ANATEL.s authorisation

Telefonica SA
10 December 2002



                               SIGNIFICANT EVENT


In accordance with the provisions of article 82 of Law 24/1988 dated July 28th,
on the Securities Market and ancillary regulations, we hereby inform, that on
December 4, 2002, the Brazilian National Telecommunications Agency (ANATEL)
authorized the migration to Personal Mobile Service (SMP) of the Telefonica
Moviles Group's Brazilian operators.


In addition, ANATEL authorized the transfer by the Telefonica Moviles Group and
by the Portugal Telecom Group of their interests in their Brazilian cellular
subsidiaries to the Joint Venture incorporated by both groups in accordance with
the agreements executed on October 17, 2002, the execution of which was
communicated to the Market.


As a consequence of the aforesaid authorisation by ANATEL, the teams of both of
the Telefonica Moviles Group and of the Portugal Telecom Group are currently
working in order to attempt to consummate the contribution of their Brazilian
assets to the Joint Venture before the end of the fiscal year 2002.






                                                       Madrid, December 10, 2002


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