1st Mar 2006 09:43
Cesky Telecom A.S.01 March 2006 EUROTEL AND CESKY TELECOM ARE JOINING FORCES TO CREATE THE TELECOMMUNICATIONS COMPANY OF THE FUTURE PRAGUE, Czech Republic - March 1, 2006 New integrated telecommunications operator Telefonica O2 Czech Republic, a.s. tobe formed. Today the Board of Directors and the Supervisory Board of CESKYTelecom, a.s. have approved an intention to integrate Eurotel Praha, spol. sr.o., and CESKY Telecom, a.s., into a new telecommunications player, TelefonicaO2 Czech Republic, a.s. designed to benefit from the know-how and expertise ofEurotel, CESKY Telecom, Telefonica, and O2. The integrated company will provideboth immediate and long-term benefits to its customers. The Board of Directorsof CESKY Telecom will ask the General Meeting, planned for April 2006, toapprove the integration* and to adopt the company's new name Telefonica O2 CzechRepublic, a.s. The integrated organization is expected to become effective inmid-2006 after all required preparatory and legal steps have been completed. "I am excited to be part of the process of Eurotel and CESKY Telecom joiningforces to create the telecommunications company of the future. Like itspredecessors, this company will remain committed to delivering distinctive,innovative products and services by staying on the cutting edge of technologyand customer service. Together we will build the world's leading integratedtelecommunications company!" - Jaime Smith, CEO of CESKY Telecom Both individual customers and the Czech Information Society as a whole willbenefit from innovative, integrated telecommunications services. Telefonica O2Czech Republic, a.s. will develop a distinctive value proposition for the benefit ofall its customers. Converged mobile-fixed products and services and integratedproduct packages will be among the first novelties available to individuals,families and small businesses, while corporations will be provided withintegrated business solutions. Customers will also have the chance to purchaseall these products and content services at a single point of sale, to obtainassistance from a single point of customer care, and to have the option ofreceiving a single bill. We will accomplish this by building on the uniquestrengths of each of the combined entities: namely, by leveraging Eurotel'sproduct innovation, flexibility, and customer focus; CESKY Telecom's long-termcustomer relations and a high-quality fixed network; and Telefonica's and O2'sglobal expertise in fixed and mobile telecommunications. The new brand underwhich 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 frombeing part of the Telefonica Group. Telefonica O2 Czech Republic, a.s. will alsocontribute to the advancement of the Information Society in the Czech Republicby 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 andbenefits to our customers. This is especially important in the Czech market,where consumers appreciate progressive technologies and innovations. It hasalways been a matter of pride at Eurotel to bring the latest telecommunicationsdevelopments 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 Czechs are at the forefront of fixed-mobile convergence. The Czech telecommunications market is one of the most advanced in Europe,characterized by a high level of fixed-mobile substitution and by consumers whoare quick to adopt new technologies. Recent technology developments will allowus 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 aswell, with several other operators already pursuing it, and it is the aspirationof Telefonica O2 Czech Republic, a.s. to lead this new group of integratedoperators. Telefonica O2 Czech Republic, a.s. will be led by a motivated, experiencedmanagement team. The new integrated entity will be led by the current CEO ofCESKY Telecom, Mr. Jaime Smith, who will supervise an organization consisting ofintegrated Business segment and Consumer segment, merged Operations divisionincluding 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 Slovacek, will be a single Division, including integrated telecommunication networks and IT infrastructure and services; • The Finance Division will be led by Mr. Juraj Sedivy; • The HR and Support Services Unit led by Mr. Martin Bek; • The Wholesale Unit led by Mr. Pavel Jirousek • The Product Development Unit led by Mr. Stanislav Kura. • The Regulatory Unit led by Mr. David Sita; • 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 Kubista. Telefonica O2 Czech Republic, a.s.'s new leaders have the superior experienceand qualifications necessary to build the new integrated organization and tolead it toward future growth. Indeed, not only they, but all of the newcompany's current and future employees will discover many exciting opportunitiesfor personal and professional development under this new flagship. After a short transition period customers will start benefiting from the change. Following the announcement, management will initiate the legal proceduresnecessary to create the newly integrated organization. After the General Meetingof CESKY Telecom approves the integration*, the compnies will file a jointapplication for the registration of the integration into the Commercial Registryand wait for a court decision upon which the integration will become effectiveeffective. During this period customers of both Eurotel and CESKY Telecom willnot experience any interruptions in the products, services, and dedication theyhave received so far. After the effective date of the integration, currentlyexpected in mid-2006, Telefonica O2 Czech Republic, a.s. will graduallyimplement the new organizational structure, area by area, and begin deliveringall the new customer benefits made possible by its distinctive new product andservice offering. Martin Zabka Pavel Kaidl Spokesperson Spokesperson CESKY Telecom, a.s. Eurotel Praha, spol. s r.o. \* The integration will have a legal form of transfer of Eurotel's assets andliabilities to CESKY Telecom This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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