Telefonica is going to start its operations in London which would be headed by Mathew Key who already handles their marketing department in Europe.

The main aspects of London business would be for gas meters, as well as for traffic lights and for that they would do advertising and health promotion campaigns. The effort would also help 2500 people to get job over there as they would run London division all new staff. Headquarter of London company would be based in Slough, but after some time, it would shift to central London.

According to the recent developments in the earnings made by Telefonica, the leading telecom firm in Spain, the net profits of the firm have gone down by a tremendous 16.2% in the first half of the year to 3.162 billion Euros now.

Telefonica TEF had announced last year's results that were normally in line with the company's estimations, and the company won't be changing its fair value estimate.

The report showed fall of 2.1 percent year over year against their expectation of a decline of 1.7 percent.

Excluding negative currency movements, profit would have been raised by 0.2 percent.

In spite of the weak economy, the company raised its subscribers 5.1 percent to 265 million accesses.

Spain’s Telefonica has announced that it has acquired Jajah for 145 million euros (US$207 million). Jajah is a provider of Internet-based phones service with headquarters in the United States and Israel.

According to the statement issued by the former state monopoly, the all cash deal is subject to approval by Spain’s antitrust authorities.

Jajah will allow its customers to make free calls between its customers over the Internet or very cheap calls to the fixed-line as well as mobile numbers.

According to the sources, Spain’s Telefonica has allocated a deal to ZTE to manufacture a WiMAX network.

However, the exact value of the deal has not been disclosed yet.

It is learnt that it is the largest deal bagged by the ZTE from a European operator.

Meanwhile, company’s Iberbanda will operate the network and comes after the Spanish operator has named Israel’s Alvarion back in May to develop its WiMAX network in Catalonia.

This newest award to ZTE does not clarify when or where the deployment will happen, or if it involves collaboration with Alvarion.

Spain’s Telefonica has expressed its desire to invest $1.14 billion in Brazil in 2010, compared with expected capex of around 2.4 billion reais figured for 2009.

Addressing to reporters, Valente said, “The investment probably will be bigger than 2 billion reais.”

Moreover, Telefonica was also preparing for a proposal for a more “aggressive” pricing of its fast Internet access to handle the increase in competition from France’s Vivendi in the Brazilian market.

Spain's Telefonica has announced that it will acquire 21 percent of Digital+, which is the pay television business of indebted media group Prisa, for 470 million Euros.

But, according to the statement issued by Europe's largest telecom, only 240 million euros will exchange hands while the remaining 230 million Euros correspond to debt owned to Telefonica by Prisa.

Further, the statement also revealed that the acquisition is dependent on regulatory approval.

Telefonica is aiming to pay 400 million euros ($594.1 million) or 450 million for a 20 percent stake in indebted media group Prisa’s pay TV unit Digital+.

According to the sources, Europe’s biggest telecom firm has been in talks for many months to acquire the stake.

Further, the reports said that Telefonica could make a final decision by the coming week.

EI Economista has place a price tag of 400 million euros on the 20% equity, whereas fellow business Expansion estimated it would cost 450 million.

Telefónica, the largest telecommunications company in Spain, announced on Thursday that it has agreed to buy Telecom Italia’s German broadband unit, Hansenet.

Telefónica, in its filing to the Spanish market regulator, said that it would purchase Hansenet from Telecom Italia for $1.34 billion, and the deal would be carried out in cash.

According to the company, the acquisition would help it to improve its standings in the German telecommunications market, which has become highly competitive in the past few years.