Telecom Italia CEO Marco Patuano recently outlined the company’s Capex (capital spending) plans to roll out networks and better mobile customer experience.
The telecom operator during an analyst call revealed that its three year Capex plan which combining Italy and Brazil will be close to €14 billion. Telecom Italia will earmark about 1/4th of this amount for technology innovation in Italy.
Some of the investment plan is for replacing old generation VoIP platform with interactive media system ones. The migration to a single all IP contact center will be another focus area.
Telecom Italia will also spend for phasing out of ATM platform and rationalizing national long-distance transport and back-boning.
The company is looking at evolving its platforms to a single integrated client management system. At present, Telecom Italia has 16,000 servers and more than 1000 applications.
The telecom service provider will enable all traditional channel functionalities to operate via digital routes such as web, apps, social, significantly lowering the cost to serve.
In Brazil, 2014 Capex will be slightly higher than the previous year. Telecom Italia Capex in Brazil in 2013 was more than in 2012. Capex stood at €1.35 billion with a double digit growth of 14.3 percent year-on-year. It is keen to tap data demands during the Football World Cup this year in Brazil. It is nearing the completion of 3G coverage and focusing more on 4G now.
In Italy, Capex will be almost in-line with 2013 level and it will be €3 billion. LTE 4G, increase in the coverage, improve the quality especially indoor, etc. will be the thrust areas in Italy.
“We’re reducing with the transformation project Capex in traditional technologies. The reduction will be more or less in 100 million for the network and something less for the IT. And important reduction in commercial Capex namely product that have to be treated as Capex because are linked to multi-year commercial plans that will be decreased quite significantly,” said Telecom Italia CEO Marco Patuano.
