Telefonica, Spain’s largest telecoms operator, is mulling the investment of an estimated 24.3 billion reais, approximately US$14.7 billion, in Brazil between 2011 and 2014. The investment plans were revealed by Telefonica’s CEO Cesar Alierta, during a meeting with Brazilian President Dilma Rousseff.

In a statement Wednesday, Telefonica reiterated that the amount represents a 52 per cent increase over the previous four years. Fox Business indicated that the funds will be used to modernize and expand the Telefonica’s telecom network and launch products and services in the fixed and mobile telephony, mobile and fixed broadband and cable television segments, as well as acquire operating licenses.

Other than these, Alierta as well announced that a new innovation center will be established in Sao Paulo – Telefonica’s first outside Spain – to develop technological solutions for video and fiber-optic platforms. Fox Business quoted Alierta stating that Telefonica is investing heavily in expanding its services and networks with the aim of covering close to 100 per cent of Brazil’s municipalities with its telephone and broadband internet, both fixed and mobile.

Up till now, Telefonica has invested a total of 57.4 billion reais in Brazil since launching operations there in 1998. However, the fresh investment now brings up the sum to 82 billion reais. Currently, the Spanish telecoms giant is the leading telecoms operator in the Brazilian states of Sao Paolo with about 12 million customers and 3 million fixed broadband subscribers.

Telefonica acquired Brazil’s telecoms market leader, Vivo, last year, giving it the 30 per cent market share held by Vivo. Telefonica took control of Vivo after paying €7.5 billion to Portugal Telecom after a long struggle. Mr Alierta said Telefonica’s objective is to build the most modern networks in Brazil and be pioneers in introducing new technologies to the country.

In addition to its fixed line services in São Paulo state, the country’s richest and most populous; Telefónica owns a digital TV service, a big call-centre operation and one of Brazil’s biggest internet portals, the Financial Times reported separately.

Telefónica, S.A. is a Spanish broadband and telecommunications provider in Europe and Latin America. Operating globally, it is the fifth largest provider in the world. The company is the former public monopoly of telecommunications in Spain. Telefónica’s largest fixed-line operation in Latin America is in São Paulo where it provides broadband, local and long distance telephone services in the state, which alone represents the highest GDP of South America