The year of 2013 can justly be considered a year of mobile internet growth and the further market expansion of smartphones. However, O2 Czech Republic also succeeded in strengthening its position in other key areas.

Overview of operating results

The total number of O2 customers increased by 132,000 to 5.1 million in the period from January to December. The number of pay-as-you-go customers decreased slightly year-on-year, but this decrease was compensated for by the frequent transitions to one of the new "FREE" plans, offering unlimited calls and text messaging. The segment of contract services thus grew by 158,000 new customers.

Some 70 percent of the residential customer base has already taken up one of the FREE plans. The success of these plans is also documented by operating data: the total call duration is 66 minutes longer for an average FREE plan user, marking an increase of 33 percent.

In 2013 more than 40 MVNOs were launched to provide their services on the Czech market. O2 cooperates with three of them to acquire new additional customers. According to estimates, Bleskmobil, Tesco Mobile and Mobil od ČEZ have already reached from 60 to 70 percent market share.

The introduction of unlimited plans and marketing support have combined to bring about a year-on-year increase in smartphone sales. Smartphone penetration within the O2 network has reached 35 percent. Revenues from mobile data services, excluding text messaging and

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