Lorraine Williamson
Telefónica is preparing for a heavier investment phase after its new executive chairman, Marc Murtra, set out a plan to spend €32 billion between 2026 and 2028 across investment and operating costs, positioning it as a competitiveness play in a tougher European telecoms market.
Murtra laid out the message in a public appearance in Barcelona, arguing that the greater risk for large operators is drift: too many moving parts, too little focus, and not enough speed to keep up with US and Chinese tech giants shaping the rules of the digital economy.
What Telefónica says the money will target
The emphasis is on the unglamorous foundations that make everything else work: networks, fibre, data, cybersecurity, and the tools that improve efficiency, including AI. Murtra has also argued that Europe’s telecoms industry is too fragmented and needs consolidation to compete at scale.
In practice, this strategy also reinforces Telefónica’s long-running pivot away from parts of Latin America, prioritising its largest and most profitable markets such as Spain, Germany, the UK, and Brazil.
Why this matters for Spain
For Spain, Telefónica’s investment rhythm is more than a corporate story. The company remains central to national connectivity, business digitalisation, and public-sector infrastructure. A higher spend cycle tends to feed into faster network upgrades, more resilient capacity during peak demand, and fresh investment pressure on competitors.
It also lands at a moment when Spanish politics is talking more loudly about platform responsibility, cyber risks, and the protection of minors online. This is the environment in which telecoms are making the case that secure networks, identity tools, and security services are no longer optional extras.
The future of the European telecoms market
The headline figure is striking, but the detail will matter: how much goes to network build versus software and security, whether Telefónica pursues further asset sales to fund priorities, and how far Murtra can push a “simpler” group without losing growth options.
If Murtra’s consolidation message gains traction in Brussels and national capitals, 2026 could also bring renewed debate about cross-border mergers and the future shape of the European telecoms market.
Sources: