Telefónica reports a solid Q3, revenue up 11% yoy

In a context of global macroeconomic uncertainty, Telefónica reported Q3 revenue of €10,343 million, up 11.2%  yoy.

The company said it is strengthening its position in its main markets and exploiting new opportunities. The strong growth in revenues in the third quarter was driven by double digit increases in Brazil (+29%) and Hispam (+18.2%), as well as in Spain (+0.2%) and Germany (+6%), a pattern that is also reflected in the first nine months.

Net income amounted to €1,486 million in the first nine months of 2022.

The results obtained and the proactive management of the businesses, despite the unstable global scenario, make it possible for 

Telefónica confirmed its financial targets for 2022, revised upwards in the previous quarter. Telefónica also confirmed the shareholder remuneration for the current year, consisting of a dividend of €0.30 per share entirely in cash, distributed in two tranches of €0.15 euros, to be paid in December 2022 and June 2023. 

https://www.telefonica.com/en/communication-room/telefonica-increases-revenues-by-11-2-in-the-third-quarter-and-reaches-a-net-income-of-e1486-millions-up-to-september/

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Telefónica validates its net-zero ambitions

Telefónica claims to be the first telco in the world to obtain validation from the Science Based Targets (SBTi) initiative, according to the new ‘Net-Zero Standard’, of its net zero environmental targets, both in the short, medium and long term. 

Telefónica's Net-Zero targets include:

• a committment to achieving net zero Greenhouse Gas (GHG) emissions across the value chain by 2040, which means an effective reduction of at least 90% of all its emissions (direct and indirect) and neutralising the remaining emissions (less than 10%) through high quality carbon credits.
• an intermediate target of reducing absolute GHG emissions in Scope 1 and 2 by 80% and 56% in Scope 3 (value chain) by 2030.

The company says it has already decreased all its emissions by more than 40% (70% for Scope 1+2 since 2015 and 27% for Scope 3 since 2016).

“Protecting the environment is a top priority for Telefónica, which is why we are working to curb climate change and reverse biodiversity loss. The fact that our emissions reduction targets are validated by SBTi according to the new ‘Net-Zero Standard’ demonstrates the company’s commitment to leading the energy and digital transition as they go hand in hand to build a greener future for all,” said Elena Valderrábano, Global Chief Sustainability (ESG) Officer.

https://www.telefonica.com/en/communication-room/telefonicafirst-telco-in-the-world-with-net-zero-targets-validated-by-sbti/

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Telefónica and Ericsson demo automated slicing in 5G Standalone

Telefónica and Ericsson have demonstrated end-to-end, automated network slicing in 5G Standalone, including Dynamic Radio Resource Partitioning.

The lab test was carried out at 5TONIC, a Madrid-based open research and innovation laboratory focused on 5G technologies, founded by Telefónica and IMDEA Networks. The proof-of-concept covered different use cases including a 360-video production in motion in collaboration with technology start-up YBVR, remote control of an automated guided vehicle (AGV), and gesture recognition in collaboration with Spanish SME Fivecomm.

The network slicing for enterprise demo was carried out on Android 12 and 13 Beta powered smartphone devices. The demo proved that the onboarding of a network slice, from core to radio, may be configured and deployed in less than 35 minutes thanks to the solution’s automation capabilities. All the use cases executed needed a specific and complex service configuration, therefore full automation is a key success factor to turn network slicing concept into a reality and accelerate time to market.

Telefónica said the most relevant capabilities of network slicing technology that have been validated are:

• Automation in the provision and life cycle management of end-to-end network slices.
• Network Slicing service assurance.
• Definition of different scenarios for the traffic prioritization in a network slice, such as Radio Resource Partitioning (RRP) that enables the sharing of radio resources between use cases with different service requirements.
• Simultaneous access of a handset to different network slices, having the possibility to select the traffic sent to the different network slices.

