Telefónica and Bankinter link for financial cloud platform
July 28, 2011
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Telefónica and Bankinter link for financial cloud platform
Telefónica Group signed a collaboration agreement with Gneis, the IT unit of Spanish bank Bankinter, to jointly develop and test a new cloud-based platform for financial institutions in Latin America.
The platform will enable Latin American financial institutions to offer customers mobile banking services, and act as the basis for the development of new products and specific functionalities. It is envisaged that the platform will create the potential for new commercial channels for banks, providing customers with “always open” access to their accounts.
Services will be offered to financial institutions under a pay-per-use model to minimise the need for banks to invest up front. The cloud-based nature of the offering means that banks will also be able to offer access to all their customers, regardless of their mobile service provider.
The two companies stressed that the agreement goes beyond technology, offering financial institutions in Latin America the chance to share experience and knowledge of deploying mobile financial services.
This solution will help financial institutions to grow their business with new products and to serve a larger number of customers via mobile channels. It is also expected to save costs with greater efficiency in distribution and operation, and to provide new security features for services.
The two companies will initially collaborate on small-scale customer trials of the platform, before a commercial launch across Telefónica’s entire Latin American footprint.
Continued momentum for mobile financial services in LatAm
The partnership with the Bankinter subsidiary in Latin America is another step towards Telefónica Latinoamérica building a business offering mobile financial services across the region. It is notable that the telco is working to deliver services that are not tied too closely to its own retail mobile network operations in the region — for example, the partnership with MasterCard on mobile payments and financial services is intended to be made available across operators and banking groups and not just Movistar (Telefonicawatch, #52) .
In Europe, mobile financial services models are currently struggling with territorial battles, with operators and banks apparently focusing more on their own retail markets rather than creating a wider ecosystem. While there are clear signs that players are moving on from this isolated approach, as evidenced by recent plans for collaboration on standards by UK operators including Telefónica UK (Telefónicawatch, #55), and wider work by the major European players in areas such as branding (see separate report), it would appear that Telefónica is taking a lead in the emerging Latin America market in creating an enabling business that is closer to a wholesale model.
[Further reference: Telefónica y Bankinter se unen para impulsar una plataforma en la 'nube' de servicios de movilidad para entidades financieras en América Latina.-- Bankinter, 27 June 2011.]
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Telefonicawatch Report #56 June-July 2011 Snapshot
