Telefonica to invest $700 mn in Chile in 2011

SANTIAGO, CHILE: Spain's Telefonica plans to invest around $700 million in Chile this year to boost growth in the local market, the head of the telecom company's local unit said on Thursday.

Claudio Munoz, chairman of Telefonica's Chile unit, said new investments will prioritize the company's broadband business in the South American nation that is showing good economic growth.

"This is good news because it shows our commitment to keep growing," Munoz told reporters in Santiago.

Telefonica is battling Mexico's America Movil, controlled by the world's richest man Carlos Slim, for dominance of the mobile, fixed-line and Internet businesses across Latin America