TDE.L Regulatory News (TDE)

Telefónica acquired a frequency spectrumkey for extending its LTE network across thewhole Czech Republic

November 19, 2013

Telefónica Czech Republic has acquired 2 blocks in the attractive 800 MHz band, in the spectrum auction organised by the Czech Telecommunication Office (CTO). The company has further acquired 3 blocks in the in the 1'800 MHz band and 4 blocks in the in the 2'600 MHz band. The total cost of the frequencies was CZK 2.8 billion.

Summary of frequency blocks acquired by Telefónica:

Telefónica was the first operator to have launched LTE in the Czech Republic in June 2012, by covering Jesenice near Prague and also its brand shop at Chodov. The coverage has been extended during summer 2013 to select areas in Prague and also Brno has been covered by O2 LTE since October.

Luis Malvido, the company CEO, commented: "Frequency allocations acquired by Telefónica Czech Republic in the 800, 1'800 and 2'600 MHz will enable fast extension of the 4th generation networks (LTE) across the whole Czech Republic and will allow availability of high speed internet connection even in those regions, where the availability is currently limited."

Telefónica Czech Republic will now participate in the next auction phase, during which specific blocks of frequencies will be allocated within the frequency bands. Implementation plans will be devised by the company based on the final result of the auction and the company will publish the plans after the licence for usage of the specific blocks will be granted.

During the implementation, Telefónica Czech Republic will meet the conditions set by the CTO for the auction.

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Telefónica Czech Republic is a major integrated operator in the Czech Republic. It is now operating almost seven million lines, both fixed and mobile, making it one of the world's leading providers of fully converged services. The organization offers the most comprehensive portfolio of voice and data services in this country. It is paying special attention to the exploitation of the growth potential, particularly in the data and Internet sector. Telefónica Czech Republic operates the largest fixed and mobile network including a 3rd generation network, CDMA (for data), and UMTS, enabling voice, data and video transmission. Telefónica Czech Republic is also a notable provider of ICT services.

Telefónica is one of the world's largest telecommunications operators by market capitalisation. Its activities are centred mainly on the fixed and mobile telephony businesses, while its broadband business is the key growth driver underpinning both. It operates in 25 countries and has a global customer base of over 300 million. Telefónica's growth strategy is focused on the markets in which it has a strong foothold: Europe and Latin America. Telefónica is a 100% private sector company with its shares listed in Madrid and other stock exchanges and more than 1.5 million individual shareholders.