Telefonica Changes Focus Away from Acquisitions
August 31st, 2010
Spain’s Telefonica plans to focus on developing new internet services and growing its business organically, after nearly a decade of aggressive acquisitions, its chief executive officer said late yesterday.
“One of Telefonica’s strategic priorities is to set up a global division to develop and implement new internet products and services,” CEO Julio Linares told journalists in comments embargoed until today.
After recent expansion in key growth markets, such as Germany and Brazil, the Spanish telecoms group now has 278 million clients and sufficient critical mass to focus on organic growth, Linares said.
“We have very little left on our pending list to do,” he said.
Last month, Telefonica secured a 7.5 billion euro deal to buy control of Brazilian mobile joint venture Vivo. Earlier in the year, it acquired German broadband company HanseNet to reinforce its position in the highly competitive German market.
Linares said the new internet services and products will be implemented in the Spanish businesses main markets and will make a significant contribution to revenue, although he declined to provide more details. From www.reuters.com
Hopefully Telefonica will also put their resources into customer service, after being voted the worst company in 2009 by consumers.
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