SOME ALTERNATIVE OPERATORS HAVENT COME TO AGREEMENT YET ON NEW PRICES FOR DIAL-UP INTERNET CONNECTIONS
31.5.2006
Some other local operators (OLO) have not yet accepted a potential agreement that would allow for the preservation of low prices for their customers. Despite continuously dropping end user rates for dial-up Internet connections, OLOs are demanding that the rate the ČTU set three years ago remain the same. In the field of voice services, for instance, the connection rate is considerably lower than that currently being charged for dial-up connectivity.
“We are surprised that even after the end of regulation and despite high profitability the OLOs are choosing their high profits at the expense of their end customers,” stated Martin Žabka, ČESKÝ TELECOM Press Spokesman. “To this day ČESKÝ TELECOM has been the only firm on the market that has recorded a loss as a result of providing these services. Nevertheless, it has suggested a current rate that is several times higher than the minimum rate that the ČTU proposed last year,” added Žabka. The extraordinary profitability for OLOs is also proven by their over 80% share in overall dial-up operation.
ČESKÝ TELECOM is thus unfortunately forced to make provisions for the rate that the alternative operators are demanding in the end user rate for Internet connections through termination in the case of connecting through these operators.The existing price will be maintained for customers who connect through ČESKÝ TELECOM’s network. All operators also have the opportunity to provide their services in the scope of regulated organizational models (Relevant market no. 8 – CEN/8/04.2006-16), where they set the end rate themselves. They can also use the FRIACO (Flat Rate Internet Access Call Origination) model for flat rate payment.
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., 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.
About Telefónica
Telefónica is one of the largest telecommunications companies in the world in terms of market capitalisation. Its activities are centered mainly on the fixed and mobile telephony businesses with broadband as the key tool for the development of both.
The company has a significant presence in 19 countries and a customer base that amounts more than 180 million accesses around the world. Telefónica has a strong presence in Latin America, where the company focuses an important part of its growth strategy.
Telefónica is a 100% listed company, with more than 1.5 million direct shareholders. Its share capital currently comprises 4,921,130,397 ordinary shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao and Valencia) and on those in London, Paris, Frankfurt, Tokyo, New York, Lima, Buenos Aires and São Paulo.
