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Colombia Telecomunicaciones S.A. E.S.P. operates under the trademark Movistar. It is a joint-stock and mixed company, with the Colombian Government –Ministry of Finance and Public Credit– holding a 32.49984282% share and Telefónica Hispanoamérica S.A. holding a 67.49937427% share. The remaining percentage is held by minority shareholders.

Shareholder structure

(GRI 102-1, 102-2, 102-5)

Although this report only presents information on Telefónica in Colombia, it is important to mention that Telefónica S.A. operates in 14 countries under the trademarks Telefónica, Movistar, Vivo and O2.

Telefónica Hispanoamérica, S.A.

NIT. 900.847.726-9

No. of shares: 2,301,779,819

%: 67.49937427

Colombian Government -
Ministry of Finance and Public Credit

NIT. 899.999.090-2

No. of shares: 1,108,269,271

%: 32.49984282

Otros

Radio Televisión Nacional de Colombia - RTVC

NIT. 900.002.583-6

No. of shares: 10,000

%: 0,00029325

Eduardo Cárdenas Caballero

NIT. 19.210.431

No. of shares: 826

%: 0,00002422

Instituto de Vivienda de Interés Social y Reforma Urbana del Municipio de Bucaramanga - INVISBU

NIT. 804.001.897-0

No. of shares: 2

%: 0,00000006

Shirley Puentes Mercado

NIT. 32.771.179

No. of shares: 9,950

%: 0,00029178

Jhon Jairo Gutiérrez Torres

NIT. 72.225.428

No. of shares: 498

%: 0,00001460

Caja de Previsión Social Municipal de Bucaramanga

NIT. 890.204.851-7

No. of shares: 2

%: 0,00000006

Patricia Cepeda Rodríguez

NIT. 22.656.420

No. of shares: 1,493

%: 0,00004378

Canal Regional de Televisión Ltda. TEVEANDINA

NIT. 830.005.370-4

No. of shares: 200

%: 0,00000586

Cooperativa de Empleados de las Empresas Públicas de Bucaramanga Ltda.

NIT. 800.093.901-1

No. of shares: 2

%: 0,00000006

Darío Cárdenas Navas

NIT. 17.066.629

No. of shares: 885

%: 0,00002595

Área Metropolitana de Bucaramanga

NIT. 890.210.581-8

No. of shares: 2

%: 0,00000006

Central de Inversiones S.A. -CISA-

NIT. 860.042.945-5

No. of shares: 1

%: 0,00000003


Mission

The Company’s mission is to make our world more human, connecting people’s lives. This involves putting technology at people’s service.

Values

The values that define the Company are:

Open

The best solutions are achieved by working in a collaborative, friendly and transparent way. The Company is an open system where everybody counts.

Bold

We offer innovative solutions, transforming people’s lives and making them easier. We are willing to change to do better.

Trusted

We are honest, straightforward and committed, providing a secure connection with the best quality.

Products and services

(GRI 102 - 2)

Mobile
services

  • Prepay
  • Postpay

Fixed
services

  • Landline (basic line)
  • Broadband
  • Television

Digital services

CYBERSECURITY

  • Multi-device protection
  • Web protection
  • Kaspersky antivirus software
  • Secure traffic
  • Safe browsing
  • Business mobile security
  • Email protection
  • Anti-DDoS shield
  • Vulnerability management
  • Metashield
  • Threat detection and anti-fraud
  • Latch (additional password)
  • Security operations center
  • Sealsign (signing e-documents)
  • Microsoft Security
  • Professional security services
  • SandaS Corporate Governance, Risk Management and Regulatory Compliance
  • EDR (complements the antivirus)

CLOUD

  • Virtual data center
  • Housing
  • Hosting / Premium hosting
  • Managed WiF
  • Office 365
  • Movistar Cloud
  • Cloud ERP
  • Business productivity
  • Secure Cloud Mail
  • Team Talk Pro (unlimited one-to-one and group communication)
  • Your Web
  • Professional cloud services
  • UCaaS – HCS (integration of communications services that enables access to information at any time, in any place and from any device)
  • Contact Center as a Service
  • Webex Suite

