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Telefonica (TEF)-Darwin to Spur Connected Vehicles Security

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Telefonica, S.A.’s (TEF - Free Report) digital business arm, Telefonica Tech, recently collaborated with Darwin Innovation Group to build an innovative security solution. The solution will empower connected autonomous vehicles (“CAV”) with enhanced network capacity and coverage.

Based in Harwell Science Campus, Oxfordshire, Darwin is a communication research & development entity that provides global connectivity and drives innovation with cutting-edge solutions. Its team comprises industry professionals and university graduates from across the world. Apart from Telefonica, some of its partners are the University of Glasgow, the U.K. Space Agency and Cognizant.

Per the agreement, the security offering capitalizes on Darwin’s technology that amalgamates satellite and terrestrial channels of CAV for improved and secured communications. Together with Telefonica Tech’s in-depth technology expertise, the integration will enable CAV to seamlessly switch between satellite and 5G networks.

It will safeguard these vehicles with utmost security on the back of Telefonica Tech’s avant-garde cybersecurity services. As part of the collaboration, Telefonica Tech’s team of experts is working proactively with Darwin’s development team to perform penetration tests on Darwin’s technology. The tests are necessary to solve the identified vulnerabilities for better performance.

The revamped identity processes will result in a cybersecurity shield, which spans across multiple sectors, securing both terrestrial and satellite channels. As a result, different networks can support each other with greater security. Driven by Telefonica Tech’s strong cybersecurity measures, the strategic deal will enable Darwin to provide ubiquitous and secure communication systems for CAVs.

Telefonica Tech manages cyber security, artificial intelligence, cloud, IoT and Big Data businesses with the utmost efficacy. The segment manages these businesses under a single umbrella to not only accelerate revenue generation but also facilitate the entry of new partners for lucrative business opportunities. The unit is expected to yield additional revenues of more than €2,000 million in 2022.

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. 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. The company is also experiencing healthy traction in the smartphone market.

Telefonica currently has a Zacks Rank #3 (Hold). The Spanish tech giant’s shares have gained 7.9% compared with the industry’s growth of 5.1% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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