TEM 2003 active customer base

Telefonica SA
27 January 2004


27/01/2004

TELEFONICA MOVILES' ACTIVE CUSTOMER BASE SURPASSED 52 MILLION IN 2003


  • Total active managed customers rose by over 10.5 million, an annual
    increase of over 25%. In the month of December alone, Telefonica Moviles'
    client base increased by more than 2.7 million customers.

  • The increase of more than 4.2 million clients in the fourth quarter was
    the largest quarterly organic growth in the history of the Telefonica
    Moviles Group.





This document contains statements that constitute forward looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements appear in a number of places in this document and include
statements regarding the intent, belief or current expectations of the customer
base, estimates regarding future growth in the different business lines and the
global business, market share, financial results and other aspects of the
activity and situation relating to the Company. Such forward looking statements
are not guarantees of future performance and involve risks and uncertainties,
and actual results may differ materially from those in the forward looking
statements as a result of various factors. Analysts are cautioned not to place
undue reliance on those forward looking statements, which speak only as of the
date of this presentation. Telefonica Moviles undertakes no obligation to
release publicly the results of any revisions to these forward looking
statements which may be made to reflect events and circumstances after the date
of this presentation, including, without limitation, changes in Telefonica
Moviles's business or acquisition strategy or to reflect the occurrence of
unanticipated events. Analysts are encouraged to consult the Company's Annual
Report on Form 20-F as well as periodic filings made on Form 6-K, which are on
file with the United States Securities and Exchange Commission.


Madrid, 27 January 2004.- Telefonica Moviles ended 2003 with over 52 million
active managed customers. These figures consolidate Telefonica Moviles' position
as one of the largest mobile telephony groups in the world and reflect the
significant commercial activity of all the Group's operators in the fourth
quarter of the year, when Telefonica Moviles increased its active client base by
more than 4.2 million customers. In the month of December alone, Telefonica
Moviles added more than 2.7 million active clients.


These 4.2 million new active managed customers represent the highest organic
growth (excluding the impact of acquisitions and mergers) in one quarter in the
history of the Telefonica Moviles Group.


During the year, the number of active managed clients rose by over 10.5 million,
or more than 25%.

By geographical regions, Telefonica Moviles Espana exceeded 19.66 million
customers, a year-on-year increase of 7%, after having gained over half a
million new customers in fourth quarter 2003. The performance of Telefonica
Moviles Espana's quarterly net adds reflects the satisfactory results of the
company's commercial policy, both with respect to customer loyalty and customer
acquisition.


In Brazil, Vivo, the joint venture between Telefonica Moviles and Portugal
Telecom, exceeded 20.6 million active customers, with an increase of close to
2.2 million new customers in fourth quarter 2003 and close to 7 million since
the beginning of the year. Accordingly, Vivo consolidates its leadership of the
Brazilian mobile telephony market, with an estimated average market share of 56%
in its areas of operation, thanks to its having the most advanced range of
latest generation services and a successful unified commercial offering under
the Vivo brand.


In Mexico, the efforts made to extend the coverage of the GSM network in the
country, which exceeded initial targets, and a more extensive distribution
channel - with over 6,000 points of sale at the end of 2003 - boosted commercial
activity significantly in the last few months of the year. Telefonica Moviles
Mexico achieved a significant success in its Christmas campaign, adding more
than half a million active clients in the month of December, for a net increase
of 725,000 clients in fourth quarter 2003 (191,000 in third quarter 2003). As a
result, the company added more than a million new customers in the year.


All this brought Telefonica Moviles Mexico's client base to nearly 3.5 million
active customers at the end of 2003, placing it in a solid position to capture a
significant part of the growth in the Mexican mobile market during 2004.


In Argentina, Telefonica Moviles exceeded 1.8 million active customers, a
year-on-year increase of 13%, with commercial activity growing in the fourth
quarter of the year.


Telefonica Moviles Peru had over 1.5 million active customers at the end of
2003, a 22% increase from the previous year, thanks to its progress in the
development of the new generations of mobile telephony, which has allowed the
company to consolidate its leadership.


In Chile, Telefonica Movil (the subsidiary of CTC Chile managed by Telefonica
Moviles) ended 2003 with 2.3 million active customers, 23% more than in December
2002. The strong net adds in fourth quarter 2003 were boosted by its offer of
GSM services.


In Morocco, Medi Telecom reached 2.1 million active clients, a year-on-year
increase of 29%.


The solid results obtained in the last quarter of the year, with growing
activity in all markets, confirm the dynamism of the markets in which Telefonica
Moviles Group is present and the company's ability to capture the largest share
of the high growth potential of these markets.


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