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A summary of the most exciting news in soccer marketing. If you’re trying to keep up, consider this your one-stop shop.

  • SPFLScottish Professional Football League (SPFL) signed a new agreement with marketing agency Infront. The deal comes after SPFL terminated its agreement with MP & Silva after the agency failed to make a series of payments to the league. The new partnership with Infront covers the international media rights for Scotland’s top four domestic soccer leagues, as well as the Irn Bru Cup and Betfred Cup knockout competitions.

 

  • BeIN Sports and MediaPro have come together to cover Italian Serie A rights in Spain. Financial details of the deal have not been disclosed, but it will see Mediapro showing one Serie A match per week via digital-terrestrial broadcaster Gol, while BeIN Sports broadcasts two live matches from the Italian league per week through its over-the-top service BeIN Connect.

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  • English soccer team Chelsea has entered a long-term partnership with US-based online retailer Fanatics, which will operate the club’s online store to improve the digital shopping experience. In addition, Chelsea will be able to use Fanatics’ network of domestic and international distribution centers. “Chelsea supporters all over the world will benefit from the digital-first focus of the relationship, enjoying a fantastic service across a broad range of club products,” stated Chris Townsend, Chelsea’s commercial director.

Read more: Can Ronaldo the Owner Globally Lift La Liga Too?

  • Warner Bros.AS Roma has agreed on a collaboration with Warner Bros. for the 2018/19 season. The deal will see the team participating in a number of projects, initiatives, and events. The first collaboration is a promotional video ahead of next month’s release of Venom, starring Tom Hardy. The video includes the participation of Kostas Manolas, Justin Kluivert, Antonio Mirante and captain Daniele De Rossi, and ends with a cameo from club legend Francesco Totti.

 

  • Telefonica has ended its partnerships with FC Barcelona and Real Madrid, as well as Spain’s national team. The termination responds to a change in strategy from Telefonica, which recently secured the Spanish broadcast rights for the Uefa Champions League and Europa League, as well as Spanish soccer’s top tier, La Liga.

What: Spanish Telcom company Telefónica has announced a full reorganization including dividing the company into two main units, Hispam South and Hispam North.
Why it matters: While at a disadvantage in the Latin American markets, Telefónica has started a series of efforts to compete with Telcom giants such as Televisa and Telmex.

Telefónica, the Spanish Telcom company, has decided to divide the firm into two units in Latin America: Hispam South, which includes Argentina, Chile, Peru, and Uruguay; and Hispam North, including Colombia, Mexico, Central America, Ecuador, and Venezuela. The split stems from the firm’s objective to better tend to each market’s demands.

Hispam South will be led by Bernardo Quinn, while Alfonso Gómez Palacio will be in charge of Hispam North.

The digital world demands a permanent renovation.

“The digital world demands a permanent renovation”, said José María Álvarez-Pallete, president of Telefónica. He also commented this new structure will allow the company to be “more agile, simpler, and definitely focused on management, customer service, growth, efficacy, and rentability.”

Apart from the division into two regions, Telefónica will completely restructure itself by creating new roles and bringing in new talents.

This is only one of the efforts the company has made in Latin America; Telefónica is fighting on all fronts. In November 2017, it invested EUR $183 billion in Telefónica Movistar Mexico, to compete with Telcel in terms of 4G technology. Also, the Spanish firm has signed a deal with Viacom, by which channels such as MTV, Paramount, Comedy Central, and Nickelodeon will be available in Latin America through Movistar Play, Telefónica’s OTT platform. Finally, they plan to become internet providers in Mexico, where they will compete against Televisa and Telmex, who have 22% and 56.2% share in the market.

A summary of the most exciting recent news in online video in the US, US-Hispanic and Latin American markets. If you’re trying to keep up, consider this your one-stop shop.

US/US-HISPANIC MARKET

Amazon is ready to compete with YouTube: The e-commerce giant has launched a service that allows users to post videos and earn royalties from them, called Amazon Video Direct. The videos will be free to watch and will not have ads, but viewers can also opt to rent or buy videos they like.


Time Warner Cable
claims that online video companies are lying about how much more effective in reaching audiences they are than linear TV. The company made the interesting decision to hold an event at the Newfronts, which are usually set up by digital media companies doing their best to time warner
make television irrelevant. Fred Bucher, chief marketing officer at Time Warner, pointed out that cable is digital as well, and  that its video ad delivery is much more effective than other online video platforms.

According to the Digital Content NewFronts’ Video Ad Spend Study, there has been a 114% increase in investment in original digital video programming over the past two years. Details on other interesting findings in the report here. 

Yahoo conducted a video report with Nielsen and Hunter Qualitative, and revealed that on the one hand, horizontal landscape ads are more effective than vertical landscape ads in terms of increasing affinity for brands, but on the other hand, portrait ads are far more effective vertically. Auto-start video ads in native environments were also found to be particularly effective, generating 51% better aided recall, 10% higher brand familiarity, and 4% higher brand affinity compared to user-initiated ads.

