Question-and-Answer Session
Operator
Thank you. (Operator Instructions). Our first question comes from the line of Luis Prota, please go ahead with your question, announcing your company name and location.
Luis Prota - Morgan Stanley
Yes, hello. It's Luis Prota from Morgan Stanley in Madrid. I have two questions, the first one is whether you can clarify what are the options and your intentions in Italy and whether whatever it happens is linked, somehow, to the result of the Sonaecom and Portugal Telecom offer? And the second question is, if you could give us some light on your expectations on roaming impact for both Telefonica Moviles and O2, whether you are including something or maybe nothing for 2007 from the new legislation? Thank you.
Cesar Alierta
Thank you Luis. With regards to Telecom Italia, I will have to say that we have a higher respect for Telecom Italia and its management. And we are convinced that it would be a fruitful idea for Telecom Italia and Telefonica to work together.
However at this point, we feel that the current circumstances make it difficult for us to proceed along the lines of our February 12 statement. We have decided to put the conversation on hold, and we will keep you informing about any changes.
And I will remind that with regards to Telecom Italia, there are only two statements that have been made by Telefonica. The statement we made on 12 February and the statement I am making today, and that is all. And, nothing to do with Portugal. Telefonica has already stated clearly its position regarding the proposal in the shareholders meeting. And the present situation arises as a result of the upper percentage by Sonaecom. And we clearly believe all the shareholders will be able to decide individually whether to tender their shares or not. As consequence, Telefonica will work in favor of lifting any limitations so that all shareholders may decide what to do while facing this offer.
Julio Linares
This is Julio Linares. I will ask you a question regarding international roaming. As you know, the subject is under discussion today both in the Council and European Parliament and it is not clear yet what is going to be the final decision. Though, it seems that they are going to regulate both retail and wholesale. So on the point of view of Telefonica, we believe that the regulation should be taken in such a way that there is not distortion in the market that there is no reduction in the competition and there is no any disadvantage from the point of view of any customer move.
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