Telecom Italia

TIM S.p.A., also operating under the name Telecom Italia, is an Italian telecommunications company headquartered in Rome and Milan, which provides telephony services, mobile services, and DSL data services. It is the largest Italian telecommunications services provider in revenues and subscribers. It was founded in 1994 by the merger of several state-owned telecommunications companies, the most important of which was Società Italiana per l'Esercizio Telefonico p.A., (known as SIP, from the earlier Società Idroelettrica Piemontese), the former state monopoly telephone operator in Italy.[3]

The company's stock is traded in the Borsa Italiana. Since 2017 the Italian State exercises the "Golden Power", which allows the government to take actions to protect the strategic interests of the country, over Telecom Italia.[4]

TIM S.p.A.
Listed
Traded asBITTIT
NYSETI
IndustryTelecommunications
Founded1925 as Stipel
1964 as SIP
1994 as Telecom Italia
2015 as TIM (Commercial rebrand only)
Headquarters,
Key people
Luigi Gubitosi (CEO), Fulvio Conti (Chairman)
ProductsFixed Telephony
Mobile Telephony
Broadband Internet
IT Services
Networking Solutions
Digital television
RevenueDecrease 18.94 billion (2018)[1]
Decrease €-1.15 billion (2018)[1]
Total assetsDecrease €65.62 billion (2018)[1]
OwnerVivendi (23.94%)
Cassa Depositi e Prestiti (9.89%)[2]
Number of employees
Decrease 54,423 (2018 average)[1]
SubsidiariesTIM Brasil
INWIT
Olivetti
Websitewww.telecomitalia.com

History

1925–64: Stipel and early mandatory phone tax

In 1925, the phone network was reorganised by the Benito Mussolini cabinet and the company Stipel was established in the same year. The original core of Telecom Italia included 4 companies: TIMO, Teti, TELVE and SET. Each of them operated in a specific geographical area.[5] In 1964 these companies merged in one single group under the name of SIP.

1964–94: SIP - Società Italiana per l'Esercizio Telefonico

In 1964, Società Idroelettrica Piemontese (SIP), a former energy company founded in 1918, ceased producing energy and acquired all of the Italian telephone companies, becoming SIP - Società Italiana per l'Esercizio Telefonico. It was run by the Italian Ministry of Finance.

SIP was a state monopoly from 1964 to 1996 and Italian people had to pay the "Canone Telecom" (a line rental charge of about €120 per year, plus hardware rental and other minor costs) in order to have a phone at home.

1994–2005: Telecom Italia, Telecom Italia Mobile and DSL services

Telecom Italia was officially created on 27 July 1994 by the merger of several telecommunication companies among which SIP, Iritel, Italcable, Telespazio and Sirm.[6][7] This was due to a reorganization plan for the telecommunication sector presented by IRI to the Minister of Finance.

In 1995, the mobile telephony division was spun off as TIM (Telecom Italia Mobile). Interbusiness, Italy’s largest Internet network, was created and in the same period with TIN (Telecom Italia Net) and the first ISPs, internet access became a reality in Italy.[8] In 1996, TIM introduced a new prepaid rechargeable phone card[9] (GSM), and one year later launched short messaging service (SMS) capability. In 1997, under the chairmanship of Guido Rossi, Telecom Italia was privatised and was transformed into a large multimedia group.

By 2001, the company was in debt and was acquired by Marco Tronchetti Provera. The following year, the group released its DSL Flat service in Italy, Alice ADSL, with a download speed of 32 kbit/s and an upload speed of 8 kbit/s for €40/month plus a monthly based tax of €14.57, the "Canone Telecom", besides the mandatory monthly bills for home telephone numbers (a home telephone number was required for ADSL service). Telecom Italia Media, the group's multimedia company, was formed in 2003 from Seat Pagine Gialle, focussing its business on the television sector with La7 and MTV channels.[10]

After the reorganization of editorial activities, in 2005 Telecom Italia acquired Tin.it and Virgilio from Telecom Italia Media.[11]

The Telecom Italia Group also operates in South America; in Brazil as TIM Brasil, and in Argentina and Paraguay with Telecom Argentina Group. TIM Brasil has its local headquarters in Rio de Janeiro.[12]

2005–14: Telecom Italia Spa acquired by Telefónica

Telecom Italia reported mounting debts in 2005, and, one year later, CEO Marco Tronchetti Provera resigned.[13]

In 2007 the company was bought by Telco, a consortium of Telefónica and several Italian banks.[14] Telefónica owned 46% of Telco, the holding company that controlled 22% of Telecom Italia.

In late 2013, Telefónica announced its intention to acquire the entirety of Telco by January 2014, potentially becoming Telecom Italia's largest shareholder. The plan, however, is being challenged by the Brazilian competition authority since Telefónica and Telecom Italia, with Vivo and TIM respectively, are the two largest telephone companies competing in Brazil.

