Arthur D. Little: Consolidation could open the door to acquisitions of local operators

General

Presentation by Arthur D. Little at the “Asteo Conecta” event at the XVII Aotec Fair

 

Challenges for the Local Operator: Strengthening the business, maintaining its identity, and exploring new opportunities

 

Jorge Abril-Martorell, partner at Arthur D. Little Spain, presented the current telecommunications landscape at the Asteo Red Neutra stand, outlining key points that define the industry’s direction and its impact on local operators. From macroeconomic perspectives to market strategies, Abril-Martorell offered a detailed insight into the challenges and opportunities these companies face in an increasingly competitive and dynamic environment.

 

 

During the meeting, Abril-Martorell highlighted the impact of defense mechanisms on the local market, especially in a context marked by inflation and fluctuating exchange rates. The pandemic has exacerbated the situation, leading to three years of economic difficulties and a notable scarcity of liquidity and financing. This situation has slowed down the implementation of business plans and resulted in high inflation rates in the industry, affecting retail market turnover.

Regarding infrastructure, Abril-Martorell emphasized the exponential growth of fiber optics, with 90% coverage and rapid customer migration. However, he also pointed out the regional disparities in connectivity availability, highlighting areas such as Castilla y León, Asturias, and Galicia, where there is still room for growth. This situation poses challenges and opportunities for operators like Asteo and Bluevia, who seek to close the connectivity gap in rural and less densely populated areas.

 

In terms of competition, Abril-Martorell underscored the importance of simplified offerings and quality customer service. While large national operators have consolidated their position in the market, local operators have the advantage of offering more understandable propositions and more personalized service. However, he warned that market consolidation could open the door to large-scale corporate movements, where national operators might acquire local operators , significantly altering market dynamics.

 

In this context, Abril-Martorell emphasized the need for local operators to focus on strengthening their business, maintaining their identity, and exploring new growth opportunities. This includes improving convergent service offerings, expanding B2B segment presence, and diversifying revenue through complementary services such as insurance, home security, and energy. Furthermore, he highlighted the importance of leveraging wholesale services to enhance competitiveness and profit margins.

 

The B2B segment is key to their growth

To ensure their success in an increasingly competitive market, local operators must implement a series of key improvements, among which the development of the business services segment stands out.

It is essential for local operators to strengthen their presence in the B2B area, leveraging the growth potential this sector offers. To achieve this, it is crucial to offer comprehensive and personalized solutions that meet the specific needs of businesses, from connectivity and telecommunications to additional services such as security, data management, and information technology solutions. . By focusing on this expanding market, local operators can diversify their revenue streams, reduce their dependence on the residential market, and establish strong, lasting relationships with commercial clients.

If local operators provide specialized, high-quality services for businesses, they can differentiate themselves from the competition and position themselves as strategic partners for business growth and innovation in their local communities.

In summary, the future of local operators in the telecommunications sector is marked by a combination of challenges and opportunities. While competition with large national operators is high, local operators have the advantage of their customer-centric approach and their ability to adapt quickly to market needs. However, to maintain their position and continue growing, it is essential that they continue innovating and diversifying their services to meet changing consumer demands and fully leverage the opportunities the market offers.

 

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Patricia Moreno Pacheco

Deployment Manager Director

Trained as an architect at the University of Seville and with international experience after her studies at the Leibniz Universität Hannover, she has a multidisciplinary technical profile. He stands out for his analytical capacity and leadership in telecommunications infrastructures, providing a highly consolidated strategic vision.

Her career began in civil architecture, working as a Municipal Architect and energy certifier. In 2017 she oriented her career towards the telco sector by joining Nokia as FTTx Network Design Engineer. For five years, he participated in large multinational deployments for operators in the USA, Italy, Chile, the Philippines and Germany. Later, at Inelcom, he took over team management and implementation support for the German UGG network, mastering the construction and last mile phases. All this international supervisory experience brought her to Asteo Red Neutra in 2023, where she manages field operations as Deployment Manager.

Away from blueprints and fiber optics, he is an active person who likes to enjoy his free time. He is passionate about climbing, paddle tennis and traveling, always looking for new environments to disconnect.

Laura Díaz

Marketing & Communications Director

With 20 years of experience, Laura has developed the communication strategy for national and international companies. Since the official launch of ASTEO Red Neutra, she has led its communication and content strategy as an external consultant, until her incorporation to the team.

She started her career as a journalist in the IT sector. She specialised in Communication, advising companies in various sectors (banking, asset management, private equity, insurance and insurtech or telecommunications). She led Evercom's Financial Communication department, in charge of the area's growth strategy and the management of the team and clients.

She graduated in journalism from the Universidad Católica Andrés Bello, in Venezuela, took the ABC-UCM master's degree in journalism, and complemented her education with studies in International Business at Dublin Business School, and sustainability at the University of Cambridge.

Married to Santi, she is the mother of two children and, whenever she has some free time, she loves going swimming and to the cinema or enjoying long dinners with friends.