Gruppo TIM, legally TIM S.p.A. (formerly Telecom Italia S.p.A.), also known as the TIM Group in English, is an Italian

telecommunications company A telephone company, also known as a telco, telephone service provider, or telecommunications operator, is a kind of communications service provider (CSP), more precisely a telecommunications service provider (TSP), that provides telecommunicat ...

with

headquarters Headquarters (commonly referred to as HQ) denotes the location where most, if not all, of the important functions of an organization are coordinated. In the United States, the corporate headquarters represents the entity at the center or the to ...

Rome , established_title = Founded , established_date = 753 BC , founder = King Romulus ( legendary) , image_map = Map of comune of Rome (metropolitan city of Capital Rome, region Lazio, Italy).svg , map_caption ...

Milan Milan ( , , Lombard: ; it, Milano ) is a city in northern Italy, capital of Lombardy, and the second-most populous city proper in Italy after Rome. The city proper has a population of about 1.4 million, while its metropolitan city ...

, and

Naples Naples (; it, Napoli ; nap, Napule ), from grc, Νεάπολις, Neápolis, lit=new city. is the regional capital of Campania and the third-largest city of Italy, after Rome and Milan, with a population of 909,048 within the city's adm ...

, (with the

Telecom Italia Tower Telecom may refer to: * Telecommunications ** A telephone company (or ''telecommunications service provider'') ** The telecommunications industry * Telecom Animation Film, a Japanese studio See also * Telcom (disambiguation) * Telekom (disamb ...

) which provides fixed telephony and DSL data services. It is the largest Italian telecommunications services provider in revenues and subscribers. It was founded in 1994 by the

merger Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspec ...

of several

state-owned State ownership, also called government ownership and public ownership, is the ownership of an industry, asset, or enterprise by the state or a public body representing a community, as opposed to an individual or private party. Public owne ...

telecommunications companies, the most prominent of which was Società Italiana per l'Esercizio Telefonico p.A., (known as ''SIP''), the former state monopoly telephone operator in Italy. The company's stock is traded in the

Borsa Italiana Borsa Italiana, based in Milan, is the Italian stock exchange. It manages and organises domestic market, regulating procedures for admission and listing of companies and intermediaries and supervising disclosures for listed companies.italy24.i ...

. Since 2017, the Italian State exercises on TIM the "Golden Power", which allows the government to take a number of actions when the strategic interests of the country are concerned.

History

1925–1964: 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. In 1964, these companies merged in one single group under the name of SIP.

1964–1994: 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 Telespazio Spa is a European spaceflight services company founded in 1961. It is a joint venture owned by Leonardo (67%) and Thales Group (33%) headquartered in Rome. Telespazio provides services that include the design and development of space ...

and Sirm (companies owned by STET). 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 The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, p ...

access became a reality in Italy. In 1996, TIM introduced a new prepaid rechargeable phone card ( GSM), and one year later launched short messaging service (

SMS Short Message/Messaging Service, commonly abbreviated as SMS, is a text messaging service component of most telephone, Internet and mobile device systems. It uses standardized communication protocols that let mobile devices exchange short text ...

) 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 MTV (Originally an initialism of Music Television) is an American cable channel that launched on August 1, 1981. Based in New York City, it serves as the flagship property of the MTV Entertainment Group, part of Paramount Media Networks, a di ...

channels. After the reorganization of editorial activities, in 2005 Telecom Italia acquired Tin.it and Virgilio from Telecom Italia Media. The Telecom Italia Group also operates in

South America South America is a continent entirely in the Western Hemisphere and mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere at the northern tip of the continent. It can also be described as the sou ...

; in Brazil as

TIM Brasil TIM S.A. is a Brazilian telecommunications company, subsidiary of TIM S.p.A., which provides mobile and fixed telephony services. TIM Brasil was founded as a company in 1995, started commercial operations in 1998 and since 2002 has consolida ...

, and in Argentina and Paraguay with

Telecom Argentina Telecom Argentina S.A. is the major local telephone company for the northern part of Argentina, including the whole of the city of Buenos Aires. Briefly known as ''Sociedad Licenciataria Norte S.A.'', it quickly changed its name, and is usually kn ...

Group. TIM Brasil has its local headquarters in

Rio de Janeiro Rio de Janeiro ( , , ; literally 'River of January'), or simply Rio, is the capital of the state of the same name, Brazil's third-most populous state, and the second-most populous city in Brazil, after São Paulo. Listed by the GaWC as a b ...

. Telecom Italia also had a 50% share in the Bolivian telecommunications company Entel until its share was nationalised by the Bolivian government in 2008.

2005–2014: Telecom Italia Spa acquired by Telefónica

Telecom Italia reported mounting debts in 2005, and, one year later, CEO Marco Tronchetti Provera resigned. In 2007 the company was bought by Telco, a consortium of Telefónica and several Italian banks.

Telefónica Telefónica, S.A. () is a Spanish multinational telecommunications company headquartered in Madrid, Spain. It is one of the largest telephone operators and mobile network providers in the world. It provides fixed and mobile telephony, broadba ...

owned 46% of Telco, the holding company that controlled 22% of Telecom Italia. In late 2013,

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. 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. It was revealed in October 2015 that shareholders Vivendi would raise their stakes further in the company from its current level of 15.49%. As of May 2017, Vivendi owns 24.6% of the company with Vivendi's CEO Arnaud de Puyfontaine becoming Executive Chairman of Telecom Italia. 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. He has been substituted by Luigi Gubitosi that became the new CEO on 18 November 2018.

