Netflix and Telefónica’s CEOs José María Álvarez Pallete and Reed Hastings took the spotlight with a (fun, if cheesy!) Twitter video to herald a partnership that will see the OTT service integrated into the telco’s pay TV service, while behind the scenes vendors, led by Ericsson, have been setting the stage to enable the stars to share top-billing and make a splash on the Latin American small screen.

  • Ericsson extends a long-running partnership as it tries to sell a majority stake in its video platform business.
  • ContentWise appears to be benefiting from a go-to-market agreement with Ericsson in securing a deal with Telefónica.
  • Nice People At Work highlighted for work done on addressing fundamental challenge of maintaining both IPTV and OTT services across Latin America.

During the NAB Show event, orchestrated by the USA’s National Association of Broadcasters, several Telefónica pay-TV partners highlighted new or renewed contracts with the Group, with a particular focus on the evolution of the IPTV-based business in Latin America.

Ericsson, which has previously been identified as playing a key part in the delivery of Telefónica’s TV platform (Telefónicawatch, #71, #75, and #83), trumpeted a new three-year deal that extends an existing collaboration of more than ten years.

Under the terms of the new deal, Ericsson’s Media Solutions unit will deploy its video storage and processing platform (VSPP) in 13 Telefónica Latin American markets, initially in Argentina, Brazil, Chile, and Colombia by end-2018. The platform has already been deployed in Peru, and Ericsson noted that Telefónica has also implemented its media solutions in Spain. The VSPP will then be implemented in a further eight markets — presumably Costa Rica, Ecuador, El Salvador, Guatemala, Nicaragua, Panama, Uruguay, and Venezuela — by end-2020.

Ericsson said the platform will support launch of enhanced TV services, such as seven-day catch-up and time-shift services, across the region. According to Angel Ruiz, Head of Ericsson Media Solutions, the deployment will enable Telefónica to “transform its service delivery by virtualising the storage and processing capabilities of its servers, ensuring that catch-up and VoD [video-on-demand] services are delivered reliably, seamlessly, and quickly to subscribers all over Latin America”.

  • Ericsson recently announced a plan to sell a 51% stake in its Media Solutions unit to One Equity Partners, a private equity firm that specialises in media and telecoms investments. Ericsson will retain the other 49% stake, and Ruiz will become Chief Executive of the new, independent video technology company. The transaction is expected to close in the third quarter of 2018.

Smaller video technology providers get a look-in

Meanwhile, Telefónica is also partnering with ContentWise, which provides a user experience (UX) solution for pay-TV, broadcast, over-the-top (OTT), and streaming operators; and NPAW, a video business intelligence and predictive analytics specialist, across its Latin American pay-TV markets.

ContentWise said its solution is being integrated with Telefónica’s multiscreen VoD, live TV, and catch-up TV services in twelve markets across the region, providing personalised recommendations, intelligent search, and content selections based on a viewer’s profile and preferences.

  • Although Ericsson was not mentioned in the release, it is worth noting that ContentWise and Ericsson have previously signed a go-to-market cooperation agreement to integrate ContentWise recommendations into Ericsson products. Specifically, the solution was said to have been pre-integrated with Ericsson’s Mediaroom IPTV platform, as well as with Mediaroom Reach (a multiscreen platform developed by Azuki Systems and acquired by Ericsson in 2014), and the Ericsson multiscreen management platform.

For its part, Nice People At Work (NPAW) is developing a tailored solution to monitor Telefónica’s IPTV (managed) and OTT (unmanaged) networks in Latin America, building on its existing Youbora analytics technology for OTT providers. Youbora collects data such as number of plays, errors, package loss, device activity, and device certification from IPTV and OTT platforms, to provide operators with an overview of their platforms’ performance and audience behaviour. The two companies began working on the joint project in Brazil during 2017, and now plan to extend it to other countries in the region in 2018.

“ Trying to monitor TV service through unmanaged and managed networks is what kept us up at night. After building the infrastructure to collect data from IPTVs and set-top box management, we move a step forward. Now we can not only identify issues, their root causes, but also customer service and technical teams are [proactively] using real-time insights to manage TV service. ” — Javier Izquierdo, Global Director of Video Operations, Telefónica.

