Telefónicawatch
This release
: #133
February 2019: 80pp
Releases/year: 10+
Click for more details of this release

EXECUTIVE BRIEF

GROUP

Management Update FY18: Quietly confident Telefónica to build on solid year [p.6]

  • Table: Telefónica Group selected financial data, FY18
  • Digital strength in a virtuous cycle with business sector growth
  • Digitalisation and agility gaining ground
  • Telefónica gets some satisfaction
  • Table: Telefónica Group performance by unit, FY18
  • FY19 guidance: scope for greater competition and investment

Acquisitions and Disposals: Millicom acquires Centroamérica assets [p.13]

  • Data centres also up for grabs

MWC: Microsoft alliance leads Telefónica MWC tech drive [p.17]

  • Azure embedded in Telefónica future
  • Leaders' love-in indicates the potential path of partnership
  • Alonso in the mix
  • Synergic link to latest synergies

MWC initial review: Telefónica's open embrace [p.20]

  • 5G moving towards reality

Suppliers: Industry pushes back on Huawei ban prospect [p.26]

  • Fact-based assessments and new monitoring plans
  • Huawei stands up for itself…
  • Telefónica stands firm

People [p.28]

  • Table: people movements

GLOBAL RESOURCES

5G: LuxCarta joins fixed wireless trial of 5G on mmWave [p.31]

  • Telefónica-backed 5G trial project picks up steam
  • Table: 5G‑EVE participants

Suppliers: Ericsson picks up managed services deal for NOCs [p.35]

  • Ixia to provide network visibility

Deals [p.39]

  • Telefónica Empresas: Hutchison links up to Telefónica MNC charge
  • AWS strengthens Telxius ties with cable deal
  • Telserv links with TIWS

Virtualisation: Telefónica Deutschland hosts latest ONAP proof of concept [p.42]

  • A host at arm's length

DIGITAL SERVICES

Security: AT&T joins security alliance [p.45]

Suppliers: Allot hails Telefónica wins, while trying to change model [p.46]

  • Sandvine in Allot crosshairs

Elevenpaths: OnMobile VAS deal extended in Spain [p.48]

  • Table: Wayra Spain investments during 2018.

LATIN AMERICA

Colombia: Movistar signs up 1.7 million users to VoLTE [p.53]

Mexico: Telefónica Mexico selects Ericsson to deploy SOC [p.55]

EUROPE

Germany: O2 Germany takes action that could delay 5G auction [p.59]

  • Industry solidarity
  • Operators hedge as fourth MNO moves closer to reality
  • 5G carries on regardless…
  • … but what about Huawei?

O2 Banking adds new partner with expanded offering [p.64]

  • Steady progress in European mobile money arena
  • Telefónica talks up accelerating LTE improvements

Spain: Juniper renews Fusión Red role [p.66]

  • Nokia also in on the act
  • Telefónica lends EUR150m for smart phone acquisitions
  • MásMóvil latest to take new wholesale fibre terms

United Kingdom: O2 hit with traffic management warning [p.70]

Vendors see repercussions from Nokia's UK SOC win [p.71]

  • Nokia deal reflects vendor diversification

FURTHER READING

INDEX

Symbols

3GPP 23, 38

A

Acacia Communications 75

Accenture 28

Acciona 15

Advanced 5G Network Infrastructure for Future Internet Public-Private Partnership (5G PPP) 33, 34

Advent 77

AI 17, 18, 19, 20, 25, 35, 36, 50, 51, 74, 75

AlienVault 45

Allot 46, 47, 75

Alphabet

 - Google 16

Amazon 16, 40, 41, 75

 - Amazon Web Services 40, 75

América Móvil 13, 57

 - Claro 57, 76

Apple 16, 53

ASTI 34

AT&T 16, 42, 45, 56, 75, 76

B

Bharti Airtel 15

BNP Paribas 64

British Broadcasting Corporation 76

BT Group 15, 29

 - BT Wholesale 29

Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (Federal Network Agency for Electricity, Gas, Telecommunications, Postal Service and Railways, BNA/BNetzA/RegTP, Germany) 59, 62

