Telefónicawatch
This release
: #135
May 2019: 60pp
Releases/year: 10+
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EXECUTIVE BRIEF

GROUP

Management Update [p.6]

  • Telefónica progress continues, with a little turbulence
  • Table: Telefónica, selected financial data, Q1 FY19

Corporate Responsibility [p.8]

  • Financial highlights: margins suffer, but efficiency improvements anticipated
  • Region by region: European strength and Latin America recovery
  • Table: Telefónica Group, performance by unit, Q1 FY19
  • Operational developments: 10G fibre and the value of bundling

Acquisitions & Disposals: Data centre sale raises EUR550m [p.11]

  • Table: Telefónica's offloaded data centre locations

People [p.13]

  • Table: People movements

GLOBAL RESOURCES

Suppliers: Telefónica extends work with Amdocs in LatAm [p.16]

Telefónica Empresas: Telefónica wins IoT connectivity deal with Schindler [p.17]

  • Empresas push into Spanish health services [p.18]

DIGITAL SERVICES

AI: Benjamins on Telefónica's AI ethics and data development [p.20]

  • Transferable skills proving an AI challenge
  • Internal uses and external business cases
  • Social applications could be big business
  • Guarding against misuse of AI, from the start

Cybersecurity: Telefónica launches IoT Cybersecurity Unit with Subex [p.26]

  • Subex watching out for traffic

WAYRA [p.28]

  • Table: Round-up of Wayra investments' recent activity

LATIN AMERICA

Brazil [p.31]

  • Empresas lands BRL 500m state contract
  • Ezentis renews contract with Telefónica|Vivo

Chile [p.34]

  • Idemia awarded verification contract

Colombia [p.35]

  • IBM and Telefónica collaborate on automation
  • Movistar Ads reaches Colombia

Peru [p.38]

  • Tecnotree beds down in Peru

EUROPE

Germany: O2 to help Vodafone take Liberty with wholesale deal [p.41]

  • Arrangement to boost O2 firepower, but is not unfettered
  • DT unhappy with plans, Liberty delighted

O2 goes OTT for TV, again [p.43]

  • Second coming of O2 TV

Spain: Telefónica demos potential of IP Fusión upgrade [p.46]

  • Huawei in the mesh

Movistar intensifies premium approach [p.47]

  • Broadening the television base
  • Chasing unicorns

UK: O2 addresses patchy coverage with WIG [p.50]

  • Relationship non-exclusive

Ofcom imposes more openness on O2 and industry [p.52]

O2 UK targets health sector contracts with new tariffs [p.53]

5G [p.54]

  • O2's 5G network to support autonomous vehicle testing
  • Table: AutoAir partners, May 2019

FURTHER READING

INDEX

SYMBOLS

21st Century Fox

 - Sky plc 10, 44

A

Accenture 28

Aena 13

AI 20, 21, 23, 24, 25, 28, 55

Airspan Networks 54

Alcatel-Lucent 46

Allianz SE 57

Alphabet

 - Google 25, 43, 49

Amazon 14, 43, 49

 - Amazon Web Services 14

Amdocs 16, 55

América Móvil 38

Anschutz Entertainment Group (AEG) 28

 - O2 Arena 28

Apple 37

Arqiva 51

Asavie Technologies 53

Asterion Industrial Partners 11, 55

Atkins Engineering 54

AT&T 25

B

Blu Wireless 54

BMW 28

BT Group 10

Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (Federal Network Agency for Electricity, Gas, Telecommunications, Postal Service and Railways, BNA/BNetzA/RegTP, Germany) 45

