TDE.L Regulatory News (TDE)

28 Jun 2007 13:00

Telefonica O2 Czech Republic, A.S.28 June 2007 Press release O2TV digital television offers the Czech Television channel in HD quality Date: 28. 06. 2007 From July 2, 2007, Telefonica O2 Czech Republic will be the first operator inthe country to offer terrestrial broadcasting of the Czech Television channel inHigh Definition (HD) quality. It will thus be possible to receive it throughO2TV digital television, which is currently being used by over 36,000 customers,as well as through Digital Video Broadcasting - Terrestrial (DVB-T). O2 is offering Czech Television (ET1) in HD quality. The channel itself alsotook part in the development and implementation of high-quality broadcasting.The complete programming schedule will be broadcast in HD quality; part of thecontent will be converted to higher quality and part will be presented directlyin HD format, using modern recording equipment with HD technology. "The switch to HD transmission is one of the most pronounced trends of recentyears. From technical, economic, and legislative perspectives, however,implementation of such sophisticated technology was extremely difficult and Iwould like to thank all those who participated in the accomplishment of thistask. For our customers it will be a huge qualitative shift, as well as moreproof that our company has taken a massive leap forward as the market leader oftechnical innovations," says Simon Burckhardt, Chief Consumer Marketing Officerof Telefonica O2 Czech Republic. The entire project ties in with the testing of HD broadcasting, which O2,together with Czech Television, conducted during autumn of last year in Brno,and which those attending the Invex trade fair were able to see for themselves.Unlike this limited operation, it will be possible to receive the currenttransmission through O2TV digital television, and, in localities with DVB-Tcoverage, through the digital multiplex of Telefonica O2. O2TV digital television has thus become the first service on the Czech marketthat provides viewers with the opportunity to watch shows in HD format. The objective of the project is primarily to test and tune the technicalparameters of the service before putting it into regular operation. Customerswho have set-top boxes from O2 will be able to receive the broadcasts. Over thenext few months, their firmware will be updated, enabling the signal to betransmitted in the 1080i standard to television sets. Technicians are alsosubjecting the service to intensive testing directly in O2 so that they maydetermine service accessibility; later on they will carry out remote updates ofall set-top boxes. In order to watch programs in HD format, it is necessary tohave a television set that is "HD ready". After the service has been adjusted accordingly and testing has been completed,a firmware upgrade for all set-top boxes will take place and the service will beintroduced into regular operation. Neither the temporary testing regime, nor theupdate of the new version of the software to television sets will affect thecustomers in any way, so they will be able to use all services without anyrestrictions. About HDTV HDTV is short for "High Definition TV" and it currently exists in numerousversions. O2 will provide the highest-level variant, which is referred to as1080i and offers the best balance of image quality and demands on thetransmission capacity. The maximum variant, 1080p has the same resolution, butdemands double the data flow and the difference in quality is practicallyindistinguishable to the human eye; furthermore, only a small percentage oftelevision sets support it. The 1080i variant means a native image format of 16:9 (widescreen) with a resolution of 1920 x 1080 and can be used on televisionsthat feature the "HD Ready" or "Full HD" logos. For a more effective imagetransmission, these televisions use compression algorithms whereas O2 uses themore advance MPEG-4 codec for transmission. The higher image quality isdramatically noticeable primarily on screens with higher surface areas. Thecurrent PAL standard offers a resolution of only 720 x 576 and thus providesonly 414,720 image points, while the 1080i format presents over two million onthe screen. Current testing broadcasts aim to tune the compression ratio forcoding images, stability of data flow during transmissions, and image quality onend-user devices correctly. About O2TV O2TV digital television offers dozens of television channels with digitalquality images and sound. Customers can choose from two basic channel packages:O2TV Zabava (24 channels of various subject matter) and O2TV Kino (four moviechannels for film buffs). Together with this, it is possible to order premiumchannel packages, such as O2TV Children Plus (channels especially for youngviewers), O2TV Documentary Plus (featuring prestigious documentary channels),and others. O2TV also offers the Videotheque - a virtual film rental shop that you canaccess from the comfort of your living room - and TV Archive - an archive ofseveral selected programs that remain viewable for up to seven days followingtheir original broadcast - as well as other functions like the Family Lock andthe TV Guide. Until August 31, 2007, customers get a 50% discount with the activation of theO2TV Zabava basic channel package, meaning they pay CZK 224 with VAT 1) / CZK273.50 with VAT off the regular price of this service. Activation of the O2TV service costs CZK 1.19 with VAT, just like the set-up ofthe required set-top box. Rental of the set-top box is only CZK 1.19 with VATper month. For further information, please contact:MARTIN ZABKASpokespersontel: + 420 271 463 359fax: + 420 271 469 896e-mail: public.relations.cz@o2.com http://www.cz.o2.com/ About Telefonica O2 Europe Telefonica O2 Europe comprises mobile network operators in the UK, and Irelandand Slovakia, along with integrated fixed/mobile businesses in Germany and theCzech Republic - all of which use 'O2' as their consumer brand. The companyrecently won a mobile licence in Slovakia, where it plans to launch service in2007. Telefonica O2 Europe also owns 50% of the Tesco Mobile and TchiboMobilfunk joint venture businesses in the UK and Germany respectively as well ashaving 100% ownership of Be, a leading UK fixed broadband provider. Inaddition, the group includes the Isle of Man fixed/mobile operator, ManxTelecom, and O2 Airwave, which supplies secure digital communications to theemergency services and other public safety organisations. Telefonica O2 Europe, part of the Telefonica group, is headquartered in Slough,UK, and has more than 37 million mobile and fixed customers. About Telefonica Telefonica is one of the largest telecommunications companies in the world interms of market capitalization. Its activities are centered mainly on fixed andmobile telephony, with broadband as the key tool for the development of both. The company has a significant presence in 23 countries and a customer base ofmore than 196 million worldwide. Telefonica is a 100% listed company, with in excess of 1.5 million directshareholders. Its share capital currently comprises 4,921,130,397 ordinaryshares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao andValencia) and on those in London, Paris, Frankfurt, Tokyo, New York, Lima,Buenos Aires and Sao Paulo. This information is provided by RNS The company news service from the London Stock Exchange