Telefónica Internacional:
New Business Opportunities Worldwide
Telefónica Internacional (TI), the international unit of the Telefónica Group, has responsibillity for seeking out new business opportunities in telecommunications markets in Latin America and throughout the world.
Through TI, Telefónica has attained a leadership position in the Latin American telecommunications business, widened the Group´s geographical scope and extended its operations into potential high-growth areas such as cable television and multimedia. In 1997, Telefónica purchased the 23.78% which the Spanish state formerly held in TI, making it a wholly-owned unit of the Telefónica Group.
As of Dec. 31 1997, TI managed more than 11.6 million fixed telephone lines. It also had more than 2 million cellular telephone clients and 1.9 million cable television subscribers. Some of TI´s principal holdings are:
Compañía de Telecomunicaciones de Chile (CTC)
The major telecommunications operator in Chile, CTC holds a 91% share of the local telephony market. Through its subsidiaries, the company provides other telecoms services such as national and international long distance, mobile services and multimedia-cable TV. CTC Mundo, a subsidiary of CTC, has carved out a position as the second-largest operator in the country's long-distance market.
Telefónica de Argentina (TASA)
Telefónica de Argentina is the exclusive provider of local and national long distance telephone service in the southern region of Argentina (including half of Buenos Aires and the entire financial sector of the capital). Telefónica Internacional directly owns 50% of COINTEL, the Argentine holding company which in turn has a 51% stake in TASA.
Telefónica de Argentina shares the international long-distance market with Telecom through a 50-50 joint venture, Telintar. TASA also provides mobile phone service in Buenos Aires through a 50% stake in Miniphone and in southern Argentina through a wholly-owned unit, Telefónica Comunicaciones Personales.
Telefónica del Perú
Telefónica Internacional holds a 31.5% stake in the Peruvian operator, which has exclusive rights to provide local telephony and national and international long distance services up until 1999. It also has access to the data transmission and mobile telephony businesses as well as in the areas of paging, cable-multimedia TV distribution (public payphones, yellow pages, and new telecommunications services.
Compañía Anónima de Teléfonos de Venezuela (CANTV)
Telefónica International is a member of the consortium which a 40% stake in CANTV. Telefónica Internacional´s share in CANTV is 6.4% and cost US$ 301.6 million. The other main partners in the consortium are GTE, which has a 20.4% stake in CANTV; and AT&T, with 2%. CANTV holds exclusive rights for the provision of local telephony and long distance services until October, 2000.
Companhia Riograndense de Telecomunicaçoes (CRT)
In December, 1996, a consortium led by Telefónica Internacional paid $655 million for 35% of the voting shares of CRT, which provides local, national long distance, mobile, public phone and data transmission services in the southern Brazilian state of Rio Grande do Sul. The consortium is comprised of Telefónica International (73%), CTC of Chile (7%) and the local media group, RBS Participaçoes (17%) and Telefónica de Argentina (3%).
Telefónica Larga Distancia (Puerto Rico)
Telefónica Internacional in 1992 paid $112 million for 79% of the long-distance carrier Telefónica Larga Distancia de Puerto Rico (TLD). A 1995 ruling by the Federal Communications Commission allows TLD to originate domestic long distance traffic throughout US territory.
