New announcement in the telco sector so far this week. Together with the merger of Orange and MásMóvil, Telefónica and Repsol announce a joint venture to boost the photovoltaic self-consumption business. This association, in which both companies will have a 50% stake, will be focused on creating solutions for companies (large and small), individuals and neighborhood communities.
For Telefónica is another of the strategic associations that join a history of diversification that has grown in recent years. On the part of the joint venture it is not a novelty. It has already agreed on a similar operation with Atresmedia to create content to supply the audiovisual platforms of both companies. As for new markets, the list is long at Telefónica: credit division, Prosegur home security alarms, parental control apps, or online health with Movistar Health. It is clear that Telefónica wants to stop being just a telco and is going for all possible verticals.
According to the company’s statement, the agreement focuses, so far, on explore solutions that involve the experience of connectivity by Telefónica and that of network installations by Repsol. The customer network is the market leader until the union of Orange and MásMóvil is formalized, which forms Telefónica with its fixed and mobile networks. As well as the 3,700 megawatts of low emissions controlled by Repsol. Also with a network of 1.35 million customers in Spain. Right now on the rise as a result of the flat rate offers that combat the increase in electricity prices by time slot. Today at 369.75 euros per megawatt/hour.
Both companies have clarified that there will be an ad hoc electricity rate that will be added to the rest of the offers of the two entities. Especially the Telefónica Fusion package which, precisely at the end of February, announced its evolution to be able to accommodate the entire new offer of the telco.
When will it be available? They point out that the commercial offer will be available in a few months and can be controlled through its own application. From it, you can control consumption and electrical installation. They also add that the new product of the joint venture will have its own management team independent of Telefónica and Repsol.
Diversification and decarbonisation, Telefónica and Repsol seek a way out
It is a great strategic move that implies a great change for both entities.
Telefónica has long sought to get out of its comfort zone. Expand your commercial offer to something more than the services of a large telco company. Get out of your fixed and mobile network offer. In addition to not losing customers –in the face of a massive drop in prices in a highly diversified market–, to explore new avenues of business.
For Repsol, a clear objective: the decarbonization of a company that, for decades, has focused its activity on oil. They have the objective of reaching 20 GW installed by 2030, which represents an increase of 60% compared to the previous goal. In 2025, the closest target, they want to reach an installed capacity of up to 6 GW.
The union between telcos and energy companies, beyond Telefónica and Repsol, is not a novelty in the sector either. With the exception of Orange, its major competitors have also entered the business in their own way. Vodafone with its own subsidiary. MásMóvil with Lucera a few months ago, it was done with the promise of cheap energy and divided by sections. This was, of course, before the regulatory changes and price escalation in the sector.