Telefonica’s Brazilian fixed line operation plans to invest BRL623 million (USD387 million) in 2008 to expand and upgrade its broadband internet service Speedy. Of the total, BRL500 million will be invested directly into Speedy’s operations – a similar sum to that invested in 2007 – while a further BRL123 million is being set aside to deploy fibre-optic networks in the last mile in Sao Paulo state’s main cities. As a result of the capital expenditure programme, Telefonica hopes to increase its current footprint of 2.2 million subscribers in 407 municipalities and repeat the 27.6% subscriber growth recorded in 2007. BNamericas reports that Telefonica’s Telsp unit current has fibre-optic coverage in the high-income neighborhood Jardins, in the city of Sao Paulo and covers 40,000 homes. The network is expected to provide speeds of up to 30Mbps, the highest available in Brazil.