Telefónica (english)

| Assignment #1 |
| [ Juan Martín López
Gloria María Martínez
Pablo Otero
Jana Konstantinova] |

[Telefónica] |
|

1) Brief history

Telefónica was found as Spain's National Telephone Company on 19thApril in Madrid, 1924, during the dictatorship of Miguel Primo de Rivera. Privatization took place in 1992 along with other public companies. Since then, has become one of the largesttelephone companies.
At the beginning Telefónica was dedicated to telephone services, also considered a monopoly of Spain, because there was no other provider in this section today, by the laws of the European Commission, Telefónica has stopped being a monopoly, and other companies are now working in this sector, although Telefónica still has the power it had before in terms of customers comparedwith other companies.
In Spain, the Group has over 80 years of experience since its establishment in 1924 as a public company, serving more than 47.2 million customers at the end of September 2008. In Latin America, the company serves more than 153.1 million customers at 30th September, 2008, positioning itself as a leading operator in Argentina, Chile, and Peru and with significant operations inBrazil, Colombia, Ecuador, El Salvador, Guatemala, Mexico, Morocco, Nicaragua, Panama, Puerto Rico, Uruguay and Venezuela. In Europe, the company has presence, besides Spain, UK, Ireland, Czech Republic, Germany and Slovakia.
The Group stands in third position in the sector of Telecommunications worldwide in terms of market capitalisation. The Group is listed in the main domestic and foreign stockmarkets, and has more than 1.5 million shareholders.
It is the owner of the mobile phone division legally called "Telefónica móviles", and better known by their trade names Movistar and O2.

2) Introduction of business (products, markets)

the telecommunications market is going through a scenario of increasing competition, not only for the entry of new players, but by the convergence oftechnologies and services. Consumers are benefiting from this increased competition in the telecommunications sector, with price reductions, facilities for changing operator and a greater variety of offerings.

The Telefónica Group's operations, in 23 countries, are organized around three geographic regions: Spain (Telefónica Spain), Latin America (Telefónica Latin America) and Europe (Telefónica O2Europe).

Its main activity of each of these business units is to operate fixed telephony services, mobile and broadband in each of the countries in which operations develop.

Telefónica has a regional and integrated management model. The different operations of the Telefónica Group in 25 countries are organised into three geographical regions: Spain, Latin America and Europe.
• Telefónica España:Its core activity is the exploitation of fixed, mobile and broadband telephony in Europe.
• Telefónica Latinoamerica: Its main activity is the exploitation of fixed, mobile and broadband services in Latin America, achieving a presence in all of the key Latin American markets. Argentina, Brasil, Chile, Colombia, Ecuador, El Salvador, the US, Guatemala, México, Nicaragua, Panamá, Peru, Puerto Rico,Uruguay and Venezuela. It also runs the Telefónica office in China and the alliance with China Netcom.
• Telefónica Europa: Its core activity is the exploitation of fixed, mobile and broadband telephony in Europe. This business unit carries out operations in the UK, Ireland, Germany, Czech Republic and Slovakia.
• The Corporate Centre is in charge of global strategy and corporate policies,management of common activities and coordination of the activity of business units.
• Other companies
- Atento provides customer service through contact centres or multichanel platforms. It has call-centres in Spain, Argentina, Brazil, Chile, Colombia, El Salvador, Guatemala, Mexico, Morocco, Peru, Panama, Puerto Rico, Czech Republic, Uruguay ana Venezuela.
-TGestiona offers support services...