Spain’s Telefonica not only looks to rebrand itself in Latin America to Movistar, but also wants to do some serious restructuring. The company is apparently looking into ways to integrate its fixed-line and mobile networks in Brazil, as part of the efforts to revive the underperforming fixed-line arm.
According to the Financial Times, The Spanish group is to reportedly approach Portugal Telecom — its partner in Vivo — over closer integration with its fixed-line arm – Telesp. Telefonica is hoping to get some synergies in areas such as network, marketing and back office functions.
Telesp has a market capitalization of 16.7 billion BRL ($9.4 billion) but reported a 16% fall in earnings in Q4 2009. Moreover, it is facing an increasing competition in the local fixed-line market from the likes of France’s Vivendi.
The problem, however, is to find a common ground with Portugal Telecom, with whom Telefonica has clashed in the past. The Spanish group wanted to take full control of Vivo, but Portugal Telecom has insisted it wants to remain in Brazil for the long term…
[Via: MobileBusinessBriefing]