Telefonica SA
18 April 2000
TELEFONICA WITHDRAWS FROM BIDDING FOR UMTS MOBILE TELEPHONE LICENSE
IN THE UNITED KINGDOM
- The price of the licenses would make the investment unprofitable and would
impede the creation of value for shareholders
Telefonica has decided to withdraw from the bidding for the UMTS mobile
telephone licences in the United Kingdom. The prices reached in the auction,
which today surpassed 3.7 billion pounds for the least expensive license, have
prompted the decision by Telefonica not to continue bidding.
With the UMTS licenses in the United Kingdom at these price levels, Telefonica
believes it would be difficult to make such an investment profitable and
therefore regards other growth opportunities as more attractive and creating
more value for its shareholders. These opportunities include taking part in the
bidding for UMTS licenses in the principal European countries.
Telefonica has more than 20 million cellular telephone clients in Europe, Latin
America and North Africa. In March, the company was awarded a license to
provide UMTS mobile services in Spain.
MADRID, 17 APRIL 2000
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