Telefónica headquarters in Madrid.
|Traded as|| BMAD: TEF |
|Predecessor||Compañía Telefónica Nacional de España (CTNE)|
|Founded||19 April 1924|
| Jose Maria Alvarez-Pallete Lopez |
(Chairman and CEO)
|Products|| Fixedline telephony |
|Owner|| ITT (1924-1945)|
Government of Spain (1945-1999)
Public float (1999-)
Number of employees
|Subsidiaries|| Movistar |
China Unicom Limited
Telefónica, S.A. (Spanish pronunciation: [teleˈfonika] ) is a Spanish multinational telecommunications company headquartered in Madrid, Spain. It is one of the largest telephone operators and mobile network providers in the world. It provides fixed and mobile telephony, broadband and subscription television, operating in Europe and the Americas.
As well as the Telefónica brand, it also trades as Movistar, O2 and Vivo. The company is a component of the Euro Stoxx 50 stock market index.As of May 2017, Telefónica was the 110th largest company in the world, according to Forbes.
The company was created in Madrid in 1924 as Compañía Telefónica Nacional de España (CTNE) with ITT as one of its major shareholders.
In 1945, the state acquired by law a share of 79.6% of the company.This stake was diluted by a capital increase in 1967. Until the liberalisation of the telecom market in 1997, Telefónica was the only telephone operator in Spain it still holds a dominant position (over 75% in 2000).
Nowadays, Telefónica is present in more than 20 countries around Europe and America.
Telefónica is a 100% listed company with more than 1.5 million direct shareholders. Its share capital currently comprises 4.563.996.485 ordinary shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao and Valencia) and on those in London, New York, Lima, and Buenos Aires. The five major stockholders include:
Telefónica is the second largest corporation in Spain, behind the Santander Group.It owns Telefónica de España which is the largest fixed phone and ADSL operator in Spain, Telefónica Móviles, the largest mobile phone operator in Spain (under the Movistar brand), and Terra Networks, S.A., an Internet subsidiary. Spain now has the most expensive fibre-to-home network in Europe, as of April 2016.
Telefónica was the parent of Telefónica Deutschland, which held two alternative IP carriers. The two ISPs, mediaWays and HighwayOne merged in January 2003 after having been purchased by Telefónica in 2001 and February 2002 respectively.
On 26 January 2006 Telefónica completed its £17.7 billion (€25.7 billion) acquisition of the UK-based operator O2 which also provided mobile phone services in Germany under the O2 brand.Following the purchase, Telefónica merged Telefónica Deutschland and O2 Germany to form the current business Telefónica Germany.
Telefónica Germany, purchased competitor E-Plus on 1 October 2014. As part of the purchase, Telefónica reduced its stake in its subsidiary to 62.1%. Integration continues as of August 2015, but the now merged network is Germany's largest in customers.
On 31 October 2005, O2 agreed to be taken over by Telefónica, with a cash offer of £17.7 billion, or £2 per share.According to the merger announcement, O2, which provided mobile phone services in the UK, Ireland, Germany and the Isle of Man (uniquely to the O2 group Manx Telecom also offered fixed-line services), retained its name and continued to be based in the United Kingdom, keeping both the brand and the management team. The merger became unconditional on 23 January 2006 and O2 became a wholly owned subsidiary of Telefónica. Manx Telecom was sold by Telefónica Europe in June 2010.
In January 2015, Li Ka-shing entered into talks with Telefónica to buy O2 for around £10.25 billion, aiming to merge it with his subsidiary Three.The acquisition was officially blocked by the European Commission on 11 May 2016, which argued that the merger would reduce consumer choice and lead to a higher cost of services Telefónica began to seek a stock market flotation of the business instead.
Announced on the 7th May 2020, Liberty Global owner of Virgin Media and Telefónica owner of O2 have agreed to merge their U.K. businesses in a deal worth £31bn and form one of the UK’s largest entertainment and telecommunication companies to rival the BT Group.
