As regulatory obstacles to quad-play recede in Argentina, Telefónica made IPO moves to help fund diversification into pay-TV.

Telefónica was reportedly preparing a listing of its Argentinian business on the Buenos Aires stock exchange as it prepares to enter the pay-TV market and reduce debt. A shareholder meeting, to vote on the listing, is slated for 16 April 2018.

Proceeds from the initial public offering (IPO), should it get the green light from shareholders, will help fund Telefónica Argentina’s push into quad-play, now that regulatory obstacles appear to be falling by the wayside.

In January 2018, Telefónica Argentina was given the go-ahead to provide pay-TV services in Buenos Aires, Córdoba, and Rosario from January 2018, after local communications regulator ENACOM published preliminary limited permission for several operators to offer quad-play services in the country (Telefónicawatch, #123). Operators are able to offer nationwide quad-play from 1 January 2019.

From 3 April 2018, as part of a marketing push on converged services, Telefónica Argentina said its three local commercial operations — Telefónica, Speedy, and Movistar — will be unified under the Movistar brand.

  • In March 2017, Telefónica announced plans to increase its investment in Argentina to establish a new fixed-line fibre-optic network for high-speed broadband and pay-TV services, with an investment of ARS 38bn (EUR2.3bn) between 2017 and 2019, up from the ARS 36bn originally slated for the 2016-2018 period.
  • An IPO, should it be successful, would give the Group a welcome buffer against threats to its net-debt reduction strategy if Telefónica Argentina is to compete seriously against rivals offering quadruple-play (bundles of broadband, mobile, TV, and telephone services). While Group net debt is arguably not the great market concern it once was, given the recent partial sale of infrastructure subsidiary Telxius (plus expectations of a Telefónica UK listing), it is still sizeable. As of 31 December 2017, it stood at EUR44bn, which equated to a ratio of net debt to operating income before depreciation and amortisation (OIBDA) of 2.66 — well off the 2.35 target (Telefónicawatch, #116).

Image: Heather Emond / Unsplash.

Table of Contents

EXECUTIVE BRIEF

GROUP

Operations

Telefónica gets house in order through streamlining [p6]

  • Management changes put new hands on purse-strings
  • Table 1: People movement highlights

GLOBAL RESOURCES

5G

Parallel and TIP support Telefónica open RAN trials [p9]

  • Facebook has a friend in Telefónica
  • Multi-pronged approach as Telefónica tests virtualisation’s open potential

Telefónica gives another nod to Cohere’s OTFS tech [p11]

  • Testing, testing, testing

Alliances

Unicom and Telefónica revive partnership for IoT [p12]

  • Unicom a good fit with IoT Alliance partners

Suppliers

Telefónica signs ten-year ESaaS deal with Vertiv [p14]

  • Casa reminds market of Telefónica deal

Telefónica Business Solutions

Huawei backs Telefónica big data for enterprise [p15]

  • Bosch Security using Telefónica M2M Global SIM solution

Azure added to Telefónica’s cloud portfolio [p16]

  • Azure a key platform for Telefónica

Telxius

Telxius to speed expansion of Sigfox network in Germany [p17]

  • Telxius agreement a chance for Sigfox to prove its value in Europe
  • Telefónica leading TIP energy group

Virtualisation

Telefónica backs ‘gold standard’ ONF plan [p18]

  • Get production-ready
  • OSM moves

DIGITAL SERVICES

Big data

Telefónica focused on social benefits of big data [p21]

Open Future

Telefónica invests in personal data management blockchain startup [p22]

Wayra

Wayra and VW on the road again [p23]

  • More emerging ideas to receive a jumpstart

LATIN AMERICA

Argentina

Telefónica preps Argentina IPO to fund quad-play [p26]

  • More skirmishes erupt on Telefónica’s fine swap agreement

Brazil

Vivo puts pedal to metal in fibre drive [p27]

  • Fibre life a bowl of cherries
  • Spanish lessons
  • Brazil remains a big spender
  • Digital dividend to accompany fibre expansion
  • Digitalisation already underway
  • Telefónica exudes confidence in itself, and in the country

EUROPE

Germany

O2 Germany strengthens 5G alliance with Huawei [p32]

  • Faster links and 5G kit
  • TechCity influence goes global

O2 Germany supporting 5G testing for FeMBMS

  • More vendors in the mix with additional city projects

O2 Germany picks Gemalto for prepaid ID [p34]

Could Telefónica be mulling a German exit? [p35]

  • Factors to consider
  • O2 the big spender in UK auction
  • Table 2: UK 2.3GHz and 3.4GHz spectrum auction results, April 2017

UK

O2 extends contract with Jacada [p37]

  • Preparations underway for a 2019 700MHz auction

Telefónica UK confirms P.I. Works SON deployment [p38]

  • Years of work paying off for P.I. Works

O2 UK builds up 5G momentum [p39]

FURTHER READING

INDEX

Index

A

AI 23
Amazon 16, 21
América Móvil 26, 30
– Claro 26, 30
Anatel 28
Arsat 26
AT&T 10, 18, 19

B

Bharti Airtel 21
Bosch 16
– Bosch Security Systems 16
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) 36

C

Casa Systems 15
Cellwize 38
China Mobile 10, 15
Cisco Systems, Inc 12, 39
Climate Group 14
CNMC 36
Cohere Technologies 11
Comcast 19

D

Deutsche Post 34
Deutsche Telekom 10, 19, 29, 35
– T-Systems 29
Drillisch 36
– Yourfone 36

E

Emerson 14
ENACOM 26
Ericsson 33, 39
European Telecommunications Standards Institute (ETSI) 19

