Italian telecommunications company
TIM S.p.A.
(formerly
Telecom Italia S.p.A.
) is an Italian
telecommunications company
with
headquarters
in
Rome
,
Milan
, and
Naples
(with the
Telecom Italia Tower
), which provides
fixed telephony
and
DSL
data
services
.
[4]
[5]
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 prominent of which was
SIP
, the former state monopoly telephone operator in Italy.
[6]
[7]
[8]
The
company
's stock is traded in the
Borsa Italiana
. The Italian State has exercised the "Golden Power" on TIM since 2017, which allows the government to take a number of actions when the strategic interests of the country are concerned.
TIM Group has also a
subsidiary
in
Brazil
, known as
TIM Brasil
, with 72.6 million customers.
[9]
The brand covers over 114 million customers worldwide.
[10]
History
[
edit
]
1925?1964: STIPEL and early mandatory phone tax
[
edit
]
In 1925, the
Italian
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 four companies which operated in a specific geographical area.:
[11]
TIMO
,
TE.TI.
,
TELVE
and
SET
.
1964?1994: SIP
[
edit
]
In 1964,
Societa Idroelettrica Piemontese
(SIP), a former
energy company
founded in 1918, ceased producing
energy
and
acquired
all of the Italian
telephone companies
, becoming
Societa Italiana per l'Esercizio Telefonico
(SIP). It was run by the
Italian Ministry of Finance
.
[
citation needed
]
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
[
edit
]
Telecom Italia S.p.A.
was officially created on 27 July 1994 by the
merger
of several
telecommunications companies
among which SIP,
IRITEL
,
Italcable
,
Telespazio
and
SIRM
(companies owned by
STET
).
[12]
[13]
This was due to a reorganization plan for the
telecommunications sector
presented by
IRI
to the Minister of Finance.
In 1995, the
mobile telephony
division
was spun off as
Telecom Italia Mobile
(TIM), while Telecom Italia, under managing director Francesco Chirichigno,
[14]
would take care of
fixed
and
public telephony
and
network infrastructures
. Interbusiness, Italy's largest
Internet
network
, was created and in the same period with
Telecom Italia Net
(Tin.it) and the first
ISPs
,
Internet access
became a reality in Italy.
[15]
In 1996, TIM introduced a new
prepaid rechargeable phone card
[16]
(
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
.
[17]
After the reorganization of
editorial
activities, Telecom Italia acquired Tin.it and
Virgilio
from Telecom Italia Media in 2005 .
[18]
The Telecom Italia Group also operates in
South America
; in
Brazil
as
TIM Brasil
, and in
Argentina
and
Paraguay
with
Telecom Argentina
. TIM Brasil has its local
headquarters
in
Rio de Janeiro
.
[19]
Telecom Italia also had a 50% share in the
Bolivian
telecommunications company
Entel
until its share was nationalised by the
Bolivian government
in 2008.
[20]
[21]
2005?2014: Telecom Italia acquired by Telefonica
[
edit
]
Telecom Italia reported mounting debts in 2005, and, one year later,
CEO
Marco Tronchetti Provera resigned.
[22]
In 2007 the company was bought by Telco, a consortium of
Telefonica
and several
Italian banks
.
[23]
Telefonica owned 46% of Telco, the
holding company
that controlled 22% of Telecom Italia.
In late 2013, Telefonica announced its intention to acquire the entirety of Telco by January 2014, potentially becoming Telecom Italia's largest
shareholder
.
[24]
[25]
The plan, however, is being challenged by the Brazilian competition authority since Telefonica and Telecom Italia, with
Vivo
and TIM respectively, are the two largest telephone companies competing in Brazil.
2015: Rebrand
[
edit
]
In 2015, the company started a
rebranding
process towards the unified TIM
brand
, which would no longer be used only to identify mobile telephony offers but also for fixed telephony ones, abandoning the Telecom Italia brand.
[26]
[27]
[28]
[29]
In the same year, the
board of directors
approved the new company's division,
Infrastrutture Wireless Italiane
(INWIT) which operates 11,500
wireless towers
.
