CIt arose within Telefonica, which was the dominant, newly privatized traditional telephone company of Latin America and Spain. Initially, Telef6nica played the role of ISP (Internet Service Provider) by offering dial-up modem access to consumers and small businesses, grew its Internet business by purchasing and integrating existing portals and ISPs in Spanish- and Portuguese-speaking countries The spin-off took control of the various Internet companies in which Telefonica had stakes as well as the wholly owned Spanish and Latin American Internet subsidiaries of Telef6nica. Assets included the Spanish portal Ole; Internet companies ZAZ (Brazil), Infovia (Guatemala), and Infosel (Mexico); and several companiesbelonging to Telefonica subsidiaries in Chile and Peru. In 1999, the spin-off changed its
name to Terra Networks.