Telefonica aims to accelerate the network slicing capabilities across its networks as well as in the industry. Through its program called LIME, Telefonica is collaborating with Ericsson as a key partner to further develop network slicing as a technology that will bring to life a variety of new 5G applications and services

“Ericsson has achieved a key milestone by demonstrating fully-automated deployment of end-to-end network slices (from RAN to Core) in cooperation with Telefónica, at 5TONIC lab. The deployed network slices will secure dedicated resources in the radio access network as well as in the Core for satisfying specific needs of selected use cases, enabling that Telefónica meets new customer demands on a zero-touch operation. Network Slicing is key to accommodating new use cases leveraging 5G, with the promise to provide new capabilities to a variety of users and enterprises with minimal or no manual intervention”, Jorge Navais, Global Account Manager of Telefónica, said.

“Bringing together the end-to-end ecosystem required for network slicing to thrive as a product is key for Telefonica and the rest of the telco industry. We are proud of being one of the first operators to demonstrate the benefits and differentiators of network slicing to our customers thanks to Radio Resource Partitioning and automation for full end-to-end slicing life cycle management. We look forward to continued collaboration with our partners and the rest of the industry to make slicing a commercial success for all”, Cayetano Carbajo, Director of Core & Transport in Telefonica CTIO, said.

https://www.telefonica.com/en/communication-room/telefonica-and-ericsson-pioneer-end-to-end-automated-network-slicing-5g-sa/

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Telefónica and NTT DATA demo private 5G for logistics management

Telefónica and NTT DATA are executing a private 5G proof of concept (PoC) with CIE Automotive, a global automotive supplier. 

At its facilities in Itziar (Guipúzcoa), a 5G intralogistics management platform has been developed and is being implemented as an integrating and enabling solution for the automation of the transport of finished products from the end of the production line to the warehouse.

The objective of the solution is to increase the flexibility, efficiency and traceability of internal logistics processes through the intelligent management of multiple sensors and mobile devices, such as AGVs (automated guided vehicles) and AMRs (autonomous mobile robots).

Jon Ezkerra, R&D project coordinator of the CIE Automotive group, highlights that “The proof of concept being developed in collaboration with Telefónica and NTT Data will be validated in one of the automated welding cells for the manufacture of fuel rails at the CIE Norma plant located in Itziar (Gipuzkoa) and will connect through the use of 5G technology with the plant’s management system to perform intra-logistics movement via AGVs, will allow connection through the use of 5G technology, with the plant’s management system to carry out intra-logistical movement by means of AGVs, establishing the continuous flow of supply and collection of finished product packaging for stacking at height in the warehouse.”

Andrés Escribano, director of New Business and Industry 4.0 at Telefónica Tech, said: “This initiative will allow us to bring logistics automation solutions to many of our customers in a simple and flexible way. The application of 5G connectivity will help to solve the challenges faced in this field of Industry 4.0.”

https://www.telefonica.com/en/communication-room/telefonica-and-ntt-data-integrate-5g-in-cie-automotives-internal-logistics/

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Telefónica pursues circular economy plan for its telecom gear

Telefónica is pursuing a circular economy plan for the reuse of its telecommunications equipment among its Group operators and with other third parties. The goal is to offer a second life to devices. 

The plan is for each operator to publish and visualise available equipment to promote its reuse, supported by a digital platform and a simple operating model that facilitates the movement of equipment between the countries where the Group operates, especially in Latin America. When internal reuse is not possible, MAIA makes it possible to connect with multiple technological partners to facilitate the sale of this equipment and thus extend its useful life.

“Every year more than 100 billion tonnes of resources enter the economy and only 8.6% are recycled. This is an unsustainable situation that we all need to reverse with more circular processes and supply chains. MAIA is an example of how by bringing together the best technological and operational capabilities we can carry out this transformation that has allowed us to create an ecosystem of collaboration between companies and partners to substantially increase the reuse of equipment”, says Fernando Valero, Global Supply Chain Director at Telefónica.

The MAIA project began at the end of 2020 and is currently present in all its operators. Thanks to this initiative, Telefónica has managed to reuse more than 73,000 pieces of equipment to date, aligning itself with the sector’s goal of being a Zero Network Waste company by 2025 through the reuse, sale of refurbished equipment and recycling of 100% of our network equipment.

https://www.telefonica.com/es/sala-comunicacion/telefonica-presenta-maia-una-plataforma-para-impulsar-la-reutilizacion-de-sus-equipos-de-red/

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Telefónica Hispam picks Mavenir for cloud-native IMS core

Telefónica Hispam (Hispanoamérica) has selected Mavenir's cloud-native IMS Core for fixed and mobile networks across Mexico, Colombia, and Chile.

Mavenir said the transition to its cloud-native IMS platform will allow Telefónica Hispam to evolve all fixed and mobile voice services and modernize operations. The solution will be deployed on TCloud, Telefónica’s private telco cloud infrastructure.

Alejandro Ghianni, Planification and Engineering Director at Telefónica Hispam said, “At Telefónica, we appreciate that core network functions must be modernized to support network evolution, and virtualized architectures will need software that supports both VoLTE and 5G Voice. We are very excited to embark on this network transformation journey with Mavenir.”

Javier Gavilan, Mavenir’s Chief Technical Officer CALA region said, “Only a cloud-native network, evolved into a fully web-scale platform, can meet the requirements for a successful 5G transformation. Mavenir’s cloud-native IMS Core can be deployed on any cloud eliminating legacy hardware platforms. This mobile-first architecture has been deployed in a variety of large multivendor environments including O2 Telefónica in Germany and Virgin Mobile O2 in the UK. We are very pleased to have been awarded this important project by Telefónica Hispam.

https://www.mavenir.com/press-releases/telefonica-selects-mavenir-for-cloud-native-ims-core/

Telefónica builds cloud native IoT with Mavenir packet core and AWS

Monday, February 15, 2021  Mavenir, Telefonica  

Telefónica is preparing to launch a managed IoT connectivity service based Mavenir’s packet core solution and AWS’s cloud infrastructure. Mavenir's cloud native functions will be hosted in AWS. Mavenir said the use of the cloud enables advanced, new functionalities for end users that were not previously possible: local data processing/storage, direct connectivity to other cloud services, and global low latency. The new service is managed...

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Telefonica validates O-RAN xHaul transport link with Keysight

Telefonica accomplished the first validation of an open radio access network (RAN) xHaul transport link using Keysight's test tools.

xHaul is a unified fronthaul and backhaul networking infrastructure. It creates a common packet-based transport network for flexible and software-defined reconfiguration of networking elements in a service-oriented unified management framework. Mobile operators, such as Telefonica, are implementing O-RAN compliant xHaul transport architectures to reconfigure and share the network quickly and cost-effectively, to streamline delivery of 5G services.

“Keysight’s 5G test tools enable Telefonica Open Testing and Integration Centre (OTIC) to characterize xHaul transport links in accordance with O-RAN WG9 test specifications and advance its O-RAN xHaul interoperability test plans,” said Scott Bryden, vice president and general manager at Keysight. “Keysight’s solutions for emulating real-life Ethernet traffic conditions enable verification of the functionality and reliability of O-RAN xHaul transport architecture.” 

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Telefónica increases its stake in Telxius Telecom to 70%

Telefónica and Pontegadea are increasing their stake in Telxius Telecom, a global telecommunications infrastructure company, by acquiring a 40% stake in Telxius Telecom, previously held by KKR.

With this transaction, Telefónica will increase its stake to 70% and Pontegadea will increase its stake to 30%. The acquisition is carried out for an estimated amount of EUR 215.7 million, pending, among others, the corresponding adjustments derived from the sale of Telxius’ tower business to American Tower in 2021.

Telxius Telecom has one of the largest subsea cable networks in the world, extending 94,000 kilometres via leading subsea systems such as Marea, Brusa and Mistral, as well as SAm-1, the system that connects the United States with Latin America.

Telxius Telecom provides direct connectivity to the internet with a coverage of 93 points of presence and 27 landing stations in 23 countries. In addition, Telxius Telecom offers an extensive range of capacity services, colocation and security services.

Telefónica sells 10% stake in Telxius to long-term partner

Monday, July 30, 2018    

Telefónica will sell a 9.99% equity stake in Telxius, its infrastructure arm, to Pontegadea for a total of 378.8 million euros.  This transaction represents a price of 15.2 euro per share of Telxius. Telefónica said the deal incorporates a long-term partner in a holding company that controls its infrastructure arm.  The sale has been structured via Telefónica’s subsidiary, Pontel Participaciones, which owns 60% of Telxius’ capital stock....