In France, since 2011, Telefónica has a joint venture with the French telecommunications company Bouygues Telecom, part of the Bouygues group, to offer global telecommunication services packages to multinational companies. This cooperation was expanded in June 2015 through the creation of a separate joint venture company named Telefónica Global Solutions France, with its own marketing and sales teams offering Telefónica and Bouygues Telecom services packages to corporations.
Telefónica operates the Movistar mobile phone brand throughout Latin America. In Mexico it occupies a distant second place and it is the largest in Chile, Venezuela, Brazil, and Peru.
Telefónica owns Telefónica de Argentina which is the largest fixed-line operator in the country. It provides broadband, local and long distance telephone services in southern part of the country as well as the Greater Buenos Aires area. The Telefónica Group has been in the country since 1990. The mobile business is run by Telefónica Móviles through Movistar, a local subsidiary.
Telefónica's largest fixed-line operation in South America is in Brazil, where it provides broadband, local and long distance telephone services in the aforementioned state, which alone represents the highest GDP of South America. It also owns a majority stake in the Brazilian mobile operator Vivo, having agreed on 28 July 2010 to buy Portugal Telecom's stake in the firm for €7.5 billion, after increasing its original offer by €1.8 billion over three months of incident-rich negotiations.The Telefónica group has been in the country since 1996 when it acquired CRT, a fixed-line and mobile operator in the southern part of the country. The landline division is currently part of Brasil Telecom. In July 1998 acquired Telesp, the telephony operator of the Telebrás system in the state of São Paulo, forming Telefônica Brasil.
In 2009, after four big "blackouts" on Telefónica's broadband "Speedy", ANATEL ordered Telefónica to stop sales of its broadband service until improvements were made on the infrastructure to provide better-quality service.After the release of sales of broadband internet in August 2009, ANATEL expects the company's service investments to keep on par with the sales. On 24 July 2010 Telefónica announced that the number of Speedy subscribers had exceeded three million people.
Telefónica owns Telefónica Chile, formerly CTC (Compañía de Telecomunicaciones de Chile, formerly known as Compañía de Teléfonos de Chile) which is the biggest fixed-line operator and internet service provider in the country. The Telefónica Group has been in the country since 1989. The mobile business is run by Telefónica Móviles through a local subsidiary. On 25 October 2009, Telefónica Chile changed its name to Movistar, including cellphone, landline, satellite TV, and internet.
On 18 April 2006, Telefónica's president Cesar Alierta signed an agreement with the Colombian government to buy 50% and one share of the state-owned communications company, Colombia Telecomunicaciones (TELECOM).With this sale, Telefónica became the largest Colombian land-line operator, and also gained an important presence in the local, long-distance and broadband market. The mobile business is run by Telefónica Móviles through the brand movistar. It is unknown what will happen with their previous established subsidiary Telefónica Empresas, being most probable a merger with TELECOM. The company is now known as Telefónica - Telecom.
Telefónica signed a contract for 15 years (extendable for 10 additional years) on 12 May 2011 with the government of Costa Rica. It started operations in 2011 under its Movistar branding.
In 2000, Telefónica acquired a 26.5% stake in Tricom when it purchased part of the shares Motorola had obtained in 1993.
After acquiring 100% of OTECEL S.A. (Bellsouth), Telefónica Móviles Ecuador started its operations on 14 October 2004 as Movistar. It offers mobile solutions for the Ecuadorian market and is one of only three mobile operators in Ecuador. Telefónica in Ecuador has started offering 3G service from the second half of 2009.
After acquiring 100% of Paysandú S.A., Telefónica Guatemala Centro América started its operations in 1998 as Telefónica Movistar and just Telefónica for landlines. In 2004, acquired 100% of BellSouth Guatemala, relaunching mobile operations as movistar in 2005, with mobile services based on CDMA technology, in 2004 as Telefónica Movistar launch national service with GSM/GPRS technology, and CDMA 1x EV-DO for data. It offers mobile solutions for the Guatemalan market and is one of only three mobile operators in Guatemala, international operator as Millicom (TIGO) and América Móvil (Claro). Telefónica Móviles Guatemala (renamed in 2005) offers services on UMTS/HSPA since June 2009, and it was the last operator to launch commercial services on this technology, with coverage in all major cities.
