Emilio Gayo, Telefónica CEO, at Esade: “To ensure digital sovereignty, Europe needs homegrown tech”
To ensure digital sovereignty, Europe needs homegrown tech. Without our own code and capabilities, it’s just a pipe dream.” With these words during his talk at the latest Esade Desayunos session organized by Esade Alumni in partnership with CriteriaCaixa, Emilio Gayo, Telefónica CEO, set Europe’s tech sovereignty squarely amongst the major challenges on the new global landscape.
During his address, the Telefónica CEO underlined the two huge changes sweeping through the telecom industry: the tech revolution caused by A.I. and the new global geostrategic scenario, particularly in Europe. “AI is a real sea change for both our business and our customers. Telefónica has evolved from being a telecom operator to being a tech partner, which means not just changing ourselves but helping other companies change too,” he explained.
Against this backdrop, Gayo also mentioned how the status of European tech has changed in recent decades. “Europe missed the tech boat years ago. There might once have been five or six European companies in the world’s top twenty, but now it’s hard to find even one,” he said, pointing out that the EU’s legislative framework, traditionally designed to protect consumers and keep prices down, has hampered market consolidation and, consequently, the creation of the synergies so necessary for global players.
Gayo did, however, say that he could see a shift in public, regulatory conversations about the development of European tech. “For the first time, I’m seeing a political willingness to make changes that could bolster tech development. I’d heard a lot of fine words, but now I’m hearing firm declarations and starting to see steps being taken.”
A strategic plan focused on customers, infrastructures and streamlining
Gayo explained at Esade Desayunos that the need to boost homegrown tech capabilities is also part of Telefónica’s new strategy based on several core concepts, including the construction of an industrial plan with a particular focus on customer service. “AI will have more of an impact on excellent service than on efficiency. It’ll enable us to make fewer errors and significantly improve the customer experience,” he said.
In this respect, he highlighted the maturity of the traditional telecom business, already operating like a commodity, which is forcing telcos to expand into new business areas without losing their identity. “In today’s business segment, we’re selling more services that are not strictly communications. It’s essential to enlarge the ecosystem and explore new lines of business based on our capabilities,” he said. “However,” he warned, “we should never lose sight of the fact that we are telecos.”
Another cornerstone of Telefónica’s strategy is its focus on people, a factor that Gayo associates with his company’s ability to adapt in an extremely technical industry. The Telefónica CEO deems talent to be a crucial distinguishing feature. “We have very highly qualified profiles and a profound sense of belonging, and this defines our corporate culture,” he declared.
Finally, Gayo emphasized that the greatest challenge is not just technical but cultural. “The hardest thing is to keep an open mind whilst being ambitious and able to change. We have to be very selective as regards recruiting talent and in-house promotions, we’re always on the lookout for forward-looking profiles able to adapt and make an impact.”