Introduction:
In a somber announcement around 1:00 PM today, it was confirmed that César Alierta has passed away at the age of 78. The former president of Telefónica for 16 years had been grappling with health issues that worsened in recent weeks.
José María Álvarez-Pallete, who succeeded Alierta as the president of the Spanish telecom giant in 2016, was among the first to express condolences for the loss. Alierta’s leadership played a vital role in the history of Telefónica and the telecommunications sector in Spain, witnessing significant international growth, a transformative overhaul of fixed and mobile networks, and a resurgence in Spanish market revenue. Let’s delve into his impactful journey.
César Alierta: The Legal Luminary Who Fueled Telefónica’s Growth
Born on May 5, 1945, Aragonese businessman César Alierta Izuel graduated in Law from the University of Zaragoza in 1967 and earned a Master’s in Business Administration from Columbia University in New York.
Before joining Telefónica, Alierta founded Beta Capital S.A., served on the Board of Directors and the Permanent Commission of the Madrid Stock Exchange, and chaired the then-public company Tabacalera. He also chaired Altadis until July 2000 when he was appointed president of Telefónica, succeeding Juan Villalonga.
His 16-year tenure witnessed the advent of smartphones (led by the iPhone), the widespread use of mobile data with 4G, and the widespread replacement of old copper infrastructure with fiber optics.
Another significant achievement was Alierta’s push for Telefónica’s global expansion through acquisitions like O2 in Europe (with the subsequent sale of the brand in Ireland) and GVT in Brazil.
In July 2000, César Alierta was appointed Chairman and CEO of Telefónica, a position he held until April 2016. Under Alierta’s leadership, Telefónica also saw a boost in Spanish market revenue, notably driven by initiatives like the 2012 launch of Movistar Fusión, now replaced by miMovistar. Additionally, major operations such as the acquisition of Canal+, the precursor to today’s Movistar Plus+, played a pivotal role.
Challenges and Controversies:
Alierta’s tenure was not without its share of controversies. His outspoken statements, such as declaring that Telefónica was not a charity in response to requests from mayors to bring fiber to rural areas, stirred debate.
He even proposed traffic limitations on fixed connections in Spain or charging per consumed gigabyte, akin to mobile data plans before the era of unlimited data.
However, Alierta’s primary target for criticism was Google, stating on multiple occasions that the tech giant should pay for utilizing Telefónica’s networks to conduct business, alongside Facebook and other OTTs. He consistently called for a change in European regulations.
While the idea of Big Tech contributing to network deployment or usage fees was embraced by Pallete, it wasn’t until this year that the European Commission signaled its willingness to consider such measures.
In April 2016, César Alierta stepped down as Telefónica’s president, handing over the reins to José María Álvarez-Pallete, who was the CEO of the Spanish telecom company at the time. Alierta remained on the board of directors until 2017 and continued his involvement with Fundación Telefónica and Fundación ProFuturo, a commitment acknowledged by the telecom giant in a statement expressing that “Alierta has left an indelible mark.”
In recent years, Alierta’s health had been deteriorating due to cardiovascular and respiratory problems. After being admitted to a hospital in Zaragoza a few days ago and remaining in critical condition, Alierta’s passing in his hometown has been confirmed. May he rest in peace.
Conclusion:
César Alierta’s legacy at Telefónica is one of transformation, growth, and strategic challenges. His imprint on the company’s trajectory continues to shape its future, leaving an enduring impact on the telecommunications landscape in Spain and beyond.