Telefónica has formed a limited partnership with Coral Group, creating a US$200 million investment fund to discover, create and deliver innovative products and solutions for customers in Europe and Latin America.
The investment by Telefónica Open Future to create new products resembles in some ways the Verizon acquisition of AOL. Nobody yet knows how important AOL might become, and other investments related to over the top media have not done well.
Telefónica and Coral plan to work with up to four additional communication service providers around the world, creating a fund with as much as US$1 billion to invest in new technologies and services.
Telefónica has made investments of more than US$7.5 billion in 2014 to help transform the company into a major market player in areas such as next generation networks, big data and machine learning, and the Internet of Things.