Telefónica started its operations in Panama in 2004 as Telefónica acquired 100% of Bellsouth Panama. Since then it has operated using the name Movistar for mobile services. It migrated from CDMA technology used by Bellsouth to GSM 850. It also offers 3G using UMTS 850 and UMTS 1900. In 2015 it launched LTE with coverage expanding in Panama City, Arraijan, Chorrera up to Buenaventura Beach.
The Telefónica Group has been in the country since 1994 and owns the largest fixed-line operator in the country. The local subsidiary offers local, long-distance, and broadband services nationwide. The mobile business is run by Telefónica Móviles through a local subsidiary. The mobile telephone business goes by the name Movistar and competes with major provider Claro. Their main offices are located in Santa Beatriz on Av. Arequipa 1155.
Since January 2011, Telefónica has operated in the market under the Movistar brand.
Telefónica in Puerto Rico has presence through Telefónica Empresas, Telefónica Larga Distancia - TLD, Telefónica International Wholesale Services - TIWS (formerly Emergia) and Atento. Telefónica Moviles, through its Movistar brand, had presence in Puerto Rico until mid-2007 that they sold the Puerto Rico network to a private equity group who renamed it Open Mobile.
In late 2004 Telefónica took over the operations of Telcel Bellsouth in Venezuela, the first and largest mobile operator in the South American country at the time. After re-branding as Movistar, its CDMA2000 EvDO was progressively replaced by a GSM UMTS 3G network. Telefónica is currently rolling out 4G LTE in the country.
Based in Miami, Florida, Telefónica USA, Inc. provides services to U.S.-based multinational companies that have operations in Latin America and Europe. Telefónica USA also operates the KeyCenter™, a data center in Miami built to withstand category 5 hurricanes,from where the company supports Business Continuity and IT services for Enterprise customers in South Florida.
In 2009, China Unicom agreed to a $1Bn cross-holding with Telefónica.In January 2011, the two partners agreed to a further $500 million tie-up in each other. Following completion in late 2011, Telefónica will hold a 9.7% stake in China Unicom, and China Unicom will own 1.4% of the Spanish firm.
In 2018, China Unicom and Telefónica establish a new partnership to combine their services and networks in the internet of things, so as to enable their clients to deploy IoT products and services in China, Europe and Latin America with a single global IoT SIM card.
In 2005, Telefónica bought Český Telecom (Czech Telecom), the former state-owned Czech phone operator which still dominates the Czech fixed-line market. As part of this deal Telefónica also gained its 100% subsidiary Eurotel, one of three mobile phone operators in the Czech Republic. Starting 1 July 2006, both companies were merged into one legal entity and renamed Telefónica O2 Czech Republic. In 2011, the company was renamed Telefónica Czech Republic and in 2013, it was announced that Telefónica would sell its stake in the company to PPF. Under the terms of the sale, the company was allowed to continue to trade under the O2 brand for a maximum of four years.In August 2017, the brand license agreement was extended to 2022, with a 5-year extension to 2027 available.
During 2006, Telefónica won the tender to become the third mobile phone operator in Slovakia, under the O2 brand. It began providing services on 2 February 2007 under the name Telefónica O2 Slovakia, s.r.o. It initially launched providing only a prepaid service but in mid-2007 began to sell contract phones. The company was sold along with Telefónica Czech Republic to PPF.
O2 in Ireland was purchased by Telefónica as part of its acquisition of O2 plc in the UK in 2005. Telefónica Ireland has become the second largest mobile phone operator in Ireland, operating a GSM/EDGE and high-speed HSPA+ wireless broadband network to residential and business customers through its "O2" brand. Telefónica Ireland also provide fixed broadband to business customers.