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Telefónica’s CEO elected chair of GSMA

José María Álvarez-Pallete, chairman and CEO of Telefónica, has been elected Board Chair of GSMA. He will serve through December 2022. Orange Group’s Stéphane Richard vacates the role after three years’ service.

As Board Chair, Mr Álvarez-Pallete will oversee the strategic direction of the GSMA, with the support of Board Deputy Chair, Rima Qureshi, Executive Vice President and Chief Strategy Officer of Verizon. The GSMA Board comprises the world’s largest operator groups and smaller independent operators with global reach.

“We very much appreciate the support and guidance that Stéphane provided during his term. His leadership was steady and supportive throughout a challenging period,” said Mats Granryd, Director General, GSMA. “As we look forward, we remain committed to our vision to unlock the power of connectivity so that people, industry, and society thrive. It is with great pleasure that we welcome José María as he joins us to support that vision for the coming year.”

“I’m very proud to join the GSMA as Chairman of the Board, representing the global mobile ecosystem. Technologies like 5G, edge computing, cloud, cybersecurity, AI and IoT, have redefined the way society operates and interacts online, paving the way towards metaverse, web3 and a new digital era”, said Telefónica’s Chairman and CEO, José María Álvarez-Pallete. “However, increased digitisation must include responsible leadership to drive growth, job creation, sustainability, and accelerate digital inclusion. I look forward to supporting the GSMA drive these critical issues, and many others, with the GSMA Board.”

https://www.gsma.com/newsroom/press-release/gsma-board-elects-new-chair/

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Video: How TIP's Private Mobile Framework can Transform 5G Use Cases

https://youtu.be/BNNCm7gQaug

In this engineering discussion, David Martín Lambás, Senior Manager – Connectivity Innovation at Telefónica & Chair of TIP’s 5G Private Networks Solution Group and Sriram Subramanian, Global System Integrator Ecosystem Manager at Facebook & Technical Lead of TIP’s 5G Private Networks Solution Group, discuss how TIP’s diverse set of ecosystem partners provide an immersive end-to-end user experience for private network deployments.

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Telefónica to migrate its Oracle databases to Oracle Exadata

Telefonica España will migrate the bulk of its Oracle Database systems to Oracle Exadata Cloud@Customer, building a dedicated cloud platform on-premises to support provisioning and delivery of new services, as well as Telefonica’s mission-critical operational and commercial systems including its BSS and OSS platforms and applications, business intelligence systems, CRM, billing and revenue management.

The collaboration is part of a multi-year initiative by Telefonica to consolidate the technology infrastructure that underpins its communications network into a shared, open-standard platform designed to support its growing digital services portfolio, including new services around Internet of Things (IoT) and 5G, and services co-hosted with ISVs and network partners.

Oracle Exadata Cloud@Customer is an on-premises deployment option of Oracle Exadata Cloud Service that is delivered as a managed cloud service in Telefonica’s own data centers, enabling Telefonica to consolidate mission-critical systems in a single platform while complying with data residency regulations, meeting latency requirements, and helping to significantly reduce operational costs.

“Digitalization and connectivity are reshaping how we work and live, and Telefonica is transforming its business to support our customers in this new world. As we tap into these new opportunities, we need to consolidate and simplify our technology infrastructure to make us nimbler, more agile and more adaptable, and this is where our collaboration with Oracle comes in,” said Fidel Jesús Fernández, Director, Technologies and IT Transformation, Telefonica España. “Oracle Cloud@Customer provides us with the flexibility we need to build a robust, extensible cloud platform in our own data centers that is scalable and elastic to meet the changing needs of our business.”

https://www.oracle.com/news/announcement/telefonica-and-oracle-announce-collaboration-to-accelerate-cloud-adoption-2021-09-27/

Telefónica chooses IBM, Red Hat, Juniper for UNICA Next 5G core

Thursday, September 23, 2021  IBM, Juniper, Telefonica  

Telefónica will use IBM intelligent automation software and services to implement UNICA Next – Telefónica's first-ever, cloud-native, 5G core network platform.Specifically, Telefónica has engaged IBM Global Business Services, a leading systems integrator and the digital transformation services and consultancy arm of IBM, Red Hat and Juniper networking to deploy the cloud-native platform. The platform is planned to be a new open-standard open-networking...

