Telecom Italia

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Telecom Italia Spa
Spa
Industry Telecommunications
Founded 1925 as Stipel, 1964 as SIP, 1996 as Telecom Italia, 2015 as TIM (Commercial rebrand only)
Headquarters Rome, Italy
Key people
Marco Patuano (CEO)
Products DSL services, mobile telephony
€4 billion (2014),[1] and total debt €34 billion[1]
Number of employees
66025[1]

Telecom Italia is an Italian telecommunications company which provides telephony services, mobile services, and DSL services. It was founded in 1994 in a merger of several state-owned telecommunications companies, the most important of which was SIP, from the initials of Società Idroelettrica Piemontese. The company's stock is traded in the Borsa Italiana.

History[edit]

1925–64: Stipel company and early mandatory phone tax[edit]

The phone network in northern Italy was reorganised by Benito Mussolini cabinet; Stipel company (SIP predecessor) was estabilished in 1925. It served the phone network in northern Italy until 1964.

1964–96: SIP company[edit]

SIP, the former company name, was founded in 1964. It was run by the Italian government, Ministry of Treasury. SIP is the short name for Società Idroelettrica Piemontese. It was the unique Phone Network monopolist in Italy from 1964 to 1996 and Italian people had to pay the "Canone Telecom" (Mandatory Telecom Tax of about €120 per year plus hardware and bills) in order to have a phone at home.

1996–2005: Telecom Italia and Telecom Italia mobile and DSL services[edit]

Telecom Italia and Telecom Italia Mobile companies were born in 1996 from SIP. Telecom Italia Mobile was Telecom Italia's mobile phone brand from 1996 to February 2015. TIM runs GSM, EDGE, HSPA and LTE networks. In Brazil TIM is second largest operator with 74 millions customers and runs a GSM, EDGE, UMTS, HSPA and LTE network. TIM Brasil has its Brazilian headquarter in Rio De Janeiro.[citation needed]

In Italy, 4G LTE is active in 2,560 cities,[citation needed] including: Ancona, Bari, Bologna, Cagliari, Catania, Florence, Genoa, Milan, Naples, Palermo, Perugia, Pescara, Reggio Calabria, Rome, Trento, Trieste and Turin. 3G 42.2 MB/s is active in 2500 cities of Italy[citation needed]. It was the first mobile phone provider in Italy for 35 million costumers and coverage. TIM runs a GSM, HSPA (3G, third-generation mobile Internet) and LTE (4G, fourth-generation mobile Internet).

In 2001 the company had a lot of debts; in the same year 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).[2]

Telecom Italia Media, born in 2003 from Seat Pagine Gialle, focused its business on television sector with La7 and MTV channels.[3]

In 2002, Telecom Italia released its ADSL 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).[2] Telecom Italia Media, born in 2003 from Seat Pagine Gialle, focused its business on television sector with La7 and MTV channels.[3]

2005–14: Telecom Italia Spa bought by Telefonica[edit]

Telecom Italia had bigger debts in 2005,[4] it acquired Tin.it and Virgilio from Telecom Italia Media, the multimedia company of the Group.[5] In 2005 CEO Tronchetti Provera resigned.[4] In 2007 the company was bought by "Telco" (Telco is composed by Telefónica and several Italian banks). Telefónica currently owns 46% of Telco, the holding company that controls 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. The company operates network telephone services in Italy, GSM mobile phone services in Italy and Brazil through its TIM subsidiary, and DSL internet and telephony services in Italy and San Marino.

TIM operates in international professional telecommunication services for other operators or corporations through TI sparkle. In 2013, the total amount of the company's debt is about €26 billion.[6] Telecom Italia controls Olivetti, a company peripherals and mobile phones and computer company.

Italian people had to mandatory pay the "Canone Telecom" from 1964 until the 2000s, a monthly based tax of 14.57€, besides the monthly bills for the home telephone numbers.[2]

National fraud in Brazilian prepaid mobile lines[edit]

On 8 August 2012, TIM Brazil became involved in a massive scandal in Brazilian news after the release of report by the Brazilian National Telecommunications Agency Anatel.[7]

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 Brazil and pay a multi million dollar fine for the damages against consumers.[8]

2015: Rebrand[edit]

In 2015 it started a rebranding process of the telephony and mobile branch under the single TIM brand.[9]

INWIT[edit]

Infrastrutture Wireless Italiane, or INWIT, is the company's division which operates 11,500 wireless towers.[10] In 2015, approval was secured for a stock offering supporting this division.[11]

References[edit]

External links[edit]