The Spanish incumbent is avoiding some of the publicity-grabbing 4G moves of its rivals.

Iain Morris, International Editor

March 26, 2015

2 Min Read
Telefónica Pursues 4G-for-the-Masses Strategy

Having just agreed to sell its O2-branded UK business to Hutchison Whampoa for £10.25 billion ($15.2 billion), Spain's Telefónica has been all over the news this week. (See Telefónica Seals $15.2B O2 Sale to Hutchison.)

That deal would allow Hutchison Whampoa Ltd. (Hong Kong: 0013; Pink Sheets: HUWHY) to merge its Three UK subsidiary with O2 and create the UK's biggest mobile operator by customer numbers -- "would" because a transaction that will leave the UK with just three mobile network operators could prove unacceptable to competition-keen regulatory authorities. Even if regulators bless the marriage, Telefónica and Hutchison reckon the approvals process could take another year.

In the meantime, Telefónica remains heavily focused on the rollout of 4G services -- not only in the UK but also in its other big European markets of Spain and Germany. In that regard, of course, Telefónica is no different from any other large European mobile operator. But it has appeared to be a less attention-seeking investor in 4G than many of its chief rivals.

Want to know more about 4G LTE? Check out our dedicated 4G LTE content channel here on Light Reading.

As our special report shows, that does not mean Telefónica has any guilty network secrets. Ian Miller, Telefónica's director of radio access technology, and Mike Smith, its head of global LTE activities, look disparagingly on some of the bandwidth boasts their competitors have made. Their strategy involves ensuring that as many customers as possible can benefit from a 4G service that is reliable and satisfactory. Carrier aggregation, advanced MIMO and VoLTE all figure in Telefónica's 4G plans, but the operator has a different perspective from others on the benefits such technologies will (or will not) bring. (Read Telefónica Aims High With Low-Band 4G Focus in the Prime Reading section of Light Reading.)

Following earlier sales of subsidiaries in the Czech Republic and Ireland, and the acquisition of E-Plus in Germany, Telefónica is primed for an assault on its core markets and plans to channel more into capital expenditure this year than last. It will be hoping its distinctive approach to 4G pays dividends. (See Telefónica Upbeat Despite Slump in Profits.)

— Iain Morris, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, News Editor, Light Reading

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About the Author(s)

Iain Morris

International Editor, Light Reading

Iain Morris joined Light Reading as News Editor at the start of 2015 -- and we mean, right at the start. His friends and family were still singing Auld Lang Syne as Iain started sourcing New Year's Eve UK mobile network congestion statistics. Prior to boosting Light Reading's UK-based editorial team numbers (he is based in London, south of the river), Iain was a successful freelance writer and editor who had been covering the telecoms sector for the past 15 years. His work has appeared in publications including The Economist (classy!) and The Observer, besides a variety of trade and business journals. He was previously the lead telecoms analyst for the Economist Intelligence Unit, and before that worked as a features editor at Telecommunications magazine. Iain started out in telecoms as an editor at consulting and market-research company Analysys (now Analysys Mason).

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