Globetrotter

news O2 profiles a Telefónica operating area

In the latest of a series of regular features, news O2 gives you a whistle-stop guide to an area where Telefónica operates, both from a general and market slant.

Here, we find out more about Central America.

Territory covered: Telefónica operating countries El Salvador, Guatemala, Nicaragua and Panama, plus Belize, Costa Rica and Hondulas.

Area: 523,780 km².

Population: 41,739,000 (2009 estimate). Guatemala is by far the most populated country with around 14 million inhabitants, nearly double the figure for Honduras in second place.

GDP: Around $107.7 billion.

History: The region has a history of Spanish conquest and subsequent liberation and unrest.

Landmarks: Numerous Mayan ruins, including Tikal in Guatemala; Nicaragua’s Mosquito Coast and rainforests boasting abundant wildlife; El Salvador’s volcanic activity on the Pacific Ring of Fire; Panama’s famous canal, which connects the Atlantic Ocean and the Caribbean Sea to the north of the Pacific Ocean.

Famous people: Guatemala’s Rigoberta Menchú won the Nobel Peace Prize in 1992 for her efforts to bring international attention to the government-sponsored genocide against the indigenous population. Baseball player Dennis Martínez is famous in Nicaragua for being the first home player to play in US Major League baseball.

Did you know: El Salvador is the smallest country in continental America, but is also one of its most densely populated. At just 21,040 km² but with a population of 7,185,218, it is refered to as the ‘Tom Thumb’ of the Americas.

Telefónica in Central America

The penetration rate of the Central American wireless telephony market increased 11 percentage points year-on-year in 2008 to 80 per cent.

Telefónica operates in the region under the Movistar and Terra brands.

At the end of December, Telefónica Centroamérica managed 6.3 million customers – up 1.8 per cent from December 2008. Its mobile customers stood at 5.8 million.

Revenues in 2009 totalled €565 million, down 2.5 per cent year-on-year in constant currency, after rising sharply in the fourth quarter.

This comes on the back of a 38 per cent rise in accesses the previous year following a Telefónica investment of around 182 billion in the region.

In Guatemala, Telefónica has around 2 million customers with mobile coverage of 82 per cent. It employs around 500 people full-time with a further 4,000-plus contractors. Employee satisfaction is rated at 73 per cent.

Telefónica has around 700 shops in Panama and its services reach 68 per cent of the population. It employs about 500 people.

In Nicaragua, the company contributes around 1.9 per cent of GDP and employs more than 300 people. Customer service has benefited from the introduction of the Customers into Fans campaign. In 2007, it returned an impressive 9 (out of 10) on the customer service index.

Telefónica employs around 700 people in El Salvador and has around 1.2 million customers, with 80 per cent population coverage. It contributes around 1 per cent of the country’s GDP.

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