CeskyTelecom-EU authorization

Telefonica SA
10 June 2005


Further to the reports registered on March 31st  and April 6th and 12th,  2005,
Telefonica S.A., as provided in article 82 of the Spanish Securities Market Act
(Ley del Mercado de Valores), hereby reports the following


                            SIGNIFICANT EVENT


The European Commission has authorised the concentration operation whereby
Telefonica, S.A. is to take control of the Czech telecommunication operator
Cesky Telecom a.s. by purchasing 51.1% of its share capital.

Telefonica, S.A. received notification today of the decision of the European
Commission not to oppose the Cesky Telecom a.s. share purchase operation by
Telefonica. In its decision, the European Commission considers that the
transaction does not significantly affect competition in either all or a
substantial part of the European Economic Area, so authorising it without any
conditions.

Subsequent to this authorisation, Telefonica, S.A. expects the acquisition could
in normal circumstances be implemented this June.

The purchase by Telefonica, S.A. of 51.1% of the equity of Cesky Telecom a.s.
implies the subsequent formulation of a public tender offer for the other 48.9%
of equity in the company.


Madrid,  June 10th, 2005.



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