As a part of its efforts to expand its presence in online video, Twitter has paid $10 million for the rights to stream 10 Thursday night NFL games without authentication, with 15 ad slots for each game. The digital platform will also introduced advanced targeting tools for video ads in the fall.

Magna Global, whose clients include Johnson & Johnson, Coca-Cola, and Fiatannounced at NewFront that they have agreed to buy $250 million in video ads from YouTube. David Cohen, president of Magna Global North America commented, “We have negotiated a meaningful share shift from linear television to digital video.”

AdWorks, AT&T‘s advanced advertising services unit, claims that they saw a boost in sales for advertisers between 19 and 87% in a recent trial of multi-screen, multi-device addressable advertising conducted with Opera Mediaworks. TV advertising increased sales by 19 percent, and 27 percent when a consumer received the same ad on both their TV and mobile device.

Condé Nast Entertainment announced plans to expand its premium digital video network with three new incubator programs designed to discover and develop the next generation of storytelling talent, more video content, increased data capabilities, a distribution partnership with Comcast further adding to the company’s comprehensive distribution across more than 50 platforms, and industry-first measurement for branded content video performance.

Virool, the video distribution platform for marketing professionals, and Rubicon Project, which operates a giant open advertising marketplace, have created a new vertical video unit for advertisers and editors. The product, called Vertical Reveal, will help scale programmatic advertising to bring video ads to buyers and sellers on mobile devices.

Revelist.com, the recently launched millennial women website from CafeMedia, is reporting record digital video performance and traffic growth, exceeding 1 million monthly visitors and 76 million video views in its 3 months in market.

New trends in online video monetization, measurement, engagement and many more aspects of the emerging OTT market will be explored at the Latin Online Video Forum during PortadaLat in Miami on June 8-9, 2016. Get your tickets at early bird price now!

LATAM MARKET

According to a report from the Interactive Advertising Bureau (IAB), online ad investments grew by 24% in Chile during 2015. Over the last five years, Chile’s online advertising grew from less than $50 million yearly business to current $160 million. Chile’s Internet penetration is also impressive – there are 76 connections for every 100 inhabitants – and the country has one of the highest broadband penetration rates in the region.

Telefónica has announced that it spent $100 million to update its LatAm satellite hub in Peru in order to support online video
growth in the region and expand its Movistar Play SVOD service, which it claims will be available in 12 coutries by the end of 2016.

According to the Global Programmatic Advertising Spending Market 2016-2020 report, global programmatic advertising spending could grow at a CAGR of 20.56% during the period 2016-2020, as programmatic advertising picks up speed in LatAm and the APAC region.

lanacionArgentinean newspaper La Nación has launched a daily live online video newsfeed to target mobile audiences.

HBO has announced that basic pay-TV subscribers in Chile with HD encoders and TVs will be upgraded to premium HD HBO package in order to improve the user experience.

It’s official: Argentines now watch more content online than they do on TV. A study by IMS reports that Argentines
watch 11.1 hours of content per week digitally, versus 5.2 hours on TV.
NBC Olympics and Buzzfeed are teaming up to produce the NBC Rio Olympic Discover channel for the Olympic Games in Rio de Janeiro, Brazil. NBC is also partnering with Snapchat to create “Live Stories” from attendees at competitions in the form of videos and photos.

We just published the agendas for #Portadalat the Latin Online Video Forum (June 3 in the morning) and the 7th Annual LatAm Advertising and Media Summit (June 3 afternoon and June 4).

Early Bird Tickets expire this Friday April 17! Register at Early Bird Price!

#Portadalat

The preliminary Agenda highlights include presentations by key brand marketers such as Jon Suarez Davis, VP Global Media Strategy, Kellogg Company and Denisse Guerra, Regional Marketing Director Latin America, The Estee Lauder Companies on the theme of “Building Brand Leadership in a disruptive World”; a sports marketing panel which will include Jorge Inda-Meza, Marketing Director at Corona Bud Light, Anheuser-Busch Inbev as well as several sessions with key global and Latin American players (e.g. Charlie Hunter Schyff, Head of Planning & Insights, Mobile Advertising, at Telefonica, and MediaMath Founder Erich Wasserman) who will analyze the opportunities that Ad-Technologies face in Latin America.

Early Bird Tickets expire this Friday April 17! Register at Early Bird Price!

New panels and presentations will be added soon, including:
Luxury Goods and Services in Latin America with major Brand Marketers who will provide an-depth analysis and actionable insights about this all-important sector
TV Everywhere’s  evolution in  Latin America
Latin Youtube Stars
and more…

Other major speakers that have confirmed their participation include:
Tomas Salvagni, Managing Director Sales and Marketing, GRUPO CLARIN
Fernando Monedero, Head of Digital for Latin America, MEDIAEDGE
Maya Kosovalic, Digital and Media Communications Manager, L’Oreal
Carlos Espíndola Gerente eHub Latinoamérica, 3M
Manuel Medina Riverroll , Marketing Director, Bayer Mexico
Ruben Leo Sarmiento, Marketing Director, Genomma Lab

Early Bird Tickets expire this Friday April 17! Register at Early Bird Price!

