Telefonica Moviles signs agreement with Nokia for GPRS network in Spain.

HELSINKI, Finland--(BUSINESS WIRE)--Nov. 5, 1999--

Telefonica Moviles, the leading GSM operator in Spain has signed an agreement with Nokia for the deployment of a GPRS (General Packet Radio Service) core network. The contract is the first step in providing secure mobile access to the Internet, intranet and other IP-based services in Spain.

The Telefonica Moviles network is expected to be operational in the second half of year 2000. The contract includes IP (Internet Protocol) backbone network infrastructure, the Nokia Serving GPRS Support Node (SGSN), the Nokia Gateway GPRS Support Node (GGSN) and the Nokia Charging Gateway.

Telefonica currently has approximately 8 million cellular subscribers in Spain. "With this co-operation with Nokia, GPRS connectivity will provide access to the Internet and other packet based networks," says Francisco Ruiz Vinuesa, CTO of Telefonica Moviles.

"GPRS will deliver the Internet to the mass mobile market," says Petri Poyhonen, Vice President, GPRS Business, Nokia Networks. "Nokia has been supplying GSM infrastructure to Telefonica since 1996 and there is huge potential in Spain for the development of mobile value-added data services to continue."

Nokia's GPRS solution offers the benefit of instant IP connectivity and more than a ten-fold increase in existing data speeds. GPRS will offer true global mass market wireless access to the Internet and other packet-based networks, as well as providing an essential stepping stone to third generation (3G) networks. Spain will be one of the first countries to grant 3rd generation licenses in the beginning of year 2000.

Telefonica Moviles with close to 8 million subscribers is Spain's leading mobile phone operator and the sixth in Europe. More than 7 million currently use the dual band GSM network Telefonica Movistar, while 700,000 use Telefonica Moviline an NMT network. Telefonica Moviles has its own wireless portal "Oleada" www.oleada.com and has also recently introduced a wide range of WAP based services to the Spanish market.

Nokia is the world's leading mobile phone supplier and a leading supplier of mobile, fixed and IP networks including related customer services. Nokia also supplies solutions and products for fixed and wireless datacom, as well as multimedia terminals and computer displays. In 1998, net sales totaled EUR 13.3 billion (USD 15.7 billion). Headquartered in Finland, Nokia is listed on the New York (NOK), Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges, has sales in over 130 countries and employs more than 53,000 people worldwide.