TDE.L Regulatory News (TDE)

30 May 2007 09:30

Telefonica O2 Czech Republic, A.S.30 May 2007 Press Release Postpaid without any contract and commitment, with subsidized telephones andcheck of consumption from O2 Bratislava, May 30, 2007 O2 Volnost is the first postpaid program in Slovakia, for which customers arenot obliged to sign contracts, to take a commitment for certain time period andcan acquire subsidized telephones. Plus each customer can according to his/herown decision set a limit for calls, free of charge and switch at anytime fromthe lower program to the higher one and vice versa as well as transfer freeminutes. Telefonica O2 Slovakia is launching its own offer of postpaid serviceswith a program, in which customers can tailor all services according to theirown needs. "O2 Volnost is a modern and innovative concept of a flat rate program, whichreflects the needs of the Slovak customers. It is designed to give them maximumflexibility in setting the parameters tailored to their respective needs as wellas total control over their monthly spending. The program contains an attractiveoffer of cell- phones even without the necessity for signing a contract andcommitment for a certain time period,"said the General Director of Telefonica O2Slovakia, Juraj Sedivy. O2 Volnost is designated for all those, who feel the need for having theirspending under tight control, while maintaining flexibility and no-commitment.For instance, it could be useful for families that want to keep their telephonebills under tight control. A flat rate without a contract and commitment is sureto please young people with no desire to commit themselves over a longer periodof time. Company owners will surely appreciate the flexibility of the flat rate. This program is divided into three levels and customers can select from themaccording to their own needs to make calls. They will set their own limit, whichif necessary can be increased or reduced and all that without any fees attached.Plus they can select a subsidized but unlocked telephone without the two-yearcommitment. "This new addition in our portfolio is another step made by Telefonica O2Slovakia in securing the provision of modern services featuring a transparentand easy price structure. Our goal is to liberate our customer from a pointlessadministrative burden. We want to get closer to him, hence at sales we use thedistribution channels, which are closest to his heart," emphasized Juraj Sedivy. In the program O2 Volnost 250, the postpaid SKK 250 includes 35 free minutes and when calling customers will not transgress the limit of SKK 500. In the programO2 Volnost 500, the postpaid SKK l. 500 includes 75 free minutes and whencalling customers would not go above the limit of SKK 1.000. The program O2Volnost 835 in the monthly postpaid SKK 835 includes 140 free minutes and thelimit for calls represents SKK 1.500. Customers can modify their limit for callswithout any restrictions and anytime and without any fees attached switch to ahigher or lower tariff. Should prepaid minutes not be used, these would betransferred into the following month. O2 Jednotky after using the prepaidminutes can call in the own network for SKK 2. The customers could obtain the O2 Volnost program via these sales points: - O2 own sales points- Hotline 0800 02 02 02- e-shop: www.o2shop.sk- a broad distribution network of more than 3 000 sales points (e.g. Tesco, Shell, Slovenska posta network, etc.) Appendix no.1: • Summary of the program O2 Volnost Appendix no. 2: • Offer of subsidized telephones Contact for additional information: HANA HEJSKOVATelefonica O2 Slovakia s.r.o.hana.hejskova@o2.comTel.: +421 949 22 00 22Tel: +420 602 17 16 51 JURAJ PUCHY AMI Communications Slovakiajuraj.puchy@amic.skTel: +421 2 4341 5709Tel: +421 918 604 538 About the company Telefonica O2 Slovakia, s.r.o. Telefonica O2 Slovakia entered the Slovak market of mobile operators on thebasis of the decision issued by the selection committee of the TelecommunicationAuthority of the SR as of 25.8.2006. The license includes the rights to use thefrequencies GSM 900 MHz, GSM 1800 MHz, UMTS and 28/29 GHz for the period of 20years for the purpose of providing telecommunication services in the SlovakRepublic. The company launched its commercial operation on 2.2.2007. In theinitial phase it provides services on the basis of national roaming, however, inparallel it is intensively building-up its own network. The company is graduallyintroducing the offer for the whole spectrum of customers. Within theinternational group Telefonica, Telefonica O2 Slovakia belongs to the groupTelefonica O2 Europe. For all its marketing activities in the Slovak Republicthe company will use the brand-name O2. About the company Telefonica O2 Europe The company O2 consists of the mobile networks operators in Great Britain andIreland, and also of integrated operators of fixed and mobile networks inGermany and the Czech Republic. All these operators present themselves to theirlocal customers under the brand-name O2. Telefonica O2 is the holder of 50%share in the joint stock companies Tesco Mobile in Great Britain and TchiboMobilfunk in Germany; At the same time it is also 100% holder of the company Be,the leader in providing broad band services in Great Britain. To the group alsobelongs the operator of fixed and mobile services on the island Man - thecompany Manx Telecom. Telefonica O2 Europe, belonging to the group Telefonica,has its headquarters in Slough in Great Britain, it has 39 million customers infixed and mobile networks. About