We just published the agendas for #Portadalat the Latin Online Video Forum (June 3 in the morning) and the 7th Annual LatAm Advertising and Media Summit (June 3 afternoon and June 4).

We have extended the Early Bird period until tomorrow Tuesday April 21 COB.  Make sure to register at Early Bird Price!

#Portadalat

The preliminary Agenda highlights include presentations by key brand marketers such as Jon Suarez Davis, VP Global Media Strategy, Kellogg Company and Denisse Guerra, Regional Marketing Director Latin America, The Estee Lauder Companies on the theme of “Building Brand Leadership in a disruptive World”; a sports marketing panel which will include Jorge Inda-Meza, Marketing Director at Corona Bud Light, Anheuser-Busch Inbev as well as several sessions with key global and Latin American players (e.g. Charlie Hunter Schyff, Head of Planning & Insights, Mobile Advertising, at Telefonica, and MediaMath Founder Erich Wasserman) who will analyze the opportunities that Ad-Technologies face in Latin America.

We have extended the Early Bird period until tomorrow Tuesday April 21 COB.  Make sure to register at Early Bird Price!

New panels and presentations will be added soon, including:
Luxury Goods and Services in Latin America with major Brand Marketers who will provide an-depth analysis and actionable insights about this all-important sector
TV Everywhere’s  evolution in  Latin America
Latin Youtube Stars
and more…

Other major speakers that have confirmed their participation include:
Tomas Salvagni, Managing Director Sales and Marketing, GRUPO CLARIN
Fernando Monedero, Head of Digital for Latin America, MEDIAEDGE
Maya Kosovalic, Digital and Media Communications Manager, L’Oreal
Carlos Espíndola Gerente eHub Latinoamérica, 3M
Manuel Medina Riverroll , Marketing Director, Bayer Mexico
Ruben Leo Sarmiento, Marketing Director, Genomma Lab

We have extended the Early Bird period until tomorrow Tuesday April 21 COB.  Make sure to register at Early Bird Price!

What: With this agreement Telefonica joins a growing number of operators supporting msngr.
Why it matters: This agreement will allow Myriad Group to promote the use of msngr as an additional service to smartphones users in Latin America.

myriad-Myriad Group AG, a company that creates and connects communities across mobile, has signed a pan Latin American agreement with Spanish global telecommunications gian, Telefonica S.A.

Under the terms of the agreement, mobile operators within the Telefonica Group in Latin America are able to offer a co-branded msngr app to their customers.

Having reviewed a number of OTT instant messaging services, Telefonica sees msngr as an excellent opportunity to not only offer a value-added service to its users with smart phones but also crucially offer full messaging and content sharing functionalities to its feature phone based users.

The msngr platform helps operators create loyalty and promote data plans by consumers using their phones to group-chat and share  relevant content with their friends. msngr works with brands from infotainment, movies, music, sport and TV to offer sponsored channels from within the app to consumers who opt-in. Revenue generated is then shared with the supporting operator.

Key features and user benefits of msngr include:

  • An easy-to-use interface for unrestricted group chat
  • Available to all: no-one will be left out because they don’t have the right phone, don’t live in the right country or subscribe to the right network
  • Users can easily discover and share relevant content from brands and content providers

Stephen Dunford CEO of Myriad, said: “msngr has been developed for feature phones and smart phones. It also enables group chat fuelled with engaging and relevant content. We are delighted to extend our commercial relationship with Telefonica S.A., allowing their customers to enjoy the messaging and content sharing features of msngr.”

Leandro Musciano, Telefonica Latin America Product & Services VP, said: “Nowadays Instant Messaging is a service widely adopted by our Latin American customers. With msngr our users will have a distinctive experience, connecting with friends and family across the world, driving consumer loyalty in a very competitive region.”

As we published last week Starcom Media Vest lost its Telefonica media planning and buying business to Havas Media after it won the pitch in July. Many observers of the agency and client world are shaking their heads. Five things you need to know about why Starcom lost the Telefonica business (approximately US$ 250 million a year) and its implications for the media buying and planning business of major agencies.

1. How did it happen?

TelefonicaThe decision to move Telefonica’s LatAm media business from Starcom (Publicis Groupe) to Havas Media Group (as well as Telefonica’s European Media business and O2 business from Publicis’ Zenith Optimedia to Havas) is part of an overarching business decision made by Telefonica chairman César Alierta following the purchase of Vivendi’s Brazilian broadband unit GVT for US$ 9 billion in September. Last, but definitely not least, Vivendi chairman and majority shareholder Vincent Bollore also owns a 36% stake in Havas and his son Yanique Bollore is CEO of Havas. The Telefonica Latam business was a bargaining chip in a much larger business deal involving the US$ 9 billion GVT broadband business.

The Telefonica Latam business was a bargaining chip in a much larger business deal involving the US$ 9 billion GVT broadband business.
It can be argued that while the transaction was not in accordance with open procurement rules by which Telefonica had awarded the media buying and planning business to Havas in July, the deal may benefit Telefonica stakeholders because it likely helped Telefonica to get a lower purchase price for Vivendi’s Brazilian GVT unit..

