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Telefonica (TEF) Arm Inks Deal With Geprom to Digitize Industries

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In an effort to boost digital transformation of the industrial sector, Telefonica, S.A.’s (TEF - Free Report) subsidiary, Telefonica Tech, extended its collaboration with a local engineering company — Geprom Connecting Industries. Per the collaboration, the two companies will primarily focus on capitalizing best-in-class technologies like Internet of Things (IoT), Big Data and Artificial Intelligence (AI) to enhance productivity and reduce operational overheads while facilitating real-time decision making with seamless logistics.

Apart from reinforcing the joint portfolio with blockchain and predictive maintenance, the global commercial agreement comes as a boon, especially at a time when majority of the organizations are badly hit by the COVID-19 pandemic. The expanded partnership aims to make businesses more competitive and streamline day-to-day operations in the connected industrial environment on the back of advanced technologies.

Based in Spain, Geprom is an innovative software company that specializes in the development and integration of avant-garde technological solutions for both large corporations and small and medium-sized businesses. These high value-added solutions are particularly designed for Industry 4.0 where industrial automation holds extreme importance.

The company primarily focuses on addressing the accretive requirements of digitization, irrespective of the industry and production levels. A well-known name in industrial programming, automation and cloud computing, Geprom caters to variety of sectors ranging from automotive and textile to petrochemical and smart city. Markedly, the Spanish tech company is a strategic partner of Gefasoft GmbH. The partnership is mainly known for developing monitored projects on a real-time basis while bolstering the digitization processes of its clients with greater efficiency.

Impressively, Telefonica Group and Geprom have been sharing an active working relationship for quite some time now. In fact, last year, the companies teamed up to work toward the advancement of digitization initiatives for connected Industry 4.0. Per the recent agreement, the joint leadership strategy between these companies mainly focuses on increasing the visibility of processes on a real time basis, developing new business models and ensuring highest quality of manufactured products while digitizing warehouse processes in a secure and sustainable manner.

5G, which is an integral component of industrial automation, will not only help in optimizing the production processes on the back of low latency connectivity but also pave the path for wireless factories. Also, integration of blockchain, Big Data and AI will give way to new offerings like smart contracts which eradicates the presence of intermediaries, thereby reinforcing the long-standing relationship in a digital way. Backed by these focused endeavors, the strategic alliance is likely to equip clients with wide-ranging industry oriented automated services while extending its commercialization to the international arena.

Telefonica provides a comprehensive suite of service platforms for fast go-to-market launches. Its IoT connectivity platform has been designed to address dynamic business requirements and enable a cost-effective solution to improve business productivity. Over the past years, it has invested heavily in the deployment and transformation of its network to provide seamless connectivity with enhanced capacity, speed, coverage and security. With operations across 17 countries, the Spanish telecom company is capitalizing on the opportunities in the digital world through several growth strategies to enhance long-term prospects, while experiencing healthy traction in the smartphone market.

Telefonica currently has a Zacks Rank #3 (Hold). Shares of the company have returned 14.6% compared with the industry’s growth of 15.1% in the past three months.

Some better-ranked stocks in the broader industry are Telephone and Data Systems, Inc. (TDS - Free Report) , Telenor ASA (TELNY - Free Report) and Portland General Electric Company (POR - Free Report) . While Telephone and Data Systems sports a Zacks Rank #1 (Strong Buy), Telenor and Portland General Electric carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Telephone and Data Systems delivered a trailing four-quarter positive earnings surprise of 148.5%, on average.

Telenor has a long-term earnings growth expectation of 27.9%.

Portland General Electric delivered a trailing four-quarter positive earnings surprise of 98.1%, on average.

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