Telefónica Positioned in the Leaders Quadrant of the Magic Quadrant for Pan-Western European Mobile Service Providers 2012

Madrid, 14th – Telefónica, a leading provider of integrated communication solutions, today announced it has been positioned by Gartner, Inc. for 6th consecutive year in the Leaders quadrant of the Magic Quadrant for Pan-Western European Mobile Service Providers*.

Jose Luis Gamo, Telefónica Global Solutions, Multinational Business Unit CEO, commented:

“Managed Mobility remains a strategically important service for Telefonica and an area where we continue to heavily invest. We understand the positive impact it has in enabling our enterprise and multinational customers globally to take advantage of increased productivity, leverage and manage the trend of consumerisation and enterprise mobility, implement joined up end to end communications, and most importantly, facilitate a business everywhere principle through mobilization of business processes and higher employee collaboration, leading to greater productivity. We will continue to deliver in this area with new innovative products and features to help our customers run their businesses more efficiently”

The report defines "leaders" as “mobile service providers that offer mature offerings, while also demonstrating the vision needed to sustain a leading position in the market as client requirements change. They invest in and focus on their offerings and the service experience they deliver in a way that can affect the market’s direction. They have a proven track record in mobile voice and data services for enterprises, and they offer wide geographic coverage. They have also shown a commitment to invest in this business, which indicates that they are well placed for future success. Their products and services are relatively low-risk, but not necessarily the best for every customer".

*Gartner, Inc., "Magic Quadrant for Pan-Western European Mobile Service Providers" by Katja Ruud and Leif-Olof Wallin, 9 January 2013

Mobile Service Providers evaluated in the Magic Quadrant were evaluated on their "ability to execute" and "completeness of vision" which reflect the following specific criteria:

Ability to Execute

Product/Service
Overall Viability (Business Unit, Financial, Strategy and Organization)
Sales execution/pricing
Market Responsiveness and Track Record
Marketing execution
Customer experience
Operations



Completeness of Vision

Market understanding
Marketing strategy
Sales strategy
Offering (product) strategy
Business model
Vertical/Industry Strategy
Innovation
Geographic strategy

Disclaimer:

The Gartner Report(s) described herein, (the "Gartner Report(s)") represent(s) data, research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Each Gartner Report speaks as of its original publication date (and not as of the date of this Prospectus) and the opinions expressed in the Gartner Report(s) are subject to change without notice.

About Telefonica

Telefonica is one of the largest telecommunications companies in the world in terms of market capitalisation and number of customers. From its consolidated position in the sector, and with telephony fixed and mobile broadband as key areas that support future growth, the company focuses its strategy on securing its leadership in the digital world. With a significant presence in 26 countries and with a customer base of more than 312 million customers, Telefonica has a strong presence in Europe and Latin America, important industrial alliances and a leading global scale which positions the company to capture growth opportunities. Telefonica is a fully publicly traded company with more than 1.5 million direct stakeholders and its ordinary shares are traded in various stock markets, including London and New York among others.

Telefonica Global Solutions manages globally the business unit of Multinationals, Wholesale and Roaming. Global Solutions delivers integrated fixed, mobile and IT services to some of the world’s top multinationals and corporations. It also provides global telecommunication services for fixed and mobile carriers, ISPs and content providers. Global Solutions develops a globally integrated and competitive portfolio for carriers and corporations that include international voice, IP, bandwidth capacity, satellite services and mobility. We are a multicultural organisation, with more than 1400 employees, working in over 40 countries and speaking more than 15 languages. Consider us for your communications and IT solutions from Beijing to London, Miami to Madrid or Rio de Janeiro to Paris.