the company Telefonica S.A. Telefonica is, from the point of view of the market capitalization, one of thelargest telecommunication companies in the world. Its business activities aremainly aimed at fixed and mobile telephone markets, while the key tool fordevelopment of both it considers the broad band connection. The company extensively operates in 23 countries where it has a 206 millioncustomer base. All the stock of the company Telefonica is quoted in the stock exchange, whilemore than 1.5 million of direct shareholders are sharing them. At present thebasic capital is divided among 4,921, 130,397 ordinary shares traded in theSpanish stock exchange (Madrid, Barcelona, Bilbao and Valencia) and in the stockexchanges of London, Paris, Frankfurt, Tokio, New York, Lime, Buenos Aires andSao Paulo. Enclosure no. 1: Summary of program O2 Volnost Monthly Free Within O2 Outside Call Possible Sales minutes the O2 limit raise of the price flat rate network network SMS MMS limit O2 Volnost 250 250 Sk 35 6,70 7,90 SMS within 500 Sk Up to 700 Sk 500 Sk O2: 210 Sk excl VAT Sk/min Sk / min 2,50 Sk Up to 800 Sk 2,10 excl Up to 1000 Sk 5,60 Sk 6,60 Sk VAT excl VAT excl VAT SMS other O2 Volnost 500 500 Sk 75 5,70 7,90 operators: 1,000 Sk Up to 1300 Sk 1000 Sk 420 Sk excl VAT Sk/min Sk/min 3 Sk Up to 1500 Sk 2,50 excl Up to 2000 Sk VAT 4,80 Sk 6,60 Sk excl VAT exl VAT O2 Volnost 835 835 Sk 140 4,80 7,50 MMS: 1,500 Sk Up to 2000 Sk 1500 Sk 702 Sk excl VAT Sk/min Sk/min 9 Sk Up to 2500 Sk Up to 3000 Sk 4 Sk 6,30 Sk 7,60 excl excl VAT VAT excl VAT Price of calls is identical at any hour and any day of the week including VAT. In case customers reached their limit for calls for the given program and wishto call more, they can temporarily or permanently increase their credit. Fortemporarily increase, they can do so using vouchers with value of SKK 250, 350,550, or 950 respectively. Permanent increase for the tariff O2 Volnost 250 ispossible for values of SKK 700, 800 or 1.000 respectively. For the tariff O2Volnost 500 these are the values SKK 1,300, SKK 1,500 or SKK 2,000 and for thetariff O2 Volnost 835 this limit can be increased to SKK 2,000, SKK 2,500 or SKK3,000. O2 acquired thanks to offer of prepaid services until now more than 400thousand active customers. Permanent increase of the limit for calls can be performed by customers using abank transfer or money order at the post office. Into the account number theywould transfer the difference between the present limit for calls and the wishedlimit for calls and as a variable symbol they will indicate their phone number.After successful transaction O2 will inform in the form of SMS message about thenew amount for the limit for calls. Customers can without any fee switch to a higher or lower tariff. In case of aswitch to a higher tariff, customers have to call the customer line 0949 949949and using a bank transfer or at the post office they have to pay the differencebetween the purchase price of individual tariffs. When switching to a lowertariff, the difference in the purchase price would be changed to a single creditfor calls. Under the same conditions, a switch would be possible also betweenthe program O2 Volnost and O2 Narovinu. This program can be activated by customers purchasing SIM cards with the serviceO2 Volnost and selecting one of the three levels. Customers should call the freenumber 949, indicate to the operator their name and address. From this momenton, customers should be temporarily activated and can use all services up to theamount of their limit for calls. At latest within 14 days they would receivetheir identification code. They have to send it from their mobile telephone inthe form of an SMS message to the number 99222, or they have to call the freenumber 949. From this moment on, O2 will send regular monthly invoices, with themaximum amount of the amount of the selected limit for calls. If customers donot send their identification code by the end of the first settlement period,services would be limited only to receive calls with the exception of emergencycalls and calling the number 949. If they do not send the code even until theend of the second settlement period, their SIM cards after using the limit forcalls would be switched to prepaid services in the program O2 Narovinu. Program O2 Volnost can be purchased in brand O2 shops, in O2 Shop atwww.o2shop.sk at the customer line 0800 020202, or within a broad distributionnetwork of more than 3.000 point of sales. Enclosure no.2: Offer of subsidized telephones Customers can acquire subsidized telephones if they prepay 7-times the monthlypostpaid for the tariff O2 Volnost 500, or 6-times the monthly postpaid for thetariff O2 Volnost 835. This prepaid amount will be returned to customers eachmonth in the form of a 100% discount for the monthly fee. Prices of subsidized telephones for the tariff O2 Volnost 835: Samsung X680 forSKK 1; Motorola W375 for SKK 1; Nokia 6070 for SKK 1; Samsung X530 for SKK 1;Sony Ericsson K7501 for SKK 949; Motorola MOTORIZR Z3 for SKK 3.949; LG KG 800for SKK 4.949 and Nokia N73 for SKK 8.899. Prices for subsidized telephones for the tariff O2 Volnost 500: Samsung X680 forSKK 949; Motorola W375 for SKK 1; Nokia 6070 for SKK 494 Sk; Samsung X530 forSKK 949; Sony Ericsson K7501 for SKK 1.949; Motorola MOTORIZR Z3 for SKK 4.949;LG KG 800 for SKK 5.949 and Nokia N73 for SKK 9.899. For the tariff O2 Volnost 250, no subsidized telephones are available. This information is provided by RNS The company news service from the London Stock Exchange