After taking controlling stake of Brazil’s Vivo from Portugal Telecom in a deal worth 7.5 billion EUR, Telefónica proceeded with the plan to integrate the mobile operator with its fixed-line business – Telasp. As part of the strategy to conquer the Brazilian telecommunications market, the Spanish group said it plans to invest 24.3 billion BRL (about $14.6 billion) in the country by the end of 2014, according to chairman Cesar Alierta.
The proposed expenditure is a 52% increase over the 16 billion BRL Telefónica spent in the previous four-year period (2007-2010). The company will invest in fixed, TV and mobile networks, modernizing existing infrastructure as well as building it out to new regions. Spending on operating licenses and possible acquisitions are also included into the projection.
Alierta said that Telefónica’s goal is to “cover almost 100 percent of Brazilian municipalities with telephone and broadband Internet, with fixed or mobile technologies”.
The Spanish group has thus far invested 82 billion BRL (about $42.4 billion) in Brazil.
[Via: MobileBusinessBriefing]