sonaecom shaping our future sustainability report...

sonaecom shaping our future sustainability report 2006

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ceomessage methodologicalapproach

1 sonaecomprofileandgovernance

1.1 overviewofsonaecom

1.2 managementrule-compositionandstructureofgoverningbodies

2 managingsustainability

2.1 stakeholderandissueanalysis

2.2 sustainabilitychallenges

3 solidpast,challengingpresent,brightfuture

3.1 ourpeople3.1.1 employees3.1.2 suppliers3.1.3 businesspartners

3.2. environmentalstewardship3.2.1 environmentalmanagementsystem3.2.2 environmentalperformance3.2.3 electromagneticfields(emf)

3.3 qualityoflife3.3.1 customers&customercare3.3.2 responsiblemarketingpractices3.3.3 qualitymanagement3.3.4 servicesforthecommunity3.3.5 relationshipwiththegovernmentandinstitutions

3.4 energisingsociety3.4.1 enhancinginclusivenessthroughourservices3.4.2 empowercapabilities3.4.3 nurturingtheinformationandknowledgesociety

4 towardsaglobalcommunity

4.1 commitmentsforthefuture

glossary

�

Welcome to Sonaecom’s first Sustainability Report. I personally am extremely proud of the activities we have been developing in this area and of our ability to “make it happen”.

Our commitment to sustainable development is directly linked to our ambition to be the best communications services provider in Portugal. We believe that this industry offers countless opportunities to create a better society, and we are strongly committed to constantly and consistently developing innovative products, services and solutions that not only satisfy the needs of the markets in which we operate, but which also create added value for our clients, partners, shareholders and the community.

History has been a witness to the contribution we have made to improving the quality of life and increasing the productivity and efficiency of our society. One example of this is the investment made by Sonaecom of over 200 million euros in a sophisticated telecommunications network based on the new broadband technologies, keeping Portugal in line with the most advanced countries in Europe. Another is the 60 million euros investment in the development of the Information Society via the launch of a new generation of products and services which contribute to increasing consumers’ inclusion and access to the new technologies, in addition to improving the competitiveness of Portuguese companies.

In this first report we aim to clearly and substantially present our practices for managing sustainability, the programmes and their results, and also our future commitments and opportunities for improvement.

In the future, technology will be an intrinsic part of our daily lives in ways that we cannot even imagine today. The expansion of mobile services to new areas, and indeed access to the Internet and the supply of TV content, require that we pay special attention to problems that may arise, such as viruses and issues of security and privacy.

Shaping Our Future means recognising the role that we play in social, economic and environmental development, and remaining true to the high standards of business ethics, responsibility and integrity that we have always defended.

Our future is a common gift and we share the responsibility to construct it in the best way possible.

Finally, for us, this first Sustainability Report is the continuation of a process of heavy cooperation and dialogue with our stakeholders, and therefore we welcome any comments that may be made regarding its contents.

CEO Message

SONAECOM SUSTAINABILITY REPORT 2006 | CEO Message

Paulo Azevedo,CEO

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“Shaping Our Future”,Sonaecom’sfirstsustainabilityreport,describesoureconomic,socialandenvironmentalperformanceuntil2006andsetsfurthersustainabilitytargetsforthefuture.Thisreport,animportantmilestoneinthedevelopmentofSonaecom’ssustainabilitystrategy,aimstodisseminatesustainabilityawarenessthroughthecompaniesandtorespondtostakeholderrequestsforinformationonthemostrelevantsustainabilityissues.Thisreportmighthavesomeoverlayswith2006AnnualReportinordertobeselfstanding,althoughtheseareasarepresentedinadifferentcontext,focusingsolelyonsustainabilityandisdesignedtoaddressabroadaudience:community,society,environment,customers,employees,businesspartnersandsuppliers.

Thisreportisdividedintofourchapters:

Chapter1reportsSonaecom’svaluesandvision,strategicgoals,historyandorganisation.Inordertomeettheexpectationsofinvestorsandotherfinancialstakeholdersitalsopresentstheinternalgovernancerules.Chapter2isdedicatedtothemanagementofsustainabilityissues.During2006,Sonaecom’sSustainableDevelopmentGroup,whichincludesrepresentativesofkeycorporatefunctions,identifiedthestakeholderandsustainabilityissuesrelevanttothebusiness.

Chapter3reportsSonaecom’ssustainabilityperformancewithrespecttoitsstakeholdergroups,boththosedirectlyrelatedtobusinessactivities(employees,suppliersandbusinesspartners)andthosewithwhichSonaecominteracts(environmentalstakeholders,customers,communityandsocietyingeneral).

Chapter4presentsthecommitmentsSonaecomhasmadefor2007andforthelongerterm,aspartofourcontributiontowardsthesustainabledevelopmentoftheglobalcommunity.

Duringthedraftingandeditingofthisreport,wehavetakenspecialcaretoensureconsistencyandmateriality.Therefore,wehavecommittedto:

Makingthereportconsistentwithothercorporatecommunications;Givingrecognitiontoareasofweakness/areasrequiringimprovement;Providingevidencetosupportstatementsofachievement,e.g.throughKPIs;Reportingonlytheprogressmaterialtothebusiness.

Thestructureandcontentsofthereport,includingthesocial,economicalandenvironmentalKPIs,havebeeninspiredbytheGuidelines for Sustainability Reports andthe Telecommunications Sector SupplementsdevelopedbytheGlobalReportingInitiative.

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methodological approach

NotesThefollowingSonaecomcompaniesareincludedinthescopeofthisdocument:Optimus,SonaecomFixed,Público,WeDo,Bizdirect,Mainroad.Theorganisationalstructurereflectsthesituationat31stDecember2006.Sonaecom’sfinancialyearstartson1stJanuaryandendson31stDecember.Unlessindicatedotherwise,graphsandtablesrepresenttheSonaecom’ssituationuntil31stDecember2006.

Forfurtherinformation,pleasevisitouronlineCorporateResponsibilityareaatwww.sonae.com.

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SONAECOMSUSTAINABILITYREPORT2006|methodologicalapproach

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1. sonaecom profile and governancebuildingthefutureis writing our own history

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1.1. overview of sonaecom

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Createdin199�,Sonaecomassumeditscurrentnamein1999.SonaecomistheSonaeGroupsub-holdingfortheTelecommunications,MediaandSoftwareandSystemsInformation(SSI)sectors,playinganactiveroleintheintegratedmanagementofthecorrespondingbusinessunits,identifyingandexploitingexistingsynergiesandgrowthpotential.

Ouroverarchingaimissimplebutambitious:tobetheleadingproviderofintegratedtelecommunicationsservicesinPortugal.

Sonaecomisaholdingcompanythatcontrolsandactivelymanagesaportfolioofcompanies,dividedintofourbusinessunits,withtwomainshareholders,SonaeSGPSandFranceTelecom,bothprovidingsignificantstrategicsupporttothebusiness.

SONAECOMSUSTAINABILITYREPORT2006|sonaecomprofileandgovernance>overviewofsonaecom

Sonaecom’sOwnershipStructure(fig.1)

SonaeSGPS�1,8% FranceTelecom19,2% FreeFloat29,0%

SONAECOM

TelcoMobile100% TelcoFixed100% Media99% SSI100%(1)

(1)SoftwareandSystemsInformation.

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SONAECOMSUSTAINABILITYREPORT2006|sonaecomprofileandgovernance>overviewofsonaecom

SonaecomisanentrepreneurialgrowthcompanywhoseambitionistobethebestPortuguesecommunicationservicesproviderandthecompanyofchoiceforexceptionalpeopletoworkanddiscovertheirfullpotential.Sonaecomrelentlesslypursuesthecreationofinnovativeproducts,servicesandsolutionsthatfulfiltheneedsofitsmarketsandgeneratesuperioreconomicvalue.

ThefollowingsetofvaluesinspiresthethinkinganddailyactivitiesofSonaecom’speople.

InnovationDevelopandberecognisedfornewwaysofcommunicating:simpler,moreeffectiveandprofitable,contributingalsotoanincreaseinsocialwell-being.Exploitourrenownedtechnologicalexpertiseandappealtoourcreativityand

entrepreneurshipandsurpassinallourachievementstodate.Breakawayfromconventions,surprisethemarket.

SocialResponsibilityCommittoourcommunity,followinggoodenvironmentalpracticesandbeingsociallyresponsible.Careforthepresentandfuture.

CustomerCentricMeettheneedsofourcustomers,findingoutwhattheywantandthink,revolutionisingtheirconsumerhabits.Addvaluetothecustomerbydevelopingqualityandtailor-madeproducts,servicesandsolutions.

PeopleOrientatedMaximisetheskillsofourprofessionalsand

developtheirideasandinitiatives.Encouragehumandevelopmentandensureabalancebetweenpersonalandprofessionallife.Loyalty,professionalismandhonestyarekeyvaluesforourteams.Betransparentandrespectthemarketandsocialethics.

ValueDrivenSearchformaximumprofitabilitytofundourgrowthandfulfilourmission,assuringasuperiorreturnforourshareholders.Striveforsolidfinancialsandeconomicstability.

AmbitionBethebestinPortugal.Beabletofaceandexceedourchallenges.Believeinourskillsandcompetences.Berelentlessinpursuitofourgoals,actingwithintegrity.

Sixvaluestoleverage,onemissiontopursue

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1.2. management rulescomposition and structure of governing bodies

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Sonaecom’scorporategovernancestructuresetsoutclearlytheroles,dutiesandresponsibilitiesofitsdifferentGoverningBodies.

TheBoardofDirectorssupervisesthemanagementofSonaecom’sbusinesses,monitorsrisksandhelpstodeveloptheGroup’sgoalsandstrategy.ItisalsoresponsiblefortheremunerationandothercompensationoftheGroup’semployees.

Sonaecom’sGoverningBodies(fig.2)

Sonaecom

Shareholders’GeneralMeeting

BoardofDirectors

ExecutiveCommittee BoardAuditandFinanceCommittee

BoardNominationandRemunerationCommittee

BoardandCorporateGovernanceOfficer Company’sSecretary

Shareholders’RemunerationCommittee

StatutoryExternalAuditor

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SONAECOMSUSTAINABILITYREPORT2006|sonaecomprofileandgovernance>managementrules-compositionandstructureofgoverningbodies

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TheExecutiveCommitteeisselectedfromthemembersoftheBoardofDirectors.TheGroupCEO,CFOandtheCOOofeachoftheGroup’sbusinessareaarepartoftheExecutiveCommittee.TheExecutiveCommitteemeetingsarealsoattendedbytheothermembersoftheExecutiveManagementTeam.

Sonaecom’sBoardAuditandFinanceCommittee(“BAFC”)hasthreememberswhoareappointedbyandfromamongthemembersoftheBoard.ThefourthmemberistheBoardandCorporateGovernanceOfficer.TheCommitteeiscurrentlycomposedofthreeNon-Executive

Directors,twoofwhomareindependent,andischairedbyanindependentNon-ExecutiveDirector.

Sonaecom’sBoardNominationandRemunerationCommittee(“BNRC”)hasfourmembers,includingtheChairmanoftheBoardofDirectors,theCEO,andtwoindependentNon-ExecutiveDirectors.ThesecondindependentNon-ExecutiveDirectorstobeappointed.

MoredetailedinformationaboutSonaecom’sGoverningBodiescanbefoundinourAnnualReportfor2006.

ExecutiveCommittee(fig.3)

CEO Mobile&Fixed Mobile CFO Legal&Regulation Fixed Media/SSI

PauloAzevedo LuísReis MiguelAlmeida ChrisLawrie AntónioLoboXavier(1) PedroCarlos(1) CláudiaAzevedo

GroupCEOSSIMedia

GroupCOOCEOFixed/MobileHumanResourcesIT/ISTechnical

COOMobileCustomerService

GroupCFOCorporateFinancePlanning&ControlInternalAuditAccounting&FinanceTreasuryInvestorRelations

LegalRegulationCorporateComunicationFiscalPlanning

COOFixed COOSSICOOMedia

(1)AdvisortotheBoardofDirectors.

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SONAECOMSUSTAINABILITYREPORT2006|sonaecomprofileandgovernance>managementrules-compositionandstructureofgoverningbodies

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2. managing sustainabilityroutingthefutureistomeetpresentneedswithout compromising the next generations

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AtSonaecom,weincorporateenvironmentalandsocialaspectsintoourmanagementstrategy,constantlyseekingtocontributetothedevelopmentoftheInformationSocietyinPortugalandtodelivermaximumaddedvaluetoallourstakeholders.Anopendialoguewithallpartiesminimisestheriskofoverlookingstakeholderneeds,andfacilitatestheidentificationofgrowthopportunities.

InMay2006,wedevelopedastructurethroughwhichwewillmanageoursustainabilityissues.Thishasincludedallocatinginternalresponsibilities,defininganactionplanforthefirstyearandestablishinganannualimprovementcycleplan.OurprogresstowardssustainabledevelopmentisledbytheEnvironmentalOfficeincollaborationwithCorporateCommunication.

Duringthisfirstyearoftheactionplan,wehavecarriedoutthefollowingactivities:

WeestablishedtheSSDG-SonaecomSustainable•

DevelopmentGroup-toanalyseandtrackoursustainabilityperformanceusingGRI1indicators;WeexploredsustainabilitybestpracticeinthetelecomssectorwithFranceTelecom.FranceTelecomparticipatedintheCorporateResponsibilityinternalworkshophostedbySonaecominSeptember2006andpresentedcasestudiesandexamplesofbestpracticeinthisareafromtheirexperience;WeconductedinternalworkshopswithourheadsofdepartmenttopresentthescopeoftheSSDG’swork,discussexamplesofbestpracticeintheSustainableDevelopmentfieldandidentifykeystakeholders,theirinterestsandconcerns,andtherelatedrisksandopportunities.

Sustainabilitymanagementiscarriedoutthroughanannualimprovementcycle.

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1GlobalReportingInitiative.

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SONAECOMSUSTAINABILITYREPORT2006|managingsustainability

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SustainabilitymilestonesSonaecom’ssustainabilityactivitiesarecoordinatedwiththoseofSonaeSGPS.SonaeSGPSprovidedsustainabilityguidelinestobecompliedwith,anapproach

tobefollowedandcommitmentstopursuedforallitssub-holdings.SonaeSGPS’sapproachtosustainabledevelopmentistailoredtothespecificneeds

ofeachofitssub-holdings.Eachsub-holdinghasbeenaskedtofindandpursueitsownvisionofsustainabilityandproduceitsownsustainabilityreport.