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Telefónica chooses IBM, Red Hat, Juniper for UNICA Next 5G core

Telefónica will use IBM intelligent automation software and services to implement UNICA Next – Telefónica's first-ever, cloud-native, 5G core network platform.

Specifically, Telefónica has engaged IBM Global Business Services, a leading systems integrator and the digital transformation services and consultancy arm of IBM, Red Hat and Juniper networking to deploy the cloud-native platform. The platform is planned to be a new open-standard open-networking technology compliant platform that will be deployed across multiple central, regional, and distributed data centers offering low latency and high bandwidth, while able to deliver services in an agile manner. UNICA Next data centers are planned to be deployed starting in October 2021 and its scalable architecture is designed to address ETSI and other relevant industry standards.

The new network is built on IBM Cloud Pak for Network Automation, Red Hat OpenShift, and Juniper Networks Apstra and QFX technology aligned to deliver streamlined end-to-end orchestration and operations. 

IBM says the integration of its automation software  with UNICA Next allows for intent-driven orchestration supporting the end-to-end lifecycle management of different network cloud elements and network functions, including 5G core. 

"Building out the UNICA Next platform with its next-generation network architecture shows how important it is to build the infrastructure now to support the deployment of 5G. 5G has the potential to support thousands of use cases and applications for consumers and enterprises in all industries. Our collaboration will not only help us to harness the potential of 5G, but also prepare for the future through a hybrid-cloud led technology and business transformation. With IBM, Telefónica is combining the latency and bandwidth advancements of 5G with the customization and intelligence of the cloud: we anticipate the results will be transformative in Europe and beyond," said Javier Gutierrez, director of strategy, network, and IT development for Telefónica.

https://newsroom.ibm.com/2021-09-23-Telefonica-Chooses-IBM-To-Implement-Its-First-Ever-Cloud-Native-5G-Core-Network-Platform

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O2 completes Germany's first 5G Voice over New Radio call

O2 has become the first German mobile network operator to make a Voice over New Radio (VoNR) call purely over its live 5G network. 

Currently, voice calls in all German mobile networks are completed using 3G and 4G technologies.

VoNR is currently possible in the live network at O2's first 5G mobile stations in Potsdam and Munich.

"Voice over New Radio will enable our customers to make optimum use of the network in the future. We are introducing the technology for voice transmission much faster than with the LTE standard. With 4G, the simultaneous transmission of voice telephony and data took about five years after the introduction of the mobile standard; with 5G, it took only a few months. We are proud to be the first operator to succeed with VoNR on our 5G network," says Mallik Rao, CTIO of Telefónica / O2.

https://www.telefonica.de/news/press-releases-telefonica-germany/2021/09/voice-over-new-radio-vonr-o2-succeeds-in-making-germanys-first-voice-call-on-the-5g-live-network.html

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Telefonica to acquire Cancom UK&I for managed services

Telefónica Tech agreed with Cancom Group to acquire Cancom UK&I for EUR 398 million euros valued at a multiple of 13.5x EV/OIBDA (based on 2021E). 

Telefónica Tech said the deal will strengthen the capabilities of its Cloud and Cybersecurity division in the UK and Ireland. Cancom UK&I has 600 professionals, joining the Telefónica Tech team, and a broad and strong digital services portfolio including professional services and managed services in advanced IT, cybersecurity and multi-cloud solutions.

Cancom UK&I is a certified Microsoft Gold Partner for 9 competencies, including Azure Expert MSP, CSP Direct, LSP, Surface Silver Partner and FastTrack and it also has other relevant partnerships with leading technology vendors. Cancom UK&I reached EUR 155 million in revenues in 2020, of which Managed and Professional Services represent more than 50% and are growing differentially. Cancom UK&I will reach EUR 190 million of revenues in 2021 with an adjusted EBITDA margin of 15.4% and revenues related to Managed Services and Professional Services revenues project differential growth rates of 20% and 26% CAGR18-21, respectively.

José Cerdán, CEO of Telefónica Tech, said: “Having the Cancom UK&I talented team join Telefonica Tech, will strengthen our Cloud and Cybersecurity capabilities in the UK and Ireland, with a strong focus on Professional and Managed services, and combined with our value proposition and global reach allows us to position ourselves as the strategic partner for our B2B customers in their digital transformation strategy".