Burda 44

C

Celestia Technologies 54

Check Point 39, 53

CNMC 49

D

Dell Technologies

 - RSA 39

 - VMware 18, 39, 53

Deutsche Telekom 25, 41, 42, 57

Diageo 28

E

EA 49

Ericsson 32, 49

EsalqTec 32

European Union 23, 41, 43

 - European Commission 41, 42

Exaring AG 44

 - Waipu.tv 43, 44

ExCel Arena 51

EXFO 46

Ezentis 33

F

Forrester 24

Fortinet 39

Fortumo 49, 57

Futura Networks 13

G

Gameloft 49

Grupo Ezentis 33

Grupo Santander

 - Santander 28

H

HBO 32

HM Hospitales 18

Huawei 46, 49, 51

I

IBM 35, 39, 53, 56

IDEMIA 34, 56

innogy SE 28

Intragov (Brazil) 31

Ixia 39

J

JD.com 12

K

KPMG 35

L

Liberty Global 41, 42, 57

 - Virgin Media 10

Liverpool FC 51

M

McLaren Applied Technologies 54

Microsoft 25

N

National Health Service (UK) 53

Nokia 49

O

Ofcom (UK) 51, 52, 57

Omnicom Group, Inc

 - Organic 7, 8

Oracle 28

Orange 25

Osiptel 39

OT-Morpho (now IDEMIA) 34

Oxbotica 54

Q

Quirónsalud Group 18

Quortus 54

R

Radware 18

Raízen 32

Ranking Digital Rights 25

Rappi 37, 56

Regions

 - APAC

  --  China 12, 55

 - EMEA

  --  Europe 7, 9, 14, 18, 23, 24, 27, 29, 34, 40, 41, 42, 43, 48, 51, 57

  --  Germany 8, 9, 28, 41, 42, 44, 45, 57

  --  Ireland 14

  --  Portugal 14

  --  Spain 7, 8, 9, 10, 12, 18, 22, 25, 28, 33, 39, 46, 47, 48, 49, 57

  --  Switzerland 17

  --  UK 6, 8, 9, 10, 14, 28, 50, 51, 52, 53, 54, 57

 - Latin America 7, 8, 9, 13, 16, 27, 29, 30, 33, 34, 37, 38, 56

  --  Argentina 9, 12, 13, 16, 33, 55, 56

  --  Brazil 7, 8, 9, 10, 12, 28, 29, 31, 32, 33, 38, 39, 56

  --  Central America 9

  --  Chile 9, 12, 16, 33, 34, 37, 55, 56

  --  Colombia 9, 28, 33, 35, 36, 37, 56

  --  Ecuador 9

  --  Guatemala 9

  --  Mexico 9, 12, 21, 28, 33, 36, 39, 56

  --  Peru 9, 12, 14, 28, 33, 38, 39, 56

  --  Uruguay 9

  --  Venezuela 9

 - North America

  --  Canada 14

  --  USA 12, 32

   ---   SEC 32, 56

Royal KPN 12

S

Samsung 32

SAP 28

ScaleUp Hub 28

Schindler 17, 55

Sodexo 13

Spotify 49

Subex Ltd 26, 27

Symantec 39

T

Technologies

 - 3G

  --  3.5G 51

 - 4G

  --  LTE 9, 32, 33, 45, 56, 57

 - 5G 9, 10, 45, 46, 49, 51, 54, 57

 - ADSL 49

 - AI 20, 21, 23, 24, 25, 28, 55

 - Augmented reality (AR) 49

 - Broadband 9, 37, 41, 42, 43, 45, 47, 49, 57

 - Business/Operations Support Systems (BSS/OSS) 26, 38

 - Cloud computing 14

 - eSIM 34, 45

 - high definition (HD) 54

 - ICT 31

 - Internet of Things 14, 17, 26, 28, 29, 32, 55

 - IP 46

 - IPTV 10, 44

 - LPWA 33

 - M2M 33, 34, 45, 56

 - MPLS 31

 - NB-IoT 32, 33

 - NGN 51

 - SIM 34, 45, 53

 - Smart City 22

 - SMS 32, 36

 - TV 22, 43, 48, 57

 - WLAN

 - Wi-Fi 28, 36

Tecnotree 38, 56

Telefónica Group 6, 7, 9, 10, 11, 12, 16, 18, 20, 24, 25, 27, 28, 29, 33, 51

 - Associates and investments

  --  China Unicom 12, 55

 - Digital services

  --  AURA 25

  --  ElevenPaths 26, 27, 39

  --  Health 53, 57

  --  LUCA 12, 20, 22, 24, 29, 36

  --  M2M 33, 34, 45, 56

  --  Mobile commerce 49

  --  Open Future 13

  --  OTT 28, 43, 44, 47, 48

  --  Smart Steps 12, 22

  --  Wayra 14, 28

 - Europe

  --  E-Plus 12

  --  Germany 10, 41, 42, 43, 45, 57

  --  giffgaff 14

  --  O2 9, 10, 14, 28, 41, 42, 43, 44, 45, 50, 51, 52, 53, 54, 57

  --  Spain 9, 10, 46, 47, 48, 49, 57

  --  Telefónica Deutschland 9, 12, 14, 41, 43, 45, 57

  --  UK 9, 14, 28, 50, 51, 52, 53, 54

 - Executives

  --  Abasolo, Laura 8

  --  Alonso, Chema 24

  --  Álvarez-Pallete Lopez, José María 7, 25

  --  Bartz, Mateus 13

  --  Bendito García, Yolanda 13

  --  Benjamins, Richard 20

  --  Blanco, Enrique 16

  --  Carrillo, Alberto 13

  --  García-Mon, Antonio 13

  --  Gayo, Emilio 48

  --  Gil Lizasoain, Elena 24

  --  González, Mauricio 14

  --  Grottoli, Rafael 13

  --  Hill, Gary 14

  --  Juménez Larraz, Manuel 13

  --  Keller, Markus 14

  --  Luz Medrano, María 13

  --  Medici, Luiz 13

  --  Mooney, Ben 14

  --  Navarro, Eduardo 29

  --  O'Connor, James 14

  --  Pérez, Pedro Pablo 27

  --  Remy, Stephane 14

  --  Ruperez, Ignacio 13

  --  Serrao, Walter 13

  --  Sousa, Valter 14

  --  Thurand, Marcus 45

  --  Tonkin, Hamish 14

  --  Vilá, Ángel 48

 - Ex-executives

  --  Sanfelice, Ricardo 13

  - Fundación Telefónica 13

 - Global Resources

  --  Telefónica Business Solutions 17

  --  Telefónica Empresas 8, 17, 18, 55

  --  Telxius 9, 18, 55