2015-Present: Rebrand

In 2015, Telecom Italia Group started a rebranding process of the telephony and mobile businesses under the single TIM brand.[15] In the same year, the Board of Directors approved the new company's division, the Infrastrutture Wireless Italiane, or INWIT, which operates 11,500 wireless towers.[16][17]

It was revealed in October 2015 that shareholders Vivendi would raise their stakes further in the company from its current level of 15.49%.[18] As of May 2017, Vivendi owns 24.6% of the company with Vivendi's CEO Arnaud de Puyfontaine becoming Executive Chairman of Telecom Italia.[19] Amos Genish is the new CEO since 28 September 2017 and he has been criticized to have fired 4500 Telecom Italia employees in June 2018.[20] He has been substituted by Luigi Gubitosi that became the new CEO on 18 November 2018.[21]

Legal Problems

Telecom Italia Mobile illegal charging money for "free" Internet providing renewals

Telecom Italia Mobile illegally charged money for Internet providing renew subscriptions for 5 years to its customers during the "free" subscription renewals.[22]

Fraud in Brazilian prepaid mobile lines

On 8 August 2012, TIM Brasil became involved in a massive scandal in Brazilian news after the release of report by the Brazilian National Telecommunications Agency Anatel.[23]

The report points that on TIM's prepaid voice plan (24.7% market share), called "Infinity" (in which the user pays roughly US$0.12 for each unlimited time call), the calls were intentionally dropped by the company, forcing the customers to make (and pay for) new calls to keep talking. In just one day, 8.1 million calls were dropped and the total profit was approximately $2 million. Upon release of the report, the Public Ministry of the Paraná State filed a lawsuit against TIM asking that it stop selling new mobile lines in Brasil and pay a multimillion-dollar fine for the damages against consumers.[24]

Operations

The Telecom Italia Group provides phone landline services and mobile services in Italy, GSM mobile phone services in Italy and Brazil through its TIM subsidiary, (TIM Brasil), and DSL internet and telephony services in Italy and San Marino. It also operates in international telecommunication services for other operators and corporations, through its subsidiary Telecom Italia Sparkle. In 2013, the total amount of the company's debt was about 26 billion €.[25] Telecom Italia has 66,025 employees.

Telecom Italia also controls Olivetti, a manufacturer of computer peripherals and mobile phones. On March 31, 2014, Telecom Italia led both the direct fixed access lines market with a 62% share, and the mobile postpaid segment with a 45% market share. In the mobile “prepaid” segment Telecom Italia owned a 31.5% market share together with Vodafone.[26]

After the merger of Wind and 3 Italia, approved on August 6, 2015, Telecom Italia is now the second country’s largest carrier with 30 million customers, followed by Vodafone with 25 million customers.[27] Telecom Italia has preserved its leadership on the direct fixed access lines market and the mobile postpaid segment.[28]

High Debt Issue

Telecom Italia Spa deals with a total debt of 34 billions Euro as of March 2019.[29] Moody rated the debt with a B1 grade negative outlook in 2015.[30]

Environmental practices and initiatives

In 2002, Telecom Italia subscribed to the United Nations corporate responsibility initiative Global Compact.[31] It is also member of a number of stock market indexes which include companies focused on corporate social responsibility, including the Dow Jones Sustainability Indexes and those administered by FTSE Group's FTSE4Good. Its part-owned Brazilian subsidiary, TIM Participações, is listed in the Bovespa's ISE (Índice de Sustentabilidade Empresarial) index.[32]

Telecom Italia promotes a sustainability strategy including both environmental and social issues: in June 2014 it signed an agreement with A2A to buy energy only from renewable sources.[33]

