Telefónica O2 Czech Republic

Performance highlights for 3 months ended 30 September 2008

•  Telefónica O2 Czech Republic group total revenue grew by 5.1% in the third quarter
• Telefónica O2 Czech Republic mobile ARPU €10.2
• OIBDA amounted to €5886 million for the first nine months of 2008
• Customers: 8.4million fixed and mobile customers (incl. Slovakian accesses).
  

Telefónica O2 Czech Republic third quarter operating review
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O2 in the Czech Republic
Telefónica O2 Czech Republic comprises the former Ceský Telecom, a.s., Eurotel Praha, spol. s r. o. and several other companies specialising in the provision of telecommunications or related services. This strong telecommunications group, the leader in the Czech Republic, offers a complete portfolio of voice and data services of fixed line and mobile technologies.  

On March 1, 2005, the company announced its intention to integrate Eurotel Praha, spol. s r.o., and Ceský Telecom, a.s., into a new telecommunications player, Telefónica O2 Czech Republic, a.s. designed to benefit from the know-how and expertise of Eurotel, Ceský Telecom, Telefónica, and O2. The integrated company will provide both immediate and long-term benefits to its customers.  

On 1 September 2006, the Czech Republic business changed its brand to O2, endorsed by the logo of parent company Telefónica, for all of its fixed and mobile services, replacing the existing Cesky Telecom and Eurotel brands. This ongoing re-branding programme is the largest of its kind in the Czech Republic. At the same time, a range of new products was launched under the O2 brand, including O2 TV, an IPTV service based on the Imagenio platform developed by Telefónica. With the unified brand of O2 the Czech business is well positioned to offer customers solutions for all of their telecommunications needs.  

Both individual customers and the Czech Information Society as a whole will benefit from innovative, integrated telecommunications services. Telefónica O2 Czech Republic, a.s. will develop a distinctive value proposition for the benefit of all its customers. Converged mobile-fixed products and services will be among the first offerings available to individuals, families and small businesses, while corporations will be provided with integrated business solutions. Customers will also have the chance to purchase all these products and market-leading content from a single point of sale, to obtain assistance from a single point of customer care, and to have the option of receiving a single bill. 

New bundles launched in Czech Republic
The Czech Republic business launched a new TRIO bundle, including DSL, calls and O2 TV. Customers get a 2 Mbps Internet connection for free for 6 months plus 800 free calling minutes per month when they order O2 TV. There is significant customer interest in O2 Trio and O2 Duo services, with close to 100,000 customers using these products.  

Telefónica O2 Czech Republic acquires DELTAX Systems
During 2007, Telefónica O2 Czech Republic announced that it had acquired 100% of the shares in DELTAX Systems a.s., one of the top ten system integrators in the Czech Republic. The transaction is subject to the approval of the Office for the Protection of Competition. 

DELTAX has been operating in the Czech market since 1992, with current turnover in excess of CZK 300 million. The company has a workforce of more over 150 employees, and key clients include top Czech companies and government agencies. DELTAX has a long-term track record of a successful co-operation with Telefónica O2 Czech Republic on several major projects.  

For further information: http://www.cz.o2.com/

O2 launched in Slovakia
On 2 February 2007, Telefónica O2 Slovakia launched its commercial service. In the first 12 days over 110,000 active customers were acquired. The initial offer, called "O2 Jednotky", includes prepaid on-net calls for SKK 2 and SKK 8.50 for calls to all other networks, and the Czech Republic, at anytime of the day. From 2 February until 31 March all customers will receive a 100% credit bonus when they top up for the first time. Top up vouchers are available with a value of SKK 250 and 350 (valid for 3 months), as well as SKK 550 and 950 (valid for 6 months). Vouchers will be sold through a broad distribution network of more than two thousand points of sale located across Slovakia. 

For further information: http://www.sk.o2.com/