SonaebecomesamemberoftheWorldBusinessCouncilforSustainableDevelopment(WBCSD)

1995 1999 2000 2001 2002 2003 2004 2005 2006

LaunchoftheECO2XXIcorporateprogram

Sonaesetsupanenvironmentforum

Sonaepublishesitsfirstenvironmentalreport

Firstsustainabilityworkshop

Sonaeadherestotheglobalcompactinitiative,launchedbytheUnitedNationsin2000

SonaesignstheWorldSafetyDeclaration

Environmentforumevolvesintothesustainabilityforum

SonaecomISO1�001certification

Launchof“Smile”voluntaryprogram

SonaecomCodeofConduct

SonaecomsetsupSSDG

SONAECOM

SONAE

1�

SONAECOMSUSTAINABILITYREPORT2006|managingsustainability

SustainabilityAnnualCycle(fig.4)

SSDG:analysisofGRIindicatorperformanceandtargets

Auditors:verifythereportandevaluateGRIindicatorperformanceandtargets

Headsofdepartment:analysepreviousyear’sperformanceanddefinenewobjectives

ExecutiveCommittee:approvenewannualobjectivesandthesustainabilityreport

JAN

MAR

APR

MAY

JUNJUL

AUG

SEP

OCT

NOV

DEC

FEB

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2.1. stakeholder and issue analysis

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Thefirststepintheinternalprocesswastocarryoutacomprehensiveanalysisofourstakeholderstodeterminetheirpositioninrelationtoourbusinessactivities.

Asaresultoftheinternalconsultationprocess,weidentifiedeightrelevantstakeholderfamilies–FinancialEntities,Employees,RegulatoryandGovernmentalEntities,Community,Customers,

Suppliers,BusinessPartnersandIndustry.Eachfamilycontainsalonglistofstakeholdergroups,asillustratedintheboxbelow.

Amongtheeightstakeholderfamiliesidentified,Customers,Employees,FinancialEntitiesandCommunityhavethehighestlevelofinteractionwithSonaecom,intermsofbothdependencyonourbusinessandinfluenceonourresultsandreputation.

CompositionofSonaecomStakeholderFamilies(fig.5)

FinancialEntities

BanksAnalystsShareholdersand

Investors

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Employees

PermanentEmployeesShort-termContractsTemporary

EmployeesTraineesOutsourcingExternal

Collaborators

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RegulatoryandGovernmentalEntities

ANACOM-TelcoreguladorAutoridade

Concorrência-CompetitionAuthorityEuropeanUnionCMVM-Securities

MarketCommissionLegalCourtsGovernment

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Community

ImmigrantsPopulationlivingclose

totheantennasandBTSSpecialNeeds

AssociationsMediaOpinionLeaders&

MakersScientificCommunityNGO’sPoliceand

FirefightersInformationIlliterates

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CostumersandProspectiveCostumers

CorporateSmallandMedium

Enterprises(SME)PublicAdministrationSOHO-smalloffices

andhomeoficcesResidentialSeniorCitizens

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Suppliers

HandsetsOutsourcingNetwork

InfrastructureNetworkEquipmentITInfrastructurePrintingContentProvidersMarketingAgencies

•••

•••••

BusinessPartners

SalesChannelsFranceTelecomTechnologyProvidersMediaProviders

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Industry

CompetitorsSectorAssociations

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SONAECOMSUSTAINABILITYREPORT2006|managingsustainability>stakeholderandissueanalysis

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Anotheroutputoftheinternalconsultationwasalistofissuesrelatingtoeachoftheidentifiedstakeholdergroups.

Participantswereaskedtoproduce,basedontheirexperienceandperceptions,aninitiallistofrelevantstakeholderandsustainabilityissues,andover60issueswereidentified.

Fromthislonglist,ten“IssueGroups”wereestablished,fiveinternalandfiveexternal,asshowninthefollowingtable.

InternalissuesrelatingtoHuman Resourcesincludework-lifebalance,salaryandbenefits,careerplanning,developmenttoolsandtraining.Corporate Governance and Compliance with Legislation and Rulesarealsoinstitutionalissues,anddesignatedpersonnelmonitorandassuretheirfullobservance.Environmental Management and Practicesis

alreadyconsolidated,thankstothesystemwhicheffectivelymanagethisarea.

Development of Information and Knowledge SocietyhasbeenapriorityforSonaecomforalongtimeandwewillcontinuetopromotedigitalinclusion,launchnewinnovative,responsibleandusefulproductsandservices.

Ingeneral,theothersexternalissuesareareaswherewearesettingimprovementtargets.Forsome,namelyExternal Communication of Sustainability Practices and ResultsandtechnologicalPartnership,wehavealreadysetourtargetsandweexpecttoachievesignificantimprovementsinthenearfuture.Regardingtheotherareas,issuesofinteresttomorethanonestakeholderfamilymaybegivenpriorityastheyarelikelytoproducebroadereffects.

SonaecomIssueClustering(fig.6)

IssueGroups

Internal

HumanResourcesCorporateGovernanceCompliancewithlegislationandrulesHealthandSafetyEnvironmentalmanagementandpractices

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External

Trustworthyinformationconcerningeconomic/financialmanagementpracticesandresultsExternalcommunicationofsustainability

practicesandresultsDevelopmentofinformationandknowledge

societyCalamitiesanddisastermanagement

supportPartnership

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SONAECOMSUSTAINABILITYREPORT2006|managingsustainability>stakeholderandissueanalysis

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2.2. sustainability challenges

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TheissueandstakeholderanalysishasallowedSonaecomtosetitssustainabilityreportingstrategyfor2007,identifytheareasofimprovementanddefinetheactionsrequiredtomeetthetargets.

Chapter3reportstheachievementsofSonaecominthesustainabilityfieldupto2006.TheseactivitiesarepartofSonaecom’sprogress

towardssustainability.Thisextendstheboundariesofourcommitmentto:

OurPeople2;EnvironmentalStewardship;QualityofLife;Energisingsociety.

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SustainabilityCommitment:theChallenges(fig.7)

- Employeesatisfactionanddevelopment

- Suppliersandbusinesspartnerships

- Environmentalmanagement&performance

- EMFemissionsmanagement

- Customercare- Responsiblemarketingandpractices

- Qualitymanagement- Servicesforthecommunity

- Empowercapabilities- NurturingainformationandKnowledgesociety

- Enhancetheinclusivenessoftheservice

INCREASINGLEVELOFAMBITION

2InthecontextofSonaecom’sSustainabilityReport,“OurPeople”includesemployees,suppliersandbusinesspartners.

OurPeople Environmentalstewardship QualityofLife EnergizingSociety

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SONAECOMSUSTAINABILITYREPORT2006|managingsustainability>sustainabilitychallenges

CHALLEN

GES

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Extendingtheboundariesofoursustainabilitycommitmenthasinvolvedconsolidatingthoseareaswhichwewerealreadyaddressing–thoserelatedtoOur People and Environmental Stewardship–andidentifyingmoreambitiouschallengesaimedatimprovingQuality of LifeandcontributingtoEnergising Society.

WebelievethatmaintainingastrongrelationshipwithOur Peopleiscrucialtocreatingvalue.Thisincludesdevelopingprogrammesforouremployeesaswellasworkingwithoursuppliersandotherstrategicpartners.TopursueourEnvironmental Stewardship,weneedtocontinuouslyimproveourenvironmentalmanagementpracticesanddemonstrateourcommitmenttoreducingtheimpactsofouractivitiesontheenvironment.

Quality of Lifedescribesourcommitmenttocustomersatisfaction,responsiblemarketing,qualitymanagementandservicesforthecommunity.

Energising Societyreferstoourambitiontocontinuetodrivesocialandeconomicchange,enhancethecapabilitiesofpeopleandcompanies,promoteprocessesoptimizationandcreatewealththroughtheimprovementofourfinancialperformance.

Theoverallgoaltargetofourpathtowardssustainabilityisplayingaprominentroleinthedevelopmentandgrowthoftheglobalcommunity,enhancingtheaccessibility,qualityandprofitabilityofourservices,andsatisfyingemergingneeds.

Thelistoftargetsfor2007andonwardsiscoveredinChapter�.Wearecommittedtocarefullymonitoringthedevelopmentofourfirstsustainabilityimprovementplan.

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SONAECOMSUSTAINABILITYREPORT2006|managingsustainability>sustainabilitychallenges

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3.solid past, challenging present, bright futureshapingthefutureisto be prepared before,during and after you take a step towards your goals

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3.1. our people

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3.1.1.1 CompositionandtrendsUntilDecember2006,Sonaecomhad1,871employees,morethan�3.�%ofwhomareagedbetween30and3�.Theaverageageis3�.Sonaecom’sworkforceishighlyeducated,with80%ofemployeesholdingauniversitydegree.

60%ofemployeesaremale,�0%arefemale.Sonaecomisanequalopportunitiesemployerandrecruitsirrespectiveofgender.

3.1.1employees

0 200 �00 600 800 1000

20-2�

2�-29

30-3�

3�-39

�0-��

>��

Employeedistributionbylevelofeducation(graph.2)

Degree:71%College:20%Bachelor’sdegree:9%

200�200�2006

Employeedistributionbyage(graph.1)

EMPLOYEEDISTRIBUTIONBYGENDERANDCAREERLEVEL(table1)

2004 2005 2006

Male Female Male Female Male Female

Executive 7 1 6 1 6 1

SeniorManager 9� 23 9� 2� 9� 2�

Manager 3�6 13� 3�� 138 3�3 1�0QualifiedandHighlyQualified 878 6�6 8�0 617 612 �82

Semi-qualified 8� 1�0 82 11� �1 107

Total 1,420 944 1,387 896 1,117 754

Male:60%Female:�0%

Employeedistributionbygender(graph.3)

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SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>ourpeople>employees

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TheSharedServicesdivisionaccountsfor�0%ofthetotalworkforceincludesLegalandRegulation,InstitutionalCommunication,CustomerServices,AdministrationandFinance,Facilities,HumanResources,RevenueAssuranceOrganisationandFraud(RAOF),IT/ISandEnvironmentandSustainability.TheCorporateCentredivisionincludesExecutiveManagement,PlanningandManagementControl,InvestorRelationsandAuditandRiskManagement.

Approximately9�%ofSonaecom’semployeesattheendof2006wereinpermanentemployment.

During2006,202employeesleftthecompanyand107joined.

Thedecreaseofthenumberofemployeesbetween200�and2006wasmainlyduetoareorganisationandcentralisationofsomeservicesthatarenowsharedbyallthecompanies.Twoothercircumstancescontributedtothisdecrease:in2006,PúblicounderwentarestructuringprocessandEnablerwassoldtoWipro,aleadingIndianITcompany.

SharedServices:�2%Telecoms:2�%Media:1�%SSI:18%CorporateCentre:1%

Employeedistributionbydivision(graph.4) N.OFPERMANENTANDSHORTTERMCONTRACTSEMPLOYEES(table2)

2004 2005 2006

Permanent ShortTerm Permanent ShortTerm Permanent ShortTerm Contracts Contracts ContractsOptimus �7� �0 �88 36 27� 21SonaecomFixed 290 21 263 19 1�2 20Media 320 1� 32� 3 26� 2SSI �9� �7 �86 �� 31� 22SharedServices 393 �3 �39 �� 73� �1CorporateCentre 27 1 2� 1 22 �Total 2,198 166 2,125 158 1,761 110

2�


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3.1.1.2 SonaecompoliciesandbenefitsSonaesigneduptotheprinciplesoftheGlobalCompactin200�.Theseprinciples,inparticularthoseregardingtheabolitionofchildandforcedlabour,adherencetoanti-corruptionpracticesandrespectforhumanrights,areobservedbyallemployeesinallthepartsoftheworldwhereSonaecompaniesoperate,includingSonaecom.AtSonaecominparticular,allsecuritypersonnelreceivespecifictrainingrelatedtohumanrights.Sofar,therehavebeennoreportedincidentsofallegedviolationofhumanrights.

Sonaecom’sHumanResourcesmanagementpolicypromotesacultureofrespecttowardsouremployeesandbusinesspartnersandrejectsanydiscrimination,suchasthatbasedongender,race,religionor

othergrounds.Furthermore,wedonotengageinanyformofforcedorcompulsorylabourandonlyrecruitindividualsaged18orover.

Inaconstantlychangingsector,Sonaecom’sHumanResourcesteamaimstoenhanceanddeveloptheskillsandknowledgeofeachemployee.ThisisvitalforSonaecomtofunctionproperly.Sonaecomimplementspoliciesandprogrammesaimedatattracting,retaininganddevelopinghighqualityprofessionalswhoaremotivated,creativeandhaveleadershipskills.

During2006,Sonaecomcontinuedwithitsintensivetrainingprogramme,supplying�8,�12hoursoftraining,coveringdifferentthemes,asshownintable3.

2�


TRAININGACTIVITIES(table3)

N.oftraininghoursbytheme Sonaecom

Welcoming&Integration �11

Management&Behavioural 16,�22

Technical 18,721

ForeignLanguages 6,768

MBAs �,9201Others 71

Total 48,5121CorporateResponsibilityandotherspecifictraining.

N.OFEMPLOYEESRECEIVINGTRAININGDURING2006(table4)

N.ofemployeesreceivingtrainingduring2006bycareerlevel Sonaecom

Executives 1�

SeniorManager �2

Manager 326

QualifiedandHighlyQualified �87

Semi-Qualified 70

Total 1,039

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1,039employees,representingapproximately��%oftheworkforce,receivedtrainingduring2006.

During2006,Sonaecomimplementedacomprehensivetrainingprogramme,aimedatOptimus,Novis,ClixandBizdirect.TheparticipationofPúblicoemployeesinthetrainingcourseshasbeenquitelowsofar.For2007,SonaecomwilldevelopspecifictrainingprogrammestobettermeetPúblico’sneeds,asdescribedinChapter�.

Onaverage,eachSonaecomemployeereceived2�.9hoursoftrainingduring2006.

BenefitsWeofferasetofbenefitsaspartofouremployees’remunerationpackage.Thesecaninclude:

Healthinsurance;Lifeinsurance;Mobiletelephonesandamonthlyphonecallallowance;Deferredbonus;Scholarshipsforthechildrenofemployees;Alayettebasketfornewborns.

Otherbenefitslikecompanycars,mediumtermincentiveplanandretirementsavingplanarereceivedbasedontheindividualemployee’scareerlevel.Formoreinformationregardingbenefits,seeSonaecom’sAnnualReport.

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AVERAGEANNUALTRAINING(table5)

Averageannualtraininghoursperemployee 2004 2005 2006

Mobile �9.2 ��.3 2�.�

SonaecomFixed 13.� 20.8 39.0

Media 0,7 3.7 2.0

SSI - 1�.9 2�.3

SharedServices �.3 36.� 31.0

CorporateCentre �8.1 87.1 �9.7

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TheSonaecomLearningCentre(SCLC)brandembodiestheCorporateUniversityconceptfrombestinternationalpracticeincorporatetraining.

Theaimofthisinitiativeistocreateanenvironmentwhichnurturesprofessionalpotential,andtofosterandenhancemanagerialskillswhichareessentialforbusinessdevelopmentatSonaecom.SCLCisaimedatallemployeesandincludesprogrammesfordifferentmanagementcareerlevel.Keylearningthemesincludepeoplemanagement,strategicmanagementand

projectmanagement,aswellasothercriticalissuesforbusinessdevelopment,suchasmarketing,negotiationandinterpersonalskills.Partnershipsestablishedwithleadingnationaluniversitiesguaranteethatthesubjectsaddressedareup-to-dateandgivecredibilitytothetrainingprovided.Partnershipsareinplacewiththefollowinguniversities:EGP–EscoladeGestãodoPorto(PortoSchoolofManagement),UCP–FaculdadedeCiênciasEconómicaseEmpresariaisdaUniversidadeCatólicaPortuguesadeLisboa(SchoolofEconomicsandBusinessStudiesofthePortugueseCatholic

UniversityinLisbon)andAESE–EscoladeDirecçãoeNegócios(SchoolofManagementandBusiness).

