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The company was created in Madrid in 1924, as Compañía Telefónica Nacional de España (CTNE), with ITT among its major shareholders. In 1945, the state acquired by law a share of 79.6% of the company, later diluted by a capital increase in 1967.
Until the liberalization of the telecom market in 1997, Telefónica was the only telephone operator in Spain, where it retained a dominant position. Telefónica is present in 12 countries in Latin America and Europe, as of January 2024.