Telefonica looking to strengthen ties with Vivo in Brazil

20 Apr 2010

Spanish telecoms behemoth Telefonica is reportedly looking to strengthen the relationship between its Brazilian fixed line unit Telefonica Brazil (Telesp) and Vivo Participacoes – the Sao Paulo-based mobile operator it jointly owns with Portugal Telecom – as it looks to shore up its weakening position in the country. The Financial Times notes that the Brazilian unit has historically been something of a cash cow for the Spanish group, but has recently begun to struggle amid intense local competition. The paper claims that Telefonica believes that it can improve its trading position by seeking closer integration between Telesp and Vivo, and in term generating improved cost savings. Telefonica and Portugal Telecom declined to comment on the rumour.

Brazil, Telefonica, Telefonica Brasil (Vivo)