SinceitslaunchinJanuary2005,theSCLChasbeenenthusiasticallyreceivedbytrainees,whorepeatedlyconfirmtheappropriatenessofthecontent,aswellastheimportanceofthetrainingforcareerdevelopment.Bytheendof2006,19trainingcourseshadbeenheld,involving450employees,andover25,600hoursoftraining.

SonaecomLearningCentre

|index

3.1.1.3 EmployeehealthandsafetySonaecomstrivestoguaranteeasafe,hygienicandhealthyworkplace.Thisisdeliveredintwoways:occupationalhealthmedicalexaminationsandtheprovisionofsafe,hygienicandergonomicfacilitiesandequipment.

Foreachsitewebuildaspartofournetwork,weimplementasafetyplanbasedonthesite’sspecificcharacteristicsandrisks.Theplancoversaccesstotheconstructionsiteandlocaltrafficmanagement.Safetyplanscomplywithtechnicalspecificationsfortheconstructionsofmobiletelecommunicationstations.Alltechnicalsitesupervisorsaretrainedandcertifiedtoworkathighaltitudes,andhavepersonalprotectionequipment.Theyalsoreceivebasictrainingonhealthand

safetyatwork,electricalrisksandfireprevention.

Ateachsitewealsoimplementahealthandsafetyplan,orahealthandsafetychecklist,accordingtothescaleoftheworkandlegalrequirements.Alltechnicalsitesupervisorshaveapersonalmonitortoassesstheintensityofradioelectricemissions.

Workplaceaccidentshavebeenatalowleveloverthelastthreeyears;fiveaccidentsoccurredin200�,threein200�andthreein2006.

During2006,threeemployeeswereinjured.Theseaccidents(twofallsandabackstrain)werenotdirectlyrelatedtoworkactivities,butoccurredinouroffices.

N.OFWORKACCIDENTSOCCURRINGIN2004-2006(table6)

2004 2005 2006

N.accidents N.lost N.accidents N.lost N.accidents N.lost hours hours hoursSonaecomSGPS/SI 0 0 0 0 0 0Optimus 2 200 3 ��6 1 �96SonaecomFixed 3 1,06� 0 0 0 0Media 0 0 0 0 0 0Bizdirect 0 0 0 0 0 0Mainroad 0 0 0 0 1 88WeDo 0 2,0321 0 1,9921 1 2,1201

Total 5 3,296 3 2,448 3 2,704

1Acaraccidentthatoccuredin2003resultedin2,032losthoursin200�,1,992in200�and1,98�losthoursin2006.

28


|index

Since1998,Sonaecomhashademergencyproceduresinplace.

Theriskoffirehasbeenreducedduetothecontinuousupgradingofsafetyprotocols,withbetterprotectionofpersonnelandevacuationprogrammes,andimprovedinterfacesystemsbetweenSonaecom’sfacilitiesandtheemergencyservices.

SafetysystemswerestrengthenedinJanuary2003bythetrainingofemergencyteamsandtheintroductionoftheoreticalandpracticaltraininginfirst-levelsafetyprocedures.Theserangedfromfire-fightingtechniques,firstaidtrainingandevacuationplans,toawidevarietyofemergencydrills,particularlythoseinvolvingsevereearthquakeandterroristbombthreatscenarios.

Today,safetypolicyatSonaecomissupportedbywell-equippedemergencyteams,well-versedinemergencyprocedureswithongoingtraininginemergencyskills.

SafetyissuesarewidelydisseminatedwithinSonaecomthroughthedistributionof“Optimisesafety”flyersandotherinternalcorporatecommunications.

InternalSafetyProcedures

29


|index

3.1.1.4 InternalcommunicationInternalcommunicationisveryimportanttoSonaecomasitpromotesourcompanycultureinamannerwhichmotivatesouremployeesandnurturestheirentrepreneurshipindevelopingourbusiness.

Toachievethis,internalcommunicationusesanextensiverangeofinternaltoolsanddevelopsactivitieswhichallowtheemployeestounderstandandtodevelopSonaecom’sbusiness.

Sonaecomhasdevelopedasetofchannelsthroughwhichitcandistributeinformationeffectively,guidebehaviourandattitudes,andengageemployeesinourstrategyandgoals,namely:intraSonaecom,BOOM(Sonaecominternalmagazine),noticeboards,internalevents,StrategicPlanningCycle(CPE),off-sites,internalemailsande-letters(MediaReporteEcorepor).

InternalCommunicationisastrategictoolandhasacriticalroletoensurethatweareabletomeetourchallenges.

Tacticalobjectivesare:

Internalcommunicationisbasedonthefollowingstrategicobjectives:

Engageemployeesin

Sonaecom’sstrategy

Engageemployeesin

Sonaecom’smission

andvalues

Developasenseof

belonging

IncreaseSonaecom’s

internalreputation

InformemployeesaboutSonaecom’sinitiativesandnews

IncreaseinformationaboutSonaecom’sbusinessareasandbrands

PromoteidentificationwithSonaecom’smissionandvalues

Improveinternalcommunicationtoolsmakingthemrelevanttoemployees

Developcloseworkingrelationshipsbetweenallemployees

Developprocesseswhichimprovethecommunicationflow

30


|index

Internalcampaigns:“Giveahandtotheenvironment”-waterandenergyconsumptionreduction,paperrecyclingandwasteseparationcampaign;

“GilDay”-topromotethecollectionandreuseoftonerandinkcartridges;

• “1001reasonstomakeadifference”–acompetitiontopromoteneweco-

-efficiencyideastoimplementatSonaecom.

•

•

Publications:AnentireeditionoftheSonaecominternalmagazineBOOMwasdedicatedtoCorporateResponsibilityinAugust2006;

Moregenerally,articlesonCorporateResponsibilityareincludedinBOOMtoinformandraiseawarenessamongstemployees.

•

•

Events:Internalworkshopsonsustainability,heldinSeptember2006(seeChapter2);

MobilityWeekwasacampaignheldinSeptember2006topromotealternativemeansoftransport.

Intranet:AspecificareahasbeendedicatedtoSustainabilityontheSonaecomIntranet.

•

•

•

CorporateResponsibilityAwarenessInthelastyear,wehavepromotedseveralinitiativestoincreaseCorporateResponsibilityawareness.Themainactivitieswere:

31


|index

3.1.2.1 PurchasingproceduresSonaecompaysspecialattentiontotheselectionofsuppliersandthecompany’srelationshipwithitssuppliers.ThequalityoftheservicesandproductsitpurchasesisessentialformaintainingandimprovingthestandingofSonaecom’sownbusinessservices.

In2006,Sonaecom’svolumeofpurchasingwasaround770millionEuros,withaportfolioof6,271suppliers.Mostofthesuppliers(86%)

werePortuguese,alsoaccountingfor86%ofthetotalvalueoftransactions.

Thetoptensuppliersbasedonvalueoftransactionswereprovidersofinterconnection(mainlynational),networkequipment,marketingandHumanResourcesoutsourcing.Togethertheyrepresented28%ofSonaecom’spurchasing.

3.1.2suppliers

Nationalityofsuppliercompaniesinnumbers(graph.5)Percentageoftotalsuppliers

Top10SonaecomSuppliers-28%transactionvalue(graph.7)Percentage

NationalForeign

2006

200�

200�

Valueofsupplierstransactions(graph.6)Millionsofeuros

Interconnection:��%Networkequipment:36%Marketing:�%Outsourcing:�%

2006

200�

200�

NationalForeign

0% 20% �0% 60% 80% 100% 0 300 600 900

32

SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>ourpeople>suppliers

|index

Purchasesaremadedirectlybythebusinessareasrequiringtheproductsorservicesinquestion.

Commonproducts,suchasofficematerials(paper,stationary,toner,cartridges,etc.),arepurchasedusingBizB2B,aproductdevelopedbyBizdirect.TheBizB2Bisanelectroniccommercesolution,basedonanITplatform,thatmakese-sourcingande-procurementprocesseseasierforboththebuyersandsellersofgoodsandservicesandisenvironmentallyfriendly.

SuppliersPortal87%ofSonaecomsuppliers,includingthosethatsendmorethan12invoicesperyear,areabletoviewtheircurrentaccountsthroughanelectroniclinkonourwebsite.Thelinkalsoenablesthemtoupdatedata,viewpaymentsandcontactthepaymentsoffice.ThisinformationisdirectlyaccessiblefromtheSonaecomdatabase,2�hoursaday,ensuringfasteraccesstoinformation.

Alltheestablishedcontractsincludeenvironmentalclausesand,whereapplicable,clausesthatpreventheadhunting.Wearecommittedtodevelopingspecificationsrelatingtofairlabour,ethicalpracticesandhumanrightsprotection.

3.1.2.2 SupplyqualitymanagementSonaecomhasinplacecertifiedproceduresfortheselectionandevaluationofsuppliersinaccordancewithitsISO9001QualitySystem.Ourobjectiveistopurchaseinthebestmarketconditionswhilstrespectingalllegalrequirements.

Theproceduressetcriteriatofollowfromthepointwhenapurchaseisordereduntilthefullpaymentfortheproductorserviceismade.

33


|index

3.1.2.3 EnvironmentalprocurementcriteriaSonaecomismakingadeterminedefforttoensurethatitssupplierscomplywithallapplicablelegislation,thattheyminimisetheirenvironmentalimpactsandimplementbestpracticewheneverpossible.ThesuppliersarealsoencouragedtoimplementanenvironmentalmanagementsystemoraligntheirmanagementpracticeswiththeISO1�001standard.

Sonaecomevaluatesbiennaletheenvironmentalperformanceofoursuppliers.Suppliersareaskedtocompleteaweb-basedquestionnaire,andtoprovidecertificatesandotherevidencetosupporttheirenvironmentalperformance.Fromthis,Sonaecommakeaperformancerankinganddecideswhetherornotthesuppliershouldberetained.

The200�evaluationinvolved232suppliers.SupplierswhofailedtofillinthequestionnairewereautomaticallyclassifiedasC(Poor).The200�resultswereratedasfollows:

A(Verygood):20%(retainsupplier);B(Good):�6%(evaluatewhetherornotthesuppliershouldcontinuetobeused);C(Poor):2�%(replacesupplier).

••

•

Since2003,Sonaecomhasbeenauditingthosesuppliersthathavethemostsignificantenvironmentalimpacts.During2006,weconductedeightauditsonmaintenanceandtechnicalfacilitiessuppliersandoneauditonalogisticssupplier.Theauditsconductedonmaintenancesuppliersdetectedthefollowingmainfindings:

10findingsrelatingtowastemanagement;9findingsregardingthetreatmentofHCFCheldintheair-conditioningsystems;7findingsrelatingtothepreventionofpossibleleakages;7findingsrelatingtotheenvironmentalinternalaudits;�findingsrelatingtotheenvironmentaltraining.

Nofindingsweredetectedduringtheauditconductedonthelogisticssupplier.

••

•••

3�


|index

3.1.3business partners

3.1.3.1 CategoryAssociationsWeparticipateinavarietyofnationalandinternationalassociations.Theseincludeworkinggroupscommittedtothedevelopmentofrulesandstandardstopromotemoreeffectiveandresponsiblebusinessmanagement.

SonaecomisamemberofGSMAssociationandGSMEurope.Inparticular,intheGSMAssociation,Sonaecomparticipatesinthefollowinggroups:

Billing, Accounting and Roaming Group (BARG);Devices Group (DG);Fraud Forum;Inter-Working, Roaming Expert Group (IREG);Interconnect Working Group (IWG);Security Group (SG).

Thecustomerprotectionprogrammes,developedin2006,aredescribedinSection3.3.1.3.

APRITEListhePortugueseAssociationofElectronicCommunications’Operators.ItsaimistofosterthecompetitivedevelopmentofthePortugueseElectronicCommunicationsmarketbyactivelylobbyingthenationalregulator,theGovernment,thenationalcompetitionauthority,aswellasotherrelevantEuropeaninstitutions.Thereare

••••••

severalworkinggroups(WG)whereSonaecomisanactiveparticipant,suchas:

NumberingplanWG;AccessWG;ICP–AutoridadeNacionaldasComunicações(ANACOM)WG.

Additionally,SonaecomisamemberofAPDC–thePortugueseAssociationfortheDevelopmentofCommunications.Itsscopeiswide,promotingthedevelopmentofthesectorinPortugal,throughworkshops,debates,seminarsandtheannualcongressoftheelectroniccommunicationsmarket.Theseeventsarerecognisedwithinthemarketfortheirtechnicalqualityandrelevance,andofferopportunitiesforustopromoteourbrandandservices.

3.1.3.2 FranceTelecom,Technology&MediaprovidersSonaecomrecognisestheroleofpartnershipsincreatingstrategicvalueforourbusiness.Inpursuingourmission,wecontinuallyaimtoaccessanextensivebaseofknowledgewhichenablesustoprovideourcustomerswithhighlyspecialisedtechnicalcompetence.

FranceTelecomWehavealwayshadastrongrelationshipwithFranceTelecom(FT)GroupasaresultofthedirectparticipationofFTinOptimusandSonaecomFixed.In200�atthetimeoftheroll-up,FTdecidedto

•••

3�

SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>ourpeople>business partners

|index

extendthiscooperationthroughaStrategicPartnershipAgreement(SPA)tomaximisethevalueoftheiroperationsinPortugal.

Underthisagreement,whichcoversareassuchasroaming,multimediaservices,handsetprocurementandinternationaltraffictermination,cooperationhasbeenextendedtonewprogrammesinotherimportantbusinessareas.TwoSteeringCommitteeswithrepresentativesfromSonaecomandFThavebeencreatedatOptimusandNovistomonitortheimplementationoftheprojects.

OurlevelofinteractionwithFThasbeenextensiveduringthelast18monthsandhasproducedsomerealbenefitsforourprogramme.Thiscooperationisanexcellentexampleofhowa“flexiblepartnershipfocusingoncooperation”canbetransformedintorealvalueforbothcompaniesinvolved.

Technology&MediaprovidersDuring2006,OptimuschoseAlcatel’sNextGenerationIntelligentNetworksolutionaspartofitsstrategytoprovideend-userswithenhancedinnovativeservices,andatthesametimeenableOptimustodifferentiatefromitscompetitorsinaverycosteffectivemanner.AlcatelwasalsoselectedbyOptimustodeployanend-to-endinteractivemobileTVsolutioninPortugal,whichledtothelaunchingofaninnovativerich-mediaplayer.BothcompaniesarecommittedtomaintaininganattractiveandleadingofferinginthemobileTVarea.

