Telefónica, S.A. (Telefónica) is a telecommunications service provider with its footprint in some markets in Europe and Latin America.
The company is a diversified telecommunications group, which provides a comprehensive range of services through one of the world’s largest and most modern telecommunications networks; are focused on providing telecommunications services; and operate principally in Europe and Latin America.
Telefónica offers its customers a wide range of products and services, b...
Telefónica, S.A. (Telefónica) is a telecommunications service provider with its footprint in some markets in Europe and Latin America.
The company is a diversified telecommunications group, which provides a comprehensive range of services through one of the world’s largest and most modern telecommunications networks; are focused on providing telecommunications services; and operate principally in Europe and Latin America.
Telefónica offers its customers a wide range of products and services, based on the latest technologies available in each area. Within its core telecommunications business, Telefónica deploys next-generation networks (based on fiber and 5G) to connect the societies in which it operates. The company primarily offers its customers the connectivity they need to interact and live in the markets where the company operates through simple products and services while protecting their data and managing it in a responsible way. The company relies on modern technology to create a better and more inclusive society. The company intends at offering its customers the possibility to reach the digital world regardless of their location, economic status, level of digital knowledge and capacities.
Strategy
The company’s strategy intends to:
Enhance value through:
Making the company’s world more human, by connecting lives in a sustainable way as the company continue to leverage opportunities in the company’s markets and deliver towards the company’s strategy focused on value creation.
Offering good connectivity, for which the company’s infrastructure management and the company’s continuous investment in network and platforms are key.
Good connectivity is the enabler for all digital services. Telefónica provides a wide range of services over connectivity through a fixed and mobile bundled offer which includes video and digital services. The company offers its customers additional data in order to amplify services through unique, simple and clear offers. Telefónica includes services beyond core connectivity services in its portfolio, such as Internet of Things (IoT), cybersecurity, Big Data, Artificial Intelligence and Cloud services among others.
Focusing on customers’ needs, making their life and digital experience easier through customized offers.
With the following enablers:
End-to-end digitalization: seeking the reduction of the company’s legacy investments to increase virtualization, the reduction of physical servers, data centers and applications, the digitalization of IT systems and processes and the digitalization of front and back office. Digitalization efforts undertaken in the past have allowed Telefónica to provide a rapid response to companies as they adapted to and sought to enhance their competitiveness in the new landscape.
Continued focus on the simplification of processes right sizing the company and realization of synergies in the United Kingdom, Brazil and Germany. In 2024, Telefónica continued the digitalization and automation of sales channels and customer care, process improvements and modernization and rationalization of the network. Telefónica leads copper switch-off in Europe, and in Spain more than 90% of the retail copper network has been switched off. Due to regulatory requirements, the remaining portion of the network is expected to be switched off by May 2025.
Digital trust: as the company manage ever more personal information about the company’s customers, their trust in the company is key. Telefónica seeks a relationship of trust with its customers, and therefore the company invest in network security. Telefónica is developing tools to protect information stored on user devices and transmitted across the company’s fixed and mobile communications networks, as well as to protect customers' digital identity.
Fiber, 4G and 5G deployment enables Telefónica to maintain and grow its customer base in terms of accesses, and decrease churn, by offering customers a better experience. These networks help Telefónica to contribute to make technology more accessible and sustainable, to continue to maintain high quality services for home offices and a higher consumption of entertainment services.
In recent years, Telefónica has diversified its revenue mix with adjacent businesses. Although these services still have a substantially lower weight in Telefónica's total revenues, these revenues represent more than 40% of the company’s B2B revenues and grew at double digits as of December 31, 2024. These efforts include:
Telefónica Empresas in Spain continues to advance in its proposals for the business segment. Positive developments on this front include the collaboration agreement with Microsoft to facilitate the adoption of Copilot+ PCs, Windows devices with integrated AI. This collaboration will allow Spanish companies to upgrade their workstations and improve their productivity through advance digital solutions.
Energy: GUD Energía, is a joint venture created in 2024 to capture the opportunities generated by the opening of the free market with a focus on the sale of personalized renewable energy solutions throughout Brazil, helping consumers to cut their energy bills.
