02

Organization:
Telefónica
Movistar
Colombia

GRI Contents 2-1, 2-6

Contenidos

Mission

“We want to make our world more humane by connecting lives”

The Company’s mission puts people at the center of everything it does. It aims to be a company that customers, employees, suppliers, shareholders and society in general can trust. It is imperative that the behaviors, processes and objectives reflect the Company’s purpose and values, ensuring coherence between what is said and what is done, to ensure that this shared vision permeates from employees to customers and from customers to society.

Values

Open

Open

Working in a collaborative, friendly and transparent way generates better solutions. The Company is an open system where everyone counts.

Challenging

Innovative solutions are offered that transform and simplify people’s lives. Willingness to change to do it better.

Trustworthy

Honest, simple and committed work, offering a secure and quality connection.

Origin

Colombia Telecomunicaciones S. A. E.S.P. BIC (the “Company” or Movistar), was constituted in Colombia as a commercial joint-stock company, public services company, by means of Public Deed No. 1331 of June 16, 2003, with a duration until December 31, 2092, and with its principal domicile in Bogotá D.C. located at Transversal 60 No. 114 A 55. It is subject to the legal regime provided in Law 1341 of 2009 and other applicable regulations. As of 2021, the Company included the expression “BIC” in its corporate name, after having adopted the legal status of a Benefit and Collective Interest Company (BIC).

The Company operates under the Movistar trade name. It is part of the Telefónica Group, one of the world’s leading telecommunications providers, present in Europe and Latin America, offering mobile telephony and connectivity services, broadband services, fiber optics to the home, pay television, fixed telephony, and a complete range of digital solutions for small, medium and large businesses and corporations. 

Shareholder
Composition

During 2023, there were no changes in the structure of the share capital or other operations related to the Company’s capital. The Company’s shareholder composition is:

Shareholder TIN / ID Number of Shares Percentage of Participation
Telefónica Hispanoamérica, S.A. 900.847.726-9 2.301.779.819 67.49937427
La Nación – Ministerio de Hacienda y Crédito Público 899.999.090-2 1.108.269.271 32.49984282
Radio Televisión Nacional de Colombia – RTVC 900.002.583-6 10.000 0.00029325
Shirley Puentes Mercado 32.771.179 9.950 0.00029178
Adriana Cepeda Rodríguez 32.797.578 2.488 0.00007296
Patricia Cepeda Rodríguez 22.656.420 1.493 0.00004378
Darío Cárdenas Navas 17.066.629 885 0.00002595
Eduardo Cárdenas Caballero 19.210.431 826 0.00002422
Jhon Jairo Gutiérrez Torres 72.225.428 498 0.00001460
Kira Torrente Albor 32.732.749 349 0.00001023
Canal Regional de Televisión Ltda. TEVEANDINA 830.005.370-4 200 0.00000586
Área Metropolitana de Bucaramanga 890.210.581-8 2 0.00000006
Instituto de Vivienda de Interés Social y Reforma Urbana del Municipio de Bucaramanga – INVISBU 804.001.897-0 2 0.00000006
Caja de Previsión Social Municipal de Bucaramanga 890.204.851-7 2 0.00000006
Cooperativa de Empleados de las Empresas Públicas de Bucaramanga Ltda. 800.093.901-1 2 0.00000006
Central de Inversiones S.A. – CISA 860.042.945-5 1 0.00000003
Total 3,410,075,788 100.00000000%

Movistar
Colombia in Numbers

Movistar Colombia is one of the largest drivers of the digital economy in the country.
Its main figures are:

2021 2022 2023
Employees 5.726 6.197 4950**
Indirect Employees of Allied and Commercial Agents 18.447 20.306 21.418
Accesses – Customers 21.9 million 23.9 million 25.1 million
Revenues* 5,911 MM 7,860 MM 7,118 MM
EBITDA* 1,742 MM 2,441 MM 1,558 MM
*Figures in Colombian pesos (COP) ** Does not include temporary workers or FTM payroll

Business Model
y and Value Chain

  • GRI Content 2-6

The telecommunications business is based on the investment and exploitation of a series of assets, mainly networks, to offer connectivity services to all its customers.

The Company’s traditional value chain includes the following elements:

  • Assets: set of material and immaterial elements developed through an investment, normally intensive in capital. They are mainly own or third-party fixed and mobile networks, their subsequent evolutions, business and service platforms, and other immaterial elements (licenses, spectrum, brands, etc., and digital platforms such as data centers, hardware and software.
  • Services: companies in the sector develop their own services based on their own or third-party deployed assets. The Core business includes the main fixed and mobile communications businesses, although operators have been evolving towards businesses adjacent to connectivity and customer service through different channels, including experience centers.
  • Customers: integrated telecommunications companies, such as Telefónica, usually maintain a very diverse portfolio of customers in each of their markets (residential, corporate, government, etc.). The commercial offer adapts to these segments to meet their needs.