OptimuswasalsooneofthefirstoperatorsinEuropetoselectHuaweiasakeysupplier.Asaresultofthiscooperation,OptimusHighSpeedDownlinkPacketAccess(HSDPA)networkwasthefirstfull-performanceHSDPAnetworkofascaleforcommercialuseinEurope.TheirreliabilityinmeetingthestrictrequirementsofoperatorsresultedinmorecontractsforHuawei,whichinturnstrengtheneditsleadingpositionintheglobalUMTS/HSDPAsector,increasingconfidenceinthepotentialofthispartnership.

Inaddition,Optimushastakenanimportantsteptowardsanall-IPnetworkbyenhancingits2G/3GnetworkwithEricsson’smobilesoftswitchandIPMultimediaSubsystem(IMS)solutions.Ericsson’sIMSsolutionwillenableOptimustodeliverawiderangeofnewmultimediaandleadingedgeconvergedservices.EricssonisthesupplierfortheOptimuscorenetworkandIMSnetworkinfrastructure,andisalsoasupplierofradionetworkinfrastructure.

Optimusalsohasseveralagreementswithcontentproviderswhodeliverdifferentcontenttypes(livestreaming,videos,images,text,music,games,ringtones,etc.)anddifferentcontentthemes(news,sports,locationbasedservices,etc.).PúblicoandRecordprovidegoodexamplesofnationalpartnerships.TheybothhavedevelopedamobileinterfacewithOptimus,whichallowscustomerstoaccessanddisplaythecontentsoftheirwebsitesfromtheirmobilephones.

36


|index37


AgreementsandpartnershipswithcontentprovidersarecrucialtoenableOptimustooffermultimediaservicestocustomersandthusgrowthecompany.

3.1.3.3 SalesChannelsSonaecom’ssalesagentnetworkisabusinesspartnerofcriticalimportance.Ourambitiontohavethebestsalesforceinthetelecommunicationssectorledustoconcentrateonthreeimportantstepsofthesalesagents’professionallifecycle:recruitment,trainingandtheincentivesprogramme.Since2006,“Optimus Negócios”,themobilebusinesssegment,hasinvestedheavilyinrestructuringitsrecruitmentplan.Today,two-thirdsofrecruitmentneedsaremetdirectlybyOptimus,whichsupervisesthisprocess.

“Escola de Negócios Pontos Fortes”waslaunchedinJuly2006,andfocusesondevelopingskills,reducingtheturnoverofsalesstaffandtighteningrelationshipswithOptimus.Theschoolrunsprogrammesnotjustforsalespeople,butalsoforadministrativeassistantsandsalesteamleaders.Inonlysixmonths,368peoplehaveattended69courses.“Pontos Fortes”isalsothenameoftheincentivesprogramme,inwhichpeopleearnpointsforeachsalewhichcanbe

redeemedagainstbenefits.Pointscanalsobeearnedbyattendingthe“Escola de Negócios”courses.Theobjectivesofthisprogrammearetoenhancemotivationandincreasethedurationoftheprofessionallife-cycle;theaverageprofessionallife-cycleofpeopleengagedinthisprogrammeistwiceaslongasforpreviousprogrammes.“Escola de Vendas Optimus”isanotherexample,focusedontheresidentialsector,actinginSelection&Recruitmentprograms,Training,MotivationandPerformanceEvaluation.Thisschool’smissionistonurturesellingandcoachingskillsandtobuildastrongcommercialculture.In2006,wedirectlymanagedtherecruitingprocessformorethan60peopleandorganisedmorethan60trainingsessions.In2006,the“Escola de Vendas Optimus”simulatedanOptimusstoreinthetrainingroomtocreateamorerealisticenvironmentandreinforcecross-sellingskills.“Academia Novis”isanotherin-housetrainingprojectaimedatreducingsalesagentturnoverandimprovingselling,leadershipandspecificbusinessskills.WithactionsfocusedonRecruitmentandSelection,theongoingchallengeistoimprovecommercialresultsthroughthequalityofourprofessionalpartners,providingspecializedtrainingandcontributingdirectlytothesustainabilityoftheirownbusiness.

|index38

3.2. environmental stewardship

|index

3.2.1 environmental management system

Sonaecomconsidersenvironmentalmanagementasastrategicfactorforcompetitivenessandvaluecreation.TheEnvironmentalManagementSystem(EMS)is,sinceJune2003,ISO1�001certified.

Wearedeterminedtofollowaneco-efficientmanagementpolicytominimiseanyenvironmentalimpactsresultingfromouractivities,productsandservicesbypreventingpollutionandimplementingtherationaluseofnaturalresources.TheEMSactsasafundamentalmanagementtooltoensureprocesscompliancewithcurrentenvironmentallegislationandthebestenvironmentalpractices.

ThemainEMSdriversare:Energyconsumption(electricityandfuel)andrelatedCO2

emissions;Waste:

- office:papers,plastics,metalandotherurbanwaste; - technicalareas:wasteelectricalandelectronicequipment

(WEEE),batteries,constructionmaterials;

•

•

Paperusedtoprintthenewspaper;Materialsusedinmarketingandpackaging;Electromagneticfields(EMF).

Foreachofthesemaindriverswedefineimprovementobjectivesandputinplaceprocessesthatallowustomanageandmonitorthese.

OurEMSprocessesarecommunicatedregularlytoouremployees,suppliersandotherrelevantstakeholders,ensuringtheyareawareoftheobjectivesestablishedandcancontributetomeetingthem.Whennecessary,weconductspecifictrainingprogrammes.Wealsocarryoutannualinternalauditstocheckthattheprocessesarebeingcompliedwithandtoseehowobjectivesarebeingpursued.

SinceimplementingourEMS,wehavenotbeenpenalisedforanyenvironmentaltransgressions.

•••

39

SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>environmentalstewardship>environmental management system

|index

2006PROGRESS

WearenegotiatingacontractwithERP(anelectric&electronicswastemanagementcompany)

Allconstructionweremonitoredbythefacilitiesdepartment

Twentyfourinspectionsmade

WereducedtheOfficeenergyconsumptionby7%

Weincreasedtheuseofrecycledtonerby2%

Theuseofrecycledpaperdroppedfrom90%to80%

Wereducedpaperconsumptionbyapproximately�00sheetsofpaperperemployee

Ourmajorsuppliersarecurrentlybeingevaluated

Alltheplannedactionswereperformed

Alltheplannedactionswereperformed

TheISO1�031indicatorswereimplementedwhereapplicable

Applicationwasdeveloped

Wehaveconducted11integratedaudits

In2006wewereabletosignificantlyimproveourenvironmentalperformanceinabroadrangeofareas:

3.2.2environmental performance

2006OBJECTIVES

DL230/200�(EEE)compliance

Environmentalmonitoringofnewbuilding

Environmentalinspectionsofallfacilities

Optimiseofficeenergyconsumption

Increaseuseofrecycledtoner

Maintaintheuseofrecycledpaperat90%

Minimisepaperusage

Environmentalevaluationofsuppliers

Increaseenvironmentalawareness

Environmentaltraining

ImplementISO1�031indicators

Developsoftwaretomanageenvironmentalaspects

Integrateinternalauditswiththequalitymanagementsystem

Objectivemet

Objectivepartiallymet

Objectivenotmet

�0

SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>environmentalstewardship>environmental performance

|index

MarketingandPackagingmaterialsInthelastfewyears,Sonaecomhasundertakenimportantinitiativestoreducetheenvironmentalimpactofitsmarketingmaterials.ThefollowinggraphicillustratessavingsachievedatOptimusrelatedtomarketingmaterialsperclient.

Themainmaterialsusedforpackagingarepaperandplastic.Weonlyuseourownpackagingmaterialsforproductssoldthroughretailshops.Theproductsorderedbyinternet,phoneorbycorporatecustomersaresentwithonlytheoriginalpackagingfromoursupplier.

Usingmoreeco-efficientpackaging,wewereabletolowerourannualmaterialsconsumptionbyapproximately2�0,000kg.

In2006,90%ofthematerialusedwasprintpaperusedbyPúblico.During200�weconductedaneco-designpackagingandenvironmentalcommunicationsstudytoanalysetheimpactsofourOptimuspackaging,improveitseco-efficiencyandtoprovideenvironmentalinformationtoourconsumers.Wewillincorporatetheresultsofthisevaluationinourfuturemarketingandpackaging.

Marketingmaterials/N.ofnewcustomers(graph.8)kg

JournalpaperPaperandcardPlasticMetalOthers

2006

200�

200�

2006

200�

200�

0 0.2 0.� 0.6 0.8 1 1.2

�1


UsedmaterialsatSonaecom(graph.9)kg

Packagingmaterials/N.ofnewcustomersatOptimus(graph.10)kg

0 3000000 9000000

2006

200�

200�

0 1 2 3 �

|index

UseofrecycledmaterialsIn2006wealsopromotedtheuseofrecycledmaterialsinouroffices.Around80%ofofficepaperandaround30%oftonerswererecycled.

EnvironmentalconcernsinthenewSonaecombuildinginLisbonWhenbuildingSonaecom’snewoffices,weconsideredseveralenvironmentalrequirementsandappliedbestpractice:

landcontaminationanalysis;rainwaterrecovery;useofT�compactlightswithelectronicballaststoreduceenergyconsumptionby10%;

•••

specializedglazingwhichreducesthedirectincidenceofsolarraysthroughthewindows;liftswithamanagementsystemthatreducesenergyconsumptionthroughoptimisingjourneys;BMS(BuildingManagementSystem)thatcontrolseveralsystemsinanintegratedmannertooptimisefunctioningandenergyconsumption.

EnergyconsumptionInrecentyears,energyconsumptionhasprogressivelyincreasedduetogreaternetworkdeployment(over88%ofenergyconsumptionisrelatedtothenetworkinfrastructure).

•

•

•

Energyconsumptiondistributionin2006(graph.11) Directandindirectenergyconsumption(graph.12)Millions GJ

Technical:88,�%Offices:�,1%Diesel:�,2%Petroleum:1,7%RetailShops:0,�%Generators:0,1%

2006

200�

200�

0.2 0.� 0.6 0.8 1IndirectconsumptionDirectconsumption

�2


0

|index

Directenergyconsumptionisrelatedtoelectricityusedinthenetwork,officesandretailshops.Indirectconsumptionisdieselandpetroleumusedinthetransportfleetandemergencygenerators.

Inourmainbuildings,wehaveintroducedbuildingmanagementsystemsthatautomaticallyturnofftheair-conditioningandlightingsystemsafterworkinghoursorwhentheyarenotneeded.

Wehavealsoinstalledseveralothersystemsthatallowformoreefficientlighting:

Motionsensorstoturnlightsonandoff;Filtersandwindowshadestoreducesunexposure;Solatubereflectingillumination:Solatubeisatubularskylightthatcapturessunlightonourrooftop.Sunlightisthenredirecteddownthroughahighlyreflectiveshaftanddiffusedintheinteriorspace.

In2006tofurtherincreaseenergysavings,wehavereplacedhalogenlightsof3�and�0Wwitheconomicallightsof7and9W,whicharemoreefficientbutprovidethesamelevelofilluminationinretail

•••

shops.Astheygeneratelessheat,wewerealsoabletoreduceourairconditioningconsumption.

Withtheseimprovementsweconsiderablyreducedthenumberofhoursofilluminationachievingsavingsaround16,�00kWh/monthand1,100Euros/month.

ThelightingimprovementsattheNorteshoppingCentreinMatosinhos(Porto)earnedusaGreenLightcertificate,theEuropeanvoluntaryprogrammetoimproveilluminationeco-efficiency.

In2006,toreduceindirectconsumption,wecarriedouttwotestdrivesofToyotaPriusandCivicIMAcarstoevaluateadoptinghybridvehiclesforsomeactivities.Weconductedastudyanalysingthefeasibilityofinstallingphotovoltaicpanelsonournewofficebuilding,butwedecidednottomaketheinvestmentforthetimebeing.

Wearealsopromotingtheuseofnewtechnologies,suchasteleconferencingandvideoconferencing,toreducebusinesstravel.In2006,westartedtoinstallpersonalvideoconferencingsystems.

�3


|index

CO2emissionsAlmostallofourCO2emissionsareindirect,withincreasesresultingdirectlyfromtheexpansionofthenetwork.

OzonedepletingsubstancesOzonedepletinggasesareusedinrefrigerationunitswhichcoolequipmentatourbasestationsandalsoinourofficeair-conditioningsystems.WearecurrentlyreplacingR22(HCFCs)withR�07C,anHFCgaswithnoozonedepletingeffects.During2006,weinstalled127ozone-freeinstallations,�1ofthemreplacingthosecontainingHFCgas.

Electronicinvoicing&Paper-freeprocessesTheofficepaperconsumedbyanylargecorporationisanimportantpartofitsenvironmentalfootprint.UsingtechnologyfromBizdirect,wewereabletoreducesignificantlythepaperusedinourinternalprocesses.From200�to2006,thisreductionwasaround�00sheetsperemployee.

Withthegreatlyincreaseduseofdigitalinvoicinginourbusinessunit“Optimus Negócios”in2006,wecuttheuseofpaperby6millionpages,savingaround3�0,000Euros.

CO2Emissions(graph.13)Thousandstonnes

Newinstallationsofrefrigerantgas(graph.14)kg

OzonefriendlyinstallationsfreeofHCFCgas(graph.15)Percentage

2006

200�

200�

0 20 �0 60 80IndirectemissionsDirectemissions

2006

200�

0 �0 100 1�0 200 2�0 300 3�0R22R�07R�10

2006

200�

200�

�8

�3

�6

��


|index

ReducedwaterconsumptionLastyearwewereabletoslightlyreducetheofficewaterconsumptionatalloursites.Inthefuture,weexpectfurtherreductionsasournewofficebuildingisabletoreuserainwater.

EndlifeproductsOverthepastfewyearswehavefollowedtheentirelife-cycleofourproductsandsetupcontractswithPortugueseserviceprovidersforcollectingandrecyclingourproductsattheendoftheirlife-cycleinthemarket.

Forthepackaging,whichincludesplastic,paperandmetalmaterials,wesignedacontractwith“Sociedade Ponto Verde”forcollectingandrecyclingthismaterial.Forcollectingandrecyclingthe mobile batteries,wesignedacontractwith“Ecopilhas”.AnadditionalprotocolagreementmanagesthedisposalofoldbatteriesfromourTechnicalAssistanceCentres.Forthemobile phones and other electric and electronic equipment:wearecurrentlynegotiatingacontractwithERP,oneoftwomainprovidersinPortugal,toensurethecollectionandrecyclingoftheseequipments.

Paperconsumptionbyemployees(graph.16)N.ofpapersheets

Waterconsumption(graph.17)m3

Waste(graph.18)kg

�,322.19

�,82�.78

�,332.992006

200�

200�

2006

200�

200�

0 100 200 300 �00 �00 600 700LandfillorincinerationRecyclingorrecovery

3�,0�3

3�,912

3�,0�12006

200�

200�

��


|index

Wearealsodevelopinginformationonhowtodisposeofourproducts,whichwillbeavailableonourwebsiteduring2007.

