Will Telefonica's Shares Benefit From Robust 5G Footprint in Spain?

Core Insights - Telefonica, S.A. has achieved over 90% population coverage in Spain with its 5G network by the end of 2024, significantly reshaping the digital landscape since the launch of its services in September 2020 [1] - The company has experienced a 50% growth in its 5G coverage across more than 1,500 municipalities in the last six months, enhancing its market position in the critical 3,500 MHz spectrum [2] - Telefonica's 5G+ services provide high performance with ultra-fast speeds and minimal latency, improving user experience and network quality [3] 5G Network Deployment - The 3,500 MHz band enables innovative features like Network Slicing, which allows tailored network quality for various industries, and has been utilized in collaboration with emergency services for improved communication [4] - The 700 MHz band enhances indoor connectivity and outdoor coverage, extending across over 3,585 municipalities in Spain, significantly increasing from an initial coverage of 78% in 2020 [5] Fiber Network Expansion - Telefonica has accelerated the expansion of its Fiber-to-the-Home (FTTH) network, complementing its 5G coverage and ensuring high-quality connectivity for users [6] - By September 2024, the company reported 393 million accesses globally, with fiber connections growing by 11% and mobile contracts by 3%, positioning it as a leader in fiber networks [7] Stock Performance - Telefonica currently holds a Zacks Rank of 2 (Buy), with its shares rising 1.5% over the past year, contrasting with a 16% decline in the industry [8]