Spain Telefonica
Background:
Until the 1990s the government-controlled public company known since May 1988 as Telefónica de España, S.A. (Telefónica), was the dominant player in the Spanish telecommunications industry. Like many of its international counterparts, however, Telefónica was fully privatized in 1997 and became known as Telefónica S.A. the following year when basic telephony in Spain was deregulated. By 2001, Telefónica S.A. operated as the leading telecommunications concern in the Spanish and Portuguese-speaking regions of the globe. Acting as a parent company for ten major subsidiary companies, including the likes of Telefónica de España, Telefónica Latinoamericana, Telefónica Móviles S.A., Terra Lycos S.A., Telefónica DataCorp S.A., Atento, and Admira, the company had business interests in fixed telephony, mobile telephony, Internet content and services, audiovisual media content, and various other telecommunications and e-commerce-related services.
During the 1990s, the landscape of the telecommunications industry began to change dramatically. As such, the business operations of Telefónica were deeply affected. Beginning in 1994, the company began to reorganize itself in preparation for privatization as well as deregulation of basic telephony. By 1998, basic telephony in Spain was deregulated. Telefónica S.A. was then created to act as a parent company for the firm 's business lines. As a result of facing new competition in its home market, the company continued to focus its efforts on its international expansion. The company entered the Brazilian market when that country 's telephone company, Telebras, was privatized. During 1998, the firm secured $18.2 billion in revenues with nearly 26 percent stemming from operations outside of Spain. By this time, over 50 percent of its 37 million fixed lines were outside of its home country, 54 percent of its 14.4 million cellular phone customers did not reside in Spain, and 86 percent of its 2.3 million pay-television
Until the 1990s the government-controlled public company known since May 1988 as Telefónica de España, S.A. (Telefónica), was the dominant player in the Spanish telecommunications industry. Like many of its international counterparts, however, Telefónica was fully privatized in 1997 and became known as Telefónica S.A. the following year when basic telephony in Spain was deregulated. By 2001, Telefónica S.A. operated as the leading telecommunications concern in the Spanish and Portuguese-speaking regions of the globe. Acting as a parent company for ten major subsidiary companies, including the likes of Telefónica de España, Telefónica Latinoamericana, Telefónica Móviles S.A., Terra Lycos S.A., Telefónica DataCorp S.A., Atento, and Admira, the company had business interests in fixed telephony, mobile telephony, Internet content and services, audiovisual media content, and various other telecommunications and e-commerce-related services.
During the 1990s, the landscape of the telecommunications industry began to change dramatically. As such, the business operations of Telefónica were deeply affected. Beginning in 1994, the company began to reorganize itself in preparation for privatization as well as deregulation of basic telephony. By 1998, basic telephony in Spain was deregulated. Telefónica S.A. was then created to act as a parent company for the firm 's business lines. As a result of facing new competition in its home market, the company continued to focus its efforts on its international expansion. The company entered the Brazilian market when that country 's telephone company, Telebras, was privatized. During 1998, the firm secured $18.2 billion in revenues with nearly 26 percent stemming from operations outside of Spain. By this time, over 50 percent of its 37 million fixed lines were outside of its home country, 54 percent of its 14.4 million cellular phone customers did not reside in Spain, and 86 percent of its 2.3 million pay-television
References: Hill, Charles W. L.. Global business today . 7th ed. New York: McGraw-Hill/Irwin, 2011. Print. "The Race for Numero Uno in Latin Wireless." Businessweek - Business News, Stock Market & Financial Advice. N.p., n.d. Web. 11 Apr. 2011.<http://www.businessweek.com/technology/content/nov2006/tc20061127_605205.htm>. Tomlinson, Richard. "Dialing In On Latin America Once a sleepy, government-owned phone company, Spain 's Telefonica is now investing billions south of the Rio Grande. Will this big bet pay off? - October 25, 1999." Business, financial, personal finance news - CNNMoney.com. N.p., n.d. Web. 11 Apr. 2011. <http://money.cnn.com/magazines/fortune/fortune_archive/1999/10/25/267817/index.htm>.