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UK IP Specialist Set to Steal Corporate VPN Market With Offer of Own Nationwide IP Network, Tailored Solutions and Unrivalled Price Performance

London, October 7th, 2003 - Newly branded IP specialist, Telefónica UK Limited, part of one of the world's largest telecommunication providers, today formally announced its entrance into the UK corporate IP VPN services market. In addition to providing corporate customers with extensive national network coverage through its own UK network infrastructure, Telefónica UK will offer customers truly global reach by acting as the gateway to Telefónica's Global IP Network, which provides services in more than 70 countries.

With immediate effect, Telefónica UK is ramping-up direct sales and marketing efforts to target UK headquartered corporate organisations requiring more cost-effective, modular, scalable and secure approaches to VPN and security service provision. Now that IP VPN platforms have been proven as robust and secure enough to meet enterprise network requirements, the rising market demand for deploying them as the optimum means of connecting distributed offices and mobile workforces will enable Telefónica UK to build a 'significant' business by the end of 2004.

Until now Telefónica UK operated in this country for three years under the name of Limited and focused primarily on delivering wholesale DSL and managed dial-in network services to ISPs. While continuing to meet demand from UK ISPs and wholesale users of broadband access services, Telefónica UK now intends to leverage both its expertise in managed IP solutions and the world-renowned Telefónica brand to woo UK-based corporate enterprises. This strategy has worked effectively in Germany where Telefónica Deutschland GmbH has successfully utilised its IP network and technological innovation to win corporate accounts including Toyota, Mercedes-Benz, Logica, Adecco, Xerox and Zurich, media companies such as AOL and Bertelsmann, as well as numerous ISPs.

"Telefónica UK's direct ownership of a nationwide MPLS-enabled IP backbone will prove very attractive to corporate enterprises." said Tony Shields, Sales and Marketing Director, Telefónica UK Limited. "But more than this, they will benefit from how we use it to their advantage to deliver low-cost, highly tailored enterprise-class VPN solutions. They will quickly recognise that they do not have to make do with the 'one size fits all' approach often favoured by other IP VPN vendors."

Added Shields, "We are able to differentiate ourselves from the broader-based competition through our niche focus, innovation, and technical competence in delivering fully managed SLA-driven IP network services. At the same time, all customers can be assured peace of mind that comes from partnering a service provider that is backed by the organisational stature and resources of the Telefónica Group."

Telefónica UK customers utilise its products and services as key enablers to drive their corporate strategy and competitive development. Organisations that have deployed Telefónica managed VPN solutions enjoy a range of business benefits including a reduction of both tangible and intangible network operating costs, internal operational efficiencies and improvements to the network's capabilities. These result in immediate bottom line financial improvements and very short return on investment cycles.

Telefónica UK offers modular and scalable VPN solutions for deploying secure enterprise networks based on IP to meet all Wide Area, Internet, Remote and Roaming User Access business communications needs. For Wide Area Network and Remote Access connectivity a range of network access is supported including Ethernet, private circuits, ISDN and ADSL. Additional and complementary services, such as Voice over IP (VOIP), corporate mail, news, intranet/extranet facilities and various application and security features are also available. When creating any VPN solution, Telefónica UK ensures the customer's current infrastructure and applications are taken into account. This may include integration with existing VPN infrastructure based on alternative platforms such as Frame Relay.

To support corporate requirements for continuous network availability and security, the company's Network Control Centre (NCC) and nationwide support operation will provide 24/7 centralised monitoring of all infrastructures associated with the services to ensure uninterrupted management of the network and its components. In addition, the VPN employs strong encryption, intrusion detection, comprehensive firewalling and tunnelling.

About Telefónica UK Limited

Telefónica UK Limited is part of the Telefónica Group, one of the world's largest globally active telecommunication companies. In the UK Telefónica specialises in outsourced and fully managed IP solutions to corporate customers, and wholesale managed narrowband and broadband services to ISPs. The UK network provides national coverage with 28 points of access. This distributed architecture allows for maximum flexibility and a high degree of resilience. The multi-redundant backbone uses best of class technology and is MPLS enabled, supporting a full range of converged IP services. Stability, experience, quality, and above all global presence guarantee our background: Telefónica UK Limited is a subsidiary of Telefónica S.A., which is the second largest, stock exchange listed European provider.

Telefónica S.A. offers a complete range of telecommunications services, including fixed-line telephony, mobile communications, data transfer and value added services, business applications, Internet access and Customer Relationship Management (CRM). Over 80 million customers in more than 50 countries use Telefónica's services. Key markets are Argentina, Brazil, Chile, Columbia, El Salvador, Germany, Guatemala, Italy, Mexico, Morocco, Peru, Puerto Rico, United Kingdom, USA and Venezuela.

For further information and sales inquiries:

Telefónica UK Contact

Tel: +44 (0) 845 450 2540

Email :

PR Contact

NigelParker/Beky Hughes/Becky Kiely


Tel: +44 1494 434 434


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