March 1, 2001
At the height of European maritime expansion five centuries ago, Spain and Portugal ended their rivalry for colonial conquests in Latin America by signing the Treaty of Tordesillas, which divided the New World into two spheres of influence. In a fitting parallel for the era of globalization, the two dominant Iberian telecommunications operators have forged a Latin American business alliance that aims to share the spoils of the Brazilian mobile phone market - and perhaps lead to a wider partnership.
Portugal telecom has invested more
than $5.5 billion in Brazil since 1998.
Spain's Telefónica a
Portugal Telecom has parlayed its Brazilian assets into an outsized alliance with Spain's Telefónica that will
dominate Brazil's cell phone market. The deal also will help the Portuguese company overcome its size limitations.