Each of the markets in which Telefónica currently operates has its own level of competition and growth rate. Consequently, following the reincorporation of Telefónica Moviles into Telefónica, the Executive Chairman, César Alierta, has been working to guarantee a vision of the market as a whole and to designate single individuals responsible for both fixed and mobile businesses, each defining strategies that are adapted to reality in each region, and seeking growth in earnings and profitability in each geographic area.

In order to take advantage of scale and go into greater depth in the customer focus, the Board of Directors, at its meeting in December 2007, approved the appointment of Julio Linares as the Company's Managing Director. This same vision has led to the creation of three Business Units, with the rank of Directorates-General of Telefónica S.A. (Telefónica España, Telefónica Europa and Telefónica Latin America), each overseeing the entire business; in other words, both fixed and mobile assets. These three regional business units report directly to the company's managing director and COO, Julio Linares.

The positions in these three regional Directorates-General have been filled as follows:

• Guillermo Ansaldo has been named General Manager of Telefónica España, in charge of both fixed and mobile telephony business in Spain.
• José María Álvarez-Pallete continues as General Manager of Telefónica Latin America, and is in charge of all of the current business of Telefónica International, and all of Telefónica's mobile operations in Latin America.
• Matthew Key, designated General Manager of Telefónica Europe, is now responsible for the business in the rest of Europe, including Telefónica O2's operations in the United Kingdom, Germany, and Ireland, and the assets in the Czech Republic.

Under this arrangement, the managing director, Julio Linares; the general manager for Finance and Corporate Development, Santiago Fernández Valbuena; and the two secretariats-general, the General Secretariat of Legal Matters and the Board (headed by Ramiro Sánchez de Lerín) and the Technical Secretariat of the President (directed by Luis Abril) report directly to Telefónica's president and CEO, César Alierta.

C.V. César Alierta	C.V. Julio Linares
C.V. Santiago Fdez. Valbuena	C.V. Guillermo Ansaldo
C.V. Matthew Key	C.V. J. M. Álvarez Pallete
C.V. Luis Abril