Telefónica announced that it will divest all of its assets in Latin America, with the exception of Brazil, "due to geopolitical and macroeconomic uncertainty. "Progress will be made in regrouping operations into a single block and different alternatives will be sought to generate greater value for the region's operation," the company said.

Under pressure from the loss of shareholders' confidence and the demands of the digital revolution, the group chaired by José María Álvarez-Pallete announced to the National Securities Market Commission (CNMV) a series of key decisions that "will mark an era in the company.

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"The particular conditions in these markets have impacted on the evolution of our businesses, diminishing their contribution in recent years for various reasons (macro and regulatory environment, increased competitive pressure, insufficient scale or volatility of currencies)," the CEO explained.

"Geopolitical, macroeconomic and regulatory uncertainties and high competition in the sector require increasingly demanding capital allocation. If in the past the low penetration of voice and data services, especially in emerging countries, ensured future growth, the growing maturity of markets and the emergence of new competitors subject to different rules demand very focused strategic approaches," he added.

After a meeting of Telefónica's Board of Directors in Barcelona, the company decided to prioritize its four strategic markets and create new areas such as the digital unit Telefónica Tech and Telefónica Infra, which intends to consolidate Telefónica's shareholdings in communications infrastructure.

According to the director, the company will concentrate its business in Brazil, Spain, Germany and the United Kingdom because "these are large markets with growth potential and where our scale and leadership allow us to aspire for more".

The objective of the plan is to grow in a sustainable long-term model and generate more than 2,000 million euros in additional revenue in 2022 through the new digital unit Telefónica Tech.

" These are our main markets. In these markets, in recent years, we have strengthened our positions, both organically and inorganically, improving the value proposition we offer to customers and with a very significant effort to improve the customer experience over the most advanced ultra broadband networks," he said.