Telefonica, S.A. TEF has achieved a milestone by covering more than 90% of Spain’s population with its advanced 5G network at the end of 2024. Since launching its 5G services in September 2020, the company has augmented its presence, reshaping the digital landscape across both urban and rural areas of Spain.

The rapid deployment of TEF’s 5G network on the high-performance 3,500 MHz frequency band is an encouraging development for the company. The deployment extends across more than 1,500 municipalities, demonstrating 50% growth in coverage over the last six months. This growth strengthens Telefonica’s market position in the 3,500 MHz spectrum, a critical band for enabling ultra-broadband mobile services.

The 3,500 MHz band, now available to TEF’s subsidiaries, Movistar and O2 customers through 5G+, delivers high performance with ultra-fast speeds and minimal latency. This enhances the mobile user experience and improves the network quality. Recently, Movistar partnered 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. 

In the business sector, this band facilitates access to innovative 5G features like Network Slicing, enabling tailored network quality to meet the specific demands of various industries. In collaboration with 112 Extremadura, TEF recently announced using its 5G+ Network Slicing technology and a cloud-based Push-To-Talk solution to improve communications for emergency teams during rescue and recovery missions.

TEF’s 700 MHz Band Supports Extensive Coverage

Telefonica’s 700 MHz 5G band is effective in enhancing indoor connectivity and providing more extensive outdoor coverage. The network currently extends across more than 3,585 municipalities across Spain, ensuring smooth connectivity even at remote locations. TEF’s 5G deployment has been growing steadily over the years. From an initial coverage of 78% in 2020, the operator has expanded its reach significantly.

Apart from making significant strides in 5G deployment, it has accelerated the expansion of its Fiber-to-the-Home (FTTH) network. This advanced fiber network in Europe complements Telefonica’s 5G coverage by ensuring that users have access to the best-in-class connectivity both indoors and outdoors. Together with 5G, its fiber network empowers businesses to drive innovation across industries.

By the end of September 2024, the company reported 393 million accesses globally, a 2% year-over-year increase. Fiber connections grew 11%, while mobile contracts rose 3%. Telefonica’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 1.5% in the past year against the industry’s decline of 16%. You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

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Other Key Picks

Keysight Technologies, Inc. KEYS carries a Zacks Rank of 1 at present. 

In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications and rising adoption of driver-assistance systems globally.

InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.

It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Ubiquiti Inc. UI sports a Zacks Rank #1 at present. 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.

The company’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.

 

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