Telefonica CEO Jose Maria Alvarez-Pallete has revealed the importance of network sharing ahead of the 5G network launches.
Telefonica CEO said network sharing will bring substantial cut in Capex and Opex because 80 percent of Capex and 20 percent of Opex in network are due to infrastructure sites, transmission rentals.

“Network sharing is an opportunity to reduce network costs, while maintaining the objectives of coverage and quality. Network sharing will be relevant in the incoming deployment of 5G technology, due to the pressures coming from a much denser network, both in radio access and in transport,” Jose Maria Alvarez-Pallete said.

Telefonica is sharing infrastructure of transport, of fixed access, of mobile access in different countries. Telefonica has sharing of telecom infrastructure in Brazil, Argentina, Chile and Colombia.

“We have experience of 3G and 4G infrastructure sharing with Oi, with TIM and with Claro. We are sharing 3G and 4G infrastructure with Claro in some cities in Argentina. We signed an agreement in sharing in Colombia with Tigo, and in Central American assets that we are now in the process of divestment,” Jose Maria Alvarez-Pallete said.

Telefonica recently announced a 5G infrastructure with Vodafone Group to cut costs in the U.K. telecom market.

Telefonica’s Capex reached €1.554 billion (+4.3 percent) in January-March and the main focus was on the deployment of UBB networks, enhancement of network capacity and virtualisation and improvement in quality and customer experience. Telefonica has focused on the implementation of AI in the company’s technology platforms.

Telefonica’s Capex reached €377 million (+9.2 percent) in Spain, €252 million (+28.3 percent) in Germany, €185 million (broadly stable) in UK and €396 million (+9.6 percent) in Brazil, €243 million (+33.8 percent) in Hispam Sur and €78 million (+16.6 percent) in Hispam Norte.

Telefonica’s revenues touched €11.979 billion (–1.7 percent) with an operating expenses of €8.114 billion (–4.9 percent) during January-March.

Telefonica earlier announced the sale of 11 data centres to Asterion Industrial Partners, the Pan-European infrastructure fund manager, for 550 million euros. The transaction is expected to generate capital gains before taxes and non-controlling interests of around 260 million euros.