Telefonica, S.A.’s TEF subsidiary, Movistar Chile, has launched the largest technological renovation project for its mobile network from the iconic Germán Becker Stadium in Temuco. This ambitious initiative begins in the Araucanía Region, where Movistar is upgrading more than 260 mobile antennas, strengthening its commitment to a future-ready, high-capacity mobile infrastructure. The upgraded network in La Araucanía brings more than 200% increases in 5G speeds, with a robust transformation in performance and user experience.

With more stable connections, users in the region will now be able to enjoy smoother streaming, glitch-free video calls, and reliable access to cloud services even in rural towns like Curarrehue, which previously had no access to 5G. All 32 communes in the region are covered under this plan, including Villarrica, Pucón, Padre Las Casas, Cunco, Vilcún, and Loncoche. In Temuco alone, Movistar has increased the number of 5G mobile sites by more than 150% compared to the previous year. Across the entire region, this figure is above 50%, highlighting the scale and need for this technological advancement.

These improvements are not only critical for individual users but also have far-reaching implications for businesses, municipalities, and educational institutions. Small and medium-sized enterprises, micro-enterprises, and public services are poised to thrive with stronger digital infrastructure.

TEF’s Movistar Rides on Long-Term Strategies

Movistar’s rollout in La Araucanía is the first phase of a nationwide initiative aimed at ensuring 80% of Chile’s urban and semi-rural areas enjoy 5G coverage. It further aims to upgrade more than 5,300 antennas throughout the country and reduce its environmental footprint by 15%, mainly through increased energy efficiency in its new mobile sites. 

To showcase the power behind the upgrade, Movistar unveiled a demonstration of the telecommunications equipment used in their antennas, developed by their Asian supplier ZTE. Real-time speed tests at the event illustrated the impressive capabilities of the new 5G network.

Telefonica plans to focus on its main business areas to maximize value. Its strategy is expected to speed up the digital transformation of the company’s operations. It continues to invest heavily in the deployment and transformation of its network to provide excellent connectivity in all of its dimensions, capacity, speed, coverage and security. 

In December 2024, Telefonica’s accelerated 5G rollout achieved a significant milestone, with robust coverage across its four key markets — Spain (91%), Germany (97%), Brazil (61%) and the United Kingdom (75%). This milestone surpasses the 70% coverage target originally set for 2026, demonstrating the company’s continuous efforts to maintain a competitive edge in network infrastructure.

TEF’s Zacks Rank & Stock Price Performance

TEF currently sports a Zacks Rank #1 (Strong Buy). Shares of the company have gained 12.9% in the past year against the Zacks Diversified Communication Services industry’s decline of 9.8%.

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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 CommScope Holding COMM. IDCC, UI and COMM presently sport a Zacks Rank #1 each. 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 15%.

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 33.3%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.

Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions. It has a long-term growth expectation of 19.37%.

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