Telefónicawatch – release #135

Jun 11, 2019

Featured insight:
Q1 FY19

  • Telefónica started the financial year with strong headline numbers, although the top line was flattered by accounting changes and one‑off boosts.
  • The Group still needs tuning as profit margins stutter, but is growing into the modern digital communications company envisaged by CEO Álvarez‑Pallete.
  • Buried in the results was an announcement that 10Gbps fibre is on the way in Spain and Brazil, with small‑scale commercial deployments to come in 2019.

Subscribers can get the full analysis and much more in May’s release of Telefónicawatch – click to get access.

Image: Telefónica

 


Telefónicawatch
This release
: #135
May 2019: 60pp
Releases/year: 10+
Click for more details of this release

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

Telefónicawatch #135 top stories:

Benjamins on AI ethics and data development

Telefónica’s AI ambassador outlined how AI is creating new digital business models for the telco at FutureNet World in London. Read more…

Telefónica launches IoT Cybersecurity Unit with Subex

Telefónica aiming to build cybersecurity into the foundations of its product portfolio with support of long-term partner Subex. Read more…

Telefónica Empresas lands BRL 500m state contract

Five-year state government deal sees SD-WAN and security technology bundled with more basic MPLS connectivity. Read more…

IBM and Telefónica collaborate on automation

Telefónica Colombia to deploy IBM technology to generate operational savings through greater automation. Read more…

Telefónica demos potential of IP Fusión upgrade

Photonic mesh infrastructure development will enable faster transmissions over longer distances with support from Huawei and EXFO. Read more…

Featured insight:
Highlights from Telefónicawatch #135

Also featured in the May release of Telefónicawatch: 

  • Amdocs again demonstrated its close relationship with Telefónica in Latin American markets with a new contract covering Argentina and Chile.
  • In Peru, Tecnotree is providing a middleware and service delivery platform to the telco, while in Spain, Telefónica awarded Fortumo a contract to provide integration of billing for several high‑profile subscription services.
  • Identity solutions provider IDEMIA is providing digital-signature and facial-recognition technology to support in-store customer verification for Movistar Chile.

Telefónicawatch subscribers can get the full insight into these stories, plus much more, in May’s release – click to get access.

Image: ROBIN WORRALL / Unsplash

 

Also within Telefónicawatch #135

64 pages of perspectives on Telefónica’s key people, deals and strategy that you can’t get anywhere else…

  • 28 people movements uncovered, including a restructuring of Telefónica’s legal division with Antonio García-Mon appointed as the Group’s new Director of Corporate Legal Advice.
  • 15 deals analysed, including the renewal of maintenance partner Ezentis’ contracts with LatAm OpCos.
  • 42 vendors featured, including Subex, Idemia, and Tecnotree.

…and much more! Click to get access to May’s release of Telefónicawatch.

 

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Telefónicawatch

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WHAT'S INSIDE the FULL REPORTS? Insider information and analysis that you will not find anywhere else, including:

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  • Deals and trends.
  • Industry and analyst events/activity.

"Great overview of what is happening across the different areas of the company" - Commercial Lead, Telefónica

CRITICAL AREAS of focus include:

  • Challenges/Opportunities.
  • Disruption and change.
  • Strategy and objectives.
  • Contracts and deals.
  • Innovation.
  • OPEX/capex.
  • Technology developments.

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