Telefónica Slates US$12.7bn to Boost LatAm Mobile Telephony Penetration

Spanish telecoms giant Telefónica plans to invest nearly 10bn euros (US$12.7bn) by 2009 to increase its penetration in the Latin American mobile telephony market, José María Alvarez-Pallete, president of Telefónica Internacional was quoted as saying by regional press.

Telefónica currently has a 40% share of the regional mobile telephony market and expects to reach 70% in 2009, Alvarez-Pallete said.

The telco recently absorbed its mobile sister company Telefónica Móviles, which has units in Brazil, Uruguay, Argentina, Chile, Peru, Ecuador, Colombia, Venezuela, Panama, Nicaragua, El Salvador, Guatemala and Mexico.

Latin America represented 22% of the 37.9bn euro fixed line revenues Telefónica billed in 2005 and 47% of the 16.5bn euros Telefónica Móviles billed last year.

Telefónica is also expecting its broadband business to grow by 130% in the region to reach a client base of 5 million in 2009. The company currently has 2.5 million ADSL broadband internet subscribers in Latin America, and registered a growth rate of 125,000 clients a month in the first 5 months of 2006.

BNAmericas.com"

Posted to the site on 14th July 2006