[30]
[31]
2015?2018:Vivendi
[
edit
]
It was revealed in October 2015 that shareholders
Vivendi
would raise their stakes further in the company from its current level of 15.49%.
[32]
As of May 2017, Vivendi owns 24.6% of the company with Vivendi's CEO
Arnaud de Puyfontaine
becoming
executive chairman
of Telecom Italia.
[33]
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.
[34]
He has been substituted by Luigi Gubitosi that became the new CEO on 18 November 2018.
[35]
In 2016, following the rebranding that led to the adoption of the single TIM brand, the
parent company
also decided to change its identity. The company name of Telecom Italia S.p.A. it was in fact changed to
TIM S.p.A.
, however still maintaining the previous name on some occasions.
[36]
2018:Elliott
[
edit
]
2019:Telecom Italia renamed TIM Group
[
edit
]
In 2019 Telecom Italia was renamed into the TIM Group.
[37]
2023?Present: spin-off NetCo
[
edit
]
On March 7, 2024 at the TIM Capital Market Day presentation, the stock collapsed during the day with -23.79%, with a price of €0.2118.
[38]
During the day approximately more 13% of the share capital was traded.
[39]
[40]
It has a market cap of $5.02 Billion.
The following day the stock closed the trading day up by +4.82% at a price of €0.222.
Consob
is investigating the stock collapse of March 7, 2024.
[41]
On 8 March 2024, it has a market cap of $6.85 Billion.
On Monday 11 March 2024, after an emergency cda meeting called the day before, on Sunday, further data are specified to the market, the stock has a further decline of -4.59% returning to the closing of the stock market session at the price of €0.2118, same price as Thursday 7 March 2024. Despite the purchase on the market of 500,000 shares by the CEO, Pietro Labriola, investors are not inclined to support the business development plan presented by the CEO.
[42]
[43]
[44]
On March 14, 2024, the stock closed the trading day up by +3.49% at a price of €0.2197.
[45]
On March 21, 2024, according to the Financial Times, the shares collapsed after the presentation of the business development plan for bearish positions of around 1 billion euros.
[46]
[47]
The stock closed the trading day down by -4.03% at a price of €0.2143.
On May 29, 2024, the first quarterly report of 2024 is presented. The group's total revenues amounted to 3.9 billion euros, up 1.2% year on year. However, net debt after lease rises by another billion to 21.4 billion.
[48]
As of May 2024 TIM has a market cap of $5.77 Billion. On May 29, 2024, the shares, before the presentation of the quarterly report, closed trading at €0.2452.
On May 30, 2024, the stock opened with a sharp decline and lost up to 10% over the course of the trading day, but around 5.15 pm before the close of trading the news arrived that the European Union had approved the sell of the network at
KKR
and then the stock has a vertical rise with a gain of +1.55% closing at a price of €0.249.
[49]
[50]
[51]
Main shareholders
[
edit
]
The main
shareholders
of TIM Group on 25 November 2022 are:
[52]
[53]
The main
shareholders
of TIM Group on 18 May 2023 are:
[54]
Legal problems
[
edit
]
Telecom Italia Mobile illegal charging money for "free" Internet providing renewals
[
edit
]
Telecom Italia Mobile
illegally charged money for Internet providing renew subscriptions for 5 years to its customers during the "free" subscription renewals.
[55]
Fraud in Brazilian prepaid mobile lines
[
edit
]
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.
[56]
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 Parana 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.
[57]
Operations
[
edit
]
The Telecom Italia Group provides phone landline services and mobile services in Italy, GSM mobile phone services in Italy and Brazil through its
TIM
and
TIM Brasil
subsidiaries
, and
DSL
Internet and telephony services in Italy and
San Marino
(through
Telecom Italia San Marino
). It also operates in international
telecommunications 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 €.
[58]
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
.
[59]
After the merger of
Wind
and
3 Italy
, approved on August 6, 2015, Telecom Italia is now the country's second largest carrier with 30 million customers, followed by
Vodafone
with 25 million customers.
[60]
Telecom Italia has preserved its leadership on the direct fixed access lines market and the mobile postpaid segment.