Business Areas
The company operates through Telefónica Spain, VMO2, Telefónica Germany, Telefónica Brazil and Telefónica Hispam (formed by the Group's operators in Colombia, Mexico, Venezuela, Ecuador, Argentina (sold in February 2025), Chile, Peru and Uruguay) segments.
Telefónica Spain
Telefonica Spain maintained a positive evolution in 2024, with year-on-year growth in accesses and the main financial indicators.
As the main commercial novelty in the residential segment, it is worth highlighting the reinforcement of the TV entertainment offer with the integration of Apple TV+, through the signing of a strategic agreement that brings the complete Apple TV+ service to miMovistarFicción subscribers, as part of the navigation on the TV platform and also on demand.
Additionally, Telefónica Empresas, servicing Telefónica Spain's business customers, continues to advance in its proposals for the business segment. Positive developments on this front include the collaboration agreement with Microsoft to facilitate the adoption of Copilot+ PCs, Windows devices with integrated AI. This collaboration will allow Spanish companies to upgrade their workstations and improve productivity through advanced digital solutions.
Telefónica Empresas has also incorporated Network Slicing capability into the Movistar Intranet service, becoming the first operator in Spain to offer quality of service in private mobile connectivity end-to-end for secure access to corporate networks in mobility.
This advancement allows for the establishment of secure virtual private networks (VPNs) on mobile devices that are able to communicate with each other even in high-traffic scenarios, optimizing communications with new technologies that require greater mobility or lower latency.
Finally, Movistar Prosegur Alarmas, the joint venture of Prosegur and Telefónica Spain, reached 550 thousand customers as of December 31, 2024, up by 12.8% y-o-y.
Telefónica Spain had 41.8 million accesses as of December 31, 2024.
VMO2
VMO2 is the company’s 50:50 joint venture with Liberty Global Plc in the United Kingdom. Telefónica’s actual percentage ownership of VMO2 is 50%.
More than three years after the formation of VMO2, the company continues to integrate and innovate while investing heavily to expand and upgrade its fiber and 5G networks to provide the highest quality connectivity to more regions of the country.
VMO2’s gigabit fixed network footprint reached 18.3 million premises at the end of 2024, delivering 1.3 million homes serviceable in the year underpinned by the expansion of the FTTH network of nexfibre, the FTTH joint venture formed by Telefónica Infra, Liberty Global and InfraVia. The expansion of the nexfibre footprint helped to deliver 20,000 new accesses in 2024.
The upgrade of VMO2’s fixed network to fiber continued at pace across the year, with a total fiber footprint of 6.4 million premises by year end when including the nexfibre footprint.
In its mobile business, significant progress was also made in the evolution of the company’s mobile network to 5G, with the U.K. outdoor population coverage standing at 75% at the end of 2024.
In December 2024, the UK’s Competition and Markets Authority approved the merger between Vodafone UK and Three UK in the United Kingdom (‘MergeCo’). Subject to the final completion of the merger and relevant approvals, VMO2 expects to acquire spectrum from MergeCo and MergeCo’s enlarged network would participate in network sharing with VMO2.
Telefónica Germany
In 2024, Telefónica Germany continued with commercial traction and low churn in a competitive market.
On January 26, 2024, Telefónica completed a voluntary public acquisition offer for shares of Telefónica Deutschland, followed by a public delisting acquisition offer completed on April 29, 2024. As a result of these transactions and direct market purchases by Telefónica outside the offers, Telefónica reached approximately 96.85% of the share capital and voting rights of Telefónica Deutschland.
In August 2023, the 1&1 Group disclosed that it would switch its host network operator in Germany from Telefónica Germany to Vodafone in the second half of 2024, under a long-term, exclusive national roaming partnership with Vodafone Group. This exclusivity arrangement includes the non-discriminatory provision of national roaming services in areas not yet covered by the new 1&1 mobile network and in particular includes access to the 5G network of Vodafone Group, including mobile communication standards 2G and 4G and future mobile communication standards and technologies. The agreement between the 1&1 Group and Vodafone has limited Telefónica's network sharing opportunities with 1&1. Migration of customers to 1&1’s own network and Vodafone’s network (for roaming) began in the first quarter of 2024 and is expected to be completed in the second half of 2025. It is expected that the completion of this migration will have a significant impact on Telefónica Germany’s accesses and revenues. The ongoing migration of 1&1 customers from Telefónica’s network to 1&1’s own network and Vodafone’s network (for roaming) is referred to below as the ‘change to the 1&1 business model’.
