Telefónicawatch
This release
: #136
July 2019: 96pp
Releases/year: 10+
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EXECUTIVE BRIEF

GROUP

MANAGEMENT UPDATE: H1 FY19: confident Telefónica cruising on [p6]

Currency fluctuations and accounting changes muddy the financial picture

Spending up on strategic priorities, with a shift towards opex

Table: Telefónica, selected financial data, H1 FY19

Taking care of business, digitally

Further points of note

Technology advances flagged, with Phoenix to fan flames

Regional performance: reasons to be cheerful

Table: Telefónica Group, performance by unit, Q2 FY19

Financial reports

PEOPLE

Table: People movement highlights

GLOBAL RESOURCES

5G DEVELOPMENT: Telefónica banks on Alcobendas as new 5G city [p16]

5G banking use cases on trial

The 5G Technological Cities project

Nokia goes for gold with 5TONIC [p18]

Ericsson reiterates its 5TONIC presence

5TONIC and friends showcasing achievements

Contracts

CLOUD SERVICES: Telefónica beefs-up Google Cloud offering [p21]

Data centres

Suppliers

O'Reilly talks-up vendor challenger opportunity

CONNECTED CAR: O2 supporting CAV project with space agencies [p23]

O2's ongoing commitment to CAVs

5G

UK Government releases £40m more for 5G trials

TELEFÓNICA BUSINESS SOLUTIONS: Fortinet underpins new virtual firewall service [p26]

TIWS

Telefónica extends international off-net reach

TIWS launches new anti-fraud solution

Telxius

Telefónica offloads Peruvian masts; Telxius thought to be the buyer

TELXIUS: Telxius ties with América Móvil on new subsea cable [p29]

DIGITAL SERVICES

ELEVENPATHS: ElevenPaths, BOTECH FPI team for bank fraud defence [p32]

Telefónica I+D

OPEN FUTURE:

Table: Open Future investments and developments

IOT: Telefónica and Arad partner for smart water management [p35]

IoT

Muving taps Telefónica for moped-sharing IoT; blockchain-tokenisation enabler?

IoT

Partners

Video

DIGITAL TRANSFORMATION WORLD 2019

TM FORUM: DTW19 underlines need for collaboration and speed [p41]

Telefónica focus on AI and AURA

Collaboration a constant in tumultuous times

Foundations for 5G (and maintaining relevance)

A living framework

Access the full report

AURA AND AI: Telefónica embraces short-term pain for data flexibility [p45]

Design phase considerations -- breaking silos in a straitjacket

URM enablers

Implementation pains providing lasting lessons

Significant gains feeding into a virtuous cycle

Telefónica ramps up AURA [p49]

Global design, local implementation

AURA progress to date

Microsoft: a key partner…

…and a big AURA fan

A work in progress

TRANSFORMATION: Telefónica|Vivo: Opening Pandora's box [p53]

PROFILE: EXFO offers assurance in changing world [p55]

About EXFO's Service Assurance division

Strategic priorities for an automated future

Change as a constant in virtual world

Telenor partnership highlights common cause

Passive potential runs deep

Three UK showcases assurance for virtualised infrastructure

Catalyst contributions provide additional proof

5G and a more consultative way of doing business for vendors and operators

LATIN AMERICA

BRAZIL: Vivo freed from local supplier obligations [p63]

Anatel report shows reliance on the big beasts

Table: Telefónica|Vivo suppliers according to Anatel research

Brazil

Vivo Empresas flags SD-WAN in new portfolio

Anatel gets behind PERT [p65]

Regional coverage gaps and slow connections a priority

Anatel sets out its goals…

… and the regulatory changes to make them happen

Telefónica and TIM show early signs of support

Brazil

PERU: Telefónica hit by fines and tax demands [p68]

Argentina

Chile

EUROPE

GERMANY: O2 says 5G auction has deprived industry of billions [p71]

Table: 2GHz and 3.6GHz licence auction outcome

Operators experience collective buyer's remorse

Telefónica's cunning three-point plan

You pays your money, you takes your choice…

We need to talk about Drillisch

Dun roamin'

See you in court, BNetzA

Table: Rollout obligations and concerns

Empowered BNetzA reminds operators of coverage responsibilities

5G a driver for private networks

Germany

SPAIN: Nokia gets deeper Fusión role [p78]

Deepfield acquisition proving its worth

Spain

Movistar hovers as Vodafone gets Spanish 5G party started [p80]

Movistar to launch when it's ready

Spain

Telefónica to be Real Madrid's tech partner until 2023

UK: O2 relaxed as 5G late-starter [p82]

5G squad goals

Premium pricing a pipe dream; unlimited data back on the table

Huawei quietly sidelined, but maintaining a presence

Fibre investment to back 5G pondered

CTIL 5G expansion confirmed with passive partnership [p85]

CTIL remit expands, with monetisation on the horizon

UK

O2 Business to relaunch

Phones 4u 'price-fixing' controversy continues [p87]

Who said what to whom?

Telefónica Group distances itself from outpost, Vodafone denies involvement

UK

Spectrum trading rule welcomed

Ofcom investigating over years of potential billing errors [p90]

FURTHER READING

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

  • 25% of 5G sites managed by CTIL will only see sharing of passive equipment, with O2 and Vodafone upping emphasis on network autonomy.

As previously indicated (Telefónicawatch, #132), Telefónica UK (O2 UK) and Vodafone UK confirmed that the Cornerstone Telecommunications Infrastructure (CTIL) joint-venture would play a role in the operators’ 5G network rollout. However, the agreement sees the focus of the JV continue to retreat back from active sharing to a focus on passive equipment management.

The 5G agreement will see active equipment shared at approximately 12,500 joint network sites across the UK, enabling the two operators to speed the expansion of their 5G footprints, with the partners highlighting the environmental and cost-saving benefits of sharing.

However, the agreement also continues the trend towards limiting active network sharing. O2 and Vodafone are withdrawing 2,700 sites from active sharing to achieve “greater 5G network autonomy”. Citing advantages in terms of flexibility, the partners said that each operator will install its own radio equipment, backhaul connection and power supply at the autonomous sites.

The 2,700 sites represent around 16% of the total number of 5G sites the partners will share, and will take the total percentage of shared access sites that only feature passive infrastructure sharing to 25%. Network autonomy for sites in London was instigated in 2017 (Telefónicawatch, #118, #127). The 2,700 figure also marks an extension to the operators’ planned autonomous kingdoms: earlier in 2019, the CTIL partners had indicated that 2,500 sites outside London (or around 15%) would be managed autonomously.

Perhaps tellingly, in the comments from operator management welcoming the new agreement, O2’s CEO Mark Evans focused on the benefits of network-sharing in terms of accelerating 5G availability and making efficient use of spectrum, while his Vodafone counterpart Nick Jeffery appeared more focused on the benefits of network autonomy, and the potential for intensified investment from the OpCo.

CTIL remit expands with monetisation on the horizon

Under the new agreement, CTIL is also expected to take a more active role in network deployment for its JV owners, with the goal of identifying new operational efficiencies.

The operators reiterated earlier comments on exploring the opportunities for monetising the CTIL joint-venture. The interest in potentially selling off part of the JV came just ahead of Vodafone Group announcing its own plans to create a standalone European masts business ahead of a potential spin-off (see upcoming Vodafonewatch report).

[Further reference: O2 and Vodafone finalise 5G network agreement in the UK — Telefónica, 24 July 2019.]

Image: O2 Czech Republic

 

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