[61]
High Debt Issue
[
edit
]
The high accumulated debt is mainly due to the 1999 takeover bid carried out by
Roberto Colaninno
, who acquired the company and subsequently offloaded the purchase costs onto the company itself.
[62]
[63]
Telecom Italia S.p.A. deals with a total debt of 27 billion Euro as of the end of 2019.
[2]
Moody rated the debt with a B1 grade negative outlook in 2015.
[64]
As of the end of 2023, the net financial debt after lease for the TIM Group stood at €20.3 billion. Additionally, the adjusted net financial debt was €25.7 billion.
[65]
Environmental practices and initiatives
[
edit
]
In 2002, Telecom Italia subscribed to the
United Nations
corporate responsibility
initiative
Global Compact
.
[66]
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 Brasil
, is listed in the
Bovespa
's ISE (Indice de Sustentabilidade Empresarial) index.
[67]
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
.
[68]
Logo history
[
edit
]
-
1994-2003
-
2003-2016
-
2016-2019
-
2019-
See also
[
edit
]
References
[
edit
]
- ^
"Salvatore Rossi - Presidente Telecom Italia | Gruppo TIM"
. Telecomitalia.com
. Retrieved
22 November
2019
.
- ^
a
b
c
d
e
f
"Annual report"
(PDF)
.
www.telecomitalia.com
. 2021
. Retrieved
3 April
2022
.
- ^
"TIM Group's Shareholders"
.
www.gruppotim.it
. Retrieved
3 March
2022
.
- ^
"Legal notes | TIM Group"
.
www.telecomitalia.com
. Retrieved
9 November
2019
.
- ^
"Profile | TIM Group"
.
www.telecomitalia.com
. Retrieved
9 November
2019
.
- ^
"1980s ? 1990s | TIM Group"
.
www.telecomitalia.com
. Retrieved
9 November
2019
.
- ^
"Business history | archiviostorico.telecomitalia.com"
.
archiviostorico.telecomitalia.com
. Retrieved
28 June
2017
.
- ^
Glover, John (1 November 1995).
"Italy Invigorated"
.
Multichannel News International
. Capital Cities/ABC. p. 28
. Retrieved
16 May
2024
.
- ^
Scott Bicheno (14 January 2016).
"Telecom Italia formally unifies brands under TIM name"
.
telecoms.com
. Retrieved
24 January
2018
.
- ^
"Breaking Barriers to Transform TIM's Brand and Business"
. Interbrand. Archived from
the original
on 21 October 2019
. Retrieved
24 January
2018
.
- ^
"Economics and politics of telecommunications"
(PDF)
.
- ^
"Telecom Italia history on official site"
.
- ^
"nasce Telecom Italia"
.
Corriere.it
(in Italian). Archived from
the original
on 3 August 2012.
- ^
Glover, John (1 November 1995).
"Italy Invigorated"
.
Multichannel News International
. Capital Cities/ABC. p. 30
. Retrieved
16 May
2024
.
- ^
"Archivio Corriere della Sera"
.
archiviostorico.corriere.it
.
- ^
"The economics of mobile telecommunications page 45 reference #50"
.
- ^
"Telecom Italia Media official site"
. Archived from
the original
on 13 July 2010.
- ^
"News archive on IlSole24ore"
.
- ^
"TIM Participacoes S.A. (TIM Participacoes) - BNamericas"
.
- ^
"Bolivia acepta arbitraje por nacionalizacion de una telefonica"
(in Spanish). El Comercio. 27 August 2008
. Retrieved
13 April
2010
.
[
dead link
]
- ^
"UPDATE 1-Bolivia announces takeover of Telecom Italia unit"
.
Reuters
. 1 May 2008
. Retrieved
17 September
2020
.
- ^
"Pirelli as manager and investor in Telecom Italia (2001-2007)"
(PDF)
. Archived from
the original
(PDF)
on 8 September 2015
. Retrieved
24 August
2015
.
- ^
Burnett, Victoria; Kiefer, Peter (29 April 2007).
"Telefonica Gets Controlling Stake in Telecom Italia"
.
The New York Times
.