Telefónica Brazil
In 2024, Telefónica Brazil maintained its leadership in the mobile segment, and in a more consolidated market environment, a market share of 38.8%, 5.7 p.p. ahead of its closest competitor (data from the last official publication of ANATEL, December 31, 2024). Telefónica Brazil's strategy remains focused on strengthening its high-value customer base. Telefónica Brazil reached a contract market share (excluding IoT accesses) of 43.1% as of December 31, 2024 (ANATEL).
In the fixed business, Telefónica Brazil continued with the implementation of strategic technologies, focusing on the deployment of fiber, centering its commercial offer around Vivo Total, and maintaining low churn rates.
In addition, Telefónica Brazil continued to advance in the development of an ecosystem with relevant partners to promote its consolidation as a digital services hub. To this end, it offers a broad portfolio of services, highlighting those described below:
Health & Wellness: Vale Saúde is a monthly subscription service that provides discounts for online or in-person medical care, exams and medications, through more than 3 thousand pharmacies and 3 thousand clinics and laboratories in 2024.
Education: Viva E is an employment platform that combines online courses and job offers. The joint venture created by Telefónica Brazil and Ânima Educação offers more than 400 hours of content.
Vivo Ventures: Telefónica Brazil’s corporate venture capital fund for strategic investments, invested 5 million euros in CRMBonus, a platform specialized in the use of artificial intelligence to build customer loyalty, in June 2024, in addition to 1.4 million euros in Agrolend, an agricultural credit fintech company targeting small and medium-sized rural producers, in October 2024.
Fintech: Vivo Pay is Telefónica Brazil's 100% digital platform that consolidates Vivo's financial solutions, including personal loans, insurance, unemployment benefit advances and instant payment solutions, among others. Telefónica Brazil operated Vivo Pay with BTG Bank until September 2024, when the Central Bank of Brazil approved the request for authorization to operate Vivo Pay Sociedade de Credito S.A. as a direct credit company. Vivo Pay is expected to enhance Vivo's financial services.
Energy: GUD Energía is a joint venture created in 2024 to capture the opportunities generated by the opening of the free market with a focus on the sale of personalized renewable energy solutions throughout Brazil, helping consumers to cut their energy bills.
Telefónica Hispam
Telefónica Hispam's total accesses reached 108.9 million as of December 31, 2024.
Services and Products
The company wants to provide access to digital life, using the best technology and without leaving anyone behind.
Connectivity is the company’s ally in reducing the digital divide, and due to the company’s fixed and mobile network infrastructure and the services the company develops around it, the company can aid progress in the communities in which the company operates.
Telefónica works on three basic fronts:
Providing access to technology through digital inclusion, in other words, by means of network roll-out and an accessible and affordable offer for all sectors of the population.
Developing innovative services that add value to the company’s connectivity and which the company develop through innovation: Big Data, the Internet of Things (IoT), eHealth, digital education and eFinances.
Incorporating sustainability principles across all of the company’s product development processes.
Mobile Business
Telefónica offers a wide variety of mobile and related services and products to personal and business customers. Although they vary from country to country, Telefónica’s principal services and products are as follows:
Mobile Voice Services: One of Telefónica's main services in all of its markets is mobile voice telephony.
Value Added Services: Customers in most of the markets have access to a range of enhanced mobile calling features, including voice mail, call on hold, call waiting, call forwarding and three-way calling.
Mobile Data and Internet Services: Current data services offered include Short Messaging Services, or SMS, and Multimedia Messaging Services, or MMS, which allow customers to send messages with images, photographs, sound recordings and video recordings. Customers may also receive selected information, such as news, sports scores and stock quotes. Telefónica also provides mobile broadband connectivity and Internet access. Through mobile Internet access, customers are able to send and receive e-mail, browse the Internet and access real-time available entertainment services (such as video and audio streaming), download games, purchase goods and services in m-commerce transactions and use Telefónica’s other data and software services.
Wholesale Services: Telefónica has signed network usage agreements with several MVNOs in different countries.