  • As part of its ongoing overhaul of its global video platform Telefónica recently flagged a collaboration with software developer Wyplay that saw it adopt the vendor’s Frog Source open source solution to underpin the set-top box for the operator’s IPTV service (Telefónicawatch, #113 and #123). Meanwhile ARRIS has begun to supply set-top boxes for Telefónica’s platform (Telefónicawatch, #110), and internet technology vendor Nagra is taking a role in the delivery of middleware, with a focus on Latin American markets (Telefónicawatch, #123).

Pay-TV: Latin America in focus

  • In the first quarter of 2018, Telefónica reported that total pay-TV accesses increased by 5% to 8.6 million compared to the previous year, primarily due to the 18% rise in IPTV subscriptions. Subscriptions in Brazil are declining, although this is a result of the shift in focus away from cable and satellite services towards IPTV offerings, with the latter beginning to gain significant traction.
  • In Latin America, Telefónica operates its pay-TV services under the Vivo TV and Vivo Play brands in Brazil; and the Movistar TV and Movistar Play brands in Argentina, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Nicaragua, Panama, Peru, Uruguay, and Venezuela.

Image: Ericsson.

Contents

EXECUTIVE BRIEF

GROUP

Management up-date

Q1 FY18: solid start as Vilá gets house in order [p6]

  • Angel Vilá: Moving from CFO to COO in Álvarez-Palette’s shadow
  • Table 1: Telefónica, selected financial data, Q1 FY18
  • Financial performance: strength at the core
  • Operational highlights: open to new partnerships and new ideas
  • Table 2: Telefónica Group, performance by unit, Q1 FY18

Operations

Telefónica reflects on centralised IT challenges [p10]

  • SAP rising as Telefónica turns to partners
  • Culture clashes an unexpected consequences
  • A centralised system, but with local autonomy
  • Mobility and gold stars welcomed by employees
  • No time to bask in job done
  • Table 3: People movement highlights

GLOBAL RESOURCES

5G

Telefónica flags 5G tests for autonomous driving [p16]

  • Ericsson achieves first milestone in 5G Technological Cities project…
  • …as Telefónica continues to broaden its 5G vendor ecosystem
  • Continuing focus on 5G for connected and autonomous cars

Telefónica virtualisation partners join 5TONIC [p18]Partners

Telefónica extends Azure partnership to IoT [p19]

  • More IoT collaboration with Microsoft on the horizon
  • Partnerships key to IoT

Suppliers

Worry for Telefónica supplier ZTE [p20]

  • Banned in the USA
  • Blackballed by GCHQ
  • Latin America a road to recovery?

Telefónica Business Solutions

Oracle and ElevenPaths support TBS authentication [p21]Virtualisation

Telefónica hails Sedona or-chestration breakthrough [p22]Digital services

Big data

Huawei highlights LUCA role [p26]LUCA Transit put to work in Peru [p27]Open Future

TokBox to migrate InTouch Health’s healthcare platform to WebRTC-based OpenTok

Telefónica backs LatAm venture support group [p28]

  • Telefónica hosts LatAm security think-in

Security

Telefónica doubles up on security alliances [p29]

  • Early days for cooperation, with more hopes than expectations
  • Table 4: Cybersecurity Tech Accord signatories
  • Pair of accords

Television services

Telefónica unveils new vendor partners for LatAm TV [p32]

  • Table 5: Accesses in key Telefónica pay-TV markets, Q1 2018
  • Smaller video technology providers get a look-in
  • Pay-TV: Latin America in focus

LATIN AMERICA

  • Competition rule changes edge forwards

Regional developments

Telefónica deploys ASSIA home Wi-Fi solution [p35]

  • Growing need for home Wi-Fi support

Brazil

Vivo data privacy under scrutiny [p38]

  • Benchmarking suggests Telefónica still leading in opaque market

Anatel calls it quits on Vivo penalty write-off plans [p40]Vivo and Ericsson to bring 4G to Venezuelan border [p41]EUROPE

Germany

O2 teams with NGN Fiber Network for mobile backhaul [p44]

  • Collaboration is key

O2 Germany trumpets NB-IoT airport pilot in Munich [p45]

  • NB-IoT pilot flies at Munich Airport
  • Vendor alliances used to showcase digital service credentials

… Nokia and Telefónica target manufacturing with IoT on-demand [p47]Spain

Software AG backs enterprise cloud services in Spain [p48]UK

CCS declares City small cells up and running [p49]

  • CCS heralded as technology and pragmatism aid progress
  • Table 6: UK 3.4GHz spectrum allocations, April 2018

Telefónica puts new spectrum straight to work [p51]

