Telefonica Sa · BME:TEF
Telefonica Sa — Telefonica S A — Investor Day (June 2018)
37 slides from Telefonica Sa's investor day presentation, Jun 19, 2018
Slide 1: Network and Systems evolution
Network and Systems evolution London, June 19th 2018 We choose it all
Slide 2: Network and Systems Evolution session
Network and Systems Evolution session Pablo Eguirón Global Director of Investor Relations
Slide 3: Key Objectives
Key Objectives Laura Abasolo Chief Financial and Control Officer
Slide 4: Key Objectives
Key Objectives • Growing demand and complex technology Network Transformation • Fiber and virtualisation, pillars of Dynamic networks • Data driven networks deliver top user experience and internal efficiency • Fiber deployment success story in Spain, a key competitive advantage • Shorter time-to-ma
Slide 5: Network and Systems Evolution
Network and Systems Evolution Enrique Blanco Global Chief Technology and Information Officer (GCTIO)
Slide 6: Telefónica is a platform company
Telefónica is a platform company Future Network and Systems as enablers that will allow us to be a reference in Digitalization 4th PLATFORM 3rd PLATFORM 2nd PLATFORM 1st PLATFORM 6
Slide 7: A path of great effort and consistency deploying infrastructure
A path of great effort and consistency deploying infrastructure Source: Telefónica 2017 Integrated Annual Report 7
Slide 8: New customer demand and technology trends: opportunities and challenges
New customer demand and technology trends: opportunities and challenges More technologies and Greater network heterogeneity Huge increase in data traffic spectrum bands • FTTx • Macro 1 • xGPON • Small, pico, femto, Global IP traffic • 5G micro cells (EB/month) 278 • TDD • FWA (Fixed x3 • mmWave Wir
Slide 9: Industrializing FTTH deployments; LTE and 5G; E2E Digitalization
1 2 Industrializing FTTH Advancing in LTE deployments deployments while preparing for 5G 3 4 Towards E2E Digitalization Building a global architecture leveraging on BSS and OSS and common data model to transformation expose capabilities 9
Slide 10: Industrializing FTTH deployments
Industrializing FTTH deployments
Slide 11: Telefónica is making a great effort in fixed Ultra Broadband deployments
Telefónica is making a great effort in fixed Ultra Broadband deployments 46 m 11 m UBB UBB Premises Connected Passed +13% Homes +20% yoy yoy • Spain is leader in FTTH in Europe • Users and coverage in Spain > Germany + France + Italy + UK Source: Telefónica. Results Q1 2018. UBB Premises Passed incl
Slide 12: Fiber industrialization in Spain has enabled more efficient deployment in HispAm
Fiber industrialization in Spain has enabled us to deploy more efficiently in HispAm Deployment cost reduction while improving Benefiting from knowledge and scale to accelerate quality, productivity and Time to Market deployments in HispAm Cost reduction Home Passed Cost -47% Home Connected Cost -22
Slide 13: Infrastructure ready to evolve fiber technologies for greater capacity
Infrastructure ready to evolve fiber technologies to achieve greater capacity in the future Hyperfast broadband means fiber FTTH deployment plans • Industrializing fiber rollout • Accelerating our coverage goals • Increasing speed • Improving user experience 2.5 Gbps 1.25 Gbps GPON Today 10 Gbps 10
Slide 14: Guaranteeing excellent connectivity by enhancing customer's equipment
Guaranteeing excellent connectivity by enhancing customer's equipment... Differential connectivity: We own our home strategy and our products excellent Wi-Fi quality and Smart Wi-Fi SW stack rd • Changing the relationship model (3 parties) • Up to 1 Gbps with the industry, creating a • Total Wi-Fi c
Slide 15: Moving forward to use smart devices ecosystem as a service platform
… and moving forward to use our smart devices ecosystem as a service platform at home Improving value for our customers Same service regardless the access + Open platform at home to provide new differential B2C and Open ecosystem Smart voice assistant B2B services SW stack Apps (3rd parties) (3rd pa
Slide 16: Evolving our video ecosystem to be ready for the market reality
Evolving our video ecosystem to be ready for the market reality Convergent TV ecosystem Next Set Top Box generation (Open Platform) • STBs portfolio simplification • FBB (Cable, XDSL, FTTX) • Device´s evolution (UHD, HDR,..) • MBB (3G, 4G) • All video services (DTH / CATV / IPTV / OTT) Management E2
Slide 17: Managing our legacy while advancing towards an All-IP Network
Managing our legacy while advancing towards an All-IP Network All-IP transformation Transforming our Transport Network • VoIP commercial offer in a transparent way for the customer HL1 PEERING LEVEL IP over Optics technology • Compaction and shutdown plans for PSTN • Spain pioneer in Central Office
Slide 18: Advancing in LTE deployments while preparing for 5G
Advancing in LTE deployments while preparing for 5G
Slide 19: Telefónica is advancing in LTE deployments in all our footprint
Telefónica is advancing in LTE deployments in all our footprint Total sites LTE 92% 66% >75k LTE Pop LTE Pop coverage coverage 3G/4G Sites with UBB 97% 19 Source: Telefónica. Results Q1 2018.
