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Peru Launching 3G Services

19th July,2004

Peru : The Peruvian operator of the Telefonica Moviles Group, the wireless market leader in Peru(a), has begun offering a comprehensive line-up of third generation (3G) mobile services nationwide using an advanced wireless data network solution from Nortel Networks.

Telefonica Moviles Peru first launched these new services in November 2003 in the capital city of Lima and has now finalized the first phase of expansions of its 3G network in the provinces.

The new network - based on CDMA2000 1X technology - positions the Telefonica Moviles affiliate as the leading operator in Peru in offering advanced mobile data services like high-speed Web browsing, video downloads, single and multi-user games, sending and receiving e-mails and photos, chat, ring tones, location-based services and many more.

"We're always working to bring the latest in advanced services to our customers," said David Holgado, director of Technology and Services, Telefonica Moviles Peru. "We were able to count on Nortel Networks vast experience in deploying CDMA2000 1X overlays to help us complete this new, world-class mobile infrastructure. Today, that gives us an edge in responding to and even moving ahead of market demand for superior voice quality and advanced mobile data applications."

Nortel Networks began the overlay of Telefonica's 3G CDMA (code division multiple access) network in the fourth quarter of 2003. This included radio base stations and base station controllers, mobility switching, software and network services.

"With the new CDMA 1X infrastructure, Telefonica Moviles Peru has the necessary capacity to manage subscriber growth and roll out new, revenue-generating services across the country," said Alvio Barrios, Telefonica account vice president, Caribbean and Latin America, Nortel Networks. "We continue to work with innovative wireless operators like Telefonica in Latin America and around the world to transform their networks, eliminate boundaries and enrich communications for their customers."

About Telefonica Moviles Peru

A subsidiary of the Telefonica Moviles Group, Telefonica Moviles Peru is the first company in Peru to commercially launch third generation technology, which is already serving about 300,000 customers. At the end of the first quarter of 2004, it had more than 1.63 million active customers, registering an estimated 52 percent market share, confirming its leadership in the country's wireless market. Its growth and profitability have validated Telefonica Moviles Peru as one of the most solid companies in the country.

About Telefonica Moviles

Telefonica Moviles handles the wireless telephony activities of the Telefonica Group around the world. It is one of the first global wireless phone companies and the leader in the Spanish- and Portuguese-speaking wireless markets, with more than 54.5 million customers. It has recently reached an agreement to purchase the Latin American wireless assets of BellSouth, which pushes its customer base to over 66 million. In the quarter of 2004, it had net earnings of 423 million euros, representing 17.9 percent of sequential growth. Telefonica Moviles is traded on the Spanish stock markets and on the New York Stock Exchange under the symbol TEM.

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