July 28, 2011
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Table of Contents
1 Executive brief
4 Telefónica Group
4 Associates and investments
4 Telco writes down value of TI stake
5 Telefónica saddled with ongoing problems from inflated TI price
6 BlueVia
6 BlueVia used to bring apps to feature phones
6 BlueVia API openness shows signs of fulfilling goals
6 Community
6 Verdantix names Telefónica as energy‑efficiency “leader”
7 Devices
7 Device highlights
7 Financial reports
8 NFC
8 Operators to collaborate on new NFC logo
8 A symbol of the wider cooperation needed for NFC
8 Financial reports
9 Partners
9 Bouygues Telecom joins Telefónica Partners Program
9 Telefónica building on previous experience
9 An alternative to acquisitions in straitened circumstances
10 Etisalat signs Telefónica alliance, joins Partners Program
10 Telefónica ties with Microsoft for unified comms
10 Marketing
11 Companies active in building partnership in recent months
12 Regulation
12 New EC rules on roaming imminent, caps in place
12 New framework pushes rates down further, aims to open market
13 Final voice caps for 2014 also outlined
13 Telefónica questions need for caps
14 Strategy
14 Telefónica hosts “Corporate Mobility” day
14 Nokia and Microsoft give collaboration efforts an outing
16 Telefónica Multinational Solutions
16 Telefónica wins Daimler contract
16 Telefónica renews Grupo Antolin contract
17 Wayra
17 Wayra project gathers steam, in LatAm and Spain
17 Three pillars of programme discussed
18 Telefónica continues to seek start‑up flexibility to match telco strengths
19 Telefónica España
19 Digital services
19 Movistar launches Facebook customer support
19 Contracts
20 Networks
20 Second phase of Spanish spectrum auction begins
20 European ‘digital dividend’ auctions
20 Corporate social responsibility
21 Operations
21 Telefónica agrees job cuts, pay deal
21 Telefónica secures Spanish pay certainty
22 Products and services
22 Telefónica accepts VoIP on new mobile broadband tariffs
22 Rivals respond rapidly again
22 Community
23 Acceptance of VoIP the shape of things to come?
23 Regulatory
23 24‑hour portability coming to Spain
24 Research and development
24 Telefónica and Juniper improve network flexibility
25 Strategy
25 Telefónica praised in KAR report
25 Telecoms media still enamoured with incumbent
25 Internet and social‑networking opinions
26 Suppliers
26 Telefónica deploys F5 solutions
26 Telefónica partners Bradford Networks
26 Wireless networks
28 RFS claims success for Telefónica trials
28 Television services
28 Telefónica linked to Xbox for TV deal
28 Television services
29 Broadband TV trial underway
30 Telefónica Latinoamérica
30 Mobile commerce
30 Telefónica and Bankinter link for financial cloud platform
30 Regional
31 Continued momentum for mobile financial services in LatAm
31 Regional developments
31 Telefónica executives see healthy demand for VAS
31 Vivo sees innovation paying dividends
32 Applications drive data subscriptions
32 Movistar: operator portal experience key to VAS success
33 MNLA: satellite TV under pressure, b’band demand to rise
33 Satellite to become major broadband delivery platform
34 Argentina
34 Telefónica begins corporate service push
34 Brazil
34 Vivo builds market share, strength in data
35 Vivo extends push‑to‑talk services
36 Telefónica commits to national broadband scheme
36 New fixed‑line voice commitments made
36 Ericsson wins Telefónica managed services deal
37 Chile
37 Movistar signs MVNO deal with GTD/Telsur
37 Colombia
37 Telefónica sees little impact from labour action plan
37 Chile
37 Ecuador
38 Costa Rica
38 Telefónica cleared to enter Costa Rica
38 Peru
39 Mexico
39 Movistar launches ambitious new mobile internet plans
39 FTC indicates more regulation on Telmex
39 Venezuela
39 Signs blocks on repatriating Movistar funds are easing
39 Mexico
41 Telefónica Europe
41 Executives
41 Telefónica loses Innovation head
41 Czech Republic
42 Germany
42 Telefónica re‑launches Alice TV
42 Under‑developed market offers opportunities, but major rivals in the way
43 Telefónica sets up hosting unit
43 Element of strategy reversal in shift towards independence
44 Telefónica promotes smartphones
44 Telefónica highlights sustainability gains and benefits
44 Fonic launches JAJAH service?
44 Slovakia
45 United Kingdom
45 O2 launches Priority Moments
45 Slovakia
45 Ireland
46 A service for customers, or advertisers?
47 O2 Media highlights Fitness First campaign success
47 Fitness firm a mobile ad pioneer; service driving substantial spend
48 O2 claims significant interest in m‑commerce platform
48 Ad industry hopeful but wary of lack of competition
49 O2 UK to trial fibre services
49 Fujitsu project may offer long‑term option
50 Giffgaff head outlines business model
51 Forums already proving worth in larger players
51 O2 Health sees opportunity in NHS reforms
52 Shift of focus to consumers, but professionals still priority
52 La Senza adds fixed line to mobile contract
52 Giffgaff used to foil O2 rival ad claims
53 Telefónica signs contact centre contract with Datapoint
53 Scope for expansion of technology and geographic scope
55 O2 targets massive ad opt‑in spike
56 Associates and investments
56 China Unicom
56 Unicom falls behind China Telecom in 3G net adds
56 Unicom leading in 3G network infrastructure
56 2G customer base still growing; wireline declines
57 Low‑cost 3G handset launches
57 NSN wins Unicom network deal
57 Sina agrees VAS deal with Unicom
58 Telecom Italia
58 TIM acquires AES Atimus for EUR700m
59 TIM Brasil signs BRL 1bn vendor deals
59 Telecom Italia selects Incard MUSE platform
60 Telecom Italia partners SAP on cloud services
61 Index
Read more
Telefonicawatch Report #55 May-June 2011 Executive Brief
July 7, 2011
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- Telefónica announced, and subsequently cancelled, an initial public offering for its call centre business Atento. After lukewarm interest in the available 51% stake, prices were dropped, and efforts to bolster interest were redoubled with US investors, but the Group ultimately decided against progressing further with the sell-off. While the wider macro-economic conditions were blamed for the lack of interest, it was also noted that investors may have been wary of a business so dependent on Telefónica for revenue, and with limited geographic spread. The decision to pull the IPO was generally considered wise, but questions were asked as to why the telco had tried to conduct the sale in the first place. [pp.4-5.]
- In Spain, Movistar announced a new mobile tariff, offering calls at substantially lower rates with a reduced monthly spend requirement. • The move by the market leader sparked a rapid response from major rivals and the emerging MVNO market, and many reports of a price war in the Spanish market. The decision to aggressively drop prices by Movistar marks a u-turn on the operator’s earlier position — Telefónica leadership had previously maintained that price reductions from rivals were irrational and unsustainable. While being responsive to market conditions is commendable, the move may unnecessarily accelerate downward pressure on the division’s margins. • The broadband sector is also showing signs of falling prices, as competitors become more established. [pp.16-19.]
- O2 UK trumpeted a joint venture with local rivals Everything Everywhere and Vodafone UK to build an open platform for mobile commerce aimed at jump-starting the mobile payment sector in the country, and providing an opportunity for operators to keep up with the evolving mobile advertising sector. The O2 unit also announced the partners for its upcoming refresh of O2 Money mobile wallet, with Visa named as a network provider, and FIS, Intelligent Environments, and Wavecrest also participating. [pp.45-48.]
- Telefónica Group acquired Acens Technologies, a Spanish cloud computing specialist in a deal rumoured to be worth EUR80m. The company is building its cloud services offering from a core market in Spain, and the acquisition looks set to deliver services to the SME sector. It is unclear how the deal will sit with Telefónica’s domestic strategic alliance with NEC to deliver cloud offerings to the same market. [p.14.]
- In Argentina, Telefónica and NEC’s partnership on cloud computing services is set to take off. Future collaborations are anticipated next in Brazil and Chile, as part of the two companies’ alliance. NEC is aiming to grow the revenue it generates in the region from $500m to $5bn over seven years. [p.31.]
- In a Market Mettle interview, Arvind Rao, Chief Executive of OnMobile, discussed his company’s relationship with Telefónica, which has seen the vendor’s value-added services deployed across a footprint covering 85% of Telefónica’s customers in Latin America. Rao considers the Group’s degree of central control as a positive, enabling action to be taken rapidly. [pp.23-26.]
- Siemens Enterprise Communications and Telefónica Latinoamérica signed a cooperation agreement that will see them offer unified communications services to large corporations and public sector organisations across the region. The regional Telefónica division also awarded UK solutions provider Cellcrypt a contract to provide call encryption products for Movistar smartphone users. • Solutions provider XIUS trumpeted expansion of its agreement with Telefónica in Latin America, and claimed that its re-charge services are being used to drive adoption of mobile payments on the continent. [pp.29-30.]
- In Spain, the early stages of 4G spectrum auctions got underway, with the main sell-off due to start imminently. • In the UK, Telefónica raised objections to the regulator’s plans for similar spectrum auctions. Should network provider grumblings over the proposed auction model escalate to legal objections, distribution of valuable bandwidth could yet again be postponed. [pp.20,50-53.]
- Telefónica Multinational Solutions announced a multi-million euro contract with G4S, a security solutions provider, to deliver a network and telecommunications platform. [p.8.]
- Telefónica Group was named as a founding member of the Open Visual Communications Consortium, established by Polycom to support interoperability of teleconferencing services. The telco also agreed an interoperability agreement with Orange Business Services for telepresence conferencing. [p.9.]
- Telefónica continues to see political fallout over plans for substantial job cuts in its Spanish business, although agreement with unions appears to be inching closer. While the telco is attempting to link concessions on redundancies to revised remuneration terms for remaining staff, it was claimed that axing 20% of its posts could cost EUR2.6bn. The Spanish business re-focused its management, with new regional heads and a centralised Business Development unit. [pp.11-13.]
- Telefónica in Spain launched an e-reader hoped to rival the Amazon Kindle. In the future, it is expected to be rolled out to other markets on the Telefónica footprint. [p.21.]
- Movistar España announced integration of its Segunda Linea service, which provides an additional IP telephony number for mobile customers, with social-networking site Facebook, enabling users to manage voicemail, send web texts, and manage their account from the site. • O2 in the UK is also offering new services within Facebook, with prepay customers able to top-up their accounts without leaving the platform. [pp.21-22,48.]
- The Spanish government and country’s telecoms regulator are supporting Telefónica’s appeal of the EUR152m fine imposed by the European Union in 2007 for restricting competition. [p.16.]
- Telefónica España entered a strategic agreement with broadcaster Mediaset to test hybrid broadcast broadband television, with content from Mediaset included in applications for the Imagenio portal. [p.22.]
- Telefónica in Argentina opened a new innovation centre with national academic institutions. • In Chile, another centre for innovation is due to open soon, to support an incubator programme. [pp.32,34.]
- Integration of Telefónica’s fixed-line and mobile assets in Brazil intensified, as the last of the official merger steps were completed. Senior management changes were confirmed, and the business split into consumer- and business-oriented divisions. The company is to spend nearly EUR90m on rolling out a fibre-to-the-premises network in São Paulo during 2011. [pp.32-33.]
- Telefónica’s main rival in Mexico, Carlos Slim’s Telcel and Telmex businesses, are facing heightened regulatory resistance to their market dominance, providing Telefónica with an opportunity to build its position in the market. [pp.35-36.]
- A new music streaming service for Movistar customers was launched in Peru, offering fixed-line and mobile broadband access to customised playlists on the platform. Telefónica hopes to have ten million customers across Latin America using the streaming service by the end of 2011. [p.36.]
- O2 Germany commercially launched its LTE network with new products, targeting both consumers and businesses. • 3G services were launched in Slovakia, while, in the Czech Republic, O2 claimed it had re-taken the lead in 3G rollout, after rival Vodafone appeared to have expanded its footprint beyond 50% of the population. [pp.38,39,44.]
