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 TIM Group's headquarters in Rome, Italy | |
| Formerly | Telecom Italia S.p.A.(1994–2016) |
|---|---|
| Company type | Public |
| BIT: TIT BIT: TITR FTSE MIB | |
| ISIN | IT0003497168 IT0003497176 |
| Industry | Telecommunications |
| Predecessor | SIP |
| Founded | 27 July 1994; 30 years ago (1994-07-27) |
| Founder | IRI |
| Headquarters | , Italy |
Area served | Italy |
Key people | [1] |
| Products | |
| Revenue |  €16.296 billion (2023)[2] |
 €−1.107 billion (2023) | |
| Total assets | €69.19 billion (2021) |
| Total equity | €17.41 billion (2021) |
| Owners |
|
Number of employees | 51,929 (end 2021) |
| Subsidiaries | List
|
| Website | www.gruppotim.it |
TIM S.p.A. (formerlyTelecom Italia S.p.A.) is an Italiantelecommunications company withheadquarters inRome,Milan, andNaples (with theTelecom Italia Tower), which providesfixed,public andmobile telephony, andDSL data services.[8][9]
It is the largest Italian telecommunications services provider in revenues and subscribers. It was founded in 1994 by themerger of severalstate-owned telecommunications companies, the most prominent of which wasSIP, the former state monopoly telephone operator in Italy.[10][11][12]
The company's stock is traded in theBorsa 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.
It has also asubsidiary inBrazil, known asTIM Brasil,[13] with 72.6 million customers.[14] The brand covers over 114 million customers worldwide.[15]
As April 2024, Net sales are distributed geographically as follows: Italy (72.9%) and Brazil (27.1%).
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In 1925, the Italian phone network was reorganised by theBenito Mussolini cabinet and the companySTIPEL was established in the same year. The original core of Telecom Italia included four companies which operated in a specific geographical area.:[16]TIMO,TE.TI.,TELVE andSET.
In 1964,Società Idroelettrica Piemontese (SIP), a former energy company founded in 1918, ceased producing energy and acquired all of the Italian telephone companies, becomingSocietà Italiana per l'Esercizio Telefonico. It was run by theItalian Ministry of Finance.[citation needed]
SIP was astate monopoly from 1964 to 1996 and Italian people had to pay the "Canone Telecom" (aline rental charge of about €120 per year[citation needed], plus hardware rental and other minor costs) in order to have a phone at home.
The first appearance in theItalianmobile telephony market dates back to 1990 with the launch of theTACSnetwork by the Telecom Italia Mobile Radio Servicesdivision.
Telecom Italia was officially created on 27 July 1994 by the merge of several telecommunications companies among which SIP,IRITEL,Italcable,Telespazio andSIRM (companies owned bySTET).[17] This was due to a reorganization plan for thetelecommunications sector presented byIRI to the Minister of Finance.
In 1995, themobile telephony division was spun off asTelecom Italia Mobile (TIM),[18][19][20][21][22][23] while Telecom Italia, under managing director Francesco Chirichigno,[24] would take care of fixed andpublic telephony andnetwork infrastructure. On 7 October, after the experimentation period at theCSELT, TIM launched the firstrechargeableprepaid card for Italy, theTIM Card,[25] becoming the first telephone company in the world to introduce this charging system. Towards the end of 1996 TIM was the first worldoperator to launch a tariff plan based on a prepaid card on theGSM network, which in a short time generated rapid growth in mobile telephony. Interbusiness, Italy's largestinternet network, was created and in the same period withTelecom Italia Net (Tin.it) and the firstInternet Service Providers (ISPs),internet access became a reality in Italy.[26] In 1996, TIM introduced a newprepaid rechargeable phone card[27] (GSM), and one year later launchedshort messaging service (SMS) capability.
In 1997, under thechairmanship ofGuido Rossi, Telecom Italia was privatised and was transformed into a large multimedia group.[28]
In February 1997, TIM received theGSM World Award for marketing inCannes, an important acknowledgment from the association that brings together GSM network operators from all over the world, thanks to the success of the prepaid card (over 800,000 customers in less than four months since the start of marketing).[29]
In 1999, an experimentation plan ofUMTS was launched withEricsson. This3G mobile radio system would have made it possible toaccess the internet athigher speeds, transmit data and access multimedia services.[30]
By 2001, the company was in debt and was acquired byMarco Tronchetti Provera. The following year, the group released itsDSL 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 hometelephone numbers (a home telephone number was required forADSL service).Telecom Italia Media, the group's multimedia company, was formed in 2003 fromSEAT Pagine Gialle, focussing its business on thetelevision sector withLa7 andMTVchannels.[31]
After the reorganization ofeditorial activities, Telecom Italia acquired Tin.it andVirgilio from Telecom Italia Media in 2005 .[32]
The Telecom Italia Group also operates inSouth America; inBrazil asTIM Brasil, and inArgentina andParaguay withTelecom Argentina. TIM Brasil has its local headquarters inRio de Janeiro.[33] Telecom Italia also had a 50% share in theBolivian telecommunications companyEntel until its share was nationalised by theBolivian government in 2008.[34][35]
In 2002, TIM was the firstmobile telecommunications company inEurope to launchMMS services.[36][37] Between 2002 and 2004, it launched somevalue-added services: SMS and MMS content,Internetbrowsing usingWAP technology, games andJava applications.
