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TheStreet Open House

TIM Closes Femtocell Deal With Alcatel-Lucent

RIO DE JANEIRO, Feb. 26, 2014 /PRNewswire/ -- 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 (Euronext Paris and NYSE: ALU), 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.

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