A more connected world and full of opportunities for growth. That is, broadly speaking, the vision that the CEO from Telefónica, José María Álvarez-Pallete, has offered this Thursday in the presentation of the company's next strategic plan. In his address to the more than 900 managers present at the Caja Mágica in Madrid, Pallete has taken to heart the management of recent years and has anticipated what is coming. "Very soon there will be 100,000 million people and things connected, and that means that our data traffic will multiply by four times in mobile phones and by three times in fixed", assured the president of the teleco .
His intervention has begun with a review of the figures of the company that he has presided over since 2016. In this regard, he stressed that Telefónica has been growing for the last three years in the main economic variables, something that "had not happened for nine years", to the time it has lowered its debt by more than 10,000 million. Pallete has also been proud of a fiber network "leading in Europe and third in the world."
As the only shadow has cited the stock market performance of the group, which according to what has been said, does not greatly improve the performance of one sector, that of telecommunications, which is "the sector that has behaved worst on the stock market in the last two years". The price of Telefonica closed this Thursday on the Ibex 35 with an appreciation of 0.33%, although so far this year they have left 1.38%.
The CEO of the Spanish multinational has attributed this bad performance to "investors believe that the return of this industry is decreasing." And he has blamed a part of it "regulation of the old regime"which, in his opinion, means that in Europe there are" more than 450 mobile operators "while in the US and China there are only" four or five. "To this he added that, contrary to his criteria, telecommunications companies they are frequently considered "utilities"(public service companies) The vicious circle closes when it also" seems that telecommunications have to be deflationary ", unlike what happens, as estimated Pallete, with gas, electricity or water supplies that have raised in price in recent years.
But despite this, the manager has drawn a future full of opportunities for the company. "The revolution that will occur in data connectivity is tremendous," he said while diagnosing the need for "faster networks, much more capable, much safer and much simpler." That is why Pallete has identified connectivity as one of the aspects in which Telefónica can grow, along with "services on connectivity", "the world of big data"and" the world of intelligence [artificial] cognitive. "To capture" these four waves ", Pallete has encouraged managers to ask questions as if they are in the right market, but he has said that Telefónica has the right business culture -" we have always adapted "- in addition to one" enormous distribution capacity "in own or third-party products.
The speech has reviewed some of the ethical challenges that the technological revolution will imply. "Is it permissible to viralize the content of a piece of news that is obviously false and affects public opinion?", The director asked himself when citing the fake news (false news). He has also cited the "right to disconnection" of the group's employees, something that, as he said, Telefónica has committed to respect with the unions. With all this, Pallete has concluded by calling the people in charge of the firm to "capture sustainable growth" and launching the idea of this new strategic plan – which is entitled Reconnect and it replaces the previous one, We choose everything (2015) – with a call to make the world "more human connecting the lives of people".