Telefonica recently unveiled its bold five-year strategic plan, aptly named “Transform & Grow”. This roadmap aims to heighten growth, boost efficiency, and maximize long-term value in key markets such as Spain, Germany, the UK, and Brazil.
The plan focuses on modernization, operational simplicity, and innovation powered by AI. The objective is to elevate Telefonica to the status of a leading European operator with scalable profitability and a superior digital customer experience.
CEO Marc Murtra emphasized the company’s unique strengths, saying, “It has very solid and hard-to-replicate assets and capabilities. It also has several specific areas for improvement.” The goal is to transform these areas and seize new opportunities.
Key elements of the plan include a significant focus on customer experience. Investments in AI aim to improve network performance and service quality. By enhancing connectivity, Telefonica aspires to deliver a top-notch digital experience.
Further expansion in consumer (B2C) markets is planned, particularly in Spain and Brazil. Opportunities in the US and Germany are also targeted, hoping to bolster consumer revenue and increase household presence.
The business (B2B) sector also sees potential for development. Modernization of communication services and an increase in digital solutions are part of the strategy for Spain and Brazil.
Technological evolution is another emphasis. Investing in both fixed and mobile networks and upgrading IT systems are key components of this strategy, aiming to optimize customer value and performance.
Operationally, Telefonica is looking to streamline operations. This involves creating a leaner corporate structure and granting more autonomy to local and global markets.
Human capital is equally a focus. The plan includes attracting and retaining top talent, fostering a culture built on performance and innovation.
This strategic plan is expected to yield significant financial benefits. By 2028, Telefonica projects improvements in operational efficiency and €2.3 billion in savings, rising to €3 billion by 2030. Revenue growth is targeted at an annual compound growth rate (CAGR) of 1.5–2.5% through 2028, then accelerating to 2.5–3.5% by 2030.
However, the strategy doesn’t come without its challenges. The telco stresses the importance of European technological autonomy and the need for sector consolidation, warning that without regional market integration, Europe’s competitiveness may wane against the US and China.
While Telefonica moves forward with divestitures in Latin America, its focus remains on strengthening its core markets, highlighting a strategic pivot towards optimizing globalization while supporting regional strength.