It was announced on 24 June 2013 that Telefónica had agreed to sell its O2 Ireland mobile business for at least €780 million ($1 billion) in cash to Hutchison Whampoa's subsidiary 3.O2 was merged into Hutchison Whampoa's subsidiary Three Ireland in March 2015
Telefónica currently owns 46% of Telco, the holding company that controls 22% of Telecom Italia, Italy's former government–owned telephone company. In late 2003, Telefónica announced its intention to acquire the entirety of Telco by January 2014, potentially becoming Telecom Italia's largest shareholder. The plan, was however challenged by the Brazilian competition authority since Telefónica and Telecom Italia, with Vivo and TIM respectively, are the two largest telephone companies competing in Brazil. Subsequently, Telefónica confirmed in September 2014 that it intended to sell its shares in Telecom Italia following the purchase of Global Village Telecom (GVT) in Brazil from Vivendi.Telefónica sold its shares in the business to Vivendi as part of the sale of GVT in June 2015.
The firm provides fixed, mobile and data telecommunications, digital platforms and ICT services to the B2B sector (MNC, Enterprise, SME and Wholesale) through its Telefónica Business Solutions unit.
Customers: Telefónica lists, among other, the following as existing customers: Inditex, Scottish Power, BBVA, Endesa, Ferrovial and FCC.
Full network operations: Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Germany, Guatemala, Mexico, Nicaragua, Panama, Peru, Puerto Rico, Spain, United Kingdom, Uruguay and Venezuela
Commercial offices: Austria, Belgium, Bulgaria, China, Czech Republic, Denmark, Estonia, France, Greece, Hungary, Ireland, Italy, Netherlands, Poland, Portugal, Romania, Singapore, Slovakia, Sweden, Switzerland and USA
Remote operations and network points of presence: Finland, Latvia, Lithuania, Morocco, Norway and Slovenia
Strategic and industrial alliances: China Unicom
It has an extended service reach in 129 additional countries.
|Sales||31 052||28 411||28 399||30 322||37 882||52 901||56 441||57 946||56 731||60 737||62 837||62 356||57 061||50 377||47 219|
|OIBDA||12 804||11 724||12 600||13 215||15 276||19 126||22 824||22 919|
|Net results||2 106||-5 577||2 203||2 877||4 446||6 233||8 906||7 592|
|Net debt||28 941||22 533||19 235||20 982||33 574||52 145|
Source :OpesC Quarterly Report Jan - Dec 2008 - page 9
In football, Teléfonica is an official sponsor for several national teams like Spain (Movistar+) in Europe and Brazil (vivo), Mexico, Colombia, Peru or Venezuela in America.
O2 are the main sponsors of the England national rugby team.
From 2011, they are to sponsor the Spanish UCI ProTour cycling team known as Movistar Team.
Teléfonica, through Movistar, was the title sponsor of Yamaha Motor Racing from 2014-2018, a motorcycle racing team in MotoGP, and was also the title sponsor of Suzuki's factory team from 2000-2002 Sito Pons' Honda team from 1997-1999 and Fausto Gresini's Honda team from 2003-2005.
Within Formula One, Telefónica was a major sponsor of the Renault F1 Team until Fernando Alonso's departure to McLaren in 2007, and were title sponsors of the Spanish Grand Prix from 2006 to 2010. Through its acquisition of O2, Telefónica also indirectly sponsored the BMW Sauber F1 Team. F1 Racing estimates these sponsorships amount to $18 million, $15 million and $23 million respectively.
They also sponsored the Ford Focus WRC during seasons 2000-2002 when Spanish rally driver Carlos Sainz drove for the team. The sponsorship said Telefónica Movistar on it and the stickers were on the front bumper, the rear 3-quarters and the rear spoiler. As Sainz moved to Citroën team, Telefónica followed and sponsored Citroën rally team in 2003.
Movistar- and Telefónica-sponsored teams contested the round-the-world Volvo Ocean Race in the 2005-06, 2008-09 and 2011-12 events.
Telefonica sponsors, through its Movistar brand, the Movistar Riders eSports team.
