Telefonica has shifted its strategy, narrowing its focus to four main markets--Spain, Brazil, Germany and the U.K.--a move away from pursuing growth across several markets. This includes a restructuring plan to set up an autonomous unit comprising all Latin American markets, except Brazil. Additionally, the firm has created separate infrastructure and technology divisions in order to pursue growth or divestment opportunities outside the tradictional telecom space. In early 2021 Telefonica continued with its divestment strategy and sold its stake in Telxius (its tower infrastructure arm) to American Tower for EUR 7.7 billion, which will be used for debt reduction. We think the new strategy is beneficial as it reduces emerging market macroeconomic and currency risks, improves efficiency of operations and provides deleveraging opportunities. Like other European telecoms firms, Telefonica sees business-to business, or B2B, services, like the "Internet of Things," cloud and cybersecurity as key growth streams with low capital spending needs. The digitalization trend is favorable, but the B2B segment is fragmented and competitive.