Telefónicawatch
This release
: #131
December 2018: 68pp
Releases/year: 10+
Click for more details of this release

Executive brief

Group

Management Update: Telefónica ups guidance, rediscovers strength [p.6]

  • Table: Telefónica, selected financial data, Q3 FY18
  • NGNs paving the way for continued momentum
  • LatAm proceeds on choppy seas
  • Table: Telefónica Group, performance by unit, Q3 FY18
  • Next phase of transformation: make digital pay

Acquisitions and disposals: Insurance firm sale kicks off latest round of debt reduction [p.13]

  • Telefónica nears Mexico exit…
  • Telefónica hopes to raise more through data centre sales

People [p.15]

  • Navarro goes Global in 2019.
  • Table: people movements

Global Resources

5G: Telefónica promotes Málaga as third 5G city [p.18]

  • 5G: not to be seen in isolation

Partners: Telefónica ties with IBM on blockchain [p.21]

  • VMware trumpets partnership with Telefónica

UNICA: Mavenir jumps on UNICA bandwagon [p.24]

  • Local customisation of a global platform

Digital services

Telefónica unveils AI ethics [p.28]

Digital-identity verification boosts ElevenPaths' ecosystem ambitions [p.30]

LUCA selects Stratio to help customers manage big data use [p.31]

  • Wayra UK forms new incubator programme with Innogy

Latin America

Brazil: TIM and Vivo extend 3G infrastructure-sharing in Brazil [p.36]

  • Telefónica Brasil has high hopes for new government

Mexico: Telefónica México launches mobile advertising offering [p.40]

  • Growing ecosystem of advertising partners
  • Table: LUCA's portfolio of media and advertising services

Europe

Germany: SIAE digs itself in further with O2 Germany deal [p.44]

  • O2 unveils more partners to underpin fixed and mobile services
  • GasLINE another new partner as O2 opens its arms to network alliances
  • Proof in network performance test, with 2019 set to be a big year
  • O2 extends business security solutions with McAfee

Spain: Telefónica, Huawei get pally on President Xi's Spain trip [p.52]

  • Spanish oasis for Huawei
  • Telefónica España claims converged consumer cybersecurity world-first

UK: Ericsson fault banjaxes O2 network [p.58]

  • Headlines highlight O2's '87p' compensation, while Ericsson could be hit for £100m
  • O2 takes Massive step towards London 5G launch
  • O2 UK claims European small-cell fibre first for driverless tech

Further reading

Index

Symbols

3GPP 18
3M 64
21st Century Fox
 - Sky plc 58

A

Advent 14
Aerial Technologies 29, 64
AI 28, 29, 31, 32, 63, 64
Alastria 22
Alphabet
 - Google 56
Altán Redes
 - Red Compartida 42, 64
Altiostar 25
Altran 25
América Móvil 36, 42
 - Claro 36, 39, 42, 64
Analysys Mason 25
Anatel 36
Apple 57
 - iOS 49
 - iPhone 57
Aquto 41
Arqiva 61, 65
AT&T 14, 63

B

Bank of America Corp. 14
Beerides 34
BP 16
BT Group 16, 22, 53, 65
Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (Federal Network Agency for Electricity, Gas, Telecommunications, Postal Service and Railways, BNA/BNetzA/RegTP, Germany) 45

C

Carrier Blockchain Study Group 22
Cerberus 14
China Mobile 37
China Telecom 37
CK Hutchison 16
 - H3G
 - UK 16
CNMC 56
Colt Group 22
Community of Madrid 57
Conadecus 39

D

Datami 40, 41
Dell Technologies
 - VMware 23, 63
Deutsche Telekom 45, 65

E

Enerbrain 34
Energia 64
Entel 39, 42, 64
Ericsson 19, 25, 38, 58, 59, 65
ETNO 10
European Union 12, 19, 45, 51
EVezy 34
EWE TEL 46, 65
ExCel Arena 19

F

Facebook 25
 - Telecom Infra Project 25
Facua 56
FIWARE 19
Forrester 32, 64
Futurecom 37, 38

G

GasLINE 46, 47, 65
Genesys 56
Grupo Catalana Occidente 13, 63
GSM Association (GSMA) 15

H

Havas 40, 41
Hortonworks 32
HP, Inc 26
Huawei 18, 19, 25, 32, 50, 52, 53, 62, 63, 65
Humanising Autonomy 34

I

IBM 21, 22, 63
IFT (Mexico) 42
Innogy 64
innogy SE 33
Intel 29, 64
Intel Capital 29, 64

