Telefonica is simplifying its Spanish operations around B2B, B2C and wholesale businesses, while integrating Telefonica Tech more closely with its enterprise operations as the telecom group targets growth in cloud, cybersecurity, AI, IoT and digital services.
The Board of Directors approved the new operating model at the proposal of Chairman and CEO Marc Murtra, aiming to remove organisational duplication, accelerate decision-making and give individual businesses clearer responsibility for growth.
The restructuring comes as Telefonica Espana reports improving financial and customer metrics. Revenue increased 2.5 percent to €6.51 billion in the first half of 2026, while adjusted EBITDA advanced 2.1 percent to €2.30 billion.
The strategy also signals a broader transformation of Telefonica from a traditional connectivity provider into a telecom and digital-services company capable of taking technologies developed in Spain into other European markets.
Telefonica Creates B2B, B2C and Wholesale Units
Under the new operating structure, Telefonica España will have three major independent business units:
B2B Spain will serve enterprises and public administrations, with a particular focus on connectivity and digital technologies including cybersecurity, cloud, data, artificial intelligence, IoT, defence and security.
B2C Spain will manage Telefonica’s residential business, including fixed and mobile connectivity, television, devices and the Movistar Plus content operation.
Wholesale Spain will continue to manage Telefonica España’s relationships and business with other telecom operators.
The company’s CTIO Spain organisation will separately manage networks, systems and operations, supporting the three commercial units while using automation and AI to simplify infrastructure and operational processes.
The model gives each business clearer accountability while allowing Telefonica to centralise corporate functions that do not need to be duplicated within the Spanish organisation.
Telefonica Tech Moves Into B2B Spain
One of the most significant changes is the full integration of Telefonica Tech into B2B Spain.
Telefonica sees enterprise technology services as an important source of growth beyond traditional telecom connectivity. The B2B unit will combine Telefonica’s enterprise customer relationships in Spain with capabilities spanning cybersecurity, cloud, data, AI, IoT and defence technology.
The company intends to use Spain as a base for taking these capabilities into additional European markets.
This strategy is supported by the changing revenue mix of Telefonica’s enterprise operation. Digital services are already growing at double-digit rates and represent more than half of B2B Spain’s revenue.
That makes enterprise digital services increasingly important to Telefonica’s growth strategy as telecom operators seek revenue opportunities outside mature mobile and fixed-connectivity markets.
Borja Ochoa will lead B2B Spain while remaining non-executive Chairman of Telefonica España. Sofía Collado will continue to lead Telefonica Tech.
B2C Spain Targets New Revenue Beyond Connectivity
Telefonica is also giving its consumer operation greater independence.
B2C Spain will combine mobile and fixed connectivity with television, hardware, devices and Movistar Plus content. The company plans to pursue additional opportunities around the connected home and digital consumer services.
Potential growth areas include home alarms, connected devices, international content sales and travel eSIMs.
The strategy indicates that Telefonica wants to extract more revenue from its large consumer relationship rather than relying primarily on conventional mobile and broadband subscriptions.
B2C Spain will be led by Óscar Candiles, who will also join Telefonica’s Executive Committee.
The consumer unit starts from a relatively strong position. Telefonica España has more than 16 million mobile contract accesses, while customer churn has fallen to an all-time low of 0.7 percent.
Low churn is particularly important in Spain’s highly competitive telecom market because retaining customers reduces acquisition costs and creates opportunities to sell additional connectivity, entertainment and digital services.
AI and Automation Move Deeper Into Network Operations
Another important component of the restructuring is CTIO Spain, which will manage Telefonica España’s network, IT systems and operations.
The organisation has been given a mandate to simplify and transform processes through artificial intelligence and automation.
This makes the restructuring more than an organisational exercise. Telefonica is attempting to change how its network and operational resources support different commercial businesses.
CTIO Spain will provide technology services to B2B, B2C and wholesale operations rather than duplicating technology capabilities across the businesses.
Sergio Sanchez will lead CTIO Spain and join Telefonica’s Executive Committee.
For Telefonica, greater automation could help reduce operational complexity while allowing network and IT resources to respond faster to commercial requirements.
Support Functions Move Into Corporate Organisation
Telefonica is also removing duplicated support structures between the group and its Spanish operation.
Telefonica Espana’s Finance and Control, Strategy, People, Legal, Security and Audit functions will be incorporated into their corresponding corporate organisations under Marc Murtra.
Employees will remain assigned to their existing legal entities, meaning the restructuring changes management and reporting responsibilities rather than Telefonica España’s legal structure.
The objective is to reduce overlapping functions, simplify coordination and move more resources and management attention toward technology and commercial operations.
Telefonica said its financial reporting structure to investors will remain unchanged.
Telefonica Spain Revenue Reaches €6.51 Billion
The organisational overhaul comes against a backdrop of improving operating performance in Spain.
Telefonica Espana generated €6.51 billion in revenue during the first half of 2026, representing growth of 2.5 percent year on year.
Adjusted EBITDA reached €2.30 billion, increasing 2.1 percent.
Performance strengthened further during the second quarter. Revenue between April and June increased 2.9 percent, representing Telefonica España’s fastest growth rate since the end of 2023.
Adjusted EBITDA increased 2.3 percent, its strongest growth since the end of 2019.
The figures give Telefonica greater room to reorganise around growth businesses rather than undertaking restructuring solely in response to declining financial performance.
Wholesale Business Remains Independent
Wholesale Spain will remain a dedicated business unit under Marisa Urquía.
The operation manages Telefonica España’s business with other telecom operators, keeping wholesale infrastructure relationships separate from consumer and enterprise commercial operations.
B2B Spain, B2C Spain, Wholesale Spain and CTIO Spain will report directly to Chief Operating Officer Emilio Gayo, alongside Telefonica’s businesses in Germany, Brazil and the United Kingdom.
The reporting structure gives the Spanish business units a more direct relationship with Telefonica’s group-level operating management.
Telefonica Simplifies Movistar Plus Governance
The restructuring also affects Movistar Plus.
Telefonica will dissolve the Movistar Plus Board of Directors, with Javier de Paz leaving his position as non-executive Chairman.
He will take on responsibilities for Business Development and Business Continuity at European level while retaining responsibilities covering infrastructure, real-estate assets and corporate social responsibility.
Movistar Plus’s commercial activities will become part of B2C Spain, bringing connectivity, entertainment and consumer digital services under a single leadership structure.
Telefonica Targets Stronger European Technology Position
The restructuring supports Telefonica’s broader Transform & Grow strategic plan, which aims to make the company simpler, more digital and more competitive through 2030.
A particularly important element is the ambition to use Spain as a platform for expanding digital capabilities internationally.
Rather than treating Telefonica España only as its domestic telecom operation, the group wants capabilities developed in cybersecurity, cloud, AI, defence, IoT and consumer digital services to support expansion elsewhere in Europe.
Telefonica is also positioning the strategy around European technological autonomy, an increasingly important issue as European governments and enterprises examine their dependence on non-European cloud, cybersecurity and digital infrastructure providers.
The restructuring therefore has two objectives: simplify Telefonica’s largest operating structures while creating clearer platforms for growth beyond traditional telecom connectivity.
With Spanish revenue growing, churn at 0.7 percent and digital services already generating more than half of B2B revenue, Telefonica is putting enterprise technology, AI-enabled operations and new consumer services at the centre of its next phase of growth.