Assets

  1. Physical Assets:
    • Fixed Networks
    • Mobile Networks
    • IT (Datacenters & hard)
    • Real Estate
  2. Intangible Assets:
    • IT Platform (Software)
    • Operations and Processes
    • Licenses and Spectrum

Services

  1. Basic Telecommunications:
    • Connectivity
    • Communications
  2. Digital Services:
    • IT Platform (software)
    • Operations and Processes
    • Licenses and Spectrum
  3. Professional Services:
    • Security
    • Big Data
    • Managed IT Services
    • Etc.

Customers

  1. Residential:
    • Households
    • Individuals
  2. SMEs, Businesses & Professionals
  3. Large Corporations
  4. Multinationals
  5. Government &
    Public Entities

However, networks are evolving towards models more similar to software platforms. This allows the construction of new business models, based on making the main network capabilities available to various actors (not just end customers) through connections or applications. In this sense, digital services are born: cybersecurity, cloud, Internet of Things (IoT), big data and advertising. 

Products
and Services

Movistar offers a wide portfolio of products and services for the connectivity and digital transformation of individuals, entrepreneurs, SMEs, companies and corporations (see more in Chapter 4.3.1.4. Digital Solutions for Businesses).

Mobile Products and Services

Prepaid

Postpaid

Terminals

Fixed Services

Broadband
(Fiber/Copper) Internet

Television

Fixed Telephony

Digital Services

Internet of Things (IOT)

Big Data

Advertising

Cybersecurity

Cloud

Prepaid Postpaid Basic Line Broadband FTTH Copper Television Dedicated VPNs
16,000,551 5,430,744 1,380,505 1,471,845 1,220,926 250,919 827,987 6,037 11,682
TOTAL 25,129,351

Participation
in Initiatives

In order to join forces for sustainable development, Movistar promotes joint work with a wide variety of national and international organizations, among which we highlight:

  • Global Compact Network Colombia (Early Adopter, Anti-Corruption Table, Inclusion Table, WEPs – Women’s Empowerment Principles, Human Rights Table)
  • Andesco Sustainability Agreement
  • Sports for Equality Campaign by UN Women and the Ministry of Sport
  • Business Anti-Corruption Commitment (CEA) – Transparency for Colombia
  • Responsible Business Conduct (CER) – Bogotá Chamber of Commerce
  • Corporate Impact Venturing Latin America & The Caribbean – CIV LAC
  • From Businesses for Businesses (DEPE) – Alliance for Integrity and Global Compact
  • EcoCómputo
  • Safe Workplaces Free from Harassment (ELSA) – GenderLab and Inter-American Development Bank
  • Safe Spaces – Mayor’s Office of Bogotá D.C.
  • G12 – Grupo Éxito, Bavaria, ISA, Postobón, Enel, Ecopetrol, Terpel, Grupo Sura, Grupo Nutresa, Grupo Argos and Grupo Bancolombia
  • Colombia Guidelines on Human Rights (DDHH) and International Humanitarian Law (DIH)
  • Gender Parity Initiative – National Government, Inter-American Development Bank (IDB), World Economic Forum (WEF) and 13 companie
  • Internet Governance Table for Colombia.
  • My Game My Name, international initiative to denounce sexist treatment in the gaming industry
  • Pride Connection Colombia (LGBT+ community)
  • UN Women’s UNITE campaign to end violence against women
  • United for the SDGs
  • Viguías – Safe Internet Center (Te Protejo, Tú Lideras, Te Guío and Knowledge Center)
  • Vision 30/30 Packaging Management
  • We Take Action – Alliance for Integrity
  • Commission of Sustainable and Responsible ESG Businesses – Hispano-Colombian Chamber of Commerce
  • “Plazas de Mercado” Marketplace Network Alliance – Government of Antioquia
  • Alliance for Human Rights in Business Contexts – Ombudsman’s Office

Associations

GRI Content 2-28

Telefónica Movistar Colombia participates in the following guilds and associations:

Association of the Mobile Industry of Colombia – Asomóvil

GSMA Association

Inter-American Association of Telecommunications Companies – ASIET

National Association of Businessmen of Colombia – ANDI

National Association of Public Services and Communications Companies – Andesco

Association for the Progress of Management

Circle of Affiliates of the Bogotá Chamber of Commerce

Official Chamber of Commerce of Spain in Colombia

Center for Research and Development in Information and Communication Technologies – CINTEL

Colombian Chamber of Electronic Commerce

Global Compact Local Network Corporation in Colombia

Justice Excellence Corporation – CEJ

Recognitions

Recognition of the SDGs for Good Practices in Sustainable Development with the Mujeres En Red program (Category SDG 5: Gender equality. Leadership in promoting more women in STEM).

Global Compact Network Colombia and Bogotá Chamber of Commerce 

Equipares Gold Seal: Seeks to improve women’s conditions, through the elimination of wage and labor discrimination, the promotion of a culture of equal opportunities, and their participation in tripartite commissions in the world of work and the prevention, elimination and punishment of all forms of violence. Movistar is the first telecommunications company in Colombia to receive recertification with a score of 99.48%.

Ministry of Labor and United Nations Program UNDP 

Recognition in the Social category for the Sustainable Mobility program: Try My Ride designs and implements Sustainable Mobility programs, positively impacting social, economic and environmental dimensions.

