TMT SUMMIT:After HanseNet,Telefonica Has Right Mix In Germany

   By Jason Sinclair 
   Of DOW JONES NEWSWIRES

BARCELONA (Dow Jones)

Telefonica SA (TEF) said Wednesday it has the right product mix and scale in Germany after acquiring broadband company HanseNet, and isn't looking at more purchases in the country.

"We now have a more integrated product in Germany and have a fair chance of becoming a distant third [placed participant in the German telecoms market]," Telefonica Chief Financial Officer Santiago Fernandez Valbuena told investors at the Morgan Stanley TMT conference in Barcelona.

Earlier this month, Spanish firm Telefonica bought broadband provider HanseNet from Telecom Italia SpA (TI) in a move to bulk up its Internet offering in the competitive German telecommunications market.

Valbuena added that the move gives Telefonica the right position in the market, avoiding the low-cost segment.

For years, market observers have speculated that Telefonica would buy Dutch telecom company Royal KPN NV's (KPN.AE) E-Plus, Germany's third-biggest mobile network in terms of customers.

Deutsche Telekom AG's (DT) T-Mobile and Vodafone Group PLC (VOD) are Germany's biggest telecommunications companies by customers.

Company Web site: www.telefonica.com

-By Jason Sinclair, Dow Jones Newswires; 34 913958127; jason.sinclair@dowjones.com