INTERNET OF THINGS (IOT)

  • Vertical connectivity (machine to machine M2M data communications service)
  • Managed connectivity
  • Vehicle management
  • Management of staff in the field
  • Online company
  • Smart Agro
  • Industry IoT Networks
  • Smart Energy
  • New connections
  • USSD (unstructured supplementary service data, “quick codes”)

BIG DATA

  • Business Insights (solutions from mobility data)
  • Smart Steps (products based on mobile cell information)
  • LUCA Transit
  • LUCA Store
  • LUCA Audience
  • LUCA Tourism
  • Smart Digits (Big Data solutions to help reduce fraud and enhance the digital customer experience)
  • LUCA ATP (combats fraud in financial transactions)
  • LUCA Consumption (advanced analytics of corporate mobile lines)
  • RPA (robotic process automation
  • 1DOC3 (smart, virtual, medical assistance service)
  • LUCA Consultancy and Analytics
  • Cases of use and analytics
  • Data Visualization & BI
  • Academy
  • LUCA Tools and Infrastructure

ADVERTAISING

  • Business messaging
  • Sponsored data
  • Movistar Rewards
  • Smart Campaigns
  • Omnichanne
  • SendIt: Outbound communications solution
  • OneInbox: Inbound communications solution
  • WiFi marketing

Relevant information on the organization

(GRI 102-7)

Jobs

21.865

(5,518 direct employees + 722 temporary employees + 15,625 contractor company employees)

Paid

19.4 million

Income

COP $5.4 trillion

EBITDA

COP $1,660 billion

Net profit

COP $8.3 billion

Paid for service

(GRI 102-6)

More than 19 million customers access the telecommunications services offered by the Company with ample national coverage, which can be consulted via the following QR code:

Paid for service

(GRI 102-6)

More than 19 million customers access the telecommunications services offered by the Company with ample national coverage, which can be consulted via the following QR code:

Mobile

16,297,941

Basic line

1,429,792

Broadband

1,154,975

Television

526,535

Dedicated
internet

4,029

Data, resources at point-of-sale and other services

13,443

TOTAL PLAN

19,426,715


Significant changes –
Integration of subsidiaries

(GRI 102-10)

In the fourth quarter of 2017, Colombia Telecomunicaciones started an operating integration process with its subsidiaries Metrotel S.A. E.S.P. and Telebucaramanga S.A. E.S.P. to capture synergies and progress in their legal integration.

The business, trademark and administrative integration of Metrotel and Telebucaramanga with Colombia Telecomunicaciones was carried out in 2018. Consequently, as of November

2018, Metrotel and Telebucaramanga operate under the Movistar trademark and, additionally, the administrative work was carried out by Colombia Telecomunicaciones.

After obtaining authorization from the Financial Superintendence on May 13, 2020, the public deed for merger was completed on May 27, 2020, and it was registered in the Business Registry of the Bogotá Chamber of Commerce on May 28, 2020.

External initiatives

(GRI 102-12)

Membership of associations

(GRI 102-13)

  • National Business Association of Colombia
    (ANDI)
  • National Association of Public Utility and Communications Companies
    (ANDESCO)
  • Inter-American Association of Telecommunications Companies
    (ASIET, for the Spanish original)
  • Colombian Mobile Industry Association
    (ASOMÓVIL, for the Spanish original)
  • Colombian Chamber of E-Commerce
  • Colombian Hispanic Chamber of Commerce
  • Information and Communication Technology Research and Development Center

Certifications

The Company successfully completed the international Integrated Management System certification by the AENOR certifying body:

  • Environmental Management System (EMS) – ISO 14001
  • Quality Management System (QMS) – ISO 9001
  • Occupational Health and Safety (OHSMS) - ISO 45001
  • Information Security (ISMS) - ISO 27001

The increase in the scope for the quality of supply, operation and maintenance processes of the digital services and data center was included. Additionally, the Company has Gold Membership with Microsoft and it has the four certifications of Microsoft Azure (two Azure Administrator, one Azure Architect Technologies, and one Azure Architect Design).