- Huawei and Telefónica Germany are to open a collaborative Service Innovation Centre to develop new services. [p.41.]
- MicroNova, a German provider of network management solutions, won a contract to provide planning services for the German O2 network. [p.43.]
- O2 Ireland is to offer business customers Microsoft Office 365, a cloud-based version of the Microsoft Office desktop suite, as the Telefónica and Microsoft commercial relationship continues to build. • A fixed-line business broadband offering was launched in the UK. [pp.44,49.]
- The Chinese National Audit Office is looking into alleged irregularities in the financial statements of a group of state-owned enterprises, including China Unicom. Elsewhere, the Chinese operator recently awarded regional contracts to Alcatel-Lucent, Huawei, and NSN. • Telecom Italia entered a five-year research and development partnership with Huawei. The Italian incumbent is also looking at further acquisitions in Brazil, but cast doubt on the potential de-listing of its TI Media division ahead of a rumoured sale. [pp.58-59,60-61.]
Telefónica to acquire hosting company Acens
July 7, 2011
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Telefónica Group announced an agreement with Nazca Capital to acquire Acens Technologies, a Spain based cloud computing specialist.
Financial details were not disclosed, but El Economista reported that the telco paid between EUR75m and EUR80m, citing sources close to the negotiations.
Acens specialises in hosting and providing telecommunications solutions for small and medium size enterprises (SME), and self employed professionals, via its two data centres in Barcelona and Madrid, and presence in Bilbao and Valencia. Current Acens operations focus on domain registrations, virtual private network solutions, web hosting, and other internet service outsourcing functions. The company employs around 180 staff and has a client portfolio of more than 100,000 companies.
El Economista said Telefónica intends to use the acquisition to support plans to consolidate in excess of 100 data centres worldwide into six, of which two will be located in Europe, and two in Latin America, with an investment of up to EUR1.5bn.
Telefónica itself said the purchase will significantly increase its ability to offer cloud computing and hosting services in the SME segment.
“ This acquisition will demonstrate our commitment to cloud computing and will improve our portfolio of services in the SME segment, complementing our value proposition with respect to the competitive environment. ”
– Guillermo Ansaldo, Chairman, Telefónica España.
The existing Acens management team is expected to remain in place after the acquisition.
Nazca acquired its 91% stake in the company for EUR41.5m in 2007. Talks on the acquisition were said to have run for more than six months, with the outcome considered uncertain at several points.
Impact on NEC relationship unclear
It is not clear how the acquisition will tie in or affect Telefónica’s partnership with NEC, which is delivering cloud computing services in partnership with the telco, and claiming significant success with the partnership (Telefónicawatch, #54).
NEC has previously stated it is hosting some cloud services on behalf of Telefónica, while larger enterprise customers may be hosted at Telefónica’s own data centres. The vendor acts as an aggregator of applications and services that are delivered to customers by Telefónica, with the telco maintaining the customer relationship.
Cloud computing is one of seven key verticals being targeted by Telefónica as part of its drive to build services beyond connectivity; and the Spanish market is leading efforts in this area, with a view to expansion across the entire Group (Telefónicawatch, #54).
[Further reference: Telefónica signs agreement to purchase Acens, a leading hosting services provider for SMEs in Spain -- Telefónica, 7 June 2011; Telefónica prepara la compra de Acens por cerca de 80 millones de euros -- El Economista, 7 June 2011; Telefónica compra la empresa de hosting Acens a precio de saldo: un 50% menos de lo previsto -- Cotizalia.com, June 2011; Telefónica ultima la compra de Acens por unos 80 millones -- Cinco Dias, 7 June 2011; Telefónica cierra la compra de la tecnológica Acens -- Cinco Dias, 7 June 2011.]
Telefonicawatch Report #55 May-June 2011 Snapshot
July 7, 2011
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Table of Contents
4 Telefónica Group
4 Acquisitions and disposals
4 Telefónica cancels plans for Atento IPO
5 Positive spin in the Spanish press
5 Telefónica decision to even try IPO questioned
5 Acquisitions and disposals
6 People
6 People movement highlights
6 Executives
7 Networks
7 Google enters talks with operators
7 Financial reports
8 Telefónica Multinational Solutions
8 Telefónica wins G4S contract
8 Financial reports
8 Telefónica confirms dividend
8 Investors
9 Products and services
9 Telefónica backs tele‑conferencing body, partners Orange
9 Products and services
10 Technology
10 Telefónica joins “World IPv6 Day” initiative
10 Suppliers
11 Telefónica España
11 Strategy
11 Telefónica job cuts spark political controversy
11 Deal could cost Telefónica nearly EUR3bn
11 Contracts
11 Telefónica signs ANCERT framework agreement
12 Telco wants pay deal to reflect its revised stance
12 Incumbent balancing operational needs and political expediency
12 Devices
13 Telefónica unveils new organisational structure
13 Fibre
13 Rivals pressure Telefónica on fibre
14 Acquisitions and disposals
14 Telefónica to acquire hosting company Acens
14 Impact on NEC relationship unclear
14 Imagenio
16 Legal
16 Spain supports Telefónica EU appeal
16 Pricing and tariffs
16 New Movistar tariff sparks mobile price war
16 Industry groups
16 Telefónica backs
electronic ID push
17 Rivals react quickly
17 Text pricing the new frontline
17 MVNOs respond to rates they provoked
17 Tuenti
17 Tuenti trumpets security
18 Sudden about‑turn suggests element of panic
19 Signs of price cuts in fixed‑line sector too
20 Networks
20 4G auctions underway in Spain
21 Products and services
21 Telefónica launches ebook reading device
21 Telefónica changes e‑reader approach
21 Movistar Second Line integrated with Facebook
21 Products and services
21 Telefónica partners on
Spanish Chromebook launch
22 Telefónica proving it can work in digital worlds
22 Television services
22 Telefónica ties with Mediaset for HbbTV pilot
23 Telefónica Latinoamérica
23 Interview
23 OnMobile on working with Telefónica in LatAm
23 OnMobile offers Telefónica opportunity to avoid commoditisation
23 Interview
23 INTERVIEW OPPORTUNITY
24 Telefónica central management key to rapid rollout
