Matthew Key spells out Telefónica Digital strategy at Wired 2011 Together with O2
London, 13 October 2011 Access to the mobile internet is not enough to win in the new digital age – success will come to those who go beyond simple connectivity, Telefónica Digital CEO Matthew Key told the Wired 2011, Together with O2 conference in London today.
Mobile has been at the heart of digital revolution and will occupy a crucial role going forward, but Key warned that telcos will have to radically change their business and engagement models if they hope to stay in the game.
'This is a very crowded space, with lots of disruption and innovation, lowering of entry barriers and fluid roles in the value chain,' Key told delegates. 'There is now a window of opportunity for bold innovators with distinct and compelling offers to achieve cut-through, and those that do not adapt will inevitably fail. Telefónica starts from a different place to most players with more than 100 million personal relationships in Europe, and hundreds of millions more globally.'
Key said the winners will be the brands, companies and products that enable a rich range of services such location and preference-based access to offers and services – as seen by O2’s Priority Moments – mobile financial transactions, entertainment and gaming, health, advertising, government services and much more. Ubiquitous connectivity will play an important role – being able to communicate across networks and devices, evidenced by O2 Connect which was announced yesterday.
“As we move rapidly from being a powerful telco to an agile, innovative digital company, our focus is on So:Lo:Mo – or how Social media, Local search and Mobile collide. This scenario was unimaginable 10 years ago and yet we all have come to expect that apps be location and context aware and able to provide valuable input while we are on the go, as witnessed by the success of O2’s Priority Moments in the UK.
“With devices getting smarter, the potential for content is almost boundless – from play, social gaming, personalised location or preference based offers to personalised TV. We will soon be announcing our O2 TV trial – an exclusive mobile service that delivers a personalised and tailored index of bite-sized television programme ‘snacks’ directly to your smartphone. The concept of indexing millions of minutes of television to make your favourite TV clips simple to find, helping to connect you to the TV you love – whatever your location – is giving TV more relevance than ever before,” Key said.
Matthew Key added: “Services like mobile wallet, NFC, machine-to-machine (M2M) and augmented reality make compelling commercial applications while we will continue to invest heavily in our communications networks, whether it's LTE, WiFi or other next generation technologies. For example, the arrival of LTE will change everything again, creating a world in which communications is just an application, and our new Telefónica Digital division will ensure that we are 100 per cent ready for this.”
Telefónica Digital is a newly created global unit to lead the company's growth strategy in the digital world, headed by Matthew Key and based in the UK with regional centres in Silicon Valley in California, Sao Paolo, Tel Aviv, Madrid and Barcelona.
Telefónica is one of the largest telecommunications companies in the world in terms of market capitalisation. Its activities are centred mainly on the fixed and mobile telephony businesses with broadband as the key tool for the development of both. The company has a customer base of more than 295 million customers around the world. Telefónica has a strong presence in Europe and Latin America, where the company focuses an important part of its growth strategy. Telefónica is a 100% listed company, with more than 1.5 million direct shareholders.
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