Spain Telefonica to invest $1.5 bln in Chile through 2009

Spanish telecommunications giant Telefonica SA (TEF) plans to invest $1.5 billion in its Chilean operations through 2009, Chief Executive Cesar Alierta said Monday.
He said the company considers the local investment climate positive and plans to grow in all of its market segments.
Alierta spoke to reporters after meeting Chilean President Michelle Bachelet at La Moneda, Santiago’s presidential palace.
Telefonica’s Chilean holdings include the largest mobile operator in the market and fixed-line operator Telefonica de Chile SA (CTC), also the biggest player in its market.
Telfonica de Chile’s annual investment budget is running at $200 million, a spokeswoman for the company said separately.
The center-left government recently said it will ease operating conditions for telecommunications in Chile.
As a tightly regulated company that still awaits a final ruling on a suit against regulated tariffs years ago, Telefonica stands to be the top beneficiary from pared-down red tape.
The government, through its industry regulator, plays a key role in setting tariffs, particularly for Telefonica de Chile. Hints that the regulator would ease pricing rules in the longer run were enough to send the company’s shares sharply last week.

Source- http://www.marketwatch.com