Corporate Services: Telefónica provides business solutions, including mobile infrastructure in offices, private networking and portals for corporate customers that provide flexible online billing.
Roaming: Roaming agreements allow Telefónica customers to use their mobile handsets when they are outside their service territories, including on an international basis.
Fixed Wireless: Telefónica provides fixed voice telephony services through mobile networks in Brazil, Venezuela, Argentina (sold in February 2025), Peru, Mexico and Ecuador. Until January 13, 2022, Telefónica also provided these services in El Salvador.
Trunking and Paging: Telefónica provides digital mobile services for closed user groups of clients and paging services in Spain and most of the regions in which it operates in Latin America.
Fixed-line Telephony Business
The principal services Telefónica offers in its fixed businesses in Europe and Latin America are:
Traditional Fixed Telecommunication Services: Telefónica’s traditional fixed telecommunication services include PSTN lines; ISDN accesses; public telephone services; local, domestic and international long-distance and fixed-to-mobile communications services; corporate communications services; supplementary value added services (including call waiting, call forwarding, voice and text messaging, advanced voicemail services and conference-call facilities); video telephony; business oriented value-added services; intelligent network services; leasing and sale of handset equipment; and telephony information services.
Internet and Broadband Multimedia Services: the principal Internet and broadband multimedia services include Internet provider service; portal and network services; retail and wholesale broadband access through ADSL, narrowband switched access and other technologies. Telefónica also offers high-speed Internet services through fiber to the home (FTTH) in certain markets (primarily Spain, Brazil, Chile, and through VMO2, the United Kingdom) and VDSL-based services (primarily Spain and Germany). Telefónica also offers VoIP services in some markets.
Data and Business-Solutions Services: the data and business-solutions services principally include leased lines; virtual private network, or VPN, services; fiber optics services; the provision of hosting and application, including web hosting, managed hosting, content delivery and application, and security services; outsourcing and consultancy services, including network management, or CGP; and desktop services and system integration and professional services.
Wholesale Services for Telecommunication Operators: the wholesale services for telecommunication operators principally include domestic interconnection services; international wholesale services; leased lines for other operators; and local loop leasing under the unbundled local loop regulation framework. It also includes bit stream services, wholesale line rental accesses and leased ducts for other operators' fiber deployment and other agreements to provide wholesale access to the company’s fixed infrastructure.
Digital services
The main digital services offered by Telefónica are:
Video/TV services: Interactive TV services in High Definition (HD) or Ultra High Definition (UHD), using several technologies (IPTV, DTH, CATV and OTT) on various types of networks (Fiber, Satellite, Cable or Mobile Networks). These services can be provided through a variety of devices (TV with STBs, smart TVs, PCs, smartphones, tablets, and streamers, etc.), allowing also the Multiroom function (customers can watch different TV channels in different rooms or on different devices simultaneously). The service allows the access to lineal TV content with advanced functions, such as ‘Restart TV’ (which allows a viewer to watch any content from the beginning), ‘Last 7 days’ (recordings of content for the last seven days), ‘cPvR’ (recordings using cloud computing) and ‘Download to Play’ (downloading the content on the device). Customers also have access to the content on demand catalogue (Video on Demand or VoD), in ‘Subscription Video on Demand’ (SVoD), ‘Transactional Video on Demand’ (TVoD) or ‘Pay per View’ options, as well as access to content of third parties, such as Netflix, Amazon, Disney+, YouTube and Max, among others. In addition, Telefónica offers accessible content in several different languages (original or translated to Spanish) with subtitles or not, audio description and sign language functionalities through the Movistar+ 5s service, which intends to contribute toward the inclusion of disabled people across the country.
IoT (Internet of Things): Telefónica’s Global IoT portfolio includes:
Smart Connectivity: connectivity services for machines, mainly handled through the Kite platform.
Smart Services: end-to-end solutions that include ‘device + connectivity + application’. These business to business solutions are mainly aimed at (i) the mobility management of vehicles, assets and/or people, (ii) the support of the retail and industrial sectors and (iii) the efficient management of energy and water consumption.
Financial Services and Other Payment Services: These services provide customers with access to consumer credit and payment facilities in the check out process.