Slide 20: Evolving to 5G
Extending coverage and capacity to offer support to new services Evolving to 5G Moving towards a convergent UBB access 4.9G 4.5G eMBB 2017 2018 2019 2020 2021 IOT V2X x 10K Cellular Coverage New services Fiber • NB-IoT / LTE-M. IoT and Industry 4.0 Mobile WiFi • Extending 4G PoP coverage in all Oper
Slide 21: A strong Network Virtualization program: UNICA
A strong Network Virtualization program: UNICA, one of the first industrial Telco Clouds… • Available in 2017 in 4 Telefonica operations • Being deployed in 7 new markets along 2018 • 21 DCs in 11 local domains + 1 global domain Modular Open Secure Multi-site Elastic Multi-tenant 2017 Standard Cost
Slide 22: Future proof network designed to be agilely changed and operated automatically
… enabling a future proof network designed to be agilely changed and operated in an automated fashion 2017 - 2020 2021 - 2025 5G UNICA@CO Fixed Access UNICA@MicroDC UNICA@CO OPA-F Infrastructure UNICA@DC UNICA Management UNICA@MicroDC UNICA@CO Radio Access OPA-M UNICA@CO Virtual network Virtual Core
Slide 23: Driving additional value with new network capabilities
Driving additional value and bringing new business opportunities with all these new network capabilities Network Slicing Edge Computing Network as a Service (NaaS) • E2E logical (virtual) networks that • Placing computing and storage • Sale of network services to third consist of a mix of shared and
Slide 24: Towards E2E Digitalization leveraging on BSS and OSS transformation
Towards E2E Digitalization leveraging on BSS and OSS transformation
Slide 25: Advancing in Full Stack deployments while consolidating global management models
Advancing in Full Stack deployments while consolidating global management models to enhance digital experience Transforming business support processes Accelerating the migration of our and systems in all our footprint customers to Full Stack 7 OBs with > 60 % migrated 2 OBs Fully migrated % of custo
Slide 26: Building a unified Operational Support Systems (OSS) Map
Building a unified Operational Support Systems (OSS) Map Unified OSS strategy for OSS simplification and automation all Operating Business Same processes and same tools across all Common Map 17 Operating Business Best of Breed Solutions Service Management Test Management Fulfilment & Service invento
Slide 27: Transforming Global Operation levels to make NOC more efficient
Transforming Global Operation levels (L1, L2 & L3) to make our Network Operation Center (NOC) more efficient… Attention levels at Network Operation Center (NOC) Global supplier model L3: Supplier support • Unified and standardized model of support contracts • Common technical and economic templates
Slide 28: Evolving towards customer centric operations through Service Operation Centers
… and evolving towards customer centric operations through Service Operation Centers (SOC) Evolving from network centric operations to Creating value based on real-time analysis of customer centric operations customer experience Become a truly Deliver the best customer Offer high quality •Faster res
Slide 29: Evolving operations towards extreme automation leveraging Artificial Intelligence
Evolving our operations towards extreme automation leveraging on Artificial Intelligence Evolving towards Data-Driven, Customer Centric and Zero Touch Operations +170 Data sources Artificial Intelligence Data driven & Expert zero touch +300 use cases Systems operations Machine Learning Planning & In
Slide 30: Building a global architecture and common data model
Building a global architecture and common data model to expose capabilities
Slide 31: Enabling data flow between all Telefónica's platforms
Enabling management and operation data flow between all Telefónica’s platforms Cognitive power Products & Services IT & Systems Physical assets 31
Slide 32: Which future network are we evolving towards?
So, which future network are we evolving towards? Network Operating Virtualized … System FUTURE Network Service Assets Customer 100% Devices CPE as a Service Platform Fixed FTTH >10Gbps Artificial Access All-IP Intelligence Mobile >1Gbps UBB Latency <5ms Backhaul Network Transport IP over Intell
Slide 33: Key Takeaways
Key Takeaways Laura Abasolo Chief Financial and Control Officer
Slide 34: Key Takeaways
Key Takeaways Differential platform 11M UBB base (+20% y-o-y) 4 OBs in UNICA We accelerate transformation and -47% cost/Fibre prem. passed (Spain) deliver spread efficiency 30m in-house home devices 61% E2E Digitalisation Customer centric ARPU uplift; +10% LTE; +20% Fiber Privileged position to capt
Slide 35: Q&A Session
Q&A Session Laura Abasolo Enrique Blanco
Slide 36: Telefonica - We choose it all
Telefonica We choose it all afl
Slide 37: Disclaimer
Disclaimer This document and the Q&A session may contain forward-looking statements and information (hereinafter, the “Statements”) relating to the Telefónica Group (hereinafter, the "Company" or "Telefónica") or otherwise. These Statements may include financial forecasts and estimates based on assu