While Álvarez-Pallete and Alonso presented the front-end of Telefónica’s recent technology breakthroughs, Enrique Blanco, Global Chief Technology and Information Officer, focused on the foundations Telefónica has already built that are expected to facilitate the smooth arrival of 5G-based services across the telco’s infrastructure.

Telefónica spotlighted the latest capabilities of its UNICA virtualised platform through demonstrations of network slicing. The telco integrated a virtual evolved packet core (vEPC) into the platform and loaded it onto four network slices.

The demonstrations were said to show how end-to-end network slicing could be applied to real-world scenarios, and underline the Telefónica belief that infrastructure virtualisation and evolutionary 5G development are fundamentally interrelated.

Telefónica illustrates the diverse capabilities of a single future network

With network slicing, operators are able to isolate logical networks and introduce different, discrete services on a single physical architecture. In its demos, Telefónica focused on the provision of four slices that fulfil the following objectives:

Connectivity using 5G-ready spectrum in the 3.7GHz band. This network slice provided the connectivity needed across the booth demonstrations.

  • Radio access network (RAN) slicing for use with critical communications for the emergency services. This demonstration, drawing on radio access network technology from Netsia, showed how guaranteed isolated spectrum can be made available to emergency services as a public safety requirement. The RAN slicing technology reproduced a private LTE network that can be subdivided for exclusive use by a range of different clients, with specific resource and latency requirements. Telefónica has previously highlighted its work on RAN slicing with Netsia (Telefónicawatch, #122), and said the latest presentation demonstrates effective virtualisation of the RAN.
  • An augmented reality use-case for providing remote assistance in an industrial setting. This demonstration showed the merits of ultra-low latency in enabling a user to manipulate real objects, visible on a local screen with accompanying instructions and guidance provided from a remote location. In addition to underlining the value of the effective absence of latency over a distributed cloud infrastructure, the demonstration also highlighted the splitting of the data and control levels of the network to minimise the level of traffic travelling over the core network. The demonstration was supported by Ericsson, which is providing the vendor-neutral core cloud IT network infrastructure at the foundation of UNICA (Telefónicawatch, passim).
  • A virtual reality (VR) use-case, which saw the creation of virtualised representations of 3D objects (Digital Twins). This demonstration was used to highlight Telefónica’s work with Huawei at Innovation Labs in Madrid, and drew upon the vendor’s E2E suite of 5G solutions, deployed on the UNICA vEPC.

UNICA head in the clouds

  • Telefónica is increasingly conflating its references to virtualisation with ‘cloudification’ to perhaps help join the dots for anyone looking to understand how the adoption of software-defined infrastructure will translate into new services. Notably, the term has been used previously by Telefónica in relation to its strategic alliance with Huawei on 5G network evolution (Telefónicawatch, #115). UNICA is also being referred to as the Telco Cloud as a more immediately accessible moniker.

“ You have to understand that 5G is a cloud network, and cloud means virtualised, and virtualised means that your infrastructure and architecture really support virtualisation.” — Blanco.

  • Not a joiner: Telefónica was notably absent from an industry group considering network slicing industrial applications, including: China Mobile, Deutsche Telekom, Huawei, TIM, and Volkswagen, among others.

New Huawei MoU on E2E

Surprisingly buried in technical details surrounding Huawei Technologies’ demo on Telefónica’s MWC stand, the vendor noted that the two companies have further extended their 5G collaboration with a new Memorandum of Understanding (MoU) on 5G end-to-end (E2E) network architecture, which is to cover additional research on determining architecture and use-cases for E2E capabilities.

The MoU was apparently signed in December 2017, but appears to have gone unremarked upon by both parties, which is not characteristic of their relationship. Meanwhile, towards the end of the conference, Huawei began promotion of its new portfolio of E2E 5G solutions, intended to support the early implementation of 5G services in densely populated areas using an all-cloud architecture.

Image: Telefónica.

