"Well managed, dominant firms use downturns to become more powerful -- and that's definitely what Telefonica (NYSE: TEF) is up to," says Roger Conrad in The Utility Forecaster.

"Incorporated in 1924 as a unit of US-based ITT, the Spain-based company now serves 47 million customers in its home country, 150 million in 14 Latin American nations and 45 million elsewhere in Europe.

"Thus far in the recession, diversity and dominance of fast-growing markets has kept Telefonica growing. Overall global customer rolls increased by 15.2% through the third quarter 2008.

A trio of leading advisors are looking outside the US for opportnity in the telecom sector: Nick Vardy sees potential with Telefonica S.A. (NYSE: TEF), David Fried looks south of the border to Telefonos de Mexico (NYSE: TMX) and Dave Dyer recommends the more diversified Emerging Markets Telecommunications Fund (ASE: ETF).

In his Global Bull Market Alert, Nick Vardy explains, "Spanish telecom group Telefonica S.A. is like a corporate conquistador, exploiting its historical links to expand into Latin America. This new Spanish explorer is reaping rich profits for itself and its shareholders.

"Telefonica's global footprint extends across three continents and 23 countries with a total population of 670 million. This conquistador planted its first flag in Latin America 15 years ago and today is the leading telecom in Brazil, Argentina, Chile and Peru.

"For an organization that is already the fifth-biggest telecom company in the world with close to 207 million customers, Telefonica's profits are still expanding at a breathtaking rate.

"Just recently, Telefonica announced that its third-quarter net profit rose 39% year-on-year. Overall, net profit jumped to €4.02 billion from €2.9 billion a year earlier. Also important to us, Telefonica is a stock that has held up remarkably well despite the recent market jitters, recently hitting a record high. We recommend buying the shares at market."