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Telefónica Launches Movistar i-mode Content

30th June 2003

Europe : Telefónica Móviles España will offer a new range of mobile access services to i-mode™-based web content and will begin selling a new selection of handsets that provide direct access to the service.

With this launch, Telefónica Móviles will meet two of its key strategic objectives: to provide its customers with the best available services -in this case the mobile internet access model that has been so successful in Japan (where it is used by approximately 38.6 million customers) and to spearhead the rollout of mobile data services, thereby raising ARPU in this area.

The company is to launch its i-mode™ service, including multimedia capabilities, in MoviStar e-moción. This is the mobile internet content access service set up by Telefónica Móviles España in 2000, which currently has over 7 million registered users and 1.5 million regular customers, downloading a total of 50 million pages a month. In addition, Telefónica Móviles is bringing a new business model to the Spanish market.

This model aims to create a balanced relationship between the agents along the value chain (the carrier, content providers, handset manufacturers and applications developers) so as to achieve their goal of revolutionizing the Spanish mobile telephony market.

In July 2002, Telefónica Móviles España signed a five-year licensing agreement with NTT
DoCoMo through which the Japanese company provides TME with the patents, the know-how and the necessary technology to provide the i-mode™ service via its GPRS (Global Packet Radio Service) network. Since then, Telefónica Móviles has spent some Euros10 million developing platform technology, and has earmarked a similar amount to market and publicize the service, with a large portion also going to training sales staff.

Content and handset offering
Starting tomorrow, MoviStar e-moción will provide an exclusive offering of 100 types of content developed by i-mode™, which will enhance users' experience. Among other advantages, the new content offers faster access, is easier to use and is more attractive.

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