Table of Contents

EXECUTIVE BRIEF

GROUP

Management update

FY17: Álvarez-Pallete a man on a mission [p6]

  • Table 1: Telefónica, selected financial data, FY17
  • Opex savings at the heart of digital change
  • Vilá in the field, Abasolo deals in the nitty-gritty

Countries: Europe slow and steady, LatAm picks up pace [p8]

  • Table 2: Telefónica Group, performance by unit, FY17
  • Table 3: Telefónica Hispanoamérica, performance by country, FY17
  • Table 4: Telefónica Group performance against guidance for 2017

Guidance: revenue goal smashed, but caution remains [p11]

  • Telefónica brings along its friends
  • More partners to come

MWC

AURA promising the future, UNICA delivering it [p12]

  • Comment: wannabe killer app rounded up with usual suspects
  • One year on, and AURA is out in the world
  • Telefónica in the game for efficiency and loyalty
  • Telefónica picks up fellow travellers on data ownership drive
  • MWC 2019: Network know thyself

Network slicing presented as latest UNICA breakthrough [p17]

  • Telefónica illustrates the diverse capabilities of a single future network
  • UNICA head in the clouds
  • New Huawei MoU on E2E
  • Table 5: People movement highlights
  • Figure 1: 5G Momentum Index: Telefónica global ecosystem, to February 2018

GLOBAL RESOURCES

5G

Telefónica and Huawei flag 5G-V2X tests for autonomous driving [p21]

  • Pitting 5G vendor against 5G vendor
  • Growing focus on 5G for connected and autonomous cars
  • Telefónica racing Vodafone on V2X progress

O2 promises 5G test bed at the O2 [p23]

  • TIWS heralds virtualisation hubs across global infrastructure

Nokia bolsters Telefónica links with German partnership [p24]

DIGITAL SERVICES

ElevenPaths

ElevenPaths and McAfee partner to secure home routers [p26]

Weve

Weve launches location verification service [p27]

Alliances

Telefónica partners UN’s FAO on agri-commerce [p29]

  • Forecasts and softer skills also to be fostered
  • New notifications solution launched for developers
  • Telefónica backs blockchain research group

LATIN AMERICA

Regional

Huawei brings 4.5G+ to Latin America [p32]

  • 4.5G Evolution promises immediate and longer term benefits
  • Tech City collaboration crosses continents
  • Germany (and China) 1, Spain (and Finland) 0

Telefónica brings content to LatAm OTT play [p33]

  • A potential audience of multiple millions…
  • Viacom and RTVE content to support Telefónica’s bundle strategy
  • Meanwhile, Netflix set to land on Movistar+ in Spain

Brazil

Probe launched into Telefónica’s fine swap agreement [p35]

Colombia

Government’s Coltel exit edges forward [p37]

  • Telefónica takes Colombia to World Bank arbitration
  • Messenger among latest zero-rated apps as AURA reaches Chile

Mexico

Telefónica considers fixed broadband options for Mexico [p38]

  • Opportunity for Telefónica to expand in growing market

EUROPE

Germany

Telefónica teams with Vodafone for fibre backhaul [p41]

  • Serving 5G and the greater good
  • Vodafone picks up short-dated spectrum as part of deal

Mobile Connect to see German launch [p42]

Spain

Orange commits to Telefónica fibre spend [p43]

United Kingdom

Giffgaff to offer loans and financial management app [p44]

O2 to offer digital ID authentication against cyber-threats [p45]

FURTHER READING

INDEX

Index

Symbols

3GPP 23
5G Automotive Association 22
21st Century Fox
– Sky plc 19, 34, 39

A

Advanced 5G Network Infrastructure for Future Internet Public-Private Partnership (5G PPP) 23
AI 12, 30
Allianz SE 42
Alphabet
– Google 12
– – Android 30
Altán Redes 39
Amazon 12, 14
América Móvil 37, 39
– Claro 35
– Telcel 39
– Telmex Internacional (Carso Global Telecom SAB)
– – Teléfonos de México (Telmex) 39
Anatel 35, 36
Anschutz Entertainment Group (AEG) 23
Apple 38
– iOS 30
Asus 43
AT&T 22, 39, 43
– DirecTV 39
Audi 22
Axtel 39

