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Telefónica’s aims for its new IoT, cloud and security unit look challenging

Tom Rebbeck Research Director, Operator business services and IoT

"The target of an extra EUR2 billion a year from Telefónica Tech is a sign of the management’s ambition for this new division, but it will be difficult to achieve."

Telefónica announced what is probably its most significant change in strategy in over a decade on 27 November 2019. ‘New Telefónica’ will focus on four countries (Brazil, Germany, Spain and the UK), spin out its units in Latin America into a separate holding company and create an infraco. The most interesting development from a business services perspective is the creation of ‘Telefónica Tech’, a collection of the operator’s security, cloud and IoT and big data assets, focused mostly on the business market.