Telefónica explained that the growth plan focuses on technological modernization, operational simplification, and AI-driven innovation
In sum – what to know:
Accelerate growth – Telefónica’s Transform & Grow strategy focuses on AI, network modernization, and operational efficiency across Spain, Germany, the U.K., and Brazil.
Efficiency and profitability – The company projects €3 billion in savings by 2030 and steady revenue growth through 2030.
European autonomy – Telefónica calls for telecom consolidation to strengthen Europe’s competitiveness and reduce technological dependence.
Spanish carrier Telefónica has unveiled its new five-year strategic plan, dubbed “Transform & Grow,” aimed at boosting growth, efficiency, and long-term value across its core markets — Spain, Germany, the UK, and Brazil.
In a release, the telco noted that the initiative seeks to position the company as a world-class European operator with profitable scale and a leading digital customer experience.
“Telefónica is a great company with enormous potential ahead. It has very solid and hard-to-replicate assets and capabilities. It also has several specific areas for improvement that can be addressed in a relatively short period of time. Telefónica’s strategic plan will address these challenges and seize the numerous opportunities that lie ahead,” the telco’s CEO Marc Murtra said during a presentation at Telefonica Capital Day 2025.
“I have asked the team to help me design a strategic plan that captures the market opportunities before us. A plan that reduces complexity, improves financial flexibility, balances short- and long-term decisions, generates measurable efficiencies, and faces difficult decisions. Our strategic plan focuses on sustainable growth that creates value for shareholders,” Murtra added.
The telco explained that the plan focuses on technological modernization, operational simplification, and AI-driven innovation to accelerate Telefónica’s evolution across six strategic pillars:
-Customer experience – Enhance network performance and service quality through major investments in artificial intelligence to deliver a best-in-class digital experience.
-B2C expansion – Strengthen convergence in Spain and Brazil, extend it in the U.K. and Germany, and grow ecosystem services to increase household presence and consumer revenue.
-B2B and public sector – Modernize communications services in Spain and Brazil, capture new opportunities in the U.K. and Germany, and expand digital solutions through Telefónica Tech and local partnerships.
-Technology evolution – Invest in fixed and mobile networks, upgrade IT systems, and focus innovation on technologies that improve performance and customer value.
-Simplified operations – Transition to a leaner group structure granting greater autonomy to local markets and global units.
-Talent development – Attract and retain top professionals while fostering a performance-driven culture.
Telefónica expects this strategic plan to deliver operational efficiency improvements of up to €2.3 billion ($2.64 billion) in savings by 2028 and €3 billion by 2030, achieved through digital transformation, process streamlining, and legacy network asset sales.
The telco also noted that the plan expect to generate a revenue compound annual growth rate (CAGR) of 1.5–2.5% between 2025 and 2028, accelerating to 2.5–3.5% during the 2028–2030 period.
Telefónica reiterated its commitment to European technological sovereignty and sector consolidation, warning that the absence of market integration has weakened the region’s competitiveness against the U.S. and China.
The telco has been recently divesting in Latin America to focus on its main markets.