Cloud Services: Telefónica offers a wide range of Cloud services. The value proposition includes: (i) IaaS services: Virtual Data Center, which facilitates the migration of existing applications to the cloud and hyperscalers (such as AWS, Microsoft Azure and Google Cloud Platform) to develop new applications in the public cloud; (ii) unified communications and contact center applications in the Cloud; (iii) Cloud networking; (iv) SaaS applications, productivity (Microsoft Office 365), domains, web presence and online marketing; and (v) Platforms as a service (SAP, Oracle).
Security Services: Telefónica provides comprehensive cybersecurity solutions, including security system integration (deployment of security hardware/software), threat and risk management, network and cloud security, managed and mobile protection, identity and access control, professional services, and antivirus solutions for B2B and B2C.
Advertising: A portfolio of marketing channels that third-party brands can use to acquire and engage with customers. Traditional channels such as SMS/MMS messaging may be used alongside with new channels like programmatic display and sponsored connectivity. All of which leverage on the Group's customer data in order to send messages to the correct target, as well as to generate post-campaign brand analysis.
Big Data: Includes products and services designed to enable companies and governments to make AI-powered data-driven decisions. The Group's Big Data offer consists of three main categories: (i) ‘business insights’, which provides information for decision-making based on analysis from advanced analytical products developed on top of data generated in the Group's network and systems; (ii) ‘consulting and analytics’, which includes specialist professional services focused on data strategy, data science, data architecture and data engineering; and (iii) ‘tools and infrastructure’, which provides advanced technology for data management, storage and exploitation.
Customer Digital Products: defines and develops the omnichannel digital experience, guiding the Telefónica customer through his life cycle, adapting the digital experience to every moment's necessity, with three main pillars:
Digitalize Telefonica customers turning the company’s digital channels into the main point of relationship for the clients with Telefonica in all the main markets.
Maximize customer engagement in the digital channel by providing an outstanding customer experience in order to increase Customer Life Time Value.
Provide tools so that Telefónica’s operating subsidiaries can create autonomously personalized digital experiences in a fast (time-to-market), reliable and scalable way.
Aura is an artificial-intelligence (‘AI’) ecosystem designed to improve communication between the company and its customers through cognitive channels. Its intent is to address customer needs and provide them with relevant information related to the company, potentially in any area where Telefónica offers services such as answering questions about telecommunications services, offering financial service proposals, or making recommendations about television or connection offerings. To foster a relationship with customers, Aura offers the creation of conversational bots and other interfaces that use natural language capabilities, using its own infrastructure, with a private and transparent data approach by design. Additionally, to generate useful information, Aura provides its own AI model execution platform with the goal of enhancing the information provided to customers. Moreover, Aura has the capability to create copilot apps for internal use, leveraging the kernel platform (data and APIS) for operations, marketing, and other functions. This intends to ensure that data privacy is maintained by design, providing a secure and efficient way to manage internal processes while enhancing customer interactions.
Movistar Home: Telefónica launched Movistar Home in Spain on October 18, 2018, a new device designed around the functionality of Aura and targeted at the Group's Movistar and Pay TV customers. Movistar Home is designed to strengthen Telefónica's position by enabling highly-converged services and experiences that differentiate the Group from its competitors. Movistar Home intends to provide the company’s customers with an enhanced TV experience on IPTV, increased landline functionality (which enables videoconferences), the Group's smart home package and games in addition to third-party services.
Open Gateway: GSMA-led initiative in the telco sector that intends to transform communications networks into programmable digital platforms by providing the same APIs for all operators. APIs are deployed under the framework of the CAMARA standard (for service delivery) and TM Forum (for operation, administration and management). APIs can be commercialized through channel partners that bring access to developers, including hyperscalers, aggregators, and integrators.
Living Apps: A platform that allows Telefónica and its partners to create relevant home experiences on Telefónica TV. The vision is going beyond the consumption of TV content, bringing Telefónica services to the main screen of the home, turning the TV watching habit into an interactive experience and opening the home ecosystem to selected partners. The main objectives are generating revenue to Telefónica, adding value to customers and exploring new business models with partners.
Smart Wi-Fi: An advanced home connectivity platform and key lever in the premium connectivity strategy, that enables key capabilities like intelligent Wi-Fi connectivity management or web browsing protection (Protección Digital).
