Telefonica and eBay® Launch First Global App Deal

Telefonica’s O2 customers in the UK will be first to have the eBay app ‘ready to go’

Mobile access to eBay’s online marketplace will now be put straight into the hands of millions of people, thanks to a unique agreement between eBay and Telefonica. Under the terms of the deal, eBay will work with Telefonica to make its mobile shopping experience available on most smart phones and feature phones sold by the company via its O2 brand in the UK.

This is the first mobile pre-load deal agreed by eBay anywhere in the world, and the first time Telefonica has selected an app to make available to its O2 smart and feature phone customers across the board. eBay’s mobile app is one of the most popular shopping destinations for O2’s customers who are already responsible for a significant proportion of eBay’s UK mobile traffic. O2 customers in the UK will be the first to benefit from the arrangement, but eBay’s mobile shopping experience is expected to roll out to other Telefonica markets worldwide.

Starting later this year the eBay mobile app icon or a link to the eBay mobile site will appear on either the home page or two subsequent pages of most Android™, Windows® Phone 7, Symbian, RIM and bada devices sold by O2 in the UK over the next two years. The company will work with device manufacturers to pre-install the application.

eBay is a leader in m-commerce, having generated nearly $2bn of mobile sales in 2010, which is expected to double to $4bn in 2011. The UK has been the fastest adopter of m-commerce, with more Brits shopping through the eBay app than anywhere else in Europe. At the height of the holiday shopping season in December, 10 percent of eBay UK’s entire sales volume was transacted through mobile.

With hundreds of thousands of applications available across the main mobile operating systems, app discovery is becoming essential for brands and developers. Through deals like this Telefonica can provide an added value service to brands looking to market their applications to O2’s 22 million customer base in the UK.

Glyn Povah, Head of Content at Telefonica O2 Europe said, “Deals like this are great for customers and great for brands. They allow us to bring our customers best-of-breed content & services from the brands they know and love, while also helping brands get stand out in the increasingly cluttered app marketplace.”

Steve Yankovich, Vice President of Mobile, eBay said, “With smart phones now outselling PCs, the future of shopping for our customers is mobile. Today’s deal means that O2’s 22 million customers will find it even easier to access the world’s largest marketplace wherever they are. We will continue to invest in mobile technology and work with partners to extend our market-leading position in m-commerce, and to give customers the shopping experience they demand.”

Notes to Editors:

About Telefonica:

Telefonica is one of the world’s largest telecommunications operators by market capitalisation. Its activities are centered mainly on the fixed and mobile telephony businesses, while its broadband business is the key growth driver underpinning both. It has presence in 25 countries and has a global customer base of 280 million. Telefonica’s growth strategy is focused on the markets in which it has a strong foothold: Spain, Europe and Latin America. Telefonica is a 100% private sector company with its shares listed in Madrid and other stock exchanges and more than 1.5 million individual shareholders.

About eBay Inc. Mobile

eBay (Nasdaq:EBAY) launched its first application for the iPhone in July 2008 and has since become a leader in mobile commerce. Its core iPhone application, which is available free via iTunes® in eight languages and 190 countries, has been downloaded more than 15 million times and allows users to fully browse and buy without leaving the application. The eBay app for the iPad™ debuted in the top ten most downloaded free iPad apps in the iTunes Store and delivers a dramatically different, visually compelling shopping experience to browse and purchase the vast selection of products available on eBay. eBay’s suite of mobile apps, including Selling, Classifieds, StubHub and Deals, make selling and buying possible virtually anywhere, anytime. For more information on eBay mobile, visit

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Forward Looking Statement

This announcement contains forward-looking statements relating to the future performance of eBay’s businesses that are based on its current expectations, forecasts and assumptions. These statements include, but are not limited to, statements regarding plans for eBay’s mobile applications and future growth in mobile commerce. Those statements involve risks and uncertainties, and actual results may differ materially from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, consumer acceptance and use of eBay’s mobile applications.