Spanish Telefónica said it will make a multi-million-euro investment to kick start mobile advertising in Brazil, using the O2 media model that was successful in the U.K. as a blueprint. The announcement was made July 5 at a London event, where Telefónica Digital revealed a number of new developments in its strategy. Telefónica forecasts that the unit will drive annual revenues of approximately U.S.$6.2 billion (€5 billion) for Telefónica by 2015 with an annual revenue growth rate of 20%, as well as bringing considerable additional benefits to Telefónica’s operations.
Telefónica noted that mobile advertising in Brazil is growing faster than in Western Europe, and it will invest to put a local team in place to accelerate the deployment of platforms and capabilities.
Matthew Key, chairman and CEO of Telefónica Digital, noted in a statement that the company has sent a clear message that its digital strategy is on track and delivering. Telefonica’s ambition is to become a credible leader for a range of new services beyond connectivity. Working toward that goal, the company has engaged in partnerships with key players.
In addition to a mobile advertising strategy in Brazil, Telefónica announced that it has secured global framework agreements with Facebook, Google, Microsoft and Research In Motion (RIM) to offer Direct to Bill payments as a means of driving the monetization of mobile content.
Telefónica Digital was created in September 2011 as a part of a company-wide transformation, aiming to reinforce its status as a global player and leader in the digital environment. At that time, three main changes were announced in Telefónica’s organizational structure: the creation of a new business unit, Telefónica Digital; the creation of a Global Resources operating unit; and streamlining and balancing of the company’s geographical mix.
Recently, Telefónica said it had reduced its net debt by U.S.$1.8 billion (€1.45 billion) after an agreement between its Colombian subsidiary and the Colombian government.
The accord merges Telefonica Moviles Colombia and Colombia Telecomunicaciones leaving Telefonica with a 70% stake and the Colombian government 30% of the resulting company.
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