NT: A micro-rewards program in Spain to reward customers with Tokens for their digital behavior. Tokens are awarded when customers make use of the company’s digital channels, products and services and can be exchanged for a given catalog of company products.
Solar 360: In March 2022 Repsol and Telefónica Spain created a joint venture to develop the solar self-consumption business. The company started to operate in June 2022 launching Solar 360, offering a comprehensive self-consumption solution to private customers, communities of neighbors and companies, SMEs, and large companies, through solar panel installation. The offer is customized for each type of customer according to their level and habits of consumption, seeking to maximize savings on their current electricity bill. It includes a mobile application for the control of the installation and the continuous optimization of energy expenditure, personalized financing for each type of consumer and other value-added services linked to the solar panel installation.
Phoenix: A digital sales platform that allows customers to receive personalized offers to renew their devices and process purchases in a simple and fully digital checkout. When customers are eligible to renew their devices or expand their devices ecosystem with Telefónica, a customized offer is sent to them via the usual communication channels (SMS, RCS, emailing, self-care app..). Once the customer chooses among the selected proposed portfolio a number of payment and logistics options can be chosen to complete a convenient ‘few-clicks’ device renewal.
Sales and Marketing
The company uses a variety of marketing initiatives and programs, including those that focus on customer value, with in-depth market segmentation; programs to promote customer loyalty; pricing initiatives aimed toward stimulating usage, including segmented packages and innovative tariff options; and initiatives that are responsive to the latest market trends, including those aimed toward boosting demand for the company’s fixed and mobile Internet and mobile broadband offerings. In connection with these and the company’s other sales and marketing initiatives, the company markets its products through a broad range of channels, including television, radio, billboards, telemarketing, direct mail and Internet advertising. The company also sponsors a variety of local cultural and sporting events in order to enhance its brand recognition.
Competition
In Europe, the company’s largest competitors include Vodafone, Orange, Deutsche Telekom and BT Group, among others. In Latin America, the company’s main regional competitor is America Móvil, along with other smaller multi-country players (such as Entel, Milicom and WOM) and purely local players.
Fixed Networks
The company owns fixed networks in Spain, Latin America and Europe, having an incumbent role in Spain, Brazil (São Paulo), Chile, Peru and Colombia.
Following market trends, competitive environments, evolution of technologies and new multimedia and broadband services demanded by the company’s customers, the company has upgraded its networks in recent years through the following:
deprioritization of broadband technologies over copper wires (ADSL, ADSL2+, VDSL2, etc.), effected through decommissioning of legacy copper networks (especially in Spain), in order to focus efforts on the deployment of fiber networks;
deployment of fiber access technologies (xPON) focused on fiber to the home (FTTH) deployment, delivering customer access speeds of up to 1 Gbps with Gigabit Passive Optical Network (GPON), and laying the groundwork for the company’s plans for XGS-PON (an updated standard for Passive Optical Networks (PON) that can support higher speed 10 Gbps symmetrical data transfer) upgrades to deliver speeds above 1 Gbps to the company’s customers;
service support based on powerful Internet Protocol/ Multiprotocol Label Switching (IP/MPLS) backbones, providing full connectivity to the rest of the network layers, such as access and control, to support services for business and customer market segments (fixed and mobile);
simpler Internet Protocol (‘IP’) architectures (IP-FUSION), reducing layers and eliminating ports and links, leading to better efficiency and network performance;
introduction of segment routing protocols for better traffic engineering and latency control;
new network solutions using Open Networking and convergence between IP and optical networks;
network automation through Software Defined Networking (SDN);
replacement of legacy transport technologies and reduction of dependencies on PSTN and ISDN (Time Division Multiplexing (TDM) based) by moving to all-IP communications;
empowerment of the intelligence of the network to better manage its use, to avoid saturations and frauds and to identify new business opportunities;
convergence of fixed and mobile networks, services and support systems from both technological and operational points of view; and
deployment of services such as Pay TV, to customers connected through broadband accesses in Spain, Chile, Argentina (sold in February 2025), Brazil, Peru and Colombia.
