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Market Underestimates Telefonica

Allan C. Nichols, CFA (allan.nichols@morningstar.com)

 Telefonica TEF is the incumbent telephone operator in Spain and, along with America Movil AMOV / AMX , it is one of two dominant operators in Latin America. Thanks to its acquisition of E-Plus in Germany, it is the largest wireless operator by number of subscribers in the country. It is also the second-largest wireless operator in the United Kingdom.