deployment of fibre to support data traffic growth

Develop all opportunities generated by RAN access network sharing

“In the future we will need to be even more efficient, more competitive, more sustainable in the long term. There will be no future without a healthy market sustainability.”

Marco Patuano, Telecom Italia Chief Executive Officer

“

Strategy

KEY POINTS OF THE 2014-2016 PLAN

Increase investments in UltraBroadBand – thanks also to the recent strengthening of the Group’s financial structure – which will then sustain:

• the increasing adoption of innovative services on the part of families, companies and the public administration, such as entertainment, e-learning, e-commerce, e-health and e-government

• the expansion of broadband coverage following European Commission indications

• the development in Brazil of mobile data services aimed at an increased share of the population

LTE (Long Term Evolution): UltraBroadBand mobile

Also known as new generation 4G network, it allows for vastly superior transmission speeds and guarantees

coverage also in rural and suburban areas

NGAN (Next Generation Access Net-work): Fixed-line UltraBroadBand

New generation fibre-optic network that grants high-speed connections

30 Mbit/s downstream

3 Mbit/s upstream

100 Mbit/s downlink

50 Mbit/s uplink


UltraBroadBand development in Italy

Investments for the community

TODAY (END 2013)

UltraBroadBand mobile 4G (LTE)

coverage

UltraBroadBand fixed (NGAN)

coverage

~ 18%

Population reached by LTE

Population reached by the next generation fibre

optic network (NGAN)

>50%

TOMORROW (2016)

BRAZILNext generation infrastructure development plan with a commitment to invest by 2016 more than

11 billion reais

million euros invested (including Telecom Italia Foundation)

+ 28 %investment in the community compared to 2012

3.7 %Charities

46.2 %Initiatives in the

community**

50.1 %Investments in the community*

* Long-term commitment to specific social projects** Business activities in partnership with humanitarian organizations

Committed to people

2.8 million euros Telecom Italia Foundation disbursements

Employee training

training hours per head57.4

34 %Social

24 %Historic and artistic6%

Environment

23 %Educational

13 %Telecom Italia

historic archive

~ 50% 80%

Since 2005, extraordinary investments made to bring ADSL coverage to some

4,000 municipalities (6 million Italians) in remote areas

98% ADSL coverage in Italy (at

December 2013)

GEOGRAPHICAL DIGITAL INCLUSION

Reduction in the use of energy in voice and data transmission

between 2011 and 2013

ECO-EFFICIENCY

28%

hours per head compared to 2012 for Group employees+ 109 %

For 15 years Telecom Italia has been sharing its initiatives in its Sustainability Report

46.6

Telecom Italia is the leading Italian ICT Group and

one of the most important players in the large

Brazilian market.

Revenues

23.4

Organic EBITDA

9.7

29 %Brazil

2 %Media, Olivetti and other

69 %Domestic

Customers

117,848,000

Investments

4.4

Innovation-oriented investments in Italy during the 2014-2016 plan

~ 3.4

1 .4Brazil

3Italy

TIME FOR ANNIVERSARIES2014 marks the 50th anniversary of the merger in SIP of all of Italy’s previous telephone companies, as well as the 20th anniversary of the transformation of SIP itself into Telecom Italia.

billion euros

billion euros

81 %Italy

19 %Abroad

billion euros

Net financial position Telecom Italia confirmed as a component of leading sustainability in-dexes

Employees

65,623

Mobile lines in Brazil73.4 million

31.2 million

13.2 million

Mobile lines in Italy

Retail fixed lines in Italy

increased compared to the ~1.3 of the previous plan

billion euros

Net financial position

26.8billion euros

63.1 %Men

36.9 %Women

of which 6.9 million retail broadband access

2013 in numbers

Telecom Italia at a glance

out of 9 total


22 JANUARY

“Italia Connessa” (Connected Italy) takes a snapshot of the de-gree of digitization of the Italian regions. In December the second edition of the study was released

30 APRIL

Green light for the sale of LA7 to Cairo Communication

6 AUGUST

TIM among first ten global brands for customer service on Facebook in the Social Bakers research

12 SEPTEMBER

Telecom Italia keeps its place in Dow Jones Sustainability Indexes (DJSI)

3 OCTOBER

All powers assigned to CEO Marco Patuano after the Chairman’s resignation

14 OCTOBER

In Milan, Digital Islands enable innovative services that use cloud and NFC technologies through multimedia totems ahead of Expo 2015

