TIM closes femtocell deal with Alcatel-Lucent

                TIM closes femtocell deal with Alcatel-Lucent

PR Newswire

RIO DE JANEIRO, Feb. 26, 2014

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," saidMarco 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 Brazilis 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

SOURCE Alcatel-Lucent; TIM

Website: http://www.alcatel-lucent.com
Contact: Press Contacts, Debora Lafosse, Phone: +55 21 3626-3733, Mobile: +55
11 98272-5339, E-mail:debora.lafosse@cdn.com.br; Renata Fraga, Phone: +55 21
3626-3729, Mobile: +55 11 97955-4171, E-mail:renata.fraga@cdn.com.br
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