Cellnex’s commitment is based on the company’s industrial vision and its core values of Quality, Environment, Occupational Risk Prevention, R&D+i activities and Information Security. On the basis of this vision, Cellnex seeks to achieve excellence in these areas and to meet the expectations of its stakeholders to ensure their satisfaction and sustainability in the relationship.

Cellnex works along with its customers, suppliers and knowledge generators

The company works permanently in the European organisations of which it is a member on the drafting of standards and the implementation of advanced technological solutions in the various markets in which it operates: broadcasting, Smart Cities, IoT, etc. Cellnex also works along with its customers, suppliers and knowledge generators (universities, technology centres) to support applied innovation and outreach initiatives and dissemination of new developments.

Customers

13 complaints were received and resolved in 2016, of which 6 pertained to Spain and 7 to Italy.

Cellnex maintains stable relationships with its customers based on proximity, transparency and the search for constant improvement. Given the type of services it provides, Cellnex’s customer base is characterised by a small number of large customers, to which it provides high added value services.

To ensure quality of service, one of the key factors for Cellnex, and one that defines its relationship with customers, is effective management of significant events and incidents as well as complaint management, enquiries and suggestions, which may affect the operation of the service received by the customer. 13 complaints were received and resolved in 2016, of which 6 pertained to Spain and 7 to Italy.

As part of the effective management of significant events and incidents, there are various business continuity guidelines and plans designed to ensure that critical services can continue to be provided in the event of failure in any system, either by protecting these or by redundancy.

In Spain, switching is performed automatically in the event of a failure in redundant systems. The Control centres from which the network is operated and monitored are available 24/7. The equipment supporting the delivery of core services is controlled remotely from the control centres and, if necessary, can force the manoeuvres necessary for the proper provision of the service. Operational units are also available in all provinces of Spain so that a qualified technician can be sent to the site of the fault, when necessary, to provide a solution within the time stated in our service level agreements. Since the company provides its services and operates its network 24/7 in all locations, there is no downtime on any sites.

As regards information security and protection of customer data, there were no leaks, theft or loss of information either in Spain or in Italy, therefore no claims were received in this connection. For Cellnex Italy, as an improvement in this field of activity, legal clauses on privacy and data protection were added in each contract.

To ensure a personal and stable relationship, we have defined the figure of account manager, represented by a person from the company who looks after the relationship with the external customer and aims to provide personalised service in real time, improving customer satisfaction across the board.

With the provision of new network services such as Smart Cities and IoT services, Cellnex is beginning to experience a change in the type of its customers. Specifically, the new services entail managing a greater number of customers and players from different sectors that are also geographically disparate. This new scenario involves a change in the customer management model, which requires the implementation of new communication channels in addition to the account manager, web or email. In this new scenario it is particularly important for Cellnex to be present in forums, conferences and events in which Cellnex plays an active role.

Likewise, Cellnex has established a number of communication channels with customers, such as those contained in the service-level agreement (SLA) reports, or the biennial studies of perceived customer satisfaction, the outcome of which feeds into action and improvement plans.

These studies were established with the following specific objectives:

• To have a complete picture of customers’ overall perception of the company.
• To learn about the level of customer satisfaction, breaking down and parametrising overall levels of satisfaction into the various values and attributes in the study.
• To produce a map of customer indicators with the services provided by the company for each activity and segmented by business area and type of customer.
• To determine company recommendation and loyalty rates relating to each service, activity, business area and customer type.
• To determine the critical points and strengths and establish an action plan based on the external customer satisfaction study.

Working and management procedures with Cellnex customers are defined through values of responsibility and commitment.

Satisfaction study 2016

In 2016 Cellnex Italy performed its biennial satisfaction customer survey, producing very positive results and reaching overall satisfaction levels of 85%.

For Cellnex Spain, the biennial study was conducted in 2015 with results of 86.8% of satisfied and very satisfied customers.

Commitment to customers

Working and management procedures with Cellnex customers are defined through values of responsibility and commitment and are reflected in price setting and information, with a constant focus on communication and proximity across the board.

Regarding the television signal broadcast carrier service, Cellnex Spain has to provide its nationwide network access services to third-party operators, as stated in the Resolution of 30 April 2013 of the National Commission for Markets and Competition (CNMC). The obligations laid down in the Resolution include publishing a reference offer for the provision of wholesale access service that is sufficiently disaggregated to ensure that they do not have to pay for resources that are not needed for the regulated service. In order to fulfil this obligation, Cellnex Spain developed the reference offer for access to Cellnex, S.A’s transmission centres (ORAC) for the first time in October 2009. The ORAC describes the centres and services, procedures for providing them, technical conditions and prices for providing the wholesale access service that will give authorised operators access to the broadcasting centres in the Cellnex national network on transparent, objective, non-discriminatory and cost-oriented terms. This information is updated regularly.