12 SEPTEMBER

Telecom Italia Media sells MTV Italia to Viacom

2013 Key Facts

7 NOVEMBER

2014-2016 strategic plan: 3.4 billion euros in innovative investments in Italy

13 NOVEMBER

15 new grants to the winners of Working Capital 2013, which rewards startups

6 DECEMBER

Issue of mandatory convertible bonds of Telecom Italia shares for 1.3 billion euros

14 NOVEMBER

Agreement reached for the sale of the stake in Telecom Argentina

11 DECEMBER

Control centre for Expo 2015 Smart City presented

2 DECEMBER

Telecom Italia on the podium for Italy and Europe KWD Webranking Awards, which rewards companies for online corporate communication

0,8

0,75

0,7

0,65

0,6

0,55

0,5

0,45

0,4

0,35Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

31 DECEMBER

Since August, Telecom Italia’s shares have grown 50%, marking the reversal of the downward trend


Telecom Italia for society

NURTURING TALENTS

The future of Telecom Italia is all about generating innovation for people. Indeed, the Group

– also thanks to an acceleration of its digitalisation projects – is working to create a more

inclusive society and make life easier for everyone. Through new platforms, which generate

greater opportunities for connectivity and sharing, innovative solutions – also in education

and healthcare – together with advanced applications will make it possible to get a taste of

the city of the future and help protect the environment.

BUILDING DIGITAL SCHOOLS

Joint labs with universities and support to start-ups to help nurture young talent

Connectivity projects and online lessons are the foundations of the digital school of the future

109grants assigned since 2009 through Working Capital

2,000students already involved in the educa@TIon project

SAFEGUARDING THE ENVIRONMENT

BRINGING ABOUT THE SMART CITY

Expo 2015, of which Telecom Italia is a technological partner, is the occasion to get a peak at the city of the future

Energy saving projects and services for customers aimed at increasing energy efficiency

43 million euros, Telecom Italia’s total investments in technology solutions for Expo 2015

1% Telecom Italia’s percentage of Italy’s total energy use

SUSTAINING INTELLIGENT MOBILITY

SIMPLIFYING PAYMENTS

CONTRIBUTING TO THE DIGITAL AGENDA

PROMOTING CULTURE THROUGH INNOVATION

Telecom Italia supports numerous cultural initiatives, making available its technology and know-how to promote digital culture in Italy. The network thus becomes the channel to bring people closer and to spread contemporary knowledge through projects ranging from dance (Metamondi) to literature (Mantua’s Festivaletteratura), from opera (OperainWeb) to art (MAXXinWeb), from electronic music (Meet in Town) to classical (PappanoinWeb)

Applications for innovative, intelligent transport solutions

Mobile phones as electronic wallets for safe, daily micro-payments

The goals established by Italian and European authorities to keep pace with innovation

INTEGRATING DIVERSITY

CREATING DIGITAL HEALTHCARE

Develop tele-medicine to improve patients’ lives and reduce healthcare spending

Information technology to remove barriers to communication, both physical and linguistic

400,000euros in grants from Telecom Italia Foundation to help people with communication difficulties

100% the target for broadband (>30 Mbit/s) coverage in 2020 (European Digital Agenda)

14 million mobile phones (estimated) with NFC technology in Italy in 2014


Caring for the environment is a challenge for society, one in which technology plays a key role.

Telecom Italia is attempting to combat climate change both by reducing its emissions and by

offering customers efficient virtualisation of products and services and innovative solutions.

What has been done to reduce the company’s energy consumption?Telecom Italia has implemented a number of initiatives to reduce its energy consumption, ranging from the introduction of over 350,000 low-energy LED bulbs in communal areas to an efficient increase in energy generation for local, internal use.

The most important project is the Smart Center: a cutting-edge technology centre that helps manage available resources efficiently. Thanks to 24,300 sensors located in plants, premises, mobile radio stations, offices and sto-res, the Smart Center continuously monitors half of Telecom Italia’s con-sumption to identify areas of improvement and propose innovative energy-saving solutions.

Nine projects win recognition for energy savingA series of innovative projects, which lead to significant electricity savings, have been awarded white certificates from the Italian grid operator (Gestore dei Servizi Energetici, or GSE).

