“Market Cap $22.81 B As of May 2014
At a Glance
- Industry: Telecommunications services
- Founded: 1908
- Country: Italy
- CEO: Marco Patuano
- Website: www.telecomitalia.it
- Employees: 65,623
- Sales: $31.08 B
- Headquarters: Rome
#574 Global 2000
- #299 in Sales
- #262 in Assets
- #485 in Market value
Telecom Italia SpA engages in the telecommunications industry. It offers technological infrastructures and platforms, information and communication technology, and media solutions. The company intends to enhance the convergence of technology with commercial offers on the one hand and clients’ needs on the other. It operates through the following geographical and specific business segments: Domestic, Brazil, Argentina, Media, Olivetti, and Other. The Domestic segment includes domestic fixed-line and mobile-line voice and data services provided to end users and other carriers, Telecom Italia Sparkle Group business, and associated support operations. The Brazil segment includes telecommunications operations in Brazil such as TIM Brazil and Intelig Telecomunicacoes. The Argentina segment comprises fixed-line and mobile telecommunications in Argentina through Telecom Argentina and Telecom Personal and mobile services in Paraguay via Nucleus. The Media segment includes television network-related activities and operations. The Olivetti segment focuses on the development and manufacturing of digital printing systems and office products and information technology services. The Other segment includes finance companies and other minor companies not related to the business of Telecom Italia Group. Telecom Italia was founded in August 1994 and is headquartered in Milan, Italy.“
“Telecom Italia History
Telecom Italia was officially created on 27 July 1994 by the union of several telecommunication companies among which SIP, Iritel, Italcable, Telespazio and Sirm. This was due to a plan of riorganization of the telecommunication sector presented by IRI to the Minister of Treasury. In 1995 the mobile division was spun off into TIM. Interbusiness division and Tin division were created and in the same time. In 1996 TIM introduced in Italy its rechargeable SIM cards. (GSM) and one year later launched the short messaging service (SMS) capability.
In 1997 the company was privatized by the former Italian Premier Romano Prodi for 13 billions € (the Agnellis bought the 6.6% of Telecom Italia).In 1999 Telecom Italia was bought by Roberto Colannino.
In 2001 the company had a lot of debts. In 2001 the company was bought by Marco Tronchetti Provera.
In 2002, Telecom Italia 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 the home telephone numbers (without a home telephone number you couldn’t get the ADSL service).
Telecom Italia Media, born in 2003 from Seat Pagine Gialle, focused its business on television sector with La7 and MTV channels.
Telecom Italia had bigger debts in 2005, it acquired Tin.it and Virgilio from Telecom Italia Media, the multimedia company of the Group.In 2005 CEO Tronchetti Provera resigns.
Telecom Italia Group provides services in in Brazil as TIM Brasil, in Argentina and Paraguay with Telecom Argentina Group.
In 2007 the company was bought by “Telco” (Telco is composed by Telefónica and several Italian banks).
In February 2008 Telecom Italia created “Open Access”, a feature to manage technological infrastructure activities. Open Access was the basis for the dialogue between Telecom Italia and the Authority for Communication Guarantees.
In 2002 Telecom Italia subscribed to the United Nation corporate responsibility initiative Global Compact. The company continues to promote a sustainability strategy that includes environmental and social issues. The company is a 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 theBovespa’s ISE (Índice de Sustentabilidade Empresarial) index.
The shareholders’ meeting of 12 April 2011 appointed these directors: Franco Bernabè, Aldo Minucci, Marco Patuano, Lucia Calvosa, Jean-Paul Fitoussi, Renato Pagliaro, Luigi Zingales, Gaetano Miccichè, Mauro Sentinelli, Gabriele Galateri di Genola, Massimo Egidi, Elio Cosimo Catania,Tarak Ben Ammar, Izuel Cesareo Alierta, Julio Esteban Linares Lopez.
At 31 December 2012 Telecom Italia Group reached revenues for 29,503 million euro, 11,645 million euro of EBITDA, 1,627 million euro of loss and had capital expenditures for 5,196 million euro. The net financial debt was 28,274 million euros.
Telefónica currently owns 46% of Telco, the holding company that controls 22% of Telecom Italia, Italy’s former government–owned telephone company. 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.
*Information from Forbes.com and Wikipedia.org
**Video published on YouTube by “Telecom Italia Group“