Telefónica Defense Strategy
Telefónica expands defense chief's authority as it seeks major military contracts
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Telefónica has handed its defense chief Javier López Gutiérrez full control of the group's military arm, appointing him Sole Administrator of the newly rebranded subsidiary La Opinión de Murcia. The move comes as the Spanish telecoms giant races to win billion-euro contracts from the Ministry of Defense and cement its role as a pillar of the country's national security infrastructure.
The subsidiary, formerly called Telefónica Ingeniería de Seguridad, was renamed Telefónica Defensa y Seguridad (TDS) on May 27, 2026, in the official Mercantile Registry Información. López Gutiérrez now holds unified command over everything from 5G battlefield networks to satellite surveillance systems.
Telefónica Transforms From Telco to Defense Powerhouse
The promotion is the final step in a two-year corporate overhaul. Executive President Marc Murtra, who joined Telefónica in January 2025 after leading defense contractor Indra, has driven the shift toward what insiders call "sovereign technology" El Correo Gallego. The company is no longer just a phone and internet provider — it is now competing directly for high-value military contracts.
The results speak for themselves. Telefónica won 69% of all technology tenders issued by the Ministry of Defense in 2024 Levante-EMV. B2B technology services now make up nearly 48% of the company's domestic revenue. The defense division is expected to grow at double-digit rates, filling the gap left by a stagnant retail mobile market.
Billion-Euro Contracts Drive the Defense Push
The stakes are enormous. The MC3 Program — a Command, Control, and Communications network for the Spanish Army — is worth €950 million and is being developed by a consortium including TDS and Indra Diario de Mallorca. An earlier contract, the I3D secure communications network for the Armed Forces, was worth €80.3 million. These are the kinds of deals Telefónica is now built to win.
Spain is also under NATO pressure to raise defense spending to 2% of GDP. Telefónica is positioning itself to capture that windfall. In March 2026, the company and the Ministry of Defense opened Europe's only 5G Cyberdefense Center, integrated directly into NATO's Digital Foundry initiative Diario Córdoba.
State Backing and Rival Complaints Fuel Market Tension
The Spanish state entered Telefónica's capital in May 2024, when SEPI — the state holding company — bought a 10% stake to protect "strategic interests" after Saudi group STC moved in La Provincia. Critics say this close relationship gives Telefónica an unfair edge. Rival operator Orange Espagne filed a formal appeal against a €10 million defense tender, claiming the technical requirements were written specifically to favor Telefónica's infrastructure.
Political opposition is also growing at home. The junior coalition partners Sumar have criticized the government's €2.3 billion investment in Telefónica through SEPI while the company carries out layoffs affecting 4,500 workers LNE. Analysts at XTB note the company halved its dividend in 2026 to fund the heavy research and development costs of the defense pivot.
López Gutiérrez Now Holds the Keys to Spain's Military Tech
A cybercrime expert and longtime security director at Telefónica, Javier López Gutiérrez is the man now at the center of it all El Periódico de Aragón. As Sole Administrator, he has the power to make fast decisions without the layers of a traditional board structure. That speed matters when military contract bids move quickly.
Looking ahead, rumors persist of a joint bid with Indra to create a "Sovereign Tech Platform" consortium targeting contracts worth over €1 billion El Periódico Mediterráneo. By controlling 5G networks and satellite infrastructure — through a partnership with Sateliot — Telefónica aims to ensure Spain's military never depends on foreign providers like Huawei or Cisco for mission-critical communications.
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