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Telefónica Announces Strategic Review Under New Leadership Amidst European Consolidation Push
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Strategic reflection to be shared in the second half of the year.
Telefónica, a major player in the telecommunications sector, is embarking on a strategic review under the leadership of its new executive president, Marc Murtra. Appointed at the end of January, Murtra has outlined his vision for the company, emphasizing the need to adapt to the rapidly changing geostrategic and technological surroundings. This review aims to strengthen TelefónicaS position as a key agent in both the Spanish and European economies, with a particular focus on digital infrastructure and European strategic autonomy.
Murtra, in his first presentation of financial results, expressed gratitude for the Council’s confidence and acknowledged the groundwork laid by Jose María Álvarez-Pallete. He stated his ambition to make it even more relevant
by reinforcing its standing in the digital infrastructure market. This ambition comes at a time when the telecommunications landscape is undergoing meaningful shifts, particularly in Europe.
The strategic review is a direct response to these shifts. In recent months we have seen changes in the geostrategic environment and technological disruptions that force our strategy to accelerate in a sector that is necessary for technological sovereignty in Europe,
Murtra stated. he emphasized the importance of adapting to these movements, particularly the fragmentation of telecommunications in Europe.
Murtra believes that Europe must allow consolidation to guarantee a healthy and competitive sector.
This consolidation is seen as crucial for reinforcing European strategic autonomy in an increasingly competitive global market. The conclusions of this strategic reflection are expected to be shared in the beginning of the second half of this year.
Winds of change in Europe blow and start a strategic reflection. We are not going to be observers,we will be part of the change we see coming,
Murtra declared during his first press conference as president of Telefónica.
Priorities of the Strategic review
Throughout the session, Murtra elaborated on the key priorities guiding the strategic review. These include:
- A review based on the logic of the industry.
- Maintaining focus on the key and core business.
- Impulse of consolidation in Europe to reinforce european strategic autonomy.
- Creation of value for shareholders and interest groups.
Murtra reiterated the importance of adapting to the evolving landscape. We are going to do a strategic review of all businesses to see how to adapt to the new situation.We will always do what the advice says,
he affirmed. While signaling a continuation of the company’s existing trajectory, he also acknowledged the need for adaptation. There is continuity, coherence and respect for what has been done, which is a very good job, and will continue having it. But we are in a new and different environment and we want to adapt,
Murtra explained.
The Push for European Consolidation
Murtra’s vision is heavily influenced by the political and commercial movements of major global powers, such as the United states and China, as well as recent calls from European political leaders for a more united, reinforced, and autonomous European Union. He emphasized the critical role of telecommunications in achieving this autonomy.
An critically significant part of strategic autonomy goes through telecommunications. Through the mobile all our communications, preferences, acquisitions, bank facts or romantic life pass,
Murtra stated. He further added, Our vision and analysis lead us to say that there will be drastic changes in Europe. We are going to analyse at what speed and when and how do they happen.
He highlighted the need to consolidate the telecommunications industry and reduce fragmentation within Europe.Europe has 41 operators with more than half a million customers, in the united States there are 5, and China is a much less fragmented market,
he pointed out. Murtra expressed Telefónica’s ambition to play a leading role in this consolidation. We do not want to be a passive actor. We have a knowledge, a role and a story that allow us to help and see a clear opportunity to lead,
he said.
While Murtra did not specify the ideal number of telecommunications operators for Europe, he emphasized that significant technological and business changes in recent years have been driven by companies that have a relevant scale beyond a Member state of the European Union, has healthy margins and with the ability to invest in the long term.
telefónica’s Ambitions and Strategic Focus
From these statements, it is indeed clear that Murtra’s ambition is to position telefónica at the forefront of this consolidation, establishing it as a leading agent in Europe. However, he acknowledged that significant work remains to be done to achieve this scenario. He did not disclose whether Telefónica is currently engaged in conversations regarding potential operations.
Regarding the strategic reflection, Murtra clarified that it is indeed not expected to involve Telefónica’s entry into new industries, such as defense or aerospace. He also indicated that, for the time being, no changes are anticipated in the company’s management team. We are going to adapt the strategy to the changes we see that they are happening and depending on what we believe should happen to meet the objectives and for what is good for the sector,
he emphasized. We will analyze the markets well to have solid and enterprising strategy and assume risks where necessary.