Telefonica observers may be forgiven for thinking the great Spanish telco is in a state of perpetual restructuring as it engages in yet another bout of transformation or realignment. This does not necessarily mean that the last transformation was a failure but merely that it did not account for subsequent macro-economic and other changes that altered the balance between its global businesses. The main changes are that its Spanish speaking Latin American operations have stalled, with investment and growth prospects increasingly concentrated in the four key markets of the UK, Germany, Portuguese speaking Brazil and its home ground in Spain. At the same time, traditional telco revenues are in decline while broadband and pay TV are relatively saturated in those…