According to a Spanish telecommunications company, Telefonica, its fourth-quarter profits plunged by 45% as the economic crisis hit the domestic wireless networks in Spain and the gains were cut from the rest of Latin America and Europe.

The fourth- quarter profit of Telefonica SA was euro 1.3 billion which has gone down from 2.4 billion in about the same period of time.

The second largest telephone company in Europe, Telefonica SA, has reportedly registered a huge profit in the fourth quarter which was actually much larger than what was initially expected by the company.

Going by some media reports, including a Sunday report in the financial news website TheMarker, O2 – the mobile phone division of Telefonica – will acquire the Israeli voice over IP (VoIP) startup Jajah this week.

As more and more suitors express their inability to increase bids any further, Telefonica and Vivendi have emerged as sure winners in the GVT takeover race, and after raising its current bid further by 5.2%, Telefonica seems to have taken over its French rival by a substantial margin.