Telefonica Moviles Selects Motorola for Third Generation Network and GPRS High Speed Mobile Data Solution 

Spanish network further success for Motorola-Cisco Alliance

The leading Spanish GSM operator Telefonica Moviles has announced the participation of Motorola (NYSE:MOT) in the launch deployment of its third generation (3G) network in Spain. Commercial service is scheduled for August 2001. It is the second 3G announcement that Motorola has made since Oct. 17.

Telefonica has also awarded Motorola the contract to supply General Packet Radio Service (GPRS) high-speed mobile data services on the Movistar GSM network. Commercial launch of the GPRS core network, enabled by Motorola and strategic alliance partner Cisco Systems, Inc. (NASDAQ:CSCO), is expected by the end of this year.

The European member of the IMT2000 family of third generation (3G) cellular mobile standards is known as UMTS - Universal Mobile Telecommunications System.

The introduction of UMTS will enable Telefonica's customers to enjoy interactive services delivered to their 3G terminal of choice whenever, wherever and however required. Combining voice, video and data, 3G technologies will transform the Internet into a true mobile resource. Motorola, through its strategic alliance with Cisco, is developing a common, IP-based architecture designed to integrate voice, data and multimedia communications networks.

The awards further strengthen the successful partnership between Telefonica and Motorola. Motorola has supplied Telefonica's mobile network solutions since 1990. This year the two companies have already announced a contract for the first nationwide TETRA infrastructure contract for commercial deployment in Spain and the establishment of a Joint Applications Development Centre in Spain to facilitate the commercial availability of consumer applications for both GPRS and third generation networks.

Telefonica will launch its GPRS service with Motorola's Timeport™ 260 phones - the world's first GSM tri-band GPRS handsets.

Gene Delaney, Motorola senior vice president and general manager of the Telecom Carriers Solutions Group, said: "Telefonica and Motorola have worked together from analogue TACS through to GSM. We are now implementing the full end-to-end wireless Internet GPRS solution in preparation for the anticipated growth of the mobile data market, and with Motorola's Aspira™ GPRS in place we can facilitate a seamless migration to third generation services next year. With the development of key applications in line with the network availability, we look forward to working with Telefonica to bring a thoroughly desirable service to the market."


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