By The Rio Times | Created at 2025-03-04 08:19:21 | Updated at 2025-03-04 11:56:30
3 hours ago
At the Mobile World Congress 2025 in Barcelona, Telefónica CEO Marc Murtra made a compelling case for European telecom consolidation. He argued that without regulatory reforms allowing mergers, Europe risks losing its competitive edge to U.S. and Chinese tech giants.
Telefónica, a leading player in Spain and Latin America, faces mounting pressure from global competitors dominating cloud computing, AI, and 5G infrastructure. Telefónica closed 2024 with €41.3 billion in revenue, a 1.6% increase, and an adjusted net income of €2.3 billion.
The company also reduced its net financial debt to €27.2 billion. Its EBITDA rose by 1.2%, meeting financial targets despite economic challenges like inflation and rising costs in Europe.
Telefónica’s strong performance stems from its investments in 5G and fiber-optic networks, which now cover 91% of Spain’s population and significant portions of Germany, Brazil, and the UK.
The Spanish market remains Telefónica‘s cornerstone, generating €12.8 billion in 2024 revenue. Its Movistar brand leads with high customer retention rates, aided by robust fiber coverage reaching 95% of Spanish households.
Telefónica Pushes for European Telecom Consolidation Amid Global Tech Rivalry. (Photo Internet reproduction)However, domestic competition intensifies as low-cost providers gain traction, and the recent MásMóvil-Orange merger threatens Telefónica’s dominance with expanded 5G spectrum allocations.
Telefónica’s Strategic Push for Innovation
Globally, Telefónica has positioned itself as a leader in IoT connectivity through its Tech division. Its Kite platform earned top rankings in Kaleido Intelligence’s 2025 analysis for innovation in cybersecurity and AI-driven solutions.
This success underscores Telefónica’s ability to diversify beyond traditional telecom services. Despite these achievements, challenges loom large. U.S. tech giants like Amazon and Microsoft dominate cloud services, while Chinese firms such as Huawei lead in affordable network equipment.
Telefónica also faces regulatory hurdles within the EU that complicate market consolidation efforts essential for scaling operations. Murtra emphasized that Europe must act decisively to prevent further decline in global relevance.
Telefónica’s strategy includes lobbying for consolidation-friendly policies while focusing on technological leadership in AI and 5G. With a €0.30 per share dividend planned for 2025 and continued debt reduction efforts, the company aims to balance shareholder returns with long-term growth investments.
Telefónica’s future hinges on its ability to innovate and adapt while navigating fierce competition and regulatory constraints. Whether it can regain its former global prominence remains uncertain but critical for Europe’s telecom industry at large.