24 OnMobile benefits from presence embedded in Telefónica networks
25 Telefónica deployment progressing well, despite challenges
26 Team on the ground an essential across Latin America
26 Europe remains a challenge
28 Regional developments
28 Qualcomm sees short‑term future focused on HSPA+
28 Regional developments
29 Regional deals
29 Telefónica ties with Siemens for UC in LatAm
29 Telefónica taps Cellcrypt for encrypted voice service
30 XIUS expands recharge business with Telefónica
30 Telefónica partners F‑Secure in Latin America
30 Argentina
31 Argentina
31 NEC set to launch cloud services with Telefónica
31 Telefónica wins city monitoring contract
31 Argentina
32 Telefónica sets up “Innovation Club”
32 Brazil
32 Telefónica to invest BRL 200m to expand fibre network
32 Brazil
33 Vivo integration and restructuring progresses
33 Brazil
33 Chile
33 Colombia
34 Chile
34 Movistar to expand incubator with innovation centre
34 Colombia
34 Movistar launches four ZTE handsets in Colombia
35 Mexico
35 Mexican regulator to curb América Móvil’s dominance
35 Clashes with TV companies prompt regulatory backlash against Telmex
35 Costa Rica
35 Ecuador
35 Nicaragua
36 Difficulties for América Móvil present opportunities to Telefónica
36 Peru
36 Movistar launches Sonora music service
36 Peru
37 Venezuela
37 Movistar expands network
37 Peru
37 Venezuela
38 Telefónica Europe
38 Czech Republic
38 Telefónica re‑claims leadership in 3G rollout
38 Czech Republic
39 Germany
39 O2 to commercially launch LTE services
39 Czech Republic
39 Germany
41 Huawei and Telefónica Germany open SIC in Germany
41 Germany
42 Schuster predicts German consolidation
42 Germany
43 Fonic passes two million customer milestone
43 O2 selects MicroNova network planning tool
43 Germany
44 Ireland
44 O2 Ireland to offer bundled cloud software
44 Microsoft continues to make presence felt in Telefónica development
44 Slovakia
44 Telefónica Slovakia announces 3G network launch date
44 Slovakia
45 UK
45 O2, EE, and Vodafone form payments joint venture
45 Generalised plans highlight operator priorities
45 UK
46 Open platform provides potential for rapid growth
46 Role of financial services to be determined as tech threat builds
47 Hutchison may slow launch down, as regulatory approval sought
47 O2 tops Ofcom’s mobile broadband charts
47 UK
48 Mobile wallet services move closer
48 Facebook top‑up enabled for O2
48 UK
48 UK operators cut prepay subsidies
49 O2 UK launches Business Broadband
49 UK
50 O2 voices objections to Ofcom spectrum auction plans
50 UK
51 Other dissenting voices
51 UK
51 O2 More claims more than 2m users
53 Ofcom’s response
53 Ambitious timetable on the verge of delay
53 Devices
54 O2 to return to twelve‑month contracts
54 O2 to offer ProntoForms
54 Recruitment
55 Dunne: customer value and new revenue streams
55 “Tough market” in Q1
55 Focus on value
55 “…out of context…”
55 Dunne on M2M
56 O2 values prepay customers
56 Falling ARPU
56 Supplier recruitment
57 JAJAH boosts international market share as new revenue streams flagged
58 Associates and investments
58 China Unicom
58 Audit Office uncovers financial “irregularities”
59 Unicom begins migrating users from PHS system
59 China Unicom signs regional network deals
60 Telecom Italia
60 Telecom Italia ties with Huawei for development
60 Telecom Italia eyes Brazilian acquisition
61 Telecom Italia denies plans for Media delisting
61 Telecom Italia promotes femtocell applications
62 Telecom Italia acquires retailer 4GH
63 Index
Telefonicawatch Report #53 Extract: Local mobile production commences in Venezuela
April 12, 2011
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Extract from Telefonicawatch, report #53. Click through for: the Executive Brief from this month’s report; the Report Snapshot; or to contact us for more information about the full 106-page report, this industry standard monthly report service, and ongoing subscription access.
Local mobile production commences in Venezuela
Movistar Venezuela trumpeted the commencement of mobile device production for the Latin American market at partner and Chilean handset maker Bess Mobile’s factory in Caracas.
Around VEF 200m (EUR33.3m) has been invested in the Bess site, which employs 80 staff directly and supports 200 indirect jobs. Devices being produced by the factory include a colour screen phone featuring an FM radio and targeted at the youth segment; and a device incorporating analogue television reception, an MP3 player, and video recording. The factory is set to put more lines into production as the year progresses, including 3G modems, tablet devices, feature phones with cameras, and devices with solar panels.
The agreement for the new factory to be established by Bess Mobile and Telefónica Venezuela was signed in early 2009, reportedly in response to rivals’ similar plans to establish domestic device manufacturing plants with major Chinese vendors Huawei and ZTE (Telefónicawatch, 2009.02). Venezuelan import and export tariffs and regulation were said to make it more attractive to build devices in the country. However, towards the end of 2010, before production had started, Telefónica attributed a delay in starting operations at the site to the high costs of importing raw materials into the country, which meant that importing finished products was still more economically viable (Telefónicawatch, #49).
Movistar indicated that the handsets would be unique to the operator in the country, although, at the time of the agreement with Bess Mobile, it was not thought that Movistar would have the devices on an exclusive basis. Whether the agreement was tightened to include exclusivity, or whether no competitor has chosen to sell the devices, is unclear.
Confirmation of the activity at the Bess factory coincides with an announcement of a partnership between Telefónica and ZTE for new devices aimed at the Latin American market (See separate report).
The factory is expected to be able to produce 1.5 million units in 2011, and the production lines are configured so that a range of devices across the mobile handset and netbook portfolio can be produced without altering the work rate.
[Further reference: Fábrica Bess ensambla los primeros modelos de celulares comercializados por Movistar -- Telefónica, 8 February 2011.]
Telefonicawatch Report #53 February-March 2011 Snapshot
April 12, 2011
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Snapshot of Telefonicawatch, report #53. Click through for: the Executive Brief from this month’s report; an Extract from the report; or to contact us for more information about the full 106-page report, this industry standard monthly report service, and ongoing subscription access.
