IBM and Telefonica join forces

NEWS IBM and Telefonica are to team up to offer IP (Internet protocol) services to businesses throughout Spain and Latin America. The companies will develop and market a range of voice, data and video services for the Spanish telco's customers. Telefonica will also outsource its IT services to the US giant. The firms have not disclosed the terms of the deal. However, reports claim it could be worth billions of dollars in revenues to both companies. Telefonica is looking to increase its already strong South American presence and will work with IBM to upgrade its network in the region to IP technology. Currently, South America accounts for over half the telco's 35 million fixed-line customers. The firms also hope to develop services for Telefonica's mobile phone users.