KUALA LUMPUR (July 28): Axiata Group Bhd has partnered with Telefónica to jointly provide digitalisation services to businesses across both companies' operating regions.
Axiata, in a statement today, said its business-to-business (B2B) unit Axiata Enterprise inked a strategic partnership agreement with the Spanish multinational telecommunications firm to leverage off each other's scale, expertise and market presence in their respective regions.
The agreement would see Axiata Enterprise join the Telefónica Partners Programme, an initiative launched in 2011 as part of Telefónica Tech, which includes other leading telecom operators covering a total of 65 markets in Europe, Latin America and the Middle East and Africa, as the only Asian partner covering 11 markets in the region, the company said.
"The partnership aims to deliver an ambitious regional growth plan fostering the digital transformation of its corporate customers across markets, leveraging on the complementary geographic footprints of the two companies in Asia, Europe and Latin America.
"With the shared focus on helping their customers to digitalise and make their businesses more competitive, both companies will collaborate in strategic areas to promote growth and capture synergies," Axiata said.
A key focus of the collaboration will be the provision of digital services including cybersecurity, cloud and Internet of things/big data, said Axiata, adding that partners will pool resources to extend and develop new vertical offerings to industry segments such as agriculture and food, mining, energy or transport.
"Additionally, the companies will share their expertise in the B2B value chain and will cooperate in strategic projects. Under the agreement, they are also committed to exploring synergies in the international wholesale telecommunications market and other areas," Axiata said.
Under cybersecurity, where it will be supported by Telefónica Tech's cybersecurity company ElevenPaths via the collaboration, Axiata Enterprise will be able to enhance its security services to corporate customers and improve the security of its networks.
"ElevenPaths is a leading player in markets where it operates with a comprehensive offering across the value chain powered by over 1,400 professionals and 11 security operation centres located worldwide and operating globally," Axiata said, adding that ElevenPaths has been recognised as a leader in Gartner's 2019 Magic Quadrant for Managed Security Services.
"Axiata is committed to bringing our customers the best in fit-for-purpose digital solutions. In this time of post-Covid-19 recovery, as businesses globally grapple to return to peak efficiency, we believe this strategic Telefónica partnership will accelerate our ability to meet with growing demand," said Axiata Enterprise chief executive officer Dr Gopi Kurup.
"We have great respect for Telefónica's track record, especially on its digital and B2B capabilities, and see it as highly complementary to enhance our own in an effective manner. We are confident that this partnership is a step forward in making Axiata a new-generation digital champion by 2022," Gopi added.
"Axiata is a company fully aligned with our aim of supporting customers to accelerate digital transformation of their organisations and the need of leveraging scale to provide best-in-market technology solutions and digital services. We are really excited about joining forces with one of the leading telcos in Asia. It will bring important benefits to both our groups," said Telefónica strategic alliances group director Jacobo García-Palencia.
Axiata's shares closed one sen or 0.31% higher at RM3.22 today, valuing the telecommunications company at RM29.52 billion. Around 4.36 million shares were transacted today.
Year-to-date, the counter has fallen 22.22% from when it was trading at RM4.14.