This sector has undergone a huge transformation in the last decade, as a result of technological evolution and changes in consumption patterns. The Spanish telecommunications sector is one of the largest in Europe.

An essential sector in the aftermath of the COVID-19 pandemic

From pay-per-minute, call schedules, frequent number offers, data rates linked to voice minutes, and a pay-per-view TV package service, it has moved to a convergent, packaged product. The combination of Internet services with fixed and mobile telephony bundles has promoted competition among market players. The commercial battle also shifted to content, resulting in a strong development of pay-TV.

The efforts made since 2015 to deploy 4G have resulted not only in higher browsing speed but also in a higher degree of availability compared to other European countries. As a result, data traffic has increased and new consuming habits have emerged. Currently operators are already looking towards 5G.

Finally, large operators have resorted to the consolidation and launch of low-cost brands as a strategy to capture the growth of the most commercially vigorous customer segments.

2020 has been a turning point in all areas. The COVID-19 pandemic brought with it multiple challenges and changes that will be etched into the social, political, and economic history of the globe, and its impact in the years to come is still difficult to assess. The pandemic has proven the need of being connected in the realm of telecommunications, and teleworking has become a requirement. Also, it is noteworthy that the telecommunications networks' strong performance in managing the exponential expansion of domestic traffic is remarkable.


Operators are looking for ways to streamline the creation of new services, as well as network deployment and operation. They must also monetize the huge investment required for 5G technology and improve customer satisfaction levels in an increasingly competitive environment.

David Argibay, Telecommunications Engineer — Avalon

An extremely competitive market that demands agility and the development of innovative services and products

The COVID-19 pandemic has given a strong boost to digital transformation.

Companies that were reluctant to embrace technological change were forced to transform themselves by the need for mass adoption of telework. This resulted not only in an exponential increase in video calls and collaboration tools but in a whole new suite of tools that allow businesses to be much more agile in their operations. This is reflected in the telecommunications market, which was already looking for ways to be much more agile in its operation, network deployment, and creation of new services.

Legacy systems hinder innovation and operational agility

The telecommunications industry is still a very hostile and competitive environment which requires a quick response to competition movements and the creation of unique and creative products to prevent value erosion. However, generally speaking, the development of new products requires developments in a large number of systems due to the multiplicity of existing systems as a result of the sector's concentration process, which increases the cost and deadlines.

Corporate services and customer service improvement

Operators are starting to realize that the B2B corporate services market is where they will be able to recover their investment in the 5G technology.

However, the investments required to ensure that existing infrastructures' capacity could properly meet demand during confinement, and thus the increase in telework, could result in a delay in the necessary investments in new 5G telecommunications infrastructures, as well as the expansion of optical fiber in less densely populated areas.

Also, the industry must make investments in areas like customer care and service quality in order to improve customer satisfaction levels, which is another challenge it faces.

Digital is Human

Avalon Telco

We drive the digital transformation of business processes and make new digital services more cost-effective and efficient.

At Avalon, we promote the digitalization of telecom companies' business operations and contribute to the enrichment of their value proposition by developing new digital services that always aim to maximize investments and reduce operational costs.

We cooperate on the design and development of software solutions aimed at automating activities in marketing, sales, and communication for new product launches, customer loyalty, life cycle management, campaign management, and promotions.

We also assist in the management of projects throughout their life cycle by applying agile methodologies and providing technical profiles such as project managers, managers, design and provision technicians, and service managers, among others.

Some of our clients in the Telecommunications Sector

  • Movistar
  • Vodafone
  • Telefónica