Telefónica embarks on major restructuring | Major Businesses | Business
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In an act that its CEO says will prepare the global telco for no less than the next hundred years, Telefónica has revealed major shake up to its corporate structure.

Telfonica 28Nov2019The plan seeks to prioritise markets where the company says that it can be relevant and grow sustainably in the long term, boost its growth potential while leveraging the value of its infrastructure, and increase agility and improve efficiency.

Explaining the rationale for the move, Telefónica chairman and CEO José María Álvarez-Pallete (pictured), said that the company was immersed in “a technology revolution, but also a social revolution that will alter our immediate future.”

He predicted that this revolution would generate billions of euros of value for the company. “In recent years we have launched different initiatives to capture the benefits of digitalisation, achieving important advances to date. Now, to become more agile and accelerate the execution of our strategy, we must evolve our operating model.”

There are five key elements to thee move: a focus on key markets of Spain, Brazil, the UK and Germany; the creation of Telefónica Tech; the creation of Telefónica Infra; operational spin-off of Hispanoamérica; and the redefinition of the corporate centre.

With 50.01% of Telxius as its main asset, the new Telefónica Infra will bring together Telefónica’s shareholdings in telecom infrastructure vehicles, serving third-party operators and incorporating partners. Telefónica Tech will bring together digital businesses with high growth potential. It aims to become a key partner helping other companies undertake their digital transformation.