The telecom operators Movistar, Orange and Vodafone have agreed to form an alliance to bid together for the deployment of 4G and 5G mobile networks in rural areas that will be financed with European reconstruction funds. Specifically, Movistar, Vodafone and Orange would build between 3,000 and 4,500 new radio sites, adding an extra 15% and 23% to the existing ones.
Upon completion of the transaction, Telefónica and Caisse de dépôt et placement du Québec will each hold 50% in FiBrasil under a co-control governance model. Telefónica Group’s 50% participation will be held through Telefônica Brazil (“Vivo”) and Telefónica Infra, the infrastructure arm of Telefónica Group, each holding a stake of 25%. Operating as a neutral wholesale company, FiBrasil is set to deploy and operate fibre-optic networks in selected mid-sized cities across Brazil outside the state of Sao Paulo.
Telefónica’s board of directors has cut the dividend payable in 2021, which will now be made in two payments of 0.15 eur/share in June and December (previously 0.20 eur/share), while the “scrip” option is maintained. The first payment of 0.15 eur/share will be in December 2021. Telefónica’s Executive Chairman, José María Álvarez-Pallete, has defended the reduction of the company’s dividend, which he considers to be an appropriate price as it maintains a very high dividend yield compared to the Ibex and the sector as a whole.
Telefónica and Liberty Global reached an agreement in early May last year to merge their UK businesses and create the market-leading fixed and mobile operator in the country. According to the UK Competition and Markets Authority (CMA), the combination of Telefónica subsidiary and Virgin could lead to higher prices for wholesale fiber and mobile services. Thus they announced an investigation into the merger and its possible consequences before giving the go-ahead to the deal.
Renta 4 | Telefónica announced today that it has signed an agreement with American Tower to sell Telxius’ tower business in Europe (Spain, Germany) and LatAm (Brazil, Peru, Chile and Argentina). The price of the deal is 7.7 billion euros, payable in cash. It includes the sale of some 30,722 sites to be carried out in two separate operations. Although American Tower still has little exposure in Europe (some 30,000 towers after the Telxius purchase), it represents the main threat to the leadership position of another Spanish company, Cellnex, with over 103.000 sites
Telefónica and Allianz have reached an agreement for the creation of a joint venture to deploy Fibre-to-the-Home (FTTH) in Germany.Both companies will each hold 50% under a co-control governance model. It will be an independent open-access wholesale operator focused on deploying fibre in rural and semi-rural areas of Germany to tap the potential of Europe’s largest broadband market.
Banco Sabadell | Telefónica is in the final stages of negotiating an agreement to set up an independent company, which would be responsible for the deployment of a fiber optic network in Germany. The investment in the project is about 5 billion euros. Telefonica would structure the project through its subsidiary Telefonica Infra, which plans to sign an accord with an infrastructure fund and a group of financing banks around the end of October.
The consortium participated by Telefonica, along with its two rivals Mexico’s América Móvil and Italy’s TIM, has qualified as a stalking horse or first bidder in the race to buy Brazil’s Oi’s mobile business. The qualification as first bidder gives the consortium the right of first refusal if a higher competitive offer is made.
As of today, Telefónica’s 5G network is available in all the autonomous communities, with outstanding hyperconnectivity in European terms as a result of its combination with fibre optics. According to Telefónica chairman José María Álvarez-Pallete “5G will bring huge benefits for Spain. This is a golden opportunity for our country to lead the Fourth Industrial Revolution”. This move will enable 75% of the Spanish population to obtain access to this new technology by the end of the year.
Telefónica presents its proposal for a Digital Deal in Spain. In line with the 2018 Manifesto, the deal promotes the establishment of game rules adapted to the new post-COVID reality to avoid inequalities in the digital world. Spain’s digital reinvention could have an annual impact of approximately 1.8% of GDP until 2025.