In 2003, the world's firstmobile television service was launched, exploiting the video playback capabilities appearing on mobile terminals in that period and, again in 2003, it stipulated aninternational roaming agreement, similar to that ofVodafone, with operators world's leading mobile (T-Mobile,Orange andTeliaSonera). This alliance will be calledFreeMove.[38]
In 2004, as part of theTIM Turbo project, theEDGE andUMTS services were created for high-speed data transmission.
In 2005, the first Italianmobile community,TIM Tribù, was formed.[39]
In June 2005, TIM merged into Telecom Italia, remaining active as brand for Telecom Italia's mobile telephony offer.[40]
Telecom Italia reported mounting debts in 2005, and, one year later,CEO Marco Tronchetti Provera resigned.[41]
In 2007 the company was bought by Telco, a consortium ofTelefónica and severalItalian banks.[42] Telefónica owned 46% of Telco, theholding company that controlled 22% of Telecom Italia.
In December 2011, the company developedTIM Cloud, acloud storage service dedicated to its customers where they can savedigital files.[43]
In November 2012, TIM launched itsLTE network.[44]
TheTIM Wallet service was born in February 2013, to be able to make payments viasmartphone thanks toNFC technology.[45]
In late 2013, Telefónica announced its intention to acquire the entirety of Telco by January 2014, potentially becoming Telecom Italia's largestshareholder.[46][47] The plan, however, is being challenged by the Brazilian competition authority since Telefónica and Telecom Italia, withVivo and TIM respectively, are the two largest telephone companies competing in Brazil.
In 2014, multimedia entertainment services were launched through the TIMgames, TIMmusic, TIMreading andTIMvisionapplications.[48]
In 2015, the company started arebranding process towards the unified TIMbrand, which would no longer be used only to identify mobile telephony offers but also for fixed telephony ones, abandoning the Telecom Italia brand.[49][50][51][52][53] In the same year, theboard of directors approved the new company's division,Infrastrutture Wireless Italiane (INWIT) which operates 11,500wireless towers.[54][55]
TIM was the Official Global Partner ofExpo 2015. Thanks to the company's contribution, it was possible to create the first Italian digitalsmart city, directly in the exhibition area. TIM has in fact equipped the entire area with technological solutions, fixed network, mobile and Internet infrastructures and coverage of the exhibition site with fixed and mobileultra-broadband connections andWi-Fi connections based onCisco technology.[56]
It was revealed in October 2015 that shareholdersVivendi would raise their stakes further in the company from its current level of 15.49%.[57] As of May 2017, Vivendi owns 24.6% of the company with Vivendi's CEOArnaud de Puyfontaine becomingexecutive chairman of Telecom Italia.[58] 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.[59] He has been substituted by Luigi Gubitosi, who became the new CEO on 18 November 2018.[60]
In 2016, following the rebranding that led to the adoption of the single TIM brand, theparent company also decided to change its identity. The company name of Telecom Italia it was in fact changed to TIM Group, however still maintaining the previous name on some occasions.[61]
On 12 June 2024Moody's improves its rating on TIM, raising it to Ba3 from B1.[62][63]
On 1 July 2024 the transfer of the network to KKR took place, with a debt reduction of 22 billion euros.[64] The operation values the network at a total of 18.8 billion euros, expandable up to 22 billion with the earn outs also linked to the possible merger between NetCo andOpen Fiber.
On 9 July 2024,S&P, after the sale of the network to the KKR, promoted the TIM Group to BB from the previous B+, with the outlook remaining stable.[65]
On July 31, 2024, Tim presented its half-yearly results, with a debt that after the sale of the network settles at 8.1 billion euros, with a further reduction of 0.6 billion expected for the end of the year. TIM had a turnover of 7.1 billion euros (+3.5%) and an EBITDA of 2.1 (+9.4%).[66]Fitch, following Moody's and S&P, upgraded the rating to BB with a stable outlook.