B

Bank of America Corp. 37
BMW 22
BNP Paribas 37

C

CaixaBank 19
Carrier Blockchain Study Group 30
China Mobile 18, 43
China Telecom 43
Cisco Systems, Inc 22
CityFibre 9
Competition and Markets Authority (UK) 44
Correos 44

D

Daimler 22, 42
Deutsche Bank 42
Deutsche Telekom 15, 18, 22, 42, 43
– T-Mobile 43

E

Ericsson 12, 15, 17, 22, 30, 42
– 5G-ConnectedMobility 22
Erste Bank 19
Etisalat 30
European Union
– European Commission 19, 22

F

Facebook 12, 13, 14, 38
– OpenCellular 14
– Telecom Infra Project 14
– WhatsApp 38
Far EasTone 30
Ficosa 15

G

Grupo Clarín 36
Grupo Santander
– Santander 19
GSM Association
– GSMA
– – Mobile Connect 42
GSM Association (GSMA) 42
– Mobile World Congress 6, 12, 42

H

HAND Enterprise Solutions 21
HBO 34
Hewlett Packard Enterprise 43
Huawei 12, 17, 18, 21, 22, 23, 32, 33
– Joint Innovation Lab 21

I

IFT (Mexico) 39
Intel 22, 26
ItsOn Inc 39

J

Juniper Networks 22

K

KT Corporation 30

L

La Liga 8
Lenovo 43
LG 30
LinkedIn 19

M

McAfee 26
Megacable 39
Microsoft 12, 18, 43
MTV 34
MVNOs 44

N

Netflix 33, 34
Netsia 12, 17
Nokia 22, 23, 24, 33, 47
NTT 22

O

O2 Arena 23
Oi SA 35
Omnicom Group, Inc
– Organic 6
Orange 8, 15, 18, 43
Origen Technologies 21

P

Parallel Wireless 14
Payfone 45
PLDT 30

Q

Qualcomm 22, 43

R

RateSetter 44
Regions
– APAC
– – Australia 43
– – China 18, 21, 22, 33, 43
– – Hong Kong 24
– EMEA
– – Europe 6, 7, 8, 19, 22, 26, 33, 40, 44, 45
– – Finland 33
– – France 43
– – Germany 8, 9, 13, 23, 24, 33, 41, 42, 43
– – Ireland 43
– – Spain 6, 8, 9, 14, 19, 22, 24, 26, 27, 29, 30, 33, 34, 36, 42, 43, 44, 45
– – Switzerland 43
– – UK 8, 9, 13, 19, 23, 24, 27, 34, 42, 44, 45
– Latin America 6, 7, 9, 14, 21, 26, 31, 32, 33, 34, 37, 38
– – Argentina 10, 13, 21, 33, 36, 42
– – Brazil 9, 13, 19, 21, 22, 24, 32, 33, 35, 36, 38, 42
– – Central America 29
– – Chile 10, 13, 21, 29, 33, 38, 42
– – Colombia 10, 29, 32, 33, 37, 42
– – Costa Rica 33
– – Ecuador 33, 42
– – El Salvador 29, 33
– – Guatemala 29, 33
– – Mexico 10, 21, 24, 32, 33, 38, 39, 42
– – Nicaragua 29, 33
– – Panama 33
– – Peru 10, 21, 33, 42
– – Uruguay 33, 42
– – Venezuela 11, 19
– North America
– – USA 21, 24, 43, 45
Repsol 19
Royal KPN 15
RTVE 34

S

Samsung 18, 22
SAP 21
SIAE Microelettronica 22
SK Telecom 22
Softbank
– Sprint 30, 43
SoftBank 30
Spotify 38
Sprint Nextel 30, 43
Starbucks 39
Swisscom 43
Swrve 30

