Portugal Telecom

(Portugal Twitter)-Portugal Telecom (PT) is the largest telecommunications service provider in Portugal. Although it operates mainly in Portugal and Brazil, it has also a significant presence in Guinea-Bissau, Cape Verde, Mozambique, Timor-Leste, Angola, Kenya, the People's Republic of China, and São Tomé and Príncipe.

Due to its large market share, Portugal Telecom is considered a de facto monopoly in fixed telephony in Portugal.

Ownership

Portugal Telecom is a publicly-traded company. As of 19 January 2010 its major stockholders are Telefónica (9.16%), Brandes Investment Partners (9.48%), Espírito Santo Financial Group (8.63%), Caixa Geral de Depósitos (7.28%) and Ongoing Strategy Investments (6.74%)

The Portuguese government owns 500 golden shares in PT, which carry special rights over the company's management decisions and block any one shareholder from holding more than 10% of voting rights within the company. The golden shares have been the subject of a long running dispute between the government and the European Commission, which alleges that their existence is illegal under EU law. Portugal has argued that the shares are in the public interest. A case brought before the European Court of Justice by the Commission to force the government to cede its shares is ongoing.

Domestic

Portugal Telecom owns PT Comunicações, the largest landline operator in Portugal. Its operating brands include meo, a triple play service provider and SAPO, an ISP and producer of web content. Portugal Telecom also owns Telecomunicações Móveis Nacionais (TMN), the largest mobile phone operator in the country; PT PRO, one of the largest shared services companies in Europe; and PT Prime, an IT services company.

International

Brazil is Portugal Telecom's second-largest market. PT agreed to acquire 22.4% of Telemar Norte Leste (Oi), the country's largest telecommunications firm, in July 2010. Separately it also holds 29% of UOL, a major Brazil-based ISP and online service provider; and is the sole owner of Dedic, a call centre operator. PT previously held 29.7% of Vivo, the country's largest mobile phone network, which it controlled jointly with Telefónica. It agreed however to sell its stake to Telefónica for €7.5 billion in July 2010.

History

The first telephone experiments in Portugal connected Carcavelos to the Central do Cabo in Lisbon, in 1877. In 1882, the Edison Gower-Bell Telephone Company was established in both Lisbon and Porto, to explore the respective telephone service concessions. In 1887, the concession was transferred to APT - The Anglo Portuguese Telephone Company, which was kept by the latter until 1968, the year in which the Public Company "Telefones de Lisboa e Porto" (TLP) was created. The Post Office, Telegraphs and Telephones (CTT) explored until this present day, the telephone service in the rest of the country. For the exploration of radiotelegraphy and wireless telephone, a contract with the Marconi's Wireless Telegraphy Company concession was confirmed in 1922. In 1925, the "Companhia Portuguesa Rádio Marconi" (CPRM) was set up and took on all responsibilities of the previous concession.

In 1970, CTT became a Public Company and in 1989, the TLP was transformed into a Limited Company, and was completely controlled by the State.