This section needs to be updated.June 2016)(
Telefónica has received several fines due to convictions over unfair competition, abuse of its position as dominant provider, and antitrust violations through the Commission of Telecommunications, European Commission, and Spanish tribunals. These fines include:
As of 2008, Telefónica had in court two more fines, with a value of 793 million euros.
On 5 July 2007, the European Commission ordered Telefónica to pay a record antitrust fine of almost €152 million for activities in the Spanish broadband market which, according to European Union competition commissioner Neelie Kroes, "harmed Spanish consumers, Spanish businesses and the Spanish economy as a whole, and by extension Europe's economy".
Several consumer groups in Spain have reported unnecessary delays in cancelling Telefónica's ADSL service. These consumer groups also claim that services continue to be billed after being cancelled and that service cancellation requests are ignored.This has led Spanish people to organize themselves in consumer groups such as the "Asociación de Internautas" and user communities like "Bandaancha" in order to defend themselves from Telefónica's abuses, and to give support and help to each other in their various complaints about Telefónica's unfair practices.
The practices are claimed to include the complex process involved in cancelling lines.These line cancellation procedures are justified by Telefónica as a way of "defending customers against hoaxes". Furthermore, in areas where ADSL lines are scarce, there are also reports of customers who claim to have had their service cancelled or inexplicably transferred to another customer although they have paid their bills. This practice is considered by some to be used by Telefónica in certain areas of Spain where there are few broadband connections.
In February 2010, Telefónica CEO Cesar Alierta expressed in a meeting at Bilbao, Spain that his company intends to charge Google and other search engines for the use of their network. Aliertacomplained that such search engines were benefiting from the platform without contributing to the company's expenses and that such a trend will change in the near future. Additionally he said that Telefónica will seek to push its own content.
Telefónica is a supporter of the Hybrid Broadcast Broadband TV (HbbTV) initiative that is promoting and establishing an open European standard for hybrid set-top boxes for the reception of broadcast TV and broadband multimedia applications with a single user interface, and has run pilot HbbTV services in Spain.
Telefónica's Wayra subsidiary first launched in Latin America and Spain in 2011 to provide seed investment and mentoring to new companies. Since its inception, Wayra has backed over 300 companies including Trustev, Venddo, Cloudwearand NFWare.
As of 1 December 2014, the Firefox web browser includes the Firefox Hello WebRTC feature, [ clarification needed ] Telefónica and was also co-developed by Telefónica.that allows real-time voice and video online chats. Firefox Hello is powered by
Telefónica Dynamic services offers mobile-money using Sybase 365 Mobile wallet systems, with a service-centre based in Tel-Aviv.
In September 2017, Nokia and Telefónica signed an agreement in order to evaluate technologies enabling an efficient network evolution to 5G in line with Telefónica's business objectives.
On 12 May 2017, Telefónica computer's network was critically attacked by a malware known as WannaCry ransomware attack.
Communications in Gibraltar comprise a wide range of telephony systems, Internet access, broadcasting and satellite control. There is also printed and online media. Regulation of telecommunications and broadcasting are the responsibility of the Gibraltar Regulatory Authority (GRA), established by means of the Gibraltar Regulatory Authority Act in 2000.
Eircom Limited, trading as eir, is a large fixed, mobile and broadband telecommunications company in Ireland. The now privatised company, which is currently incorporated in Jersey, traces its origins to Ireland's former state-owned monopoly telecommunication provider Telecom Éireann and its predecessors, P&T and before the foundation of the state, the telecommunications division of the GPO. It remains the largest telecommunications operator in the Republic of Ireland and has overseas operations focused on the business and corporate telecom markets in Northern Ireland and Britain. The company was in majority state ownership until 1999, when it was privatised through a floatation on the Irish and New York Stock Exchanges.
China United Network Communications Group Co., Ltd. or China Unicom is a Chinese state-owned telecommunications operator of China. China Unicom is the world's fourth-largest mobile service provider by subscriber base.
SK Telecom Co., Ltd. is a South Korean wireless telecommunications operator; it is part of the SK Group, one of the country's largest chaebols.