In 2013, nine Telecom Italia projects were awarded white certificates, ena-bling the company to make annual energy savings of 23,000 tonnes of oil equivalent (TOE), worth over EUR 16 mln in financial terms. Another 18 projects, corresponding to an annual energy saving of over 55,000 TOE, are currently being assessed by GSE.

How has data transmission efficiency improved?Increasing the speed and quantity of data transmitted involves ever-higher energy consumption. The initiatives implemented by Telecom Italia seek to examine the energy efficiency of services offered by correlating the number of bits transmitted (data and voice traffic) with the quantity of energy consu-med for industrial, civil and transport purposes (measured in joules).

Since 2011, the Group has improved its data transport efficiency by 28%; its target for 2014 is to increase efficiency by 9.6% compared with 2013.

1%

28%

WHAT ARE “WHITE CERTIFICATES”?Also known as Energy Efficiency Credits, they cer-tify that companies have achieved energy savings. Each certificate corresponds to a saving of one tonne of oil equivalent (TOE). They have an economic value in that they can be purchased by companies to offset high CO2emissions.

Development of products and

services that improve energy

efficiency

Initiatives to reduce

emissions and consumption

Promotion of a culture of

caring for the environment

improvement in energy consumption for data transmission (data and voice traffic) between 2011 and 2013

Telecom Italia’s energy consumption compared with the total in Italy. Equivalent to the total consumption of all Milan households in one year

Safeguarding the environment

TELECOM ITALIA’S COMMITMENT

Ultra-fast communications, making and receiving payments using a mobile phone, digital

totems, apps for “augmented reality”: Milan Expo 2015 will be the forum for trying out all

these services, which will be common in the smart cities of the future. Telecom Italia, the

exhibition’s technology partner, will play a key role in developing these services in the future.

Developing networks and infrastruc-tures

Telecom Italia will build both the fixed and mobile latest-generation infra-structure for the Expo site and provide various ICT services.

The “Telecom Italia Data Center – The Cloud Shelter” project was born out of the idea of enhancing the intangible reality of cloud computing with photos and videos from the data centre in Rozzano, which will be put to use at Expo. Three of the most famous photographers of international agency Magnum Photos - Paolo Pellegrin, Peter Marlow and Harry Gruyaert – have thus given visibility and aesthetic dignity to Expo’s “central nervous system”.

Digital identity

Telecom Italia will also develop the event’s digital identity to stimulate the interest of potential visitors and increase the resonance of the exhibition’s theme, “Feeding the planet, energy for life”. To provide a preview of the Ita-lian Pavilion, an app has been developed using augmented reality and visual recognition to let people take a “virtual tour” of the model of the pavilion on display in Rome.

In Milan, meanwhile, the first 15 multimedia totems have been launched. These devices use new cloud and NFC technology to provide residents and tourists with information, as well as let them make bookings and payments. These digital islands represent open-air “laboratories” for testing services to be offered at Expo 2015.

The city of the future

The universal exhibition is also an opportunity to stimulate new ideas on the city of the future. Changemakers, the business acceleration programme promoted by Telecom Italia at Milan Expo 2015, has the ambitious objective of developing 10 new ideas to change the lives of at least 10 million people. The ideas chosen in 2013 benefited from an eight-week intensive accelera-tion programme.

The “Digital Ideas for Expo City 2015” competition, in conjunction with monthly magazine Domus, also selected three projects based on cloud com-puting and NFC technology that could have a positive impact on the region and on people’s lives.

EXPO 2015: THE NUMBERSOver 140 exhibitor countries

20 million visitors expected

43 million euros invested by Telecom Italia in the technology for Expo

MILANO 2015NUTRIRE IL PIANETAENERGIA PER LA VITA

Bringing about the Smart City

DISCOVER THE EXPO CONTROL CENTER View the photos of the project “Telecom Italia Data Center - The Cloud Shelter”, at

expodatacenter.it

Digital islands in Milan ahead of Expo 2015


The digital school is at the heart of Italian and European growth programmes and smart city

designs. Telecom Italia puts its expertise and technology at the service of schools to develop

digital teaching solutions.

Telecom Italia and the digital school

The main objectives of the solutions offered by Telecom Italia are a reduc-tion in the educational digital divide and promoting the digitalisation of schools and classrooms. The rollout of ultra broadband and wi-fi in schools is key to achieving the objectives of Italy’s National Plan for Digital Schools.