Likewise, Cellnex has Business Coordination Activities agreements with its customers through which the company defines the audit processes to be made on its customers. These audit processes seek to comply with current regulations concerning occupational hazards.

RD171/2004 (the Royal Decree implementing Article 24 of Law 31/1995 of 8 November 1995 on Occupational Risk Prevention, on coordination of business activities) and LPRL 31/1955 (Law on Occupational Risk Prevention).

The company has a proprietary OSS under which it performs a thorough control of access to its centres, thus ensuring strict compliance with the ORP policy and the access procedures by customers and contractors.

In addition to the documentary audit on ORP, and in order to emphasise compliance with access procedures, this part of the agreements on coordination of the business activities Cellnex has signed with its customers was audited during 2016.

Providers

Cellnex has a supplier management model based on cooperation and joint improvement. This model aims to implement more efficient procurement procedures and find technological solutions to bring about improvements, both in internal management and in providing services to customers. It should be underlined that the model is governed by the use of best practices in procurement processes undertaken.

Cellnex’s providers and suppliers have to know the corporate policies and ensure that they comply with each of them. Cellnex publishes a series of policies on its corporate website for suppliers, concerning quality, environment, occupational risk prevention, information security, corporate responsibility and R&D+i as well as the code of ethics. Suppliers must comply with these requirements in the course of their work, and must also make available these rules and requirements to all contracted and subcontracted personnel.

Cellnex is committed to local value generation by using 100% local suppliers in Italy, and 93% in Spain. Wherever possible, priority is given to purchasing goods and services from local suppliers, meaning from within the same country.

Evaluation, selection and monitoring of suppliers

Cellnex’s companies apply a procedure for evaluating and selecting suppliers in order to ensure that suppliers are aligned and comply with corporate policies and values.

They have systems for the evaluation, selection and monitoring of suppliers for Cellnex Spain. On the one hand, the company has an internal procedure listing the criteria and steps to follow to become a Cellnex provider.

At a later stage, suppliers’ performance is evaluated using quality and time criteria to obtain a classification by levels based on the result. For suppliers with unsatisfactory results, while there is a desire to continue the business relationship, an action plan is established to correct and adjust their service level to that required by Cellnex. If a supplier does not improve its results and is unable to make the appropriate improvements, commercial relations may be terminated.

Cellnex Spain updated and refined its evaluation systems in 2016 using supplier evaluation in three basic areas of sustainability: ethics, respect for the environment and labour relations. This evaluation sets out to have a clearer picture, from the point of view of sustainability, of the providers from which the company purchases most. A total of 357 suppliers was consulted in Spain, with 7 incidences related to labour practices detected.

The new evaluation model was implemented in Spain during 2016 and work is ongoing to set these up in other countries over the coming years.

As regards providers accessing the company facilities, Cellnex establishes requirements for coordinating occupational and environmental risk prevention. These make it possible to fulfil the obligations under the Law on Occupational Risk Prevention and other complementary legislation to avoid generating negative environmental impacts during the course of their work. If these do occur, the necessary corrective measures must be implemented to address them.

Cellnex’s level of internationalisation and the sector’s significant level of globalisation means that the European level of administration and regulation is even more relevant.

Public administration and regulatory bodies

Cellnex has a close relationship with the various public administrations in Spain and in Europe.

As an operator with significant market power (SMP) for the broadcast carrier service of the television signal in Spain, Cellnex is regulated by the National Commission for Markets and Competition (CNMC) in nationwide network access services.

Moreover, responsibility for security, the environment and construction is shared between the Autonomous Community and local administrations.

Finally, Cellnex’s level of internationalisation and the sector’s significant level of globalisation means that the European level of administration and regulation is even more relevant. The European Commission and European Parliament, along with the key players in the telecommunications sector, are involved in defining the regulatory framework and creating policies at European level. In this area, Cellnex plays an active role in defending the industry’s positions, especially with regard to the allocation of radio spectrum to audiovisual broadcasting services.

