TELECOM ITALIA GROUP

Inter-operator collaborationBuilding better value together

TM Forum Live!Nice, 3.5.2015

VP Global Partnerships ProgramPaolo Murri

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

What do they have in common?

Jimmy Wales Larry Page & Sergey Brin Jeff Bezos

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

A Montessori school

Maria Montessori

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Learning by experience starts with birth

“We discovered that education is not something which the teacher does, but that it is a natural process, which developsspontaneously in the human being. It is not acquired by listening to words, but in virtue of experiences in which the childacts on his environment.”

Maria Montessori,The Absorbent Mind, 1947

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

The value of professional experience

Carlo Rosa Enrico Chicco Cerea Simone Topazzi

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Our evolution and field experience

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

We are not in sync

NetComTeliaA1VodafoneAero2 / Mobyland (Sferia)T-MobileSoneraSoneraNet4MobilityTeliaEMTElisaTelekomOmnitelLMTAero2 (Sferia)O2TelekomTDCElisaEMTDNADNAT-MobileNetComUK BroadbandT-Hrvatski TelekomVipnetMeoNOSNOSVodafoneVodafoneMegaFon (Yota)UK BroadbandInterdnestrcomMeoMegaFonKPNTele2T-MobileVodafoneZiggoO2TelenorSi.mobilMeoMegaFonMTSVodafoneOrangeTangoTelenorVodafoneEESwisscomSwisscomSwisscomProximusTele2Tele2OrangeSFRCosmoteTIMMoldcellOrangeTelenorVodafoneVodafoneOrangeSunriseT-Hrvatski TelekomElisaElisaKPNKPNTelenorTelenorTele2TelenorTelekom SlovenijeCOTA / Murc ia4GTDCBouyguesNovaTelekomOrangeOrangeBeelineVodafoneVodafoneSunriseSunriseEMTMTSRostelecomRostelecomRostelecomNEO-SKYVodafoneBouyguesSFRVodafoneVodafoneOrangeOrangeYoigoElisaOrangeTelekomVodafoneVodafoneVodafoneO2VodafoneMeteorMeteorOrangeTele2Monaco TelecomVainakh TelecomMovistarBASET-MobileBouyguesVodafonePOSTT-MobileT-MobileVodafoneT-MobilePlay / P4Slovak TelekomVodafoneFreeTELE GreenlandTele2T-MobileOrangeA1T-Mobileb-liteElisaSíminnWindSlovak TelekomSlovak TelekomMobistarMobistarO2 (E-Plus)TelenorNetComOrangeMaxT-MobileTele2T-MobileSi.mobilTelekom SlovenijeO2Manx TelecomManx TelecomVipVipTattelecomOrangeOrangeAquafonOneOneBeelineVodafoneVodafoneTelekom SlovenijeT-MobileT-MobileMovistarEETIMVodafoneLMTMotivVodafoneUkko MobileSilkNetVodafonePlay / P4RostelecomO2O2CosmoteOmnitelMonaco TelecomMTSMTSVodafoneMagtiComMobitelVodafoneJersey TelecomJersey TelecomJersey TelecomTelecom LiechtensteinMegaFonÅlcomMTNPrimeTelGeocellWINDSureSwisscomAero2 / Mobyland (Sferia)TelenorVIPSWANÅlcomSureBITĖ Lietuva

BITĖ Lietuva

BITĖ LietuvaMTS

2012 2011 2012 2013 2014 2015MovicelEmtelMTCOrangeSmileVodacomUnitelMTNSmileTelkom / 8taMTNSmileOrangeSpec tranetNeotelEconetTN MobileSWIFTVodafoneMTNZamtelYooMeeAlgérie TélécomCellcomSurflineTigoGabon TelecomBlu TelecomVodacomoRnAirtelNet*OneSafaricomBluelineMascomOrangeVodafoneEthiotelecomNetpageAccess Communicat ionsAfrihost (MTN)TigoMTML

