Telefonica Deutschland and O2 to Merge

Telefonica Deutschland and O2 recently announced plans to unite their business-to-business operations, while also putting together the operation of their mobile communications and landline infrastructures to form a common body that would be called Telefonica O2 Germany, which would be able to provide convergent offers, while also registering further growth in the future.

The two companies also announced that the new business division would have Johannes Pruchnow, currently the CEO of Telefonica Deutschland, as its managing director. At the same time, Andrea Folgueiras, CTO at Telefonica O2 Germany, will take care of the landline operations in addition to current responsibilities.

The newly formed business division will combine the sales and marketing of the business customer offers aimed at small, medium-sized and multinational companies, in addition to the landline wholesale business, which is currently seen as the second important branch of activity after the O2 consumer business. In addition to merging businesses, it seems that the two companies also plan on consolidating their network areas, both mobile communications and landlines.

“Thanks to the merger of Telefonica Deutschland and O2, we have a strong landline and mobile communications organization that is able to act and react flexibly to market changes. At the same time, we are securing opportunities for further growth in a convergent world,” comments Jaime Smith Basterra, CEO at Telefonica O2 Germany.

According to Andrea Folgueiras, the company will have the state-of-the-art IP-based landline and the wireless infrastructure at the core of its businesses. The new partnership is expected to offer the possibility to merge the two areas faster than before. Basically, Folgueiras says that new synergies will be created through the restructuring process.

“Offers combining landline and mobile communications are becoming increasingly important, for business customers in particular. The new business division enables us to further expand our portfolio consisting of mobile, Internet access and VPNs. Our successful wholesale business we will continue independently as part of the business to business unit,” says Johannes Pruchnow, CEO at Telefónica Deutschland.