Furthermore, taking into account that the Company is interested in having the best infrastructure for support and leverage to meet the business requirements, the Orion Data Center was launched in January 2020 and the TIER III Design certification was received for this project in September. This accreditation is awarded by the Uptime Institute, an independent division of The 451 Group and ensures that the topology of the site’s infrastructure meets appropriate criteria for energy, cooling, maintenance and capacity to support any failure in operations.

Awards and acknowledgments

Environmental ESG

  • Innovation Award in Sustainable Mobility awarded by the World Economic Forum.
  • SONDA and the CO2CERO company acknowledged the Company’s commitment to sustainability with the protection and planting of 50 trees in Puerto Gaitán, Meta, which will capture more than 55 tons of CO2 over the next 20 years.
  • Best Energy Efficiency Project awarded to the “Baterías como servicio[Batteries as a Service]” initiative at the 11th Telefónica Global Workshop on Energy and Climate Change.
  • Movistar received acknowledgment as a finalist in the Colombia Energy Efficiency Award granted by the Ministry of Mines and Energy, ANDESCO, the Mining and Energy Planning Unit (UPME, for the Spanish original) and Findeter for the “Hybrid Systems” project in the Public Service and ICT Companies category.
  • Movistar was a finalist in the environmental sphere of the ANDESCO Sustainability Award, thanks to the Environmental Management Sustainable Innovation project.

Social ESG

  • Leaders of the telecom sector in MERCO Talento.
  • Acknowledgment as the telecommunications company that best protects its users’ information, according to the “¿Dónde están mis datos? 2020 [2020 Where are my data?]” report, presented by Fundación Karisma.
  • The Company was acknowledged for the sixth year in a row as a leader in the Gartner Magic Quadrant for Managed Internet of Things (IoT) Connectivity Services, Worldwide.
  • Company with “Best Labor Practices in Colombia” according to Aequales, thanks to the leadership and awareness-raising programs to drive female leadership in the organization.
  • One of the two first companies in Colombia to recertify itself in the Gold Labor Equality Seal awarded by the Ministry of Labor and the Presidential Council for Women’s Equality.
  • Second place in the National Survey of Inclusive Companies, an initiative of the LGBT Chamber of Commerce and the National Consultancy Center, which had 120 participants.
  • Iconic Companies Creating a Better World for All award for being one of the 20 iconic organizations in Latin America in gender equality work, granted by the Women Economic Forum.
  • Best company in the telecommunications sector for youth, and tenth in Colombia according to Employers for Youth.
  • The Movistar Experience Centers in Bogotá were designated as “Safe Places” by the Mayor’s Office of Bogotá and the District Women’s Secretariat.
  • Movistar’s internal Innovation Management System won the Good Sustainable Development Practices acknowledgment of Sustainable Development Goal 9 from the Global Compact Network Colombia.
  • The Company received the Good Innovation Practices certification awarded by the Bogotá Chamber of Commerce and Icontec.
  • Recognition as one of the ten most innovative companies in Colombia according to the Innovation Ranking of the ANDI and Dinero magazine
  • The Company won the two first places of the #DataJam of the Communications Regulation Commission (CRC), developing innovative proposals to resolve challenges in access to Information and Communications Technology (ICT) and mobile portability.

GovernanceESG

  • Global Compact Network Colombia and Alliance for Integrity acknowledged the Company for Good Anti-Corruption Practices for the management of conflicts of interest and risks of corruption.
  • In the Business Transparency Survey (MTE, for the Spanish original) of Transparencia por Colombia, the Company obtained a low risk of corruption.
  • Transparencia por Colombia acknowledged its management of communication channels with stakeholders as an instrument for business transparency.
  • The Company was acknowledged as an Ideal Partner by the client Novartis, thanks to its Compliance Management System and Code of Ethics.
  • The credit risk rating agency Fitch Ratings confirmed the Company’s debt ratings in local and foreign currency of “BBB-” and the Senior Bond of “BBB-”, both with a stable outlook

UniversalESG

  • Leaders of the telecommunications sector in MERCO Empresas.
  • The Company obtained an outstanding rating in Bancolombia’s sustainability survey.