Public-private partnerships for social protection

IÑAKI URDANGARINChairman, Telefonica International USA New York, 22nd of September,

2009New York, 22nd of September,

2009

Around

71,000 professionals

Around

257,000 professionals

PersonnelPersonnel

ServicesServices

FinanceFinanceRevenue: 4,273 M€

EPS(1): 0.45 €

Integrated ICT solutions for all types of clients

ClientsClients Around 12 million clients

Around 260 millionclients

Basic telephone and data services

1989

Operating in Spain

Operating in

25 countries

CountriesCountries

Revenue: 57,946 M€

EPS: 1.63 €

Telefonica has had alliances in 4 continents for many years

2000 2008

Around149,000 professionals

Around 68 million clients

Fixed and mobile telephone services, data and Internet

(1) EPS: Earnings per share

Revenue : 28,485 M€

EPS(1): 0.67 €

Operating in

16 countries

Alliances that contribute to the achievement of the millenium development gooals

“ In collaboration with the private sector, ensure that the benefits of latest technology, in particular, those from information and communications technology, CIT are taken advantage of”

SOCIAL DIVIDE

DIGITALDIVIDE

Revenue

Development

Literacy

Result

2 Geographic Economic Education Health / Disability E-Government Productivity

“The Digital Divide is the difference between people who use ICT as part of their daily life and those who don´t have access to them and even if they do they don´t know how to use them”

Telecommunications is a tool to close social gaps

In Latin America, these alliances have been successful, not only in terms of fixed telephone services…

Fixed telephone services from Telefónica in AR,CHILE, PE and Brazil (Sao Paulo)

Social-economic Level

Penetration when Telefónica startedPenetration in 2005

A

B-C

D-E45%

2%

90%

20%

107%

90%

Installation Costs, in Sao Paulo, dropped from US$ 1,200 in 1997 to US$ ~38 in 2006Installation time went from a few years to just a few days

Adoption of Fixed Telephone services in Latin America

Sources: ITU; Regulators

Tele

phones

per

10

0

inhabit

ants

0

3

6

9

12

15

18

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

… but also in mobile telephone and broad band services…

Mobile PenetrationAccesses / Population

LatamAverage

BB PenetrationAccesses / Home

100%

LatamAverage

25%

Impotant investments have been needed to launch these services. Telefonica has invested nearly 90 Billion Euros in 14 countries…

June 2009

25.4 M fixes lines

126.0 M mobile

7.7 M Internet

1.7 M TV

12

21

2

2

2

2

11

1

1

21

1

Fixed competitive position

Mobile competitive position

160,4 million

de accesses

Top investor in Latam

Quality programe in primary and secondary education by using CIT

Quality programe in primary and secondary education by using CIT

Programme to eradicate child labor in Latin America

Programme to eradicate child labor in Latin America

R+D centre, debates, increasing knowledge and advanced ICT training

R+D centre, debates, increasing knowledge and advanced ICT training

Programme to promote solidarity among workers

Programme to promote solidarity among workers

QUALITY IN EDUCATION

QUALITY IN EDUCATION

SOCIAL WORK IN EDUCATION

SOCIAL WORK IN EDUCATION

DEBATE and KNOWLEDGE

DEBATE and KNOWLEDGE VOLUNTEERSVOLUNTEERS

Telefónica group's experience in setting up and developing alliances has been used in our social activities

Telefónica´s total investment in Social Action(Miles

€)

(1) En 2007, la metodología LBG no permite contabilizar la contribución de 60.000 empleados de Telefónica a ATAM (que beneficia a personas con discapacidad).

69.20551.054

9.069

9.17428.988

32.4224.228

3.898

2007 2008Fundación Telefónica ATAM Patrocinios Sociales O2

114,700

93,339 23%

8

Since 2005 we have increased our coverage

by 1000% …

240

2,839

11,540

117,122X10.1

X11.8

Beneficiary children

Schools

The best example is Proniño: results from responsible and sustainable social actions

Colombia 12.053

Mexico 14.614

Guatemala 7.800

El Salvador 4.471

Panama 2.285

Ecuador 13.307

Peru 17.345

Chile 5.029Uruguay 5.220

Argentina 9.020

Venezuela 11.787

Nicaragua 4.500

.

Brazil 9.691

• 61,858 “no-Proniño” children have also benefitted

• 4,020 teachers receiving training

Dec 2005 Jul 2009

9

Source: OIT; Unicef, National sources

Although there are differences between the countries, child labor is still a generalized problem throughout Latin America

Seriousness of child labour in the country (%)

27

23

13

9

17

6

6

11

17

5

…but also fundamental conditions for

socially sustainable economic

development

…but also fundamental conditions for

socially sustainable economic

development

~ 5-17 million

children working

~ 5-17 million

children working

It boils down to basic human

rights…

It boils down to basic human

rights…

Peru

Colombia

Guatemala

Ecuador

Nicaragua

El Salvador

Argentina

Venezuela

Panama

Chile

Uruguay

Brazil

Mexico

6

17

17

Morally and ethically

unacceptable …

11

22

33

12

The key to changing “removal” to “eradication” is the programme's SUSTAINABILITY and the resulting changes

CONDITIONS FOR SOCIAL SUSTAINABILITY:

•Internal :strategic vision and Telefónica´s long term commitment

•External: Drop implanted “capacities” through:

•IN SOCIETY: Institutional strengthening and socio-community development

•In the CHILD/FAMILY: Education and changes family values

1

2

3

16

Example of the action Cooperation networks: Chile

CODENICODENIConsejo de Defensa del Niño

DACOM

Vicaría de las Pastoral Social

y de los Trabajadores

20

Proniño is a concrete experience that develops the Public-Private-Partnerships concept for development1. The collaborative social action networks

The nature of the action means that we have to work with the Public sector and the 3rd sector.

We have also signed 200 other agreements apart from those with the NGO´s

Our “social action network” is a network that joins everything together , regional, national and local.

2. The Public-private alliances provide an important multiplying factor (Eg. Colombia, Ecuador,…)

3. Promoting ethical pacts in the private sector against child labour

Guarantee free value chains against child labour

4. Communication and awareness action Campaigns from twelfth of June International Proniño meetings Specific Publicity Campaigns

5. Work to continue training and good working conditions to Proniño graduates (being studied)

Occupational training Work opportunities in Telefónica´s value

chain

21