Telefonica, S.A.’s TEF subsidiary, Movistar Colombia, joined forces with telecom provider Tigo to bolster mobile connectivity, offering millions of Colombians enhanced coverage, faster speed and an overall better mobile experience. The partnership announced the launch of a unified mobile access network. With more than 35 million users across both networks, the initiative is set to reshape the telecommunication landscape.
Movistar has long been a pioneer in promoting network-sharing models in Colombia. This innovative approach allows telecom companies to share infrastructure, leading to more efficient use of resources and faster network deployment. It also enables companies to expand their coverage more rapidly and sustainably, reducing the environmental and financial costs of infrastructure development.
The integration of Movistar and Tigo’s infrastructures under a jointly owned company is a strategic move to ensure both companies continue to compete in the market, improving the overall mobile ecosystem in Colombia. The unified network will ensure that millions of users can access better mobile services, regardless of where they are located. This collaboration will enable faster internet speed, better call quality and an overall smoother browsing experience, facilitating better interaction over mobile devices.
This expansion aligns with the Colombian government’s ambitious goal of achieving internet coverage in 88% of the country’s municipalities. This network should enhance connectivity and access to digital services, helping 50 million Colombians improve education, healthcare, financial inclusion and entrepreneurship. By expanding digital access, it is expected to drive outcomes, innovation and competitiveness.
How Movistar’s Customers Gain From This Collaboration?
The augmented network coverage unlocks lucrative opportunities for TEF’s Movistar users. Postpaid customers will be able to fully enjoy the enhanced network with faster speed, greater coverage and improved reliability. Those with prepaid plans can also take advantage of the expanded network, accessing a range of packages tailored to their needs and the benefits of being Prepaid Pro customers.
Furthermore, to inform customers about coverage and network availability, Movistar has integrated information about the unified network into its Mi Movistar App, enabling users to easily access the coverage map of the unified network. Its network is likely to witness a substantial boost in mobile access points as well. The company’s 3G network will grow from 5,000 to 8,000 sites, and its 4G network will see an even more impressive increase, jumping from 6,000 to more than 10,000 sites.
Madrid, Spain-based Telefonica provides mobile and fixed communication services in Europe and Latin America. In recent years, it has invested heavily in the deployment and transformation of its network to provide excellent connectivity in terms of capacity, speed, coverage and security. Telefonica aims to optimize value creation by prioritizing investment in its core operations. Its operating model will likely accelerate the digitization of the Group’s operations.
By the end of September 2024, the company reported 393 million accesses globally, indicating a 2% year-over-year increase. Fibre connections grew 11%, while mobile contracts rose 3%. Telefónica’s extensive investments in network quality have positioned it as a leader in fiber, with an international footprint of ultrafast networks reaching 178.9 million premises, including 81.6 million with Fiber to the Home.
TEF’s Zacks Rank & Stock Price Performance
TEF currently carries a Zacks Rank #2 (Buy). Shares of the company have risen 2.5% in the past year against the industry’s decline of 14.9%.
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Other Stocks to Consider
Some other top-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Ubiquiti Inc. UI and Qualcomm Incorporated QCOM. IDCC & UI presently sport a Zacks Rank #1 (Strong Buy) each, while QCOM carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%.
Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.
Qualcomm is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. It is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.
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