2D. Mario Fumi VIII Cumbre de Presidentes AHCIET17-18 Noviembre, 2004

Summary

Who is Telecom Italia?

Telecom Italia in Latin America

Cooperacion Government-Enterprises

3D. Mario Fumi VIII Cumbre de Presidentes AHCIET17-18 Noviembre, 2004

Who is Telecom Italia?

• The Telecom Italia Group is a major Italian enterprise and a key european The Telecom Italia Group is a major Italian enterprise and a key european strategic ICT player.strategic ICT player.

TECHNOLOGICAL INFORMATIONTECHNOLOGICAL INFORMATION

FOCUS ON THE CUSTOMERFOCUS ON THE CUSTOMER

COMMITMENT TO SERVICE EXCELLENCECOMMITMENT TO SERVICE EXCELLENCE

DRIVERSDRIVERS

PORTFOLIOPORTFOLIO

Fixed-LineFixed-LineTelecommunicationsTelecommunications

IT and R&DIT and R&D

Internet & MediaInternet & Media

Mobile Mobile TelecommunicationsTelecommunications

4D. Mario Fumi VIII Cumbre de Presidentes AHCIET17-18 Noviembre, 2004

International Presence

LatinLatinAmericaAmerica

SelectedSelectedEuropeanEuropeanCountriesCountries

MediterraneanMediterraneanBasinBasin

Telecom ArgentinaTelecom Personal

5D. Mario Fumi VIII Cumbre de Presidentes AHCIET17-18 Noviembre, 2004

Telecom Italia in a few figures... (1H. 2004)

Revenues €15.222 mln

EBITDA €7.089 mln

% EBITDA Margin 46,6%

Headcount 93.178

Fixed Accesses in Italy Around 27 million

Boadband Accesses in Europe 3.273.000 (of which 2.975.000 in Italy)

Network Infrastructure in Italy copper

fiber optics

european backbone

105,65 mln km copper-pair3,6 mln km fiber39.500 km fiber

TIM lines in Italy 26 million

TIM lines abroad 23,6 million

GSM coverage in Italia (% of the population)

99,8%

6D. Mario Fumi VIII Cumbre de Presidentes AHCIET17-18 Noviembre, 2004

Summary

Who is Telecom Italia?

Telecom Italia in Latin America

Cooperacion Government-Enterprises

7D. Mario Fumi VIII Cumbre de Presidentes AHCIET17-18 Noviembre, 2004

Telecom Italia in Latin America

Venezuela

Bolivia

BrazilPeru

ArgentinaChile

Paraguay

TIM companies

Telecom Italia companies

Telecom Italia colligated companies

8D. Mario Fumi VIII Cumbre de Presidentes AHCIET17-18 Noviembre, 2004

TI Latin American Wireless Activities

VENEZUELA Market*

% Penetration: 29.9%Mobile lines (‘000): 7,775CAGR ’04-’09: 3.8%

DIGITEL 1st half 2004**

% Market Share: 17.7% Technology GSM (100%)

Revenues (€ mln) 80EBITDA (€ mln) 25Capex/Rev. 6.0%

Employees 842

PERU Market*

% Penetration: 13.5%Mobile lines (‘000): 3,738CAGR ’04-’09: 13.5%

TIM PERU 1st half 2004**

% Market Share: 23% Technology GSM (100%)

