It has been a painful week for Telefonica. The telco announced a much-awaited strategic review at its recent Capital Markets Day, and stock markets responded with a resounding boo. But the outlook may not be quite as bad as the share price reflects. Telecoms is a long game, and while Telefonica has had to halve its dividend payment to investors, there is a long-term strategy that may pay off. Debt reduction has been the running theme at Telefonica over the last decade, and the new CEO is taking some tough decisions to pay down debt – decisions that investors are not happy with. The new-ish CEO Marc Murtra was handed a poison chalice when he took the role at the…