Fernando Barreira: Thanks for taking my two questions. The first question is regarding on the lifting in the strategic guidance like you have updated and particularly on Telefónica Tech and are we — you understanding the capitalization opportunities in that sense, you have mentioned in the past that the M&A trend in order to enlarge the business what already made. So in that sense, do you believe that you’re already prepared to incorporate some financial partners there? Or what is, let’s say, the meaning of the capitalization process? And the second question is coming back to Spain, I agree on the fact that the operational projects regarding the decommissioning of the copper network might be the one. I believe also that you are starting to have some visibility on the endgame in terms of OpEx and CapEx savings on the front, just willing to understand in the reasoning in terms of quantifying the impact of decommissioning of the copper network, particularly in terms of finance?
Angel Vila: Thank you, Fernando. On Telefónica Tech, I understand there were two parts to your question. One, our M&A strategy, so far, with the company; and second, crystallization of value. Let me start with the M&A strategy of Telefónica Tech. We have been expanding our scale and capabilities with very selective acquisitions, which are now mostly completed. We wanted to expand our service offering. And for this, we acquired, for instance, in Spain, a company called Altostratus, which is specialized in multi-cloud services and Google Cloud premier partner for Southern Europe and or Geprom also in Spain, small acquisition, which reinforced our capabilities in Industry 5.0. But we also wanted to expand and strengthen our geographic presence, most notably in European markets where we were more consumer-facing.
So in the U.K. which accounts for a small part of Telefónica Tech’s total addressable market, we have made two significant acquisitions. The former CANCOM UK&I has now renamed Telefónica Tech UK&I. And then we acquired — that was in 2021, and then we acquired in March 2022, a company called Incremental. Thanks to these acquisitions, we have now nationwide coverage with cloud cybersecurity, data capabilities, more than 1,000 highly skilled professionals. And we are with extensive accreditations in Microsoft solutions. And for the rest of Europe, and a special focus in Germany, we made the acquisition of BE-terna. And thanks to this, we enriched our situation in Germany and in the market. With this Telefónica Tech continues to show a very strong growth momentum.
I was through the presentation talking about the revenue growth with and without the change of perimeter. And we continue progressing in the plan that we had which, at some point, may entail crystallization of the value through different methods. We are trying to give you more and more visibility of this unit in our presentations and reports so that hopefully, at some point, you can reflect it in our sum of the parts. Second question, I think, were regarding the benefits from copper network shutdown, which is planned for 2024. We should say that dismantling the copper network brings both OpEx and CapEx savings. Because running a fiber network is much cheaper than running a copper network, less maintenance, much more efficient in terms of energy consumption.
Fiber is 85% more efficient than copper. Some of these benefits are already being captured either in revenues through sales of copper, sale of real estate. Also, in OpEx and CapEx, we are already experiencing lower cost of maintenance, energy consumption, less filler rates, less call center attentions. So in 2023, we will continue gradually be capturing those. And then the process will continue when, in 2024, as was said in the presentation, we would be the first telco globally to switch off the copper network. Due to regulatory obligations, we will need to maintain the wholesale services for extra 6 months after switch off, but that will be the case. So network transformation efficiencies will continue increasing year-on-year until this transformation is completed and structural benefits will remain, clearly, reduced OpEx, be it lower network costs and lower recurrent investments.
