ČESKÝ TELECOM PROVIDES NONSTOP CALLING AND CUTS LONG DISTANCE AND MOBILE CALLS

5.4.2006

All customers who order a new Telefon Nonstop tariff can now call nonstop, that is, 24 hours a day, 7 days a week. The company introduced this tariff, along with other new voice service offers, today. In addition to this new Nonstop tariff Czech telecom is also making the rates for long-distance calls uniform with local calls for all its tariffs, for instance, customers can save up to 53% on calls. Again for all tariffs calls to mobile networks will be 28% cheaper. Also, the conditions of existing tariffs have been modified and, at the same time, billing for dial-up Internet access has been simplified.

"We are pleased that we can now offer our customers practically unlimited calling. The Telefon Volno and Telefon Volno Plus tariffs that have enabled subscribers to call for free during off-peak hours were instant hits immediately after they were launched over a year ago. The people who subscribe to these tariffs now call freely and far more often," stated Simon Burckhardt, Executive Director for Sales and Marketing, Residential Segment, adding, "Calling for a flat fee that covers every hour of the day is simply a logical continuation of the current trend. In accordance with this we have also modified the existing calling rates, including the monthly fees, and we have improved a wide range of value-added services."

In April 2006, ČESKÝ TELECOM reduced the rates of calls to mobile networks (owing to the introduction of off-peak hours with favourable prices) and has made the rates for local and long-distance calls uniform. For several days, all its customers have been calling for the same – lower – price when calling within the borders of one town as when making a call from one end of the republic to the other. Also they can order unlimited calling in fixed networks for a flat fee with the Telefon Nonstop tariff.

The overall restructuring of existing tariffs, including the fees for monthly usage of telephone lines, made it possible for ČESKÝ TELECOM to make extreme reductions to calling rates and launch unlimited calls for a flat fee. These will be modified over the course of May 2006. Customers will notice the most changes in the rates of the Telefon Mini tariff. It will now be possible to use this tariff for a broadband Internet connection as well, and carrier selection and pre-selection services will also be accessible.

As of May, it will also be possible to install a new telephone line for less than one fifth of the original price. With a 12-month commitment, the customer pays only CZK 499 without VAT (CZK 539.81 with VAT) in comparison with the original CZK 3 333 without VAT (CZK 3 976 with VAT). It is now also advantageous to “move” with a fixed line. The customer pays only CZK 249 without VAT (CZK 296.30 with VAT) to have their number transferred.

In addition to modifying tariffs, the operator is also simplifying billing for dial-up Internet. According to company statistics, two thirds of customers connect to the Internet in this way for less than 10 minutes. The operator has decided to accommodate the needs of the majority. Instead of the previous method of differentiating between rates for the first ten minutes of connectivity and rates for the minutes that follow, rates are now uniform and lower than the weighted average of the original rates. Therefore, dial-up Internet is cheaper from the moment a user connects.

Also in the case of public payphones, rates for local and long-distance calls will be uniform. After inserting ten koruna, the customer will have the opportunity to make an uninterrupted call to any fixed line in the Czech Republic for a full 10 minutes. The new price tariffs, along with all new products, can be ordered through the Internet (www.telecom.cz), TELEPOINT and TELEPOINT PARTNER branded sales outlets, or by calling the Telephone Services Centre on 800 15 15 15.

Appendices:

  1. Tariffs for households
  2. O2 Internet Expres tariffs

*Unlimited number of free calls to fixed networks of up to 30 minutes; after the customer hangs up they can dial the same number again in order to make another free call. The number of calls is not limited in any way.

Martin Zabka
Spokesperson

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.


 

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