Try My Ride

Special Recognition Inclusive Companies LATAM WeTrade2023: Highlights the efforts and actions of companies committed to diversity and inclusion in work environments.

National Center for Consulting Chamber
of Diversity

“World-class work teams”: A recognition for being a company that promotes, develops and forms a committed, efficient and innovative work team.

La Nota Económica

Recognition for Conflict of Interest Management as a success case in Responsible Business Conduct.

Bogotá Chamber of Commerce 

Movistar obtained the BCX 2022 Seal: Best Customer Experience in the telecommunications sector, which recognizes it as the best company in Colombia in Customer Experience.

IZO

Portafolio Award 2023 Customer Service Category for the development of the Telco Accessible program: For its focus on service to people with hearing and visual impairments. Highlighting actions such as the implementation of differential service protocols for this population, continuous training for collaborators to provide excellent service and an offer with a special benefit for people with disabilities, Movistar Sin Barreras.

Portafolio

Movistar as the fastest fixed internet in Colombia: For the fourth consecutive time, Ookla’s SpeedtestAwards have confirmed it as the fastest fixed internet in Colombia, based on measurements taken in various speedtest applications. Ookla analyzes the results of the main internet providers, evidencing improvements in each quarter for Telefónica.

Ookla

Rankings

Informe ¿Dónde están mis datos? De Fundación Karisma

Telco with the best performance in the Report 

MERCO Companies:
 Corporate Reputation Business Monitor

Telco Sector: 1st Place
Total Companies: 57tth Place  

Committed Company to Youthin Iberoamerica
by the International Youth Organization – OIJ

3rd place

MERCO Talent

Telco Sector: 1st Place
Total Companies: 42nd Place 

Top 10 Open Corp Open Innovation Ranking 2023:
7th place in the list highlighting leading companies in Open Innovation and relationship with entrepreneurs 

7th place
Telco leader

Best LinkedIn Companies 2023 in Colombia

22nd Place

Certified Management

Telefónica Movistar Colombia has an Integrated Management System, structured under the ISO standard.

The Integrated Management System is made up of:

 The Quality Management System (SGC) structured under ISO 9001, certified since 2007, which seeks to control, improve its performance, efficiency and excellence in the services provided.

The Anti-Bribery Management System (SGAS) structured under ISO 37001, certified since 2022, seeks to avoid or mitigate the costs, risks and damages of being involved in bribery and acts of corruption.

The Environmental Management System (SGA) structured under ISO 14001, certified since 2007, which seeks to protect the environment and respond to changing environmental conditions, in balance with socioeconomic needs.

The Business Continuity Management System (SGCN) structured under ISO 22301, certified since 2022, seeks to prepare, provide and maintain plans, procedures and capabilities to continue operating during disruptive events.

The Occupational Safety and Health Management System (SGSST) structured under ISO 45001, certified since 2015, which seeks to manage and control the risks associated with worker safety and health.

OEA (Authorized Economic Operator) program, for which, in June 2022, the DIAN authorized as an OEA Operator in the import modality. This program seeks to prevent the occurrence of illicit activities in the international supply chain.

The Information Security Management System (SGSI) structured under ISO 27001, certified since 2016, which seeks to preserve the basic properties of information.

 Gold Seal Labor Equity – Equipares

Directors 1 and Directors 2 related to each scope to inform senior management about the performance of each Management System and to achieve decision-making by senior management regarding: improvement actions, resources or any need for change that may be required in the Systems. These reviews present the points defined in each standard, as well as other issues that are considered. 

Each year, internal audits are carried out within the Integrated Management System as an essential activity to guarantee compliance with management objectives, evaluate and ensure compliance with procedures, policies and controls, and their effectiveness. Likewise, an external audit evaluation is carried out for each section of the standards according to the scope of the IMS, which includes indicators, legal requirements, risks, among others, to determine if the Management System is in line with the needs of the operation and complies with the standards defined by the established international standard for each system.
 
For the year 2023, 34 audits were carried out to validate Telefónica’s Integrated Management System nationwide, with the aim of identifying timely improvements to the Management Systems, both internally and with third parties (suppliers), ensuring the planning of actions and strategies aimed at solving the identified deviations, as well as the execution of 6 external audit exercises for the certification of each of Telefónica’s Management Systems, where satisfactory results were obtained, ratifying the certification under international standards, verifying an adequate level of maturity, which is continuously improving and which leverages the organization’s strengths. The audits carried out represent 145 days of audit (Internal, Assurance, Third Party and External).
 
Within the Management Systems, the needs and expectations of stakeholders are analyzed based on the dialogues and materiality analyses carried out by the Sustainability team. Among those material issues, it has been identified that stakeholders value various aspects related to the scopes of the Company’s Management Systems, such as:
 
  • Responsible Marketing 
  • Customer Promise 
  • Digital Security 
  • Concern for employee health and well-being
  • Responsible management in the supply chain 
  • Ethical and responsible business practices 
  • Carbon emissions reduction 
  • Contribution to the fight against climate change 
  • Environmental impact

Action plans are defined for these material issues with the aim of improving the level of stakeholder valuation.—