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Telefónica Colombia and KKR target FTTH

Telefónica Colombia and KKR, a global investment firm, will form a joint venture company for the deployment of FTTH in Colombia.

The new company aims to cover 4.3 million Passed Property Units (PDUs), including all the relevant markets in the country over the next three years.

Under the agreement, 60% of the joint venture will be owned by KKR and 40% by Telefónica Colombia. Telefónica will contribute its current FTTH infrastructure, which already reaches 50 cities and municipalities and which -at the end of the first quarter of 2021- covered 1.2 million homes.

The deal values the new company at US$ 0.5 billion (approximately 20 times proforma OIBDA and US$ 410 Enterprise Value per PDU), Telefónica Colombia will receive a payment of US $0.2 billion and will be eligible for a performance-based consideration of up to US $0.1 billion.

Telefónica Movistar Colombia currently has more than 380,000 customers using its fiber service with symmetrical speeds of up to 500 Mbps.

 

Alfonso Gómez Palacio, CEO of Telefónica Spanish-speaking Latin America, explained that "the agreement with KKR will accelerate the deployment of fiber optic in Colombia at an unprecedented rate, in a market that has shown enormous potential in the last year. In addition, fiber will create opportunities for thousands of homes and businesses that see digitalization as an opportunity for development. This is one more step by our company to lead FTTH services in Latin America".

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American Tower completes first tranche of Telxius Towers acquisition

American Tower Corporation closed the first tranche of its Telxius Towers acquisition, comprised of nearly 20,000 communications sites in Germany and Spain, for total consideration of approximately €6.2 billion (approximately $7.6 billion at current foreign currency exchange rates). 

The closing was funded by a combination of cash on hand and borrowings under the Company’s revolving credit facilities and term loans. Approximately 4,000 additional rooftop communications sites in Germany are expected to close in the third quarter of 2021.

Tom Bartlett, American Tower’s Chief Executive Officer stated, “We are excited to close on these high-quality, well-located assets and are ready to quickly and efficiently integrate them into our existing European portfolio. We expect to utilize our newly augmented leadership position in Germany and Spain to drive strong, sustainable, long-term growth while delivering best-in-class service to existing and new tenants as they enhance mobile broadband connectivity for their customers. As one of the largest independent communications infrastructure providers in Europe, we believe we are now optimally positioned to benefit from accelerating 5G deployments across the region through a combination of organic growth, new builds and the potential for selective future acquisitions.”

American Tower to acquire Telxius Towers for €7.7 billion

Wednesday, January 13, 2021  American Tower  

Telefónica agreed to sell Telxius Towers to American Tower Corporation for approximately €7.7 billion (approximately $9.4 billion at current foreign exchange rates), subject to customary closing adjustments. 

The deal consists of approximately 31,000 existing communications sites in Germany, Spain, Brazil, Chile, Peru and Argentina. In addition, American Tower expects to spend approximately $500 million to construct a committed pipeline of approximately 3,300 new sites in Germany and Brazil through 2025.

Following this operation, American Tower becomes Telefónica's leading supplier in both Europe and Latin America and maintains its status as a partner in strategic projects in Brazil, Argentina and Colombia.

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Telefónica partners with Microsoft on private 5G + MEC

Telefónica Tech signed a collaboration agreement with Microsoft on Azure Private Edge Zone.    

The integration combines Telefónica' Private 5G connectivity with Microsoft's Edge Computing capabilities on customer premise. The companies are targetting digital transformation opportunities for clients to enable the automation and control of their industrial processes.

“This collaboration agreement between Telefónica Tech and Microsoft, by taking advantage of the capabilities and experiences of both companies, will allow us offering to our clients a framework for the creation, deployment and operation of industrial solutions and their private communications in an integrated way inside and outside the factory. This framework is addressing the needs of those enterprises willing to deploy demanding industrial use cases over secure and performant private connectivity, focusing on simplicity, replicability and scalability,” says Gonzalo Martín-Villa, CEO of IoT and Big Data at Telefónica Tech.