Table of Contents
4 Telefónica Q4/FY10 results
4 Telefónica delivers decent FY10, but Q4 disjointed
4 Overview
4 Table 1: Telefónica Group, financial highlights Q4 and FY10
5 Capex growing, and seemingly set to remain elevated
5 Table 2: Telefónica Group, capex, Q4 and FY10
6 Regions: Reliance on LatAm growth increasingly striking
6 Table 3: Telefónica Group, revenue by region, Q4 and FY10
6 Figure 1: Telefónica Group, revenue by region, FY07 vs FY10
7 Table 4: Telefónica Group, OIBDA by region, Q4 and FY10
7 Figure 2: Telefónica Group, OIBDA by region, FY07 vs FY10
8 Table 5: Telefónica Group, organic revenue, OIBDA, operating income and capex, FY10
8 Latinoamérica becoming profit centre
9 Internet uptake supports mobile and fixed access growth
9 Table 6: Telefónica Group, customer numbers (‘000), Q4 FY10
10 2011 forecasts muted after eight years of hitting targets
11 Atento Group
11 Table 7: Atento Group, financial highlights, Q4 and FY10
11 Analyst reaction: weakness in Spain remains focus
13 Telefónica España
13 FY10 results: decline worsens in face of competition
13 Table 8: Telefónica España, financial highlights, Q4 and FY10
14 Telefónica claims irrational forces at play in Spain
15 Table 9: Telefónica España, customer numbers (‘000s), Q4 FY10
16 Fixed decline looking less carefully managed
16 Table 10: Telefónica España, wireline business, revenue by type, Q4 and FY10
17 Mobile data far from compensating for slumping voice
17 Table 11: Telefónica España, wireless business, revenue by type, Q4 and FY10
17 Table 12: Telefónica España, wireless business, key performance indicators, Q4 FY10
18 Telefónica Latinoamérica
18 FY10 results: Vivo deal puts LatAm growth in overdrive
18 Table 13: Telefónica Latinoamérica, financial highlights, Q4 and FY10
19 Rising contract customers a precursor to mobile broadband growth?
19 Telesp recovering from difficulties
20 Table 14: Telefónica Latinoamérica, customer numbers (‘000), Q4 FY10
20 Brazil leads the way; Mexico up and coming
20 Brazil
20 Argentina
21 Chile
21 Mexico
21 Venezuela
22 Table 15: Telefónica Latinoamérica, revenue by country, Q4 and FY10
23 Table 16: Telefónica Latinoamérica, OIBDA by country, Q4 and FY10
25 Telefónica Europe
25 FY10 results: mobile data growing, but margins still tight
25 Table 17: Telefónica O2 Europe, financial highlights, Q4 and FY10
26 Table 18: Telefónica O2 Europe overall, customer numbers (‘000), Q4 FY10
27 OpCos
27 O2 UK considered well positioned for 2011
27 Table 19: Telefónica O2 Europe, revenue by country, Q4 and FY10
28 O2 Germany: acquisition‑fuelled powerhouse
29 Smaller O2 units continue battling the elements
29 Table 20: Telefónica O2 Europe, OIBDA by country, Q4 and FY10
30 Telefónica Group
30 Acquisitions and disposals
30 Telefónica completes tender for outstanding Vivo shares
30 Telefónica still considering Atento IPO
30 Corporate social responsibility
31 Telefónica linked to Polkomtel sale
31 Financial reports
32 Key rejects speculation over E-Plus acquisition
32 Applications
32 WAC commercial launch welcomed by Telefónica
32 Financial reports
33 Telefónica affirms commitment, but is managing expectations
33 Mobile operating systems
34 WAC pitched as an extension of Telefónica’s own developer efforts
34 Telefónica trumpets BlueVia
34 “…out of context…”
34 Key on mobile future
35 Telefónica promotes international reach, and telco experience
36 Telefónica announces Frigo application folder
36 Range of supported operating systems supports LatAm deployment
37 Telecom Italia set for spring Frigo launch
37 WAC credentials highlighted
37 Telefónica I+D announces Frigo Reflections
37 Qualcomm recommendation app deployed by Telefónica
38 Telefónica ties with RIM for BlackBerry App World
38 O2 to offer pre-loaded eBay apps
39 Strategy
39 Telefónica highlights ICT potential at congress
39 Broadband growth unstoppable, emerging markets to take smart device lead
40 Growth demands investment; Alierta hints at content providers truce
41 Alierta upbeat on digital benefits for telcos
41 Telefónica International Wholesale Services
41 Interoute and TIWS sign deal
42 Telefónica Multinational Solutions
42 Fujitsu signs Telefónica for mobile services in Europe
42 UK unit seals the win
42 International partnership agreements now bearing fruit
44 Telefónica España
44 Contracts
44 Telefónica participates in Andalusia contract
44 Cloud services
44 Telefónica trumpets Castilla‑La Mancha cloud contract
44 Contracts
44 Telefónica secures public sector contracts
45 Financial services
45 Telefónica partners with rivals for NFC
45 A first step on the road to a standard mobile payment environment
45 Applications
46 Movistar España partners MoneyGram
46 Market statistics
46 Movistar share slips as competition heats up
47 Alternative service providers also taking broadband share
47 Broadband‑prompted number porting gnaws at Movistar fixed base
47 Corporate social responsibility
48 Network
48 Telefónica calls for fibre suspension in Viladecans
48 Telefónica to demand guarantees for wholesale access
48 Corporate social responsibility
48 Network
49 Partners
49 Telefónica selects Alcatel-Lucent for femtocells
49 Devices
50 Telefónica selects Morpho for smart interactive services
51 Pricing and tariffs
51 Movistar offers 25% call discount to new customers
51 Discount signals Telefónica fightback as market share tumbles
51 Movistar adds benefits to bundles
51 Mobile payments
52 Products and services
52 Movistar second line offering launched
52 Technology provider: Telefónica ties with fonYou for cloud‑based service
52 JAJAH overlooked for virtual connection
52 Sponsorship
53 Interactive advertising launched in Spain
53 Mobile TV relaunched by Movistar
54 Research
54 Telefónica highlights conferencing and SIM innovation
54 Multi‑conferencing with 3D sound
54 ID-supplemented SIM cards
55 Telefónica Latinoamérica
55 Regional developments
55 Investment fund for LatAm confirmed
55 Telefónica launches Tokes messaging system
55 Regional developments
56 Regional partnerships
56 ZTE to launch flagship Movistar handset in Latin America
57 Synchronica expects featurephone expansion in LatAm
57 Assurant wins LatAm wireless insurance partnership
58 Acision boasts Latin American messaging deal
59 Telefónica to deploy Myriad’s social-networking solution
59 MasterCard j-v still to decide m-payment platform
60 MasterCard Chief Executive on Telefónica deal
61 Argentina
61 Mobile security unit launched by TIS
61 Telefónica launches virtual IP centre
61 Argentina
62 Brazil
62 Vivo emphasises contract focus
62 Brazil building significant financial services customer base
62 Vivo branding for unified business confirmed
62 Brazil
62 Telefónica testing IPv6 deployment
63 VendTek trumpets Telefónica Brazil contract
63 Telefónica trumpets network performance
63 New social network launched by Telefónica
64 Chile
64 Movistar Chile targeting innovation
64 Calls for shake-up to Chile market
64 Chile
64 Telefónica Chile sees TV growth
66 Colombia
66 XIUS wins Telefónica contract
66 ETB wins Movistar interconnection dispute
66 Ecuador
66 Panama
67 Peru
67 Focus on criminal prosecutions continues
67 Terra Networks
67 Terra to provide mobile coverage of Olympics in LatAm
67 Peru
68 Venezuela
68 Local mobile production commences in Venezuela
68 Venezuela
69 Telefónica Europe
69 Appointments
69 O2 Germany appoints new Consumer Sales Director
69 O2 UK appoints new Head of Strategy
69 Appointments
70 Czech Republic
70 O2 cuts data roaming charges…
70 …also cuts data costs for domestic occasional users
70 Czech Republic
71 O2 and T-Mobile CZ to share 3G network
71 O2 launches new fixed-line tariffs and bundles
71 Czech Republic
72 Germany
72 O2 names partners for LTE rollout
72 Czech Republic
72 O2 Czech Republic joins Think Big programme
72 O2 refreshes website, introduces e-billing
73 Regulator cuts Germany MTRs
73 Germany
74 O2 Germany wins smart meter contract from Zabel
74 Other M2M initiatives highlighted
74 Germany
75 O2 launches BlueVia and new apps
75 Germany becoming a “smartphone market”
75 Germany
76 O2 partners ITIS for PrecisionTraffic
76 Germany
77 O2 Germany reduces data roaming charges
77 Germany
77 Telefónica O2 Germany to be re‑named
78 Ireland
78 O2 launches O2 Money in Ireland
78 Ireland
79 Slovakia
79 O2 trumpets success of O2 Moja Firma
