Telefonica Joins Hands with Samsung - Analyst Blog
17 Mai 2013 - 2:40PM
Zacks
Telefonica Digital of
Telefonica S.A. (TEF) has announced its
collaboration with Samsung Electronics Co., Ltd. under a global
agreement. Under this agreement, Samsung phone users will be able
to buy application and mobile content from the Samsung app store by
accessing Telefonica’s billing platform – BlueVia API Platform.
This new arrangement will help
customers avoid using credit card payments while purchasing from
the Samsung app store as it will transfer payments to their phone
bill or prepaid credit.
For Telefonica, Samsung will remain
the first original equipment manufacturer (OEM) to take direct
access to Telefonica’s billing capabilities under a global
agreement.
Telefonica is progressing well to
grasp the opportunities in the digital world through several growth
strategies. Recently, on May 9, the company also struck a deal with
Dell Inc. to offer mobile connectivity solutions for its Windows 7
and Windows 8-based devices throughout Europe by means of the Dell
NetReady solution.
Further, the company will be
launching its first line of devices based on Firefox operating
system in Brazil, Colombia, Spain and Venezuela in mid-2013 with
further launches in Europe and Latin America through 2014.
Manufactured by Alcatel One Touch, LG and ZTE with
Qualcomm’s (QCOM) Snapdragon processor, these
devices are expected to provide customers a satisfactory data
service at affordable prices.
However, Telefonica is facing
intense competition from the likes of France
Telecom’s (FTE) Orange mobile brand and Vodafone
Group Plc. (VOD). In order to safeguard its position in
the European region, the company is continuously upgrading its 3G
mobile broadband networks –– High Speed Packet Access Plus (HSPA+)
and Dual Cell HSPA. The company is further working to deploy LTE
services in urban areas and also taking initiatives to adopt new
technologies like Voice over LTE (VoLTE) to drive its top line.
The company has undertaken several
efforts to enhance efficiency across European markets such as
removal of handset subsidies in Spain, gradual reduction of
subsidies in the U.K., network sharing agreement in the U.K. and
Mexico and a redundancy program in Spain. Such initiatives would
lead to further savings and boost profits in the coming years.
Telefonica S.A. currently has a
Zacks Rank #3 (Hold).
FRANCE TELE-ADR (FTE): Free Stock Analysis Report
QUALCOMM INC (QCOM): Free Stock Analysis Report
TELEFONICA S.A. (TEF): Free Stock Analysis Report
VODAFONE GP PLC (VOD): Free Stock Analysis Report
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