Wegive10Eurosforeacholdphonethatisreturnedwhenanewoneisboughttopromoterecycling.

Everyyearthatpasses,wearecollectingmoreusedequipmentatourretailshopsandsendingittoberecycledatFonebakPLC.

Networkdeploymentprocesses

MobilenetworkAllourantennainstallationsaresupportedbyrentalcontractsthatmeetlegalrequirements.Wemakeeveryefforttocommunicateinformationaboutsiteconstructionandelectromagneticfields.Weseektheapprovaloflocalauthoritiesandalsosecurearadio-electriclicencefromANACOM.

Eachtechnicalprojectisdevelopedaccordingtothefollowingguidelines:

Useofbestpracticetoensurethebestfitwithbuildingsandlandscape,includingalsotreeantennas.Urbansitesdonotusecontainerstohousetheequipment,reducingtheirsize;

•

EQUIPMENTMANAGEMENT(table7)Valuesinunits

EquipmentcollectedatRetailShops(graph.19)Units

3�,000

�0,000

�8,000

200�

200�

2006

Senttomarket

Totalcollected

CollectedRetailShops

CollectedatTechnicalSupportCenters

2005

7��,��7

��,181

�0,000

�,181

2006

707,237

67,6�3

�8,000

9,6�3

2004

��,691

3�,000

9,691

�6


|index

Whenitistechnicallyfeasible,weuseexistinginfra-structure,eitherourownorthatofthirdparties.Wehavesite-sharingagreementswithothertelecommunicationsoperatorsandotherentities;WeensuretheprojectanditsconstructioncomplywithourEnvironmentalManagementSystem,inparticularforwastemanagement,noise,energyconsumptionanduseofnonozonedepletingequipment;Weensurethatwemeetallthesafetyrulesandregulationsforemployees.

AlloftheseprocessesarecertifiedtoISO9001andISO1�001standards.

•

•

•

FixednetworkOn13April2006,ANACOMreleasedthenewtermsandconditionsforaccessingtheincumbent’sconcessionaireductsreducinginstallationandmaintenancecostsandourneedforconstructionalongpublicroads.

Sitesharing(graph.20)N.ofsites

ExistingstructuresSitesharingwithothertelcoStandalone

2006

200�

200�

0 1000 2000 3000 �000 �000

�7


|index

3.2.3electromagnetic fields (emf)

WecomplywiththePortugueselegislationthatwasestablishedfollowingtheinternationalguidelines,namely:Portaria 1�21/200�,199/�19/CEEURecommendationsandICNIRP3Recommendations.Eachantennaiscertifiedandacompliancedeclarationisproduced.

Themeasureswehaveputinplaceenableustoconcludethattheexistingradiationvaluesinplacesaccessibletothepublicaresignificantlybelowtherecommendedleveldensitypower(�.�W/m2),takingintoaccountanyinaccuraciesaffectingthemeasurements.

Thescientificconsensusremainsthatthereisnoevidencetodatetosuggestthatmobilecommunicationmastsandmobilephones–ifoperatedwithininternationalsafetyguidelines–poseathreattohumanhealth.

Wekeepourselvesinformedofthemostrecentresearchonthismatter.SeveralfactsheetspublishedbytheWorldHealthOrganisationconcludethatthereisnoscientificbasisforalink

betweenhealthproblemsandEMFexposure:

FactsheetN°193,RevisedJune2000-Electromagneticfieldsandpublichealth:mobiletelephonesandtheirbasestations;FactsheetN°296,December200�-Electromagneticfieldsandpublichealth:ElectromagneticHypersensitivity;FactsheetN°30�,May2006-Electromagneticfieldsandpublichealth:Basestationsandwirelesstechnologies.

Wewanttobetterunderstandthepublic’sattitudetowardsmobilesandhealth,andtoshareallofourownknowledgewiththem.

OptimushasinplaceanagreementwithotherPortuguesemobileoperatorsandthe“Instituto de Telecomunicações”,called“monIT”,withtheobjectiveofinformingthegeneralpublicaboutelectromagneticfields,suchasexposurelimitsandthepublishedmeasurementstakennearantennas.Moreinformationaboutthisinitiativecanbefoundathttp://www.lx.it.pt/monit/.

•

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•

3InternationalCommissionNon-IonizingRadiationProtection.

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SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>environmentalstewardship>electromagnetic fields (emf)

|index

Wealsosharetheinformationwehavethroughourwebsite,ourcallcentreandbycontactingdirectlylocalauthoritiesandthepopulationlivingnearbasestations.

During2006,weclarifiedfourrequeststhroughourcallcentres,senttenreportstotheindividualslivingnearantenna,sixoftheseincorporatinglocalmeasurements.

Throughoursuppliers,weensurethatallourphonesarecompliantwiththeSpecificAbsorptionRate(SAR)thattheEuropeanUnionhasadopted(2.0W/Kgon10grammesofhumantissue).

RequestsforclarificationregardingEMF(graph.21)N.ofrequests

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SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>environmentalstewardship>electromagnetic fields (emf)

19

29

1�

200�

200�

2006

|index�0

3.3. quality of life

|index

3.3.1.1 OurcustomersSinceitscreation,Sonaecomhasputcustomersatthecentreofallitsactions,seekingtomeettheirneedsandobtainanexcellentlevelofconsumersatisfactionwithourservices.

DuetothedynamismofthetelecommunicationsmarketinPortugal,theonlywaytoretaincustomersisthroughprovidinginnovativeproductsandservicesatanacceleratedpace.Tosuccessfullyimplementthisinnovationstrategyfocusedonthecustomer,Sonaecomcontinuouslymonitorsthemarket,consumerneedsandtrends,throughmarketsurveys.

IntheMobilebusinessarea,theresultsofagrowthstrategyfocusedonnewproductsandserviceshavebeenvisiblesincethelaunchin200�ofKanguruandOptimusHome,whichconsistentlyincreasedourcustomerbaseduring2006.Attheendof2006,Optimushadacustomerbasisofmorethan2.6million.ThecommercialsuccessofOptimusHomeisconfirmedbyreachingthemilestoneof200,000customersinonly20monthsofoperation.

IntheSonaecomFixedbusinessarea,the“goingdirect”strategyhassuccessfullychangedthecustomerbasecomposition(measuredintermsofendofperiodservices).

3.3.1customers & customer care

OPTIMUSCUSTOMERTRENDS(table8)

TotalnumberofOptimusCustumers

%pre-paid

%activeCustomers(1)

Netadditions

2005

2,3�3,198

81.7%

80.0%

22�,�33

2006

2,601,882

77.8%

79.1%

2�8,68�

(1)ActiveCustomer’s-Usersthatmadetrafficinthepast90days.Yearendvaluerepresentsaverageofthequarters.

�1

SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>qualityoflife>customers & customer care

|index

Thesubstantialimprovementinthespeedoftheactivationprocessesduring2006hadastrongpositiveimpactonservicedeliverytimings,overcomingwhathadbeenasignificantdifficultyduring200�.

3.3.1.2 CustomerCareSonaecominvestscontinuouslyinprovidinganeffectivecustomerservice,throughspecialisedteamstrainedtorespondeffectivelytoourcustomers’needs.

During2006,wesignificantlyimprovedourrelationshipmodelwithourcustomerservicesoutsourcingpartners,movingfurthertowardsagoal-orientatedoperationalmanagementmodelbasedonquantityandqualityindicators.ThisBusinessProcessOutsourcing

approachimpliesahigherqualityservice,anincreasedfocusonthemanagementofcorebusinessindicators,processoptimisationopportunitiesandcleareroperationalcostadvantages.

Theservicelevelindicatorsobtainedin2006indicatethesuccessofthisstrategy.FromthetestscarriedoutcoveringourOptimusCustomerpopulation,theresultsspeakforthemselveswith‘Satisfied’ratedat7.8�and6.8(onascaleof1to10)fortheresidentialandbusinesssectors,respectively.

TheresultsofthesurveyonbroadbandconsumptioncarriedoutbyANACOMin2006showthatClixistheinternetoperatorwiththehighestsatisfactionratesforservicereliability,bandwidthandinvoicingclarity.

SonaecomFixedcustomercomposition(graphs.22and23)Percentage

2005 2006

�2


HomeDirect:62%HomeIndirect:19%BusinessDirect:9%BusinessIndirect:10%

HomeDirect:30%HomeIndirect:�0%BusinessDirect:�%BusinessIndirect:16%

|index

OurcommitmenttoimproveourservicescontinuouslyhasalsoledtoanongoingdrivetooptimiseourprocessesandourCRMtools,whichcontributedtoanincreasedcapabilitytosolveproblemsafterthefirstcallfromtheclientin2006.

WiththecompleteimplementationofacentralCRMtool,thecallcentrebecomesanintegratedpartoftheoverallsales,marketingandservicedeliverystrategy.Thisenablesagentstohandleservice,support,andsalesinteractionsseamlesslyacrossallcommunicationchannels.Asaresult,Sonaecomcanreducecostswhileenhancingservicedelivery.

In2006,weimplementedthefollowingfeatures:EmailResponse—providesautomaticacknowledgementofcustomeremails;ComputerTelephonyIntegration—providescallerinformationtoagentsautomatically;ContactManagement—providesagentswithacompletehistoryofallinteractionswithacustomer;ContextualSearch—retrievesrelevantinformationfromanywhereintheapplication.

•

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•

•

Weenabledourdealerstoactivateproductsandservicesforourcustomersdirectlyinstorethroughawebinterface.

Astructuredprogrammewasinitiatedinallourcustomerinterfaces(callcentresandback-officeareas),thatminimisesthenumberofinteractionsrequiredbyoperationalprocesses.Anotherstructuredprogrammewasputinplacetosimplifythenecessaryinteractionsthatremain.Forinstance,whenacustomerasksforarateplanchange,weusedtorequireawrittenrequest.Nowthecustomermakestherequestdirectlytotheshoporcallcentre,theprocedureisimmediatelyactivated,andaconfirmationletterissent.Thisclearlyreflectsourstrategiccommitmenttocontinuouslysimplifyingourbusinessprocessestomeetcustomerneeds.

3.3.1.3 CustomerprotectionSonaecomrecognisesthattheemergenceofmalicioussoftwaredesignedtoinfiltratemobiledevicesisoneofthemajorIPthreats,andthatwidercooperationbetweenallnetworkoperatorsandtheircustomersisnecessarytomitigatethisrisk.

Therefore,during2006,SonaecomevaluatedtherisksandpossiblemitigatingproceduresforglobalMobileMalwarethreatslikeCommWarrior,RedBrowser,CommWarriorQandRexSpy.

�3


|index

Withaconsortiumofotherinternationalmobileoperators,wehavesupportedtheestablishmentoftheMobileMalwareGroup(MMG)attheGSMMoUAssociationSecurityGroup.Withthisinitiativeinplaceweintendtocoordinatetheoperators’responsetotheemergingthreatsandtoevaluateidentifiedvulnerabilities.

TheMMGhasthefollowingobjectives:ProvideinformationexchangebetweenoperatorstoallowmonitoringoftheextentofMalwareinfectionwithintheGSMcommunity;EstablishandoperateanintelligencesharingprocesscoveringnewMobileMalwarethreatsandselectedmobiledevicevulnerabilities;

•

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UndertakeindustrylevelinitiativesrelatedtoMobileMalwareincludingelementsasdiverseasidentifyingtechnicalmeasures,advisingonmediahandlingandeducatingcustomers.

Basedonour2006experience,wearecommittedtodevelopandimplementintegratedtechnicalandoperationalantiMalwaresolutionsatterminal,networkandcustomerlevels.

AllinternetservicessuppliedbyNovisincludeaContentFilterthatallowstheaccountadministratortoconfigurewhichusersshouldhavelimitedaccess.Mailboxesincludeantivirusandantispamscreensforallincomingemail.

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|index

3.3.2.1 FairandtransparentcommunicationOurobjectiveistoprovideclearinformationonourproducts,servicesandrateplans,allowingcustomerstomakeinformedchoices.

Weproviderelevantinformationontariffs,rateplanstructuresandrechargesthroughseveralchannels.Theseincludewebsiteswithauserfriendlyapproach,comfortableaccessibilityandhighon-lineinformationupdatecapacity.Forexample,Clixprovidesdetailedinformationaboutservicecharacteristicsandpricingonitsonlineportalforallsalesmaterials(e.g.kitsonsalefortheretailmarketandflyers).

Aspartofitscommitmenttotransparency,duringtheactivationprocessClixsendsitscustomersawrittenconfirmationofthefeaturesandpricesoftheservicestheyhavepurchased.

Informationsupportonrateplansisalsoprovidedbythedifferentsaleschannels,Experimenta andONmagazines,andtheCallCentres.

Optimus NegóciosandNovissalesagentsarespecificallytrainedtoclearlyinformcustomersaboutrateplanalternatives,usingsimulationtoolstobetterevaluatetheimpactofeachrateplanontheirconsumerprofile.

Sonaecombrandsprovideregularinformationtoseveralrateplan

simulatorsthatareavailabletodifferentcustomersegmentsinthemarket.

The“Observatório de Tarifários”rateplansimulatorallowsconsumerstoverifyandcompareinafreeandinteractivewaythecostsofnationalcallsandmessagingprovidedbythedifferentmobileoperators.OptimushasdirectlyparticipatedinthedevelopmentofasimulatorcreatedbyANACOMandpromotesitthroughitswebsite,flyerdistributionandadvertisingmaterialsinOptimusshops.

The“Proteste rate plan”simulatorofnationalmobileoperators,availableforuseby Proteste4subscribers,isanotherexampleofOptimus’activecontributiontotransparencyontariffinformation.

ClixBrandhasanonlinepricesimulatorathttp://acesso.clix.pt/comparativo.htmlwhichhelpscustomerstochoosethebestserviceaccordingtotheirneedsandcomparetheservicesweofferwithallothermajordirectaccesstelecommunicationcompanies.

Inourserviceconditionsandthedirectcommunicationswehavewithcustomers,westronglyadvisethemtokeeptheiraccesscodes(usernameandpassword)tothemselvesandnottosharethemwithanyone.Wealsowarnthemabouttherisksandconsequencesoftheabusiveuseofemailandinternetservices(spam,defamation,hacking).

3.3.2responsible marketing practices

�ProtesteisthemonthlymagazinepublishedbyDECO,thePortugueseentityforconsumersprotection(www.deco.proteste.pt).

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SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>qualityoflife>responsible marketing practices

|index

3.3.2.2 Anti-corruptionandanti-competitivebehaviourSonaecomiscommittedtoactinaccordancewiththebestpracticeinthemarketandinaccordancewithourmissionandvalues.

OurpresenceintheglobalmarketmakesusawareofoursignificantroleinspreadingtheprinciplesofCorporateResponsibility.Conductingourbusinessactivitieswithintegrityandfairnessisofcriticalconcerntous.Thereforewepursuetransparencyinourrelationshipswithemployees,partners,customersandcompetitorsintheeverydayconductofourbusiness.