Cellnex action and participation in relevant industry associations

In 2016, Cellnex continued to participate in sectorial forums and associations. Here are some of the most significant participations during the year:

• Broadcast:
  • Cellnex is a member of “Hybrid Broadcast Broadband TV Association” (HbbTV). This is a global initiative for combining broadcast and broadband services through connected TVs, set-top boxes and multi-screen devices. The association is made up of industry players seeking to improve the consumer experience with innovative and interactive solutions. Possible applications of this solution are interactive advertising, voting, games, video on demand (VoD), among others.
  • Participation in ETSI, the European Telecommunications Standards Institute.
  • Cellnex is a member of the Steering Board of Digital Video Broadcasting (DVB) and of the technical and commercial working groups.
• Smart City & IoT:
  • Cellnex takes part in working group CTN 178 of the Spanish Association for Standardisation and Certification (AENOR) for the standardisation of Smart Cities. The company is helping to build a virtual interoperability laboratory.
  • Cellnex is part of the European Innovation Partnership on Smart Cities and Communities (EIP-SCC). This Association brings together various players such as cities, industry and citizens to improve urban life through more sustainable integrated solutions.
  • Cellnex participates in the AIOTI Alliance, comprising members of the Internet of Things industry, research centres, universities, associations and public administrations. The aim is to monitor technology to achieve the desired market positioning. The various players are organised into working groups, and Cellnex is present in the following:
• WG 1: IoT European research cluster
• WG 2: Innovation Ecosystems
• WG 8: Smart cities
• WG 9: Smart mobility
• WG 10: Smart environment (smart water management)
• WG 11: Smart manufacturing
  • Cellnex participates in the Internet of Things Catalan Alliance, promoted by the Catalan Regional Government (Generalitat de Catalunya), in the framework of the smartCAT strategy. The Alliance seeks to identify the players in IoT, drawing on their knowledge, promoting the exchange of information and generating synergies between them.
• The company has provided a success story in the shape of a monitoring solution for electric car batteries.
• Cellnex was on the jury in the final round to choose the best innovation award.
• Towering:
• Cellnex takes part in the DAS&Small Cell Congress, where more than 600 attendees gather to explore the progress and opportunities available in the sector.
• Spectrum:
  • Cellnex follows the World Radiocommunication Conferences (WRC). These conferences are held every three to four years and essentially set out to revise the Radio Regulations, the international treaty governing the use of the radio-frequency spectrum and the geostationary-satellite and non-geostationary-satellite orbits.
  • Cellnex monitors working group EBU-SM (European Broadcasting Union - Spectrum Management).

On the European level

Cellnex is a founding partner and active member of:

• Broadcast Networks Europe (BNE). A Europe-wide association of broadcasters and operators, with the objective of developing the broadcasting technology ecosystem;
• European Wireless Infrastructure Association (EWIA). This Association aims to support its members in the development and emergence in Europe of independent telecommunications infrastructure operators and represent the industry’s interests in matters of public policy within the European Union.

International level

Cellnex participates actively in sectoral working groups such as Digital Video Broadcasting (DVB) for the definition of new technological standards.

• International Telecommunication Union (ITU), the United Nations telecommunications agency, for defending its position on major regulatory issues, such as the World Radiocommunication Conference WRC-15.

Year after year, Cellnex shows its commitment to society by adhering to and organising numerous initiatives on Corporate Social Responsibility.

Responsible and committed business management

Adherance to CR initiatives

Year after year, Cellnex shows its commitment to society by adhering to and organising numerous initiatives on Corporate Social Responsibility. Below are the most important initiatives of 2016.

The company worked together with the Seres Foundation, whose aim is to “Build a healthier, stronger society with competitive businesses that can stand the test of time”. The foundation aims to encourage and promote strategic business actions that contribute to an overall improvement of social reality. Cellnex has signed an agreement with the foundation through which it undertakes to:

• Work together with Seres Foundation to help it consolidate as an innovative benchmark entity.
• Disclose the collaboration between both entities in all possible communication initiatives.
• Share its knowledge in social best practices matters to make them available to society as a whole to enable Seres Foundation to become a platform for spreading and exchanging the social actions of companies.
• Participate in meetings between partners and other entities for social purposes.

In 2016 Cellnex collaborated with Fair Logistics Foundation, an organisation that works towards equal opportunities for groups at risk of exclusion from society and the labour market. Through this collaboration, Cellnex takes on the foundation’s commitment to responsible consumption and the development of social logistics by importing fair trade and social economy products.

In 2016, Cellnex participated as a partner in the first “Serious Games for Health” training programme of the IT division of the department of medicine at the “Harvard Medical Faculty Physicians” which took place in Barcelona last April.

The training programme represented the first course on “Mobile Health” held in Barcelona. In this regard, the Harvard Medical Faculty Physicians, in conjunction with the Beth Israel Deaconess Medical Centre, formed the Foundation of the same name which aims to research into mobile applications for health.

Cellnex was actively involved in the event for promoting sustainable development organised by the International Academy for Social Economic Development (AISES) held in 2016 through the participation of the CEO of GALATA, SpA. This year’s event was organised to discuss the commitment to sustainable growth through the “Sharing Economy, Smart Technologies and Social Innovation”.

