Telefónica aplica la IA de forma masiva para reinventar su filial alemana 02

Telefónica is implementing artificial intelligence (AI) extensively to revamp its German subsidiary, Telefónica Deutschland, also known as O2. This transformation process was initiated when Santiago Argelich Hesse, a Hispanic-German, became the new CEO in January. O2, the third-largest subsidiary by size with €8.172 million in revenue in 2025, has faced significant challenges since 2023 due to rival 1&1's decision to cease mobile network leasing, leading to potential annual losses of up to €500 million.

Although the network transfer ended in 2025, the impact of the 1&1 deal continues to affect O2's revenues, with a 3.8% decline in 2025 and a further 9.8% drop in the first half of 2026. The new CEO aims to address these issues by applying AI in various aspects of the organization, including network management, user experience, and internal processes.

This has led to the signing of a restructuring agreement for around 1,100 employees in 2026, as well as the closure of 60 own stores due to increased digital channel usage. Additionally, 265 million euros have been set aside for these changes. O2's growth opportunities are primarily in its business-to-business and public sector segment, with a minimal market share of less than 5%.

The CEO believes that O2 can compete with Telekom and Vodafone in these areas and has already secured significant contracts with German retail giants like Deichmann and JYSKS. The company also aims to expand its presence in the market by partnering with Aldi Talk, the mobile service of the retail giant Aldi, and by launching a new premium brand for the wholesale market.

While a potential acquisition of 1&1 by Telefónica is not on the table for now, the CEO acknowledges the complementary nature of 1&1's business, particularly in the broadband market, which could help O2 achieve a more balanced market position.