MWC 2019: Telefónica, Microsoft establish strategic partnership
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Joseph O'Halloran
| 26 February 2019

Aiming to design what they believe will be a form that can transform the telecommunications industry, Telefónica and Microsoft have announced a strategic partnership to collaborate on projects to accelerate innovation at the global operator.

The two companies say that they will be building on their previous work together around the use of data and Telefónica’s Fourth Platform to power offerings such as Aura, its artificial intelligence -powered digital assistant. It will combine the reach and capability of Telefónica’s networks, which it says has a unique customer proposition, with the Microsoft Azure AI platform to design services telcos will offer in the future.

They will also expand the use of Azure Cognitive Services for customer engagement and business processes, create new AI-powered, in-home experiences for customers and explore the use of intelligent technologies to transform the network.

Azure Cognitive Services already power Aura, which is embedded in channels such as mobile app and the company’s Movistar pay-TV service.

Microsoft and Telefónica say that they will also explore working together to identify opportunities using AI and disruptive technologies like blockchain, 5G and edge computing to transform services and build the network of the future. The two will collaborate through the creation of a joint working team to explore how AI and machine learning can be applied to optimise its network, reduce costs and, in turn drive industrywide transformation.

“Telefónica has been a leader in using AI to transform customer engagement, and the strategic partnership we announced today builds on this history of innovation,” said Satya Nadella, CEO of Microsoft. (Pictured left with Telefónica chairman and CEO José María Álvarez-Pallete.) “Together, we will apply the power of Azure and Azure AI to create new, innovative experiences for millions of Telefónica customers around the world and shape the future of Telefónica’s network.”

“Telefónica is applying cutting-edge technology to its ongoing transformation, pioneering virtualisation and softwarization [sic] to develop smart, liquid networks ready to be powered by AI,” added Álvarez-Pallete. “Specifically, we are already using AI to enhance our customer relationships and are really excited to work with Microsoft to further harness the power of Azure AI. This agreement strengthens our relationship and our common belief that AI technology and the use of data should be based on solid ethical principles and empower people to control their digital lives.”