‘Telecommunications operators are the key to the digital world’. José María Álvarez-Pallete

José María Álvarez-Pallete, COO of Telefónica, highlighted the key role of telecommunications operators in the construction of the digital world, as other ecosystems revolve around them, such as those of applications, contents, operating systems or devices. He also stressed the ability of the telecoms to provide customers with the things they most value, especially from the point of view of the privacy and security of communications.

These aspects – security and privacy – are part of the Internet experience that customers seek, together with the demand for innovative services as well as quality and price, and “it is precisely the telecommunications operators that are in a position to meet these expectations, based on transparency and non-discrimination in the context of the new ecosystem”, said the COO of Telefónica, who also stressed that the industry represents a third of the hipersector and actively contributes to revenues’ generation.

In his participation on the first day of the 27th Telecommunications Forum of the UIMP, Álvarez-Pallete also said that the European industry must gain in competitiveness, because, “despite the great growth in traffic in recent years, Europe is the only region of the world in which operators’ revenues are not growing”. He also underlined the need to consolidate the sector in Europe and to simplify the regulatory environment. In this regard, he illustrated his presentation by comparing the 339 mobile operators in Europe to the 9 in the United States or the 3 in China, as well as the 27 regulatory frameworks that coexist in the EU compared to the unique regulation that governs the industry in the United States and also in China.

With regard to Telefónica, José María Álvarez-Pallete dedicated part of his presentation to outlining the bases of the transformation process which the company has already embarked upon, aimed at its complete conversion into a Digital Telecom, in order to offer people the best technology and thus provide them with the Internet experience they seek.

In this regard, from among the different pillars that have underpinned this transformation process, he highlighted the greater capillarity achieved by the company, as well as the improvement of the network and the systems and the adoption of a strategy of sharing in the roll-out of networks with other operators, which has led to an improvement in the infrastructure for users and greater efficiencies and cost savings for the company.

Another of the pillars of this change is to offer new, simpler services, or the commitment to alternative ecosystems. The COO of Telefónica highlighted the new commercial model implemented by the company in countries such as Spain, Germany, the United Kingdom, Brazil or Chile, as well as the successful convergent offers which are helping it to advance in this same direction, such as Movistar Fusión in Spain or O2 Refresh in the United Kingdom.

José María Álvarez-Pallete also underlined the sustained investment effort made by Telefónica as a particularly important part of this process and he compared the investment of €9.5 billion made by the company in 2012 to the combined incomes of two Internet giants, Yahoo and Facebook, which totalled €7.9 billion.

Finally, leading technological innovation is another of the keys in Telefónica’s transformation process, with successes such as Wayra, which, in two years, has opened academies in 12 countries and has accelerated 244 start-ups; Amérigo, present in 4 countries and with invested capital of around €300 million; or theCampus Party, the largest digital technology, leisure and culture event in the world, a new edition of which begins precisely today in London.

Finally, in his presentation in Santander, the COO of Telefónica highlighted just how important it is for telecommunications operators to change the way they see the world in order to take advantage of the greatest revolution in the history of mankind: the digital revolution.

Related posts