2. Was Havas part of the July pitch for Telefonica business?

Reliable sources tell Portada that Havas participated in the pitch won by Starcom Media Vest, as announced in  July,  and came in fourth position.

3. Why are media planning and buying businesses prone to be bargaining chips when there are even larger deals at stake?

Abstract metal connection concept earth backgroundFor two reasons. First,  media buying and planning revenues for agencies can be very sizable chunks of business, particularly when they involve major advertisers who have hundreds of millions of media expenditures a year. A creative assignment will never amount to that type of revenue. Therefore media assignments are valuable chunks of business that can be traded and be part of even larger dealings as the Telefonica-Vivendi deal shows. Second, and also very importantly, media buying and planning assignments are relatively easy to move between agencies.Some observers argue that the media buying and planning business is a commodity as opposed to the creative business where a larger degree of know-how and insights are needed.

Some observers argue that the media buying and planning business is a commodity.

4. Why is Telefonica a particularly difficult case?

Companies that are heavily regulated like telcos or utilities or where the government has a stake, like Telefonica, are more prone to politica decision-making and interference. The same way Havas was favored now in Telefonica’s decision, its predecessor Media Planning Group (MPG) lost the Telefonica business in 2006 when Spain’s centre-right government of president  Jose Maria Aznar lost the general election against the Socialist Jose Luis Rodriguez Zapatero.

5. Is Starcom going to diminish headcount as a result of losing Telefonica?

In the last few weeks, Starcom not only got the bad news of the loss of the Telefonica business, but it also lost the P&G Digital Latin America business to Omnicom Media Group. However, Portada has heard that, at least for now,  no headcount reductions in Starcom Latin America are being planned.

Starcom Media Vest has lost the Telefonica Latin America media planning and buying business as Telefonica has entered into a wider global agreement with the Havas Group which has resulted in the US $260 million European media account – and the US$ 65 million O2 business – moving from Publicis Groupe’s ZenithOptimedia to Havas Media. Telefonica’s Latin American business will also be managed by Havas Media.

TelefonicaSpanish-Telco giant Telefonica is withdrawing its US$ 250 million/year Latin American media buying business from Starcom Media Vest, who has managed the account for more than 5 years. Although in July, Telefonica announced it was retaining Starcom as its media buying agency for Latin America as well as also Publicis owned Zenith Optimedia for its European and O2 business for an additional 5 years, a spokesman for Telefónica confirmed that the initial selection of ZenithOptimedia in July had been usurped by a “global strategic appointment of Havas Group” that will include media planning and buying. “I can confirm that we have lost the business but I have nothing to add beyond that,” Ashok Sinha, VP, Global Brand Marketing & Communication, at Starcom Media Vest Group in New York told Portada. Sources at Havas Media in Miami did not want to comment their new Telefonica account.

The initial selection of ZenithOptimedia and Starcom Media Vest in July has been usurped by a “global strategic appointment of Havas Group” that will include media planning and buying.

Moving forward, it is understood that Telefonica is now looking for alternative ways to work with Publicis, a Telefonica spokesman said, although he acknowledged that media will not be part of the future cooperation. he also added that Telefonica soon will open a global pitch for creative services.

No Pitch or Procurement

The process was not pitched or procurement led but was part of an overarching business decision made by Telefonica chairman César Alierta following its purchase of Vivendi’s GVT in Brazil in September this year. The decision coincides with suggestions that a deal had been struck between the Havas shareholder Vincent Bolloré and Telefónica’s chairman, César Alierta.

The spokesman would not comment on whether Bolloré had a role to play, but said that the decision to appoint Havas globally “had always been an ongoing consideration”.  Paul Bainsfair, the IPA’s director-general (the Institute of Practioners in Advertising in the United Kingdom), said: “The IPA New Business and Marketing Group would like to express concern over the reported outcome of this processThe impact of poor pitch practice on agencies can be far more crippling than many clients appreciate.” In the UK, Telefónica’s O2 is one of ZenithOptimedia’s longest-standing clients, with roots stretching back to 1991. Telefónica Europe operates under the O2 brand in the UK, Germany, the Czech Republic and Slovakia.

 

A summary for Corporate Marketers, Media Sales Executives and Advertising Agencies to see what clients are moving into the Latin American market and/or targeting Latin American consumers right now.

::: Telefónica – Publicis Group ::: Lifetime Latin America  ::: Cristalbox-Maxus ::: Cerveza Imperial – Argentina ::: Argensan – Kaser ::: Galletitas Pakelino –  Stuka Racuda ::: La lacteo- Argentina

CHECK OUT PORTADA’S INTERACTIVE DIRECTORY OF COROPORATE MARKETERS AND AGENCY EXECUTIVES TARGETING LATIN AMERICANS! If yo want additional information or to acquire the database, please call Matt Eberhardt 347-961-9516 or e-mail him at matte@portada-online.comSEE A DEMO OF THE DIRECTORY!

