Italtel (since 1981; formerly known by other names) is an Italian multinational ICT company founded in 1921, originally as a branch of Siemens AG. As of 2024, Italtel's shareholders are Nextalia SGR (54%), Clessidra Capital Credit Fund (28%) and TIM (18%). The technological areas that Italtel addresses are the evolution of networks and 5G, hybrid cloud, cyber security, tools for agile working, Analytics and Automation applied to networks and services, the Internet of Things in areas such as digital health, manufacturing, smart cities. Target markets are: Telco & Media, Industry & Manufacturing, Energy & Transport, Banking & Insurance, Healthcare and Public Administration. Italtel played a major role in the development of telecommunication systems in Italy, most notably as one of the main equipment providers for the Italian state monopoly telephone operator SIP (later Telecom Italia) and as the leading actor in the evolution of the Italian PSTN from analog to digital switching (enabled by Italtel's CT, TN, and UT systems in the 1980s). At its maximum prosperity, the company grew to over 30.000 employees. In the 1980s–1990s, Italtel experienced a period of crisis and downsizing due to major changes in its reference market (including the abolishment of the state monopoly and the privatization of SIP/Telecom), a situation that was further exacerbated by an unsuccessful merger leveraged buyout at the beginning of the 2000s. The company then gradually repositioned itself as a player in the international ICT market, focusing on technologies such as IP networks, Next-generation networks, and VoIP, and expanding its customer base to other telecommunication service providers (both national and abroad), public administration, and non-telco companies. In this process, Italtel established a partnership with Cisco Systems (becoming a Cisco Gold Certified Partner) and opened offices in 25 countries worldwide, mostly in Europe and South America. In the early 2000s, Italtel and Cisco played a leading role in another major evolution of the Italian telephone network, namely the creation of a national structure that allowed for most long-range telephone traffic to be transferred from the PSTN to an IP network (implemented by Italtel softswitches and Cisco media gateways).
History
1921–1940s: Company beginnings The origins of Italtel trace back to the Società Italiana Siemens per Impianti Elettrici ("Siemens Italian Company for Electrical Plants"), the Italian branch of German Siemens AG, founded in Milan on 5 December 1898. After World War I, on 21 July 1921, the company name changed to Siemens Società Anonima (Siemens S.A., "Siemens Anonymous Society"), with Giovanni Giamminola as the first CEO. Siemens S.A. is usually considered the first incarnation of Italtel. By this time, the company was mainly operating as a commercial representative of Siemens in Italy. This gradually changed in the late 1920s, when Siemens began to expand its manufacturing presence in Lombardy and Italy through the acquisition of small manufacturers (most notably Officine Isaria Contatori Elettrici, an electricity meter producer) as well as the establishment of new ones, such as OLAP (Officine Lombarde Apparecchi di Precisione) which produced telephones, pneumatic tubes, radio receivers, and other electrical appliances. In 1942, Isaria, OLAP and other small companies were merged with Siemens S.A. into Siemens Società per Azioni (Siemens S.p.A., "Siemens joint-stock company"), with over 3000 employees.
1948–1970s: Expansion during the economic boom
At the end of World War II, the German-owned Siemens S.p.A. was impounded to the Ministero del Tesoro (Department of the Treasury). Engineer Aganippo Brocchi, who was put in charge of the company in 1948, and managed to bring it back to its pre-war prosperity. In 1950, the company was jointly acquired by SIP and STET, the financial services arm of the IRI (Istituto per la Ricostruzione Industriale, "Institute for Industrial Reconstruction") a public holding company established to support the survival and development of industrial assets in Italy. During the "Italian economic miracle" (1950s-1960s) the leadership of Siemens S.p.A. chose to focus on the booming telecommunications market, and the company changed name to Società Italiana Telecomunicazioni Siemens (SIT-Siemens), with non-telco activities being transferred to the newly established Siemens Elettra. In the same period, new production facilities were established throughout Italy, including Santa Maria Capua Vetere in Campania (for the production of telephone devices), Settimo Milanese (near Milan), L'Aquila, Catania, and Carini (Palermo), and the company grew to about 30.000 employees. In the 1970s, during the so-called Years of Lead (an era of socio-political turmoil in Italy), Sit-Siemens was involved in several terrorist acts performed by the Red Brigades, including their first kidnapping.
1980s: Leadership of Marisa Bellisario In the early 1980s, SIT-Siemens was the largest telco manufacturing company in Italy, but was also experiencing financial difficulties. In 1981, Marisa Bellisario, formerly head of Olivetti Corporation of America, was chosen as the new CEO. Bellisario was an appreciated, self-made entrepreneur who also had strategic connections to the government (most notably Bettino Craxi, leader of the Italian Socialist Party and Italian Prime Minister in 1983–1987). She changed the name of the company to "Italtel" and actuated a thorough renovation process, which included replacing 70% of the management, costs reduction, and downsizing, and the establishment of several partnerships with other companies, including CIT-Alcatel, Siemens and Apple. Under the leadership of Bellisario, Italtel produced the CT, TN, and UT digital telephone exchanges, which replaced analog with TDM digital switching, allowing for a radical evolution of the Italian PSTN. Italtel exchanges were installed all over Italy. In the same years, Italtel changed from a single company to a corporate group, with Italtel S.p.A. as the leader of the group. Bellisario and Craxi also envisioned merging Italtel with Telettra, another major Italian telco manufacturing company, to form "Telit", a corporation that would supposedly have the potential to face up with the largest telco companies worldwide, however Bellissario died in 1988 and the plan was never implemented.
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