 - Latin America

  --  Brazil 13, 28, 32, 33, 38, 39, 56

  --  Chile 37, 56

  --  Colombia 36, 37

  --  Mexico 14, 21, 39

  --  Peru 56

  --  Vivo 13, 31, 32, 56

 - Products and services

  --  Fusión 46, 47

  --  Movistar Series 48

  --  O2 Health 53, 57

  --  O2 TV 43, 44, 57

  --  pay-TV 9, 10, 41, 42, 43, 47, 48, 52

  --  Telefónica Educación Digital 13

Tesco 14

 - Tesco Mobile 14

TheVentureCity 28

Thomson 28

U

United Nations 29

Unitymedia 41

University of Surrey 54

 - 5G Innovation Centre 54

V

Ver.di 45

Verizon Communications 25

Vodafone Group 14, 25, 41, 42, 49, 54, 57

W

Wireless Infrastructure Group 50, 57

World Bank 23

  • Telefónica is aiming to build cybersecurity into the foundations of its product portfolio, and new links with long-term partner Subex are expected to enable network-based security for the simplest IoT devices.

Telefónica launched an Internet of Things (IoT) Cybersecurity Unit, combining its capabilities in both the cybersecurity and IoT sectors. As part of the initiative, Telefónica has also extended its collaboration with Subex, a business and operations support systems solutions (BSS/OSS) provider, via its ElevenPaths cybersecurity arm.

The new unit, which is to leverage Telefónica’s existing network infrastructure and its Kite IoT connectivity platform, is expected to develop new IoT solutions with cybersecurity capability built-in within their foundations. The IoT Cybersecurity Unit will also offer management of secure credentials for devices and domain name system security.

It will also adapt and expand the telco’s existing catalogue of security offerings to meet the requirements of the IoT sector, where devices and connected objects may not have the capacity to load software-based security solutions. The customisation of offerings, including SandaS, the telco’s risk management and regulatory compliance solution, and the CyberThreats early detection service, were flagged. The collaboration with Subex is also expected to focus on meeting the challenge of securing access to basic, vulnerable IoT endpoints.

The managed connectivity Kite platform is described as a foundational component of Telefónica’s IoT portfolio, and oversees and operates management functionalities such as inventory, real-time expenses control, alarms, automatic business rules and reporting. It also enables remote management of devices, while offering links across the main public cloud platforms used by customers.

Subex watching out for traffic

Telefónica already offers the Telefónica Fraud Management-as-a-Service Powered by Subex to monitor and respond to a wide range of digital risks and threats (Telefónicawatch, #119), and the latest announcement will see the collaboration extended to analysis of data traffic generated by IoT devices and detection of specific threats in this area.

Subex’s IoT-specific platform is said to be capable of analysing traffic by applying machine learning algorithms and generating alerts when threats to IoT devices are detected over the network, rather than on the device itself.

“We are seeing the emergence of a culture around security that is sensitive to processes, strategies, and methods designed to minimise risks while increasing value. This collaboration with Subex represents a step forward in our strategy of helping companies protect their investments, assets, and credibility. ” — Pedro Pablo Pérez, Chief Executive of ElevenPaths and Vice-President of Global Security at Telefónica Group.

Telefónica has a long-running relationship with India-based Subex, with operating businesses in both Europe and Latin America working with the vendor over the past decade on a rage of fraud management and revenue assurance projects (Telefónicawatch, #2010.04, #55, #110, #119).

The Telefónica Fraud Management-as-a-Service Powered by Subex offering provides tools to monitor and respond to a wide range of digital risks and threats, such as subscription fraud, internal fraud, premium rate service fraud, and international revenue share fraud, for Telefónica’s corporate and carrier customers. The solution also features Subex’s Revenue Operations Centre (ROC) fraud management technology, which has also been deployed internally by several Telefónica operating businesses.

Image: xresch / Pixabay

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