Telefónica S.A

Deutsche Telekom, Orange, Vodafone Group, and Telefónica, four major European telecom operators, are in early discussions to establish a consortium to participate in the EU's satellite frequency auction and provide direct-to-mobile communications services. Bloomberg reported, citing sources familiar with the matter. The four companies aim to jointly win the allocation of the 2 GHz band that the EU reserves for operators within the bloc, but a final decision has not yet been made. In May, the EU announced plans to allocate most satellite frequencies for mobile phones to European companies. The European Commission will allocate two-thirds of the frequencies for the multi-orbit satellite constellation "IRIS2," consisting of 290 satellites, to commercial use, and distribute them equally between EU and non-EU operators. The consortium is expected to bid for the EU operator quota. IRIS2 is Europe's initiative to counter SpaceX's Starlink.

AST SpaceMobile announced the expansion of network integration testing across Europe in collaboration with leading mobile network operators Vodafone, Orange, Telefónica, Deutsche Telekom, and Vodafone Ukraine. The testing, subject to regulatory approvals, is underway in the United Kingdom, Ireland, Romania, France, the Czech Republic, Germany, Spain, and Ukraine, leveraging the carrier-neutral gateway infrastructure of Satellite Connect Europe, a joint venture between AST SpaceMobile and Vodafone. The initiative aims to integrate AST SpaceMobile's space-based cellular broadband service with existing terrestrial networks using standard, unmodified smartphones. The company works with nearly 60 mobile network operators globally, representing over 3 billion existing subscribers, and its satellite technology is backed by approximately 3,900 patent and patent-pending claims.

Telefonica raised its 2026 adjusted operating cash flow after leases outlook to growth of more than 3%, up from a prior target of more than 2%, citing stronger operating leverage and momentum in Spain and Brazil. Chairman and CEO Marc Murtra said the company is on track to meet all other 2026 guidance metrics, though revenue growth is expected at the low end of the range due to weaker handset sales, particularly in Germany. Second-quarter group service revenue rose 0.9%, adjusted EBITDA increased 2.7%, and free cash flow reached €611 million. Spain and Brazil led the improvement, with Brazil's adjusted EBITDA and operating cash flow after leases rising 11% and 18% respectively, while Telefónica Deutschland plans to cut about 1,100 jobs and close 60 stores, and Virgin Media O2 continues to target deleveraging from roughly 5.8 times leverage.

Telefónica has moved from a reactive to a proactive in-home broadband support model by integrating real-time analytics from AXON Networks. AXON’s algorithms now process data from more than 6 million devices in Brazil and over 5.6 million devices in Spain, giving Telefónica end-to-end visibility into home Wi-Fi performance. The operator uses a composed Wi-Fi Customer Experience Index to prioritize improvements at the household level and has seen significant gains in operational efficiency and customer satisfaction. The partnership, now in its fifth year, leverages parts of the AXON Orchestrator cloud-native system to feed intelligent diagnostics directly into Telefónica’s maintenance and customer support systems in Spain.