Telefónica is now the biggest European operator in terms of revenue, but the stock market continues to give the company the thumbs down. The article states that after registering a 3.5 percent year-on-year increase in revenues during 2011, to €62.8 billion, the Spain-based operator overtook rival Deutsche Telekom, which saw sales fall six percent to €58.6 billion over the same period. Carlos Abad, Managing Director of Arthur D. Little’s Spain practice, believes the operator is being harshly judged. He is quoted as saying “Telefónica’s value is penalized in excess because of its Spanish nationality and the generally bad market sentiments towards the country. Telefónica has, of course, exposure to the severe recession in Spain, but has acted very decidedly to reduce payroll, retain clients and lower acquisition costs eliminating subsidies.”