TelefóNica Continues Its Expansion to The Other Side of The Ocean with The Purchase of Brazil’s GVT

Like Vodafone and Orange Spanish, ONO and Jazztel have become operators with a strong presence in the market of fixed broadband, Telefónica needed a similar operation in Brazil. A country with a strong growth in which the Spanish company wants to be strong, and so will do so if approved the purchase of GVT.

Global Village Telecom, in the hands of France’s Vivendi, offers fixed broadband to more than 10 million homes in 21 States Brazilians, with capacity to offer speeds of more than 100 Mbps down thanks to its FTTH network, which will make Telefónica a convergent operator in the largest South American market.

Brazil is a country not unknown by Telefónica. And it is that his adventure there began with the launch of the live brand for mobile telephony in 2003. Your commitment to this market has earned him for having some enviable numbers, with almost 80 million mobile lines and more than 10 million landlines as of June 2014.

And just as in Spain Telefónica is currently deploying in Brazil its 4 G network, with coverage in 73 cities, and fibre to the home, which at the end of 2013 already came to 1.4 million homes. But now this last market which will be reinforced with the addition of GVT.

Fixed broadband, the Fort of GVT

The company that Telefónica will pay nearly 4,700 million euros, as well as allowing the entry of its current owner in Telefónica Brazil and Telecom Italy, is a strong in terms of fixed broadband and television but lacks any mobile offer. In addition to 10.4 million homes in coverage GVT currently has 2.5 million customers that it be incorporated into the portfolio of Telefónica.

Telefonica will pay Vivendi 4.663 million euros in cash, but in addition will also give the French a 12% of the resulting Telefónica Brazil in addition to a share of 5.7% in Telecom Italy, in Exchange for part of the participation that will receive in Telefónica Brazil. All an exchange of cards that Telefónica hopes to create synergies of 4,700 million euros and that above all you will be even stronger in a country with more than 200 million inhabitants.