2012 2013 2014 201520112012

MobilySTCZainEtisalatEt isalatVivaZainduOmantelZainOmantelBatelcoNawrasMobilySTCZainOoredooOoredooAlfatouchOoredooVIVA BahrainMenatelecomVodafoneVodafoneOrangeCellcomPelephoneMTN IrancellGolan TelecomZain

2010 2011 2012 2013 2014 2015

2010 2011 2012 2013 2014 2015

2010 2011 2012 2013 2014 2015

2010 2011 2012 2013 2014 2015

AFRICA

MIDDLE EAST

EUROPE

43

222

31

LTE launch dates by operator

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Who do we usually ask support to?

Consultant

Vendor

System Integrator

A colleague!vs.

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

How?

Intra-GroupTechnical Support

1

CommercialAgreements

2

Alliances &Partnerships

3

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Intra-group technical support1

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Case-study: Margin Analysis exported to group companies

Margin Analysis

ProcessCosting

RegulatoryAccounting

Margins byService / Tariff

Plan

Network Costsanalysis & KPIs

Bolivia

France

AustriaMobile incumbent

Mobile start-up

Mobile incumbent

Best Practice in TIM Italy Implemented in 3 group companies

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

2 years to develop and implement and 4 months to transfer

Development,implementation

Export

24 months

4 months

Successful systemimplementation

Full know-how transfer Rewarding experience

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Intra-group Technical Support

A structured approach to transfer know-how and share assets

TI GroupAffiliates

TelecomItalia

Network

InformationTechnology

Business Processes &Services

PlatformsConsulting Projects &Operations

Intra-groupFrameworkAgreements

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Key success factors

Lean central team and framework agreement1

Internal customers needs, no HQ/sales push2

Direct line experts and managers involvement3

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Commercial Agreements2

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Global Partnerships Program

TI Group capabilities and platforms shared with partners

PartnersTIGroup

Network

InformationTechnology

Business Processes &Services

PlatformsConsulting Projects &Operations

CommercialAgreement

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Consulting Project 100 Line experts and managers 1000 working days 3 Months

Case Study: Technology Master Plan for a TIM’s partner

TIM’s experience… …to develop a partner’s plan

Project team Strategy Marketing Network planning Network engineering TI labs R&D IT Finance HR

5 years Technology Master Plan Clear roadmaps and detailed plans (3000+ pages) Quality improvements Efficiency improvements

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Key learnings

Consulting and Project Management expertise needed1

Good practice, innovative2

Direct line experts and managers involvement3

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Alliances & Partnerships3

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Bilateral Strategic PartnershipMulty-party Alliance

Alliance & Partnerships case studies

Separate legal entity, with focus on selectedsynergies: Multinational Clients (MNCs) andRoaming

Know-how transfer and joint operations -outside focus areas – is possible, however nota priority

TI-TEF strategic partnership during 2011-2013 generated € 1.4 Bn synergies mainlyin network (36%) and procurement (27%).

Home StationsJointPurchasing

DonglesJointPurchasing

Products &ServicesKnow-howsharing

Price drop post joint negotiation(TI): 64%Overall saving >50 M €

Another large operator involved inthe dealPrice drop post negotiation (TI):41%

TI Launched “Impresa Semplice”,a brand for the business segment,after sharing TEF experience inthe Spanish market.

Joint initiatives examples and results

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

Key learnings

Multy-party alliances very effective on focus areas1

Bilateral agreements and partnerships broadly effective2

Cooperation can generate a lot of value3

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

O2O business cooperation could evolve to become a market-place

Long-termEvolution

Bilateral O2O cooperation becomes Industry common practice … a market-place!

Specialized team within telcos’ organizations Consultants or vendors facilitation Events and trade shows follow ups

Short-termTriggers

TM Forum Live! Nice, 1-4 June 2015Paolo Murri

thank you