Telefónica

Publicis - telefónica- Telefonica communicated that Publicis Groupe agencies will now run the account accross Telefónica’s 16 markets. It was one of the incumbents, alongside other agencies including WPP’s Mindshare and Havas Media’s Arena. Starcom MediaVest, ZenithOptimedia’s sister Publicis Groupe media agency, will handle the Latin American market, where it already held the business in most countries. Telefonica started the bidding process in January and eventually selected 4 agencies for the final phase – WPP, Publicis, Dentsu and Havas – with the French agency finally winning out due to its focus on new advertising practices, above all in digital media. ZenithOptimedia also retained its business in Germany, and picked up Telefónica’s home market of Spain, which is currently handled by Arena (Havas). Telefónica will keep working with Arena in Spain and Mindshare, which held the account in Argentina, until Publicis’ contract begins in 1 January 2015. Dentsu, Havas, Publicis and WPP took part in the pitch process. In a statement, Telefónica said it valued the “digital positioning” of Publicis.Telefónica spends approximately US$ 700 million dollar in media globally.

Lifetime – Latin America

Lifetime-Lifetime-A + E Networks Latin America and Sony Pictures Television announced the launching of Lifetime through pay TV platform in Argentina, Brazil, Chile, Colombia, Peru and Venezuela, to reach a potential market of 25 million households. Lifetime is an entertainment TV signal oriented to women ; Its´content includes series with and without script and original movies from its franchise “Lifetime Movies”, such as DeviousMaids, DropDead Diva and Witches of East End.

Cristalbox-España

Maxus-Cristalbox, a vehicle glass repair company, has selected Maxus for strategic planning and buying campaigns. The new account will be handled by Susana Cabria-client service director.-, Álvaro Brandau-account director- and Roberto Gómez-television and internet director –in the trading area. Currently, the campaign is running on television and is associated with soccer matches of the World Cup.

Cerveza Imperial – Argentina

cerveza-Lado C will start working with Cerveza Imperial, the premium domestic beer that belongs to CCU.In addition to Imperial, LadoC will go on working with other CCU brands such as : Sidra Real, Sidra La Victoria y Apple Storm.

Argensan – Argentina

Argensan-agency Kaser has recently added chemical toliets company Argensan account.Kaser was in charge of renewing the company´s identity and redesigning its´website to communicate the services offered by the company.

 

Galletitas Pakelino – Argentina

Stuka-Galetitas Pekelino is a new client of agency  Stuka Racuda. The agency will work on the brands integrated communications. Galetitas Pekelino is working on modernizing its logo and packaging of nine of its´ new products.

La lacteo- Argentina
Sextuple la lacteo-Agency Gurdulich has created a TV campaign that introduces two new products of the dairy brand La lacteo: milk in box and chocolate milk.

 

Check out  Portada’s Interactive Directory of Corporate Marketers and Agency Executives. To acquire the database, please call Kelley Eberhard at 1-347-961-9516 or e-mail him at matte@portada-online.comSEE A DEMO OF THE DIRECTORY!

What: Telefonica is rolling out a new 4G LTE mobile-broadband network in Mexico that may span 300 cities nationwide and cover 70 percent of the population, by 2015.
Why it matters: Telefonica’s Mexican mobile unit, provides service to nearly 21.9 million users.By opening its networks to other operators and agents, the company is increasing competition considerably.

telefonica_lte_logoThe Mexican unit of Spain’s Telefonica plans to roll out a new 4G LTE mobile-broadband network in Mexico that by 2015 will span 300 cities nationwide, covering 70 percent of the population, the company said in a statement.

Telefonica Public Affairs and Regulation Director Carlos Lopez Blanco said Mexico’s recent moves to open up its telecommunications sector will generate greater investment and more competition.”It’s essential from an international perspective that this process lead to the telecommunications sector becoming an engine for competitiveness,” Lopez Blanco said at the end of his visit to Mexico.The executive met with Mexico’s deputy communications secretary, Jose Ignacio Peralta; the president of the Senate’s telecommunications committee, Javier Lozano; and directors of the IFT regulatory agency.

Telefonica is opening its networks to other operators and agents, “which increases competition,” Lopez Blanco said, adding that the company will “keep moving forward by enhancing digital literacy and promoting investment in broadband.”He said Telefonica is committed to technological development with a view to making the digital economy a reality.

To that end, he said his company has prepared a Digital Manifesto with 10 recommendations “that will improve users’ experience on the Internet and promote greater investment in digital infrastructures.”Telefonica’s Mexican mobile unit, which operates under the Movistar brand, provides service to roughly 21.9 million users.

The IFT issued a resolution in March declaring Mexico City-based America Movil – Telefonica’s chief rival in Latin America – and other companies controlled by multi-billionaire Carlos Slim to be a “preponderant economic agent” in Mexico’s telecommunications market.

The IFT was created as part of a telecommunications and broadcast media overhaul proposed by President Enrique Peña Nieto’s administration and approved last year.America Movil’s Mexican cellular unit Telcel – one of the companies included in the IFT’s ruling, along with fixed-line giant Telmex, holding company Grupo Carso and Slim’s Grupo Financiero Inbursa financial arm – controls roughly 70 percent of Mexico’s wireless business.