C

CaixaBank 67

Canonical 38, 75

Cardinality 71

Cellwize 71

China Mobile 15

China Telecom 15

Cisco Systems, Inc 51, 75

CK Hutchison 9, 39, 75

 - H3G

 - UK 70, 72, 73

CNMC 68

Comcast 49

Comptel 71

D

Deutsche Telekom 15, 16, 22, 42, 61, 63, 77

Drillisch 61, 77

 - Yourfone 61, 77

E

Entel 76

Equinix 14

Ericsson 15, 23, 24, 33, 34, 35, 36, 38, 53, 55, 71, 73, 75, 76

Etisalat 45

European Telecommunications Standards Institute (ETSI) 43

European Union 27, 33, 43, 64, 70

European Commission 25, 33, 74

F

Facebook 22, 38, 40

 - Telecom Infra Project 22, 34, 38

Ficosa 23, 24

Fidor Bank 64

G

Grupo Santander

 - Santander 29

GSM Association

 - GSMA

  --  Mobile Connect 28

GSM Association (GSMA) 15, 22, 26, 27, 61, 74

 - Mobile World Congress 6, 17, 21, 23, 25, 27, 36, 47, 74

H

Hellenic Telecommunication Organization (OTE) 34

HSBC 29

Huawei 15, 26, 27, 36, 53, 55, 56, 63, 71, 74, 77

I

IBM 15, 40

IDC 34

IFT (Mexico) 56

International Monetary Fund (IMF) 10

Ixia 37, 75

J

Juniper Networks 66, 77

L

La Liga 69

LG 53

Liberty Global 51

Lime Micro 38

Linux Foundation 43

LuxCarta 31, 75

M

MásMóvil 68, 77

 - PepePhone 68

 - Yoigo (Xfera) 9, 68

MasterCard 54, 64

McAfee 46

Microsoft 16, 17, 18, 19, 20, 21, 22, 36, 40, 74

 - Azure 17, 18

Millicom 13, 74

Motorola 53

MVNOs 28, 29, 61

N

NEC 42, 43, 75

 - Netcracker 43

Netflix 16, 50, 54, 69

Nokia 15, 34, 36, 53, 55, 56, 66, 71

Nokia Networks 34

O

Ofcom (UK) 70, 73, 77

Omnicom Group, Inc

 - Organic 7, 11

OnMobile 48, 75

OnMobile Global 48, 75

Open Networking Foundation 22, 42, 75

Orange 15, 16, 22, 25, 26, 34, 68, 74

 - Spain 68

Osiptel 57, 76

P

Petrobas 57

Q

Qualcomm 23, 24

R

Raisin 64, 77

Regions

 - APAC

  --  China 15, 36, 63

 - EMEA

  --  Austria 39, 51

  --  Denmark 39

  --  Europe 6, 7, 10, 16, 25, 26, 27, 28, 33, 34, 37, 40, 43, 51, 54, 55, 58, 63, 64, 69, 70, 74, 75, 77

  --  France 12, 26, 33, 34

  --  Germany 10, 16, 28, 31, 43, 51, 56, 59, 61, 62, 63, 64, 65, 71, 75, 77

  --  Greece 33, 34

  --  Ireland 39

  --  Italy 33, 34, 39

  --  Luxembourg 13

  --  Norway 22, 73

  --  Poland 34

  --  Portugal 51

  --  Romania 34, 36, 51

  --  Spain 9, 12, 14, 15, 16, 17, 20, 28, 29, 33, 34, 38, 40, 46, 48, 49, 50, 51, 57, 66, 67, 68, 69, 75, 77

  --  Sweden 33, 39

  --  Switzerland 51

  --  UK 9, 10, 16, 23, 27, 29, 35, 36, 39, 43, 51, 70, 71, 72, 73, 77

 - Latin America 6, 7, 8, 10, 13, 28, 36, 37, 41, 43, 48, 51, 52, 53, 54, 55, 56, 64, 69, 76