79 Slovakia
80 United Kingdom
80 O2 switches on 3G 900MHz network in London
80 United Kingdom
81 O2 selects NSN and Ericsson for 3G network upgrades
81 United Kingdom
82 Ofcom to cut MTRs by 80%
82 United Kingdom
83 Dunne: LTE to be used like “M6 toll road”
83 United Kingdom
84 O2 confirms H2 mobile money launch, but no NFC just yet
84 NFC still core, but not to be rushed
84 United Kingdom
86 O2 building a financial services customer base
86 Wider uses for NFC also under consideration
86 United Kingdom
87 O2 plans £70m advertising campaign to emphasise value
87 G4S signs O2 for smart meter rollout
87 United Kingdom
87 O2 re-launches Approved Partner Programme
88 O2 trumpets success of O2 More
88 United Kingdom
88 BT’s Livingston dismissive of O2 Wi‑Fi plans
89 Gregory: Location‑based marketing is the future
89 United Kingdom
89 O2 not to offer iPad 2
90 O2 launched Joined Up for fixed-line resellers
90 O2 selects Momac as sole ringtone provider
90 United Kingdom
90 Thompson: O2 Learn leading family market charge
91 O2 selects Mi-Pay for top-up services
91 New O2 age‑verification system sparks user complaints
91 United Kingdom
91 Thompson: O2 Learn leading family market charge cont’d
92 O2, Orange and Vodafone trial IMB
92 United Kingdom
92 O2 launches O2 Academy TV
93 O2 ups fixed-line prices
93 United Kingdom
93 O2 staff support pension changes
94 AAISP cries foul over unsolicited calls to customers
94 United Kingdom
94 O2 retains Carbon Trust Standard
95 Associates and investments
95 China Unicom
95 China Unicom selects Ericsson for GPON contract
95 China Unicom to launch new smartphones
95 China Unicom
96 China Unicom launches Wophone OS
96 China Unicom
97 China Unicom maintains 3G market share
97 Telecom Italia
97 TI to reshuffle top management
97 Telecom Italia
98 TI sells Etecsa stake for $706m
98 Telecom Italia
99 Telecom Italia adds Application Manager to TIM Store
99 Telecom Italia linked with fibre provider sale
99 AgCom green-lights TI’s FTTH service
99 Telecom Italia
99 Telecom Italia launches 100Mbps network in Venice
100 Telecom Italia wins Consip contract
100 Telecom Italia
100 Telecom Italia launches Collabor@
101 Index
Telefonicawatch Report #53 February-March 2011 Executive Brief
April 12, 2011
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Executive Brief from Telefonicawatch, report #53. Click through for: an Extract from this month’s report; the Report Snapshot; or to contact us for more information about the full 106-page report, this industry standard monthly report service, and ongoing subscription access.
- Telefónica Group published its financial results for 2010, with the company hitting targets in demanding conditions, but seeing a somewhat disappointing end to the year. Operations in Spain continue to weigh on the Group, with signs that competitors are taking competition up a gear. However, absorption of Vivo in Brazil helped give the results a better sheen, and emphasise that the telco’s revenue and profit mix has decisively shifted to Latin America over the years of the global economic crisis. Telefónica Europe, meanwhile, continues to defend its position, although margins remain leaner, competition intense, and growth difficult to come by. [pp.4-29.]
- Telefónica highlighted success in hitting financial targets for eight successive years, but took a change in tack for its current guidance, setting a low end target to exceed its forecast, rather than its more traditional range of numbers, which had provided ‘stretch’ targets the company considered it could meet. The more conservative approach is reportedly intended to provide operational flexibility should market conditions require the telco to react aggressively to competitive conditions. It was also noted that Telefónica is no longer expecting to cut capex, but is beginning to see need for investment to meet increased data demands being placed on its fixed and mobile infrastructure. [pp.10,5.]
- Mobile World Congress in Barcelona saw Telefónica focus on the potential of mobile data, and the role of operators in mobile applications. The telco juggled announcements of its own application developer programme BlueVia, which is said to offer developers revenue opportunities from the “crown jewels” of operator APIs; and its support for the Wholesale Application Community (WAC), which is aiming to create a unified ecosystem for mobile application development, with operators in a central role. Telefónica was outwardly positive about the potential for WAC to succeed, but seems to expect little from the initiative in the short term, and continue to focus on building its own relationships with the developers. Aside from announcements supporting apps from eBay, a billing agreement with Research In Motion’s BlackBerry App World, and a couple of research and development projects, Telefónica’s main contribution to innovation at MWC was the unveiling of Frigo, a multi platform solution promising “true ownership” of mobile apps. However, a launch date for the service was not announced, and a commercial brand is yet to be unveiled. Telecom Italia is expected to have a version of Frigo available by the end of April. [pp.32-38.]
- The Telefónica drive for mobile data in Latin America is taking a two pronged approach, with initiatives underway to put more sophisticated, but lower cost, handsets in consumers’ hands, coupled with projects to bring applications and services associated with smart devices to more basic mobiles. Movistar branded smartphones from ZTE are to be launched across the region; and production has finally begun on a range of new devices at a factory jointly run with Bess Mobile in Venezuela. Meanwhile, companies including Acision and Myriad are trumpeting deals that will see richer messaging services and social networking features made available to all Movistar customers, and applications such as Telefónica’s own Tokes text notification offering are widening the scope, and potential market, for data services. It is also notable that Frigo is flagging Java compatibility, which will bring more Latin American devices into the addressable market. [pp.56,68,58,59,55,36.]
- Movistar España announced the launch of La Segunda Línea de Movistar, an additional virtual line for mobile customers that does not require a dual SIM or other new hardware. The service, which is free to add, is positioned as providing a line that can be used to contact people and services outside the trusted sphere of family, friends, and work. Calls and texts are charged at the same rate as the principal line’s tariff. While an additional IP line is the type of service expected to evolve from Telefónica’s acquisition of JAJAH, the new offering is based on services from FonYou. [p.52.]
- While rivals in the UK appear to have moved ahead of O2 UK in terms of commercial launches for mobile payment services, the division is continuing to build its customer base and product portfolio. The second half of 2011 is expected to see O2 UK launching new mobile payment services, although NFC payments appear some way off. One of the obstacles to NFC uptake will be availability of infrastructure from a banking and retail perspective, in addition to the need for compatible handsets, so logic can be seen in O2′s current focus on building financial services customer relationships ahead of widespread deployment. O2 UK claimed more than 800,000 customers for insurance and payment services, while, in Brazil, Vivo is said to have in excess of 500,000 users of its co branded Itaucard credit card, meaning that Telefónica Group can now claim commercial relationships in the financial services sector with more than 1.3 million customers. O2 Ireland launched O2 Money, a pre paid Visa card, similar to earlier UK offerings. In Spain, a ground-breaking agreement was announced by Movistar, Orange, and Vodafone, to collaborate on development of NFC standards in the country, so as to smooth the path towards widespread availability. [pp.84-86,62,78,45.]
- In his keynote speech at MWC, César Alierta was upbeat on the position of operators in the increasingly digital future, and reasserted Telefónica’s intention to increase its ‘share of wallet’. through expansion into areas such as e health and mobile payments. [pp.39-41.]