- ^
Mesco, Gabriele Lamonica And Manuela (23 September 2013).
"Telefonica in Talks to Become Majority Stakeholder in Telecom Italia's Holding Company"
.
Wall Street Journal
.
ISSN
0099-9660
. Retrieved
2 April
2021
.
- ^
Emsden, Christopher.
"Telefonica to take control of Italy's Telco"
.
MarketWatch
. Retrieved
2 April
2021
.
- ^
"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
.
- ^
"Telecom Italia diventa TIM"
.
in.tim.it
(in Italian)
. Retrieved
13 August
2015
.
- ^
"Telecom Italia diventa TIM - La Nuova TIM"
.
in.tim.it
(in Italian)
. Retrieved
13 August
2015
.
- ^
"Nuovo sito TIM Telecom italia"
.
www.tim.it
(in Italian)
. Retrieved
13 August
2015
.
- ^
Aycock, Jason (5 June 2015).
"Telecom Italia gets OK for towers IPO, values it at €2.34B"
.
Seeking Alpha
.
- ^
Lennighan, Mary (5 June 2015).
"Telecom Italia gets regulatory OK for €1bn towers IPO"
.
Total Telecom
.
- ^
"Exclusive: Vivendi moves to raise Telecom Italia stake to around 19 percent - sources"
.
Reuters
. 1 October 2015. Archived from
the original
on 2 December 2018
. Retrieved
2 July
2017
.
- ^
"Telecom Italia appoints Vivendi's CEO as chairman"
.
Reuters
. 1 June 2017.
- ^
"Tim, scatta la cassa integrazione: in un anno gli esuberi arriveranno a 4.500"
.
L'HuffPost
. 17 May 2018.
- ^
Economia, Redazione (18 November 2018).
"Chi e Gubitosi, l'uomo delle operazioni difficili"
.
Corriere della Sera
.
- ^
"Telecom Italia shareholders' meeting held: all items on the agenda approved | Telecom Italia Group"
.
www.telecomitalia.com
. Retrieved
29 May
2016
.
- ^
"TIM-2019-Annual-Report"
(PDF)
.
gruppotim.it
. gruppotim.it
. Retrieved
7 March
2024
.
- ^
"Telecom Italia"
.
borsaitaliana.it
. borsaitaliana.it
. Retrieved
7 March
2024
.
- ^
"Perche Tim e precipitata in Borsa. I conti sul debito non tornano"
. ilsole24ore.com. ilsole24ore.com. 7 March 2024
. Retrieved
7 March
2024
.
- ^
"Tim crolla a Piazza Affari dopo il piano industriale, dubbi su tempi e percorso del debito. In una seduta bruciati 1,4 miliardi"
. milanofinanza.it. milanofinanza.it. 7 March 2024
. Retrieved
7 March
2024
.
- ^
"Tim, Consob in campo sul crollo di Borsa. Il giallo del 13,5% passato di mano. Domenica Cda straordinario"
. ilsole24ore.com. ilsole24ore.com. 8 March 2024
. Retrieved
8 March
2024
.
- ^
"Telecom cede ancora in Borsa: senza la cessione della rete il debito sale"
. ilsole24ore.com. ilsole24ore.com. 11 March 2024
. Retrieved
12 March
2024
.
- ^
"Per salvarsi Tim adotti il modello Leonardo e non Fs"
. milanofinanza.it. milanofinanza.it. 11 March 2024
. Retrieved
12 March
2024
.
- ^
"Tim integra il piano industriale e Labriola compra 500 mila azioni, ma il titolo perde oltre il 4%: ecco perche. Analisti a confronto"
. milanofinanza.it. milanofinanza.it. 11 March 2024
. Retrieved
12 March
2024
.
- ^
"Tim rialza la testa, negli ultimi giorni scambiato il 48% del capitale"
. ilsole24ore.com. ilsole24ore.com. 14 March 2024
. Retrieved
15 March
2024
.
- ^
"Telecom Italia targeted by short sellers with €1bn bet"
. ft.com. ft.com. 21 March 2024
. Retrieved
21 March
2024
.