Telecom Italia, in conjunction with Olivetti, created the “Nuvola Italiana” Digi-tal School at the end of 2013, a project that aims to help schools modernise and introduce innovation in educational management. The offering enables schools to adopt modular, scalable solutions for the shared learning and social learning of educational, administrative and teaching contents, using web-based environments, online registration-based cloud platforms, school-family and teacher-student communications management, and collaborative e-learning. The kit includes interactive multimedia whiteboards and PCs for lessons in the classroom and notebooks and tablets for students to share digital content.

Project educ@TIon revitalises schools

educ@TIon is a project that aims to provide a solution for sharing and inte-racting with various types of material on any type of tool, from multimedia whiteboards to tablets. The strength of educ@TIon is that it is not linked to one particular tool and includes applications such as the sharing of digital books, collaborative environments for the joint creation of multimedia con-tent and lecture notes, and tools for shared lessons on multimedia whitebo-ards in the classroom or for distance learning.

Digital technology contributes to the development of Brazilian schools

TIM Brasil’s Instituto TIM supports various projects that aim to improve the education and social development of Brazilian children, especially in di-sadvantaged areas.

Aprender Conectado provides teachers with digital tools to use for teaching children. Specifically, Instituto TIM provides data chips and free internet con-nection.

With Math Circle, Instituto TIM has introduced in Brazil an innovative way of teaching maths, developed by Bob and Ellen Kaplan of Harvard University. The project, which in 2013 involved 50 teachers across the country, aims to improve children’s learning experience using more interactive teaching methods.

EDUC@TION: THE NUMBERS (2010 – 2014)13 schools involved from Trentino Alto Adige to Sicily, and Emilia Romagna to Campania

Over 2,000 students take part

TELECOM ITALIA FOUNDATIONInnovative Design of educational processes in schoolsThe Foundation has developed, in conjunction with Italy’s national association of head teachers, a web-based platform for teacher training and interaction. The 100 teachers selected for the project took part in a workshop on innovation in teaching methods and the use of digital tools in the classroom.

Italy - Brazil ProjectCombating poverty and exclusion through an educational social network that connects 20 high school classes in Italy and Brazil. Over 500 students and 20 teachers have developed a shared community. It is the Foundation’s first project outside Italy.

Building Digital Schools

educ@TIon used at the Istituto Buonarroti in Trento

Developing young people and their talent is the key to the country’s growth. This is why

Telecom Italia has created a new model of collaboration with universities that puts the

development of talent at its heart. This new way of doing research involves the creation of

joint laboratories for the industrial transfer of innovation (Joint Open Labs, or JOLs) and

programmes to support young people, such as Working Capital and Changemakers.

OBJECTIVE PROJECTS RESULTS

Developing

young people

To promote young talent in Italy

New initiatives on the employment market relating to training and entry into the company, such as higher education internships, master’s degrees and research doctorates.

Italy (since 2011)• Over 330 higher education internships granted for final-year engineering and economics students

• Over 100 research doctorate scholarships financed

• Over 70 bright new graduates supported in studying for four second-level professional master’s degrees

• Over 80 young people recruited on permanent contracts to innovative areas in 2013

Brazil• 120 talented young people selected for the programme “Internships without frontiers” (Estágio sem Fronteiras)

• 16 promising new graduates taken on in strategic areas of the business

• 2,134 senior managers recruited in 2013

New partnership

between industry

and universities

To accelerate industrial transfer and generate shared solutions between the world of research and business.

Creating a new way of doing research using joint open labs (JOLs) for the industrial transfer of innovation

Joint Open Labs (JOL)• 5 universities involved in the first phase

• Over 350 young people, of whom 200 are working in the company’s areas of innovation

• Interdisciplinary teams focusing on university areas of excellence

• “Open” research at international level in collaboration with organisations such as the European Institute of Technology

and MIT

• Investment of 13 million euros (2012-2015)

• Field testing relating to the company’s areas of interest and in which universities have expertise, generating knock-on effects

locally and encouraging university startups

Support

to startups

To foster new talents in Italy, and assist with the creation of new companies, particularly web and technology firms.

Creating incubation programmes that offer know-how, financial resources and visibility through two initiatives: Working Capital and Changemakers for Expo Milan 2015

Working Capital - the results (since 2009)• 109 grants

• 15 accelerated startups and 19 incubated and financed startups, 36 pre-incubated startups

• Working Capital 2014: forty 25,000-euro business grants will be awarded across the 40 accelerator programmes in the

four centres in Italy.