Inordertopreventcorruption,in200�SonaecomdevelopedaCodeofConductthatprovidesamechanismforouremployeestoreportallegedirregularitiestheyhavebecomeawareof,ortheysuspecttobetakingplace.Thereportingemployee’sidentitywillbekeptanonymous,ifrequested.ThecasesreportedareanalysedinstrictconfidentialitybyourEthicsCommittee.

NocaseofcorruptionhaseverbeenidentifiedinsideSonaecom.Furthermore,Sonaecomhasneverparticipatedinanyactionorsituationthatwasinterpretedasanactofunfaircompetition,orviolationofanti-trustlawsorregulations,ordisloyalactstowarditscompetitorsorconsumers.

3.3.2.3 SafetyofproductsSonaecomdoesnotmanufacturehandsetsorothertelecommunicationsproductsbutwestillrequireourequipmentsupplierstomeettherelevantregulatoryrequirements.Theproductsonthemarketincludemanualsthatexplaintheircapabilitiesandalsoa‘welcomepack’thatexplainstheservicesthatwillbeprovidedwiththeproduct.Therehavebeennoinstancesofnon-compliancewithhealthandsafetyregulationsrelatingtoourproductsandservices.

Inaddition,Sonaecom’ssuppliersmustcomplywiththerequirementsimposedbyANACOM.SuchregulatoryrequirementsandspecificationsareinaccordancewiththeEuropeanDirectivesrelatedtotelecommunicationsequipment.

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SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>qualityoflife>responsible marketing practices

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SonaecomhasimplementeditsQualityManagementSysteminaccordancewiththeISO9001standardforbothitstelecommunicationsandSoftwareandSystemsInformation(SSI)businessareas.Thesesystemsarebasedonaprocessapproach.Keyperformanceindicators(KPIs)areclearlyidentifiedforeachrelevantprocessandsomesub-processes,inordertoensurethatallthecustomer’srequirementsaremet.Theimprovementcycle,basedonthe“Plan-Do-Check-Act”model,includessettingKPIs,carryingoutactivitiestoachievethem,conductingauditstoensurethatintermediateperformancelevelsareon-targetandthefinalsystemrevisiontoanalyseitsperformanceandsetnewKPIs.

3.3.3.1 AreliableserviceSonaecomnetworkhasinterdependentelementsthatlimittheeffectofanydamage,eventoranyotherkindoffailure.

Sonaecomhasmonitoringprocessesinplaceforitsproductsandservices2�hoursadayand7daysaweek,namely:

managementsystemsthatareautomaticallyalertedregardingnetworkorserviceunavailability;consumerscomplaintsarereceivedthrougharecordingprocessthatactivatestheprocessrequiredtosolvetheproblem;networkmonitoringthroughstatisticalprocesses,basedonnetworkinformationandintrusiontests.

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3.3.3quality management

Levelofavailabilityofthenetwork(graph.24)

levelofavailabilitytarget

200�

100.000%99.980%99.960%99.9�0%99.920%99.900%99.880%

200� 2006

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SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>qualityoflife>quality management

|index

Alltheseprocessesgenerateincidentsrecordsandforeachoneofthemwehavearesolutionprocess.Aftereachproblemisresolvedwealwaysconductconfirmationteststoverifythatthenetworkorservicesarefunctioningcorrectly.

OptimusKPIsfortheavailabilityofnetworkacrossthefullcoverageareais99.977%.Graphic2�showsourperformancesince200�.

Sonaecomnetworkismonitoredusingadvancedplatforms.Automatic

alertsallowustodetectanydamageandtakeimmediateaction.Theyalsoprovidepredictionsoflikelyfailurestoenableustotakepreventativemeasures.

Recoveryproceduresareinplaceintheeventofamajorfailure.Thesesetouttheresponsibilitiesandactionsofspecialisedteams.Thesepreventionteamsareavailable2�hoursadaythroughouttheyeartoimplementcontingencyplansforemergencysituations,andalsoforspecialeventslikeChristmasorNewYear’sEve.

Thepossibilityofaninfluenzapandemicaffectinghumans,relatedto“birdflu”,isamajorconcernforgovernments,healthservicesandinternationalorganisationsliketheWorldHealthOrganisation,andthisconcernissharedbySonaecom.

Anoutbreakofpandemicfluwouldhaveamajorimpactontheglobaleconomy,leadingtoaseveredropinallfinancialactivities.Sincetheeffectscouldbefeltacrossallsectors,itiscrucialthatcontingencyplansaredesignedandimplementedbycompaniesinatimelymanner.

Accordingly,Sonaecomlaunchedaproject,named“GaP”,tomanagethepandemicflurisk.

Theprojectaimstominimisetheeffectofhealthproblemsaffectingourworkforceandassurethecontinuityofcriticalservicesforcustomers.Differentactionsrelatedwithpandemicfluhavebeenalreadytaken:(i)Discussionshavebeenheldwithhealthofficials,mainlywiththePortugueseHealthAuthority(Direcção Geral de Saúde);(ii)Asetofgoodpracticeguidelinesand

measurestopromotehygieneandhealthhavebeendefinedandcommunicatedinternallythroughthedevelopmentofaspecificintranetpage,thedistributionofflyersandspecifictrainingsessionsconductedincollaborationwiththeNationalPublicHealthSchool;(iii)Dependenciesoncriticalpartnersandemployeeshavebeenidentified,andstatusinformationhasbeengathered;(iv)Crisismanagementandcontingency/recoveryplansarebeingdevelopedtocopewithamajorstaffshortfall.

Pandemicflucontingencyplan

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SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>qualityoflife>quality management

|index

3.3.4.1 ApositiveimpactSonaecomparticipatesinawiderangeofsocialresponsibilityprojects,addressingdifferentareasofthecommunity.Theseprojectsdemonstrateourcommitmenttothecommunityandourabilitytouseourcompetenciestocreatevalueforsociety.

Usinginformationandtechnologytopromotequalityoflife

“Um Sorriso com as TIC” (A Smile with ICT)Inpartnershipwiththeinstitutionforthepromotionofinformationtechnologies(FDTI-Fundação para a Divulgação das Tecnologias de Informação)�,SonaecomparticipatedintheICTPaediatricproject.

Thepurposeofthisprojectistoendowthepaediatricwardsofpublichospitalswithatechnologicalinfrastructuretoenablehospitalisedchildrentoenjoyleisureactivitiesandspendtimewithfamilyorfriends.Thisprojectisaimedatchildrenbetweentheagesof2and1�,thefamilymembersofthosechildren,techniciansofthehospitalandvolunteers.

Theprojecthasatwoyeardurationandiscarriedoutthroughinvestmentinequipment(multimediacomputerswithbroadbandInternetconnections)andleisureandtrainingmaterials(leisureandtrainingsolutionsforthechildrenandspecifictrainingforthehospital

techniciansandfamilymemberstoenablethemtosupervisethechildren’suseofthecomputerandcommunicationequipment).Bytheendof2006,SonaecomhadworkedwiththreehospitalsandequippedthemwithfifteenKanguruconnectionsandsix3Gmobilephones(Video-Call).Sonaecomisalsothesponsorofallthecommunicationsmadewiththisequipmentinthethreehospitals.

BuildinggoodrelationswithlocalcommunitieswithrespecttopublicinitiativesandcontributingtotheInformationSociety

SMILE:asmileforwhoeverneedsit

“Smile”ispartofSonaecom’sCorporateResponsibilityPolicy.Thisinitiativeaimstoraiseawarenessamongstemployeesofsocialexclusionissues,encouragingthemtogetactivelyinvolvedonavoluntarybasiswithinthecommunity.SinceitscreationinDecember200�,around22%oftheemployeesofSonaecomcompanieshavetakenpartinvoluntaryactivities.

Smilecarriesoutitsactivitiesallyearround,including:regularactivitiessuchasschoolsupport,visitstohospitalisedchildrenanddaycentresfortheelderly;eventssuchas“VolunteerworkeroftheYear”,whichrequirethegreaterinvolvementofemployees,fosteringthespiritofcohesion;

•

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3.3.4services for the community

�PortugueseFoundationwhichpromotesInformationTechnology.

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SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>qualityoflife>services for the community

|index

awareness-raisingeventssuchasbloodtransfusions,bonemarrowdonationsandgoodenvironmentalpractice.

Aroundadozeninstitutionsandprojectshavealreadybenefitedfromthecontributionof“Smile”,suchas:Acreditar, Ajuda de Mãe, Aldeias SOS, Cruz Vermelha, Obra ABC, Legião da Boa Vontade and Obra do Frei Gil.

Recently,inordertoencourageregularsupportforvariousinstitutions,the“Smile”projecthasbeenwidenedtoincludefamilymembersofSonaecomstaff,enablinglargervolunteerteamstobeassembled.

Theabilitytounderstandanduseinformationandtechnologytopromotemedialiteracy

PúblicoatSchoolPúblicoatSchoolisoneoftheoldestPúblicoprojectsandapioneeringprojectinPortugal,havingrunforthepast1�years.Itsobjectivesaretoestablisheducationalconnectionswithschools,teachersandstudents,promotesocialcommunicationandmediauseand

• encouragecriticalreflectiononthevariousmethodsofsocialcommunication.Inthisway,itisintendedtofostertheinterestofyoungpeopleinreadingnewspapers.

Themainactivitiesofthisprojectare:publications(monthlybulletins,“PúblicoatSchool”magazines,teacherguides),nationalschoolnewspapercompetitions,schoolsupportandschoolsessionsand“Mediaweek”.

Forexample,lastyear,“PúblicoatSchool”projectencouragedtheschoolperiodicalsthatpromoted,inthescopeoftheNationalSchoolPeriodicalCompetition,theeducationfortheconsumption.SomeofthetextsonthesubjectthatpupilsandprofessorshadpublishedinsomeoftheperiodicalsthathadparticipatedintheinitiativehadbeenenclosedintheBulletinofOctober.

Theextensiveactivitiesofthe“PúblicoatSchool”projectalsoincludeparticipatinginvariousseminarsandconferences,collaboratingwithteachersandstudentsintheirstudiesandprovidingdocumentsandpublications.

FormoreinformationaboutSonaecomprojectsseewww.sonae.com.

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SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>qualityoflife>services for the community

|index

SonaecomfullycooperateswithANACOMandtheGovernment,todefinethebestregulatoryenvironmentforthedevelopmentoftelecommunicationsservicesinPortugal.WeregularlyprovideourviewsondifferentissuesbyrespondingtopublicconsultationsheldbytheRegulator.Wealsosenddirectly,orthroughtheassociationswearepartof,ourcontributionstopublicconsultationsheldbyinternationalentitiesliketheEuropeanCommission.

SonaecomalsoparticipatesinseveralworkinggroupspromotedbytheRegulatorwhichdebatethedifferentissuesinfluencingtheprovisionofcommunicationsservicestothepopulation.

Inordertoensurefullcompliancewithgeneralandspecificrulesthatapplytoitsactivities,Sonaecomhasadedicatedteamthatfollowslegalandregulatorydevelopments.

Apartofitsdutytocooperatewiththeauthorities,Sonaecom,throughitsEGO(ResponseTeamforOfficialRequests),isresponsibleformanagingandreplyingdailytoallofficialrequestsforinformationandotherordersoriginatingfromthepoliceorjudicialinstitutions(Courts,Police,PublicMinistry).InformationrequestsaresenttoSonaecomintheformofofficialletters.Thisrequiresthehandlingofasignificantvolumeofcorrespondence,creatingaconsiderableworkloadtosupplytimelyandclearresponses.During2006toimproveefficiencyinrespondingtothepoliceandthejudicialsystem,SonaecomhasimplementedtheS.I.A.J.(IntegratedSystemtoSupportJustice),asystemthatfacilitatesandprovidesdirectaccesstoarangeofinformationtailoredtotheneedsofthoseorganisationsandoptimisestheprocessingofofficiallettersandordersreceived.

Inaccordancewithourprinciplesoffairnessandtransparency,wedonotprovidecontributionstopoliticalpartiesorsimilarinstitutions.

3.3.5relationship with the government and institutions

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SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>qualityoflife>relationship with the government and institutions

|index62

3.4. energising society

|index

AtSonaecomwewanteverybodytobeabletohavetheirneedsandaspirationsrecognised,understoodandmetbyourservices.Wewantsocietytomaketangibleprogressandachieveitsgoals.Therefore,wehaveplaced“people”atthecentreofourinnovationprojects,recognisingandsupportingdiversitybystrivingtomeetthewidestpossiblerangeofneeds,seekingtoachievethebestmatchbetweenproductsandservicesprovidedandtheneedsoftheindividual.

WhenOptimusenteredthemarketon1�thSeptember1998,itheraldedthestartofanewphaseinthetelecommunicationssectorinPortugal.Asshowninthegraphics2�and26,since1998theaverage

pricesoftheothermobileoperatorsfellandbetween1998and200�thepenetrationrateincreasedfrom20%toalmost100%.

OptimusisaninnovatorwithinthePortuguesemarket,breakingawayfromestablishedconventions.Ithaslaunchedseveralinitiativestomakemobileservicesaffordableforanincreasingnumberofcustomers:theaveragepriceofmobilecallshasfallen,thepriceofinternationalcallshasbeencut,andtheSMSserviceboosted.OptimusistodayoneofthekeyplayersinthePortuguesetelecommunicationsmarket.

3.4.1enhancing inclusiveness through our services

PortugueseMobileoperatorsaveragepricesbetween1993and2003(graph.25)Euros/Min.

AB

1.11

0.90.80.70.60.�0.�0.30.2

20031993 1998

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SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>energizingsociety>enhancing inclusiveness through our services

Source:RBBEconomics,“AneconomicassessmentoftheOptimus/TMMmerger:ReportfortheAutoridadedaConcorrência”,August2006.

|index

Optimuscreatedtheconceptofflexiblerechargeablepre-paidcardsandrevolutionisedtheconceptofnetworkingbyintroducingatariffplanthatallowscustomerstocallanynumberfromanynetworkatasetprice.

Inlinewiththeobjectiveofenhancingtheinclusivenessofourservice,wehavebeenrecentlylaunchednewgenerationproducts:Rede�,alowcostservicebasedonacompetitivepriceproposal;Kanguru,ourmobilebroadbandInternetaccessoffer;andOptimusHome,afixednetworkproductthatusestheGSMnetworkforthelocalloop.

OtherdistinctivepropositionsinthenationaltelecommunicationsmarketincludethelaunchofOptimusMessagePacketservice,aninnovativeservicethatallowscustomerstopurchaseshorttextmessages(SMS)ataparticularlyattractivepriceandthelaunchofWAPtechnologywiththecreationofthefirstmobileportalinPortugal.

AtSonaecomFixed,weareproactiveinpromotingourADSLoffering,bothintheresidentialsector,throughClix,andinthecorporatesector,throughNovis.

