Sector Telecomunicaciones (FETTC), UGT de España
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original text in Spanish language original text in Spanish languageThe expansion of Telefonica in America Latin reflects the necessity of increasing its market size and ensuring an attractive future in the face of globalisation - in a market with a Hispanic cultural identity and great potential growth.
During the last few years the politics of the internationalisation of Telefonica of Spain have been centred in Latin America, through the participation, with local partners, in the privatisations of the Public Service Operators. The reasons for their determined and intuitive gamble on their expansion into America Latin are varied: the necessity of measuring up to the international market as an important operator beyond their small national market; the potential for growth offered in that region; cultural synergy; and, the international traffic with the region.
This process began in 1989 with the entry into Entel Chile, continuing in 1990 with involvement in CTC and Telefonica Argentina, aided by local partnerships with the Chilean and Citicorp Pension Funds respectively.
In 1991, Telefonica, in a joint partnership with GTE and AT&T, acquired an interest in CANTV, and, in 1992, moved into the long distance carrier TLD of Puerto Rico.
In 1993, Telefonica, jointly with the Sarmiento group, gained a mobile telephony licence in Colombia (Cocelco). Following this course with perseverance, Telefonica took part in the 1994 privatisation of Entel and CPT of Peru, which created Telefonica of Peru.
In 1995, Telefonica consolidated its presence in Argentina and Chile through the alliances with Intercom and Multicanal in the cable television market.
In 1996, with a clear strategy of penetration into the Brazilian market, Telefonica participated in the privatisation of CRT of the state of Rio Grande Do Sul. Presently, the prime interest of Telefonica, in order to consolidate their position in South America, is their participation and entry into the next privatisations of the Brazilian companies.
In total, Telefonica International, at the end of 1996, had acquired around 10.3 million lines in service, 985,000 mobile subscribers, and more than one million cable television subscribers.
| COUNTRY | POPULATION (millions) | LINES IN SERVICE | CELLULAR SUBSCRIBERS | CABLE SUBSCRIBERS | Spain | 39.3 | 16,292,200 | 2,345,645 |
|---|---|---|---|---|
| Brazil | 168.4 | 796,043 | 177,300 | |
| Argentina | 34.6 | 3,493,717 | 227,964 | 831,243 |
| Chile | 14.2 | 2,056,353 | 175,085 | 216,630 |
| Colombia | 35.2 |
| 42,253 | |
| Peru | 23.5 | 1,436,022 | 130,895 | 101,387 |
| Portugal | 9.9 | |||
| P.Rico | 3.7 | |||
| Rumania | 22.8 | 17,660 | ||
| Venezuela | 21.6 | 2,494,859 | 213,655 |
| OPERATOR | COUNTRY | % PARTICIPATION by TELEFONICA | RANGE of SERVICES | TASA | ARGENTINA | 21.9 | Basic, Mobile |
|---|---|---|---|
| CTC | CHILE | 43.6 | Basic, Mobile, CATV |
| TELEFONICA PERU | PERU | 31.5 | Basic, Mobile, CATV |
| CANTV | VENEZUELA | 6.4 | Basic, Mobile, CATV |
| CRT | BRAZIL | 35.0 | Local |
| TLD | PUERTU RICO | 79.0 | Long Distance |
| TELINTAR | ARGENTINA | 50.0 | Long Distance |
| MULTICANAL | ARGENTINA | 25.0 | CATV |
| COCELCO | COLOMBIA | 30.8 | Cellular |
| PUBLIGUIAS | CHILE | 51.0 | Phone Directories |
ALIANZAS EN LATINOAMERICA
por Abel Perea Ballesteros, UGT de España
Telecommunications Alliances in Latin America by Abel Perea Ballesteros, UGT (Spanish General Workers Union)6 September 1997