All TelcoTitans.com articles in Telefónicawatch #149
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Digital ReportsTelefónicawatch Report #149 – November-December 2020
Key stories include: Group keeps cash flowing | Cybersecurity Tech expansion | Rise of the InfraCos | VM-O2 edges forward | Nokia backs automation
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Strategy & ChangeTelefónica Tech readies for formation
Group brings in specialists to finalise Tech unit creation, with three-pronged subsidiaries beginning to take shape. Formal structure steadily catching up with well-established tech intent.
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Network & InfrastructureMovistar launches Peru InfraCo post political storm
Telefónica in Peru is establishing a new entity to support fixed-line rollout in remote areas, and is seeking partners. Prior to announcement of new intentions, the award of a new licence to the operator by a government in turmoil sparked suspicions of impropriety.
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Content & TVTelefónica and Hispasat renew acquaintances (again)
Three year-deal to transmit services from AMC Networks-owned channel provider. Group extends longstanding and multi-purpose partnership with former investment.
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Innovation (R&D)German operators jump on campus 5G bandwagon
Once-dissenting operators now planning to use licence-based campus networks for service and technology development. Steady growth in 5G local frequency allocations maintained, reaching 88 organisations in the first year. Verizon also enters scene.
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Partnerships & AlliancesO2 e-health partner Visionable ramps up operations
Startup enabling prompt treatment lands NHS contract on the back of successful Telefónica-backed pilot. Group renewing interest in ICT health sector.
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Network & InfrastructureChile auction: unhappy Movistar reins in spend
Five Chilean spectrum bidders announced: Movistar among MNOs looking for additional 5G bandwidth. Operating business’ antitrust complaints shushed until after the auction, with national 5G roadmap taking priority. Hispanoamérica monetisation plans, and a pivot towards less capital intensive service provision may have contributed to Movistar’s muted involvement.
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M&ACould Telefónica hold key in Prisa power play?
Manoeuvring said to be taking place around Telefónica’s residual holding in media group. Group reportedly open to selling 9.4%-stake but not at any price.
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M&ACellnex open to Telxius grab
TowerCo CEO cheerfully talks up prospect of acquiring stake in Group’s infrastructure business. Idea of Telefónica-Cellnex tie mooted previously — and never totally quashed. Telefónica’s weakening debt profile may prompt inorganic action around infrastructure.
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Network & InfrastructureTelefónica tests TIP’s tricks in backhaul
Increasingly familiar group of vendors named in results of technical RFI for OpenSoftHaul solution, run by Telefónica and four other operators including Deutsche Telekom.
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Partnerships & AlliancesThree-tier cloud for Vértice platform
Telefónica Empresas and in-house cloud specialist acens partner for digital content distribution platform. Cloud services, hosting, infrastructure, and management provided in the deal.
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M&ATelxius prepares subsea business for sale — report
Telefónica TowerCo Telxius reportedly poking investors to see who bites. €2bn valuation for 100,000km-long submarine cable arm. Telxius’s terrestrial portion has seen continued growth, potentially readying for a pivot.
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Suppliers & SCMMovistar taps Nokia for automation-led OSS upgrade
Operator implements near-zero touch automation to increase operational efficiency.
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Network & InfrastructureTelefónica links with Allianz on FTTP infrastructure
50:50 wholesale JV targets rural and semi-rural areas with fibre rollout. Majority of $5bn investment to be raised by bank loans. “Non-consolidated structure” reduces Group exposure.
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PremiumSpending: cost controls “here to stay”
Current crisis said to have engendered long-term change for the Group, with claims that costs are being permanently cut, and not just deferred. Further confirmation provided that the peak of capex is behind the Group.
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PremiumOutlook: Cash is king
Telefónica appears just about on track to meet guidance on operating cash flow during this uncertain year. The weak share price is adding to worries on debt, but generating more free cash flow is the Group’s preferred response to pressure. Management tight-lipped on future dividend payments.
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PremiumHeadline data: Another quarter of belt-tightening and falling revenue for Telefónica
Telefónica’s narrative of core market strength yet to fully win over doubters. Restructuring remains work-in-progress in Hispam, Tech, and Infra.
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Financial & PerformanceTelefónica Group Q3 FY20
Worries persist about Group debt, a tanking share price, and continued exposure to troubled LatAm markets, but Telefónica insists that €100bn of assets on the balance sheet that could be monetised should calm nerves. “Double dip” challenge of pandemic and FX fluctuations acknowledged by management, but Group positioned as ...