• 4 accelerator centres: Milan, Rome, Catania and Bologna

• Working Capital will also have a crowdfunding platform for ideas, projects and companies to receive financing from the

community

Changemakers for Expo Milano 2015• 10 new ideas chosen from over 1,500 participants from 21 countries

• 8 weeks of intensive incubation with professionals from various sectors

• Many projects are achieving international visibility

Since 2009, it has supported the crea-tion and development of new businesses based on digital innovation.

Business acceleration programme promoted by Telecom Italia at Milan Expo 2015, with the ambitious objective of developing 10 new ideas to change the lives of at least 10 million people.

Nurturing talents

workingcapital.telecomitalia.it | @ workingcapital

changemakers.expo2015.org | @ cm4expo

2013 saw the launch of:

7 new laboratories in

4 cities that are going to join the ranks of the SKIL JOL, which opened in Trento in 2011.

Catania

Pisa

MilanoTrento

Torino


The aim of digital health is to enable doctors and patients to carry out many activities remotely,

thereby improving patient quality of life and reducing health expenditure. Telecom Italia has

promoted the development of tele-medicine to improve the lives of patients in hospital and the

cloud management of health information (electronic health records).

A high-tech bridge to reduce the distance between very young patients, schools and families

In 2013, version 2.0 of Smart Inclusion was launched to improve the hospi-tal stays of very young patients, thanks to a high-tech platform with remote learning, entertainment and data management services.

Created in conjunction with CNR (Italy’s national research council) and the Mini-stry for Simplification and the Public Administration, this year saw the project’s launch in Italy’s eighth hospital, the Santa Chiara Hospital, Pisa. Using cloud computing and Telecom Italia’s digital learning solution, educ@TIon, the new version enables children to access its services from both PCs and tablets.

Improving patient quality of life while optimising healthcare costs Nuvola IT Home Doctor enables patients suffering from chronic conditions or who are undergoing post-hospitalisation follow-up to monitor physiological parameters (e.g. body weight, glycaemia) at home.

It’s simple for patients to send the relevant figures using a smartphone, PC or tablet while doctors can monitor the results, receive notification of rea-dings above or below a threshold, prepare medical reports or consult with other doctors.

Other functions to improve the service are being tested including the analysis of more pathologies, prevention tools and the management of health asses-sment questionnaires.

The solution is already being used by various health organisations, including the Rieti area health authority, where 40 patients undergoing anticoagulant therapy are being monitored without the need for a blood sample to be taken at home, resulting in savings and benefits for patients. The Palermo area health authority is also using it for 60 diabetic patients, with the aim of redu-cing diabetic coma.

Home Doctor is not only suitable for patients with chronic conditions: 2,500 sailors in the Italian Navy undergo cardiac examinations without having to visit cardiology departments generating savings of nearly 1 million euros.

A cloud for health information

Nuvola It Digital Clinic is Telecom Italia’s new service for managing electronic medical records. Designed for all health facilities that want to manage the clinical data of patients on a fully mobile basis using portable devices, the solution replaces the old system of paper clinical re-cords. It can be used with Telecom Italia’s cloud compu-ting, in accordance with privacy legislation. The service has already been adopted by various hospitals such as the Ospedali Riuniti centre in Bergamo, where doctors can view, update and share patients’ medical history on their iPad during ward visits.

Nuvola It Image Archiving – Plus, a solution for virtua-lising and storing diagnostic examinations and medical documents, and thus ensuring their authenticity and in-tegrity, was also created in 2013. This solution has con-siderable financial advantages considering that around 50 million diagnostic examinations and an equal num-ber of medical reports that need to be stored are gene-rated each year. The Santobono Hospital in Naples, for example, is archiving its x-ray images, involving some 7 terabytes of storage space, in the Telecom Italia cloud at low cost.

Creating digital healthcare

Smart Inclusion at “Santa Chiara” hospital in Pisa

Information technology can now promote diversity and remove barriers to communication.

Telecom Italia and the Telecom Italia Foundation support innovative projects based on the

use of technologies that try out new forms of education, approaches and tools to overcome

communication difficulties.

Volis Project How can we learn a language that uses signs as words?