Revenues (€ mln) 71EBITDA (€ mln) 8Capex/Rev. 12.4%

Employees 605

BRAZIL Market*

% Penetration: 35.4%Mobile lines (‘000): 63,443CAGR ’04-’09: 5.9%

TIM BRASIL 1st half 2004**

% Market Share: 19.3% Technology GSM /TDMA

Revenues (€ mln) 800EBITDA (€ mln) 137Capex/Rev. 26.5%

Employees 6,387

BOLIVIA Market*

% Penetration: 17.5%Mobile lines (‘000): 1,615CAGR ’04-’09: 9.4%

MOVIL DE ENTEL 1st half 2004**

% Market Share: 67% Technology GSM / TDMA

Revenues (€ mln) 33EBITDA (€ mln) 15Capex/Rev. 4.1%

ARGENTINA Market*

% Penetration: 29.7%Mobile lines (‘000): 11,488CAGR ’04-’09: 6.8%

PARAGUAY Market*

% Penetration: 21.4%Mobile lines (‘000): 1,306CAGR ’04-’09: 7.6%

CHILE Market*

% Penetration: 61.0%Mobile lines (‘000): 9,373CAGR ’04-’09: 2.0%

ENTEL PCS 1st half 2004**

% Market Share: 40.5% Technology GSM (100%)

Revenues (€ mln) 226EBITDA (€ mln) 91Capex/Rev. 13.3%

Employees 1,508

*Source: Pyramid Research – Epected EoY 2004** In IT GAAP

9D. Mario Fumi VIII Cumbre de Presidentes AHCIET17-18 Noviembre, 2004

ARGENTINA Penetration 2004 2009Narrowband Subscriber Lines 22,1% 23,2%Broadband Subscriber Lines 1,1% 2,8%

Personal Computers 11,1% 13,5%Internet Users 13,3% 21,7%Internet Accounts 4,6% 6,3% Narrowband 3,5% 3,5% Broadband 1,1% 2,8% Private Circuit 0,3% 0,3%

ENTEL CHILE (wireline)1st Half 2004*

Fixed Lines (‘000) 98Narrowband (‘000) 162Broadband (‘000) 70

Revenues (€ mln) 299EBITDA (€ mln) 71Employees 2.649Capex/Rev. 6.6%

LOCALLOCAL LONG DISTANCELONG DISTANCEINTERNETINTERNET

(dial-up, dedicated, (dial-up, dedicated, broadband)broadband)

ADVANCED ADVANCED SERVICESSERVICES

DATADATA

COMPLETE PORTFOLIO OF SERVICESCOMPLETE PORTFOLIO OF SERVICES

CHILE Penetration 2004 2009Narrowband Subscriber Lines 21,1% 20,2%Broadband Subscriber Lines 3,1% 4,6%

Personal Computers 11,3% 13,0%Internet Users 20,5% 26,8%Internet Accounts 6,4% 7,4% Narrowband 3,2% 2,8% Broadband 3,1% 4,6% Private Circuit 0,1% 0,1%

ENTEL BOLIVIA (wireline)1st Half 2004*

Fixed Lines (‘000) 45Narrowband (‘000) 10Broadband (‘000) 5

Revenues (€ mln) 40EBITDA (€ mln) 17Employees 882 (fixed + mobile)

Capex/Rev. 8.1%

TI Latin American Wireline Activities

Source: Pyramid Research

Source: Pyramid Research * IT GAAP

10D. Mario Fumi VIII Cumbre de Presidentes AHCIET17-18 Noviembre, 2004

Summary

Who is Telecom Italia?

Cooperacion Government-Enterprises

Telecom Italia in Latin America

11D. Mario Fumi VIII Cumbre de Presidentes AHCIET17-18 Noviembre, 2004

Evolution of the sector during the time

• Initial phase• liberalization

Government

12D. Mario Fumi VIII Cumbre de Presidentes AHCIET17-18 Noviembre, 2004

Property (neutral towards the rules)• public• privat

Aministration• market• Technology• rules

Enterprises

13D. Mario Fumi VIII Cumbre de Presidentes AHCIET17-18 Noviembre, 2004

Universal acces• Shared among all the actors• Balance between objective and institution

Dinamic of the develop• All and imediately• Unicity of the approch

Diffusion of the services

14D. Mario Fumi VIII Cumbre de Presidentes AHCIET17-18 Noviembre, 2004

Stability of the rules during the time• Planification of the develop• Fundamental in the evaluation of the

business

“set of rules” not “risk”

Environment condition to do investment

MUCHAS GRACIAS !D. Mario Fumi

Presidente ENTEL BOLIVIADirectivo TELECOM ITALIA