T

TBCASoft 30
Technologies
– 2.5G 39
– 3G 39, 42
– – 3.5G 41
– 4G
– – LTE 9, 14, 17, 23, 24, 32, 33, 36, 38, 39, 41, 42, 43
– 5G 9, 12, 15, 17, 18, 21, 22, 23, 24, 32, 33, 41, 47
– Broadband 9, 26, 36, 38, 39
– eSIM 43
– Ethernet 45
– FTTH 36
– GPS 27
– GSM 42
– high definition (HD) 34, 42
– IP 42
– IPTV 9, 33
– LPWA 15, 29
– LTE-A Pro 24, 32, 33
– M2M 32
– MIMO 22, 24, 32
– NB-IoT 29
– OpenStack 21
– R&D 18
– SIM 14, 42, 45
– SMS 45
– TV 9, 14, 34, 36
– UMTS 42
– V2X 21, 23
– VoLTE 42
– VoWi-Fi 42
– Web Services 14
– WLAN
– – Wi-Fi 42, 45
Telecom Argentina 36
Telecom Italia 19, 43
– Telecom Italia Mobile 19, 35
– TIM Brasil 19
Telefónica Group 6, 9, 11, 19, 21, 22, 23, 26, 29, 30, 33
– Associates and investments
– – Telecom Italia 19, 43
– Digital services
– – AURA 7, 12, 13, 14, 15, 38
– – Axonix 27
– – ElevenPaths 14, 26
– – Go Ignite 18
– – Innovación Alpha 27
– – LUCA 15, 19
– – M2M 32
– – Open Future 18, 26, 27
– – OTT 33, 34, 39
– – Statiq 27
– – Talentum 30
– – Telefónica I+D 27, 29, 34
– – Wayra 29
– – Weve 27
– Directors
– – Guad Solé, Jordi 19
– Europe
– – E-Plus 8
– – Germany 26, 42, 47
– – giffgaff 19, 44
– – Giffgaff 44
– – O2 6, 9, 13, 14, 19, 23, 26, 27, 42, 44, 45
– – Spain 22, 26, 33, 43, 44, 45
– – Telefónica Deutschland 8, 24, 32, 33, 41, 42
– – UK 6, 9, 12, 14, 19, 23, 27, 44, 45
– Executives
Abasolo, Laura 7
– – Alierta, César 7
– – Alonso, Chema 12
– – Álvarez-Pallete Lopez, José María 6, 7, 9, 10, 12, 13, 14, 15, 17
– – Barclay, Danny 45
– – Blanco, Enrique 17, 21
– – Casas, Jose Luis 19
– – Caton, David 19
– – Corral, Domingo 33
– – Evans, Mark 12, 14
– – García, Juan Carlos 32
– – Gebara, Christian 12
– – Haas, Markus 41
– – Laurita, Daniela 19
– – Pérez, Pedro Pablo 26
– – Rodríguez Zarco, José Luis 19
– – Sadler, Julie 19
– – Sinclair, Tom 19
– – Vilá, Ángel 7
– Ex-executives
– – Escrig, Miguel 19
– – Gentil, Bruno 19
– Global Resources
– – Telefónica Business Solutions 42
– – Telefónica International Wholesale Services 24
– – Telxius 22
– – UNICA 12, 15, 17, 18
– Latin America 34
– – Brazil 9, 12, 19, 22, 35, 36, 38
– – Chile 29, 38
– – Colombia 37
– – Mexico 38, 39
– – Vivo 13, 22
– Movistar+ 14, 18, 33, 34
– Products and services
– – Movistar+ 14, 18, 33, 34
– – Movistar Play 33, 34
– – Movistar Series 33, 34
– – netzclub 42
– – O2 Priority 14
– – pay-TV 8, 9, 14, 33, 34, 36
– Telefónica Educación Digital 27
Televisa 39
Telstra 43
Twitter 38

U

United Nations 29
– Food and Agriculture Organization 29

V

Verimi 42
Verizon Communications 43
Viacom 33, 34
Vodafone Group 8, 9, 22, 23, 41, 42, 43, 44
– Germany 41, 42
– Spain 43, 44
– UK 9
Volkswagen Group 18, 22
– SEAT 15

W

World Bank 37
– ICSID 37
– International Center for the Settlement of Investment Disputes (ICSID) 37
– International Centre for Settlement of Investment Disputes 37

Z

ZTE 22

About

About Telefónicawatch

Report: #124
Published: February 2018
Next report: March 2018
For more information visit: Telefónicawatch