debentures redemption

Telefonica SA
08 October 2004



Telefonica S.A., as provided in article 82 of the Spanish Securities Market Act
(Ley del Mercado de Valores), hereby in writing


                                   REPORTS


That further to information published on September 28th, 2004, Telefonica, S.A.
states that publication in the Official Gazette of the Spanish Companies
Registry (Boletin Oficial del Registro Mercantil Espanol) of the announcement
for the redemption of debentures envisaged in the Prospectus for the Debentures
Issue 'October 2004 C' (ISIN code ES0278430907), registered with the Spanish
National Securities Market Commission (Comision Nacional del Mercado de Valores)
on September 30th, 1993, shall not be possible. This announcement shall,
however, be published in a newspaper with national coverage in Spain.



Madrid, October 8th,  2004






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