- Despite claims that significant acquisitions were not in the pipeline, Telefónica was linked to deals in Germany and Poland. After delays caused by difficult market conditions, a spin off of contact centre business Atento appears back on the cards. [pp.32,31,30.]
- Telefónica Multinational Services won a contract with Fujitsu, to become its sole provider of mobile services in Europe, putting to good use Telefónica’s previously announced alliances with other operators across the continent. TIWS awarded Interoute a contract to become its core fibre optic network provider in Western Europe. [pp.42,41.]
- In Spain, Movistar was seen to be taking steps to combat encroaching competitors, in both the broadband and mobile markets, with an offer of a 25% reduction in call costs from mobile lines until 2012 for new subscribers to its fixed broadband offering. Value added services for its bundled services were also highlighted, as the operator attempts to counter what it describes as “non rational” competition, which is seeing the telco perform poorly in terms of net addition gains in its core Spanish markets. [p.51.]
- Alcatel Lucent won a contract to support the roll out of femtocell services across the country with Movistar España. [p.49.]
- Telefónica Latinoamérica announced a new initiative to support the development of ICT business on the continent. Few details were provided about the incubator project, however, which follows a recent $100m initiative launched in Chile. [p.55.]
- Telefónica in Argentina continued to build its ICT services for SME customers, with a new Virtual IP Central offering providing virtual PBX style services. [p.61.]
- In Brazil, Vendtek announced a contract with Telefónica to provide pre paid recharge services for the telco’s fixed line customers; and in Colombia, XIUS won a deal to support loyalty and payment programmes for Movistar customers. [pp.63,66.]
- After a period when investment and capabilities of its data network were being questioned, O2 UK trumpeted completion of an upgrade that made 3G services available using 900MHz spectrum in London, spreading to other cities in the country. Ericsson and NSN were named as partners for projects to upgrade the operator’s 3G network. O2 UK head Ronan Dunne outlined a vision of LTE as a version of a high quality toll road. [pp.80,81,83.]
- Telefónica Europe announced smart metering deals in Germany and the UK, as its M2M services unit shows signs of gaining traction. In Germany, a deal with Zabel to provide potentially 700,000 SIM cards was announced, while O2 in the UK is to manage and monitor a smart meter network for G4S. [pp.74,87-88.]
- O2, Orange, and Vodafone in the UK are trialling television broadcast services using IMB technology; and, in Spain, Movistar upgraded its mobile television offering. In Ireland, however, regulator proposals to open up radio spectrum for mobile television licences were shelved due to lack of operator interest. [pp.92,53,53,78.]
- Mobile termination rate cuts continue to have an impact on Group performance, and further reductions continue to filter through, with regulators in Germany and the UK announcing substantially lower rates, albeit with the decline in the UK being on a gentler slope than cuts imposed in Germany. [pp.25,73,82.]
- Telecom Italia is set to see changes to its senior management, with Telco SpA reportedly approving a new Executive Chairman role for current Chief Executive Franco Bernabe, and new board level positions with a focus on operational matters in Italy and Latin America to be created. China Unicom continues to add to its smartphone portfolio, as 3G growth continues. The operator launched its own Wophone operating system. [pp.97-98,95,97,96.]
Telefonicawatch Report #52 December 2010-January 2011 Snapshot
March 16, 2011
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Snapshot of Telefonicawatch, report #52. Click through for: the Executive Brief from this month’s report; an Extract from the report; or to contact us for more information about the full 60-page report, this industry standard monthly report service, and ongoing subscription access.
