ČESKÝ TELECOM EARMARKS 150 MILLION KORUNA FOR THE DEVELOPMENT OF BROADBAND INTERNET IN THE CZECH REPUBLIC

24.4.2006

ČESKÝ TELECOM, a member of the Telefónica Group, has decided to invest another 150 million koruna into the development of broadband connections in the Czech Republic. It will designate these resources towards the constructions of new technological components in its network. A parallel investment should provide higher quality and faster connections for schools, libraries and other public facilities, even in the remotest parts of the country.

The main objective of ČESKÝ TELECOM’s investment is to expand the availability of ADSL-based services for the population and to increase the number of localities that have access to high-speed Internet. “We want the penetration of broadband Internet to reach 98% in the Czech Republic as soon as possible,” said Jaime Smith Basterra, President and CEO, ČESKÝ TELECOM.

The 150 million koruna investment should be allocated specifically for the construction of new interconnecting components in the network, so-called DSLAMs. The biggest Czech telecommunications operator is therefore contributing, from its own resources, to the fulfilment of the objectives of a project to which it is committed in co-operation with the Ministry of Culture, the Ministry of Informatics and the Ministry of Education, Youth and Sports of the Czech Republic. This project aims to build a comprehensive republic-wide network of broadband Internet access.

According to the official schedule, the last school or library to be connected should get its connectivity on October 15, 2006. However, connections will be available in a considerable number of localities by as early as the holidays. In comparison with 2005, when nearly 1 200 DSLAMs were erected, this singular project will make the most of authorised internal and external human resources as it aims to build 700 DSLAMs during a five-month period.

“In this phase of development, we also want to provide broadband Internet for those small towns and villages with schools that have yet to acquire high-speed connections, even through alternative technology. We are trying to provide these areas with the fastest speeds, ideally 4 Mb/s,” says Mr. Smith.

ČESKÝ TELECOM’s administration expects that the total amount required for the construction of a complete network will be several times greater than the latest expectation of 150 million koruna. In addition to this investment, which, for subscribers, will mean considerably widespread accessibility and improved connection parameters, it will also be important to strengthen the clarity of the backbone network itself.

For further information, please contact:
MARTIN ŽABKA
Press Spokesman
Tel: +420 271 463 359
Fax: +420 271 469 896

e-mail: tiskovy.odbor@ct.cz

ČESKÝ TELECOM, a. s., a member of the Telefónica Group, is the leading telecommunications company in the Czech Republic. Through its subsidiary company Eurotel Praha, spol. s r.o. , it also has a significant presence in the Czech mobile services market. Further information about the firm and the services it offers is available at www.telecom.cz , which was rated as BestWeb 2003 in the WebTop100 survey.

Signum Temporis has consistently awarded ČESKÝ TELECOM for being one of the domestic capital market's most transparent firms in terms of providing information. Based on an open vote of specialists, members of the press and a nine-member committee, ČESKÝ TELECOM placed first in 2003, just as it did in 2001.

ČESKÝ TELECOM ranks among the most prominent firms on the Czech capital market in terms of capitalization and trading volumes. Its shares are also traded on the London Stock Exchange in the form of GDRs. ČESKÝ TELECOM's credit rating is the highest a Czech corporation can receive from top international rating agencies.