Spain’s Telef�nica Enters Colombian Market

Spain’s telecommunications giant will strengthen its Latin
American presence by acquiring 51 percent of Colombia’s REY MORENO
telephone operator, Telefónica, S.A.

An agreement reached last week by Telefónica Data and the Colombian company
paves the way for Telefónica Data Colombia, which will offer a wide range
of integrated Internet, data and voice services to local companies.

The acquisition will be complete within three years and Ernesto Rey, current
president of REY MORENO, will stay on to direct the new company.

“This agreement means a step toward consolidating the company’s
presence in the countries of Latin America.” stated Guillermo Fernández
Vidal, managing director of Telefónica Data. “With the creation of
Telefónica Data Colombia, Telefónica Data secures its position as a global
company in what is currently one of the most liberalized markets.”

Telefónica, the former Spanish state monopoly, is now the largest
telecommunications company in the Spanish and Portuguese-speaking world,
with a presence in 15 countries.

More than half the company’s 51.5 million
customers are in Latin America. Its subsidiary Telefónica Data has more
than 15,000 corporate clients. In addition to TD Spain and the newly formed
TD Colombia, the company has formed TD Brazil and TD Chile.

REY MORENO, a Latin American leader in value-added
telecommunications services, was founded in 1978 and reported US$9 million
dollars in sales last year.

The company’s telecommunications network joins
Colombia’s major cities to the outside world and offers a wide variety of
services, including Internet, videoconferencing, IP voice and data
transmission, and corporate networks.

“By becoming Telefónica Data Colombia, we’re bringing into the
country the best telecommunications service provider in the Spanish and
Portuguese-speaking world.” stated Rey. “At the same time, we’re
guaranteeing the presence of Colombian talent in Telefónica developments at
both the regional and global levels.”

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