Table of Contents
4 Telefónica Group
4 Acquisitions and disposals
4 Telefónica ends Serbia interest
4 Associates and investments
4 China Unicom and Telefónica deepen relationship
5 Developers
5 James Parton: introduction to BlueVia
5 Appointments
5 Ros appointed at Qualcomm
5 Associates and investments
6 Legal
6 EC to investigate non‑compete agreement with PT
6 Brokers’ reports
7 Partners
7 Telefónica welcomes BMC and Cisco cloud development
7 Financial reports
8 Telefónica España
8 Contracts
8 Telefónica wins communications contract with law firm
8 Employment
8 Telefónica job losses predicted in Spain
8 Community
8 Telefónica and Kanchi announce global Ability Awards
9 Marketing
9 Telefónica agrees telemarketing code of conduct
9 Market statistics
9 CMT continues to show increasing competition
9 Devices
9 Movistar launches “textwar”
10 Broadband base up 8.5% year‑on‑year, fixed still declining
10 Mobile applications
10 Telefónica I+D develops “emotional” location service
10 New location‑based app from I+D
10 Network
10 Network expansion planned
11 Mobile payment
11 All Telefónica handsets to be NFC‑enabled by 2012?
11 Telefónica trumpets end of Sitges mobile payment pilot
11 Property
12 Some caveats need to be considered on NFC trials
12 Partners
12 Asavie wins España SME connectivity deal
12 Regulatory
13 Deal marks growing international relationship between companies
13 Pricing and tariffs
13 Rivals clash during key Christmas
13 New broadband tariffs for schools
15 Television services
15 Telefónica re‑enters content business
15 HD and 3D upgrades planned for Imagenio
15 Tuenti
15 Telefónica launches Tuenti MVNO
16 Telefónica Latinoamérica
16 Regional developments
16 Telefónica and MasterCard target financial services
17 Brazil excluded from partnership plans?
17 Telefónica wins Costa Rica licence
18 Argentina
18 Telefónica adds 1m+ customers in 2010
18 Argentina
19 On Video launched in Argentina
19 On‑demand a bridgehead for Latin America triple‑play
19 Argentina
19 Cable thefts hit Argentina
19 Further CCTV deployment heralded
20 Movistar trialling LTE in Argentina
20 Movistar highlights social‑networking efforts
20 New customised text service launched by Movistar
21 Movistar website re‑launched
21 Brazil
21 Convergence and innovation a focus for 2011
21 Pay‑TV and a million fibre homes targeted by Telesp
21 Brazil
23 Vivo continues growth and sees contract improvements
23 Vivo partners PayPal
23 Vivo gains additional spectrum
23 3G expansion also confirmed
23 Brazil
24 Vivo trumpets success of online learning
24 Vivo keeps market share around 30%
24 Picture less rosy for mobile broadband
24 Myriad announces Vivo agreement
25 Telefónica launches online billing
25 Vivendi settles GVT case
26 Chile
26 Flogel moves to innovation role, Munoz takes over
26 Major fibre investment planned for Chile
26 Telefónica loses outages fine appeal
27 Ecuador
27 Telefónica addresses seasonal network congestion
27 Mexico
27 Termination disputes yet to be settled
28 Peru
28 Unified branding reaches Peru
28 Telefónica signs Electro Oriente deal
28 New pre‑pay internet service launched
28 Peru
29 Satellite TV, 3DTV offering planned for Peru
29 Cable theft continues to plague Telefónica
29 Action against television content piracy also ongoing
30 Telefónica continues public‑private investment projects
30 Movistar trumpets eco handset
30 Telefónica supports school security initiative
30 Venezuela
31 Uruguay
31 SpinVox service reaches Uruguay
31 Venezuela
31 Mobile broadband presence felt in Venezuela
33 Movistar roaming costs revealed
33 Mundo Movistar platform expanded across Latin America
34 Telefónica Europe
34 Management
34 New appointment at JAJAH, O2 CIO post created
34 Alder takes on Chief Executive role
35 Telefónica taking innovation search to new level?
35 New focus of JAJAH‑based products hinted at
36 Management restructure at O2 UK
36 Ben Dowd, Business Director; Sally Chowdry, Consumer & Business Director
36 David Plumb, GM Enterprise; Simon Devonshire GM SME and LME
36 Tim Sefton to head Business Development; new M2M and MVNO heads
36 Glenn Manoff leading O2 Communications
36 CFO Ros returning to Madrid; successor still to be confirmed
37 O2 boosts specialist advisors in restructure
37 Czech Republic
38 O2 Media appoints new Commercial Director
38 Czech Republic
39 Czech Republic
39 Nokia leads O2 smartphone sales at Christmas
39 O2 reports mobile advertising growth
39 O2 launches loan service for prepaid customers
39 Czech Republic
40 New music download service launched in Czech Republic
40 Germany
40 O2 to support VerbaVoice launch
40 Operators protest MTR cuts
40 Czech Republic
42 Altair highlights LTE role
42 Ireland
42 ComReg rules against O2 in billing row
42 Tesco Mobile deploys Tweakker solution
42 Germany
43 United Kingdom
43 O2 begins 900MHz migration, boosts network investment
43 EE and H3G object to Ofcom’s re‑farming ruling
43 Ireland
44 O2 launches free Wi‑Fi
44 Slovakia
44 UK
45 A sign of innovation, or struggling to keep up?
45 UK
46 O2 unveils 2e2 joint venture
47 O2 preps O2 Money for 2012 Olympics
47 “You Are Here” attracts more big names
47 UK
48 O2 to boost channel investment by £7m
49 O2 invests in O2 Learn
49 O2 leads 2010 online ad spending
50 O2 hails success of new merchandise display system
52 Associates and investments
52 China Unicom
52 China Unicom seeks to boost 3G adoption
52 China Unicom
53 Unicom 3G growth continues
53 Porting could further boost Unicom’s 3G numbers
53 China Unicom
54 Unicom adds new devices to 3G portfolio
54 China Unicom
55 International roaming extended by Unicom
55 Telecom Italia
55 Telecom Italia launches online authentication service
55 Telecom Italia
56 Cubovision launched by TI
56 TI linked with Dahlia TV
56 Telecom Italia
57 TI upgrades rail network infrastructure
57 Telecom Italia
58 Index
Telefonicawatch Report #52 Extract: Telefónica Latinoamérica: Regional developments
March 16, 2011
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Extract from Telefonicawatch, report #52. Click through for: the Executive Brief from this month’s report; the Report Snapshot; or to contact us for more information about the full 60-page report, this industry standard monthly report service, and ongoing subscription access.
Telefónica Latinoamérica | Regional developments
Telefónica and MasterCard target financial services
Telefónica Group and financial services company MasterCard announced a new joint venture, which will offer mobile financial solutions to consumers in twelve Latin American countries where the telco has a presence.
87 million Movistar customers are to be targeted by the new entity in which the telco and card company will each hold a 50% stake. Offerings are to include bill payment, mobile airtime reload, money transfers, and retail purchases, among others. The venture is intended to integrate the perceived accessibility and convenience of mobile phones with financial solutions that will be compatible with existing electronic payment solutions.
The initiative with MasterCard is described as a global first, and Telefónica is now seen to be taking a more ambitious and focused approach, after a couple of years of merely tinkering around the edges of mobile financial services through local partnerships with banks.
It was stressed that the new service will be based on an open model to attempt to ensure barriers do not emerge between existing users of banking services and the ‘unbanked’, and amid Movistar and non-Movistar customers in the region.
The two companies also emphasised the potential social benefits of the new scheme in terms of raising financial inclusion and encouraging development of societies across the continent. It was noted that by 2014 mobile financial transactions will be worth an estimated $63bn (EUR46bn) in Latin America.
“ MasterCard’s commitment to foster financial inclusion across the globe makes the joint venture an exciting opportunity to provide accessible and affordable financial solutions to the millions of consumers in the Latin America region who have never been able to enjoy the benefits of electronic payments. This initiative puts us at the forefront of mobile payments in the region and arms us with the right artillery to strengthen our war on cash. ”
– Richard Hartzell, President, MasterCard Latin America and Caribbean.“ By offering mobile financial solutions, we are fully responding to the demands of the population in Latin America that trusts in their mobile phone to conduct financial operations. This joint venture places Telefónica in a solid position to lead the development of mobile financial solutions in Latin America. ”
– Joaquin Mata, Global Head of Financial Services for Telefónica.
Brazil excluded from partnership plans?
The agreement does not appear to relate to Brazil, but only operations currently trading under the Movistar name. However, towards the end of 2010, MasterCard was reported to be partnering Redecard, a Brazilian credit card company, and Vivo, on a mobile payments processing platform. It is not clear whether the reported announcement refers to the ongoing development of a partnership between Vivo and MasterCard, announced towards the end of 2009 (Telefónicawatch, 2009.10), or was recycled news.
[Further reference: MasterCard and Telefónica create a joint venture to offer mobile financial solutions in Latin America -- MasterCard, 26 January 2011; MasterCard launches mobile payments gateway with Redecard, Vivo -- BN Americas, 3 December 2010.]
Telefónica wins Costa Rica licence
Telefónica Latinoamérica was one of only two bidders for a mobile licence in an auction held in Costa Rica.
Three licences had been made available, with a minimum offer price of $70m (EUR51m), but only Telefónica and rival América Móvil expressed interest in entering the market. Telefónica is said to have secured the most desirable tranche of spectrum, having bid $95m for a licence for the available 850MHz bandwidth, beating América Móvil’s $77m. América Móvil secured 1800MHz band spectrum with an offer of $75m.
Licences are expected to be issued in February 2011, with services anticipated to launch during September 2011. A resolution approving the issue of the Telefónica licence was issued in mid January 2011, with a ten day window to object to its finalisation.
The new Telefónica business is likely to be part of the “Challenger” unit within Latinoamérica led by Jaime Smith (Telefónicawatch #50), which includes operating companies in Mexico, Venezuela, and other countries in Central America.
The two new entrants will be competing with state owned operator ICE in the Costa Rican mobile market.
A further auction could be conducted by regulator SUTEL to sell the spectrum not bid for during the December 2010 process. Operators Cable & Wireless Communications and Digicel, which had been expected to bid for a licence, are said to have been in attendance at the opening bidding presentation phase of the Costa Rican auction, but declined to submit offers.
[Further reference: America Movil, Telefónica bid for Costa Rica mobile licences -- Wireless Federation, 15 December 2010; SUTEL could potentially hold second spectrum auction -- BN Americas, 16 December 2010; Surprise lack of interest in mobile auction -- Telecommunications Insights, 1 January 2011; Telefónica pips America Movil in Costa Rica auction -- Total Telecom, 11 January 2011; Costa Rican President approves spectrum awards to America Movil, Telefónica -- Global Insight, 20 January 2011.]
