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Press Release -- February 26th, 2014
Source: Alcatel-Lucent
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[TIM Press Release] TIM closes femtocell deal with Alcatel-Lucent

Rio de Janeiro, February 26, 2014

As part of its innovation strategy focused on quality, TIM increasingly raises its bet on a diversified network structure. Through an agreement signed with Alcatel-Lucent, TIM will integrate femtocells to its 3G network, which concentrates its largest user base. Over a three-year period, TIM Brazil will make use of Alcatel-Lucent’s Enterprise Cell 9362, Homecell 9361, and Metrocell Outdoor 9364 to help in the delivery of a cost effective solution to improve coverage and capacity for subscribers. The project will be expanded as part of the network’s overall infrastructure. Femtocells won’t replace the traditional RBSs (Radio Base Stations) due to limited capacity and potency, but they have already flared-up around the world as an alternative to support coverage in areas with high traffic density, offering good service levels for clients and low environmental impacts.

TIM will make significant investments in femtocells by 2016. The TIM network overview is diversified, as part of our strategy to increasingly invest in this type of technology. The agreement signed with Alcatel-Lucent will allow us to provide such cutting-edge technology for our clients, in a very competitive and efficient manner,” said Daniel Hermeto, Director of Supplies and Supply Chain at TIM Brasil.

Among femtocells’ features lies signal potency control and macro network support, with open or closed network configuration, offering additional coverage to any TIM users and/or registered users, based on each client’s specific needs.

The carrier offers full support for installation, commissioning, operation and maintenance. “An etherogeneous cellular network means adding a femtocell layer (indoor use) and small cell layer (micro- and pico-cells for outdoor or indoor use) to the traditional macro-cellular layer. This technology is already mature around the world. There are currently 7 million micro-cells installed worldwide, 60% of which are in U.S., 30% in Asian-Pacific region, and 10% in Europe. The main driver is to support data traffic growth. TIM is pioneering in Brasil the use of such technology to enhance and strengthen its network infrastructure,” said Marco Di Costanzo, Mobile Network Director at TIM Brasil.

Among the benefits generated by femtocells to the network infrastructure, there is also an increased customer satisfaction rate generated by the raise in AMPU (minute per user) and ARPU (revenue per user), in addition to a significant improvement in voice and data traffic.

We are proud to have won the trust of TIM’s executive team and look forward to helping them differentiate themselves with these investments. Our technology is mature and market-ready, and along with our intense focus, we are uniquely qualified to help TIM further achieve their goal of delivering an enhanced customer experience that is second to none. In addition, providing small cells technology to TIM Brazil \ is a proofpoint of our application of The Shift Plan, the industrial strategy to reposition the company as a specialist vendor of IP Networking and Ultra-Broadband Access technologies,” said Luiz Tonisi, Vice President of Sales for Alcatel-Lucent in Brazil.

About TIM

TIM is the second largest mobile carrier in Brazil and leading company in the prepaid segment. It currently holds a client base of 73.4 million and a market share of 27.09%. The positive performance stems from the company’s innovation strategy, leading relevant movements in the segment in order to ensure access to mobile services by the entire population.

TIM also heavily focuses on the quality of its network and customer services. Over the three-year period leading to 2016, the company will invest in infrastructure over 90% of the estimated R$ 11 billion in Brazilian investments. In order to expand and improve the network, the carrier acquired assets such as Intelig (2009) and AES Atimus (2011) and implements special project, such as fiber optic network installations in the Northern region of the country, via LT Amazonas, which promoted the digital inclusion of populations in remote areas of the country.

The company also prioritizes transparency in its businesses and client relations. One of the company’s milestones was the launch of the Portas Abertas [Open Doors] website in 2012 (www.tim.com.br/portasabertas), which allows consumers to learn more about TIM coverage, as well as its network improvement and expansion projects.

TIM is the only telecommunications company to join the BM&FBOVESPA Novo Mercado tier, which is known as the maximum level of corporate governance. On the stock market, the company is also listed on the Corporate Sustainability Index (ISE) and the Efficient Carbon Index (ICO2). For more information, access www.tim.com.br, www.twitter.com/timbrasil, or www.facebook.com/timbrasil.

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