A report has come out of Spain that Telefònica will be the exclusive distributor of the Palm (NSDQ: PALM) Pre in Spain, the UK and Latin America. Telefònica operates under the O2 brand in the UK and Movistar in Latin America (Vivo in Brazil) reports Expansion (Spanish, translation). Telefònica has slightly more users than Vodafone (NYSE: VOD) in the UK and is the largest carrier in Spain, and already carries the iPhone in those two markets. There are a lot of factors that go into choosing a carrier partner; one of them is how heavily the carrier will market the gadget. With the iPhone you have to think that Movistar’s attention will be divided, but Vodafone has the Blackberry Storm, and I guess it could be hard to find a decent sized carrier without a flagship phone, and who met all the other criteria. The paper seems to belong to a respectable group of companies but gives no source for the rumor.

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