“We have to say goodbye to old organizational models.”

With access severely restricted due to the presence of King Felipe VI, José María Álvarez Ballete was, on Monday morning, one of the champions of the Mobile World Congress in Barcelona. The head of Telefónica launched a retaliatory letter calling for cooperation: “It is time for a global alliance and fair governance to achieve a value chain that is sustainable and beneficial to all. It is time for cooperation, not abusive positioning. It is time for responsible use of shared resources. It is time for a new regulatory landscape.” We need 21st century regulation. It is time to say goodbye to old organizational models“He said in front of the eyes of Prime Minister Perry Aragones and Prime Minister Pedro Sanchez.

What does Europe say?

These words from the top leader of a crucial telecommunications company like Telefonica are sure to calm the European Union itself. In fact, last November 2023, the European Commission presented the results of a public consultation on the future of the electronic communications sector and infrastructure. Among other issues, Brussels has warned of the need to facilitate cross-border operations to create a single European market. For the European Commission, operators need to scale up to realize the full potential of a broadband telecommunications market. The EU is also calling for the regulation to be adapted to reduce costs and facilitate the diffusion of new technologies. This situation could weaken the sector and expose it to hostile takeovers, despite the critical nature of its assets.

tall model, The recent merger between Orange and MásMóvil has brought this oligopolistic market to the max. And the recent acquisition last September by a Saudi holding company of 9.9% in Telefónica for 2.1 billion euros. Which makes it the largest shareholder as well. For all this, the head of Telefónica appealed to the demands of the main European telecommunications companies about the “fair share” (fair share), a measure they demand in the face of the large investments in networks that will be necessary in the coming years will deal with the emergence of different technologies, such as artificial intelligence (AI). , which pits large companies in this sector against major technologies, such as Amazon, Meta, Netflix, Google, Apple or Microsoft. “Currently, six actors consume more than 50% of the network capacity. It is necessary that we encourage you in the responsible use of the network capacity and energy consumption. We must motivate them because it is in the responsible use of the network,” Álvarez emphasized. -Speaking in discourse, in the face of market changes and continuous processes.

In this context, the director also indicated that there are currently 47 companies in the telecommunications sector participating in this conference Open Gateway, the initiative led by the GSMA – the global employer in the mobile industry – To unleash the potential of carrier network capabilities in an interoperable and programmable way through open and standardized APIs. The initiative, which was launched at the Mobile World Congress (MWC) last year, includes a total of 239 networks, representing approximately 65% ​​of global mobile connections. This is a fact that contradicts the recent mergers and absorptions in this sector.