Friday, September 08, 2023

Why STC bought a 9.9% stake in Telefónica

The operation took the Spanish operator's board, the government and the financial regulator by surprise. The investment bank Morgan Stanley was acquiring the shares, by order of the Arab firm, in small packages without taking control. Telefónica is attractive because of its robust dividend payments.

The acquisition of a 9.9% stake in Telefónica by Saudi Telecom Company (STC) caused surprise in various sectors. Firstly, within Telefónica itself, where its executives were unaware of the move. It also surprised the Spanish government, which considers the operator to be a key company in the country's strategic framework. Spanish banks were also caught off guard, missing out on an operation that promises significant commission earnings. The list continues with the European telecommunications industry, specialized analysts, and even the securities regulator.

Read full article

MORE ANALYSIS

Brasil · Fixed Broadband · Submarine Cables · Terrestrial Backbones22/09/2026

“Analyzing submarine and terrestrial networks as isolated infrastructure no longer makes sense”: V.tal’s experience

Lucas Aliberti, CCO of V.tal, explained in an interview with Convergencialatina the strategy of Brazil’s neutral digital infrastructure giant. He said network integration is a key value today and that, in 5G, “the further it advances, the more important fiber becomes.”

América Latina · Submarine Cables27/08/2026

Liberty Networks aims to transform communications in Venezuela

Convergencialatina spoke with Axael Arteaga, Liberty Networks’ Senior Director of Wholesale Sales, following the announcement of the Fénix cable, which will connect Venezuela with Curaçao. He details the technical characteristics of the new system and how it will connect to the operator’s regional network.

América Latina · Submarine Cables20/08/2026

Padtec expects to sign several submarine cable projects in the region this year

Convergencialatina spoke with Carlos Raimar Schoeninger, CEO of Padtec, following the launch of Padtec Marine Networks, a business unit established through the acquisition of LEV Brasil, a company specializing in submarine deployment services. The impact of geopolitics and supply chain bottlenecks.

Brasil · Operators05/08/2026

Claro’s strategy to consolidate its leadership in Brazil’s broadband market

The acquisition of regional operator Desktop will allow the company to expand its presence in the state of São Paulo, the main stronghold of its competitor Telefónica, which has already withdrawn from most of the Latin American market.

América Latina · Fixed Broadband · Operators28/07/2026

América Móvil boosts Claro with cross-selling expansion following Wow acquisition

While Claro is focusing its fiber optic network rollout on Lima and El Callao, Wow is focusing on the provinces. This complementarity avoids overbuilding, improves ARPU and reduces churn. Wow had been facing financial difficulties, according to a securities research firm.

List all analysis

A DIARIO LATINO 24-09-2026

Perú · Terrestrial Backbones 23/09/2026

San Martín Broadband Project connects more than 203,000 people

Globales · Software and Applications · Politics 23/09/2026

AI at the center of debate between Trump and Xi Jinping

América Latina · Smartphones & Devices · Software and Applications 23/09/2026

ISPs concerned about spread of infected devices and impact on home networks

España · Smartphones & Devices · Operators 23/09/2026

Telefónica creates new device sales unit

List all news