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CEO Message
One year ago, I accepted the challenge to lead the Portugal Telecom Group. This decision was taken with the utmost feeling of responsibility taking into consideration the historical value of the Group and what it represents for the Portuguese society in economic, social and environmental terms.

Proud of our past, we are today a company that looks towards the future with the necessary determination, optimism and perseverance for the positive evolution of its businesses and the relationship with the market and the society in general.

The Portugal Telecom Group exists to deliver each time more sophisticated and complex telecommunications services from the technological point of view, yet simpler and accessible to all the consumers. The convergence of the services between voice, data, images and of the networks between fixed and mobile are the current reality, to which PT is totally committed.

PT’s framework at the European level and its increasing participation in companies of the sector at the international level has led us to take into consideration the questions that have worried the worldwide community most relatively to the sustainability of the future – human rights, ethics in the businesses, climate changes, respect for the community –, and to be an active party in the construction of change in order to guarantee a balanced society to the coming generations.

The response that we have tried to give to these questions is intrinsic and transversal to the strategy of the Group is based on the successive approach to the best worldwide practices, and is mirrored in this report that we publish for the third consecutive year, in an attitude of transparency and sharing to the stakeholders and society in general.

In 2006, the sustainability of PT Group at the economic, environmental and social level, constituted one of the new management’s priorities.

Having lived throughout the year a context of takeover bid – that was rejected – PT adapted its Governance Model to the expectations revealed by the shareholders, reorganized the Sustainability Committee, perfected the Group’s Code of Ethics and the respective control mechanisms, and perfected its Model of Management of Risks and Opportunities, capable of having an impact on the activity of the company.

The climate changes and the consequent concern in respecting the environment were also part of our agenda of intervention that, besides the continuous management of consumptions, emissions and impacts, decided to create a Sustainable Model of Supplier Selection and Contracting, and to nominate a Task Force for the elaboration of the mid and long term energy strategy of the Group.

At social level, we were motivated by issues that relate to the digital inclusion, the promotion of knowledge, the occupational health, hygiene and safety, the widening of the commercial offer to the population of lesser income and the support to the society in general. In this context, we should point out the partnership with the Carnegie – Mellon University (U.S.A.) in favour of the promotion of knowledge, project PT Schools taking place all over the country and whose contours have contributed strongly to the digital inclusion of the population, the Portugal Telecom Foundation in the support granted to the culture, the information society and the development and integration of the people with special needs, and the perfectioning of the customer relationship management model that aimed at approaching and making more efficient the relation between these and each business unit of PT Group.

The capacity to innovate and to become the most efficient company in technological, environmental, commercial, social and economic terms is an issue that will continue to mark the daily behaviour of the Group in a continuous process of learning and of strengthening of the relations that it establishes with the publics that constitute interested parties.

Conscious that the sustainability of society is a responsibility of all, in 2006, PT materialized the commitments assumed with all the stakeholders and the society and shared them by publishing this report – elaborated in accordance with the most recent directives of the Global Reporting Initiative – G3 – and which presents a balanced profile of the economic, environmental and social performance of our organization.

To all those that have contributed to the construction of PT’s enterprise sustainability, through their daily intervention, suggestions and opinions, I would like to express my recognition and gratefulness and to continue to count on your support to continue together on the path of a prosperous and balanced future.

Henrique Granadeiro
Chairman of the Board of Directors
and chief executive officer