The Open Television group was presented before the Industry Committee of the Spanish parliament on 21 November 2016. The Group, comprising various organisations including Cellnex, aims to provide a differential perspective to the process of the Second Digital Dividend and ensure that the new reallocation is performed with respect for the general interest while providing guarantees for the citizens and parties affected.

Cellnex has implemented a management system to support its organisational model.

The event ended with the signing of the Commitment to the Future of Open Television by UTECA, Cellnex, Fenitel, Televés, FAPAE, the CCOO and Sindicato de Periodistas trade unions, Unired, Academia de la Televisión, PATE, Asociación de Usuarios de la Comunicación, ICMedia and Tryo Comunicaciones.

In 2016 Cellnex took part in the Carbon Disclosure Project (CDP), one of the most highly recognised organisations for its work on climate change, which seeks to assess the quality of – and systems for reporting – the information provided by private companies or by the public sector in the sustainability and environment area. In this regard Cellnex received the award for best Spanish newcomer 2016 in the Climate Leadership Awards organised by the CDP.

In November 2015 Cellnex joined the United Nations Global Compact as an expression of its commitment to including the corporate social responsibility concept into its operational strategy and organisational culture. The United Nations Global Compact is an international voluntary initiative that includes more than 8,000 companies and institutions across 135 countries.

Under this agreement, Cellnex Telecom undertakes to promote and spread corporate sustainability policies and practices based on the 10 key principles promoted by the United Nations, focusing on the areas of human rights, labour standards, environment and combating corruption in business activities.

Cellnex’s commitment to the United Nations Global Compact is part of its programme of Corporate Responsibility (CR) and materialised in November 2016 with the delivery of the first Communication of Progress (COP) by Cellnex.

Management Systems

Cellnex has implemented a management system to support its organisational model. The management system provides a framework for adopting a systematic approach in performing processes, thereby ensuring that they are effective. It also allows a procedure to be established to guarantee the quality of the services provided and to ensure that the activity is carried out in compliance with current legislation.

As a demonstration of its commitment to quality and excellence, Cellnex has renewed its certifications on quality management, environmental management, occupational health and safety, management of research, technological development and innovation (R&D+i) and information security management.

The certifications renewed were ISO 9001 on quality, ISO 14001 on the environment; OSHAS 18001 on prevention of occupational hazards; UNE 166002 on research, development and innovation; ISO 17025 on tests, measurements and calibration of equipment; and ISO 27001 on Information security.

Information security management

Cellnex worked on the following projects on security in 2016:

• Awareness-raising and education campaigns on information security through internal communication channels.
• Data loss prevention plan
  • Data review and classification phase based on confidentiality, data integrity, etc. As a result of this we have drawn up the Data map.
  • Analysis of the data following classification.
  • Next steps: Implementing security measures derived from the data map
• 24/7 monitoring of security events and incidents. Cellnex regularly monitors the company’s communication networks through an OSC (Operational Security Centre) comprising its own BIA (Business Impact Analysis) personnel: Analysis and treatment of the risks to which Cellnex is exposed, both in terms of operations and processes, particularly as regards critical business processes. The target for 2017 is to roll out measures to minimise such risks.

Social contribution

COLLABORATION with the Spanish and Italian Red Cross organisations

In 2016 Cellnex continued to implement a collaborative programme with the Spanish NGO Cruz Roja for the fourth consecutive year and with its Italian counterpart the Croce Rossa , for the second year running. The agreement with Cruz Roja focuses on programmes to help refugees in Europe and those affected by earthquakes in Italy

In Spain, Cruz Roja is actively helping European refugees, and Cellnex’s efforts will support actions aimed at integration and attention to basic needs as well as training activities. Regarding Italy, where Cellnex has a significant presence, the Croce Rossa organisation has provided assistance to people affected by the earthquakes in central Italy. In this regard, Cellnex 2016 extended its collaboration to programmes implemented by Croce Rossa.

COLLABORATION with TV3 Telethon

Cellnex has been taking part in the TV3 Telethon for more than 10 years. Its participation involved providing the connection free of charge between the various call reception centres and TV3’s production centre up until 2015, when it began to contribute financially. Since 2015 Cellnex has been contributing € 9,000 to the Telethon held each year.

GRI: G4-DMA, G4-26, G4-27, G4-PR5, PA.11, GRI: G4-DMA, G4-26, G4-27, G4-EC9, G4-EN32, G4-EN33, G4-LA14, G4-LA15, G4-SO9, G4-SO10, PR8, PA6, PR8, PA6, G4-15, G4-16, G4-26, G4-27, G4-EC7, G4-EC8, PA11