ZACKS·2025-11-27 16:11Core Insights - Telefonica, S.A. (TEF) has extended its partnership with Nokia for five years to modernize its radio access network in Germany, supporting accelerated 5G rollout and sustainable digitalization goals [1][11] - The agreement includes the deployment of Nokia's energy-efficient AirScale RAN portfolio, enhancing coverage and network reliability [2][11] - The initiative aims to advance network automation through AI-driven orchestration, leveraging Nokia's MantaRay NM platform [4][11] Network Modernization and 5G Expansion - Nokia will provide advanced solutions including Habrok Massive MIMO radios, multi-band remote radio heads, and small cells to improve indoor performance and overall network reliability [2][3] - The rollout will utilize Nokia's Interleaved Passive Active Antenna (IPAA+) to streamline site deployment and accelerate 5G expansion [3] Strategic Partnerships and Contracts - Telefonica has signed long-term contracts, including a 16-year agreement with DIGI in Spain, enhancing infrastructure quality and ensuring stable revenue [6] - The company is also collaborating with Vodafone and has entered renewable energy agreements in Chile and Mexico [6] Financial Outlook - For 2025, Telefonica anticipates organic growth in revenues, EBITDA, and EBITDAaL - CapEx, aiming to keep CapEx below 12.5% of sales and maintain free cash flow at 2024 levels [9] Market Position and Performance - Telefonica's 5G network in Spain covers nearly 94% of the population, with the miMovistar portfolio gaining traction [5] - The company is experiencing growth in its B2B segment in Germany, supported by steady ARPU and low churn in O2 contracts [7]