K

Kibo Ventures 29
KKR 14

L

Liberty Global 14, 45
London Stock Exchange 12

M

MásMóvil
 - Yoigo (Xfera) 56
Mavenir 24, 25, 40, 41, 63
McAfee 49, 50, 54, 65
Merrill Lynch 14
Microsoft 51
Millicom 14, 63
Morgan Stanley 62
Motorola 41
MVNOs 58, 59

N

NET 25
Netflix 42
NETSCOUT 25
NGN Fiber Network 47
Nokia 14, 19, 20, 57, 60, 63
Nuage Networks 14

O

Oi SA 36, 37
Omnicom Group, Inc
 - Organic 7
Omniflow 34
Orange 15, 19, 57
 - Spain 57

P

Parallel Wireless 25
PCCW 22

R

RADCOM 25
Red Hat 25
Regions
 - APAC
   -- Australia 53
   -- China 18, 37, 52, 53, 65
   -- Japan 59
   -- New Zealand 53
 - EMEA
   -- Czech Republic 45
   -- Europe 6, 7, 8, 10, 12, 14, 19, 22, 23, 26, 41, 42, 43, 45, 50, 51, 57, 61, 62, 63, 65
   -- France 41
   -- Germany 15, 16, 24, 25, 33, 38, 44, 45, 46, 47, 48, 49, 50, 51, 53, 65
   -- Ireland 12
   -- Italy 44
   -- Portugal 61
   -- Spain 7, 8, 14, 18, 19, 22, 26, 31, 38, 50, 52, 53, 54, 55, 56, 57, 61, 63, 65
   -- UK 7, 8, 9, 12, 16, 33, 34, 38, 41, 53, 58, 59, 60, 61, 62, 64, 65
 - Latin America 6, 7, 8, 26, 31, 35, 38, 41, 42, 45, 55, 57, 64
   -- Argentina 9, 25, 26, 38, 40, 64
   -- Brazil 8, 9, 15, 16, 26, 36, 37, 38, 40, 41, 64
   -- Central America 8, 9, 13, 14
   -- Chile 9, 26, 39, 42, 64
   -- Colombia 6, 9, 25, 26, 39, 64
   -- Costa Rica 14, 26
   -- Ecuador 9, 26
   -- El Salvador 14, 26
   -- Guatemala 14, 26
   -- Mexico 6, 8, 9, 11, 14, 26, 40, 41, 42, 64
   -- Nicaragua 14, 26
   -- Panama 14, 26
   -- Peru 9, 16, 25, 26, 42, 64
   -- Uruguay 9
   -- Venezuela 9, 16
 - North America
   -- USA 53
Rivetz 22, 30, 64

S

Samsung 26
SIAE Microelettronica 44, 45
Singtel 15
Sodexo 26
Softbank 59
Stratio 31, 32, 64

