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 revenues have risen to euro 16.5 billion from 15 billion, in the previous year. The company was of the view that the lower profits of the nation were a set up, due to the strong structure of growth and rise in Latin America, especially in Brazil.

According to Telefonica, the operations in Spain, the full year revenue was lowered by 5 % and is at a halt at 18.7 billion.

This has contributed to the fall and the economic trouble that has accounted to a decrease of 20% unemployment, strong price competitions and government austerity measures that hurt the spending of the consumers.

There is a lot going on and a lot needs to be taken care of if stability has to be restored to this business concern.