See also

References

  1. ^ a b c d "Reports & Results". Telecom Italia Corporate. Retrieved 1 July 2019.
  2. ^ "Telecom Italia's Shareholders". www.telecomitalia.com.
  3. ^ "History of Telecom Italia Mobile S.p.A. – FundingUniverse". www.fundinguniverse.com.
  4. ^ "Italy votes to exercise 'golden power' to protect Telecom Italia". Financial Times. 17 October 2017. Retrieved 30 August 2018.
  5. ^ "Economics and politics of telecommunications" (PDF).
  6. ^ "Telecom Italia history on official site".
  7. ^ "nasce Telecom Italia". Corriere.it (in Italian). Archived from the original on 3 August 2012.
  8. ^ "Archivio Corriere della Sera". archiviostorico.corriere.it.
  9. ^ "The economics of mobile telecommunications page 45 reference #50".
  10. ^ "Telecom Italia Media official site". Archived from the original on 13 July 2010.
  11. ^ "News archive on IlSole24ore".
  12. ^ "TIM Participações S.A. (TIM Participações) - BNamericas".
  13. ^ "Pirelli as manager and investor in Telecom Italia (2001-2007)" (PDF). Archived from the original (PDF) on 8 September 2015. Retrieved 24 August 2015.
  14. ^ Burnett, Victoria; Kiefer, Peter (29 April 2007). "Telefónica Gets Controlling Stake in Telecom Italia" – via NYTimes.com.
  15. ^ "Telecom Italia Group: 2015–2017 strategic plan approved, cumulative investments planned totalling around 14.5 billion euros over the three year period". Telecom Italia. Retrieved 2 April 2015.
  16. ^ Aycock, Jason (5 June 2015). "Telecom Italia gets OK for towers IPO, values it at €2.34B". Seeking Alpha.
  17. ^ Lennighan, Mary (5 June 2015). "Telecom Italia gets regulatory OK for €1bn towers IPO". Total Telecom.
  18. ^ "Exclusive: Vivendi moves to raise Telecom Italia stake to around 19 percent - sources". Reuters. 1 October 2015.
  19. ^ "Telecom Italia appoints Vivendi's CEO as chairman". 1 June 2017 – via Reuters.
  20. ^ "Tim, scatta la cassa integrazione: in un anno gli esuberi arriveranno a 4.500". L'HuffPost. 17 May 2018.
  21. ^ Economia, Redazione (18 November 2018). "Chi è Gubitosi, l'uomo delle operazioni difficili". Corriere della Sera.
  22. ^ "Ecco come Tim frega 4 euro al rinnovo delle promozioni - Tecnosfera". 30 May 2013.
  23. ^ "G1 – TIM derruba os sinais de clientes de forma proposital, aponta relatório – notícias em Paraná". G1.globo.com. Retrieved 17 August 2012.
  24. ^ "G1 – Ministério Público pede a suspensão de venda de chips da TIM no Paraná – notícias em Paraná". G1.globo.com. Retrieved 17 August 2012.
  25. ^ Costanza Iotti. "Telecom, Patuano prepara la guerra a Fossati. In ballo c'è uno stipendio da 1 milione - Il Fatto Quotidiano". Il Fatto Quotidiano. Retrieved 21 April 2015.
  26. ^ "Osservatorio Trimestrale sulle Telecomunicazioni". Agcom.it.
  27. ^ "Pyramid Research - The merger Wind-3 Italia may unlock convergence opportunities". www.pyramidresearch.com.
  28. ^ "Tlc, nozze tra Wind e 3 Italia. Fusione da 6,4 mld per il nuovo leader del mercato mobile".
  29. ^ "Debt Structure". Telecom Italia Corporate.
  30. ^ "Moody's assigns Ba1 to Telecom Italia's Unsecured Equity-Linked Bonds; negative outlook". Moodys.com. 25 March 2015.
  31. ^ "Sustainability Report 2009" (PDF). Telecom Italia. Retrieved 27 July 2010.
  32. ^ "Notice Bovespa ISE". TIM Participações S.A. Retrieved 29 April 2013.
  33. ^ "Telecom Italia signs an agreement with A2A to buy energy only from renewable sources".

External links

2003 Italian Open (tennis)

The 2003 Italian Open (also known as 2003 Rome Masters or its sponsored title 2003 Telecom Italia Masters) was a tennis tournament played on outdoor clay courts. It was the 60th edition of the Italian Open and was part of the Tennis Masters Series of the 2003 ATP Tour and of Tier I of the 2003 WTA Tour. Both the men's and women's events took place at the Foro Italico in Rome in Italy. The men's tournament was played from May 5 through May 11, 2003 while the women's tournament was played from May 12 through May 18, 2003.

2003 Italian Open – Men's Singles

Andre Agassi was the defending champion but lost in the first round to David Ferrer.

Félix Mantilla won in the final 7–5, 6–2, 7–6(10–8) against Roger Federer.

2004 Italian Open (tennis)

The 2004 Italian Open (also as 2004 Rome Masters or sponsored title 2004 Telecom Italia Masters) was a tennis tournament played on outdoor clay courts. It was the 61st edition of the Italian Open and was part of the Masters Series of the 2004 ATP Tour and of Tier I of the 2004 WTA Tour. Both the men's and women's events took place at the Foro Italico in Rome in Italy. The men's tournament was played from May 3 through May 9, 2004 while the women's tournament was played from May 10 through May 16, 2004.

2004 Italian Open – Men's Singles

Félix Mantilla was the defending champion but lost in the second round to Mariano Zabaleta.

Carlos Moyá won in the final 6–3, 6–3, 6–1 against David Nalbandian.

Alice Home TV

Alice Home TV was Telecom Italia S.p.A. IPTV service in Italy launched in November 2005.

