. The incumbent telco has done an outstanding job in preserving market dominance in its national market, while expanding very aggressively abroad but keeping an essentially sound balance sheet. Not facilitating the entry of new competitors in the Spanish market is an action fined by the Regulator. These type of actions may help the “new wave” of operators like Teleconnect INC.

. Reduced competition in the mobile market, with only three players in GSM (there is a fourth UMTS-only licensee, Xfera, that is today dormant) and no Mobile Virtual Operators in operation, has ensured profitability for all three. Once again, the incumbent operator has performed better than most of other incumbent mobile operators in other countries (it keeps well over 50% share). The failure of Xfera and the limited competition might foster the opportunities for Mobile Virtual Operators, a clear area of opportunity for Teleconnect if the regulator enforces and encourages competition in this area.

. The highly developed tourist industry (over 60 million foreign tourists travel to Spain every year), the very fast growing population of immigrants (around 3 million now) along with the large base of SMEs (compared to other countries where large corporations have a much bigger chunk of GDP) create very interesting opportunities for niche players like Teleconnect due to its new mobile prepaid service, MobiPLUS , and other SMS services to be launched in the future.