That dominant-player tag slapped on America Movil entails “imposition of asymmetric (interconnection) rates” and the sharing of infrastructure at rates to be negotiated among the operators, the company said last month.

Source: EFE

What: Telefónica is trying to merge with Mexican operator Iusacell to fight América Móvil dominance in  Mexico .
Why it matters: Law reforms to fight the lack of competitiveness in the country are about to be implemented. Telefónica is planning to increase its share in Mexico’s mobile sector following the reforms.

telefonicaTelefónica is trying to merge with Mexican operator Iusacell to fight América Móvil Mexico’s dominance .

Lack of investment and competition in the Mexican market are mainly due to América Móvil’s strong market position, as the company controls around 70% of the country’s mobile lines and 80% of the fixed line telephony market. This involves a low penetration of telecommunications services forcing Mexicans to overpay for telecommunications services. Between 2005-09 telecommunications services spending reached over US $13 billion.

Widespread reforms to the telecoms industry were signed last year by President Enrique Peña Nieto so as to fight the lack of competitiveness in Mexico’s telephony and television sectors.

These reforms aim to strengthen regulatory institutions to combat monopolies, among other things.They may also allow investment in the Mexican telecoms market to increase to US $55 billion in 2018 compared to US$35 billion in 2012.

Telefónica is planning to increase its share in Mexico’s mobile sector following the reforms. The company had a share of 18.5% of the country’s mobile market with 19.1mn clients at the end of third quarter 2013, while Iusacell’s had a mobile customer base of around 7.4mn as of the end of 2012.However, telefonica has already started to strenghten  its position in the country by providing data and voice coverage for NII Holdings’ Nextel .

Telefonica-Iusacell merger’s dilemma

Despite América Móvil’s dominant share in Mexico’s telephony market, the company has failed to enter the country’s TV sector.

TV sector is already dominated by Televisa and TV Azteca which have a combined 95% share of the country’s broadcast TV market. In addition, Televisa owns half the pay TV segment and has recently acquired a 50% stake in Iusacell. The remaining 50% stake is retained by TV Azteca owner Grupo Salinas.

A Telefonica and Iusacell merger could result in  a strong player across the mobile and pay TV segment , if Televisa or Grupo Salinas were to retain any minority stake in the telecoms operator.This may cause something of a dilemma, as many investments from competitors will be required to reduce América Móvil’s position on the Mexican market. In this regard, regulators may not be willing to allow further market consolidation, given that the aim of the reforms is to provide more options to consumers, rather than less.

Most players will be looking forward the release of the secondary telecoms reform proposals, which will include details that allow companies to meet the terms of the telecoms reform, such as type of penalties and fines to be faced by companies for monopolistic practices.

 

What: Virgin Mobile will provide its MVNO (Mobile Virtual Network Operator) service in Mexico and Brazil.
Why it matters: The new operations will follow other launches made ​​by the company in Chile and Colombia.

virginVirgin Mobile will launch operations in Mexico and Brazil this year. The new operations will follow other launches made ​​by the company in Chile and Colombia.

Virgin Mobile has already started to expand its business structure in Mexico with a focus on sales, marketing and customer service. Now, the company will provide its MVNO (Mobile Virtual Operator Service) in Mexico over the next few months. For that, the company counts with Telefonica network as in November 2013 signed an agreement to buy network capacity from Telefonica Mexico.

In the case of Brazil, a MVNO license from telecom’s regulator Anatel was requested by Virgin on 23 January. The company is still waiting for regulatory approval to launch its services in the country.

Virgin has already signed a partnership agreement with Vivo, and will provide its MVNO services using the Telefonica/Vivo network.

Virgin Mobile is the owner and creator of the OMV and its brand with more than 18 million clients in ten countries. Across Latin America, Virgin provides MVNO services in Chile, Colombia.

Source: Mundoenlinea

 

 

What? Telefónica will provide data and voice coverage for NII Holdings’ Nextel in Latin America region’s two biggest markets, Mexico and Brazil.
Why it matters? The service will be provided through Telefónica’s 3G mobile network.

nextelTelefónica strengthens its position in Latin America by providing data and voice coverage for NII Holdings’ Nextel in the region’s two biggest markets, Mexico and Brazil. The service will be provided through Telefónica’s 3G mobile network.

Although Telefónica and Nextel will start implementing the deal, they will continue to independently manage their fields, in competition with each other.

Telefónica’s commercial brand in Brazil, Vivo, will benefit from the agreement by improving the networks’ distribution, aiming to cover a larger portion of the country.

As indicated by Anatel, the country’s telecom authority, Brazil’s Nextel will be able to accomplish the coverage requirements.

In México, Telefónica’s Movistar will reinforce its 3G wholesaler position while Nextel will increase its national coverage.

“The agreement allows both companies to optimise the infrastructure investments, while keeping the market position in Brazil and Mexico,” said Santiago Fernández, Telefónica’s president for Latin America.

“We will improve our services, being now able to offer 3G in larger areas of both countries,” said Steve Shindler, CEO of NII Holdings it. “We will use Telefónica’s network at a time when we are aiming to increase our coverage while rationalising our investments”.