“Together with Telefónica Tech, we can enable enterprises to leverage 5G to accelerate transformation and drive innovation across industrial scenarios within their own private networks,” said Yousef Khalidi, corporate vice president, Azure for Operators at Microsoft. “Partners like Telefónica Tech are critical in helping us meet the on-premises needs of our industrial customers. We look forward to working together to help our customers leverage this platform to drive transformation in their businesses and the industry as a whole in the near future”.

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Telefónica acquires 20% stake in Nabiax in exchange for 4 data centers

Telefónica will acquire a 20% in Nabiax, a colocation and hosting partner owned y Asterion Industrial Partners, in exchange for four data centers (two in Spain and two in Chile). Asterion and its coinvestors, who retain the remaining 80% of the share capital in Nabiax.

Nabiax operates eleven data centers that it acquired from Telefónica in 2019.

The transaction includes an agreement for housing services in the four DC’s under equivalent terms and conditions as those established in the prior transaction (initial term of ten years). The transaction does not include the sale of servers owned by Telefónica, nor the management and access to customers hosted on them. Telefónica will therefore continue to provide and manage the services that it has been offering to its customers from these DCs and will maintain the direct relationship with such customers.

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Telefónica and CDPQ create a neutral fiber wholesale operator in Brazil

Telefónica Group and Caisse de dépôt et placement du Québec (CDPQ), a global investment group, announced plans to create a neutral and independent optical fibre wholesale network in Brazil.

FiBrasil Infraestrutura e Fibra Ótica SA ("FiBrasil") will be a 50-50 joint venture with the Telefónica Group's 50% participation held through Telefônica Brazil ("Vivo") and Telefónica Infra, the infrastructure arm of Telefónica Group 

Operating as a neutral wholesale company, FiBrasil is set to deploy and operate fibre-optic networks in selected mid-sized cities across Brazil outside the state of Sao Paulo, and to offer FTTH wholesale access to all telecommunications service providers, enabling them to offer these services to their end customers. Starting with a portfolio of 1.6 million Homes Passed ("HPs") contributed by Telefônica Brasil, FiBrasil aims to expand its network to reach around 5.5 million HPs within 4 years, accelerating the transition to fibre and contributing to the country's technological deployment. Telefônica Brasil will also be the anchor tenant for FiBrasil.

CDPQ is investing a total of up to R$1.8 billion (CA$408 million) in this joint venture, comprising both primary and secondary payments. CDPQ's projected capital contributions and the expected leverage to be raised by FiBrasil provide a fully funded business plan to accomplish the company's deployment targets. FiBrasil is set to become a leading operator in the Brazilian fibre space, with the backing of a strong set of shareholders.

Ángel Vilá, Chief Operating Officer at Telefónica Group, commented, "We are very excited about this opportunity to partner with CDPQ, with whom we share the ambition to accelerate fibre roll-out in Brazil, contributing to Vivo's growth plans and to the country's digital development. We are delighted to put our FTTH expertise and commercial capabilities behind this partnership, joining forces with CDPQ as a key element for success, strengthening our value proposition and reinforcing our growth strategy."

"Vivo will be FiBrasil's anchor tenant, consolidating itself as the leading convergent operator in the country. The transaction is framed within our strategic pillars, allowing Vivo to improve time-to-market, while at the same time enabling a more efficient use of funds," said Christian Gebara, Telefônica Brasil's CEO. Gebara also mentioned that "fibre will be a key driver for Vivo's future top-line growth aiming at reaching at least 24 million HPs by the end of 2024, and FiBrasil will be Vivo's platform for expanding coverage to greenfield cities."

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Telefónica tests Huawei's 600G and 800G WDM

Telefónica has completed a trial of single-wavelength 600G and 800G transmission using equipment from Huawei.

The testing used Huawei OSN 9800 devices on Telefónica's photonic mesh network in Madrid spanning 47 km. 

Juan José Marfil, the director of transport and IP connectivity at Telefonica, pointed out: "These pilots on the photonic meshes, in which signals are transmitted over optical channels without the need to switch to the electrical domain, are important milestones that build on the 400G speed that was achieved in 2019, also in Madrid. The goal is to begin implementing the 400G speed this year and subsequently optimize the Fusion IP Network to meet the needs for higher capacity and speed in view of the exponential growth of both connected devices and data transmission."

https://www.huawei.com/en/news/2021/2/telefonica-600g-800g-osn9800-madrid

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