Telefonica, S.A.’s TEF subsidiary, Movistar, recently introduced an innovative offering of a 12-month free subscription to Perplexity Pro, an advanced artificial intelligence (AI)-powered response engine. The tool is designed to deliver clear, customized answers to user queries in natural language. The initiative highlights Telefonica’s commitment to providing cutting-edge technology to its customers while solidifying its presence in integrating AI tools within the telecom sector.

Perplexity Pro leverages state-of-the-art AI models, such as GPT-4o, OpenAI o1, Grok-2 and Claude 3.5, to boost user interactions. The platform not only answers user queries but also allows for deeper engagement through follow-up questions, facilitating two-way personalized communication. 

A key capability of Perplexity is its ability to analyze uploaded files and images. Customers can ask questions about the uploaded content, receive summaries and gain insights in real-time. In addition, the platform retrieves relevant information from the Internet, making it an ideal tool for exploring current events and breaking news.

How Movistar Customers Benefit From This Unique Initiative

Currently, all Movistar users, whether opting for mobile, fixed, or convergent services, can activate their Perplexity Pro subscription through the Movistar website or the miMovistar app. Customers can log into their personal area on the Movistar website or use the miMovistar app. Each customer receives a personalized URL that can be shared with up to five individuals, allowing family and friends to enjoy the benefits of Perplexity Pro as well. This user-friendly approach not only enhances the service’s reach but also broadens the accessibility of advanced AI tools.

TEF’s Expanded Partnership With Perplexity is a Tailwind

The collaboration between Telefonica and Perplexity aims to harness AI to augment user experiences. TEF’s corporate venture capital division, Wayra, announced its investment in Perplexity last October, joining other premium investors such as Nvidia, Databricks, Jeff Bezos and Bessemer Venture Partners, among others. This strategic investment underscores Telefonica’s focus on supporting transformative technologies and companies with an expanded global footprint. The partnership has already expanded to Brazil and the United Kingdom, with plans for rollout in other countries where Telefonica operates.

Furthermore, the company has launched Perplexity on Movistar Plus+, the world’s first AI-powered experience integrated into television. Customers with a UHD decoder can access Perplexity via the Movistar Plus+ catalogue and interact using the Movistar Plus+ Voice Remote. By pressing the Aura button, users can ask questions and receive real-time, AI-generated text responses displayed on the screen or read aloud.

Movistar frequently rewards its customers with differentiated offerings, creating a seamless and immersive customer experience. Recently, it teamed up with Xbox to boost the esports ecosystem in Colombia by providing access to high-quality games and specialized training programs for the next generation of esports professionals. Through this alliance, Movistar postpaid and prepaid customers can enjoy the Xbox Game Pass Ultimate license for just $38,690 per month (VAT included).

In December 2024, it partnered with telecom provider Tigo to improve 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 aimed at transforming the telecommunication landscape.

TEF’s Zacks Rank & Stock Price Performance

TEF currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 6% in the past year compared with the industry’s fall of 17.3%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Ubiquiti Inc. UI and Qualcomm Incorporated QCOM. IDCC presently sports a Zacks Rank #1(Strong Buy), whereas QCOM & UI carry a Zacks Rank #2 (Buy). 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%.

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.

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.

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