Spanish telecoms giant Telefónica (NYSE: TEF) may analyze closing down its CDMA networks in Latin America in the medium term, Telefónica general director for Latin America, José María Álvarez Pallete, said during a conference call.
"Probably by year 2010, if things keep going in the same direction in terms of commercial activity in GSM, we'll be starting thinking of switching off the CDMA network," the executive said.
According to Álvarez Pallete, Brazil and Venezuela are the two markets where the operator has more activity in terms of CDMA technology.
"In terms of OpEx, as most of our new adds are coming in GSM, or roughly 90% in the case of Brazil, the level of subsidies in terms of CDMA handsets has been significantly reduced, so the impact on the margin is already there... and it's mostly the same case in Venezuela," the executive added.
In Brazil, GSM technology currently represents approximately 62% of Telefónica's client base while in Venezuela, GSM subscribers represented 52% of the overall mobile market at the end of the third quarter.
No comments:
Post a Comment