Telefonica's purchase of desk" continues its quest for new market entry opportunities.(MARKET INTELLIGENCE)

2.5G-3G, June, 2005

In early April, the Czech government sold its 51% stake in desk"2 Telecom to Telefonica of Spain for US$3.5bn (CZK 82.6bn), marking the Spanish giant's first foray into Central Europe. Pyramid Research anticipates that this will be the first of several transactions in the region for Telefonica.

Given slowing growth in its home market and in Latin America, Telefonica will become increasingly active in Central and Eastern Europe as well as Northern Africa. Upcoming privatizations of interest to the Spanish giant include that of Slovenia's incumbent operator Telekom Slovenije and Latvia's fixed telco Lattelekom.

Telefonica's move surprised many, considering its previous lack of interest in expanding to other European countries and its focus on...

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