Spanish telecom group, Telefonica, one of Europe's most heavily indebted operator announced on Thursday that it was open to talks about mergers, acquisitions and deals to share its networks in Mexico.

Telefonica currently has a market share of 20 percent of the Mexican mobile market whilst its competitor, American Movil controls 70 percent, which is owned by the world's richest man, Carlos Slim.

It has already scaled and streamlined its operations by selling off its non-core assets in Europe and Latin America and is now focusing its business in key markets such as Spain, Germany, Britain, Brazil and Mexico.  Telfonica, last year, also signed roaming agreements with smaller competitors Nextel and Iusacell as it is push forward with a new strategy to revamp its operations in Mexico hoping that it would cut its heavy reliance on Brazil.

Chief Operating Officer Jose Maria Alvarez-Pallete, told the press at the Morgan Stanley annual technology conference in Barcelona that "We are very open minded to consolidation in Mexico, since we think it makes sense and the timing is right. We also remain committed to the Mexican market, one of our top five."