Orange Polska : 50-2016 Orange Polska agreed on the terms of an agreement with Telefonia Dialog, a wholly-owned subsidiary of Netia S.A., on commercial access to the 'last mile' FTTH network owned by Telefonia Dialog.

Current report 50/2016
Orange Polska S.A., Warsaw, Poland
26 July 2016

Pursuant to Art. 17, clause 1 of the Regulation (eu) no 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC, Management Board of Orange Polska informs about agreed terms of an agreement.

Orange Polska agreed on the terms of an agreement with Telefonia Dialog, a wholly-owned subsidiary of Netia S.A., on commercial access to the 'last mile' FTTH network owned by Telefonia Dialog.

On 26 July 2016 Orange Polska S.A. ('OPL') and Telefonia Dialog Sp. z o.o. ('Dialog') agreed on the terms of an agreement on co-operation in the following areas:
• access to fibre local loop (LLU);
• access to dark fibre;
• access to available installation space in Dialog's cabinets.
The above agreement will allow OPL to gain access in FTTH technology to over 114,000 households in big to medium cities and towns in the Łódź, Lower Silesian and Lubuskie Regions of Poland.

The terms of this cooperation are similar to those of OPL's commercial wholesale offer for this type of services. OPL will use its own backhaul and will only pay monthly costs of LLU services provided by Dialog, depending on the number of customer acquisitions.

The agreement supports the implementation of Orange Polska's strategic plan of rapid expansion of FTTH coverage to Polish households in 2016-2018 within the declared capex limits.

OPL will benefit mainly in faster access to the access network in the FTTH technology as well as further vindication of its business objectives with the efficient use of the existing FTTH infrastructure in the relevant locations. This action is in line with the aims of the Cost Directive of the European Commission by avoiding duplication of the existing facilities.

The first step towards the execution of the agreement will be a commercial pilot project to deliver OPL's own services on Dialog's network in the City of Łódź. This will allow OPL to offer its FTTH broadband service ('Orange Fibre') to additional several dozen thousand households.

The formal endorsement of the Agreement documents, including all representations and warranties of the Parties, is expected by the end of this week.