Telefónica eyeing $60m in Movistar in '07

Spain's Telefónica plans to invest $60 million in its El Salvadorian unit Movistar's GSM infrastructure, local media reported.

A report from local paper Diario Hoy said the investment is targeted at expanding coverage in developing regions nationwide, such as the country's north where a highway is being built and east where Puerto de La Unión port is located.

Movistar El Salvador is the country's second largest mobile provider with almost 1 million subscribers and a market share of 30% to 35%, the report said.

According to the country's telecoms regulator Signet, El Salvador had some 3.1 million mobile users at the end of the first half of 2006.