First quarter 2010: On the way to an integrated operator

• Almost 5.5 million customers
• Total revenues exceeding CZK 7.2 billion
• ARPU amounts to CZK 415

Prague, 12 May 2010 - In 2009, T-Mobile Czech Republic fundamentally extended its scope of business and became an integrated operator. At the end of the year, fixed-telephony services were supplemented by the company's first ICT product. Due to the extension of the portfolio of services, the operator has changed the reporting of its results. Beginning with the first quarter of 2010, T-Mobile Czech Republic will also report integrated data including the results of all its divisions.

The growing number of customers and the financial results show that T-Mobile is on the right track and that its transformation from a mobile to an integrated operator is progressing as envisaged. The company has been effectively implementing a strategy which helped it to generate satisfactory results in the first quarter of the year despite many challenging factors: impacts of the ongoing recession, particularly in the business segment, increasingly fierce competition and increased regulation.

Customer base stays stable
At the end of March 2010, T-Mobile registered nearly 5.5 million mobile customers. On a year-on-year basis, the number of mobile customers increased by 0.7%. The majority of the new customers are contract customers.

As compared to the previous year, the number of contract customers using T-Mobile's mobile tariff plans increased by 6.1% to 2.7 million. At the moment, the share of contract customers of the total customer base is 49.6%. The key factor contributing to the increased popularity of tariff plans was the introduction of the 2v1 ("2in1") plan combining fixed internet access and mobile voice services, the GRAND unlimited voice plans and a new service intended for business customers - the unlimited Profi plans.

The impact of the recession was still noticeable in the first quarter of 2010, particularly in the business and prepaid segments. Despite this fact, T-Mobile managed to win or retain a number of important business clients, e.g. MAFRA, Mediatel, Incheba Praha, Kapsch, IBM Česká republika, UNIQUA Pojišťovna and ČEPRO.

In the fixed-telephony segment, T-Mobile offers primarily ADSL access, which is used by more than 50,000 customers, and fixed-voice services offered especially to companies as part of the business tariff T-Mobile ProfiNet solution. The operator's fixed-voice services are used by approximately 300 companies. In March the modular ProfiNet solution was extended with another ICT service - Equipment Supply and Administration.

Mobile only customers	Q1/09	Q1/10	% y/y
Customers ('000)	5,411	5,449	0.7
- Contract	2,544	2,700	6.1
- Prepaid	2,867	2,748	-4.2
Net adds	-11	-7	n.a.
- Contract	45	48	6.7
- Prepaid	-55	-56	-1.8
Average monthly churn (%)	1.5	1.3	-0.2 p.p.

Financial results - integrated
In the first quarter of 2010, T-Mobile reported total net revenues of CZK 7.2 billion, which represents a 5% decrease compared to the same period last year. EBITDA (earnings before interest, taxes, depreciation and amortization) kept almost on a stable level of CZK 3.5 billion. The ARPU Blended (average monthly spending on telecommunications services) reached CZK 415. The decrease in financial indicators was caused by the above-mentioned economic crisis and impacts of EU regulation measures as well as by aggressive price competition accompanied by high saturation of the Czech market.

Integrated figures	Q1/09	Q1/10	% y/y
Total revenues (CZK million)	7,594	7,216	-5.0
Adj. EBITDA (CZK million)	3,518	3,489	-0.8
Mobile ARPU (CZK)	452	415	-8.2
- Contract	754	672	-10.9
- Prepaid	188	167	-11.2
Non-Voice services % of mobile ARPU	23	23	0.0 p.p.

Services
T-Mobile is continuing to implement its strategy focused on technology and product innovation as well as provision of the highest-quality services.

The integrated character of the company was reflected in the launch of new tariff plans: in January, T-Mobile introduced a converged offer, the 2v1 ("2in1") plan, which attracts thousands of customers every month. The unlimited Grand and Profi plans have also become very popular. Young customers particularly appreciate the extra 300,000 free songs included in the BAV SE tariff plan.

In the first quarter of 2010, T-Mobile's customers could also exclusively download a new digital album by Kryštof, one of the most popular bands in the Czech Republic. 

In January, T-Mobile put its 3G network into commercial operation in Prague. The roll-out of 3G network will continue and by summer, inhabitants of another two big cities will benefit from the coverage. Furthermore, T-Mobile continues to modernize its 2G network.

T-Mobile also introduced new mobile marketing projects: a new campaign guaranteeing the success of mobile advertising and successful testing of a new type of advertising message.

For more information about other new services introduced in the first quarter of 2010, please go to www.en.t-press.cz/tiskove_zpravy/.

T-Mobile Czech Republic, a member of the international telecommunications group Deutsche Telekom, has almost 6.2 million customers, the number-one operator in the Czech market. T-Mobile is an integrated operator: in addition to telecommunications services, it offers comprehensive ICT solutions not only for companies, but also for other organizations and individuals. It provides outstanding services in the high-speed network, which was proved repeatedly by benchmark testing performed by umlaut (former P3) with Best-in-Test seal.

T-Mobile Czech Republic places emphasis on taking a responsible approach to the environment and society. It adheres to fair business practices, helps beneficial applications and services to see the light of day, supports non-profit organizations, small businesses and individuals, and lends a helping hand whenever crisis situations arise. The company’s employees serve as volunteers in many places across the entire Czech Republic.

More information about the company is available at www.t-mobile.cz, www.t-press.cz (the portal for journalists) and www.t-mobile.cz/pomahame (information on the company’s CSR activities).

Contact details of the press unit: press@t-press.cz.