Tiscali 2009 Annual Report Download - page 30

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I) reposition Tiscali as an innovative brand, reinforcing the original mission of “first mover” in the Italian
telecommunications market, also through brand and product advertising campaigns, both via traditional
media and via the internet. The launch of the convergent “Tiscali Unica” offer in September 2009, with
innovative wiPhone service should be pointed out;
II) increase the consumer ARPU through the diffusion of fixed-mobile convergent offers which bring together
all the potential offered by the IP protocol in order to provide both mobile access internet services and low
cost voice services over IP protocol, with the effect of containing the natural rate of attrition of the user base
in favour of the competition (also known as the churn rate) and cut costs considerably for the user;
III) enhance sales channel performance, through improving registration processes and targeted product
advertising campaigns. In order to increase customer penetration in direct areas of business, Tiscali avails
itself of targeted telemarketing campaigns to optimise penetration in given geographical areas of special
interest, and to increase the rate of employment in its sites. The commercial agreements reached in October
2009 with CHL and Buffetti for the distribution of Tiscali products in their network of stores in Italy should
be pointed out.
IV) strengthen the brand awareness of Tiscali in the business market, focusing in particular on the Soho,
Small Business and Medium Business segments. Tiscali offers this target customer integrated voice and
internet access solutions at competitive prices, making use of the same technological infrastructure used
for consumers. The full integration of mobile voice solutions, to be carried out through network integration,
aims to increase the market share in the business segment. In support of the activities detailed above,
Tiscali intends to reinforce its presence in the area through a targeted increase in the direct and indirect
sales force;
V) continue with the rationalisation and monitoring of operating costs, aiming to improve provisioning,
invoicing and credit recovery processes;
VI) continue with the development of the network also through network sharing agreements with other
alternative operators and complete the integration of the network and information systems in order to
support fixed-mobile convergence programmes.
11) On 30 October, shareholder Renato Soru Tiscali S.p.A., also in fulfilment of his subscription commitment
as part of the share capital increase in progress, exercised directly and indirectly via subsidiaries
Cuccureddus S.r.l. and Monteverdi S.r.l., option rights deriving from the associated equity investments
in Tiscali S.p.A. for a total of roughly EUR 31.39 million (corresponding to 313,977,543 new shares with
the same number of warrants). The subscription price will be paid through the mechanism of off-setting
of receivables due – following the sale of the receivable originally involving Andalas Ltd – to Mr. Soru and
each of the aforementioned companies controlled by the latter from Tiscali S.p.A with the completion of the
assumption of the corresponding debt of Tiscali Finance SA (including interest accrued as at the exercise
date), assumed by Tiscali S.p.A. on 2 July 2009;
12) On 16 November 2009, Tiscali communicated that, as part of the offer of un-opted rights on the
Stock Market, pursuant to article 2441, paragraph 3 of the Italian Civil Code, launched on 5 November
2009 and concluded on 11 November 2009, 4,353,756 option rights were purchased meaning, therefore,
127,248,414 newly issued Tiscali ordinary shares were subscribed – equal to roughly 99.99% of all shares
offered as part of the Offer on the Stock Market – for total value of EUR 12,724,841.4. The 127,248,414
Tiscali ordinary shares subscribed as part of the Offer on the Stock Market were combined with 127,248,414
free “Tiscali S.p.A. 2009 – 2014 Warrants”; as a result of the above subscriptions, Tiscali’s new share capital
Report on operations