  --  Argentina 10, 28, 46, 51, 56, 71

  --  Brazil 10, 12, 16, 18, 28, 37, 43, 46, 48, 51, 54, 56, 57, 64

  --  Central America 10, 13

  --  Chile 10, 40, 51, 54, 56, 71, 76

  --  Colombia 10, 35, 37, 51, 53, 54, 56, 76

  --  Costa Rica 13, 74

  --  Ecuador 10, 35, 56, 57, 76

  --  El Salvador 13

  --  Guatemala 13

  --  Mexico 7, 10, 13, 36, 51, 55, 56, 71, 76

  --  Nicaragua 13, 74

  --  Panama 74

  --  Peru 10, 22, 35, 37, 46, 51, 56, 57, 76

  --  Uruguay 10, 35, 51, 56

  --  Venezuela 10, 51

 - North America

  --  Canada 14

 --  USA 40, 49, 51

Rivetz 47

RootMetrics 72, 77

S

Samsung 15, 31, 53, 62, 75

Sandvine 46, 47

Singtel 45

Sixt 28

SoftBank 45

Sony 15, 53

Subtel (Chile) 54

T

TDLC (Chile) 54

Technologies

 - 2.5G 57

 - 2G 56, 63, 76

 - 3G 53, 54, 56, 70, 73

 - 4G

  --  LTE 26, 38, 53, 54, 55, 63, 65, 72, 73, 75, 76, 77

 - 4K 24

 - 5G 17, 18, 21, 22, 23, 24, 26, 27, 31, 33, 34, 37, 42, 43, 55, 59, 61, 62, 63, 65, 66, 74, 75, 77

 - AI 17, 18, 19, 20, 25, 35, 36, 50, 51, 74, 75

 - Blockchain 75

 - Broadband 8, 22, 38

 - Business/Operations Support Systems (BSS/OSS) 10, 43, 56

 - CrowdCell 38

 - Ethernet 66

 - GSM 15, 22, 26, 61

 - high definition (HD) 69

 - ICT 34, 43, 51

 - IMS 53

 - Internet of Things 28, 49, 50, 66

 - IPTV 8

 - Linux 38, 43

 - NGN 22, 57

 - PaaS (Platform as a Service) 40

 - R&D 34

 - SIM 47

 - Software defined networking (SDN) 22, 42, 43, 75

 - TV 54, 69, 76

 - V2X 24

 - VoLTE 37, 53, 65

 - WLAN

 - Wi-Fi 55, 69

Telecom Italia 12, 34

Telefónica Group 6, 8, 10, 11, 12, 13, 14, 15, 16, 17, 18, 23, 28, 29, 34, 37, 38, 39, 47, 50, 54, 56, 63

