Barcelona, 17 February 2009 - "We cannot afford the luxury of not making the telecommunications industry the main driver of economic recovery". Chairman of Telefónica, César Alierta, was categorical in words spoken at the inaugural presentation for the Mobile World Congress 2009, a must-see event in the world of mobile telephony scheduled to take place in Barcelona next Thursday.
During his speech, César Alierta recalled the fundamental role that the telecommunications sector can and should play in contributing to reversing the economic decline.
According to Alierta, "the telecommunications sector has a 'multiplier' effect on the economy and is one of the largest contributing sectors to gross domestic product and job creation. It is a highly productive sector and the use of its services further boosts the factors of productivity in other industries. In addition, it is historically a deflationary sector. This unique combination of factors makes it the perfect candidate for governments to leverage to contribute to economic recovery and the restoration of confidence".
The Chairman of Telefónica explained that the stimulus plans applicable by governments at the present should not underestimate the telecommunication sector which is currently the biggest contributor to the overall economy. Classic fiscal policy predates the digital era and therefore requires modernisation in order to contemplate the benefits of investing in the information society.
ICTs have become a backbone for innovation and for society's overall development. In Europe alone, according to a range of studies, it is estimated that the investment in the next generation networks or NGNs needed to rollout broadband infrastructure down the line will directly create over two million jobs and make a contribution to European GDP growth in the order of 900 billion euros.
César Alierta called on the public and private sectors to "take urgent action and to work together, bound by a new spirit of cooperation in order to create the incentives for investment and foster innovation". In addition, Alierta stressed that this quest did not require public funding, but simply the application of the measures necessary to establish an adequate, predictable and stable regulatory environment to ensure security and generate confidence.
The telecommunications industry is one of the few to have posted sustainable growth in recent years; in fact it continues to grow despite the unfolding recession. Overall, the ICT sector is expected to expand by 4.8% in 2008. Within the sector, the growth attributable to the telcos, above this percentage, is noteworthy. Particularly worth highlighting is the performance of Telefónica, which posted organic year-on-year growth of 7.4% last quarter.
Looking to the future, Telefónica explained that the two key growth drivers in the sector would be increasing penetration and usage levels. Specifically, although the growth in the number of accesses in recent years has been nothing short of spectacular, there is still significant upside, especially in emerging nations, where Latin America stands out. This region has been the fastest growing in recent years in terms of accesses, posting the highest rate of average revenue growth in the world at almost 21% during the period 2003-2007.
Alierta also explained that the challenge facing the sector was to prove that the growth rates evidenced to date are sustainable today. To do so, Telefónica's Chairman identified four essential factors: offering the most satisfying and innovative customer experience, enjoying the scale and diversification needed to compete globally, readiness for convergence and, lastly, turning efficiency into a competitive advantage.
Download presentation slides (PDF - 21.4MB)
Telefónica is one of the largest telecommunications companies in the world in terms of market capitalisation. Its activities are centered mainly on the fixed and mobile telephony businesses with broadband as the key tool for the development of both.
The company has a significant presence in 25 countries and a customer base that amounts to 252 million accesses around the world. Telefonica has a strong presence in Spain, Europe and Latin America, where the company focuses an important part of its growth strategy.
Telefónica is a 100% listed company, with more than 1.5 million direct shareholders. Its share capital currently comprises 4,704,996,485 ordinary shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao and Valencia) and on those in London, Tokyo, New York, Lima, Buenos Aires and São Paulo.
Para más información / For further information
Dirección de Comunicación Telefónica
Press Office
Ronda de la Comunicación, s/n
28050 - MADRID
Tel: +34 91 482 38 00
e-mail: prensa.tesa@telefonica.es
www.telefonica.es/saladeprensa