Educators, speech therapists and psychologists every day provide support to hearing-impaired children and those suffering from language disorders. One of the most complex aspects is assessing children’s understanding of Italian sign language (ISL). The Volis project, a partnership between the Te-lecom Italia Foundation and the Institute of Cognitive Science and Techno-logy of CNR (Italy’s national research council), has led to the creation of a digital platform that helps assess ISL comprehension levels by means of tests. Answers to the test are recorded by the platform, enabling educators to improve and adapt teaching methods in accordance with the needs of their young patients. Volis is one of the three projects selected by the Tele-com Italia Foundation following the “Communication Problems” Open Call in 2013. The second project, SI DO RE MI, focuses on children suffering from autistic disorders, while Cinque Petali (Five Petals) is dedicated to children with learning difficulties.

2 in every 1,000 children are born deaf in Italy

70,000 people in Italy are deaf

Telecom Italia Foundation - helping people with communication problems:

205 proposals in response to the Open Call

400,000 euros allocated

3 projects selected: Volis, SI DO RE MI, Cinque Petali

I speak Italian Italian for students who have just arrived in Italy

The number of foreign pupils in Italian schools who have very recently arrived in the country and who cannot spe-ak Italian is growing. To help them integrate, the Telecom Italia Foundation finances the Io Parlo Italiano (I speak Italian) project, promoted by the Ministry of Education, Universities and Research. It has been rolled out in more than 75 schools, involving 450 pupils and 150 teachers, for a total of 15,000 hours. The objective is to facilita-te the study of our language among foreign students up to the third year in junior high schools, with intensive courses and lab sessions, to help them pass the state exam and guide them in their choice of high school.

Comunico-IOBringing down communication barriers between the hearing and the deaf

“Comunico-IO” (I communicate) facilitates communication between the hearing and the hearing-impaired, thereby bringing down the barriers that isolate the hearing-impaired in society. The project, targeted at employees of the Telecom Italia Group, fosters integration within the company. In the first phase, a high-definition webcam made it possible to conduct video chats in Italian sign language (ISL). Subsequently, an application was created to convert written messages into voice messages: a useful tool not only in emergencies but in everyday communication.

Given the project’s success, a new application is being developed that will enable visually-impaired people to convert voice commands into e-mails or text messages.

Integrating diversity

Kids in the Volis project


Getting accident notifications, knowing how fast to drive at catch green lights, car-sharing and

having public transport routes marked out online are just some of the services that underpin

efficient mobility in a smart city. Telecom Italia co-operates in numerous projects designed to

create smart transport systems.

Smart city and intelligent mobility

The smart city needs systems that guarantee safe, efficient and sustainable mobility. To put this in place, every country and city must have effective data collection and processing systems in which telecommunications and data management will play a fundamental role.

In the near future, numerous sensors will be installed on the ground and in vehicles. These will communicate with each other and with mobility ma-nagement centres to transmit information about traffic and the state of the vehicles and their locations to enable improved planning of city services.

Telecom Italia works with many local organisations and takes part in various European projects to develop innovative smart transport solutions; these in-clude the Compass4D project with Verona.

Sustaining intelligent mobility

THE ADVANTAGES OF A CONNECTED CAR

• Optimises transport times by providing information on traffic and the availability of parking spaces

• Provides information on routes and access to urban areas

• Reminds drivers of vehicle maintenance schedule

• Enables personalised insurance solutions to be created

• Enables vehicle to be located in case of theft• Informs emergency services in the event of an

accident, indicating precise location

Car manufacturers and telecommunications com-panies have set the following objectives for smart mobility*:

• More than 20% of vehicles sold will include connectivity devices by 2015

• By 2025 every new car will be able to connect through multiple devices

* GSMA, the international association of mobile operators

CARS AND TRAFFIC LIGHTS TALK TO EACH OTHER IN VERONA FOR SMART TRAFFIC

Along with six other European cities, Verona is piloting various smart traffic and road safety systems as part of the European project Compass4D. As a partner of the project, Telecom Italia has made its high-speed mobile (4G) technology available, which is fundamental for ensuring smooth and rapid communication. Devices have been mounted on test vehicles (cars and buses) that communicate with the surrounding road infrastructure and warn drivers of any road accidents and roadworks and provide them with traffic light information. Furthermore, certain public utility vehicles, such as buses running late or emergency vehicles, can be given a green light as soon as they approach a junction.

