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NEC CORPORATION AND TELEFÓNICA TO COLLABORATE IN THE DEVELOPMENT OF NETWORK VIRTUALISATION This agreement enables both companies to leverage their strengths and start developing a competitive virtualised network as early as the spring

*** For immediate use February 21, 2013

Tokyo and Madrid, February 21st, 2013 - NEC Corporation (NEC; TSE: 6701), a leader in the integration of IT and network technologies, and Telefónica, a leading provider of integrated communication solutions, announced today an agreement to collaborate in the development of network virtualisation based on SDN (Software-Defined Networking) and NFV (Network Functions Virtualisation) technologies.

Telefónica and NEC Corporation will bring together their technological capabilities and collaborate in a migration scenario study to virtualise the current IP edge network elements. By minimizing the dependence on hardware, virtualisation will bring considerable benefits both to the management of the network and, more importantly, to the end customer. The network's management will become simple, flexible and enable accelerated service deployment and time to market, while enhancing the customer's connectivity experience.

Network virtualisation with SDN and NFV technologies that combine the IP edge components of networks into one single virtual infrastructure is a key element of Telefonica's network strategy. This collaboration will ensure that virtual network functions are portable between different hardware platforms. NEC and Telefónica have produced the first real case study of virtualised EPC (Evolved Packet Core) and will showcase this technology at Mobile World Congress 2013, Barcelona, February 25 - 28, Hall 3, Stand 3B4.

Providing a single pointed infrastructure model to manage all the aspects of a virtualised network is consistent with Telefónica's global strategy to further develop its smart seamless network capabilities. By enabling advanced network automation, rapid delivery of network services and easy application of policies across the network, SDN plays an important role to seamlessly interconnect all the virtual network functions.

The agreement announced today enables both companies to leverage their proven technological strengths and to develop a competitive virtualised network system much faster. As a result, in the first half of 2013, Telefónica and NEC expect to start validating the equipment being tested, including NFV which comprehends virtualised EPC (the core network of the LTE system).

"NEC has proven capabilities in delivering innovative SDN and NFV solutions to Telefónica as part of transforming their networks into a more efficient and scalable "virtualised carrier-grade" solution," said Mr. Shunichiro Tejima, Senior Vice-President, NEC Corporation. "NEC already introduced the world's first commercialized OpenFlow system, an award-winning solution for data center control virtualisation."

"A flexible and efficient smart network goes hand-in- hand with enhanced customer experience. For this reason, network virtualisation is a key element within our strategy to innovate data center management and to deliver the best seamless connectivity experience. We are delighted to have NEC on board with us as they are an important partner to develop a set of products based on a unique integration of IT and Networks," said Mr. Enrique Blanco, Telefónica Global CTO.


About NEC Corporation
NEC Corporation is a leader in the integration of IT and network technologies that benefit businesses and people around the world. By providing a combination of products and solutions that cross utilize the company's experience and global resources, NEC's advanced technologies meet the complex and ever-changing needs of its customers. NEC brings more than 100 years of expertise in technological innovation to empower people, businesses and society. For more information, visit NEC at
NEC is a registered trademark of NEC Corporation. All Rights Reserved. Other product or service marks mentioned herein are the trademarks of their respective owners. (C)2013 NEC Corporation.

About Telefónica
Telefónica is one of the largest telecommunications companies in the world in terms of market capitalisation and number of customers. From this outstanding position in the industry, and with its mobile, fixed and broadband businesses as the key drivers of its growth, Telefónica has focused its strategy on becoming a leading company in the digital world.  The company has a significant presence in 24 countries and a customer base that amounts close to 314 million accesses around the world. Telefónica has a strong presence in Spain, Europe and Latin America, where the company focuses an important part of its growth strategy. Telefónica is a 100% listed company, with more than 1.5 million direct shareholders. Its share capital currently comprises 4.551.024.586 ordinary shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao and Valencia) and on those in London, New York, Lima, and Buenos Aires. For more information, visit:

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Takehiko Kato
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