F

Facebook 9, 10, 18, 21
– OpenCellular 10
– – Telecom Infra Project 10
Federal Network Agency 36

G

Gemalto 34
Giesecke & Devrient 12
Grupo Clarín
– Cablevisión 26
GSM Association (GSMA) 21
– Mobile World Congress 11, 15, 21, 22, 32, 35

H

Huawei 11, 12, 15, 23, 29, 32, 33, 36

J

Jacada 37
Juniper Research 39

K

Kathrein 33
KDDI Group 21

L

Liberty Global 36
– Virgin Media 7

M

MegaFon 21
Microsoft 16
– Office 365 16

N

National Health Service (UK) 39
Nokia 11, 33, 36, 39
Nominet 39
NTT 10, 12, 19, 21

O

O2 Arena 33, 39
Ofcom (UK) 38, 39
Open Networking Foundation 18
Orange 10
OT-Morpho 34
Oxbotica 39
Oxfordshire County Council 39

P

Parallel Wireless 9
P.I. Works 38

R

Regions
– APAC
– China 10, 12, 15, 19
– EMEA
– Europe 7, 10, 12, 14, 15, 17, 19, 31, 38
– Germany 7, 16, 17, 23, 32, 33, 34, 35, 36
– Spain 6, 12, 15, 16, 19, 21, 23, 27, 29, 32, 33, 35, 36, 39
– UK 6, 7, 37, 38, 39
– Latin America 7, 9, 12, 15, 17, 18, 21, 25, 29, 32, 38
– Argentina 15, 16, 26, 29
– Brazil 16, 21, 27, 28, 29, 30, 32
– Chile 15, 16, 21, 29
– Colombia 21, 32
– Costa Rica 30
– Ecuador 29
– Mexico 29, 32
– Peru 9, 10, 29
– North America
– USA 14, 29
Rohde & Schwarz 33
Royal KPN 12, 36

S

Sigfox 17
Softbank
– Sprint 15
SoftBank 21
Sprint Nextel 15
Sutel (Costa Rica) 30

T

Technologies
– 3G 9
– 3.5G 32
– 4G
– LTE 9, 10, 11, 15, 17, 26, 30, 32, 39
– LTE-A 30
– 5G 9, 11, 19, 32, 33, 36, 39
– – ADSL 36
– – Broadband 15, 19, 26, 28, 36, 39
– – eSIM 34
– – GSM 21
– – ICT 33
– – Internet of Things 12, 16, 21
– – IP 10
– – IPTV 30
– – LPWA 17
– – LTE-A Pro 30, 32
– – M2M 12, 16, 17, 34
– – MIMO 32
– – NB-IoT 17
– – Network functions virtualisation (NFV) 18
– – OpenStack 15, 29
– – SIM 12, 16, 21, 34
– – Smart City 7
– – Software defined networking (SDN) 18, 19
– – TV 26, 33
– – V2X 32
– – VPN 15
– – Web Services 16, 21
– – WLAN
– Wi-Fi 9
Telecom Argentina 26
Telefónica Group 6, 7, 14, 16, 18, 19, 21, 22, 29, 32, 34, 35, 38, 39
– Associates and investments
– China Unicom 12, 19
– Sigfox 17
– Digital services
– AURA 10, 21
– Dynamic Insights 7
– ElevenPaths 16, 21
– Global Video Unit 7
– M2M 12, 16, 17
– Open Future 22
– Smart Center 16
– Synergic Partners 16
– Telefónica I+D 9
– Wayra 23
– Europe
– Acens Technologies 6
– E-Plus 35, 36, 38
– Germany 17, 23, 32, 33, 34, 35, 36
– O2 7, 32, 33, 34, 35, 36, 37, 38, 39
– Spain 7, 15, 36
– Telefónica Deutschland 7, 32, 33, 34, 35, 36, 38
– UK 7, 37, 38, 39
– Executives
– Abou-Alam, Tamer 7
– Bertram, Jo 7
– Carbajo, Cayetano 32
– Caro Bernat, Juan Manuel 14
– Dowd, Ben 7
– Evans, Mark 7, 39
– Goncharov, Boris 7
– Haas, Markus 35
– Ibarra Pichardo, Alejandro Alberto 7
– Kern, Christian 7
– Kickartz, Manfred 17
– Martín-Villa, Gonzalo 22
– McManus, Derek 39
– Montero Garcia, Ignacio 7
– Muñoz, Vicente 21
– Plumb, David 7
– Sweeney, David 7
– Turpin, Gareth 7
– Zaragoza, Gemma 7
– Global Resources
– 5TONIC 11, 33
– Telefónica Business Solutions 15, 16
– Telefónica International Wholesale Services 6
– Telxius 17, 26
– Telyco 6
– UNICA 19
– Latin America
– Brazil 27, 28, 29
– Vivo 27
– Products and services
– Living Cloud 16
– pay-TV 26
– SealSign 16
– Speedy (Latinoamérica) 26
Telenor 12, 21
Telstra 12
Transport for London 39
Transport Research Laboratory 39
Turkcell 21
Turk Telekom 19

U

United Internet 36
United Nations 21
– Food and Agriculture Organization 21

V

Vertiv 14
Virgin Group 7
Vodafone Group 7, 10, 35, 36
– Germany 35
Volkswagen Group 23

W

Warburg Pincus & Co. 36
Wibson 22

X

XL Catlin 39

Z

ZTE 11, 33

About

About Telefónicawatch

Report: #125
Published: March 2018
Next report: April 2018
For more information visit: Telefónicawatch