CSP Analysis Report: Telefonica

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Great vision, hard sweat for results


This 147-page PowerPoint style PDF report (and accompanying Excel data pack) examines the transformation efforts of the Telefonica Group in moving to be a Telco 2.0 Service Provider. The company’s markets in Europe and Latin America are evaluated and Telefonica’s strategy and competitive position assessed. 

The report examines Telefonica’s service offerings in detail and explores the successes and challenges in launching the new Telco 2.0 services unit, Telefonica Digital. Partnerships with other industries are evaluated in the Value Network section as well as collaborations with other CSPs such as WEVE, BlueVia and the M2M multi-operator alliance. 

The report highlights key strengths and shortcomings – including technology transformation challenges and the impact of the company’s high debt burden – and key strategic priorities outlined.

Telefonica Telco 2.0 Benchmark analysis

Who is it for?

The Telco 2.0 Transformation Index is the world’s first benchmark of Communications Service Providers provides benchmarking and deep analysis, the index reports are designed for: 

  • Telcos and CSP operators (including those covered, those operating in the same markets and telcos operating in other markets)

  • For vendors either partnering with or wishing to partner with these telcos

  • Investors seeking to understand where to place their bets with CSPs

Key Benefits

  • Determine the key drivers of telecoms industry transformation

  • Clarify Telefonica’s performance in specific areas of transformation

  • Understand Telefonica’s relative strengths and weaknesses

  • Learn from Telefonica’s transformation activities

  • Prioritise transformation projects at your organisation

  • Determine how your solutions can support Telefonica

  • Improve your value propositions for Telefonica

  • There’s more on the benefits and packages here

Format and pricing
  • 147-page pdf document (PowerPoint format) with internal and external html links
  • 100+ charts and tables
  • Excel data pack with financial, operational, market (competitor) data + STL Partners analysis

Contact us for pricing on +44 (0)207 247 5003 or [email protected]

Content overview

Introduction and Exuective Summary

Background: Defining Telco 2.0

  • The declining Telco 1.0 business model
  • The role of Telco 2.0 in bridging the digital ‘hunger gap’
  • Key Telco 2.0 skills, relationships, operational and financial models
  • The financial benefits of shifting from Telco 1.0 (Infrastructure business) to Telco 2.0 (Infrastructure + Platform and/or Product Innovation)

Telco 2.0 Transformation Index Overview

  • Methodology
  • Data sources

Executive summary

  • Summary findings
  • Pen portrait – company transformation position and key opportunities and challenges
  • SWOT
  • Strategic recommendations for accelerating Telco 2.0 transformation

Marketplace Section

Figure 1: Example output - Telefonica's position in key markets

Telco 2.0 Transformation Index - Example Output - Telefonica Marketplace Competition and Positioning
  • Summary findings
  • Market economics and digital maturity
  • Telecoms market regulation by country
  • Telecoms market structure and growth by country
  • Market share position by country/segment
  • Share gain/loss analysis by country/segment
  • Strategic positioning by country/segment
  • Operating company portfolio analysis
  • Competitor analysis by market/segment
  • Customer base analysis (pre-pay and post-pay) vs competitors
  • Customer churn rates vs competitors
  • Brand strength vs competitors

  • Customer engagement vs competitors

Service Offerings Section

Figure 2: Example output - Tuenti, an ambiguous adventure for Telefonica

Telco 2.0 Transformation Index - Example Output Tuenti Telefonica ambiguous adventure
  • Summary findings

  • 6 service offering categories defined:

    • Core services

    • Vertical industry solutions

    • Infrastructure services

    • Embedded communications (including M2M)

    • Third-Party business enablers (including identity, marketing, advertising, payments)

    • OTT services

  • Telco 2.0 services strategies defined – ‘Happy Piper’ and ‘Service Provider’

  • Telefonica’s Telco 2.0 services strategy

  • Summary performance by service offering category

  • Evaluation of specific services within each service category

Value Network Section

Figure 3: Example output - BlueVia, a growing Telco 2.0 play

Telco 2.0 Transformation Index - Example Output Telefonica Value Network
  • Summary findings

  • Management team evaluation

  • Corporate vision and goals

  • Culture

  • Organisation structure: fit with Telco 2.0 strategy, maturity, execution

  • Third-party partnerships across 7 industries:

    • Advertising and retail

    • Media and content

    • Network and IT

    • Financial services

    • Start-ups

    • Developers

    • Internet players

  • Partnerships with other CSPs: 

    • Strategy

    • Execution:

    • Vision and intent

    • Conformity with STL Partners’ CSP collaboration principles

    • Evidence of results

  • Strategy

Partnership Strategy

  • Partnership Model

  • Alignment of vision and values

  • Alignment of risk and effort

  • Alignment of rewards

  • Evidence of results

Best-Practice examples

Technology Section

  • Summary findings
  • Technology objectives and priorities
  • Commercial and technology alignment
  • Technology skills, processes, and partnerships
  • Technology execution:  speed and ability to meet objectives
  • Technology positioning vs other CSPs

Finance Section

Figure 4: Example output - Telefonica Telco 2.0 performance summary

Telco 2.0 Transformation Index - Example output - Telefonica Telco 2.0 performance summary
  • Summary findings
  • Financial performance: profitability, return on investment, debt position, capital intensity
  • Finance and Telco 2.0 strategy alignment: use of Telco 2.0 metrics
  • Revenue Model: ability to protect Telco 1.0 revenues and grow Telco 2.0 revenues
  • Cost Model: Capital investment and operating cost levels including revenue per employee

Format and pricing

  • 147-page pdf document (PowerPoint format) with internal and external html links

  • 100+ charts and tables

  • Excel data pack with financial, operational, market (competitor) data + STL Partners analysis

Contact us for pricing on +44 (0)207 247 5003 or

Return to the Telco 2.0 Transformation Index home page, or see more on the Benchmarking Report, Telefonica, VodafoneAT&T, Verizon, Singtel and Ooredoo deep-dive reports.

Key industry terms, products and technologies referenced: 

ADSL, BlueVia, broadband, CDN, cloud computing, customer churn, digital advertising, digital commerce, digital services, eHealth, enterprise services, FTTH, GPON, IAAS, identity, Instant Servers, IPTV, LTE, M2M, M2M Multi Operator Alliance, managed hosting, managed services, messaging, mobile advertising, mobile payments, Movistar Fusion, new business models, O2 Moneycard, O2 Priority, O2 Wallet, O2 WiFi, OC-48, OTT, payments, Pay TV, PoC, post-pay, pre-pay, SAAS, SIP trunking, SMBs, SMS, Sonora, strategic services, Telco 2.0, Telefonica GDN, Terra, Tuenti, Tu Go, Tu Me, VDSL, voice, VoIP, Wanda, WEVE.