  • Operators paying over the odds
  • O2 spectrum allocation comes free

Rapid relief

Further reading

Index

Index

Symbols

3GPP 46
5G Automotive Association 18
21st Century Fox
Sky plc 8

A

Accenture 10
ADVA Optical Networking 22
Alphabet
Google 9, 28, 38
YouTube 36, 42
Alstom 17
Altran 18
Amazon 20
América Móvil 9, 23, 40, 42
Claro 39, 40, 42
Anatel 40, 41
Arqiva 49
ARRIS 33
ASSIA 35, 36
AxisMed 38

B

BOC Group 23
BT Group 12, 31, 51

C

Cabify 17
CA (Computer Associates) 31
Campus Party 13
CarMedia 16, 17
CCS 49, 50
Centre for the Development of Industrial Technology (Spain) 28
Check Point 29
Cisco Systems, Inc 12, 17, 31, 49
CK Hutchison 51
H3G
UK 51
ContentWise 32, 33

D

Dell Technologies 31
RSA 31
VMware 31
Deutsche Telekom 8, 44, 45

E

EasyMile 16, 17
Entel 42
Ericsson 16, 17, 18, 32, 33, 40, 41
5G-ConnectedMobility 18
Etisalat 13, 29
European Telecommunications Standards Institute (ETSI) 23
European Union 22, 23
European Commission 18, 28

F

Facebook 28, 31, 38
FeedbackNow 46
FireEye 29, 31
Fortinet 29
F-Secure 31

G

GCHQ 21, 28
Geotab 46
Global Cyber Security Alliance 29
Grupo Clarín
Cablevisión 35
GSM Association
GSMA
Mobile Connect 21
GSM Association (GSMA) 21
Mobile World Congress 17, 47
GTX 46

H

Hertz Global Holdings
Hertz Mexico 46
Hewlett Packard Enterprise 31
Hortonworks 26
HP, Inc 31
Huawei 17, 26, 40, 45, 46, 47

I

IBM 10
Indra 10
Intel 17
InTouch 30

J

Juniper Networks 17, 22, 31

K

Kudelski Group
Nagra 33

L

LAVCA 28
Liberty Global
Virgin Media 49
LinkedIn 31

M

Microsoft 9, 19, 31
Azure 19
Mediaroom 33
MVNOs 8, 12

N

Netflix 8, 36, 42
NGN Fiber Network 44
Nice People At Work (NPAW) 32, 33
Nielsen 31
Nokia 16, 17, 31, 45, 47, 49

O

Ofcom (UK) 50, 51
Oi SA 39, 40
Omnicom Group, Inc
Organic 7
OpenCloud Factory 21
Oracle 21, 31
Orange 12, 51

P

Palo Alto Networks 29

Q

Q-loud 45
QSC AG 45, 46
Qualcomm 17, 20, 28

R

Red Hat 18
Regions
APAC
China 17, 20, 21, 48
Japan 29
EMEA
Europe 8, 10, 11, 12, 17, 18, 20, 22, 28, 43, 44
France 16, 17
Germany 6, 8, 17, 44, 45, 46, 48
Spain 6, 9, 10, 12, 16, 21, 26, 28, 32, 33, 36, 47, 48
Sweden 17, 32
Switzerland 46
UK 6, 7, 8, 9, 10, 12, 17, 20, 21, 27, 28, 46, 49, 50, 51
Latin America 10, 12, 13, 20, 21, 23, 26, 27, 28, 29, 32, 33, 34, 35, 36, 41
Argentina 8, 9, 10, 32, 33, 35
Brazil 7, 8, 9, 10, 13, 23, 28, 32, 33, 36, 38, 39, 40, 41
Central America 9, 33
Chile 9, 32, 33, 42, 46
Colombia 9, 32, 33
Costa Rica 32, 33
Ecuador 9, 32, 33, 42
El Salvador 32, 33
Guatemala 32, 33
Mexico 9, 13, 29, 33, 42
Nicaragua 32, 33
Panama 32, 33
Peru 9, 10, 27, 32, 33, 42
Uruguay 9, 32, 33
Venezuela 9, 32, 33, 41
North America
USA 17, 20, 21, 32
Rhapsody International
Napster 36
Royal Bank of Scotland 30

S

Samsung 17
Galaxy 17
SAP 10, 11, 31
SuccessFactors 10, 11
Sedona Systems 22
Sigfox 46
Singtel 29
Sixt 46
SoftBank 29
Software AG 48
Spotify 36
Subtel (Chile) 42
Symantec 29, 31