O2 (typeset as O2) is a global brand name owned by the Spanish telecommunications company Telefónica. The company uses the O2 brand for its subsidiaries in the United Kingdom and Germany. Since 2018, it is also used as a secondary brand in Spain.
Vodafone Ireland Limited, a wholly owned subsidiary of the Vodafone Group, is a mobile phone network and broadband provider in the Republic of Ireland. It was created when the Vodafone Group bought Eircell, the mobile arm of Telecom Éireann. As of September 2019, Vodafone has 26% of broadband subscribers, and 43% of mobile phone subscribers.
Telefónica Ireland was a broadband and telecommunications provider in Ireland that traded under the O2 brand (typeset as O2). O2 Ireland was previously called Esat Digifone when it was owned by Esat Telecommunications (and Telenor) from 1997 to 2006.
TIM S.p.A., also operating under the name Telecom Italia, is an Italian telecommunications company headquartered in Rome and Milan, which provides telephony services, mobile services, and DSL data services. It is the largest Italian telecommunications services provider in revenues and subscribers. It was founded in 1994 by the merger of several state-owned telecommunications companies, the most prominent of which was Società Italiana per l'Esercizio Telefonico p.A.,, the former state monopoly telephone operator in Italy.
Vivo, is a brand of Telefônica Brasil, a subsidiary of Telefónica and the largest telecommunications company in Brazil. It is headquartered both in São Paulo and Rio de Janeiro.
Oi, formerly known as Telemar, is the largest fixed telephone operator and the fourth mobile telephone operator in Brazil, being the third largest telecommunication company in Latin America. It is headquartered in Rio de Janeiro. Oi's major subsidiaries include Telemar and Brasil Telecom.
Movistar is a major telecommunications brand owned by Telefónica, operating in Spain and in many Latin American countries. It is the largest mobile phone operator in Spain with 22 million customers and 41.58% of market share, where it also markets landline, broadband and pay television (Movistar+). Its principal competitor in Latin America is América Móvil.
O2 Czech Republic (operating under the O2 brand) is a major integrated operator in the Czech Republic. It is now operating more than six million lines, both fixed and mobile, making it one of the Czech Republic’s leading providers of fully converged services. O2 Czech Republic operates a fixed and mobile network including a 3rd generation network, CDMA (for data), UMTS and EDGE, enabling voice, data and video transmission. O2 Czech Republic is also a provider of ICT services
Vitelcom Group was a Spanish manufacturer and distributor of consumer electronics, concentrating on the home entertainment and mobile phone markets. It also provided mobile phone content such as games.
The telecommunications industry in China is dominated by three state-run businesses: China Telecom, China Unicom and China Mobile. The three companies were formed by restructuring launched in May 2008, directed by Ministry of Information Industry (MII), Nationals Development and Reform Commissions (NDRC) and Minister of Finance. Since then, all the three companies gained 3G licenses and engaged fixed-line and mobile business in China.
ONO was a Spanish broadband communication and entertainment company, delivering integrated telephone, television and Internet services to its residential customers. In this segment, it has 3.7 million services contracted and over six million users.
Internet in the Czech Republic and Internet access are largely provided by the private sector and is available in a variety of forms, using a variety of technologies, at a wide range of speeds and costs. In 2013, 68% of Czechs were connected to the Internet.
This article is about the Internet in Spain.
Telefónica UK Ltd. is a telecommunications services provider in the United Kingdom, owned by the Spanish multinational corporation Telefónica, and is headquartered in Slough. With 34 million customers as of February 2020, O2 is the largest UK mobile network operator, followed by EE, Vodafone and Three.
Telefónica Germany GmbH & Co. OHG (pronounced [teləˌfɔnɪkaː ˈdʒœːɐ̯məniː]; also called Telefónica Deutschland[-ˈdɔʏtʃlant]) is a provider of broadband, landline and mobile telecommunications in Germany. The company trades as O2 (typeset as O2).
KeyCenter™ is a purpose built 173,500 sqft mission critical facility capable to withstand CAT5 Hurricanes.
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