Statement re opening of administrative proceedings

Notice of administrative proceedings opening

March 29, 2011

On 29 March 2011, Telefónica O2 Czech Republic, a.s. has been officially informed that the Office for the Protection of Competition has opened against it the administrative proceedings for alleged breach of Article 11(1) of the Act on the Protection of Competition and Article 102 of the Treaty on the Functioning of the European Union consisting in alleged abuse of dominant position in the form of margin squeeze.

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About Telefónica O2 Czech Republic 

Telefónica O2 Czech Republic is a major integrated operator in the Czech Republic. It is now operating more than six million lines, both fixed and mobile, making it one of the world's leading providers of fully converged services. The organization offers the most comprehensive portfolio of voice and data services in this country. It is paying special attention to the exploitation of the growth potential, particularly in the data and Internet sector. Telefónica O2 Czech Republic operates the largest fixed and mobile network including a 3rd generation network, CDMA (for data), UMTS and EDGE, enabling voice, data and video transmission. Telefónica O2 Czech Republic is also a notable provider of ICT services.

Telefónica Europe is a business division of Telefónica comprising mobile, fixed and DSL operations in the UK, Ireland, Germany, the Czech Republic and Slovakia - all of which use 'O2' as their consumer brand. Telefónica Europe also has 50% ownership of the UK and Irish Tesco Mobile and German Tchibo Mobilfunk joint venture businesses. Telefónica Europe is headquartered in Slough, UK, and has some 54 million mobile and fixed customers.