In the second phase, residents will be able to access the various applications through their smartphones, even when travelling on foot or by bicycle.

Find out more at compass4d.eu | @Compass4D

Verona seen from the screens of the Compass4D project

Near Field Communication (NFC) technology lets you pay for your shopping and other everyday

purchases, for using the metro, getting into your office and accessing tourist information in the

city with just your mobile. No more season tickets, keys or credit cards. NFC technology allows

you to carry out rapid and contactless transactions using a mobile phone.

NFC technology

Near Field Communication (NFC) technology enables fast and secure elec-tronic transactions to be carried out using a mobile phone and offers various advantages:

• use your mobile phone to make payments or interact with turnstiles, re-aders or information tags, without having to always carry different cards and season tickets with you

• be user-friendly • guarantee fast and secure data transfer

What are its uses?

NFC FOR EXPO 2015Telecom Italia and TIM took part in the Isole Digitali (Digital Islands) project, providing:

22 interactive totems

1 platform that provides informative multimedia content for citizens and tourists, thanks to the cloud infrastructure of the Italian Cloud

Some of these totems are equipped with NFC technology that can interact with residents’ and tourists’ mobile phones and tablets for booking and purchasing tickets for events, bike-sharing and more.

Find out more in Bringing about the Smart City (page 13)

TIM mobile wallet coming soon

Telecom Italia has been involved for some time in the development of NFC services based on the use of SIM cards in mobile phones. On the back of va-rious pilot projects launched in recent years, Telecom Italia in 2013 built the enabling platform, worked with the main suppliers to develop commercial so-lutions and concluded important agreements with Visa and Intesa Sanpaolo on mobile proximity payments (NFC).

Contactless payments with a Visa card will be the key service of the “TIM mobile wallet”, an “open” digital wallet that can be used to make payments for small everyday items, such as bus tickets or coffee, simply by holding up your mobile phone within range of the enabled terminal. Payments of more than 25 euros will require a password.

NFC services have significant growth prospects, since most smartphones sold today are enabled with NFC technology. By the end of 2014, there will be more than 14 million NFC mobile phones in circulation and in two years around 10% of users are expected to make use of multiple services made available by this technology.

BUYING A TICKET GETTING INTO THE OFFICE SHOPPINGUSING SERVICES VIEWING

INFORMATION

GROWTH PROSPECTS IN NFC SERVICES 14 million: the number of NFC mobile phones expected to be in circulation by end-2014

10% of users will use NFC services by end-2016

Simplifying payments


Telecom Italia sees innovation and technology contributing to a digital world where living

standards are better for individuals and companies. The path has been mapped out by the

Italian Digital Agenda, a programme created on the basis of the Digital Agenda for Europe

– one of the seven initiatives of the “Europe 2020” strategy for smart, sustainable and

inclusive growth.

A MORE EFFICIENT PUBLIC ADMINISTRATIONThe Digital Agenda Observatory of Polytechnic University of Milan estimates the following annual savings from the introduction of digital into the public administration:

Over 1 billion euros from electronic billing

6.8 billion euros from digital healthcare

5 billion euros by going from 5% to 30% share of electronic payments for goods and services (eProcurement)

From Europe to the regions: the future challenges for a digital life

The Italian Digital Agenda, created following the guidelines of the European Agenda, is intended to stimulate the country’s economic growth through incentives to use technology. In addition, the programme is expected to ge-nerate significant savings for public authorities.

Contributing to the Digital Agenda

In order to achieve these objectives, it is vitally important to invest in techno-logy and network infrastructure and to do so throughout Italy, not just in the big cities and districts.

To bridge the technological gap that has opened up in lower-income areas of the country, between 2005 and 2013, Telecom Italia carried out a major investment programme in which it provided ADSL coverage to approximately 4,000 new municipalities, equivalent to more than 12% of the population. This led to ADSL broadband coverage for the country of 98% at the end of 2013, close to European Digital Agenda target.

