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What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Wednesday, July 31, 2024

Network Slicing Now Generating Revenues for Telefónica


Telefónica reported a 2% year-on-year increase in total connections for the second quarter of 2024 to 392 million, with FTTH (fibre-to-the-home) connections up 12%. The telco also highlighted its efforts to lower capex, which was down 4% year-on-year in the first half of 2024 to 2.3 billion euros, excluding spectrum. That equates to 11.3% of sales. 

Telefónica Germany claims to have achieved the world's first software upgrade for a 5G core network’s user plane without interrupting ongoing operations, as well as becoming the first telecoms  operator worldwide to switch its core network to a public cloud (AWS). "This is a milestone in our multicloud strategy towards cloud-based and automated architectures, which will allow us to save investments in setting up computing capacities and, in addition, reduce costs and time to update core network functions, designed as software," the Madrid-based telco added.

Telefónica also said a higher degree of virtualisation is accelerating its deployments of FTTH and 5G: its 5G network now covers 89% of the population in Spain, 96% in Germany, 50% in Brazil and 65% in the UK. With the switch-off of the retail copper service in Spain earlier this year, the telco has been able to close a further 123 central offices, taking the total to 4,272 since 2014.

Telefónica has launched 5G standalone (SA) in Spain, Brazil, Germany, and the UK, allowing  enterprises to implement advanced mobile connectivity services. "Our network cores have been completely updated in the four core markets so they can manage all types of traffic (4G, 5G NSA and 5G SA).. we are already generating revenues from services provided on the 5G SA network as slicing services." Source: Telefónica statement

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