Telefonica Digital to generate €5bn by 2015
July 6, 2012
Telefónica Digital has said it expects to drive annual revenues of approximately €5 billion for its parent company Telefónica by 2015 with an annual revenue growth rate of 20 per cent.
The Spanish company also announced global agreements with Facebook, Google, Microsoft and RIM to use Telefónica’s billing relationships so customers can pay for mobile content such as apps, games or in-app purchases. The direct to bill payment has started to be rolled out in Europe and will be live in 14 of Telefónica’s operating businesses globally by the end of this year. 400,000 customers in Germany are already paying for digital goods via their mobile phone bills.
It also announced a worldwide Firefox OS for mobile announcement as an alternative to Android. Head of Telefónica Digital, Matthew Key, revealed some additional detail about Telefónica’s involvement: “We’re talking to at least another 3 or 4 to get onboard. It’s important because of scale. We also want more operators to get involved. The first handset cost will be sub $100 when it launches in Brazil. We can produce the same experience as an Android handset at a lower price, or a better experience at the same price.”
He adds that strategically, for any business to be reliant on any one supplier is not a good thing. Telefonica in Latin America is very reliant on Android.