Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Telefonica Digital of Telefonica S.A. (TEF - Analyst Report) 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 - Analyst Report) 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 Orange mobile brand and Vodafone Group Plc. (VOD - Analyst Report). 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).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%