Mobile Networks
The company operates mobile networks in Spain, the United Kingdom (through VMO2), Germany, Brazil, Argentina (sold in February 2025), Venezuela, Chile, Peru, Colombia, Mexico, Ecuador and Uruguay. Telefónica also provided these services in El Salvador until January 13, 2022. In addition, Telefónica entered in 2019 into an agreement with AT&T to access AT&T’s last mile wireless capacity in Mexico. Through this agreement, Telefónica gains access to capacity on AT&T’s 3G and 4G access network and any future access network technologies nationwide, while maintaining its transport network and all of its platforms in such country. The migration of the traffic to the AT&T access network was completed during 2022.
The company uses a number of mobile technologies in the countries in which the company operates, namely: GSM, UMTS, LTE and 5G. 5G is being used in Spain, the United Kingdom, Germany, Brazil, Argentina (sold in February 2025), Chile, Colombia, Mexico and Uruguay, although it does not yet cover the entire population in these countries. The company continues the work of upgrading the company’s mobile networks in line with market trends, the demand of new services from customers and the evolution of technologies. The main steps the company is taking include:
evolution of broadband in mobile access using the latest LTE standards (LTE-A, MIMO and carrier aggregation) to improve network capacity and user experience;
deployment of 5G networks following different approaches in order to give the company’s customers the best experience for this new access technology. Together with the main vendors and sharing experience with other operators, the company is exploring the opportunities that the new 5G standards can offer by providing higher capacity at a lower relative cost by user/traffic unit;
deployment of new services, such as mobile television (OTT) and distribution services for next generation music, video and games; and
convergence of fixed and mobile networks, services and support systems from both technological and operational points of view.
Satellite Communications
Multiple services are provided using both Telefónica's own satellite platforms and ground assets and third-party (GEO/LEO satellite service operators) managed services complementing Telefónica's terrestrial footprint. These include television contribution signal to feed cable and IPTV head ends, DTH television and VSAT mainly for mobile telephony, IoT, Internet access and mobile backhaul in rural environments or remote areas, emergency and disaster recovery solutions, corporate communications and international communications.
Submarine Cables
The company is one of the world’s largest submarine cable infrastructure companies, through the company’s subsidiary, Telxius Telecom, S.A. (‘Telxius’). Telxius is a leading global connectivity provider that combines submarine and terrestrial networks with data centers worldwide. Its extensive ecosystem includes nine next-generation fiber optic submarine cables and terrestrial backhauls together spanning more than 100,000 kilometers, 100 points of presence (PoPs) and 20 data centers. As of the date of this Annual Report, Telefónica holds a 70% beneficial interest in Telxius following the completion of the transaction with Taurus Bidco S.à r.l. in 2023. See ‘—Financial Investments and Divestitures’. In addition, Telefónica owns around 20 submarine domestic cables in Spain.
There are submarine cable connections linking Europe, the Americas and Africa which are jointly owned by the company and other telecom operators. The SAm-1 cable, fully owned by Telxius, has a length of approximately 25,000 kilometers and links different countries such as the United States, Puerto Rico, Ecuador, Guatemala, Peru, Chile, Brazil, Argentina and Colombia.
Next-generation submarine cable systems are already in service to help meet the capacity demand in the future. The Brusa cable links Brazil and the United States, while the Marea and Dunant cables links the United States and Europe. Additionally, the 7,300 km Mistral cable serves the entire Pacific coast of South America with the highest levels of service, reliability and security. The 2,000 km next generation Tannat system (Santos – Las Toninas) adds to the Brusa (Virginia Beach – Rio de Janeiro) and Junior (Rio de Janeiro – Santos) cables on the Atlantic coast of Latin America to deliver modern and diverse end-to-end connectivity between the United States, Brazil and Argentina. Firmina is a next-generation submarine cable set to connect the East Coast of the United States to Las Toninas, Argentina. The Tikal submarine cable is intended to connect Boca Ratón, Florida, United States, with Puerto Barrios, Guatemala, with a landing point in Cancún, Mexico, and the recently announced CELIA cable seeks to link Boca Ratón, Florida, the United States with San Juan, Puerto Rico.
Research and Development
The total research and development (‘R&D’) expense in the company for 2024 amounted to 647 million euros.
History
Telefónica, S.A. was founded in 1924. The company was incorporated in 1924 under the laws of the Kingdom of Spain.