On August 19, 2024, TIM announces a partnership withNokia to enhance the 5G mobile network inBrazil.[67]
On October 2, 2024, TIM examines the proposal formulated by theItalian Ministry of Economy and Finance together with the Asterion fund for the purchase of the entire share ofSparkle. TIM would thus conclude the debt restructuring process by collecting an additional 700 million euros.[68]
On 23 October 2024, corruption charges are formulated by theGuardia di Finanza and the Rome Prosecutor's Office against the director Simone De Rose, head of the Procurement function office of TIM Group and Emilio Graziano, manager ofNTT Data Italia.[69]TIM immediately appoints a new manager, Giampaolo Leone. TIM evaluates a request for compensation for damages to the dishonest employee and collaborates with the Guardia di Finanza inspectors in the investigation.[70]
On November 5, 2024, the subsidiaryTIM Brasil has continued to show strong growth in revenues and profits, confirming itself as a strong cash flow generator for the group.[71][72]
On 13 November 2024, TIM Group published Q3/9M 2024 Financial Results. TIM Group has revenues growing to €10.7 billion with gross operating margin rising to €2.7 billion, while Tim's adjusted net financial debt after lease is €8.0 billion.[73][74][75]
On 17 December 2024,CVC Capital Partners is evaluating the purchase of Vivendi's entire stake in Telecom Italia and the stock rises by 5.7%.[76][77]
On 13 January 2025, the Milan court rejected the appeal presented by Vivendi against the board of directors for the sale of TIM's network.[78][79] On 15 January 2025, TIM's board of directors discussed the offer presented by theMinistry of Economy and Finance and Retelit for the sale ofSparkle.[80] The proposed offer is approximately 700 million euros for full control of Sparkle.[81][82] Furthermore, 20 January 2025 is also the deadline for TIM to negotiate with the Italian government an agreement on the refund of the 1998 license fee, an agreement worth hundreds of millions of euros.[83] If both deals go through, there could be a further €1.8 billion cut in TIM's already reduced debt. On 15 January 2025, the stock closed the trading day with a +0.47% at a price of €0.258, confirming a bullish trend that takes it away from the minimum values reached last year.[84]On February 12, 2025, Tim Group presents the 2024 financial statements with growing profits and approves the sale of Sparkle for 700 million which will be completed during the year. It also communicates the postponement of share dividends to 2026.[85]
On February 17, 2025, there is a share exchange withPoste Italiane of the share held byCdp, in this way Poste Italiane becomes a shareholder of Tim and Cdp exits totally from the share capital of Tim with a cash consideration andNexi shares. Poste Italiane is not only a major shareholder, but also a strategic partner of Tim, in theItalian Government's view of protecting and strengthening Tim as an important Italian asset.[86][87]On 5 March 2025, Tim Group presents improving financial data with after-lease debt at 7,266 million euros.[88][89]
Starting from March 18, 2025, Vivendi will progressively reduce its stake in the share capital from 23.75% to 18.4%. On March 21, 2025, this reduction of the share is communicated to CONSOB.[90]On March 28, 2025, Poste Italiane buys 15% of Tim from the share held byVivendi and increases the previous share held to 24.8%. The portion of the shares purchased byPoste Italiane cost approximately 684 million at 0.2975 euros per share. With this stock transaction, Poste Italiane becomes the majority shareholder of TIM Group.[91]
The mainshareholders of TIM Group on 15 October 2024 are:[92]
| Name | % |
|---|---|
| Vivendi | 23,75 % |
| Cassa Depositi e Prestiti | 9,81 % |
| Foreign institutional investors | 40,64 %[93] |
| Other shareholders | 20,84 % |
| Istituzionali italiani | 4,33 % |
| Own shares | 0,63 % |
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.[94]
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.[95]
In 2013, TIM was accused by consumers of unfair practices, such as charging 4 euros with a particular New Flat Day Free tariff.[96]
The Telecom Italia Group provides phone landline services and mobile services in Italy, GSM mobile phone services in Italy and Brazil through itsTIM andTIM Brasilsubsidiaries, andDSL Internet and telephony services in Italy andSan Marino (throughTelecom Italia San Marino). It also operates in internationaltelecommunications services for other operators and corporations, through its subsidiaryTelecom Italia Sparkle. In 2013, the total amount of the company's debt was about 26 billion €.[97] Telecom Italia has 66,025 employees.
Telecom Italia also controlsOlivetti, 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 mobilepostpaid segment with a 45% market share. In the mobile "prepaid" segment Telecom Italia owned a 31.5% market share together withVodafone.[98]
After the merger of3 Italy andWind, completed on 31 December 2016 with the born ofWind Tre, Telecom Italia is now the country's second largest carrier with 30 million customers, followed byVodafone with 25 million customers.[99] Telecom Italia has preserved its leadership on the direct fixed access lines market and the mobile postpaid segment.[100]
The high accumulated debt was mainly due to the 1999 takeover bid carried out byRoberto Colaninno, who acquired the company and subsequently offloaded the purchase costs onto the company itself.[101][102]
Telecom Italia S.p.A. deals with a total debt of €27 billion as of the end of 2019.[103] Moody rated the debt with a B1 grade negative outlook in 2015.[104] 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.[105]
On 1 July 2024, with the finalization of the sale of the network to KKR, the debt was reduced by €22 billion. So TIM Group no longer has high debt.[106][107][108] The remaining debt is in sharp reduction.[109][110] Less than €7.5 billion by the end of 2024.[66]
In 2002, Telecom Italia subscribed to theUnited Nationscorporate responsibility initiativeGlobal Compact.[111] It is also member of a number of stock market indexes which include companies focused on corporate social responsibility, including theDow Jones Sustainability Indexes and those administered byFTSE Group'sFTSE4Good. Its part-owned Brazilian subsidiary,TIM Brasil, is listed in theBovespa's ISE (Índice de Sustentabilidade Empresarial) index.[112]
Telecom Italia promotes asustainability strategy including both environmental and social issues: in June 2014 it signed an agreement withA2A to buy energy only fromrenewable sources.[113]
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