Spanish telecommunications company Telefonica and Microsoft are expanding their five-year strategic collaboration with the launch of a new project focused on the development of new AI-driven digital solutions. The project will integrate Telefonica's Kernel platform with Microsoft Azure, accelerating the adoption of Open Gateway, a GSMA-led initiative to transform telecom networks into programmable platforms.
Also Read: Telefonica Tech Launches GenAI Platform to Create Virtual Assistants
Telefonica and Microsoft Deepen Their Collaboration
Kernel is Telefonica's core AI-driven platform for developing digital products and services. As part of the collaboration, both companies will invest financial, technological and professional resources to migrate Kernel's capabilities to Azure, offering it as a SaaS solution to help mobile operators simplify their digital transformation processes and accelerate the adoption of Open Gateway.
Joint Go-To-Market Strategy
The partnership also includes a joint go-to-market strategy, making Kernel-powered services available on Azure Marketplace for global operators, developers, and telecom firms. These services will be incorporated into Microsoft's Azure Marketplace, an online store providing applications and services for use on Azure. Additionally, Kernel will be part of Microsoft’s offerings to operators and other players in the telecommunications industry.
Advancing AI and Analytics
As part of Kernel's evolution, Microsoft and Telefonica will also collaborate in the conceptualization, design, development and industrialization of new components and complete solutions of Kernel on Azure, based on Generative AI and Advanced Analytics capabilities to extend the scope and functionality of Telefonica's platform, the companies said in a joint statement last month (February).
Also Read: Telefonica’s Wayra Invests in AI Startup Perplexity, Signs Commercial Agreement
Building on MWC Announcement
Microsoft and Telefonica will co-develop new AI-powered capabilities solutions through Microsoft's ecosystem, benefiting the Open Gateway community, the companies said. This expansion builds on last year's Mobile World Congress (MWC) announcement, where both companies introduced plans to integrate Azure AI Foundry with Kernel.