Press releases archive - Eurotel

"I am excited to be part of the process of Eurotel and ČeskýTelecom joining forces to create the telecommunications company of the future. Like its predecessors, this company will remain committed to delivering distinctive, innovative products and services by staying on the cutting edge of technology and customer service. Together we will build the world's leading integrated telecommunications company!"

- Jaime Smith, CEO ofČeský Telecom

Both individual customers and the Czech Information Society as a whole will benefit from innovative, integrated telecommunications services.
Telefónica O2 Czech
Republic, a.s. will develop a distinctive value proposition for the benefit of all its customers. Converged mobile-fixed products and services and integrated product packages will be among the first novelties available to individuals, families and small businesses, while corporations will be provided with integrated business solutions. Customers will also have the chance to purchase all these products and content services at a single point of sale, to obtain assistance from a single point of customer care, and to have the option of receiving a single bill. We will accomplish this by building on the unique strengths of each of the combined entities: namely, by leveraging Eurotel's product innovation, flexibility, and customer focus;Český Telecom's long-term customer relations and a high-quality fixed network;and Telefónica's and O2's global expertise in fixed and mobile telecommunications.The new brand under which the integrated company will operate, to be announced in the near future, will build on the successes O2 has achieved in its markets and will benefit from being part of the Telefónica Group. Telefónica O2 Czech Republic, a.s. will also contribute to the advancement of the Information Society in the Czech Republic by making broadband Internet access available to a wide range of customers, including households, schools, libraries, government agencies, and more.

"By combining mobile and fixed services we will offer enormous opportunities and benefits to our customers. This is especially important in the Czech market, where consumers appreciate progressive technologies and innovations. It has always been a matter of pride at Eurotel to bring the latest telecommunications developments to market. This integration opens the door for new ideas that we, together, can convert into new products and services."

-Salvador Anglada, CEO of Eurotel

The Czech telecommunications market is one of the most advanced in Europe, characterized by a high level of fixed-mobile substitution and by consumers who are quick to adopt new technologies. Recent technology developments will allow us to combine mobile and fixed voice, Internet, and TV into innovative products. Our own market research indicates significant demand for one-stop shopping, single billing and customer service, and integrated voice and data services. This fixed-mobile convergence trend is apparent in other European countries as well, with several other operators already pursuing it, and it is the aspiration of Telefónica O2 Czech Republic, a.s. to lead this new group of integrated operators.

Telefónica O2 Czech Republic, a.s. will be led by a motivated, experienced management team.
The new integrated entity will be led by the current CEO ofČeský Telecom, Mr.Jaime Smith, who will supervise an organization consisting of integrated Business segment and Consumer segment, merged Operations division including IT and networks, and consolidated general support functions:

• The Consumer Division, led by Mr. Salvador Anglada, will be responsible for serving our residential customers;

• The Business Division, led by Mr. Fernando Astiaso, will be responsible for serving our Corporate and SME customers;

• Operations, led by Mr. Petr Slováček, will be a single Division, including integrated telecommunication networks and IT infrastructure and services;

• The Finance Division will be led by Mr. Juraj Šedivý;

• The HR and Support Services Unit led by Mr. Martin Bek;

• The Wholesale Unit led by Mr. PavelJiroušek

• The ProductDevelopmentUnit led by Mr. StanislavKůra.

• The Regulatory Unit led by Mr. David Šita;

• The Business Development Unit led by Mr. Ramon Ros;

• The Legal Unit led by Mr. Jakub Chytil;

• The Transformation & Convergence Unit led by Mr. Antonio Botas;

• The Public Affairs Unit led by Mr. Jaroslav Kubišta.

Telefónica O2 Czech Republic, a.s.'s new leaders have the superior experience and qualifications necessary to build the new integrated organization and to lead it toward future growth. Indeed, not only they, but all of the new company's current and future employees will discover many exciting opportunities for personal and professional development under this new flagship.

Following the announcement, management willinitiate the legal procedures necessary to create the newly integrated organization. After the General Meeting of Český Telecom approves the integration*, the companies will file a joint application for the registration of the integration into the Commercial Registry and wait for a court decision upon which the integration will become effective effective. During this period customers of both Eurotel and Český Telecom will not experience any interruptions in the products, services, and dedication they have received so far. After the effective date of the integration, currently expected in mid-2006, Telefónica O2 Czech Republic, a.s. will gradually implement the new organizational structure, area by area, and begin delivering all the new customer benefits made possible by its distinctive new product and service offering.

*The integration will have a legal form of transfer of Eurotel’s assets and liabilities to Český Telecom