Nawar Cristini's questions to TELEFONICA S A (TEF) leadership • Q1 2024
Question
Nawar Cristini from Morgan Stanley questioned how the final outcomes of the Orange-MásMóvil remedy package and the new Digi contract aligned with the assumptions in Telefonica's Capital Markets Day guidance. She also asked about the key factors that led to Telefonica successfully renewing the Digi contract despite intense price competition.
Answer
Chief Operating Officer Ángel Vilá Boix responded that the company's guidance already accounted for potential wholesale contract dilution and remains unchanged. He confirmed the new Digi deal is expected to generate revenue flow at least equivalent to the current one over a much longer term. He attributed the success of the negotiation to the deal's structure, which includes network sharing, shifting the dynamic beyond a pure price-based discussion.