Profile: Telefonica SA (TEF.N)
7 Mar 2014
Telefonica, S.A. (Telefonica), incorporated on April 19, 1924, together with its subsidiaries and investees operates in the telecommunications, media and contact center industries. Telefonica’s basic purpose is the provision of all manner of public or private telecommunications services, including ancillary or complementary telecommunications services or related services. The Company operates in three business segments: Telefonica Spain, Telefonica Europe and Telefonica Latin America. On October 26, 2010, it completed the acquisition of Portugal Telecom’s 50% interest in Brasilcel. On September 27, 2010, it acquired 50% of the interest of Brasilcel (a Dutch company that owns shares representing, approximately, 60% of the interest capital stock of Brazilian company Vivo Participacoes, S.A.). On February 16, 2010, it completed the acquisition of 100% of the interest of HanseNet Telekommunikation GmbH (HanseNet). In January 2010, the Telefonica Group, through its wholly owned subsidiary Telefonica Europe Plc, acquired 100% of the interest of Jajah Inc.
Telefonica is a diversified telecommunications group, which provides a range of services through modern telecommunications networks; focused on providing fixed and mobile telephony services, and present principally in Spain, Europe and Latin America. Telefonica Spain oversees the wireline and wireless telephony, broadband, Internet, data, broadband television, services operations and their development in Spain. Telefonica Latin America oversees the same operations in Latin America. Telefonica Europe oversees the wireline, wireless, broadband, services and data operations in the United Kingdom, Germany, Ireland, the Czech Republic and the Slovak Republic.
The principal services offered by Telefonica in the fixed businesses in Spain, Europe and Latin America are traditional fixed telecommunication services, Internet and broadband multimedia services, data and business-solutions services, and wholesale services for telecommunication operators. The fixed telecommunication services include public switched telephone network (PSTN) lines; integrated services digital network (ISDN) accesses; public telephone services; local, domestic and international long distance and fixed-to-mobile communications services; corporate communications services; supplementary services (including call waiting, call forwarding, voice and text messaging, advanced voicemail services and conference-call facilities); video telephony; business-oriented services; intelligent network services; leasing and sale of handset equipment, and telephony information services.
The Internet and broadband multimedia services include Internet service provider service; portal and network services; retail and wholesale broadband access through asymmetrical digital subscriber line (ADSL); naked ADSL ( broadband connection without the monthly fixed line fee); narrowband switched access to Internet for universal service, and other technologies; residential-oriented services (including instant messaging, concerts and video clips by streaming video, e-learning, parental control, firewall protection, anti-virus protection, content delivery and personal computer sales); television services, such as Imagenio, the Internet protocol television (IPTV) business, cable television and satellite television; companies-oriented services, like puesto integral o puesto informatico, which includes ADSL, computer and maintenance for a fixed price and VoIP services. Also, in some regions, (Spain and Brazil) the Company is providing services based on Fiber to the Home (FTTH), including a range of products and services. This line of products includes Internet access (up to 30 Mb), which allows Telefonica Spain to provide its customers with advanced IPTV services, such as high definition channels (HDTV), and in Spain, Multiroom (allowing clients to watch different television channels in different rooms) and Digital Video Recording (DVR).
The data and business-solutions services include leased lines; virtual private network (VPN) services, fiber optics services, the provision of hosting and application (ASP), service, including Web hosting, managed hosting, content delivery and application, and security services; outsourcing and consultancy services, including network management (CGP), and desktop services and system integration and professional services. The wholesale services for telecommunication operators include domestic interconnection services; international wholesale services; leased lines for other operators’ network deployment, and local loop leasing under the unbundled local loop regulation framework. It also includes bit stream services, bit stream naked, wholesale line rental accesses and leased ducts for other operators’ fiber deployment.
Telefonica offers a range of mobile and related services and products to personal and business customers. The principal services and products include Mobile voice services, Value added services, mobile data and Internet services, wholesale services, corporate services, roaming, fixed wireless, and trunking and paging. The Company’s principal service in all of the markets is mobile voice telephony. Customers in the markets have access to a range of enhanced mobile calling features, including voice mail, call hold, call waiting, call forwarding and three-way calling.
The data services offered it include Short Messaging Services (SMS), and Multimedia Messaging Services (MMS), which allow customers to send messages with images, photographs and sounds. Customers may also receive selected information, such as news, sports scores and stock quotes. It also provides mobile broadband connectivity and Internet access. Through mobile broadband and Internet access, the customers are able to send and receive e-mail, browse the Internet, download contents (such as games), purchase goods and services in m-commerce transactions and use its other data services.
The Company provides business solutions, including mobile infrastructure in offices, private networking and portals for corporate customers that provide flexible on line billing. It has roaming agreements, which allow the customers to use their mobile handsets when they are outside of the service territories, including on an international basis. It provides fixed voice telephony services through mobile networks in Venezuela, Argentina, Peru, Mexico, Ecuador, El Salvador, Guatemala and Nicaragua. In Spain and Guatemala, the Company provides digital mobile services for closed user groups of clients and paging services.
The Company competes with Orange, Jazztel, Vodafone plc, British Telecom, Colt, Spanish nationwide cable operator ONO, Vodafone Espana, TeliaSonera, America Movil, Telmex, Deutsche Telecom, KPN, UPC, Hutchison Whampoa Ltd, Telcel, Nextel, Iusacell, ETB, Nextel Peru, U:fon and Telecom Italia.
Edificio Central, Pl. 2
C/ Ronda de la Comunicacion s/n
MADRID MAD 28050
Company Web Links
- EU antitrust chief wary about market power of merging telcos
- Hutchison Whampoa's 2013 net profit up 20 percent, in line with estimates
- UPDATE 2-Telefonica sees turnaround after showing resilience in 2013
- Telefonica 2013 revenues fall 8.5 pct on Latin American currencies
- Telefonica eyes 1.5 bln euros savings with new business structure