Spanish firm accounts for slice of Colombian GNP

Cellphone minutes, high speed internet connections and other telecommunications services added up to US$2.54 billion in revenues by Spanish multinational Telefónica’s Colombia branch last year, accounting for 1.3 percent of Colombian GNP, according to a company report.

Telefónica Colombia’s president, Alfonso Gómez, at a press conference to introduce a new company report, said US$540 million will be reinvested in expanding the company’s high speed internet, land line, and information system services, reported Spanish press agency EFE.

Due to the investments of Telefónica, the penetration of broadband in Colombia rose from 5.5 percent in 2006 to 10.1 percent in 2007, noted the report.

The company president stressed that a fall in cellular phone rates is inevitable in Colombia. “It will definitely remain low because this is an area that over the past five years has shown a deflationary pricing behavior,” he said.

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