to download Telecom Italia Annual Report 2011 - Company Reporting

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Besides the summary by market segment reported above, sales information by technology (fixed and
mobile) is also presented below as a continuation of the information presented in the annual and interim
reports of the previous periods.
Revenues of the Business Unit by technology and market segment are reported below:
(millions of euros) 2011 2010 Change %
Market segment Total Fixed (*) Mobile (*) Total Fixed (*) Mobile (*) Total Fixed (*) Mobile (*)
Consumer 9,217 4,409 4,973 9,739 4,674 5,275 (5.4) (5.7) (5.7)
Business 3,267 2,182 1,126 3,509 2,336 1,220 (6.9) (6.6) (7.7)
Top 3,322 2,585 826 3,511 2,724 887 (5.4) (5.1) (6.9)
National Wholesale 2,103 3,028 154 2,076 2,934 234 1.3 3.2 (34.2)
Other 214 220 35 230 201 76 (7.0) 9.5 (53.9)
Total Core Domestic 18,123 12,424 7,114 19,065 12,869 7,692 (4.9) (3.5) (7.5)
International Wholesale 1,393 1,393 1,569 1,569 (11.2) (11.2)
Eliminations (484) (276) (566) (322)
Total Domestic 19,032 13,541 7,114 20,068 14,116 7,692 (5.2) (4.1) (7.5)
(*) The breakdown by fixed and mobile technology is presented gross of intersegment eliminations.
Fixed-line Telecommunications Revenues
Fixed-line telecommunications revenues amount to 13,541 million euros in 2011, decreasing
575 million euros compared to 2010 (-4.1%; -3.8% in organic terms, of which -3.5% relates to revenues
from services). Such contraction is largely attributable to the reduction in retail accesses, which at
December 31, 2011 total 14.7 million lines (-4.6% compared to December 31, 2010), but which is
showing signs of slowing down - thanks to sales policies aimed at maintaining and recapturing
customers – even though the reference market features a general decline. As for broadband services,
conversely, sales are basically steady due to a client portfolio that is more or less stable in a market
environment that identifies with fierce competition. The total broadband portfolio is equal to 9.1 million
accesses (+31,000 compared to December 31, 2010), of which 7.1 million are retail accesses, with a
market share of 53%, down from 2010 (-1.8 percentage points), and 2.0 million wholesale accesses.
The following table shows the trend of revenues in the major areas of business:
2011 2010 Change
(millions of euros) % of total % of total amount %
Retail voice 5,681 41.9 6,133 43.4 (452) (7.4)
Internet 1,688 12.5 1,751 12.4 (63) (3.6)
Business data 1,617 11.9 1,655 11.7 (38) (2.3)
Wholesale 4,155 30.7 4,171 29.5 (16) (0.4)
Other 400 3.0 406 3.0 (6) (1.5)
Total Fixed-line
Telecommunications Revenues 13,541 100.0 14,116 100.0 (575) (4.1)
Mobile Telecommunications Revenues
Although revenues in the mobile sector are still contracted, the sector displays a structural improvement
in sales performance which confirms the merit of the repositioning strategy adopted for the mobile
business: the customer base totals about 32.2 million lines and grew from the end of 2010
by 1.2 million mainly in light of higher acquisitions and stable churn rates (21.9% compared to 22.0% in
2010).
Mobile telecommunications revenues are 7,114 million euros in 2011, decreasing 578 million euros
compared to 2010 (-7.5%, or -7.1% in organic terms), with a progressive and constant improving trend
Report on Operations The Business Units of the Telecom Italia Group – Domestic 48