Overview of Telefónica’s Efficiency Plan
Telefónica’s Brazilian subsidiary will contribute to the €3 billion efficiency improvements planned for 2030, as part of their strategic plan. This ambitious goal encompasses both investment reductions and operational cost savings, targeting key markets over the next five years.
Key Markets and Objectives
Telefónica has identified Brazil, Spain, the United Kingdom, and Germany as priority markets. Specific targets have been set for each of these regions, with Brazil being one of the focal points for efficiency enhancements.
Positive Outlook and Opportunities in Brazil
Marc Murtra, Telefónica’s CEO, expressed optimism during a meeting with market analysts: “We will grow faster than anticipated.” Emilio Gayo, Telefónica’s Operations Director, highlighted that Brazil’s key financial indicators are expected to outperform inflation.
Strategies for Improving Efficiency in Brazil
Emilio Gayo outlined several opportunities for enhancing efficiency in Brazil, including:
- Selling copper networks that were part of fixed-line telephony concessions in the country;
- Digitizing services and integrating new technologies, such as artificial intelligence, into network implementation and operation;
- Expanding the convergence of broadband fixed-line services, aiming for a 74% penetration rate in Brazil by 2028, six percentage points higher than the current level of 68%.
Telefónica Brasil anticipates generating an additional €615 million (approximately 3,000 Brazilian reals) from copper cable sales alone by 2028, as announced in May. This strategic plan also aims to elevate the convergence of broadband fixed-line services in Brazil, reaching a 74% penetration rate by 2028.
Key Questions and Answers
- What is Telefónica’s strategic plan regarding efficiency improvements? Telefónica aims to achieve €3 billion in efficiency enhancements by 2030, targeting both investment reductions and operational cost savings across key markets.
- Which markets are prioritized in Telefónica’s efficiency plan? Brazil, Spain, the United Kingdom, and Germany are identified as priority markets for efficiency improvements.
- What opportunities does Telefónica see for enhancing efficiency in Brazil? Opportunities include selling copper networks, digitizing services, integrating new technologies like AI, and increasing broadband fixed-line service penetration.
- What financial targets has Telefónica set for its Brazilian subsidiary? Telefónica expects its key financial indicators in Brazil to outperform inflation, with a projected €615 million gain from copper cable sales by 2028.
- What is Telefónica’s goal for broadband fixed-line service penetration in Brazil? Telefónica aims to achieve a 74% penetration rate for broadband fixed-line services in Brazil by 2028, six percentage points higher than the current level of 68%.