Portuguesemobilephonegrowthbetween1998and2004(graph.26)Thousand minutes

OutboundtrafficOutboundtrafficannualgrowthratePenetrationraceSource:AnacomStatisticalYearbooks,1998-2000�

12,000,000

10,000,000

8,000,000

6,000,000

�,000,000

2,000,000

01992

100%90%80%70%60%�0%�0%30%20%10%0%

200�1996 1998 2000 2002199�

6�


|index

Kanguru,ourportablebroadbandinternetoffering,positionedasanalternativetothetraditionalfixedlinebroadbandconnection.Theproductoffersauniquevaluepropositionbasedonsimplicityofinstallationanduse,alliedwithahighlycompetitivemonthlycostandspecialisedcallcentreandwebsiteservices.

OptimusHome,ourfixedoverGSMproductaimedatthemarkettraditionallydominatedbyfixedoperatorsandlaunchedinpartnershipwithSCF.Itsvaluepropositionreliesontheeliminationofthe“monthlyfee”,commonlychargedbytheincumbentoperatorforlinerental,andonsimpleandcompetitivetariffs.

Rede4,alowcostservicebasedonastrongpricevalueproposition.APaidCallCentreservice,leanlogisticswithdirectdistributionandextremelylowadvertisingcostsallowforadiscountofupto55%onaveragepriceperminutecomparedwithothercomparabletariffsinthemarket.

Newgenerationproducts

OurinvestmentinBroadbandhasallowedgreateraccessspeeds,atmorecompetitiveprices,fortheresidentialmarket.

OurClixSmartTVservice,whichprovidesanintegratedultra-fastInternetaccess,Telephone,DigitalTVandHomeVideoservice,revolutionisesthewaytelevisionisperceived.Thisinnovativeservice,basedonADSLtelevision,includesthemainnationalandinternationalchannels.

Developmentofnewaddedvalueservices,suchasWebConferenceandFileSharing,togetherwiththelaunchofsimplerandmoreflexibletariffplans,hasallowedustoreinforceourpresenceinthecorporatesector.

6�


|index

Sonaecomhastakengreatstridesininnovationbydevelopingbreakthroughproductsandsolutionsforthemarketplacewhichwerenotforeseenbycompetitors.InnovationisanintegralpartofSonaecom’sculture:theattitudesandbehaviourofallouremployeeschallengeindustrypre-conceptionswhichlimitperformanceandtheachievementofbestpractice.

Wearewellknownforconstantlycreatingnewformsofcommunications,bothinthemobileandfixedmarkets:simpler,moreefficientandmoreprofitable,whichenhancequalityoflife.

OptimuswasthefirstPortugueseoperatortototallyequipitsnetworkwithGPRS,makingthetechnologycommerciallyavailable.ItwasalsothefirstmobileoperatorintheworldtoofferHSDPAtechnology.ThecommerciallaunchofHSDPAtookplaceon1�thFebruary2006,inMadeira.TheintroductionofHSPDAtechnologyinthenetworkhasprovidedOptimuscustomerswithmobilebandwidthathigherspeeds,adoublingofthesystemcapacityandafasterresponsetimeforinteractiveservices.

OptimusZoneisaservicethatintegratesVideo,MultimediaServicesandunrestrictedInternetaccessinthesamehandset,givingatasteofthemobilecommunicationofthefuture.ItwasthefirstserviceevertointegratethetotalMMSexperience(video,imageandsound)inasingleproduct;Internetwithaccesstoanywebsiteandaportablemultimediaportalwithinformation,newsandleisureservices.

OptimusistheonlymobilecommunicationscompanyintheworldtohavewonthreeconsecutiveGSMAwards,adistinctionthatreinforcesthecompany’sachievementsandinternationalrecognition.ThemainchallengenowistocontinuegrowinginthetelecommunicationsmarketinPortugal,providingcustomerswithhighqualityservicesandmobilephones,thusimprovingqualityoflifethroughmakingthingseasier,bringingpeopleclosertogetherandprovidingentertainment.

During2006,investmentinfixedassetswas11�.8millionEuros,ariseof32%on200�.UMTSnetworkinvestmentincreasedto�9.7millionEuros,andrepresented�2%ofthetotalinvestment.

3.4.2empower capabilities

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SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>energizingsociety>empower capabilities

|index

OptimusandWeDoprovideSMSsolutionforMinistryofEducationOptimushasdevelopedapioneerprojectwiththeDirectorate-GeneralforHumanResourcesandEducation(DGRHE)withinthecontextofthe2006competitionforkindergartenworkersandteachersofprimaryandsecondaryeducation.Optimusprovidesaservicethatallowsteacherstofindout,viaSMS,thelistsofcandidateswhohavereceivedaplaceforthefollowingacademicyear.

Toaccesstheservice,theteacheronlyneedstosendanSMSandtheyimmediatelyreceive

anSMSwiththeinformationregardingtheplacement(whetherornothe/shewasplaced,atwhatschool,etc.).Fromthepointofviewoftheuser,theadvantagesofthisserviceincludespeed,convenienceandeaseofaccessibility.

1stPhase–23,184SMS(80%ofwhichansweredinlessthan4sec)2ndPhase–10,954SMS(95%ofwhichansweredinlessthan1sec)

SMSServicefortheMinistryofAgricultureUndertheoperationalprogrammeofthe

InformationSocietyandinpartnershipwiththeDirectorate-GeneralforForestryResources(Direcção Geral dos Recursos Florestais),Optimusworkedonthedevelopmentofaninformationsystemforforestryprotection.Theprojectinvolved238observationpointsthroughouttheforestedareasofPortugal.Itsaimwastoconceiveacentralisedandup-to-datecommunicationsandinformationsystem,whichwouldsupportdecision-makinginfireprevention,vigilanceanddetection,leadingtocostsreductionandmoreefficientcommunications.

Usingmobiletechnologiesasatooltoreducecostsandincreaseefficiencyofcommunications

Breakdownof2006InvestmentsatOptimus(graph.27)

Telecomunicationsnetwork:91.7%Informationsystems:19.�%Facilities:1.�%Others:2%

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|index

ADSL2+isanewtechnologicalgenerationthatprovidesconsiderablysuperiordownloadspeedsthanthoseoftraditionalADSL.ThedownloadspeedswithADSL2+mayreach24Mbpsagainstthemaximum8MbpsofthestandardADSL.

Thetechnologicalsuperiorityofthenetwork,basedexclusivelyonthelatestgenerationandhighperformancetechnologies,maintainsPortugalatthelevelofthemostadvancedcountriesintermsofbroadband.InthiscontextClixreinforceditspositionas

aninnovationleader,increasinglyassumingitsroleattheforefrontofdevelopmentinthesectorinPortugalandcontributingtothedevelopmentoftheInformationSociety.

ADSLspeedprogression

ADSL2+

Asanessentialsteptoachieveautonomy,SonaecomFixedhasfocusedontheconstructionofitsowninfrastructure,investingmorethan110millionEurosinasophisticatedtelecommunicationsnetworkbasedonthemostadvancedtechnologies.Thisalreadyhasabackboneofmorethan6,100kminlength,withmorethan23thousandkilometres

ofopticfibrepairsinmetropolitannetworks(MAN).ThiswillensureadirectconnectionbetweenthePortuguesenetworkandthelargestworldwidecommunicationsnetworkinthecountry-theFranceTelecomframework.

8Mbps

September2004 April2005 July2006 September2006

16Mbps 20Mbps 2�Mbps

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|index

Novishasdevelopedacombinationofarticulatedservices,whichderivemaximumadvantagefrombroadband.

Simpleandintuitivetouse,Novis’eServiceswerespecificallydesignedforprofessional

use,andcoverseveralcorporateneeds.TheeServicesrangeincludesfourmainservices:eBackup,eConference,ePacks,eFaxandanarrayofadditionalintegratedservices:theeExtras.

Thisclearfocusonprovidingthemostadvancedservicesinthemarket,combinedwiththedevelopmentandofferingofanextensivearrayofsolutionsbasedonbroadband,reflectsNovis’positioningsincethebeginningof2005.

eServices

Inthenearfuture,SonaecomFixedstrategicdirectionswillfocusonconsolidatingitstransformationtoadirectaccessbusiness.Itwillinvestinreinforcingandexploitingitscurrentdirectaccessbroadbandbusiness,throughexpandingitsdirectaccesscapacity,anddevelopingnewbroadbandservicestoensurethatcustomersreceiveahighqualityofserviceandvalueformoney.

InnovationispartofourvaluesandstrategicobjectivesatSonaecom.Thereforeweprovideopportunitiesfornewsolutions,basedoninnovativetechnologiesthataredevelopedandimplemented

internally.ExamplesofourentrepreneurialattitudeareBizdirect,WeDoandMainroad.

TheBizB2Bunitisresponsibleforelectroniccommercesolutionsbetweencompanies,basedonanITplatformthatmakese-sourcingande-procurementprocesseseasierforcompaniesthatbuyandprovidegoodsandservices.

Sonaecomsupportedtheexternalisationandlaunchonthemarketofthesecompaniesastheydeveloped.

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|index

AtSonaecomwehaveastrongcommitmenttowardstheeconomicandsocialgrowthofPortugal.ThroughoutourcontinuousinvestmentintheInformationSociety,wesupportthedevelopmentofourcountry,andenhanceitscompetitivenesscomparedtothewealthiercountriesoftheEuropeanUnion.

ThecommitmenttoPortugueseSociety,whichaccountsforaninvestmentofmorethan60millioneurosinthelastfewyears,isfurtherenforcedbySonaecom’sfocusonnurturingtheInformationSociety.Linkedtotechnologicalinnovation,InformationSocietyisanintrinsicdriverofSonaecomactivities.WebelievethatInformationSocietyisthebasetodiffuseaKnowledgeSociety:innovativeandtechnology-drivenproductsandserviceshaveapotentialforsocial,cultural,economical,politicalandinstitutionaltransformation.ByfosteringtheInformationSociety,wewanttogivearelevantcontributiontothegrowthanddiffusionofaKnowledgeSociety.Theprojectsdescribedbelowareaclearexampleofthisstrategy.

PromotingthecompetitivenessofPortugueseindustryI-nnovatorsprogrammewasapioneeringinitiativeinthePortuguesetelecommunicationsindustry.Itaimstothecreationofpartnershipsamonghightechnologyfirms,businessassociations,incubatorsandcontentsuppliers,inordertostimulatethedevelopmentoftheapplicationandcontentindustryforMobileCommunications,targetingResidentialCustomers,StudentsandSMEs.

ThroughthelaunchoftheI-nnovatorsprogram,OptimusreconfirmeditsleadershipininnovationandcontributedinadecisivemannertothedevelopmentandprogressoftheInformationSociety.

ExploringthepotentialofpartnershipsTheDigitalTaxiprojectwastheresultoftheeffortspromotedbythePortugueseGovernment,inordertoaddresstheconcernsofpeopleduetotheperceivedlowlevelofsafetyofthismodeoftransport.ThemainpurposeoftheDigitalTaxiprojectwastoincreasedriversecurity,whilecontributingtoimprovetheserviceprovidedtousers.TheprojectwasdevelopedbyOptimusinpartnershipwithAutocoope,theLisbontaxicooperative.Thissolutionimpliestheuseofdigitaltechnologytoprocessandtransmitdatabetweenthecentralofcontrolandthetaxidrivers,basedonOptimus’GSM/GPRSnetwork.Aseriesoftoolsofferconnectionbetweenthecentralofcontrolandthetaxidrivers,whocanbeaidedbyAutocoope’soperationalcentreinemergencysituationandbythepolice,ifnecessary.

UsinginnovativeapproachestoserveconsumerneedsIn2003,OptimuswasthefirsttointroducetoPortugalanewcorporateapplicationOptimus m-Office.ThisserviceallowstheownersofaGPRSmobilephone,connectedtotheOptimusnetwork,toaccesstheiremail,calendarandOutlook®contactslodgedontheirPC.Thisserviceiseasilyaccessible,eitherinPortugalorabroad,withnoneedforaportablecomputer.Optimus m-Officewasdesignedtaking

3.4.3nurturing the information and knowledge society

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SONAECOMSUSTAINABILITYREPORT2006|solidpast,challengingpresent,brightfuture>energizingsociety>nurturing the information and knowledge society

|index71


intoconsiderationtheneedsofanincreasinglydemandingcorporatemarket.Itgrantedtoitsusersagreaterproductivityandflexibilityincommunication,bymeansofalowcostsolutionthatdidnotimplynewandexpensiveequipment,easytouseandquicktoinstall.

Onceagain,in2003Optimusplaceditselfaheadofthecompetition,withregardstotechnologicalandmarketinginnovation,thankstothelaunchofOptimusZone.OptimusZoneisthefirstservicemarketedintheworldthatintegratesthetotalMMSexperience(video,imageandsound)inasingleproduct;trueInternetwithaccesstoanywebsiteandamultimediaportalwithinformation,newsandfunservices,allofwhichprovidesatasteofmobilecommunicationofthefuture.TheKangurulaunchedin200�playedanimportantroleinthedemocratizationoftheaccesstotheInternetinPortugal.OptimuscarriedoutaprogrammeofactionsaimedtoencouragethecustomerstotrytheproductatOptimus’pointsofsaleandspecificallychosenlocationswherealargenumberofpeoplehadtheopportunitytogetknownwiththisnewdimensionofInternetaccessservices.Thisactionwasfundamentaltoestablishthecredibilityofthisnewtechnologyonthemarket,consequentlygivingacriticalcontributeforitsfutureuptake.ForSMEsOptimuspromoted,during2months,acampaignoffreeexperimentationofKanguru.DuringthisperiodcustomerswereabletotrythemobileInternetaccesswithoutanycommercialcommitment.ThecreationofthePortableBroadproductcategorywasleadbyOptimus.Thislaunchstronglybenefitedthe

consumerasOptimuscompetitorswerecompelledtolaunchsimilarproducts,increasingmarketcompetition.

Alsoin200�,OptimuslaunchedQuickTalkie,aservicethatassociatesallthefunctionalitiesofamobilephonewiththoseofawalkie-talkie.Thisserviceallowsuserstoexchangevoicemessageswithonepersonormorepeopleatthesametimeeasilyandintuitively.Therearenolimitationstodistanceorqualityofcommunicationwiththeaddedbenefitoffacilitatinggroupcommunication.

In2006,inpartnershipwithP2B-PlacetoBusiness,Optimuslaunchedanewservicetoprovideticketsforshows-Mobi-Ticket.Bypayingfortheentranceinthetraditionalways,attheshow’spointsofsale,theuserreceivesonhismobilephoneanSMSwiththe“ticket”(barcodeandremainingnecessaryinformation).ThisSMSmustbekeptandpresentedattheentranceoftheshowpremisesforvalidation,viaacommonopticalreader.Fortheproducersofshows,theMobi-tickethascountlessadvantages,bothintermsofsecurityandserviceimprovement,sinceitpermitscontrollingparallelsales,guaranteesthedeliveryofthetickets,enablesthesaleofticketsatthelastminuteandresultsinareductioninproduction,operatingandpapercosts.TheMobi-ticketrepresentsthefutureofboxofficesinPortugal.Inthenearfuture,thisinnovationwillfacilitatethewholeprocessofbuyingticketsforanyshow,sinceitavoidstheneedofhavingtotraveltothe

|index72


box-officelocation,itisasimpletouseserviceanditeliminatesticketlossesandforgetfulness.

Alsoin2006,OptimuslaunchedanewapplicationfortelevisiononthemobilephonethatenableclientstohaveatruetelevisionexperienceandtakeadvantageofthelargeofferofchannelsofferedbytheOperator.Withthisapplication,ClientsmayviewtelevisionontheirmobilephonewiththemostadvancedfunctionalitiesoftraditionalTV.Itisaninnovativeandimportantmovementinmobiledataservices,sinceitcreatesatotallynewuserexperience,verysimilartowhatclientsareusedtoonotherinterfaces.

Enhancingaccessibilityforallcustomersregardlessofincome,age,gender,disability,language,cultureandICTliteracy,throughthedevelopmentofsuitabletechnologyandservices.

VoicerecognitionsystemtovoicemailcontrolInordertoallowtheuseoftheintegratedsystemofcommunicationbycustomerswithspecialneedsandbycustomerswithloweraccesstothenewtechnologies,Optimusdevelopedaninterfacebasedonrecognitionofvoicethroughthetelephone.Thisinterfaceallowstheusers’theaccesstoallthefunctionalitiesthroughvoicecommands.

Text-to-speechSystemIn2002,Optimusstarteddevelopingasystemofvoicesynthesis

forPortugueselanguagespeakers.Thecostsandtimingsforthedevelopmentofthistypeofservicesareusuallyveryhighandinhibittheiravailabilityatacceptablecostsfortheconsumers.Throughthissolution,Optimusmadeavailabletocontentpartnersthecreationofinformativeserviceswithouttheneedofdedicatedwritingsforeachservice.

Subsidisingof3Gequipment-terminalsandplatesOptimushasbeensubsidising3Gequipment-terminalsandplates-inordertoeliminatethemainbarriertotheaccessandcontributetothedemocratizationoftheaccesstotheservices.ThegrantingofsuchequipmentisimportanttodiffusethebenefitsofservicesasmobileInternet,videocalls,etc.amongthepopulationandacceleratethediffusionofthenewtechnologies.

PublicinitiativesthatbuildgoodrelationshipswithlocalcommunitiesandcontributetotheInformationSociety.OptimushassignedanagreementwiththeFDTI(Fundação para a Divulgação das Tecnologias de Informação)tocollaborateontheTechnologicalTourproject,asatechnologicalpartner.WewillbeprovidingtheInternetaccesstechnologywhichwillpermithighspeed(UMTS)mobileInternetaccesstotheparticipantsatthetourinanypartofthecountryatanytimeoftheday.Optimushasfitoutthetourbusandthetrainingvanswhichwillbetravellingaroundthecountry,especiallytothoseareaswheretechnologicaltrainingisless

|index73

accessible.WiththispartnershiphighspeedInternetnavigationwillbecomearealityfromtheNorthtotheSouthofthecountry,eveninthoseareasthatarelessprivilegedintermsoftechnology.

Understandanduseinformationandtechnologyavailabletopromotemedialiteracy.Theintegrityofeditorialpolicies,basedonacommitmenttoimpartiality,transparencyandcredibility,makesthissectorasociallyresponsibleprojectinitself.Asareferencenewspaper,Públicocontributestoinformationsocietyandrecognisesitsresponsibilityasaneducatorofsociety,andseekstonurturetheknowledgesociety.

Inacountrytraditionallycharacterisedbyapopulationwithhighlevelsofilliteracyandalowinterestinreading,PúblicohasassumedaroleinthedevelopmentofPortuguesesociety.Thelaunchingofassociateproducts,likebooksandCD’s,ispartofthisstrategy,andaimstointroducenationalculturetopopulationswithlowerlevelsofculturalinclusion.Theon-lineversionofthenewspaperhasalsocontributedtothisaim.Whendisseminatinginformationthroughnewcommunicationchannels,Públicoisabletowidenitssphereofinfluence,accessingyoungergroupsandcontributingtothepromotionofthePortugueselanguage.


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|index7�


CommunicationforallProject:developmentofanintegratedsystemwhichwillallowvoicecommunicationviaGSMterminalsforthebenefitofindividualswithpartialortotallossofmovement.ThisprojectreceivedaGSMAwardintheBestCommunityAwardcategory.

AguiaI&IIProject:incooperationwiththedepartmentofMechanicaEngineeringofCoimbraUniversity,Optimussupportedtheinstallationandtestoffiredetectionvideo-monitoringequipment.Thisequipment,featuringinfra-redcamerasrayandmeteorologicalstation,wasinstalledinOptimusinfrastructures/masts.

HeathMobileProject:OptimushaslaunchedapioneerserviceonMMSandGPRSplatforms,developedinpartnershipwithEricsson,TheMalóDentalClinic,WeDoandCardinal2.Thisserviceprovidesfullymobilemanagementofthemultipleactivities

•

•

•

inamedicalunit,andtotalintegrationwithmanagementinformationsystems(appointments/changeofappointments,consultationofaccounts,medicalstaff,clinicalfilesincludingx-rays,stockcontrol,etc.).

OptimusAlertServiceProject:anintegratedsolutionformobilecommunicationbetweenfirestationsandrelatedelements,allowingimmediatecontactbetweenthetwobySMSinordertoevaluate,inrealtime,thespeedandresourcecapabilitynecessarytorespondtoemergencysituations.

OptimusFleetManagementProject:developmentofanintegratedsystemforcentralisedfleetmanagementfromacommandcentre(computerwithGSMmodem)collectinginformationbytelemetrics(levelcontrol,kilometres)andGPSlocalisationofvehicles,aswellastwo-wayinformationexchangewithdrivers.

•

•

OptimusStudentsProject:TheOptimusStudentswasapilotprojectofamobileportalforuniversities,developedincooperationwiththeÉvoraUniversity.TheprojectansweredtotheneedoftheUniversitytobeaccessiblealsobythemobileInternetandGSMtelephonesofteachersandstaff.ThemainfunctionalitiesoftheserviceweretheinformativecontentsoftheIntranetoftheUniversity(hourly,classifications,contact,services,etc.),aswellasfunctionalitiesmadeavailablebyOptimus(loginsafe,personalization,email,agenda,contact,forums,newsgroup,wizardsofpagesweb/wap,touchs,nationalandinternationalnotice,pastimes,etc.).

GeoSMSProject:mobilesystemforthelocalisationofpeopleorobjectsbearingamobileGSMterminalwithanOptimusSIMcard.

•

•

OthersSonaecomprojectspromotingthedevelopmentofKnowledgeandInformationSociety

7� |index|index

4. towards a global communityinventingthefutureistoseeineachdayan opportunity to exceed your expectations

|index76

4.1. commitments for the future

|index77

SONAECOMSUSTAINABILITYREPORT2006|towardsaglobalcommunity>commitmentsforthefuture

Oursustainabilitycommitmentsreflectourgrowinginterestincontributingtothedevelopmentofsocietythroughinnovativeproductsandservices.InnovationispartofourcultureandwewillcontinuetouseittocreatevalueforSonaecomandourstakeholders,andthushelpshapeabrighterfuturefortheglobalcommunity.

Therefore,ourcommitmentsarerelatedtothefourareasthatweconsidertobeoursustainabilitychallenges:Our People, Environmental Stewardship, Quality of Life and Energising Society.

Category Issue Objectivesandtargets Deadline Scope

Ourpeople Employees Surveysandresponsivefocusgroups Expandemployeessurveysandresponsivefocusgroups tooutsourcedsalesforce YE2007 Optimus Technicaltraining DevelopmentoftheWeDoTechnicalUniversityconcept YE2007 WeDo Trainingprogramme Developmentofspecifictrainingprogrammesforjournalists andotherPublico’semployees YE2007 Público

Supplychain Sustainablecriteriaincontracts Developmentandinclusionofa“sustainablearticle” (thatincludesenvironmental,labour,ethicalandhuman rightsprotection)intheagreementswithsuppliers YE2008 Sonaecom Environmentalawareness Increaseenvironmentalauditsandwhennecessary complementwithtrainning YE2007 Sonaecom

Environmentalperformance Improvesuppliersenvironmentalperformanceby10% 1Q2008 Sonaecom

SONAECOMSUSTAINABILITYCOMMITMENTSFOR2007ANDONWARDS

|index

Category Issue Objectivesandtargets Deadline Scope

EnvironmentalStewardship Environment Recycling Increasethereturnofmobilesby8% YE2007 Optimus

EMF SupportmonITProjectinordertomonitoringEMF frombasestations Ongoing Optimus Energy Investigatealternativeenergysources YE2007 Optimus Improvedatacentreenergyeficiencyaccording totheguidelinesof“thegreengrid” YE2007 Mainroad

Definestrategyfortheincorporationofhibrydcars YE2007 Sonaecom Climatechange DevelopmentofaCO2compensationstrategy 1Q2008 Sonaecom Waste Definestrategytoreducethetonnageofwastesenttolandfill YE2007 Sonaecom Monitoring Realizeenvironmentalinspectionstoallfacilities YE2007 Sonaecom

Qualityoflife Customerprotection CustomerSafeandSecurityProgram Developandimplemetsecuritytools,proceduresandtecnhology topreventchildrenaccessingadultcontent �Q2007/2008 Optimusand SonaecomFixed MobileMalwareProgram Developandimplementintegratedsecuritysolutionsregarding mobileMalwareforterminals,networkandcustomers �Q2007/2008 Optimusand SonaecomFixed Dataprotection Improvecustomerdataprotectionsystemsandprocesses YE2007 Optimusand SonaecomFixed Community Responsibleandsafeuseofproducts Developanareainourwebsitetopromotebetterenvironmental andsocialpracticesregardingourproducts YE2007 Optimusand SonaecomFixed Smileprogramme ConsidertheextensionofSmileprogrammetoourpartners YE2007 Sonaecom

RiskManagement Identifykeysustainablityrisks Ensurethatenvironmentalandsocialrisksandstakeholders andpromotetheirmanagement issuesareidentifiedandaddressedbytheorganisation �Q2007 SonaecomEnergizingsociety InformationSociety Dematerializationofprocesses Dematerializationofcustomerprocesses YE2007 Bizdirect andservices Dematerializationworkflowtomanagepurchases atOptimusandNovis. YE2007 Optimusand SonaecomFixed

EnableSalesAgentnetworkinstoredirectactivation operations(70%ofprocessesusingwebactivations) YE2007 Optimusand SonaecomFixed

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SONAECOMSUSTAINABILITYREPORT2006|towardsaglobalcommunity>commitmentsforthefuture

SONAECOMSUSTAINABILITYCOMMITMENTSFOR2007ANDONWARDS(continuation)

79 |index|index

glossary

|index

3G Termusedtodescribeathirdgenerationmobilecommunicationssystem.Followsonfromthesecondgeneration(2G)GSMcellularnetwork.Itisanevolutionincommunicationsbasedoncircuitswitchingtohigh-speedmobilebroadbandnetworks,wherebydataistransmittedoverpackages.

ADSL AsymmetricDigitalSubscriberLine–theasymmetrictransmissiontechnologythatiswidelyusedwithintheXdslfamily.AnADSLconnectionprovidesahigh-speeddownstreamchannel(receiving)(morethan1.�Mbits/s)andalowerspeedupstreamchannel(sending)(16to6�0Kbits/s),apartfromtheregulartelephoneserviceinthelowfrequencyrange.Itisamodemtechnologythatconvertstheexistingtwisted-pairtelephonelinesintohigh-speeddigitallines,suchasforfastinternetaccess.

Backbone Setofmostlyhigh-speedcircuits,formingthemainsegmentsofacommunicationsnetworktowhichthesecondarysegmentsareconnected.

BSS BusinessSupportSystem.

DWDM DenseWavelengthDivisionMultiplexing–afundamentaltechnologyfortheevolutionofthecurrentdatatransmission.Thissystemallowsthecombinationofseveralwavelengthsinalightsignaltobetransmittedinjustoneopticalfibre.

GPRS GeneralPacketRadioService–GSMsystemevolution,basedonpackageswitching,allowingforatransmissionspeedofupto11�Kbps.

GPS GlobalPositioningSystem.

GSM GlobalStandardforMobileCommunications–standardusedin2Gdigitalmobilecommunicationssystems,whichspecifieshowdatathroughthespectrumiscodifiedandtransferred.

HSDPA High-SpeedDownlinkPacketAccessoverW-CDMAnetworks–technologyimprovingUMTSdatatransferrate,thereforealsoreferredtoasbeingofthethirdandahalfgeneration(3.�G).

IP/MPLS InternetProtocol–packetswitchingprotocolusedtorouteandconveyinformationintheinternet.

IT InformationTechnologies.

IS InformationSystems.

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SONAECOMSUSTAINABILITYREPORT2006|glossary

|index

Kbps Digitalinformationtransmissionspeedmeasuringunitwhichcorrespondsto102�inthousandbitspersecond.

MAN MetropolitanAreaNetwork–high-speedcommunicationnetworkofametropolitanarea,supportedoveropticalfibrecable.

Malware Issoftwaredesignedtoinfiltrateordamageacomputersystemwithouttheowner’sinformedagreement.

Mega/Mbps Digitalinformationtransmissionspeedmeasuringunitwhichcorrespondsto102�kbps.

MMS MultimediaMessagingService–multimediamessagingservicecombiningtext,imageandsoundoperatinginGPRSand3Gnetworks.

OSS OperationsSupportSystem.

SIM SubscriberIdentityModule.

SMS ShortMessagingService–servicetoExchangeshortmessages,commoninmobilenetworks.

ULL UnbundlingoftheLocalLoop–choiceforaccessnetworkconsistinginunbundlingthelocalloop,allowingotherlicensedoperatorstousethelocallooppertainingtotheincumbentoperator,forservicerendering.

ULLReferenceOffer UnbundlingLocalLoopReferenceOffer-it

regulatestheunbundlingofthelocalloop.Thisofferenablesalternativeoperatorstoprovidedirectaccessoffers(voice,Internetbroadbandandvideoservices)totheircustomersbasedontheincumbent’scopperaccessnetwork.

UMTS UniversalMobileTelecommunicationsSystem–oneofthe3rdgenerationmobilecommunicationsystemsused,namelyinEurope,integratingalargerfamily(IMT-2000).

WholesaleLineRentalReferenceOffer Regulatesthewholesaleofferinconnectionwith

thecreationofasinglebilltoindirectaccesscustomers.Itenablesanyproviderofpre-selectionservicesand/orADSLservicestobillandcollecttheincumbent’smonthlyfeedirectlyfromtheircustomers.

81

SONAECOMSUSTAINABILITYREPORT2006|glossary

SONAECOM, SGPS, S.A.

Sede: Lugar do Espido, Via Norte, MaiaPessoa Colectiva: 502 028 351Capital Social. € 366,246,868Matrícula na CRC Maia n.º 502 028 351E-mail: [email protected]

Publishing Project & CoordinationSonaecom Sustainable Development Group

Methodological SupportArthur D. LittleSustainability & Risk Practice

June, 2007

sonaecom shaping our future sustainability report...

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