Similar agreements have been reached by Telefónica in other Latin American markets such as Colombia, where a 4G with Millicom has been set up, and Chile where it is working together with Virgin Mobile.

Source: RapidTVnews

What: Telefonica is making a strategic investment in Rhapsody, which will also bundle and resell Rhapsody’s Napster music service and catalog to Telefonica mobile and broadband subscribers.
Why is it important: This will be the first time Napster is available in Latin America since Rhapsody acquired it. Telefonica’s investment is a milestone in digital music, in terms of customer base-expansion and reach. Says TechCrunch’s Ingrid Lunden that, for carriers like Telefonica, partnering with content providers helps them stand apart from their rivals’ offerings, and potentially helps them pick up more traction with existing users, beyond basic voice and data services.

As reported by several sources, Spanish mobile giant Telefonica is taking an undisclosed stake in Rhapsody International, a wholly owned subsidiary of U.S.-based music subscription service Rhapsody. As a result, music streaming website Napster, Rhapsody’s brand outside of the United States (which it bought from BestBuy two years ago), will have a better opportunity to grow in European and Latin American markets. The service will be offered in Brazilian Portuguese, Latin American Spanish and English.

With about 200 million customers, Latin America is Telefonica’s largest region, where it already offers a music streaming service called Sonora (a subsidiary of Terra), whose customers in Mexico, Brazil, Argentina, Colombia, Chile and Peru will continue to be served by the Napster platform as of November 1. Rhapsody International will most likely expand its global footprint beyond Sonora subscribers and this deal will allow Napster to move into Latin America, an area of rapid smartphone growth, for the first time.

Says CNet’s Joan E. Solsman that Rhapsody has more than a million paid subscribers globally. Telefonica had 317.3 million customers as of June, across 24 territories. Its main commercial brands are O2 in northern Europe, Movistar in Spain and Latin America, and Vivo in Brazil.

The idea –reports CNet– is that as more and more people in the region adopt smartphones, the music streaming service could be a top factor in deciding which carrier to choose. Paul Springer, Rhapsody’s senior vice resident and global head of product, said that in Latin America, about 70 percent of customers named music as one of the top features they require on a phone, versus about 40 percent or 50 percent in the US.

As reported by Billboard, a Telefonica spokesperson said that this investment took place “after evaluating the options in the marketplace [and finding out that] Napster had the right product, the right focus on locally relevant content, the right label relationships, and the right expertise in working with mobile operators to most effectively meet Telefonica’s needs for digital music worldwide.”

Sources: TechCrunch, Billboard, Financial Times, CNet.

What: Telefonica is making a strategic investment in Rhapsody, which will also bundle and resell Rhapsody’s Napster music service and catalog to Telefonica mobile and broadband subscribers.
Why is it important: This will be the first time Napster is available in Latin America since Rhapsody acquired it. Telefonica’s investment is a milestone in digital music, in terms of customer base-expansion and reach. Says TechCrunch’s Ingrid Lunden that, for carriers like Telefonica, partnering with content providers helps them stand apart from their rivals’ offerings, and potentially helps them pick up more traction with existing users, beyond basic voice and data services.

As reported by several sources, Spanish mobile giant Telefonica is taking an undisclosed stake in Rhapsody International, a wholly owned subsidiary of U.S.-based music subscription service Rhapsody.  As a result, music streaming website Napster, Rhapsody’s brand outside of the United States (which it bought from BestBuy two years ago), will have a better opportunity to grow in European and Latin American markets. The service will be offered in Brazilian Portuguese, Latin American Spanish and English.

With about 200 million customers, Latin America is Telefonica’s largest region, where it already offers a music streaming service called Sonora (a subsidiary of Terra), whose customers in Mexico, Brazil, Argentina, Colombia, Chile and Peru will continue to be served by the Napster platform as of November 1. Rhapsody International will most likely expand its global footprint beyond Sonora subscribers and this deal will allow Napster to move into Latin America, an area of rapid smartphone growth, for the first time.

Says CNet’s Joan E. Solsman that  Rhapsody has more than a million paid subscribers globally. Telefonica had 317.3 million customers as of June, across 24 territories. Its main commercial brands are O2 in northern Europe, Movistar in Spain and Latin America, and Vivo in Brazil.

The idea –reports CNet– is that as more and more people in the region adopt smartphones, the music streaming service could be a top factor in deciding which carrier to choose. Paul Springer, Rhapsody’s senior vice resident and global head of product, said that in Latin America, about 70 percent of customers named music as one of the top features they require on a phone, versus about 40 percent or 50 percent in the US.

As reported by Billboard, a Telefonica spokesperson said that this investment took place “after evaluating the options in the marketplace [and finding out that] Napster had the right product, the right focus on locally relevant content, the right label relationships, and the right expertise in working with mobile operators to most effectively meet Telefonica’s needs for digital music worldwide.”