Sky Italia and Mediaset Premium channels were available with a separate subscription.

Comedy Central (Italian TV channel)

Comedy Central is an Italian television channel broadcasting comedy-related programmes from the United States, the United Kingdom and Italy. It is owned by Viacom International Media Networks Europe.

Italian Open (golf)

The Italian Open is the Italian national open golf championship for men. It was founded in 1925 and has been part of the European Tour's schedule since the tour was founded in 1972. The 2018 event was the 75th edition of the championship.

The 2016 Italian Open was played in September at the Golf Club Milano in Monza with a prize fund of €3 million. In 2017 it became one of the European Tour Rolex Series events, moving to October, with total prize money of US$ 7 million. The 2018 tournament was played in late May and early June at Gardagolf Country Club near Lake Garda.

La7

La7 is an Italian free-to-air television channel owned by Cairo Communication. Until 2013 it was owned by Telecom Italia Media and operated by Telecom Italia. The head office is located in Rome.

Signal overspill means that parts of Albania, Croatia, Switzerland, Malta, Monaco, Montenegro, San Marino, the Vatican City and Slovenia also receive La7 broadcasts.

MTV (Italy)

MTV is an Italian pay television network, owned by Viacom International Media Networks and operated by Sky Italia.

MTV Brand New (Italy)

MTV Brand New was an Italian television channel which played mainly Indie music videos with many music-related themed zones and some productions from MTV USA like Beavis and Butt-head, subtitled in Italian.

It was broadcast only on SKY Italia channel 706 (available also on Italian IPTV services).

The channel was replaced by MTV Rocks on January 10, 2011.

MTV Classic (Italian TV channel)

MTV Classic was an Italian pay television channel that centred its programming schedule to former music video hits from the 1970s, 1980s and 1990s. The channel was based on the Videomusic library. It was launched on 2007 as MTV Gold, and was rebranded as MTV Classic on 10 January 2011. It was closed down on 31 July 2015.

MTV Hits (Italian TV channel)

MTV Hits was an Italian television channel and plays chart hits non-stop with many music-related themed zones. It was broadcast on Sky Italia channel 704 and on IPTV services. The channel ended its broadcast on July 31, 2015.

MTV Pulse (Italy)

MTV Pulse Italy was an Italian television channel and like MTV Hits broadcast chart hits non-stop with many music-related themed zones and a lot of programming from MTV and MTV Italy. Broadcast only on SKY Italia channel 707 (but also available on Italian IPTV services).

On 10 January 2011 MTV Pulse Italy was closed down and its frequencies were taken over by the pan-European music channel MTV Dance.

Nick Jr. (Italian TV channel)

Nick Jr. is an Italian television channel, aimed at a pre-school children audience. It launched on 31 July 2009 on Sky Italia on channel 602 to replace Rai YoYo, although it is still airing on selected cable providers.

From November 10, 2008, Nick Jr. switches to Channel 603. Since July 4, 2011 of the timeshift service called Nick Jr. +1, which offers the same Nick Jr. programming one hour after the numbering 604. Since 10 June 2013, together with the timeshift Nick Jr. +1 the channel broadcasts in wide-screen 16:9 and were renewed bumper, graphics and promos.

Nickelodeon (Italian TV channel)

Nickelodeon is an Italian television channel launched on 1 November 2004 on Sky Italia.

From 1997 until 2000, Rai Sat 2 broadcast Nickelodeon cartoons for three hours a day.

Olivetti

Olivetti S.p.A. is an Italian manufacturer of typewriters, computers, tablets, smartphones, printers and other such business products as calculators and fax machines. Headquartered in Ivrea, in the Metropolitan City of Turin, the company has been part of the Telecom Italia Group since 2003. The first commercial programmable "desktop computer", the Programma 101, was produced by Olivetti in 1964 and was a commercial success.

QOOB

QOOB was an Italian television channel owned by MTV Italy, launched in 2005 and permanently closed in 2009.

TIMvision

TIMvision is an Internet video on demand (VOD) service by Telecom Italia in Italy. It offers television shows, movies and TV series, for rental or purchase through the use of a decoder as well as video on demand, smart TV, Android and IOS device. From 2018, TIMvision produces original TV shows, such as the Italian version of Skam, known as Skam Italia.

Tivùsat

tivùsat is a free-to-air/free-to-view digital satellite television platform, launched by the joint venture between RAI, Mediaset and Telecom Italia Media, and serving Italy, Vatican City and San Marino.

The service has been marketed since 31 July 2009 and offers a satellite alternative for many of those unable to receive the digital terrestrial television in Italy. Tivù Sat comprises free-to-air and free-to-view channels available on national television networks, and can be watched using a subscription card for Italian users purchasing a compatible receiver with Nagravision scrambling system. It is also not in English.

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