There is a ‘cover’ in the business that will generate the increase in defense spending: Telefónica

Telefónica is not just the dean and leader in clients of Spanish telecos: it is also the one who dominates the technological tenders of the Ministry of Defense. It is no accident.

AND will go to more.

Why is it important. Spain has adhered to the plan to reach 5% of GDP in military spending, although maintains your plan not to invest more than 2%. In any case, there is a horizon to increase that item that will result in more than a dozen billions of euros additional to current investment.

And everything indicates that Telefónica will be one of the great beneficiaries of this expansion.

In figures.

It is not a monopoly because there is plurality of winners, but the concentration is very high.

The context. The State is the main shareholder of Telefónica with the 10% that invested –2.3 billion– in May 2024.

Marc Murtrathe president who arrived six months ago, came from Indra, another participated by the State, after the SEPI forced the change in management.

In detail. In the last two years, Telefónica has multiplied its presence in defense. Among the main recent contracts include:

Yes, but. This concentration in state companies has a geopolitical logic. The government wants to shield military communications against foreign technological dependencies.

Especially after The recent rupture with Israeli suppliers such as Elbit Systems that advocates the government. The beneficiary, according to an exclusive The confidentialit will be most likely Indra. In any case, national security justifies state control.

The threat. For private competition, the panorama is complicated. With the increase in defense spending and preference for companies participated by the State, opportunities for other operators are reduced. It is a market that is nationalized by the back door.

The Declaration of Murtra in Congress three weeks ago He speaks for himself: “Telefónica wants to invest in defense, but always subordinated to the defense policy that marks the ministry,” he said.

Translation: We are an executing arm of the state, not an independent competitor.

Deepen. The new budget of 34,000 million for 31 Special Modernization Programs It will be the great test. Telecommunications, cybersecurity, command and control systems: Everything goes through the digital infrastructure already controls.

It is your time to capitalize years of investment.

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