ČESKÝ TELECOM ACQUIRES ANOTHER LICENSE FOR TRANSMITTING DIGITAL TELEVISION

6.3.2006

ČESKÝ TELECOM, a.s., has acquired a license for the short-term experimental transmission of digital television (DVB-T) through its subsidiary company OMNICOM Praha, spol. s.r.o. In the scope of the pilot transmission, the operator will offer programs from the Óčko music station and TOP TV, it will also enable viewers to tune into Brno television station TVb 1.

"We received a 60-day license for experimental transmitting, which will begin as of today, March 6, 2006. This will last until the launch of regular digital broadcasting on the basis of a license regulation in multiplex C," stated Miroslav Hořejší, Deputy Executive Manager, OMNICOM.

Michal Žilka, Executive Director of Content Services and Business Development for ČESKÝ TELECOM, added: "While we are waiting for the license for regular commercial broadcasting in the DVB-T system we would like to be active by means of the pilot transmission. We would also like to test the quality of the transmission of the digital signal and of interactive applications, including those that have been newly prepared."

The greatest benefits of digital television include excellent picture and sound quality. The opportunity to receive more channels is also a major advantage. In connection with ČESKÝ TELECOM services, primary interactive possibilities will include on-line betting, voting, TV learning, TV government, TV banking, gaming, chat, interactive advertising, e-mail, SMS and much more.

The difference between the DVB-T (Digital Video Broadcasting - Terrestrial) system and an analogue system lies in the manner in which a television signal is transmitted. In the DVB-T system, the signal is relayed digitally over the course of the entire transmission (i.e. from the studio to television viewers).

It is possible to receive digital television broadcasts in locations covered by an existing antenna system. In order to receive a digital signal, a television receiver must be equipped with a decoder (to convert DVB-T to PAL). If it is not, it must be supplemented by a set-top box, which provides a connection between the TV receiver and the antenna. A regressive channel that is necessary for using interactive applications is also created directly by the television receiver, or the set-top box, through the Internet or a telephone line. It is also possible to receive a digital television signal on a computer through a special card designed to receive a DVB-T signal.

For further information, please contact:
Martin Zabka
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.