TIM

TIM, formerly Telecom Italia Mobile, is an Italian

telecommunications Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that ...

company A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared ...

owned by Gruppo TIM. Founded as a

mobile telephony Mobile telephony is the provision of telephone services to phones which may move around freely rather than stay fixed in one location. Telephony is supposed to specifically point to a voice-only service or connection, though sometimes the l ...

company in 1995, since 2015 it has become a brand that provides mobile, fixed telephony, and

Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, p ...

services. 4G is available in 6,849 cities (96.3% of the country). 4G+ has speeds of up to 180–225 Mbit/s exploiting the 4G carrier aggregation which is now available in more than 600 cities including: Rome, Milan, Turin, Naples, Florence, Genoa, Palermo, Catania, Bari and Venice. 3G 42.2 Mbit/s is available in 4,282 cities (84.2%). TIM sponsors

Serie A The Serie A (), also called Serie A TIM for national sponsorship with TIM, is a professional league competition for football clubs located at the top of the Italian football league system and the winner is awarded the Scudetto and the Cop ...

. TIM has a

subsidiary A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company or having a ...

Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...

, known as

, with 72.6 million customers. The brand covers over 114 million customers worldwide.

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.

Fraud in Brazilian prepaid mobile lines

On 8 August 2012,

became involved in a massive scandal in Brazilian news after the release of report by the Brazilian National Telecommunications Agency Anatel. 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.

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, (

), and DSL internet and telephony services in Italy and

San Marino San Marino (, ), officially the Republic of San Marino ( it, Repubblica di San Marino; ), also known as the Most Serene Republic of San Marino ( it, Serenissima Repubblica di San Marino, links=no), is the fifth-smallest country in the world an ...

. 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 €. Telecom Italia has 66,025 employees. Telecom Italia also controls

Olivetti Olivetti S.p.A. is an Italian manufacturer of 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 par ...

, 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 Vodafone Group plc () is a British multinational telecommunications company. Its registered office and global headquarters are in Newbury, Berkshire, England. It predominantly operates services in Asia, Africa, Europe, and Oceania. , Vod ...

. After the merger of

Wind Wind is the natural movement of air or other gases relative to a planet's surface. Winds occur on a range of scales, from thunderstorm flows lasting tens of minutes, to local breezes generated by heating of land surfaces and lasting a few ...

and 3 Italy, approved on August 6, 2015, Telecom Italia is now the country's second largest carrier with 30 million customers, followed by

with 25 million customers. Telecom Italia has preserved its leadership on the direct fixed access lines market and the mobile postpaid segment.

High Debt Issue

Telecom Italia Spa deals with a total debt of 27 billion Euro as of the end of 2019. Moody rated the debt with a B1 grade negative outlook in 2015.

Environmental practices and initiatives

In 2002, Telecom Italia subscribed to the

United Nations The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmoni ...

corporate responsibility Corporate responsibility is a term which has come to characterize a family of professional disciplines intended to help a corporation stay competitive by maintaining accountability to its four main stakeholder groups: customers, employees, share ...

initiative Global Compact. It is also member of a number of stock market indexes which include companies focused on corporate social responsibility, including the

Dow Jones Sustainability Index The Dow Jones Sustainability Indices (DJSI) launched in 1999, are a family of indices evaluating the sustainability performance of thousands of companies trading publicly, operated under a strategic partnership between S&P Dow Jones Indices and Ro ...

es and those administered by

FTSE Group FTSE International Limited trading as FTSE Russell ( "Footsie") is a British provider of stock market indices and associated data services, wholly owned by the London Stock Exchange (LSE) and operating from premises in Canary Wharf. It operate ...

FTSE4Good The FTSE4Good Index Series is a series of ethical investment stock market indices launched in 2001 by the FTSE Group which reports on the performance of companies which demonstrate "strong Environmental, Social and Governance practices". A numbe ...

. Its part-owned Brazilian subsidiary, TIM Participações, is listed in the

Bovespa B3 S.A. - Brasil, Bolsa, Balcão (in English, ''B3 - Brazil Stock Exchange and Over-the-Counter Market''), formerly BM&FBOVESPA, is a stock exchange located in São Paulo, Brazil, and the second oldest of the country. Its current form can be trac ...

's ISE (Índice de Sustentabilidade Empresarial) index. Telecom Italia promotes a

sustainability Specific definitions of sustainability are difficult to agree on and have varied in the literature and over time. The concept of sustainability can be used to guide decisions at the global, national, and individual levels (e.g. sustainable livi ...

strategy including both environmental and social issues: in June 2014 it signed an agreement with

A2A A2A S.p.A. is an Italian company, organised as a ''società per azioni'', that generates, distributes, and markets renewable energy, electricity, gas, integrated water supply, and waste management services. The company has significant presence in ...

to buy energy only from

renewable sources A renewable resource, also known as a flow resource, is a natural resource which will replenish to replace the portion depleted by usage and consumption, either through natural reproduction or other recurring processes in a finite amount of ti ...

References

External links

* * {{Authority control Mobile phone companies of Italy Telecommunications companies of Italy Companies based in Rome Telecommunications companies established in 1994 Italian companies established in 1994 Companies formerly listed on the New York Stock Exchange Privatized companies of Italy Italian brands Vivendi Bolloré