Telefonica Furthers Data-Driven Solutions With Erictel Tie-Up
Reinforcing the longstanding relationship, Telefonica, S.A. TEF recently extended its partnership with a leading big data telemetry solutions developer — Erictel — to accelerate the commercialization of IoT solutions across its augmented geographical footprint. The collaboration, which leverages the IoT capabilities of Telefonica’s data arm, Telefonica Tech, will primarily support B2B customers with best-in-class modernization initiatives amid coronavirus-induced global mayhem.
Erictel is a Spain-based communications service provider, which specializes in the development of avant-garde machine-to-machine (M2M) and IoT solutions in Latin America. Being a strategic partner of Telefonica, the company was created as a spinoff of the Sweden-based tech giant — Ericsson ERIC. Apart from Spain, Erictel has business operations in Colombia, Ecuador, Peru, Argentina and Mexico. Equipped with a diverse range of big data portfolio, the IoT specialist primarily focuses on M2M communications, especially in the telecom sector. Markedly, the company intends to revamp its business model and reinforce its product portfolio in the field of mobility with the latest partnership.
Per the collaboration, Telefonica and Erictel will deploy innovative data-driven solutions that have been specifically designed to help enterprise customers with efficient remote working solutions. These solutions include indoor asset tracking and field force management, which supports activity planning and facilitates incident reporting on a real-time basis. Apart from enhancing its capabilities in big data, the partnership will provide streamlined equipment management solutions that will eventually enable companies to adapt to new ways of working with utmost ease and flexibility in these difficult times. It is worth mentioning that the agreement will help Telefonica to augment its market penetration in Brazil and the U.K. with new offices in Sao Paulo and London.
Few days back, Telefonica bolstered IoT security by fortifying its relationship with cybersecurity services provider — Nozomi Networks. The investment was made through Telefonica’s corporate venture capital arm — Telefonica Innovation Ventures. With the investment, Telefonica will be able to strengthen its security services and enhance operational reliability by providing best-in-class protection to critical assets amid evolving cyber threats. Markedly, the deal followed a joint services agreement between Telefonica's cybersecurity arm, ElevenPaths and Nozomi Networks earlier this year. The partnership expanded Telefónica Innovation Ventures’ portfolio of investments in 11 startups, thereby reinforcing its commitment to provide risk management capabilities for critical infrastructure customers.
Armed with a portfolio of next-gen digital services, Telefonica provides a comprehensive suite of service platforms for fast go-to-market launches. Its IoT connectivity platform has been specifically designed to address dynamic business requirements and enable a cost-effective solution to improve business productivity. Over the last few years, the company invested heavily in the deployment and transformation of its network to provide seamless connectivity with enhanced capacity, speed, coverage and security. With its operations across 17 countries, it has 344 million accesses with robust presence in Europe and Latin America. The Spanish telecom company is successfully capitalizing on the opportunities in the digital world through several growth strategies to enhance long-term prospects, while experiencing healthy traction in the smartphone market.
Telefonica currently carries a Zacks Rank #2 (Buy). Its shares have plunged 41.6% compared with the industry’s decline of 20.9% in the past year.
Some other top-ranked stocks in the industry are Deutsche Telekom AG DTEGY and TELUS Corporation TU, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Deutsche Telekom has a long-term earnings growth expectation of 7%.
TELUS has a long-term earnings growth expectation of 5.6%.
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