Digital Agenda for Europe

Italian Digital Agenda / Growth 2.0 decree

Regional DigitalAgendas

• Single digital market• Broadband• Digital inclusion• Public services• Research and innovation• Green economy

• Single registry / digital identity / Electronic billing

• Digital Public Administration• Digital education• Digital health• Digital legal system• Smart communities

• Knowledge and ability to listen• Regional industrial policies• Delegated areas (e.g. health)• Regional implementation

COVERAGE TARGETSToday (end 2013)

~ 50% LTE coverage

~ 18% NGAN coverage

Tomorrow (2016)

80% of Italian population reached by LTE (new 4G mobile network)

>50% of fixed-line population reached by new fibre-optic fixed network (NGAN)

By the end of 2016, partly thanks to the increase in investment in ultra-broadband technology set out in its three-year plan, Telecom Italia will serve more than 50% of the population with a fixed high-speed connection (NGAN) and 80% with a fourth-generation mobile network (LTE).

The goals of the Digital Agenda for Europe for 2020

At the beginning of 2010, the European Commission presented the Europe 2020 strategy, with the aim of preparing the economic and social framework for the challenges of the next decade. The key initiatives included the adoption of a Digital Agenda for Europe, which seeks to increase Internet coverage and enable households and businesses to get the most out of the single digital market.

Italia Connessa and Telecom Italia’s digital check-up

With the Italia Connessa (Connected Italy) initiative, Telecom Italia looked at the different levels of digital development and partnered some regional administrations in conducting a thorough digital check-up. The municipality of Grugliasco (Turin) won the Italia Connessa contest, which was intended to promote a culture of innovation among local administrations of medium-sized Italian municipalities.

The second Italia Connessa was presented in December 2013 and paints a mixed picture. Italy seems to be behind the European average in most indica-tors, with the exception of basic broadband coverage (at 98%).

Just over half the population accesses the Internet, well below the European average (53% in Italy versus the EU figure of 70% and the 2015 target set by the European Union of 75%), and Italians remain rather sceptical regarding online purchases (17% of the population buys goods online, compared with the 2015 European target of 50%, an objective that has already been met and exceeded by numerous EU countries).

TIMETABLE AND DEADLINES FOR THE ITALIAN DIGITAL AGENDALike the Digital Agenda for Europe, the Italian Digital Agenda has a time horizon to 2020.

The Agenda establishes a steering committee to manage the six working groups which must implement 101 actions:• Infrastructure and security• eCommerce• eGovernment and open data• Digital informatisation and digital skills• Research and innovation • Smart communities

In 2013, the Digital Agenda was boosted by the “Decreto del Fare” (“Decree of doing”, Legislative Decree 69/2013).

BROADBAND (2020 TARGET)

Citizens covered by basic broadband

Broadband coverage of over 30 Mbit/s

Use of connection of more than 100 Mbit/s

100%

50%

100%

75%

15%

60%

Population that makes purchases on the internet

Small and medium-sized companies that buy and sell online

Citizens who use the public authorities’ digital services

50%

50%

33%

DIGITAL INCLUSION (2015 TARGET)

SERVICES (2015 TARGET)

Residents who regularly use the internet

Vulnerable groups who regularly use the internet

Maximum percentage of population who have never used the internet

DIGITAL AGENDA FOR EUROPEThe Digital Agenda is one of the seven key initiatives of the Europe 2020 strategy, which sets EU growth objectives to 2020.


27 MAY

Telecom Italia introduces innova-tive solutions for health, security and the territory to promote the digitization of the Public Admini-stration

11 FEBRUARY

Telecom Italia takes ultra fast broadband technology to SMEs with Tuttofibra

5 MARCH

Launch of TIM’s new “Sempre Sicuro” (Always Secu-re) service to protect smartphones and tablets from theft and damage and to keep all data secure

15 APRIL

TIM Brasil launches TIMmusic: an application allowing users to access millions of tracks at low prices

Main commercial offerings in 2013

12 JUNE

Telecom Italia launches “Roa-ming Tutto Incluso” (all-inclusive roaming), the first “disposable” solution for business clients

15

10 SEPTEMBER

Telecom Italia launches “Tutto”: internet and unlimited calls from home to all mobile phones

7 OCTOBER

Telecom Italia launches new app that converts smartphones into home phones

12 NOVEMBER

Telecom Italia and Visa Europe: agreement to enable mobile payments

13 DECEMBER

TIM’s ultrabroadband service LTE (4G) reaches the cities of Cremona, Ravenna and Varese

23 DECEMBER Telecom Italia creates a new mobile app for the Italian Pavilion of Expo 2015

31 DECEMBER

Foggia, Salerno, Latina, Lucca are among the latest cities added to the new generation fibre-optic network NGAN in 2013

24 | TELECOM ITALIA BEYOND NUMBERS

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