Telefónica restructures its Spanish business with shock therapy

SPAIN (Agencies) The President of Telefónica de España, Luis Miguel Gilpérez, accompanied by the President of Telefónica de Europa, José María Álvarez Pallete, announced on Wednesday that the company is changing its rates policy based on the client's freedom to personalise the products (i.e. everything from mobiles to ADSL and beyond, which come under the Movistar brand) according to need. That includes "transparency and flexibility" in changing rates. The executive admitted that the present profusion of charges, rates, tariffs, plans and so on had "complicated communication with the client." In general terms, Gilpérez said that minimum use on contracts will go down from €9 to €6, a 33% decrease. Also, rates for voice and web surfing will include unlimited text messages in Spain. Together with that offer, all Movistar clients that also contract broadband (i.e.ADSL) will have a rate discount of up to €5. The plan includes a reductionof the quantity of mobile terminals (i.e. phones) Telefónica will offer: from between 270 and 2,870 at present, to under 100 models.