T

TDLC (Chile) 39, 64
Technolgies
 - QR codes 57
Telecom Italia
 - Telecom Italia Mobile 36
 - TIM Brasil 36
Telefónica Group 6, 9, 10, 11, 12, 13, 14, 15, 16, 20, 24, 28, 29, 31, 36, 38, 52, 57
 - Digital services
   -- AURA 56
   -- Axonix 41
   -- ElevenPaths 22, 30, 49, 50, 54, 64
   -- LUCA 16, 31, 32, 40, 41, 51, 64
   -- M2M 57
   -- Open Future 16, 33, 34
   -- Statiq 41
   -- Synergic Partners 16, 51
   -- Wayra 16, 33, 34, 64
   -- Weve 41
 - Directors
   -- de Paz, Javier 16
   -- Linares, Julio 15, 16
 - Europe
   -- E-Plus 44, 48, 50
   -- Germany 44, 45, 46, 47, 48, 49
   -- Giffgaff 58
   -- O2 8, 16, 44, 45, 46, 47, 48, 49, 50, 57, 58, 59, 60, 61, 62, 65
   -- Spain 8, 9, 16, 19, 54, 55, 56, 57, 65
   -- Telefónica Deutschland 8, 16, 19, 24, 44, 45, 46, 47, 48, 49, 50, 51, 63, 65
   -- Telefónica NEXT 51, 65
   -- UK 16, 58, 59, 60, 61, 62, 65
 - Executives
   -- Abasolo, Laura 6
   -- Álvarez-Pallete Lopez, José María 10, 11, 12, 29, 63
   -- Carbajo, Cayetano 24, 45, 48
   -- Cortez, Pedro 16
   -- Dacre, Andrea 16
   -- De Carvajal, Pablo 16
   -- Dowd, Ben 16
   -- Dupuy de Lome Corchado, Enrique 16
   -- Evans, Mark 58
   -- Gallardo Rico, David 16
   -- Gebara, Christian 15
   -- Gil Lizasoain, Elena 32, 40
   -- Gilpérez López, Luis Miguel 16
   -- Haas, Markus 45
   -- Lappoehn, Jens 51
   -- Larder, Paul 16
   -- Lluch, Jaime 19
   -- Lopez Lozano, Maria Victoria 16
   -- Lösing, Alfons 47
   -- Manzanares, Javier 16
   -- Martín-Villa, Gonzalo 21
   -- Mata, Joaquin 19
   -- McMahon, Alastair 16
   -- Navarro, Eduardo 15, 16, 37
   -- Newton, Tom 16
   -- O'Reilly, Brendan 60
   -- Pérez, Pedro Pablo 30
   -- Plumb, David 16
   -- Rupprecht, Alexander 16, 50
   -- Sanchez de Lerin, Ramiro 16
   -- Stewart, Gary 33
   -- Tharntong, Louise 16
   -- Vilá, Ángel 6
 - Ex-executives
   -- Genish, Amos 15
 - Global Resources
   -- Cornerstone Telecommunications Infrastructure 62
   -- Telefónica Business Solutions 26, 63
   -- Telefónica International Wholesale Services 26, 63
   -- Telxius 13, 14
   -- UNICA 12, 24, 25, 41, 63
 - Latin America
   -- Brazil 8, 15, 16, 36, 37, 38, 40
   -- Mexico 8, 14, 40, 41
   -- Vivo 36, 37, 38, 40, 64
 - Movistar+ 55
 - On The Spot 26
 - Products and services
   -- Fusión 55
   -- Movistar+ 55
   -- Movistar Cloud 55
   -- Movistar Play 9
   -- Movistar TV 39
   -- O2 o 47, 59
 - Telefónica Emisiones 12
Telstra 22
Tesco 58
 - Tesco Mobile 58
Tigo 14
Transport for London 59

U

United Internet 65
United Nations 29

V

Verizon Communications 14
Vitroconnect 46, 47
VMware 23, 63
Vodafone Group 8, 25, 45, 47, 48, 57, 62, 65
 - Germany 45, 47, 48
 - Spain 57
 - UK 62

W

Wegow 56
Wireless Infrastructure Group 61

Z

Zhilabs 26
ZTE 50, 53, 62, 65

  • Telefónica already lobbying the incoming Brazilian government for a more investment-friendly environment.

Eduardo Navarro, Chairman & CEO of Telefónica Brasil, expressed hopes that President Jair Bolsonaro’s new government, which came to power in January 2019, will remove barriers for the telecoms sector in Brazil. The telecoms industry is the third-biggest investor in Brazil — behind oil and gas, and energy — and is responsible for about 4% of the country’s gross domestic product.

Speaking at Telefónica|Vivo’s third quarter results presentation, Navarro said he believed that the legislation commonly referred to as PL 79, which has been stalled in congress for three years, will be approved soon. This is designed to overhaul the regulatory framework for telecoms that was set out in 1998. As a fixed-telephony licensee, the company’s consumer division, Telefónica|Vivo, is especially keen to see the bill passed into law as it will allow the operator (and its struggling rival Oi) to divest itself of aspects of its loss-making fixed-line networks and focus instead on high-growth sectors.

The 1998 framework imposed a universal service condition for fixed-telephony access that operators argue is now irrelevant. At the Futurecom event held in Sao Paulo in October 2018, Navarro warned that operators “can’t keep burning money when there is no cash to burn”, highlighting the burden of operating an underused payphone estate in particular.

Updating the regulatory regime is likely to have a big impact on the wider market. For example, China Telecom and China Mobile had both expressed interest in investing in operator Oi, but have been put off by regulatory uncertainty.

Navarro also said that 50% of jobs could be affected by automation and digitisation, and reiterrated calls for a “digital pact” between government, enterprises and society to address urgent issues in public and private transportation, health, education, public security, agriculture and logistics (Telefónicawatch, #130).

Also speaking at Futurecom, the Head of Ericsson Brasil, Eduardo Ricotta, said that, in his opinion, the main bottlenecks for the development of telecoms and connectivity in Brazil are expensive spectrum auctions, slow processing of patents and approvals to deploy infrastructure (particularly antennae). He noted that Ericsson has “over 1,000 manufactured antennas waiting in our factory in Brazil… This has a huge impact not only on the cities’ infrastructure, but also on jobs, business”. He added that these issues were critical with 5G looming.

Image: Wikimedia

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