 - Associates and investments

  --  Telecom Italia 12, 34

 - Digital services

  --  AURA 18, 19, 36, 41

  --  ElevenPaths 20, 47, 75

  --  LUCA 20

  --  Open Future 49, 50, 51, 75

  --  OTT 41, 54, 56

  --  Synergic Partners 20

  --  Telefónica I+D 34, 50

  --  Telefónica Ventures 50

  --  Tuenti 28

  --  Wanda 69

  --  Wayra 50, 51, 75

 - Europe

  --  E-Plus 61, 65

  --  Germany 10, 28, 59, 61, 62, 63, 64, 65

  --  giffgaff 29

  --  O2 9, 10, 27, 28, 29, 43, 59, 61, 62, 63, 64, 65, 69, 70, 71, 72, 73, 77

  --  Spain 10, 15, 28, 29, 46, 48, 57, 66, 67, 68, 69, 75

  --  Telefónica Consumer Finance 67

  --  Telefónica Deutschland 28, 31, 42, 43, 59, 61, 64, 65, 77

  --  UK 9, 29, 56, 63, 70, 71, 72, 73, 77

 - Executives

  --  Alonso, Chema 20

  --  Álvarez, Cristina 29

  --  Álvarez-Pallete Lopez, José María 8, 15, 17, 18, 19, 20, 21, 25, 74

  --  Andrés Alonso, Ana Casilda 28

  --  Andujar, Pedro 28

  --  Bentley, Clare 29

  --  Blanco, Enrique 19

  --  Carbajo, Cayetano 65

  --  Caro Bernat, Juan Manuel 35

  --  Castro Apablaza, Eduardo 28

  --  Chick, Isabela 28

  --  Duncan, Michael 56

  --  Engelbrecht, Pieter 29

  --  Fernandez, Maria 29

  --  Fernández Miranda, Jorge 28

  --  Gavilán, Javier 37

  --  Gilham, Andy 29

  --  Gruner, Rodrigo 28

  --  Haas, Markus 61

  --  Junge, Alexander 28

  --  Kumar Muthukumarasamy, Dinesh 28

  --  Lea, Bridget 29

  --  Lopez Blanco, Carlos 29

  --  Mata, Joaquin 66

  --  McManus, Derek 73

  --  Morales, Carlos 56

  --  Muñoz, Luisa 34

  --  O7Reilly, Brendan 71

  --  ORRourke, Brendan 29

  --  Oslé, Sergio 49

  --  Sambucetti, Ezequiel 28

  --  Scagnetti, Hugo 28

  --  Uthurralt, Ronald 28

  --  Vardy, Mark 29

  --  Vilá, Ángel 10

  --  Wöllmer, Christoph 28

 - Global Resources

  --  5TONIC 33, 34, 43

  --  MAREA 40, 75

  --  Telefónica Business Solutions 40, 43

  --  Telefónica Empresas 39

  --  Telefónica International Wholesale Services 41, 75

  --  Telxius 40, 75

  --  UNICA 9, 19, 22

 - Latin America 48

  --  Argentina 28

  --  Brazil 10, 43, 48, 54

  --  Chile 28, 54

  --  Colombia 53

  --  Mexico 7, 55, 56, 76

  --  Panama 13

 - Movistar+ 49, 69

 - Products and services

  --  Emoción 48

  --  Fusión 66, 77

  --  Movistar+ 49, 69

  --  Movistar Play 50, 54, 56

  --  Movistar TV 54

  --  O2 Banking 64

  --  pay-TV 8, 18, 54, 56, 69

  --  Ringback tones (RBT) 48

  --  Zuum 54, 64

 - Telefónica Educación Digital 28

 - Telefónica Group 69

Telemundo International Studios 49

Telenor 22, 74

Telserv 41, 75

Tigo 13

Tuenti 28

U

Unilever 15

United Internet 61

 - 1&1 61, 77

UPC 23

V

Vasona Networks 70

Verizon Communications 15, 16

Viettel 57

Vivendi SA 12

Vodafone Group 15, 16, 29, 34, 38, 40, 46, 61, 68, 70, 72, 73, 77

 - Germany 61, 77

 - Spain 68

 - UK 29, 70, 72, 73

Volkswagen Group 15

 - SEAT 23, 24, 74

W

Wanchain 47, 75

Wibson 51

World Economic Forum 15

  • Group prioritisation of customer experience sees Ericsson scoop a Mexican SOC contract.
  • Vendor diversification in full effect at Telefónica with Huawei and Nokia providing similar services in different markets.

Telefónica Mexico selected Ericsson to deploy a Service Operation Centre (SOC) in the country, based on the vendor’s Expert Analytics solution. The new SOC platform will employ advanced data analytics to provide real-time visibility of Telefónica Mexico’s service operations, service quality, and customer experience (CX). The implementation of Ericsson’s Expert Analytics solution was said to be “ongoing”, with full integration expected by the second half of 2019.

The Expert Analytics solution will enable the operating business to predict and prioritise network activity and events that could impact CX, in order to address them before they affect end-users. Ericsson has also highlighted its ability to identify churn risk and assemble new behavioural segment profiles that support customer retention and upselling opportunities.

Other claimed benefits of the solution include: enhanced CX and higher net promoter scores (complemented with Ericsson’s own automated Service Level Index); a lower propensity to contact customer services; and improvements to first-call resolution when problems do arise. The ‘5G-ready’ offering supports a wide range of services, including voice-over-LTE and voice-over-Wi-Fi, as well as encrypted over-the-top traffic.

Ericsson added that the new service will complement other solutions it already provides the operating business, such as pre-emptive network support services, that enable early detection of critical issues and prevent incidents, resulting in improved operational efficiency and network quality.

“We will leverage the data captured through Ericsson’s solution to pursue operational efficiencies in both technical and non-technical areas and thus increase our focus on our customers. ” – Héctor Giménez, Chief Technical Officer, Telefónica Mexico.

While the vendor is providing a SOC in Mexico, it also recently declared it had won a new contract to provide managed services to support network operations centres across several Telefónica operating businesses in Europe and Latin America, (see separate report).

Expert Analytics is a real-time, end-to-end telecom analytics solution that relies on data collected from sources including network nodes, probes, and equipment, as well as business and operations support systems, to provide a measure of “perceived customer experience” that can be narrowed down to individual users.

The planned deployment of the SOC in Mexico forms part of Telefónica Group’s programme to launch new end-to-end SOCs in all its markets, and align the focus of network management more closely with CX and customer service priorities (Telefónicawatch, #104). In April 2017, Telefónica highlighted the role of Huawei Technologies in its launch of new SOCs in Argentina, Chile, and Germany (Telefónicawatch, #116). More recently, in January 2019, Nokia heralded a contract that is to see the vendor’s evolved Service Operations Center (eSOC) platform deployed by Telefónica UK as a real-time tool to manage CX on its network (Telefónicawatch, #132).

Image: Ericsson

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