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Telefonica is trying to bring its fixed line and mobile businesses closer together in Brazil.



Brazil has brought the greatest profits of all of Telefonica's Latin American businesses, but the company is facing increasing competition in the fixed line sector.



Telefonica aims to obtain cost savings by working more closely with its mobile business, Vivo, which is also partly owned by Portugal Telecom. The proposals will involve negotiations between the Spanish and Portuguese multinationals, who have clashed previously on the management of Vivo.



Another option for improving Telefonica's position in Brazil may involve a takeover of Telecom Italia, which controls TIM Brasil, Brazil’s third-largest mobile operator.