- ^
"Tim, quasi 1 miliardo di euro di posizioni ribassiste. Ecco perche il titolo e crollato dopo il piano di Labriola"
. milanofinanza.it. milanofinanza.it. 21 March 2024
. Retrieved
21 March
2024
.
- ^
"Tim, trimestrale in linea prima della vendita della rete. I margini della ServiceCo salgono di oltre il 10%"
. milanofinanza.it. milanofinanza.it. 29 May 2024
. Retrieved
29 May
2024
.
- ^
"Tim: via libera Ue all'acquisto della rete da parte di Kkr. Il titolo passa da -10% a +1,5% in chiusura"
. ilsole24ore.com. ilsole24ore.com. 30 May 2024
. Retrieved
30 May
2024
.
- ^
"TIM, Commissione UE approva acquisizione di NetCo da parte di KKR"
. lastampa.it. finanza.lastampa.it. 30 May 2024
. Retrieved
30 May
2024
.
- ^
"Tim, via libera senza condizioni dell'Ue alla vendita della rete a Kkr. Il titolo risale dopo il crollo"
. milanofinanza.it. milanofinanza.it
. Retrieved
30 May
2024
.
- ^
"Significant Shareholdings"
.
.gruppotim.it
. .gruppotim.it
. Retrieved
19 April
2023
.
- ^
"Telecom Italia"
.
borsaitaliana.it
. borsaitaliana.it
. Retrieved
19 April
2023
.
- ^
"Significant Shareholdings"
.
gruppotim.it
. gruppotim.it
. Retrieved
7 March
2024
.
- ^
"Ecco come Tim frega 4 euro al rinnovo delle promozioni - Tecnosfera"
. 30 May 2013.
- ^
"G1 ? TIM derruba os sinais de clientes de forma proposital, aponta relatorio ? noticias em Parana"
. G1.globo.com. 7 August 2012
. Retrieved
17 August
2012
.
- ^
"G1 ? Ministerio Publico pede a suspensao de venda de chips da TIM no Parana ? noticias em Parana"
. G1.globo.com. 6 August 2012
. Retrieved
17 August
2012
.
- ^
Costanza Iotti (25 March 2014).
"Telecom, Patuano prepara la guerra a Fossati. In ballo c'e uno stipendio da 1 milione - Il Fatto Quotidiano"
.
Il Fatto Quotidiano
. Retrieved
21 April
2015
.
- ^
"Osservatorio Trimestrale sulle Telecomunicazioni"
. Agcom.it.
- ^
"Pyramid Research - The merger Wind-3 Italia may unlock convergence opportunities"
.
www.pyramidresearch.com
.
- ^
"Tlc, nozze tra Wind e 3 Italia. Fusione da 6,4 mld per il nuovo leader del mercato mobile"
.
- ^
"Tim, la cessione della rete e il triste epilogo dell'opa del secolo"
. milanofinanza.it. milanofinanza.it. 8 March 2024
. Retrieved
8 March
2024
.
- ^
"Telecom: come si uccide un'azienda strategica per soldi"
. corriere.it. corriere.it. 24 January 2022
. Retrieved
8 March
2024
.
- ^
"Moody's assigns Ba1 to Telecom Italia's Unsecured Equity-Linked Bonds; negative outlook"
.
Moodys.com
. 25 March 2015.
- ^
"TIM: the Board of Directors has examined the preliminary data at December 31, 2023"
.
gruppotim.it
. gruppotim.it
. Retrieved
8 March
2024
.
- ^
"Sustainability Report 2009"
(PDF)
.
Telecom Italia
. Archived from
the original
(PDF)
on 5 July 2010
. Retrieved
27 July
2010
.
- ^
"Notice Bovespa ISE"
.
TIM Participacoes S.A
. Archived from
the original
on 16 June 2013
. Retrieved
29 April
2013
.
- ^
"Telecom Italia signs an agreement with A2A to buy energy only from renewable sources"
.
Telecom Italia
. 23 June 2014. Archived from
the original
on 24 September 2015
. Retrieved
16 May
2022
.
External links
[
edit
]
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Groupe Canal+
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