T

Technologies
2G 41
3G 40, 41
3.5G 16
4G
LTE 9, 41, 42, 44, 45, 46, 47, 49, 50
5G 16, 17, 18, 21, 23, 44, 47, 49, 50, 51
Broadband 35, 36, 42, 44, 51
DSL 35, 36, 46
Ethernet 23
GPS 46
GSM 21
Internet of Things 12, 19, 27, 45, 48
IP 22
IPTV 9, 32, 33
LTE-A Pro 41
M2M 45, 46, 48
MPLS 22
NB-IoT 45, 46, 48
NGN 9, 20, 22, 44, 47, 50
SDSL 46
SIM 20, 46, 48
Smart metering 45
Telematics 46
TV 17, 32, 33
V2X 17
VoD 32, 33, 42
VoLTE 42
VPN 26
WebRTC 30
Web Services 20
WLAN
Wi-Fi 35, 36, 49
Telecom Italia
TIM Brasil 39
Telefónica Group 6, 7, 9, 10, 12, 16, 18, 22, 23, 26, 27, 28, 29, 30, 36, 46
Associates and investments
AxisMed 38
China Unicom 20, 48
CounterCraft 28
Indra Sistemas 10
Sigfox 46
Digital 30
Digital services
AURA 9, 28
ElevenPaths 13, 20, 21, 28, 30
LUCA 26, 27
M2M 45, 46, 48
Open Future 13, 27, 28
OTT 32, 33
Telefónica I+D 13
Tokbox 13, 30
Tuenti 12, 13
Wayra 13, 27, 38, 46
Europe
Germany 44, 45, 47
O2 6, 8, 12, 44, 45, 46, 47, 49, 50, 51
Spain 8, 9, 12, 17, 47
Telefónica Deutschland 8, 12, 44, 45, 46, 47, 48
Telefónica Soluciones 48
UK 6, 8, 12, 49, 50, 51
Executives
Abasolo, Laura 7
Aguilar, Francisco 12
Alonso, Chema 29
Álvarez-Pallete Lopez, José María 6
Arias, Miguel 28
Avellar, Fábio 13
Barnard, Chris 12
Bertram, Jo 12
Berwig, Jens-Olaf 12
Bomura, Alessandra 13
Burzako, Cristina 12
Carbajo, Cayetano 44, 47
Castillo Sanz, Eva 12
Charles Cavazos, Juan 13
Cortez, Pedro 42
Cortina Seifer, Gabriel Andres 13
de Santos, Eduardo 36
García, María Luisa 12
Gawendo, Guenia 13
Gebara, Christian 13, 39
Gil Lizasoain, Elena 26
Gutiérrez, Javier 17
Jepp, Claus 12
Kriger, André 13
Leaver, Catherine 12
López, Víctor 22
McManus, Derek 50
Muñoz, Vicente 19
Navarro, Eduardo 41
Navarro Yubero, Agustin 12
Parnell, Caroline 12
Parsons, Louise 10
Pérez, Pedro Pablo 30
Plumb, David 12
Potter, Oliver 12
Ramos Hernandez, Joaquin 13
Requena, Alfonso 12
San Miguel, Vicente 6, 8
Serrahima, Pedro 12
Ueno, Adriana 13
Vilá, Ángel 6
Williams, Gareth 12
Ex-executives
Domingo, Carlos 13
Global Resources 12, 35
5TONIC 17, 18
Cornerstone Telecommunications Infrastructure 49
Telefónica Business Solutions 19, 21
UNICA 18
Latin America
Brazil 13, 36, 38, 39, 40, 41, 46
Chile 13, 42
Mexico 42
Vivo 33, 36, 38, 39, 40, 41
Movistar+ 12, 16, 36
Products and services
Connected Car 12
Movistar+ 12, 16, 36
Movistar Play 33, 42
Movistar TV 33
pay-TV 8, 16, 23, 32, 33, 35, 36
Vivo Play 33
Tgestiona 10
Tuenti 12, 13

U

United Nations 12, 41

V

Viavi 23
Virgin Group 42, 49
Virgin Mobile 42
VMware 31
Vodafone Group 12, 44, 51
Germany 12, 44
UK 51

W

Wibson 28
World Economic Forum 41
Wyplay 33

X

Xanview 27

Z

ZTE 17, 20, 21

About

About Telefónicawatch

Report: #126
Published: May 2018
Next report: June 2018
For more information visit: Telefónicawatch