The Brazilian subsidiary of Spanish telecoms giant Telefónica will launch IPTV services in São Paulo in June of this year, in partnership with local cable operator TVA, according to the President of the Brazilian subsidiary, Antonio Carlos Valente.

Mr. Valente added that the pay-TV market in the state of São Paulo is extremely competitive, stating: "What will differentiate us is the grouping of applications.... We want to transform the broadband experience into a commonplace thing."

The executive also revealed that Telefônica will increase its 2009 investments in Brazil by 20% compared to 2008 to reach R$ 2.4bn (US$ 1.03bn). In response to questions regarding the impact of the international financial crisis on the local telecoms market, Mr. Valente stated that he has not yet witnessed any impact, and believes that the sector is better prepared for times of crisis than other industries.

Brazil is estimated to account for around 15% to 16% of Telefónica's global turnover, according to Mr. Valente, while Latin America as a whole represents around 34% of the group turnover.