Sources: TechCrunch, Billboard, Financial Times, CNet.

windows.phoneTelefonica has launched a joint marketing effort with Microsoft to boost sales of Windows Phone 8 devices. Initially for a period of one year, Telefonica will enhance marketing activities in support of its Windows Phone 8 devices in the UK, Germany, Spain, Mexico, Brazil and Chile. Telefonica plans to offer its clients enterprise-class business features such as Office 365 and SharePoint, as well as consumer-facing features such as Skydrive and Xbox.

Currently sitting in third place behind Android and iOS, Windows Phone 8 needs to grow market share in order to gain traction with its app store offering, the current weak point of the operating system.

“An associate partner such as Microsoft is chosen as a result of its operator-focused business approach. The Microsoft business culture is based on a model of value creation through its associates, which fits in perfectly with our culture and also with our way of doing business,” said José María Álvarez Pallete, COO of Telefónica S.A.

According to Terry Myerson, corporate vice president, Windows Phone Division at Microsoft, “We are excited to work with Telefónica to market Windows Phone 8 devices to more customers in the UK, Germany, Spain, Mexico, Brazil and Chile, bringing them a more personal smartphone experience with the speed of Telefónica’s network.”

As part of the commitment, Telefónica will encourage grown in market demand for Windows Phone 8 while working with suppliers to ensure the availability of high-quality Windows Phone 8 devices. It will be working with the leading manufacturers of Windows Phone 8 devices to make their commercial offering available throughout the duration of this enhanced marketing effort with Microsoft.

Movistar México (owned by Spanish telco Telefónica) is looking at entering new business segments and reorienting its investments in the country as a result of the telecoms reform which was recently signed into law by President Enrique Peña Nieto, according to BNAmericas.

The telco’s investment plan will definitely be modified, but the operator will wait and see what measures the new telecoms regulator Ifetel will implement, the executive president of Telefónica México, Francisco Gil, said in an interview with local publication Milenio.

Telefónica will reorient its investments to other areas, depending on the options that open up as a result of the reforms

Telefónica invested 427mn euros in Mexico during 2012, down 9.4% from the 471mn euros the previous year. Telefónica has a license to operate satellite TV services in Mexico, but has never initiated commercial TV services. The operator has been present in Mexico since 1998, but only operates wireless services.

According to BNAmericas, Movistar saw revenues of 388mn euros (US$517mn) in the country in Q1, compared to América Móvil’s Mexico revenues of 66.3bn pesos (US$5.23bn). (América Móvil controls around 80% of the mobile market in Mexico).

Mobile payments provider Fortumo has signed Global Framework Agreements with leading operator groups Telefónica and Telenor to bring direct carrier billing services to 460 million additional subscribers worldwide. Using the BlueVia Payments API to charge purchases to their mobile operator bill, users in more than 30 countries will now be able to purchase digital goods over the web and on Android, Windows 8 and Windows Phone devices, according to Herald On Line.

With Fortumo’s platform, mobile payments are available to all mobile phone users and payments are charged directly to their operator bill. According to executives in Telefonica, Telenor and Fortuno:

Mobile operator billing is especially important in emerging markets of Asia and Latin America, where credit card penetration is low. For example, Brazil, one of Telefónica’s key markets, has 260 million mobile users, but only 60 million credit cards.

With Telefonica’s and Telenor’s agreement, the Fortumo’s payment platform now reaches users in more than 80 countries.

John Paton, CEO of Digital First Media, has been appointed non-executive director to the Guardian Media Group (GMG) board along with Ronan Dunne, CEO of Telefónica UK Limited (O2), ‘The Guardian’ announced today on its website.

“We are delighted to welcome Ronan and John to the GMG Board,” said Amelia Fawcett, chair of GMG, in a prepared statement.

Paton is the co-founder of impreMedia; a director of Canada’s largest newspaper company, Postmedia Network, a member of the Board of Advisors for the City University of New York Graduate School of Journalism and member of the board of directors of Spanish newspaper El País.

Ronan Dunne has been CEO of Telefónica UK and a member of the Telefónica Europe plc board since April 2008. Prior to this he was chief financial officer and head of finance, having joined O2 prior to its demerger from BT in 2001.

GMG’s core business is Guardian News & Media, publisher of guardian.co.uk, as well as guardiannews.com and the Guardian and Observer newspapers.

telefonicaTelefónica reached an agreement today with Corporación Multi Inversiones (“CMI”) for the sale of 40% of Telefónica’s assets in El Salvador, Guatemala, Nicaragua, and Panama.

The value of the sale –which is subject to obtaining the necessary regulatory approvals – totals 500 million dollars. The operation also includes the payment of an additional amount of up to 72 million dollars, which will be determined by the evolution and the operational performance of the aforementioned assets in the coming years. The implied multiple for the total amount of the transaction means 6.5 times EBITDA 2012 of the companies involved in the operation.

This operation is part of Telefónica’s policy of proactive management of its asset portfolio and the initiatives to increase the company’s financial flexibility.

The Telefónica Group has been operating in the region of Central America since 1998, when it began the privatization of the sector in El Salvador.

Corporación Multi Inversiones (CMI) is an important business group in Latin America. It was established in 1920 and is a family-owned multinational corporation. It operates in nineteen countries on three continents.