TIM to build most advanced IP network in Brazil

Operator invests 20 million BRL deploying new router system to expand voice, data and video capacity

Brazil, Rio de Janeiro, September 9, 2011 – As part of its infrastructure technology development project, TIM is investing 20 million BRL to improve its network quality and expand its capacity. The new initiative includes replacing all the core IP equipment (National Multiservice IP Network) with the Cisco® CRS-3 Carrier Routing System. TIM has been a pioneer in Brazil and is one of the first telecom operators in the Latin America to use these routers. It plans to conclude installation of all 12 routers by the end of November.

The new generation of routers has an individual capacity of up to 4.5 terabits per second, up to 14 times faster than the equipment currently used by TIM and up to three times faster than other market technologies. Manufactured by Cisco, one of the major companies on the IP network market, and deployed in partnership with Italtel, the CRS-3 routing system is the platform for evolving towards latest-generation networks. The equipment enables transmission capability, quality, security and technology for current and future applications (Internet, video, voice and cloud services) by offering clients incremental speed, reliability and security for voice and data traffic.

"TIM is the first operator in Brazil and the second in Latin America to invest in the most advanced technology in IP networking equipment. With the capacity provided by this new equipment, you can download more than 15 high-definition films per minute, enabling a higher standard of quality, for example, allowing data flows to be redirected seamlessly in case of a fault", said Claudio Merulla, the executive in charge of TIM Brazil's Transport network.

"Cisco is excited to be involved in building one of Latin America's most sophisticated backbones, helping TIM raise the bar in network infrastructure. TIM, Cisco and Italtel have overcome all of the challenges which arose during each phase of the project with speed and determination, underlining the close relationship between all three companies", said Rodrigo Dienstmann, service provider director at Cisco Brazil.

Eight of the routers will be installed in the core network and four will be used for peering (providing Internet access). The new system will meet users' growing need for connectivity both on the residential and corporate fixed and mobile telephony markets as well as other national and international backbones.

"Just seven months after the scope of the project was defined, we procured and validated the equipment in line with Telecom Italia standards and started physical deployment, activating three routers. Over the next three months, we will also complete commercial activation. This is an ambitious project which came to fruition thanks to the collaboration with Cisco and Italtel, allowing TIM to build the advanced IP network in Brazil", said Merulla.

About TIM

Operating in Brazil since 1998, TIM was the first mobile carrier with a footprint in every state in the country. As it focused on anticipating consumer demand, through innovation and quality, the company's subscriber base jumped from 36 to practically 55.5 million clients between March 2009 and February 2011, posting growth of over 50% in the quarter and obtaining a 25.55% market share. This performance is based on a strategic move to reposition the brand, introducing innovative products and service and investing in network quality. In 2001 alone, the company is expected to invest 2.9 billion BRL in infrastructure.

Negotiations to expand the network include the Intelig acquisition in December 2009 and AES Atimus in July 2011. In July 2011, TIM also signed an agreement with Telebrás to take part in the National Broadband Program as the first mobile operator to contribute towards universal Internet access in Brazil. This reinforces the strategy to improve mobile access to the Internet and offer smartphones and data plans at increasingly competitive price. Additionally, TIM signed an agreement with the LT Amazonas consortium to install a fiber optic network over electricity transmission towers in the states of Amazonas, Pará and Amapá, increasing digital inclusion of populations in remote regions of the country.

In July 2011, TIM was accepted onto the BM&FBOVEPSA New Market, which recognizes companies with the highest level of corporate governance and Tim is the only telecom operator in this segment on the stock market. For the third consecutive year, the company was part of the Business Sustainability Index portfolio and the recently created Carbon Efficiency Index (ICO2), both part of the BM&BOVESPA.

For further information, visit www.tim.com.br or http://twitter.com/timtimportimtim.

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